1) one may also challenge a patents validity without first being sued for infringement
by filing a declaratory judgment action that seeks a court ruling of invalidity.
2) john is a partner of aegon services, a limited liability partnership firm. he committed
fraud and embezzled $1 million from a client. the other partners would not be
personally liable for johns malpractice.
3) social guests are licensees in some states.
4) a check payable to the order of cash is an example of bearer paper.
5) if the seller delivers defective goods to the buyer, the buyer can recover the value of
the goods as warranted minus the value of the goods received.
6) emancipation is a formal agreement in writing to terminate a parents right to control
a child and receive services from him.
7) the general duty of professionals requires them to be guarantors of the accuracy of
their work.
8) the per share value of the shares of a minority shareholder of a corporation is greater
than the per share value of the shares of a majority shareholder.
9) which of the following is not one of the implied warranties that the assignor gives to
the assignee?
a.that the obligor has capacity to contract.
b.that the contract is not voidable for any other reason known to the assignor.
c.that the assignor has good title to the rights assigned.
d.that the obligor is solvent.
10) the difference between a wagering contract and an insurance contract is that the
insurance contract:
a.is commercial in nature.
b.transfers an existing risk.
c.does not contain an insurable interest.
d.is between two interested parties.
11) bill is 17 years old. his parents no longer support him. he purchases bread and eggs
from a grocer on credit, and then does not pay. does the grocer have a right to payment
from bill for these items?
a.no, because bill is a minor.
b.no, because these items are necessaries.
c.yes, because these items are necessaries.
d.yes, because bill is emancipated.
12) which of the following statements about the equal pay act (epa) is accurate?
a.an employee may recover liquidated damages under the epa.
b.the epa requires that private plaintiffs submit their complaints to the eeoc.
c.employee suits under the epa are for unpaid wages or overtime.
d.the epa is enforced by the labor department.
13) russ purchases a new television set from tristas tvs. the television set carries a
four-year express warranty. it was purchased on november 1, 2002 and delivered on
november 3, 2002. on february 3, 2007, after four years and three months of service, the
set collapsed due to a defect covered by the warranty. russ had discovered this defect on
november 5, 2002 when he turned the television set on for the first time. when did the
codes statute of limitations begin to run?
a.november 1, 2002
b.november 3, 2002
c.november 5, 2002
d.february 3, 2007
14) no manufacturer may sell vehicles subject to emission standards without prior
certification from the epa.
15) an oral contract that is covered by the statute of frauds is:
a.voidable.
b.void.
c.unenforceable.
d.executory.
16) in order for the consideration requirement in contracts to be met:
a.the consideration given by each party must be of roughly equal value.
b.each party must give consideration.
c.the consideration must have monetary value.
d.the consideration must consist of some form of property.
17) a gift inter vivos is a gift:
a.made in contemplation of death.
b.between two living persons.
c.between a deceased person and a living one.
d.made in consideration for money.
18) nast corp. orally engaged baker & co., cpas, to audit its financial statements. the
management of nast informed baker that it suspected the accounts receivable were
materially overstated. although the financial statements audited by baker did, in fact,
include a materially overstated accounts receivable balance, baker issued an unqualified
opinion. nast relied on the financial statements in deciding to obtain a loan from century
bank to expand its operations. nast has defaulted on the loan and has incurred a
substantial loss. if nast sues baker for negligence in failing to discover the
overstatement, bakers best defense would be that:
a.baker did not perform the audit recklessly or with an intent to deceive.
b.baker was not in privity of contract with nast.
c.baker performed the audit in accordance with generally accepted auditing standards.
d.nast orally engaged baker and no engagement letter had been signed by baker.
19) section 5 of the ftc act normally is not violated when sellers make:
a.false statements about legal regulations.
b.deceptive omissions from their advertisements.
c.false or misleading claims of an implied nature.
d.claims regarding taste or smell of their products.
20) which of the following is true of restatements?
a.they are promulgated by courts.
b.they can be adopted as common law by the states.
c.they include only statutory laws.
d.they are law and can bind courts.
21) malcolm has brought a lawsuit against will. malcolm feels that there is no genuine
issue of material fact in dispute, and also that he is entitled to win this case as a matter
or law. what legal procedure would allow malcolm to win this case as quickly as
possible?
a.discovery
b.voir dire
c.jury trial
d.summary judgment
22) _____ legislation ensures periodic congressional review of the initial decision to
delegate legislative authority to an administrative agency.
a.conditional
b.sunset
c.class
d.subordinate
23) smith and benson make an oral contract for the sale of some land at a price of
$500,000. after paying smith $400,000 of the purchase price, benson takes possession
of the land. one month later, smith wants to boot benson off the land. his argument is
that the parties oral agreement is unenforceable under the statute of frauds. which of the
following is most correct?
a.smith is correct, because the contract is for an amount greater than $500.
b.smith is correct, because this is an oral contract for the sale of real estate.
c.smith is incorrect, because the contract is for an indefinite period of time.
d.smith is incorrect, because benson paid part of the purchase price and took
possession.
24) which of the following characterizes false imprisonment?
a.unintentional confinement of a person with consent
b.partial confinement of a person by blocking an exit, when several exist
c.intentional confinement of a person with consent
d.unfounded assertion of legal authority to detain a person
25) if the description of interest in the instrument does not allow the amount of interest
to be ascertained, then interest is payable at the:
a.variable rate.
b.judgment rate.
c.order rate.
d.fixed rate.
26) which of the following is true of the resource conservation and recovery act?
a.failure to comply with its regulations incurs civil penalties, but not criminal penalties.
b.it gives the federal government and the states the authority to regulate facilities that
generate, treat, store, and dispose of hazardous waste.
c.it focuses on cleaning up past disposal sites threatening public health and the
environment.
d.its programs are centrally coordinated and administered directly by the central
government.
27) which of the following was the earliest federal legislation enacted to protect water
bodies against pollution?
a.the marine protection, research, and sanctuaries act
b.the safe drinking water act
c.the clean water act
d.the river and harbor act
28) at a _____, the judge meets informally with the attorneys for both litigants in an
attempt to get the attorneys to stipulate, or agree to, a resolution of certain issues in
order to simplify the trial.
a.demurrer
b.directed verdict
c.pretrial conference
d.minitrial