Matrix, Inc. is the general mortgage contractor of a large commercial building project.
They subcontracted with Acme Flooring, Inc. to have flooring installed throughout the
building. When Matrix failed to make payments to Acme as agreed, Acme stopped
working. Commercial Bank, the lender for the project, orally promised Acme that
Commercial would pay whatever Matrix failed to pay Acme if Acme would resume
work. Acme finished the flooring but was still not paid. Which of the following is true
under the Statute of Frauds?
A. Commercial Bank is not obliged to pay Acme as the promise must be written and
signed.
B. Commercial Bank’s promise enhanced its mortgage interest, hence it to should pay
Acme.
C. Commercial Bank is not obliged to pay to Acme since Matrix was not a party to its
promise.
D. Commercial Bank’s promise did not involve the actual lending of money.
Viola checked her coat at the Landmark Theatre cloakroom while attending a play.
When she returned for her coat it could not be found. What must be proven concerning
negligence?
A. Viola must prove that Landmark was negligent.
B. Landmark must prove that Viola was negligent.
C. Viola must prove that she was not negligent.
D. Landmark must prove that it was not negligent.
The Identity Theft Penalty Enhancement Act added a new crime called _____ to the
original statute.
A. aggravated identity theft
B. fraudulent misrepresentation
C. uttering
D. identity violation
If Texas attempted to make a trade agreement with Mexico, opposed to the Constitution
that establishes tariffs and importing conditions for goods made in Mexico, the U.S.
Constitutional objection to Texas’ actions would be based upon:
A. the principle of preemption.
B. the doctrine of devolution.
C. the principle of separation.
D. the principle of supremacy.
The illegal practice of charging more than the amount of interest allowed by law is
called:
A. libel.
B. inpari delicto.
C. slander.
D. usury.
Med-arb, a form of ADR, combines the best aspects of:
A. reg-neg and ENE.
B. negotiation and arbitration.
C. mediation and arbitration.
D. ENE and a private civil trial.
_____ is the power of the court to hear a case based on Internet-related transactions.
A. Science jurisdiction
B. General jurisdiction
C. Cyber jurisdiction
D. Subject matter jurisdiction
Desmond is sued by Harry when Desmond, obeying the instructions of his employer
Bigger Company, sells Harry a computer system that is not capable of being expanded.
Harry asserts fraud but Desmond argues that Harry did not request an expandable
system. What responsibility if any, does Bigger Company owe Desmond?
A. Bigger has no responsibilities since Desmond has a defense to fraud.
B. Desmond as an agent is entitled to indemnification.
C. Only to cooperate while Desmond defends against the lawsuit.
D. Their responsibility is to support Harry’s lawsuit against Desmond.
If a bank pays a check in cash to the payee, and the check is returned to the drawer with
the next bank statement, the bank’s settlement is said to be:
A. provisional.
B. final.
C. in due course.
D. honored.
While in combat, a soldier, in front of four witnesses, made an oral will in which he
distributed personal property. Such a will was:
A. a nuncupative will, which is not valid in most states.
B. a nuncupative will, which is valid in all states.
C. avalid holographic will.
D. intestate.
In some jurisdictions, minors who become _____ means that they cannot void a
contract, despite their apparent minority.
A. ratified
B. emancipated
C. abandoned
D. disaffirmed
In a ____, the buyer purchases enough shares in a corporation to gain voting control of
that corporation.
A. asset acquisition
B. stock acquisition
C. consolidation
D. joint venture
If Titanic Co. makes a tender offer to acquire more than _____ of a target, Titanic Co.
must file a statement with the SEC.
A. 5%
B. 10%
C. 15%
D. 20%
Myra, the assistant accountant at Multibusiness, Inc., decides to transfer $5,000 from a
Multibusiness account to her personal account in order to pay some personal medical
expenses. Myra plans to repay the money as soon as she receives reimbursement from
her health insurance. Myra has committed:
A. larceny.
B. forgery.
C. embezzlement.
D. burglary.
The words “without recourse” on an indorsement means the indorser is:
A. liable personally but not other parties.
B. not liable for any problems associated with the instrument.
C. not liable if the instrument is dishonored.
D. liable for only up to fifty per cent of the loss.
Jose wants to question in person, Ellen, a witness, about her observation of an auto
accident in advance of a trial concerning the accident. Joe should:
A. send Ellen interrogatories.
B. take Ellen’s deposition.
C. ask Ellen to produce tangible evidence.
D. issue summons for Ellen to appear in court in advance of the trial.
Thomas is named “office manager” by Bigger Co., but his precise duties are not
described. What type of authority would authorize Thomas to purchase office supplies?
A. Express authority
B. Implied authority
C. Apparent authority
D. Operation of law authority
Henrietta offers a $500 reward for the return of Fifi, her lost dog. Silas finds and returns
the dog. This is an example of a(n):
A. bilateral contract.
B. unilateral contract.
C. quasi-contract.
D. unenforceable contract.
An attorney also has a _____ to protect the client and to make certain that the client
receives advice and representation that is free of conflicting interests.
A. duty of due care
B. duty of loyalty
C. duty of proximity
D. duty to act in good faith
A(n) _____ will provide temporary insurance coverage until the policy is formally
accepted.
A. premium
B. adhesion contract
C. warranty
D. binder
An unfair labor practice filed with the NLRB first goes to:
A. arbitration.
B. a hearing.
C. federaldistrict court.
D. mediation.
On August 15, 2011, Jason indorsed a check dated January 15, 2011, and payable by
him to ALS Check Cashing Service. ALS is:
A. a holder in due course even though the check is antedated.
B. not a holder in due course as it has notice that the instrument is overdue.
C. not a holder in due course only if ALS contacted the drawer who agreed to honor the
check.
D. a holder in due course only if ALS contacted the drawee who agreed to honor the
check.
USERA is administered by:
A. the EEOC.
B. no agency, since it allows private parties to sue.
C. the Office of Veterans’ Employment and Training Service.
D. the Department of Labor.
Rocco breaks both his hands in a motorcycle accident. When he wants to make a
contract with Iago, Rocco is physically unable to sign the contract due to his broken
hands. What is best for Rocco and Iago to do?
A. Rocco may select someone to sign on his behalf.
B. Have an elected public official sign for Rocco.
C. Have Iago sign for himself and Rocco.
D. Rocco should wait until he himself is able to sign.
Which of the following countries is a signatory of the Kyoto Protocol?
A. India
B. United States
C. United Kingdom
D. China
Which of the following is true of settlement week?
A. The court settles those cases that cannot be resolved through arbitration.
B. Attorneys are required to be present for mediation sessions.
C. All submitted cases are resolved by trial by summary jury.
D. The submitted cases are subjected to private civil trials.
In determining the applicability of international pacts, the courts will first look at:
A. the international understanding of the agreement.
B. the Red Cross Commentaries.
C. the literal language of the agreement.
D. the history of the pact.
Frisco and his wife Esperanza were killed simultaneously in an auto accident. Frisco
had life insurance naming Esperanza as the beneficiary. Frisco’s will left all his property
to a charity, and Esperanza’s will left all of her property to her mother, Verdad. Who is
entitled to the insurance proceeds under the Uniform Simultaneous Death Act?
A. Verdad.
B. No one since Esperanza is deceased.
C. This is determined by intestate succession.
D. The charity.
Wolfgang was transported unconscious from the scene of a motorcycle accident to a
local hospital where he was admitted for emergency treatment. Does the hospital need
to be concerned about obtaining written consent to treatment from someone before
starting treatment on Wolfgang?
A. Yes, informed consent requires a signed document.
B. No, it can get consent after the treatment.
C. Yes, without consent from the next of kin there is liability.
D. No, general consent is implied and this is an emergency.
Uncle Rodrick was deeply in debt when he died. His niece Evangeline became the
administrator of his estate. She orally promised Rodrick’s creditors that she would
personally pay his debts if they would not publicize the fact that Rodrick died in debt.
When Evangeline was unable to pay the debts, the creditors sued her. Will the creditors
be legally able to collect from Evangeline?
A. Yes, since there was a bargained-for exchange.
B. No, since Evangeline was not Rodrick’s child.
C. Yes, since Evangeline made a guaranty of payment.
D. No, since her promise was not written and signed.
The three issues that Robert Heilbroner thought would challenge the existence of the
human race on earth are ____, the challenge of uncontrolled population growth and the
destruction of the environment.
A. terrorism.
B. nuclear war.
C. incurable communicable diseases.
D. death of the sun.
Mark is mentally incompetent and delights in signing documents. Henry persuades
Mark to sign numerous promissory notes which he negotiates. Which of the following
is true of this situation? Must Mark pay these notes if they have been held by holders in
due course?
A. Mark must pay these notes since duress is not involved.
B. Mark does not have to pay these notes since he has a real defense.
C. Mark must pay these notes since there is a fraud in the inducement.
D. Mark must not pay these notes since no one could anticipate this happening.
Which of the following contracts should be in writing to be enforceable in courts under
the Statute of Frauds?
A. Contracts that can be completed within one year.
B. Contracts to pay the debt of another.
C. Contracts involving sale of all types of goods.
D. Contracts in consideration to employment.
Renee applied for credit to open her own beauty salon. The bank denies her the credit
on learning that she has recently been divorced, and receives public assistance income.
Under which of the following acts will the bank be held guilty for violation of laws?
A. The Fair Debt Collections Act.
B. The Equal Credit Opportunity Act.
C. The Truth-in-Lending Act.
D. The Fair Credit Reporting Act.
