1) in order to prevent debtors from misusing the provisions of the bankruptcy code, the
scope of dismissal of a bankruptcy petition has been widened to a broader interpretation
of abuse, and not just restricted to substantial abuse.
2) a remedy limitation is more likely to be declared unconscionable in consumer cases
involving personal injury.
3) a corporation is required to reimburse a promoter for his reasonable expenses
incurred on behalf of the corporation prior to incorporation.
4) the obligations imposed on telemarketers by the ftcs telemarketing sales rule do not
apply to sellers that solicit sales through mailed catalogs and then receive consumers
orders by telephone.
5) in many cases, a blind person will be held to a different standard of reasonable care
than a person who can see.
6) the principals ratification of a contract can be implied from his conduct, even if the
principal says nothing to ratify.
7) under many mixed comparative negligence systems, a plaintiff recovers nothing
where the plaintiffs own negligence is 50% or more.
8) the person who creates a trust is known as the beneficiary.
9) unemployment compensation is provided entirely at the federal level, and the states
have no role to play in this matter.
10) a person who makes a completely executory promise, in return for a negotiable
instrument, has given value for it.
11) a disclaimer is a clause attempting to block recovery of certain damages.
12) the underlying purpose of the statute of frauds is to:
a.prevent frauds in general.
b.corroborate the existence of the oral contract.
c.punish those who commit frauds.
d.make fraud illegal.
13) assume that a state, acting through the appropriate county prosecutor, plans to
initiate a felony prosecution against joe beck. further assume that the state is among
those in which felony defendants may be charged by either of the two methods
discussed in the text. which of the following is an accurate statement?
a.if a preliminary hearing is held and the judge conducting it concludes that there is a
probable cause to believe that beck committed the charged felony, the judge (who
presided over the preliminary hearing) will find beck guilty and sentence him
accordingly.
b.if the prosecutor decides to follow the information route to initiating the felony
prosecution, beck is entitled to insist that a grand jury be convened to determine
whether he should be prosecuted by the state.
c.if a preliminary hearing is held, the state must prove becks guilt beyond a reasonable
doubt in order to carry its burden of proof at the preliminary hearing stage.
d.if a preliminary hearing is held and the magistrate conducting it concludes that there
is a probable cause to believe that beck committed the charged felony, the magistrate
binds over the defendant for trial in the appropriate court.
14) on thursday, trista dylan receives a letter from charlie holmes offering to sell her a
diamond ring and stating that: if you choose to accept, you must do so prior to 2:00
p.m. tomorrow. trista had a telegram of acceptance dispatched well before 2:00 p.m. on
friday but it is delivered to charlies home only at 2:15 p.m. do trista and charlie have a
binding contract?
a.no, because tristas purported acceptance was delayed.
b.yes, because trista dispatched the telegram prior to 2:00 p.m.
c.no, because tristas use of a telegram was not stipulated in the offer.
d.yes, unless charlie is not home to receive the telegram.
15) the sherman act states that corporations convicted of violating it may be fined as
much as:
a.$50 million per violation
b.$100 million per violation
c.$200 million per violation
d.$150 million per violation
16) if a petition for bankruptcy is filed by a health care business:
a.the creditors bear the financial responsibility for the disposal of patient records where
there are insufficient funds to continue to store them.
b.the trustee is instructed to transfer patients in a health care business that is in the
process of being closed to an appropriate health care business.
c.the necessary costs of closing a health care business is borne by the adjudicating
court.
d.the automatic stay provisions apply to actions by the secretary of health and human
services to exclude the debtor from participating in federal health care programs.
17) which of the following instruments is nonnegotiable?
a.i promise to pay to the order of carol reed $40, jerry jacobs.
b.a statement in the instrument that it was given in payment of the previous months
rent.
c.a statement in the instrument that it was given in payment of the purchase price of
goods.
d.i promise to pay to the order of meg raven, at my option, $100 or five baskets of
oranges, dan gilbert.
18) which of the following is true about implied authority?
a.it is the sole determinant of a partners actual authority.
b.it is determined with reference to what is usual business for partnerships of the same
general type.
c.it exists because it reasonably appears to a third party that a partner has authority to do
an act.
d.it may contradict a partners express authority.
19) what is the standard of proof that the plaintiff must satisfy in a tort case?
a.preponderance of the evidence
b.beyond-a-reasonable-doubt
c.benefit of assumption
d.burden of proof
20) the difference between executive agencies and independent agencies is that:
a.independent agency heads are appointed by congress.
b.independent agency heads serve fixed terms in office.
c.executive agency heads are appointed by executives of corporations.
d.executive agency heads can be removed by congress.
21) which of the following is true of the materiality of breach?
a.courts generally adopt strict standards to determine materiality.
b.the magnitude of the breach is of relatively less importance.
c.there is a no concern about compensating the nonbreaching party.
d.the timing of the breach is generally taken into consideration.
22) greg signed a contract to work as an auto-parts manager for jones chevrolet. this
contract is governed by:
a.article 2 of the ucc.
b.state common law.
c.the doctrine of promissory estoppel.
d.the law of quasi-contract.
23) in which of the following ways does the age discrimination in employment act
(adea) differ from title vii?
a.a plaintiff must file a charge with the eeoc or a state agency under title vii, but not
under the adea.
b.unlike title vii, the adea does not incorporate mixed-motives claims of disparate
treatment.
c.title vii has a bfoq defense but the adea does not.
d.a successful plaintiff can get equitable relief under title vii, but not under the adea.
24) what is the express term in the insurance policy which serves as the basis for the
insurers liability?
a.guarantee
b.warranty
c.surety
d.representation
25) hally took advantage of a confidential, trusting relationship with gwyn when they
entered into a contract. now, gwyn can seek remedy based on:
a.duress.
b.unconscionability.
c.undue influence.
d.fraud in the execution.
26) morgan is a silent partner at mathers & sons, a general partnership. because he is
only a silent partner, he does not have:
a.the duty to contribute capital to the firm.
b.the duty to serve in the day-to-day operations of the firm.
c.the same liability for partnership debts as other partners.
d.the duty to act within actual authority.