1) toywood inc., headquartered in vermont, specializes in manufacturing non-toxic
wooden toys in its two mechanized units in vermont and new hampshire. its flagship
store is located in philadelphia, pa. it will be considered a(n) _____ corporation in pa.
a.domestic
b.alien
c.domicile
d.foreign
2) milner developers proposed an offer to henry wright, an independent contractor, to
hire him for their next project. they offered him a certain rate and specified the contract
details along with describing the stipulated mode of acceptance, but received no
response. wright responded to the offer after a delay of two months with a quote for a
higher amount than that mentioned by milner developers. do the two parties have a
binding contract?
a.no, because the offer made by milner developers was ambiguous.
b.no, because wrights letter was a counteroffer to the original offer.
c.yes, because milner developers did receive a response from wright.
d.yes, because wrights silent signaled his acceptance of the offer.
3) a buyer is entitled to the remedy of specific performance when:
a.the contract is between merchants.
b.the contract is for unique goods.
c.the contract is for goods where the price is $500 or more.
d.the contract requires delivery in installments.
4) jim gave a postdated check dated december 30 to one of his creditors on december
22. however, the check was presented to jims bank on december 24, and the bank
honored it. as a result, there was not enough money in his account to cover for another
check he had written for december 27, and hence, the check bounced. the bank charged
jim a $20 fee for the bounced check. what is the banks liability regarding this bounced
check?
a.the bank has no liability.
b.the bank must compensate jim for any losses that result from this bounced check.
c.the bank is liable, but only for the $20 bank charge related to the bounced check.
d.the bank is liable, but only for the immediate, direct damages that result from the
bounced check.
5) the equal credit opportunity acts (ecoa) provisions apply only in the consumer credit
setting but not in the commercial credit context.
6) the toxic waste dump cleanups required by cercla:
a.are funded entirely by a tax on chemicals and feedstocks.
b.are funded entirely by the state in question.
c.are funded entirely by the responsible party or parties.
d.are funded entirely by the ‘superfund.”
7) which of the following was not taken into account by classical law in assessing
contracts?
a.fraud
b.duress
c.misrepresentation
d.fairness
under classical contract law, courts were reluctant to inquire into the fairness of an
agreement. because the prevailing social attitudes and economic philosophy strongly
favored freedom of contract, american courts took the position that so long as there had
been no fraud, duress, misrepresentation, mistake, or undue influence in the bargaining
process, unfairness in an agreement entered into by competent adults did not render it
unenforceable.
8) sonia through fraudulent representations induced gracie to execute a negotiable note
payable to sonia. sonia is a holder in due course.
9) when reese group of hotels (rgh) was on the verge of facing a hostile takeover bid by
rivals blossoms group (which held a 14.98 percent stake in rgh), relys came forward and
bought a 14.12 percent stake in rgh, thereby relieving rgh from the hostile takeover risk.
this kind of tender offer defense is called:
a.greenmail.
b.the lock-up option.
c.white knight.
d.pac-man.
10) paul sues dan for aesthetic pollution. the basis for his suit is dans habit of wearing
clothes paul considers ugly. pauls complaint offers details of dans ugly clothing in many
separate, numbered paragraphs. however, no law requires one to pay damages for
wearing clothes that another considers ugly and for causing aesthetic dissatisfaction to
some other party. thus, dan wants to defeat pauls claim as fast as possible. the best
procedural device for doing so is the:
a.motion to dismiss.
b.motion for summary judgment.
c.motion for judgment not withstanding the verdict.
d.motion for a directed verdict.
11) if there is a conflict between the express terms of the contract and trade usage, the:
a.past course of dealing between the parties will prevail.
b.seller is excused.
c.contract is voided.
d.express terms of the contract prevail.
12) in the sale of a home, which of the following would likely be treated as a fixture?
a.a couch to match the upholstery
b.a ceiling fan
c.a lawn mower
d.a new console table
13) a stop-payment order is authorized by the:
a.bearer.
b.creditor.
c.drawer.
d.drawee.
14) which of the following defeats a federal statute in case of a clash between them?
a.a state statute.
b.a state constitution.
c.an equitable principle.
d.the us constitution.
15) what level of care must a bailee exercise in a bailment for his own exclusive
benefit?
a.greater than ordinary care
b.less than ordinary care
c.ordinary care
d.the same level of care that a prudent person exercises over his/her own property
16) many alleged violations of statutes or trade regulation rules are never adjudicated
by the ftc. instead, they are settled through a _____.
a.cease-and-desist order
b.standard $16,000 fine per violation
c.consent order
d.standard $26,000 fine per violation
17) a bargain is considered to be void if a court has _____ a person to be mentally
incompetent at the time the bargain was formed.
a.ratified
b.adjudicated
c.disaffirmed
d.emancipated
18) which of the following is not a consequence of being a partner of a partnership?
a.partners are not liable for each others torts.
b.partners are agents of each other.
c.each partner owns a portion of the value of the business.
d.each partner owes fiduciary duties to the partnership and to the other partners.
19) the drawee does not have liability on the instrument until it _____ the instrument.
a.transfers
b.signs
c.negotiates
d.makes