Presidents claim the power to issue executive orders on the basis of Article II, Section
1, constitutional power to “take care that the laws be faithfully executed.”
Overall, the percentage of unionized workers in the U.S. has declined since the
post-World War II period.
It is usually more difficult to prove disparate-impact discrimination in employment
under Title VII than disparate-treatment.
Banks are required by the UCC to certify the check if a customer has sufficient funds in
the account.
Japanese law prohibits agreements relating to liquidated damages.
Under current law, corporations cannot be held criminally accountable for strict-liability
offenses.
Before a debtor files for one specific type of bankruptcy relief, the clerk of courts must
give the debtor written notice of the other types of relief available.
The Foreign Corrupt Practices Act prohibits foreign officials from entering the U.S. to
conduct illegal business.
The primary purpose of criminal law is to compensate victims.
The statute of frauds is a law passed by the federal legislature.
The Restatement (Second) of the Law of Contracts is not actually the law itself.
Undue influence is a situation in which one person has taken advantage of his or her
dominant position in a relationship to unduly persuade the other person.
The defendant in a state action is entitled to transfer a case to the federal court if there is
concurrent jurisdiction.
Early neutral case evaluation provides a binding ruling by a neutral.
Under the UCC, the secured party’s interest in the proceeds lasts 30 days after the
debtor receives the proceeds.
Sometimes the depositary is the same bank as the payor bank.
Corporations have implied powers.
A power of attorney must be for a specific purpose, not a general authority.
A voluntary association between two or more people who co-own a business for profit
is called a corporation.
If a statute is drafted in a manner that is ambiguous with respect to the type of agency
rule making that is required, a court will interpret the rule as requiring formal rule
making.
A type of takeover in which the aggressor corporation offers the target shareholders a
price above their stock’s current market value is a leverage buyout.
A buyer who has accepted goods may later revoke the acceptance if the buyer can show
that the defects substantially impair the value of the goods.
Filing a claim under Title VII is procedurally similar to filing a civil lawsuit.
The parol evidence rule prevents parties from introducing oral evidence of an
agreement involving early release in a criminal case because such agreements must be
in writing.
Under the 1933 act, any security offered or sold to a permanent resident of the single
state where the issuer of the security resides and does business is exempt from the
registration process.
An offeree is the party making an offer and the offeror is the party receiving the offer.
If a car stopped at a red traffic light is struck in the rear by another vehicle, it is
negligence per se.
Courts interpret contracts using an objective standard.
The use of deadly force is rarely justified as a defense in a battery case.
The National Labor Relations Board is the administrative agency that interprets and
enforces the National Labor Relations Act.
Under our criminal laws that exist today, white-collar crime is not punishable by
imprisonment.
The United Nations Convention on Contracts for the International Sale of Goods was
offered as a treaty that countries could sign, indicating their willingness to allow the
treaty to govern international business-to-business sales contracts.
Peremptory challenges in jury selection may not be racially based.
In order to properly provide notice of the termination of an agency relationship, actual
notice of agency termination must be given to third parties who have had business
interactions with the agent.
An S corporation is a corporation that is taxed like a partnership.
Hair Stylist Woes. Maryann went to see her hair stylist, Candy. Maryann, who had
black, curly hair, requested straight, blond hair. Candy told her that she could make that
change, but there would be significant upkeep involved. Candy made the change, but
Maryann did not do the upkeep required. She also falsely claimed that Candy did not do
what Maryann asked her to do, that Candy lied to her, and that Candy was
professionally incompetent. Maryann made the statements to friends of hers. She also
wrote an editorial in her college newspaper to the effect that Candy’s shop should be
avoided at all costs because Candy was incompetent. In fact, Candy was a good hair
stylist and enjoyed a good reputation up until the time that Maryann started her
criticism. Candy threatened to sue Maryann for defamation, but Maryann told Candy
that Candy could not prevail because Candy could not prove loss of income. Candy had
to admit that while her reputation had been damaged somewhat, the damage was
primarily among the college population. Her income kept increasing from other
segments of the community, and she had suffered no net loss. As far as the editorial is
concerned, which of the following is true in regards to Maryann’s statement that Candy
cannot recover because she cannot show loss of income?
A. Maryann is correct.
B. Maryann is correct only if she can establish that she did not intend to cause
economic loss to Candy.
C. Maryann is incorrect because her actions would be considered liable per se.
D. Maryann is incorrect because general damages would be presumed.
E. Maryann is incorrect because Candy has proven special damages.
Which of the following refers to a failure to provide pertinent information about a
projected contract?
A. Concealment
B. Nondisclosure
C. Negligence
D. Concealment, nondisclosure, and negligence
E. Concealment and nondisclosure, but not negligence
According to UCC Section 3-312, certified or cashier’s check are fully recoverable if
the check is ______________________.
A. lost
B. stolen
C. lost or stolen
D. destroyed or stolen
E. lost, stolen, or destroyed
Which of the following is false regarding assignment of claims in Russia?
A. The assignment of rights, or “assignment of claims,” in Russia is highly regulated by
the Russian common law.
B. Russian law does not address the assignment of a contract in the same manner as the
United States.
C. Economic or monetary rights of the assignor may be transferred to another person.
D. Alimony rights may not be assigned to another person.
E. Assignments must be in writing.
_______________ is the requirement of the Federal Trade Commission that advertisers
have a reasonable basis for claims made in advertisements.
A. Ad substantiation
B. Ad verification
C. Proof of ad veracity
D. Illustration of ad veracity
E. Acknowledgement of ad veracity
Repossession. Tina sold used vehicles. She sold a used pick-up truck to Joan and a used
convertible to Barry. She properly obtained a security interest in both vehicles. Both
Joan and Barry defaulted on payments owed to Tina for the vehicles. Tina told her
assistant, Samantha that the only legal remedy was repossession; that she was going
after the vehicles; and that Samantha should call law enforcement if she did not show
up at the office by 10 a.m. for the next few mornings. Tina decided that she would
repossess Joan’s pick-up at Joan’s house. Therefore, Tina slipped into the driveway at
midnight one night and started the engine. Joan immediately ran out and confronted
Tina. Tina shoved Joan away and drove off in the pick-up truck. Tina was able to
repossess Barry’s convertible in a public parking lot with no altercation with him.
Which of the following is true regarding whether repossession was the only remedy
available to Tina?
A. Tina was correct regardless of whether a vehicle or another type of good was
involved.
B. Tina was correct, but only because a vehicle was involved.
C. Tina was incorrect, because only when a vehicle is involved, a party must disregard
the collateral and proceed to judgment.
D. Tina was incorrect because regardless of whether a vehicle or another type of good
was involved, Tina only had the right to ignore the collateral and proceed to judgment.
E. Tina was incorrect because regardless of whether a vehicle or another type of good
was involved, Tina had the right to either take possession of the collateral or ignore
rights in the collateral and proceed to judgment.
Divorce Fallout. Dr. Fred, following a messy divorce, has encountered significant
financial difficulties. Dr. Fred has a friend named Slick Slim who tells Dr. Fred that he
has been making lots of money by selling people a wristband that allegedly places
pressure on a nerve that signals hunger resulting in a lack of appetite. Slick Slim tells
Dr. Fred that, although the device does not really work, people who want to lose weight
and look good in their bathing suits will do anything and that it sells like hotcakes. Slick
Slim tells Dr. Fred that he will pay Dr. Fred five dollars for every band that Dr. Fred can
sell to his patients. Dr. Fred proceeds to mail letters to patients suggesting the use of the
band for weight loss. He also uses UPS to mail samples of the band to some patients
along with letters encouraging purchase of the bands. Dr. Fred then proceeds to bill
Medicare for office consultations he has with patients when they come in to purchase
the bands. The scheme is wildly successful. Dr. Fred is able to entirely satisfy his
alimony obligations within just a few months. Unfortunately, as patients begin to see
that they are not having any weight loss, he has been receiving numerous complaints,
and a friend of his told him that he could even be facing some criminal prosecution.
Which of the following offenses, if any, did Dr. Fred commit when he used UPS to send
correspondence and samples of the bands to patients?
A. False pretenses
B. False entry
C. Defalcation
D. Mail fraud
E. None of these. He is possibly guilty of some state law offense, but mail fraud
requires the use of the U.S. mails.
Which of the following may a buyer purchase in the ordinary course of business and
obtain the goods free of any security interest so long as the buyer is unaware of any
security interest in the good?
A. Chattel paper.
B. An instrument.
C. An authorization.
D. Chattel paper, instruments, and authorizations.
E. Chattel paper and instruments, but not authorizations.
Which of the following serves to combat bribery of foreign officials?
A. The Foreign Official Bribery Act
B. The International Bribery Prohibition Act
C. The Fair Business Act
D. The International Fair Business Practices Act
E. The Foreign Corrupt Practices Act
What doctrine arose from cases in England in which parties, who had contracted for
rooms along a parade route for the king’s coronation, received their money back when
the coronation was canceled because the king became ill?
A. Frustration of purpose
B. Commercial impracticability
C. Alteration of the contract
D. Anticipatory repudiation
E. Anticipatory renunciation
Which of the following damages may a seller receive who resells goods to another
buyer when the original buyer is in breach?
A. The difference between the resale price and the contract price, plus incidental
damages and minus expenses saved.
B. The difference between the resale price and the contract price only.
C. The difference between the resale price and the contract price minus expenses
without any allowance for incidental damages.
D. The difference between the resale price and the contract price, plus incidental
damages, with no deduction for expenses saved.
E. Nominal damages only.
Which of the following means that the seller or lessor has delivered the goods to a
carrier or bailee, but the carrier or bailee has not yet turned them over to the buyer?
A. In process
B. In transit
C. In carrier
D. Carrier ready
E. Transport ready
New Furniture. Penny purchased $3,000 worth of furniture from Bob’s furniture shop.
Through an arrangement with Bob, Penny financed the purchase through a financing
company called Let Us Help You. Twenty-nine days after the goods were delivered to
her, Penny had a disagreement with Let Us Help You regarding the amount of interest
she would be required to pay. She notified Bob on that day that she was rejecting the
goods. Bob claimed that she did not properly reject the furniture and also that she acted
in bad faith. Penny says that she properly rejected and denies that she acted in bad faith.
She also says that, in any event, she cannot be charged with both wrongful rejection and
also bad faith because of double jeopardy. Which of the following is true regarding the
claim of Bob that Penny failed to properly reject the goods?
A. Bob is incorrect because under the UCC Penny had 30 days in which to reject the
goods.
B. Bob is incorrect only if Penny can establish that Let Us Help You miscalculated the
amount of interest she owed.
C. Bob is incorrect only if Penny can show that the goods were overpriced.
D. Bob is correct only if Bob can show that the goods were priced at reasonable market
value.
E. Bob is correct.
Business ethics:
A. Results in a set of correct decisions made by a company
B. Refers to a standard of business conduct
C. Can improve business decisions
D. Refers to a standard of business conduct and can improve business decisions
E. Results in a set of correct decisions made by a company and can improve business
decisions
Which of the following states that in the case of multiple assignments of the same right,
the first assignee to give notice of assignment to the obligor is the party with rights to
the contract?
A. The first-assignment-in-time rule
B. The last-assignment-in-time rule
C. The English rule
D. The French rule
E. The American rule
________________ prohibits the use of manipulative and deceptive devices to bypass
SEC rules.
A. Section 15(a)
B. Section 10(b)
C. Section 5
D. Rule 2
E. Rule 2(5)
Which of the following is true if no means of communicating an acceptance is specified
in an offer?
A. The acceptance must be in writing.
B. The acceptance must be made verbally either by telephone or in person.
C. No valid contract may be entered into because the offer must specify a means by
which to accept.
D. Acceptance may be made by any reasonable means.
E. Acceptance must be made orally or in writing within twenty-four hours.
State consumer protection laws prohibiting used-car fraud are known as ______ laws.
A. orange
B. prune
C. lemon
D. onion
E. garlic
If the subject matter of an offer is destroyed, the offer _____.
A. immediately terminates
B. is extended for seven days
C. is extended for fourteen days
D. is extended for twenty-one days
E. is extended for thirty days
A defendant uses a(n) ______ when her or his answer admits that the facts contained in
the complaint are accurate but also includes additional facts that justify the defendant’s
actions and provide a legally sound reason to deny relief to the plaintiff.
A. secondary answer
B. pleading defense
C. affirmative defense
D. formal answer
E. personam answer
If a contract does not clearly specify that the satisfaction is to be personal, the ______
standard applies.
A. express
B. subjective
C. objective
D. absolute
E. unbiased
Real defenses apply to _____, and personal defenses do not apply to _____.
A. all parties; holders in due course
B. holders; holders in due course
C. holders; holders
D. all parties; holders
E. all parties; endorsers
Which of the following is(are) a factor(s) considered by courts in determining whether
an act committed by an employee occurred within the course and scope of
employment?
A. Whether the employer authorized the employee’s act.
B. Whether the employer provided the tools by which the act occurred.
C. Whether the employer knew that the act would involve the commission of a serious
crime.
D. Whether the employer authorized the employee’s act, whether the employer provided
the tools by which the act occurred, and also whether the employer knew that the act
would involve the commission of a serious crime.
E. Whether the employer authorized the employee’s act and whether the employer
provided the tools by which the act occurred, but not whether the employer knew that
the act would involve the commission of a serious crime.
Which of the following is true regarding past consideration?
A. It is not consideration that will support a binding contract.
B. It is consideration that will support a binding contract.
C. It is consideration that will support a binding contract only in the employment
context.
D. It is consideration that will support a binding contract only in the context of the
provision of services.
E. It is consideration that will support a binding contract only in the restaurant industry.
Under which of the following does a principal give an agent broad authority to sign
legal documents on behalf of the principal rather than authority for only a specific
purpose?
A. A general power of attorney
B. A specific power of attorney
C. A localized power of attorney
D. A broad power of attorney
E. A recognized power or attorney
In order to prevent a defective corporation from escaping corporate responsibility a
court may hold that the entity is a(n) ______.
A. corporation in fact
B. unrealized corporation
C. corporation by estoppel
D. corporation by reservation
E. partnership liability
Which of the following was the ruling by a majority of the court in Stoneridge Inv.
Partners, LLC v. Scientific-Atlanta Inc., the case in the text in which the U.S. Supreme
Court addressed the issue of the liability of bankers, lawyers, and other third parties
who did not directly mislead investors but worked with corporations that did?
A. That bankers, lawyers, and other third parties who did not directly mislead investors
but worked with corporations that did can be held liable to the same extent as the
primary wrongdoers.
B. That bankers, lawyers, and other third parties who did not directly mislead investors
but worked with corporations that did could be held liable to shareholders only if the
primary wrongdoers were insolvent and also that the secondary wrongdoers could be
punished by criminal prosecution and enforcement actions by the SEC.
C. That bankers, lawyers, and other third parties who did not directly mislead investors
but worked with corporations that did could be held liable to shareholders only if the
primary wrongdoers were insolvent and also that the secondary wrongdoers could not
be punished by criminal prosecution and enforcement actions by the SEC.
D. That bankers, lawyers, and other third parties who did not directly mislead investors
but worked with corporations that did cannot be sued by shareholders and also cannot
be held criminally liable or subject to enforcement actions by the SEC.
E. That bankers, lawyers, and other third parties who did not directly mislead investors
but worked with corporations that did cannot be sued by shareholders but can be subject
to criminal prosecutions and enforcement actions by the SEC.
Lake House. Harry has two houses, a house on the lake and a house in town. Rebecca
wants to buy the house on the lake. Harry and Rebecca orally agree that Rebecca will
buy the house on the lake for $300,000. Harry hurriedly writes out a contract providing
that he would sell “his house” to Rebecca for $300,000. Harry signs the top of the
document. Rebecca does not sign at all. No merger clause is included in the contract.
Harry backs out of the contract, and Rebecca sues him. He tells the judge that the
statute of frauds is not satisfied because he did not sign the document at the end and
also because Rebecca did not sign at all. He also tells the judge that, at any rate, the
agreement referred to the house in town, not the house on the lake; and that under the
parol evidence rule, he had the right to identify the correct house. Which of the
following is true regarding Harry’s assertion that the statute of frauds is not satisfied
because Rebecca did not sign the document?
A. Harry is incorrect because he is the one being sued, and he signed the document.
B. Harry is incorrect because the statute of frauds did not require her signature so long
as the type of subject matter involved was referenced.
C. Harry is incorrect because the statute of frauds did not require her signature so long
as the selling price was referenced.
D. Harry is incorrect because the statute of frauds did not require Rebecca’s signature so
long as both the selling price and the type of subject matter involved was referenced.
E. Harry is correct.
Which of the following is not an element that must be shown for trespass to realty?
A. Defendant entered the land of another without permission.
B. Defendant caused an object to be placed on the land of another without the owner’s
permission.
C. Defendant removed the owner’s personal property from the owner’s possession and
control.
D. Defendant stayed on the property after the owner tells him to leave.
E. Defendant refused to remove something he placed on the property after the owner
asks him to remove it.
Tutoring Concerns. Wally and Sally want to go into business together and plan on
offering a tutoring service to high school and college students. Wally proposes that they
share control of the business and split profits equally and not bother with a written
agreement. Sally, however, is concerned about being able to pay their debts since they
will have to rent tutoring space and purchase computers and supplies. She is also
concerned about parents and students who may sue if the students’ test scores do not
improve. She tells Wally that she just bought a new boat and car, and that she does not
want her assets to be in jeopardy. She tells Wally that they should form a corporation to
shield their personal assets. Wally, however, says their personal assets are not in danger
with his proposal because they are a business and that, furthermore, forming a
corporation would likely result in double taxation. Is Wally correct that forming a
corporation would likely result in to double taxation?
A. Yes, because the corporation would be required to pay tax on its profits, and the
shareholders would also be required to pay taxes on dividends.
B. No, Wally is incorrect because all businesses are taxed in the same manner.
C. No, Wally is incorrect but only because the law involving taxation of corporations
does not apply until there are at least 10 shareholders.
D. No, Wally is incorrect but only because the law involving taxation of corporations
does not apply until there are at least 75 shareholders.
E. Yes, Wally is correct but only because his proposal does not involve a writing and the
filing of paperwork with the secretary of their state.
Which of the following is an absolute defense to defamation?
A. The statement is true.
B. The statement was said on private property.
C. The defendant did not know the plaintiff.
D. The plaintiff was not present when the statement was made.
E. None of these
Under which of the following does each concerned interest group and the agency send
representatives to bargaining sessions led by a mediator with any agreement forwarded
to the agency?
A. Mediation
B. Regulation
C. Reg-neg
D. Med-neg
E. Arb-med
Which of the following involves disputes between private individuals or groups?
A. Public law
B. Private law
C. Governmental law
D. Public law and private law, but not governmental law
E. Public law, private law, and governmental law
What must a party prove in order to obtain money damages based on a fraudulent
misrepresentation?
Explain the system of checks and balances and how it works, and set forth your opinion
as to why or why not this system supports a democratic form of government.
Define a joint venture and set forth two differences under the law between a joint
venture and a partnership.
What is the duty of accounting an agent owes to a principal, and how would an agent
satisfy that duty? Specify what actions an agent must take in regards to accounts of a
principal.
What must a union and employer do once a union has been elected, and what duties
does an employer have regarding increasing benefits at that time?
Discuss what is needed in order to establish damages in defamation actions. Address
whether special proof is needed and, if so, under what circumstances.
Set forth the six requirements for an instrument to be negotiable.
Brice just finished a residence in internal medicine and wants to go into practice with
Horace and Joyce. Brice tells you that while he needs to practice with other physicians
for call coverage and for other reasons, he does not want to be personally liable should
the other physicians be found guilty of malpractice. You discuss various incorporation
options with him, but he tells you that he would like to form a partnership. What
business forms would you recommend to him and why?
List three advantages associated with perfection by possession.
Against whom may a donee beneficiary generally enforce rights and why?
Ellen, who runs a successful nail salon, ran across a very interesting pamphlet on
customer relations. The pamphlet was fifty pages long and cost $70.00. Ellen thought
the price was outrageous. Accordingly, she bought one copy and photocopied the pages
that she thought were pertinent and gave them to her employees. She copied forty of the
pages out of the pamphlet for each of twenty employees. A disgruntled employee
informed the publisher of the pamphlet what Ellen had done and she was charged with
copyright infringement. Ellen defended on the basis of the fair-use doctrine. List the
four factors a court would consider in determining whether a violation occurred and
discuss whether or not you think Ellen would prevail and why.
Set forth the ways in which an offer can terminate.
Cindy sold her old used automobile to Bruce for $1,000. Cindy told Bruce to come and
take the car and that the transfer would be complete. Is Cindy correct, and why or why
not?
List the ways by which a party’s contractual obligations can be terminated.
Christen who just turned eighteen is out with several friends. They decide to see a
movie, but it is sold out. Christen hid in the back of the theatre and yelled “Fire” as
loudly as she could. Everyone ran out of the theatre, and a number got in their vehicles
and left. Christen and her friends thought that seeing the movie was now possible.
Unfortunately, a theatre employee saw Christen yelling, called the police, and she was
arrested. Christen told the police officers that she was only exercising her free speech
rights. She also told the police that the theatre employee lied and that she personally
saw him stealing popcorn. The theatre employee told Christen that he was going to sue
for defamation, and she told him that she would win based on her right to free speech.
Discuss whether or not Christen is right on both counts and why.