1) if the offeree accepts the offerors terms while complaining about them, it is called a
grumbling acceptance.
2) watered shares are shares issued for consideration that has been overvalued
impermissibly by the board of directors.
3) the threat to institute a criminal prosecution against another party in order to force
that party into a contract is almost always duress.
4) loans made by partners to a partnership are partnership capital.
5) if an agent has authorized his subagent to make a certain contract and this
authorization is within the authority granted to the agent by his principal, the principal
is bound to the subagents contract.
6) in recent times, the mirror-image rule is applied such that only a material difference
between offer and acceptance creates a rejection of the offer.
7) a security interest is not legally enforceable against a debtor, if it is not attached to
one or more particular items of the debtors property.
8) section 2 of the sherman act outlaws monopolies because monopolists have the
power to fix prices unilaterally.
9) securities exchange act rule 10b-5 liability attaches to anyone who trades in
securities for personal profit using confidential information misappropriated in a breach
of fiduciary duty owed to the source of the information.
10) exculpatory clauses that try to relieve a principal of liability for an agents
misrepresentations usually insulate the principal from tort liability and prevent the third
party from rescinding the contract.
11) if the seller demands cash, the seller must give the buyer a reasonable amount of
time to obtain it.
12) the directors and officers of a corporation need to be its shareholders.
13) unlike the inventions protected by patent law, copyrightable works need not be
novel.
14) owners of commercial property enjoy greater privacy expectations in their property
for fourth amendment purposes than do owners of residential property.
15) termination of agency by the principal is known as renunciation and termination by
agent is known as revocation.
16) in an assignment/delegation, which party remains secondarily liable on the
obligation that has been delegated?
a.assignor/delegator
b.assignee/delegatee
c.third party
d.obligee
17) the negotiation of an instrument made in breach of duty is subject to _____ before
the instrument has been negotiated to a transferee who can qualify as a holder in due
course
a.rescission
b.remission
c.restitution
d.reformation
18) an individual will not be granted a discharge, if such discharge has been granted to
the individual within the previous:
a.five years.
b.six years.
c.seven years.
d.eight years.
19) goods are being sold by anne in seattle and shipped by abc railroad to brian in
portland, oregon. in this situation, the term “fob seattle” means that the risk of loss
passes from the seller to the buyer when:
a.the goods are identified in seattle.
b.the goods are placed at the seller’s warehouse loading dock in seattle.
c.the goods are delivered to abc railroad in seattle.
d.the goods leave the city limits of seattle.
20) which of the following distinguishes a copyright from a patent?
a.copyrightable works need not be novel.
b.copyright law gives exclusive rights to the creator of a work.
c.copyright laws prevent others from using the work originally created by someone.
d.there are proper copyright laws in the u.s.
21) you are walking down a street and you pass by a beer brewery. a barrel rolls out of a
third story window and injures you. you have no idea how this accident occurred, and
you will have difficulty proving that the brewery was at fault. what legal theory will
serve you best if you sue the brewery?
a.negligence per se
b.res ipsa loquitur
c.strict liability
d.battery
22) maria and joe entered into a contract for the sale of marias car. delivery of the car
and payment were to be made on march 1. joe clarified that he needed the car so that he
can commute between san francisco and oakland to his new job that is starting on
march 2. maria broke the contract and failed to deliver the car on march 1. joe needed a
car to commute so he rented a car at $30 per day for 20 days, which was the reasonable
amount of time it took him to locate and buy another car. joe sued maria for his losses,
including the $600 car rental. the $600 makes up the _____ damages.
a.liquidated
b.consequential
c.punitive
d.specific performance
23) a contract is _____ when all of the parties have fully performed their contractual
duties.
a.void
b.executed
c.contingent
d.ineffective
24) a fully integrated contract under the parol evidence rule is one that:
a.is intended by the parties to include both goods and services.
b.is intended by the parties to include several agreements.
c.is intended by the parties to be a preliminary statement of their agreement.
d.is intended by the parties to be the complete, exclusive statement of their agreement.
25) which of the following is generally true regarding the tort of conversion?
a.it involves both real property (land and interests in land) and personal property.
b.as its name implies, conversion always involves the transformation of the plaintiffs
property into something else-e.g., its destruction, alteration, etc.
c.a defendant who buys or sells stolen property may be liable for conversion even if she
does so in good faith and without knowledge of the theft.
d.conversion involves all interferences with the plaintiffs property rights-whether
serious or nonserious.
26) if a buyer rejects tender of the goods, title to those goods:
a.will automatically be revested in the seller.
b.will stay with him until he makes the payment.
c.will remain undecided until the parties reach an agreement.
d.belongs to neither of the parties.
27) a void contract is:
a.a contract that one or both parties can cancel at their convenience.
b.a contract, even though the courts will not enforce it.
c.an agreement that creates no legal obligations.
d.created by operation of law rather than by the agreement of the parties.
28) section 8 of the clayton act, as modified by the antitrust amendments act of 1990,
prohibits the same individuals from controlling competing corporations when those
individuals are:
a.shareholders.
b.directors or senior officers.
c.mid-level officers.
d.managerial employees.
29) the central question in most federal preemption cases is:
a.the intent of the congress.
b.whether the federal law is supreme.
c.whether due process was afforded.
d.the application of the doctrine of judicial review.
30) james has entered into a contract to sell his house to mikhael. james knows that the
house has a bad termite infestation that significantly reduces the value of the house.
however, the topic of termites never came up and james did not volunteer any
information about the termites. mikhael is not aware of the termite problem. under the
law of most states, has legal misrepresentation occurred here?
a.no, because james made no statement that was false.
b.no, because a seller does not have a duty to reveal all faults.
c.yes, because a seller must always inform a buyer about defects that are not obvious.
d.yes, because james is concealing the termite infestation from mikhael.
31) if the seller discovers that the buyer is insolvent, he has:
a.no right to stop the delivery of any goods that he has shipped to the buyer.
b.the right to stop the delivery of any goods that he has shipped to the buyer.
c.the right to ask the buyer to pay double compensation.
d.no right to do anything against the buyer.