When the EPA expends money to clean up a Superfund site, it has the legal authority to
recover its costs from those who were responsible for the problem.
Answer:
The parties to an arbitration proceeding can select an arbitrator in any way they desire.
Answer:
The limited partnership certificate must be canceled when all limited partners have
died or withdrawn.
Answer:
Law must be predictable yet flexible enough to accommodate change.
Answer:
ERISA does not cover union-sponsored pension plans.
Answer:
If the buyer does not have a place of business, delivery is to be made to the buyer’s
home.
Answer:
An instrument that meets all of the formal requirements is not a negotiable instrument
if it is unenforceable or uncollectible for other reasons.
Answer:
A nuncupative will is a will that is written and signed in the testator’s handwriting.
Answer:
In a land sales contract, the seller usually retains legal title and does not turn over the
deed until the property is paid for.
Answer:
The plaintiff’s burden of proof in a tort case is identical to that of a criminal case.
Answer:
If a contract is for the sale of goods, the principles of common law are exclusively
applicable.
Answer:
Punitive damages can be used for intangible harms such as injury to reputation and
emotional distress.
Answer:
Procedural law establishes rights and privileges.
Answer:
An incidental beneficiary cannot enforce a contract.
Answer:
A party who is dissatisfied with the decision of a lower court can always take the case
all the way to the U.S. Supreme Court.
Answer:
Linda and David borrowed $10,000 from the Smart Loan Company and executed a
mortgage on their home to Smart Loan as security for the note. Smart Loan did not
record the mortgage. If Linda and David sell their home to Sheila, and Sheila is not
aware of the mortgage:
A. the mortgage is as valid for Sheila as to Linda and David.
B. the mortgage is not valid for Sheila.
C. the mortgage is valid for future creditors only.
D. the mortgage is invalid for all parties.
Answer:
The theory that calls for a fair allocation of society’s benefits and burdens among all
members of society is:
A. the allocational efficiency theory.
B. Kantianism.
C. the modern rights theory.
D. the justice theory.
Answer:
On August 1, 1990, Lisa wrote a check for $100 payable to the order of her sister,
Marcia. Marcia misplaced the check and found it in May 1991, when she attempted to
cash it. Under these circumstances:
A. the bank must honor the check.
B. the bank cannot pay the check out of Lisa’s account without Lisa’s written
permission.
C. the bank may, in good faith, pay the check and charge it to Lisa’s account.
D. the check is no longer valid because it is a stale check.
Answer:
According to TILA, charges on a stolen credit card that exceed $50:
A. would have to be paid by the cardholder.
B. would not have to be paid by the cardholder if the loss is reported within 2 days.
C. would not have to be paid by the cardholder.
D. would have to be recovered from the person who stole the card.
Answer:
The _____ is a fundamental provision found in most licensing contracts which indicates
the precise scope of the license.
A. technical service clause
B. confidentiality clause
C. granting clause
D. exclusive dealing clause
Answer:
Some of the problems raised by corporate reward structures include:
A. focusing on long-term rather than short-term profitability.
B. the interests of managers always being aligned with the long-range interests of the
company.
C. managers being inclined sometimes to act irresponsibly and/or illegally without an
eye to legal trouble that may occur in the future.
D. firms sacrificing the present to the future thereby promoting long-term allocational
inefficiency.
Answer:
If Nancy steps into the path of George’s speeding car without checking to see whether
any cars are coming, her ____ would prevent her from receiving damages for her
injuries from George.
A. comparative negligence
B. breach of duty
C. assumption of risk
D. contributory negligence
Answer:
Under the U.N. Convention on the International Sale of Goods:
A. a writing is required for contracts over $1,000.
B. a writing is not required.
C. a writing is always required.
D. a writing is required for contracts of specially manufactured goods.
Answer:
Under Kant’s “categorical imperative”:
A. we must judge an action by applying it universally.
B. we should manipulate others for our self-interest.
C. the teleological ethical theory is dominant.
D. the consequences of a decision are focused on, when deciding if it is ethical.
Under Immanuel Kant’s approach, the morality of any action was determined by
applying his categorical imperative. His first formulation of the categorical imperative
is to judge an action by applying it universally.
Answer:
In the United States, private ownership of property is protected by the:
A. Fifth Amendment to the Constitution.
B. Ninth Amendment to the Constitution.
C. Tenth Amendment to the Constitution.
D. Fourteenth Amendment to the Constitution.
Answer:
When a lawyer agrees to represent a client, the lawyer agrees to:
A. the reality that he will be liable for malpractice if he loses the case.
B. exercise the skill, prudence and diligence expected of lawyers of ordinary skill and
competence in the community.
C. the probability that a court will likely second-guess the legal strategy he chooses to
use in representing his client.
D. the reality that the courts are likely to second-guess his professional judgment.
Answer:
In terms of intestacy statutes, adopted children:
A. will inherit from their biological parents.
B. will inherit from their adopted parents.
C. will inherit from their adopted parents but a share lesser than the adopted parents’
biological children.
D. will not inherit anything from anyone.
Answer:
A shareholder’s function includes:
A. election of investors.
B. approval of mergers or a voluntary dissolution.
C. approval of loans to directors by the corporation.
D. approval of stock option plans for other shareholders.
Answer:
Which of the following is governed by Article 2 of the UCC?
A. Lee contracted to build Sal’s house.
B. Chris leased 1,500 square feet of retail space from Anne.
C. Sue contracted to sell 500 pairs of shoes to a department store.
D. Kim contracted to dress Sally for her wedding.
Answer:
A showing of fraud requires:
A. comparative negligence.
B. inadvertent error.
C. scienter.
D. contributory negligence.
Answer:
Jacobsen contracted with Orr to purchase some of Orr’s property. Jacobsen informed
Orr that he (Jacobsen) was purchasing the property on behalf of another person, but
Jacobsen did not reveal to Orr the name of the person for whom Jacobsen was making
the purchase. The agency here is:
A. disclosed.
B. undisclosed.
C. partially disclosed.
D. illegal.
Answer:
Identify the remedy used in cases involving wagering statues.
A. Forfeiture of excess interest.
B. Contracts are generally enforceable in such cases.
C. There is no remedy in such cases.
D. Weekday ratification of contracts.
Answer:
Past consideration is sometimes accepted for ____.
A. official duties
B. for legal obligations
C. moral obligations
D. charitable donations
Answer:
When goods are shipped COD:
A. the buyer must pay for them before inspecting them.
B. the buyer must inspect them before paying for them.
C. the buyer may inspect them before paying for them.
D. the buyer may reject the goods immediately after inspection.
Answer:
____ generally require that the insured pay a deductible each year before the insurer’s
payment obligation begins.
A. Property insurance policies
B. Life insurance policies
C. Liability insurance policies
D. Health insurance policies
Answer:
Conversion is defined as:
A. intrusion on a person’s solitude or seclusion and publishing private facts about a
person.
B. the unlawful taking of or exercise of control over the personal property of another
person.
C. the intentional confinement of a person for an appreciable time without the person’s
consent.
D. the use of force to drive away a person’s customers or employees.
Answer:
Which of the following statements will satisfy the basic requirement of a negotiable
instrument to be in writing?
A. Only instruments that are handwritten are considered to be in writing.
B. An instrument written on a piece of wrapping paper will be considered a poor
business practice and will not be negotiable.
C. Writing does not have to be on any particular material, all that is required is that the
instrument be in writing to be negotiable.
D. An instrument written in pencil does not qualify as a negotiable instrument.
Answer:
A conditional sales contract is an example of a(n):
A. chattel paper.
B. document of title.
C. negotiable instrument.
D. investment property.
Answer:
Which of the following statements is TRUE for unsecured credit?
A. Only consumers use unsecured credit for their personal transactions.
B. The creditor may require the debtor to convey to the creditor a lien on the debtor’s
property.
C. When goods are delivered on unsecured credit, the creditor retains all rights in the
goods.
D. The unsecured credit transaction involves maximum risk to the creditor.
Answer:
Under RICO, _____ is considered a racketeering activity.
A. arson
B. homicide
C. extortion
D. larceny
Answer:
What does it mean to require parties to act in “good faith” in the performance of a sales
contract? Explain and provide an example.
Answer:
Define the different situations in which courts can hold manufacturers liable for
negligence.
Answer:
Why might a U.S. investor choose to incorporate its business in the country where it is
conducting its overseas operations? What special constraints might exist?
Answer:
Define portable health insurance.
Answer:
Explain the theory of allocational efficiency and describe some of its some of the
criticisms levied against the theory.
Answer:
Andy bought a bicycle on credit from a dealer. Andy being a minor, his father agreed to
be a surety for him on the purchase. When Andy failed to repay the debt within the
stipulated time, the dealer filed a lawsuit against Andy’s father. What defense can
Andy’s father use to avoid paying the dealer?
Answer:
List the three ways in which courts make law.
Answer:
Describe the distinction between a surety and a guarantor.
Answer:
Tex accidentally left his digital camera at the bus stop on Friday afternoon. Later that
night, Bill finds the camera and takes it home with the intent of turning it in to the bus
company the next day. Before Bill can turn it in, Dale steals the camera from Bill’s
house. Discuss the ownership rights, if any, of Tex, Bill, and Dale.
Answer: