Which of the following is considered “goods” within the meaning of Article 2?
a. An unborn calf.
b. A field of corn still in the field.
c. Timber which has been removed by the seller.
d. All of these are correct.
Which of the following must the plaintiff prove in an action for negligence?
a. Injury.
b. Res ipsa loquitur.
c. A reasonable person.
d. All of the above.
Neal is young, likable, optimistic and generous son of a prominent public official. He
has a master’s degree in business and is the business partner of Ken and Bill in an oil
drilling and exploration business. Neal also serves as a director on the board of the
Bonanza Savings and Loan Association. While serving on the Bonanza Board, Neal
votes to approve major loans to Ken and Bill without disclosing to the other directors
that he is a business partner of Ken and Bill. Neal also personally arranges for a
$900,000 line of credit from Bonanza for an oil drilling venture in which he is a partner
with Ken. The drilling venture is unsuccessful and Ken and Bill both default on their
loans to Bonanza, which then causes the S & L to become insolvent. Federal banking
officials seize Bonanza and liquidate its assets to pay creditors and depositors. Because
Bonanza is federally insured, tax money is also used to pay off depositors whose
deposits are insured under federal programs. Bonanza shareholders lose their
investment money. Was Neal’s conduct as a director of Bonanza ethical? Analyze his
conduct in light of the following ethical theories:
a. Intuitionism and the “Television Test.”
b. Milton Friedman’s ideas on corporate governance.
c. Deontological theories.
d. Rule utilitarianism.
e. Ethical relativism.
The ethical theory of intuitionism proposes that:
a. the power of an individual to assess the rightness or wrongness of decisions is as
basic to human beings as the instinct for survival.
b. market outcomes should be the basis for distributing goods.
c. the “veil of ignorance” should be developed to consider the needs and rights of all
society’s members.
d. society should stress equality of opportunity, not results.
Which of the following is necessary to be considered a good faith purchaser?
a. The purchaser must act honestly.
b. The purchaser must give value for the item.
c. The purchaser must take the goods without notice or knowledge of any defect in the
title of the transferor.
d. All of these are correct.
The concept of conflict of interest as it relates to the law of agency includes which of
the following?
a. An agent may take a position that conflicts with the principal only if the principal,
with full knowledge of all the facts, consents.
b. An agent may not represent her principal in a transaction in which the agent has a
personal interest.
c. An agent may not act on behalf of adverse parties to a transaction without both
principals’ approval of the dual agency.
d. All of the above.
A merger of Parker Corporation with Jones Corporation that results in only Parker
Corporation’s surviving normally would require approval of:
a. Parker’s and Jones’ boards.
b. Parker’s shareholders.
c. Jones’ shareholders.
d. All of the above.
The Equal Employment Opportunity Commission is empowered to:
a. file legal actions in its own name but not to intervene in actions filed by third parties.
b. attempt to resolve alleged violations through informal means prior to bringing suit.
c. investigate all charges of discrimination.
d. Both (b) and (c).
Which of the following will terminate a power given as security?
a. The death of the creator.
b. Revocation of the power.
c. The incapacity of the creator.
d. None of the above.
Which one of the following is NOT one of the torts included within invasion of
privacy?
a. Nuisance.
b. Intrusion.
c. Appropriation.
d. False light.
Matt hires Joe’s real estate agency to sell his property, telling Joe he has lost too much
money playing the stock market to afford to keep it up. Then Matt wins the three
million-dollar lottery! Joe reads this in the newspaper and that afternoon makes a
contract with Sharon to sell the property. Is the contract valid?
a. No, the agency terminated because of the change in conditions.
b. No, the agent has no right to sell without consent.
c. Yes, Matt would have to notify Joe if he wanted to stop the sale.
d. Yes, Joe had apparent authority to sell.
A manifest system:
a. is the best available technology requirement as described in the Clean Air Act.
b. is the national pollution policy as set forth in NEPA.
c. is the registration system required by TSCA.
d. uses a form on which a generator certifies that the toxicity of waste has been reduced
to the greatest degree that is economically practicable.
How much force may an individual use to protect her property?
a. As much as is necessary.
b. Deadly force.
c. Reasonable force, but not deadly force.
d. All of these are correct.
The court in Cooperative Centrale Raiffeisen-Boerenleenbank B.A. v. Bailey found:
a. whether an instrument is negotiable is a question of fact.
b. whether an instrument is negotiable is to be determined without reference to the
intent of the parties.
c. the wording of the note was unclear and therefore it did not fall within the UCC
Article 3 requirements of negotiability.
d. the question of whether the promissory note was negotiable had to be determined by
questioning the parties to the transaction as to their intent.
Distinguish between:
a. express and implied contracts
b. executed and executory contracts
c. bilateral and unilateral contracts.
Under the CISG, the seller may require the buyer to:
a. pay the price.
b. take delivery.
c. perform the contractual obligations.
d. All of the above.
Henry was burning leaves in his backyard. One of the burning leaves was lifted by the
wind into Bob’s yard next door. It landed on the lawn mower which exploded, setting
fire to the wooden lawn furniture. Henry’s best argument against liability to Bob would
be:
a. the leaf was not a substantial factor in causing the damage.
b. the gasoline in the lawn mower is a superseding cause of the damage.
c. it was not foreseeable that the lawn mower would explode.
d. the damage was not caused by the leaf but by the gasoline.
Copyright infringement may be unintentional.
The federal government leaves corporate stock regulation to the states since
corporations are state-created entities.
The general rule for the standard of care used in tort law is: a person is under a duty to
all others at all times to exercise reasonable care for the safety of other persons and
their property.
A composition would bind all of debtor’s creditors to the settlement.
What are the ways in which an offer may be terminated?
The parties, by agreement, may divide the risk and shift the allocation of risk.
An accommodation party is a direct beneficiary of the value received from lending her
credit on an instrument.