1) the following statements pertain to alleged violations of section 1 of the sherman act.
which statement is accurate?
a.although tying agreements are classified as per se violations of section 1, the judicial
treatment given to them differs from pure per se treatment.
b.because vertical restraints on distribution necessarily harm intrabrand competition,
they are considered per se violations of section 1.
c.because group boycotts amount to reprehensible conduct that cannot have competitive
justification, all such agreements are considered per se violations of section 1.
d.although concerted action ordinarily has been required in order for there to have been
a violation of section 1, the supreme court recently dispensed with the requirement in
price-fixing cases.
2) a(n) _____ fraud applies when a professional misstates a material fact and recklessly
or grossly negligently fails to ascertain the truth of the statement.
a.constructive
b.scienter
c.ultramares
d.fabrication
3) a buyer who is not a merchant rejects nonconforming goods that are not perishable.
he:
a.may destroy the goods.
b.must sell the goods for the seller.
c.must hold the goods till the seller is willing to take them back.
d.need not return the goods to the seller.
4) which of the following is a characteristic of the “takings clause”?
a.it includes issues of property as well as the sale of goods.
b.it protects the public from government intrusion into their property.
c.private property can be taken for public use, without any reparation.
d.the property owner must receive just compensation.
5) which of the following is not true about title vii?
a.it forbids discrimination on the basis of national origin.
b.it prohibits discrimination on the basis of homosexuality or transsexuality.
c.it prohibits racial discrimination against whites.
d.it forbids religious discrimination against atheists.
6) abby orally offers to sell carl 100 premium-grade fountain pens but neglects to state
the price. such pens typically sell for $1 each. carl orally accepts. immediately
thereafter, abby tries to back out of the deal. at this point in time, which of the following
is most likely to be true?
a.there is no offer and no contract because the offer is indefinite.
b.there is no offer and no contract because the offer must be in writing.
c.there is a contract, if the parties intended to make a contract and there is a reasonably
certain basis for giving an appropriate remedy.
d.there is a contract, because the offer contained all material terms.
7) which of the following prevents the federal government from depriving “any person
of life, liberty, or property, without due process of law”?
a.first amendment
b.fifth amendment
c.fourteenth amendment
d.fifteenth amendment
8) _____ arises when the principals manifestations cause a third party to form a
reasonable belief that the agent is authorized to act in a certain way.
a.contractual authority
b.incidental authority
c.apparent authority
d.actual authority
9) the implied warranty of fitness for a particular purpose is violated when the goods
are:
a.unfit for any use.
b.unfit for the ordinary use for which such goods are used.
c.unfit for the particular use that the buyer intends.
d.unfit for the particular use that the buyer intends, and the buyer is a merchant.
10) after khan (state oil co. v. khan (1997)) and leegin (leegin creative leather products
v. psks, inc. (2007)), all forms of vertical price-fixing now receive _____ analysis.
a.quick-look
b.rule of reason
c.secondary
d.per se
11) which of the following arises when there has been an incomplete disposition of trust
property and the creation of a trust is necessary to effectuate a settlors intent or avoid
unjust enrichment?
a.express trust
b.spendthrift trust
c.totten trust
d.resulting trust
12) john receives certain goods from tom. he promises to pay john later. this transaction
is based on a(n) _____.
a.deed of trust
b.unsecured credit
c.mortgage
d.subrogation
13) the original offeree is one who:
a.first makes the offer and determines its terms and conditions.
b.has the legal power to accept an offer and create a contract.
c.hears of the contract indirectly and has an intent to accept.
d.first accepts the additional terms presented by the offeree.
14) a plaintiff will succeed against her employer in a disparate treatment case under title
vii if she can prove that:
a.her employer does not pay her well.
b.her workload is very high.
c.her employer rarely approves her requests for leave of absence.
d.her employer discriminates against her on the basis of race.
15) in a partnership, partners may give everyone notice of a partners authority or
limitation on a partners authority by filing a(n) _____ with the secretary of state.
a.special resolution
b.article of organization
c.memorandum of association
d.statement of denial
16) agreements under which corporations avoid formal criminal charges and trials in
return for their agreement to pay monetary penalties and submit to outside monitoring
of their activities are called:
a.non-prosecution agreements.
b.plea agreements.
c.deferred guaranty agreements.
d.deferred prosecution agreements.
17) which of the following is an accurate statement of a general rule regarding security
deposits obtained by landlords from tenants under residential property leases?
a.if the landlord intends to retain part, but not all, of the tenants security deposit, the
landlord complies with applicable legal requirements if he verbally notifies the tenant
of that intent.
b.the landlord is not entitled to use any part of the security deposit to cover the cost of
remedying ordinary wear and tear that occurred during the tenants occupation of the
property.
c.the landlord is entitled to use any part of the security deposit as a way to recover
unpaid rent.
d.as a general rule, security deposits are generally nonrefundable unless the tenant
makes a convincing written showing of why part or all of the security deposit should be
refunded to him or her.
18) the securities and exchange commission (sec) was created by the:
a.securities exchange act of 1934.
b.securities investor protection act of 1970.
c.investment company act of 1940.
d.securities act of 1933.