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What are the rights of the parties under the UCC to provide for remedies in addition to
those provided by the UCC?
A. Parties to a commercial sales agreement may provide for remedies in addition to
those provided by the UCC.
B. Parties to a commercial sales agreement may not provide for remedies in addition to
those provided by the UCC.
C. Parties to a commercial sales agreement may provide for remedies in addition to
those provided by the UCC only if both sides are represented by an attorney.
D. Parties to a commercial sales agreement may provide for remedies in addition to
those provided by the UCC only if both parties are merchants.
E. Parties to a commercial sales agreement may provide for remedies in addition to
those provided by the UCC only in transactions involving over $10,000 in value.
Which of the following is a check accepted by the bank on which it is drawn?
A. Cashier's check
B. Traveler's check
C. Certified check
D. Check certificate
E. Approved draft
When must a disaffirmance of a contract based on minority occur?
A. Before or within a reasonable time of the minor's reaching the age of majority.
B. Within 30 days of the minor's reaching the age of majority.
C. Within 60 days of the minor's reaching the age of majority.
D. Within 90 days of the minor's reaching the age of majority.
E. Within one year of the minor's reaching the age of majority.
Which of the following was the ruling of the court on appeal in the case of In re Leah
Beth Woskob, debtor; Alex Woskob; Helen Woskob; the Estate of Victor Woskob v. Leah
Beth Woskob, the case in the text involving a dispute regarding whether a partnership
was dissolved prior to the death of one of the partners making the attempt of the other
partner to buy out the deceased partner's interest untimely?
A. That the exclusion of a partner from the partnership was grounds for automatic
dissolution and that, on that basis, the partnership had been dissolved prior to the death
of the partner at issue.
B. That the insolvency of one of the partners resulted in automatic dissolution of the
partnership prior to the death of the partner at issue.
C. That the partnership was dissolved prior to the death of the partner at issue based
upon lawsuits filed by third-party creditors.
D. That by agreement of the partners, the partnership had been dissolved prior to the
death.
E. That the partnership had not been dissolved at the time of the death of the partner at
issue.
"Business Law Rocks." Business law teacher Penny ordered 50 T-shirts for her classes
that said "Business Law Rocks" on the front. She wanted to give them out on the last
day of class and contracted with Frank, who owned a T-shirt business, for the shirts to
arrive by that day. The shirts arrived on Thursday, just before the last day of classes on
Friday. Unfortunately, the shirts said "Business Law Yuck" on the front. Frank told
Penny that he would remedy and fix the problem and that he had the right to do so. She
told him, however, that she had to have the shirts the next day because the students
would be gone after that. Penny had also ordered some pamphlets on employment law
to be used the next fall semester. The seller had agreed to provide the pamphlets 30
days before spring semester ended. The seller, however, erred and sent pamphlets on
environmental law which arrived 28 days before spring semester ended. The seller
attempted to remedy the problem by sending the correct pamphlets on employment law,
but they did not arrive until 27 days before spring semester ended. None of the parties
had any prior dealings.
In claiming that he had the right to fix the problem, Frank was alluding to which of the
following under the UCC?
A. The right to cure
B. The right to review
C. The right to perform
D. The right to claim
E. The right to reclaim
Assuming there are no vacancies, how many U.S. Supreme Court justices are there?
A. 9
B. 5
C. 15
D. 8
E. 7
George offers to sell Penelope a ring that George found in his yard. He and Penelope
look at the ring and decide that they are not sure what it is, probably just a shiny stone.
Penelope pays George $10 for the ring. The ring turns out to be a diamond worth much
more than $10. George wants the ring back, and Penelope refuses. What is the most
likely result?
A. The ring will be returned to George because of mutual mistake.
B. The ring will be returned to George because of unilateral mistake.
C. The ring will be returned to George because of equity.
D. The ring will remain with Penelope unless George can establish that he was
negligent in not recognizing the ring's true value.
E. The ring will remain with Penelope because the parties contracted on the assumption
that they did not know the value of the ring.
When must a lease generally be in writing?
A. Leases must always be in writing in order to be enforceable.
B. When the lease term exceeds 9 months.
C. When the lease term exceeds 1 year.
D. When the lease term exceeds 18 months.
E. When the lease term exceeds 2 years.
In Sindell v.Abbott Laboratories, which created the market share liability theory, the
judge apportioned liability among the defendant-manufacturers on the basis of the share
of the market they had held at the time that the drug had been produced.
Which of the following was the result in Radford v. Wells Fargo Bank, the case in the
text in which the plaintiff sued claiming that a mortgage loan was a defective product?
A. The court allowed the case to proceed on the basis that a loan is a product.
B. The court ruled that while a loan is a product, the plaintiff was barred from
proceeding because he had not alleged that he was in mortgage foreclosure, a necessary
predicate for a lawsuit alleging defect based on a mortgage loan.
C. The court ruled that while a loan is a product, the plaintiff was barred from
proceeding because he had not alleged usury, a necessary predicate for a lawsuit
alleging defect based on a mortgage loan.
D. The court ruled that while a loan is a product, the plaintiff was barred from
proceeding because he had not alleged that he was in bankruptcy, a necessary predicate
for a lawsuit alleging defect based on a mortgage loan.
E. Recognizing that product liability focuses on tangible items, the court ruled that a
loan is not a product for purposes of product liability law.
Which of the following sets forth the common law rule that the terms of an acceptance
must mirror the terms of an offer?
A. The Matching Rule
B. The Complete Rule
C. The Mirror Image Rule
D. The Exact Rule
E. The Parallel Rule
Which of the following is the designation for property acquired by the debtor after a
security agreement covering the property is made?
A. Post-dated property.
B. After-acquired property.
C. Proceeds.
D. Post-acquired property.
E. Subsequently acquired property.
Which of the following is false regarding termination of agency based on operation of
law?
A. Impossibility of performance terminates the agency relationship.
B. An agency agreement is terminated whenever the agent, unknown to the principal,
acquires an interest against the principal's interest.
C. The agency agreement is terminated if the agent breaches the duty of loyalty he or
she has to the principal.
D. A change in law passed subsequent to the formation of an agency agreement may not
result in termination of the agency agreement.
E. If there is an unusual change in circumstances that leads the agent to believe that the
principal's instructions do not apply, the agency relationship terminates.
The requirement that a witness ______ to the will means that the witness must witness
the signing of the will and then sign as a witness at the end of the document.
A. Approve
B. View
C. Acknowledge
D. Attest
E. Review
Sam enters a limited partnership as a limited partner, contributing $100,000. The
limited partnership consisting of two general and the two limited partners were sued
over debt. Assuming the limited partnership is properly conducted, what is the
maximum for which Sam can be held liable?
A. Sam has unlimited personal liability.
B. $75,000
C. $50,000
D. $25,000
E. $100,000
A[n] ______ lien is a lien that is created solely through statute, regardless of whether
the debtor wishes the lien to be created.
A. Consensual
B. Statutory
C. Judgment
D. Approved
E. Evaluated
"Used Car Problems." Marcy purchased a used car from ABC Motors. Six months later
the police seized the car from Marcy on the basis that it was a stolen vehicle. Marcy
asked for her money back from ABC Motors. The manager there told her that the car
was not stolen, but that even if it were, ABC Motors acted in good faith with no
knowledge of a theft; and that, therefore, Marcy, as a good-faith purchaser, had a good
title. ABC Motors had also sold a used car to Frank who wrote a bad check for the car
and left town, but not before selling the car to Betty. Betty purchased the car with no
knowledge of any problem with the check. ABC Motors asked Betty to return the car,
but she refused. She explained that she had given the car to her son, Billy.
Assuming the car was stolen without any knowledge of ABC Motors, which of the
following is true regarding the manager's statement that Marcy has a good title?
A. The manager is correct.
B. The manager is correct only if Marcy can establish true consumer status meaning
that she had not bought or sold over three cars in the previous six months.
C. The manager is correct only if Marcy can establish true consumer status meaning
that she had not bought or sold over three cars in the previous year.
D. The manager is incorrect because Marcy has voidable title.
E. The manager is incorrect because Marcy has void title.
If a credit card company sends a person an unsolicited card in the mail and the card is
stolen, for how much can the person be held liable to the credit card company?
A. $500
B. $300
C. $250
D. $200
E. 0
"Lakeside Property." Ronnie agreed to act as the agent of Sue in finding a piece of
lakeside property for her at a good price and also in obtaining a loan for her with which
to purchase the property. She agreed to pay him $500 for doing so. To assist Ronnie in
his duties, Sue disclosed to him confidential information about her finances and debts.
Ronnie decided that he needed help and paid Rick $300 to look for property for Sue.
Rick told Ronnie about a great deal on a piece of lakeside property that Bruce had for
sale. In fact, the deal was so good that Ronnie purchased the property for himself. When
Sue found out about the property Ronnie bought for himself, she complained to Ronnie.
He defended himself on the basis that he was not actually working for Sue when he
found out about the deal. At the time, he was playing golf with Bruce. He also told Sue
that he had hired Rick for $300 to assist him and that he could not be held liable
because he had turned the job over to Rick. He asked Sue for reimbursement of the
amount he paid Rick. Sue fired Ronnie threatening to sue him. Ronnie told Sue that he
would counterclaim for the $300 owed to Rick. Only after he was fired, Ronnie
disclosed to a number of parties information regarding Sue's spending habits which he
thought were excessive.
Which of the following is the most likely result if Sue sues Ronnie for revealing
confidential information?
A. Sue will lose because Ronnie was no longer her agent when he revealed the
information.
B. Sue will lose because regardless of whether he was working for her or not, he had no
legal duty to keep any information confidential.
C. Sue will lose unless she can establish that revealing the information caused her to
suffer economic loss.
D. Sue will lose unless she can establish that revealing the information caused her to
seek psychological counseling.
E. Sue will win.
The French Penal Code adopts what is called the _______ which requires that corporate
criminal liability be applied only in cases that pertain to an "express mention in the law
or in a French regulation."
A. Strict liability rule
B. Res ipsa standard
C. Specialty principal
D. High priority rule
E. Protectionist principal
How much must a shareholder who signs a stock subscription pay for no-par shares?
A. The depreciated value
B. The value on the last sale
C. The value as set by the board of directors
D. The value as voted upon by shareholders
E. The fair market value of the shares
Which of the following consists of negotiations between an employer and a group of
employees so as to determine the conditions of employment?
A. Collective bargaining
B. Mediation
C. Arbitration
D. Collusive dealings
E. Mandatory negotiations
Which of the following is a doctrine that permits courts to decline to exercise
jurisdiction where there is a more convenient forum to hear the case?
A. Forum non conveniens
B. Abstention
C. Convenience el forum
D. Jurisdictional convenience
E. Absolute privilege
Good faith in relation to transactions between parties who are not merchants means
____.
A. Honesty in fact
B. Honesty in law
C. Honesty in fact and also reasonable commercial standards of fair dealing
D. Honesty in law and also reasonable commercial standards of fair dealing
E. Honesty in fact and honesty in law
Laws which enable the court to serve a defendant outside the state as long as the
defendant has sufficient minimum contacts within the state and it seems fair to assert
jurisdiction are called ______.
A. Minimum contact statutes
B. Significant contact statutes
C. Long-arm statutes
D. In rem statutes
E. Quasi in rem statutes
Summarize the following ethical principles:
(a). Ethical relativism
(b). Situational ethics
(c). Consequentialism
(d). Deontology
(e). Virtue ethics
(f). Ethics of care
Which of the following was passed to (1) clean up existing hazardous sites and (2)
respond to hazardous material spills?
A. The Resource Conservation and Recovery Act
B. The Comprehensive Environmental Response, Compensation and Liability Act
C. The Federal Hazardous Waste Act
D. The Hazardous Waste Disposal Act
E. The Authorized Disposal Waste Act
___________ damages are damages awarded to punish the defendant and to deter
others from similar conduct.
A. Nominal
B. Compensatory
C. Punitive
D. Retaliatory
E. Revenge
Which of the following was the result in Melissa Kahn v. Volkswagen of America Inc.,
the case in the text in which the plaintiff attempted to hold the manufacturer liable for
problems with a vehicle she leased from a dealership?
A. The court ruled that the plaintiff could recover from the manufacturer based upon the
implied warranty of merchantability.
B. The court ruled that the plaintiff could recover from the manufacturer based upon the
implied warranty of fitness for a particular purpose.
C. The court ruled that the plaintiff could recover from the manufacturer based upon the
theory of express warranty.
D. The court ruled that the plaintiff could recover from the manufacturer based upon the
implied warranty of trade usage.
E. The court ruled that the plaintiff could not recover from the manufacturer.
"Kite Sales." Wendy is president of a business that manufactures kites. The kites of her
company, ABC Kites, are sold to large toy stores. After Wendy learned a great deal
about kites at ABC, she started to make kites at home. She started selling kites to
friends. She also started to make inquiries regarding selling her kites to larger toy stores
in the area, and she began making a few sales to them. Her plan was to start small and
then leave ABC after she had increased sales. She did not work on her side project
while she was on the clock with ABC. Some of the directors learned about her kite sales
and accused her of wrongdoing. Wendy denied any wrongdoing and pointed out that
she did not work on her project while she was on the job with ABC.
In which of the following objectionable activities was Wendy involved, if any, in selling
the kites?
A. She was not involved in any objectionable activities.
B. She prevented corporate opportunity.
C. She prevented profit maximization.
D. She committed private-profit allocation.
E. She committed corporate profit reduction.
Which of the following occurs when a legal contract combines two or more
corporations such that only one of the corporations continues to exist?
A. A merger
B. A consolidation
C. A combination
D. An alteration
E. A reorganization
"Yard Mowing." Paula agreed to mow John's yard once a week for $50 per week
throughout the summer. Paula, however, was having trouble getting her money from
John. On one occasion, he in handwriting gave her in IOU saying "I, John Jones, owe
Paula Smith $50." A couple of weeks later, John did not have the money to pay Paula
what he owed her, and he handwrote the following on a piece of paper and gave it to
her: "I, John Jones, promise to pay Paula Smith or to bearer, the sum of $100 on
Monday, July 22, 2013." Paula quit mowing John's yard; and, disgusted with John,
Paula assigned both documents to Vince. When Vince presented the documents to John,
John refused to pay on the basis that after inspecting the yard, he decided that Paula was
doing a poor job. Vince told him the documents constituted negotiable instruments, but
John pointed out that he had not signed the documents with his signature at the end.
Disregarding the issue of whether Paula properly performed, is the statement "I, John
Jones, promise to pay Paula Smith or to bearer, the sum of $100 on Monday, July 22,
2008," without a signature anywhere else on the document, sufficient to satisfy the
signature requirement of negotiability?
A. Yes, because it contains an unconditional promise to pay; and in the handwritten
promise, the maker wrote his own name.
B. Yes, it is sufficient regardless of whether it is in handwriting or not because it
contains an unconditional promise to pay.
C. No, because it was not signed at the bottom.
D. Yes, but only if John later signed another document confirming that he meant the
handwritten statement to constitute his signature.
E. No, because it was not signed at the bottom or anywhere else on the document.
"Environmental Concerns." Connie, the president of a company that makes paper, has a
new interest in the environment. She recently went to a seminar on environmental
dangers and has decided to take steps to clean things up. She started at home and has
now felt compelled to change things at work. Connie had to face the fact that her
company has been cheating and is not in compliance with applicable environmental
regulations due to dumping in a nearby river. Her company has never been cited
because it employs a very large number of people in the community, including the
mayor's wife and the chief-of-police's brother. On her mission to clean things up,
Connie has decided to go even further than the law requires and install the very latest
environmental protections. When she announced her plan, the chair of the company's
board of directors, Brooke, had a meeting with Connie. Brooke told Connie to analyze
the situation carefully because the cost of the additional equipment would mean no
dividend to shareholders and no raise for employees. Furthermore, Brooke told Connie
that installing all the new equipment would result in higher prices for the company's
paper product and could bankrupt the company because of foreign competition. Brooke
hinted that Connie could be fired if she persisted. Brooke suggested that Connie just be
concerned with a minimal standard of ethics. Connie decides to go forward with her
plan to clean things up under the theory that she wants to treat others in the same
manner that she wants to be treated. Under Connie's theory, if she did not understand
the importance of the environmental improvements, she would want them to be thrust
upon her.
Connie's idea is best referred to as ______.
A. The Golden Rule
B. The Disclosure Principle
C. The Help Peers Test
D. The Sarbanes-Oxley Rule
E. The Greenhouse Rule
Which of the following is property that is initially movable but then becomes attached
to land?
A. Appliances
B. Appurtenances
C. Equipment
D. Easements
E. Fixtures
"Uncooperative Employer." Joan requested a 12-week leave for the birth of her child.
She had 3 weeks of accrued paid sick leave time and 2 weeks of accrued paid vacation
time. Joan's employer, Rose, requested that she take the sick leave time and vacation
time prior to any leave time under the Family and Medical Leave Act. Joan did not wish
to do so, however, and told her employer that she was entitled under the Family and
Medical Leave Act to take leave under the Act first and to save any other time. Another
employee, Frank, requested leave time under the Family and Medical Leave Act in
order to care for a seriously ill parent. He had no other sick leave or vacation time
available and immediately started using leave under the act. Unfortunately, he was
unable to return to work for 15 weeks. At that time, Rose told him that he would have to
be reassigned to a lower paying position because she had been unable to hold his job for
him and had reassigned it to Bob. Frank demanded that Bob be removed and that he be
reinstated to his previous job. To the dismay of Rose, Alice also requested leave
because she planned to take in a foster child. Rose told Alice to forget it because of all
the other employees out on leave, because voluntarily taking in a foster child did not
qualify Alice for leave, and also because she typically worked only 30 hours per week.
Which of the following is true regarding the denial by Rose of Alice's request for leave
under the Act?
A. Rose wrongfully denied the leave.
B. Rose was correct on all counts.
C. Rose properly denied the leave request because Alice typically worked 30 hours per
week which is considered less than full-time employment.
D. Rose properly denied the leave request because taking in a foster child does not
trigger the Act's coverage.
E. Rose properly denied the leave request because of the number of other employees
out on leave.
