For violation of the Sherman Act, the maximum fine that may be imposed on a natural
person is:
a. $1 million.
b. $500,000.
c. $0.
d. $100 million.
An insurer who wrongfully refuses to defend the insured is liable for:
a. breach of contract.
b. insurance fraud.
c. the tort of wrongful interference with contractual relations.
d. the tort of malicious prosecution.
Thelma purchased a used truck from Hall that had been manufactured by International
Harvester. To work on the truck engine, Thelma had to have the cab of the truck raised.
When it was so raised, the cab fell unexpectedly and fatally injured Thelma. Suit was
brought for her wrongful death against Hall and International Harvester. The suit was
based on theories of negligence, strict tort liability, and breach of warranty. The defense
was raised that there was no liability because the sale to Thelma had been made “as is”
and the truck was a used truck. Were these defenses valid?
Companies with 100 years of consistent dividends:
a. use positive laws as a guide for ethical decisions.
b. have a goal of profitability no matter what the cost.
c. have a strong commitment to values.
d. all of the above.
Examples of illusory promises include:
a. cancellation provisions.
b. apparent promises.
c. conditional obligations.
d. real obligations.
A court is a tribunal established by:
a. the parties to a lawsuit.
b. the government.
c. the parties to a contract.
d. none of the above.
A limited liability company€s operating agreement:
a. is equivalent to the bylaws of a corporation.
b. must be in writing.
c. does not cover member compensation..
d. all of the above.
In which case will performance on the exact date specified in the contract most likely
be deemed essential?
a. a sale of goods that fluctuate rapidly in value.
b. a sale of goods that remain stable in value.
c. a sale of real estate.
d. a sale of goods where no harm results from a delay in performance.
Certification of a check at the request of a holder:
a. releases all prior secondary parties.
b. releases the drawer but not prior indorsers.
c. releases prior indorsers, but not the drawer.
d. does not release all prior secondary parties.
When a carrier accepts goods for land shipment, it ordinarily issues to the shipper a(n):
a. bill of lading.
b. intent to transport memorandum.
c. warehouse receipt.
d. trust receipt.
A nonconforming use:
a. that is discontinued for a period of less than thirty (30) days may be resumed.
b. has a right to continue for only five (5) years.
c. has a constitutionally-protected right to continue.
d. that continues for more than one (1) year cannot be lost by abandonment.
The major purpose of field warehousing is to:
a. create warehouse receipts that the owner can pledge as security for loans.
b. create additional space in the firm’s own warehouse.
c. allow warehousers an opportunity to service common carriers.
d. transfer title to buyers without requiring them to pick up merchandise at the plant’s
location.
Which of the following is true about judicial review of agency action?
a. Judges tend to substitute their own judgment for that of the agency.
b. Courts will reverse agency decisions merely because the court would have made a
different decision based on the same facts.
c. Courts will reverse a decision if they disagree with the legal interpretation.
d. All of the above
State intestacy statutes commonly provide for distribution in the following order:
a. spouse, parents, lineals, collateral heirs.
b. spouse, lineals, collateral heirs, parents.
c. spouse, lineals, parents, collateral heirs.
d. spouse, lineals, collateral heirs, parents,.
Regarding partnership property:
a. only a managing partner has the right to use firm property for firm business.
b. where a three-person partnership owns three autos, each partner owns one of the
autos individually.
c. on the death of a partner, that partner’s share of partnership property vests in his or
her next of kin.
d. a creditor of a partner cannot proceed against any specific items of partnership
property.
The types of civil cases that can be brought in federal district courts include:
a. cases in which any state in the United States is one of the parties .
b. cases between citizens of different states that involve damages of $75,000 or more.
c. cases brought by the citizen of one state against the state government of the same
state.
d. all of the above.
Normally in a franchise operation:
a. both the franchiser and the franchisee will be liable to third persons for contracts that
are breached by the franchisee.
b. only the franchisor will be liable to third persons for contracts that are breached by
the franchisee.
c. only the franchisee will be liable to third persons for contracts that are breached by
the franchisee.
d. neither the franchisor nor the franchisee will be liable to third persons for contracts
that are breached by the franchisee.
What is not a correct statement concerning promoters?
a. Promoters are generally active before the corporation is formed.
b. Two (2) or more promoters are required to form a corporation.
c. Promoters are fiduciaries with respect to the corporation and its shareholders.
d. Promoters are liable for any torts that they commit while promoting the corporation.
An easement may be created only by deed.
Administrative agencies are, in effect, a fourth branch of the government.
A beneficiary of personal property by will may be called a devisee.
A custodian who holds money for the benefit of a minor under the Uniform Gifts to
Minors Act may choose to use the money to send the minor to summer camp.
The Racketeer Influenced and Corrupt Organizations (RICO) Act was designed
primarily to prevent individuals involved in organized crime from investing money
obtained through racketeering in legitimate businesses.
When a party waives compliance with one provision of a contract, the other party may
thereafter ignore other provisions of that contract.
Pay raises based on seniority generally are considered lawful.
Pursuant to the Credit Repair Organization Act of 1996, credit repair organizations must
be €non-profit.€
Decisions made by agencies are more likely to be reversed than to be accepted by the
court on appeal.
A person who is harmed by a conspiracy that violates the Sherman Antitrust Act may
sue the wrongdoers for four times the actual damages.