1) what are legal rules in prior cases called?
a.statutes
b.precedents
c.first impressions
d.uniform laws
2) a subchapter s corporation is typically treated like a _____ for federal income tax
purposes.
a.for-profit corporation
b.partnership
c.publicly held corporation
d.not-for-profit corporation
3) the first amendment limits governmental power to enact and enforce criminal laws
by prohibiting:
a.warrantless searches.
b.arbitrary discrimination among different classes of people.
c.cruel and unusual punishments.
d.laws that restrict freedom of speech.
4) an instrument that is indorsed with a _____ indorsement remains order paper.
a.special
b.blank
c.restrictive
d.conditional
5) johnny larue sells mens jackets to mens clothing stores, including melonville man.
melonville man orders a selection of mens jackets from larues catalog, asking that larue
select an assortment of goods for the buyer. larue takes advantage of this opportunity to
get rid of the odd-sized jackets and those in pastel colors that are no longer popular.
larue:
a.has stuck to the express terms of the sales contract.
b.has violated the good faith requirement under sales contracts.
c.has followed the usual trade practice.
d.has properly modified the contract.
6) maggie, the tenant under a one-year lease of an apartment, assigned the lease to her
friend, cosmo. which of the following is a legally accurate statement?
a.maggies assignment of the lease is the same thing as the granting of a sublease.
b.if cosmo fails to pay rent during the year covered by the lease, maggie will be liable
for it.
c.the assignment extinguishes any further obligations maggie may have under the lease.
d.maggies assignment is called a tenancy for a period.
7) under the model business corporation act (mbca), a corporation that retains at least
_____ percent of its business activity and either its income or revenue has not disposed
of substantially all its assets.
a.10
b.25
c.50
d.45
8) jim created a valid will in 2003. three years later, he wanted to make some minor
changes to the will. jim wants to modify the provisions of his will without making an
entirely new will. he can amend his will by adding a(n) _____.
a.bequest
b.residuary
c.advance directive
d.codicil
9) an individual or organization seeking judicial review of an agency action must first
demonstrate that:
a.the agency action being challenged is reviewable.
b.the required consent orders have been signed.
c.other administrative remedies have not been used.
d.the individual or organization has no standing to sue.
10) a person who takes an instrument containing a restrictive indorsement, pay to jack
black in trust for mel gibbs,:
a.may not pay the proceeds to the indorsee without the due approval of the indorser.
b.may pay the proceeds to the indorsee paying due regard to whether the indorsee
violates a fiduciary duty to the indorser.
c.may pay the proceeds to the indorsee without regard to whether the indorsee violates a
fiduciary duty to the indorser.
d.may pay the proceeds to the indorser only with the approval and concurrence of the
indorsee.
11) which of the following is true of an injurious falsehood case?
a.it is the same as a tort of defamation.
b.the degree of fault required for liability is unclear.
c.damages for emotional distress are not recoverable.
d.there is liability for false statements made in good faith.
12) al hires bob to move his furniture to his new house. on the day of the move, bob
does not feel like moving furniture, so he asks his friend chuck to move the furniture.
chuck decides to leave before completing the move in order to watch a football game on
tv. al has to delay his move and hire another mover at a higher price. al wants to sue bob
to recover for his damages. given these facts, al will most likely:
a.lose, because it was chuck, not al, who failed to fulfill his duty to al.
b.win, because bobs duty to al was not delegable.
c.win, because bob is liable to al.
d.lose, because he failed to insist on bobs performance.
13) a buyer in the ordinary course of business is:
a.subject to the security interest created by his seller.
b.free from the security interest created by the secured party.
c.free from the security interest created by his seller.
d.subject to the security interest created by the secured party.
14) the _____ that the plaintiff is required to prove are his usualand typically his
onlyremedy in injurious falsehood cases.
a.special damages
b.statutory damages
c.compensatory damages
d.punitive damages
15) beth has just turned 17 years of age. she entered into a contract with abc corp. for
the purchase of a used car, with full payment due in 30 days. the purchase price was
$5,000. this car is necessary for beth to use as transportation to her job, which she needs
in order to pay tuition at the university where she is a freshman. beths parents have
refused to help her pay for college. three days later beth changes her mind; she now
wants to return the car because she has learned that it is worth only $4,000. $4,000 is in
fact the reasonable value of this car. if beth does not pay, and the seller sues, the
outcome of this lawsuit will be that:
a.beth must pay $5,000.
b.beth must pay $4,000.
c.beth does not have to pay for the car; she is entitled to the remedy of rescission
because she is a minor.
d.beth does not have to pay for the car; she is entitled to the remedy of punitive
damages because abc overcharged her.
16) many courts have adopted a test in resolving the proximate cause question, under
which a defendant who has breached a duty of care is liable:
a.only for the natural and probable consequences of his actions.
b.for all injuries sustained by the plaintiff.
c.even for injuries caused by the plaintiffs negligence
d.at least 50 percent of the damages.
17) _____ refers to a situation wherein the court forces dissenting creditors to accept a
reorganization plan when the court finds that it is fair and equitable.
a.cram down
b.make one whole
c.divestiture
d.restitution
18) big corp. (bc) is in the business of making and selling plastic products. dominant
and micro both buy plastic products of similar grade and quality regularly from bc.
dominant is the biggest customer of bc while micro usually buys very small quantities.
due to an unexpected shortfall of raw materials, bc anticipates significant reduction in
plastic production at its plants. in order to maintain supply of plastic products to
dominant, bc quotes a 40 percent higher price for its products to micro. will this amount
to a violation of section 2(a) of the robinson-patman act?
a.yes, because bc is committing primary level price discrimination.
b.no, because dominant deserves the preferential treatment.
c.yes, because bc is adversely affecting competition at its customers level.
d.no, because bc has not made any sales at higher prices to micro.