1) in some cases, both principal and agent sometimes are liable for an agents torts.
2) under the clean water act, the states have the main responsibility for regulating water
pollution.
3) because all goods are fungible, specific performance is not available under the ucc.
4) voluntary intoxication usually serves as a complete defense to criminal liability.
5) rights theory concerns itself with the costs and benefits of requiring respect for
anothers rights.
6) a contract made by a person who has been adjudicated to be insane and
institutionalized or put under a guardians care is void rather than voidable.
7) an oral contract within the ucc statute of frauds can be enforced without a writing
only if it involves the sale of specially manufactured goods.
8) in all states, the insureds breach of warranty automatically relieves the insurer of the
duty to perform, regardless of whether the breached warranty was actually material to
the insurers risk.
9) a professional may delegate his/her duty without the consent of the client.
10) congress cannot invalidate state laws that are passed pursuant to the states police
power.
11) the preemption defense rests on a federal supremacy premisethe notion that federal
law overrides state law when the two conflict or when state law stands in the way of the
objectives underlying federal law.
12) profit maximization is a deontological theory.
13) some courts allow promissory estoppel to bind parties to oral contracts that
otherwise would be unenforceable under the statute of frauds.
14) a testator can revoke a will before his death.
15) in general, the mailbox rule is beneficial to:
a.the offeror.
b.the offeree.
c.the courts.
d.third-party beneficiaries.
16) james goes to a dentist to have a tooth extracted. james never signs a written
contract for this service, and he and the dentist never made an oral agreement either.
later, the dentist bills james who refuses to pay. the dentist sues james. which of the
following is true?
a.the dentist can recover under quasi-contract.
b.the dentist cannot recover under an implied contract theory.
c.the dentist can recover under the doctrine of promissory estoppel.
d.the dentist cannot recover because there was no express contract here.
17) the stakeholder theory of corporate social responsibility:
a.strives to maximize profits for its shareholders.
b.tries to balance the interests of shareholders and stakeholders.
c.advocates the use of legal remedies to check corporate misbehavior.
d.advocates the freedom of corporations to run as they wish.
18) certified checks must be made available by:
a.the next day after the day of deposit.
b.within four days.
c.on the same day.
d.any business day.
19) in a contract for the sale of land, how close must the terms of the acceptance be to
the terms of the offer, in order to form a contract?
a.they must be identical or almost identical.
b.they must agree on the major terms of the transaction.
c.they must indicate a definite intent to form a contract.
d.they must be identical only with regard to the price quoted.
20) a supermajority vote is rarely required to:
a.decide with which suppliers the corporation should deal.
b.terminate the employment contract of an employee-shareholder.
c.reduce the level of dividends.
d.change the corporations line of business.
21) jill takes a loan from a bank. she signs a standard-form note prepared by the bank.
the note obligates jill to pay to the bank the amount of the loan, plus interest. jill is the:
a.maker of the note.
b.bearer of the note.
c.drawee of the note.
d.payee of the note.
22) ashley says to ford, id like to buy your house, and ford responds, youve got a deal.
this exchange lacks _____.
a.partners
b.communication
c.object
d.specificity
23) a seller who has a _____ has the power to pass good title to a good faith purchaser
for value.
a.good faith title
b.voidable title
c.lease title
d.lease deed
24) which of the following is the order of priority in case of an internal conflict in a
negotiable instrument?
a.typewritten terms beat printed terms, which beat handwritten terms.
b.printed terms beat typewritten terms, which beat handwritten terms.
c.handwritten terms beat printed terms, which beat typewritten terms.
d.handwritten terms beat typewritten terms, which beat printed terms.
25) which of the following is true of the duty of agents to the principal?
a.the duty not to use or disclose confidential information terminates after the agency
ends.
b.when conducting the principals business, an agent can deal with himself.
c.except for compensation, an agent should not profit from acting on behalf of the
principal.
d.a gratuitous agent does not have the same fiduciary duty as a paid agent.
26) in which of the following situations is an employer least likely to be able to escape
title vii liability on the basis of a bfoq defense?
a.where the alleged bfoq promotes an accountancy firms newly adopted goal of fetal
protection.
b.where the alleged bfoq is needed in an all-male prison which houses sex offenders.
c.where a man is denied work as an undergarment fitter for female customers at a
department store.
d.where a french restaurant denies a german a job as a french chef.
27) to prove domination, it is _____ to show that there is only one shareholder.
a.neither sufficient nor necessary
b.sufficient
c.both necessary and sufficient
d.necessary
28) which types of losses are least likely to be covered by fire insurance policies?
a.losses from friendly fires
b.losses from hostile fires
c.losses from fires that started outside the property
d.losses from smoke and heat that cause indirect damage
29) what two kinds of jurisdiction are necessary for a state court to have jurisdiction
over a case? describe each briefly.
30) police detective brenda judd had a hunch that beats, inc., a retail seller of stereo
equipment and related supplies, was involved in a drug-smuggling operation. in order to
acquire evidence confirming her hunch, judd posed as an ordinary consumer when she
entered the beats store. she slipped out of the public part of the store and proceeded
down a hall to an office whose closed door was marked private. no entry without
authorization from manager. she entered the office which was unoccupied, looked
through files, and located documentary evidence indicating that beats was indeed
involved in an illegal operation. the evidence obtained by judd furnished the primary
basis for drug-smuggling and drug-dealing charges that are now pending against beats.
beats has filed a pretrial motion asking the court to suppress the evidence obtained by
judd in her search of the office. should the evidence be suppressed? why or why not?
31) baker is lessee of jones. because of some personal reasons baker wants to terminate
the lease but the lease is for one year. both are ready for termination. can they terminate
the tenancy in between?
32) pete tells alice, his sales agent, that under no circumstances does she have authority
to make any warranties covering goods she sells for pete. no third party knows about
petes limitation on alices authority. alice goes out and provides warranties in a sale to
tom. the warranties that alice makes are customary in the trade, tom knows this, and
tom knows nothing about the limitation on alices authority. did alice have implied
authority to bind pete? discuss alices apparent authority?
33) on may 1, s sells goods to b. b immediately resells the goods to c, who buys in good
faith and pays cash. on may 2, s learns that b was insolvent when it accepted the goods.
on may 3, therefore, s demands return of the goods from b. b says: sorry about that, but
i sold them to c. can s recover the goods from c?
34) arnold promised to sell his car to adams in lieu of full payment of his debt. however
in the written contract, arnold had forgotten to specify which car he wants to sell. is
there any remedy?
35) nick, a real estate agent, decided to purchase a house for $300,000 after hiring
architects, decorators, and electricians to examine it. however, nick did not get the
property appraised. after executing the sale contract with the homeowner, kurt, nick
discovered that the house was actually worth only $150,000. will nick be entitled to
rescind his contract with kurt? explain.
36) hannah is a managing partner of andrusian worldwide llp, an accounting and
consulting partnership. acting within her implied authority, hannah makes a contract for
andrusian to perform an audit for national motors company. the audit fee is $325,000.
the performance of the audit takes more hours than hannah expected, because hannah
has failed to determine the number of locations in which national motors does business
prior to setting the audit fee. as a result, andrusian loses $50,000 on the audit. has
hannah breached a fiduciary duty?
37) the drafters of revised article 3 created a new and significant exception to the
requirement that to be negotiable, an instrument must be payable to order or to bearer.
what is it?
38) bob is a partner in xyz limited partnership. for tax reasons, bob wishes to be both a
general and a limited partner. may he do this?