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1) there is usually no liability of injurious falsehood for false statements that are made
negligently and in good faith.
2) under tariff rules, a common carrier may limit her liability to a shippers declaration
of value, provided that the rates are dependent on value.
3) contracts must always be in writing to be enforceable.
4) generally, property owners do not owe a duty of care to trespassers, who regularly
enter the land without authorization.
5) the relevant geographic market in the case of merger between competitors, are the
markets in which they actually compete.
6) if an instrument is negotiable, the general rules of contract law control.
7) american legal realists distinguish between the law in the books and the law in action
and they recognize law as the behavior of public officials (mainly judges) as they deal
with matters before the legal system.
8) the relevant product market is composed of those products meeting the functional
interchangeability test.
9) generally, purchases of farm property are financed through real estate mortgage.
10) which of the following is true of consideration?
a.a promise cannot be deemed a consideration in a bilateral contract.
b.the legal value of a consideration must be equal to the actual value in a consideration.
c.gross inadequacy of consideration can give rise to an inference of fraud for setting
aside a contract.
d.a preexisting moral obligation is deemed a consideration.
11) _____ agreements reduce a manufacturers sales costs and provide dealers with a
secure source of supply.
a.joint venture
b.exclusive dealing
c.reciprocal dealing
d.formal written
12) to be liable for monopolization, a defendant must:
a.possess superior-quality products and services.
b.have a market share in excess of 70 percent.
c.possess best-in-class business acumen.
d.have exclusive dealing agreements with suppliers.
13) what does tender of delivery mean?
a.the seller must make the goods available to the buyer.
b.the buyer must accept and pay for the goods if they conform to the contract.
c.where delivery is to be made in lots, the seller can demand the price of each lot upon
delivery.
d.the goods are to be delivered at the buyers place of business.
14) according to the supreme court of the united states, a foreign corporation may be
brought into a states court in connection with its activities within the state, provided that
the state does not violate the corporations due process rights under the fourteenth
amendment of the constitution and its rights under the:
a.foreign business clause.
b.domestic business clause.
c.commerce clause.
d.doing business clause.
15) the common law has, traditionally, allowed plaintiffs to recover for libel without
proof of _____.
a.punitive damages
b.compensatory damages
c.liquidated damages
d.special damages
16) salmond signs a note for the purpose of lending credit to john. salmond also makes
his father richard sign the note because of his shaky financial condition. this indicates
that richard has signed the note in the capacity of a(n):
a.drawee.
b.accommodation party.
c.drawer.
d.indorser.
17) a _____ is a contract, usually on a standardized form, offered by a party who is in a
superior bargaining position on a take-it-or-leave-it basis.
a.quasi-contract
b.contract of adhesion
c.executory contract
d.bilateral contract
18) nathan wrote a new software and named it black mamba. to commercialize it, he
formed an llc (with a 50-year term) with his friend pete. two years later, nathan
withdrew from membership of the llc since his and petes working styles did not match
in any way. under which of the following conditions can nathan ask for a judicial
dissolution of the llc?
a.the llc failed to purchase nathans interest within a week of his dissociation.
b.since nathan wrote black mamba, pete should not profit from it or the llc.
c.pete is using the profits from the llc to sell a fake version of black mamba.
d.the llc failed to give fair value to nathan for his transferable interest.
19) which of the following is an essential element of a lien?
a.presence of a written deed of trust
b.presence of guarantor for the payment of an artisans service
c.creation of a debt by the improvement or the provision of services concerning the
goods
d.presence of an accommodation surety who voluntarily accepts the duty of the surety
20) which of the following is not a necessary element of the definition of partnership
according to the rupa?
a.co-ownership of the assets used by the business
b.association of two or more persons
c.limited liability of partners
d.carrying on of a business
21) which of the following characterizes emancipation?
a.it allows parents to receive services from the child.
b.it occurs only through parents consent.
c.most states grant an emancipated minor the capacity to contract.
d.there are no formal requirements for it.
22) which of the following corporate actions is included in a corporations board of
directors authority?
a.adopting and amending bylaws
b.amending the articles of incorporation
c.approving merger of the corporation
d.approving voluntary dissolution
23) katie kuric is the only shareholder, director, and officer of two corporations,
multimedia corporation and kuric network television corporation (knt). multimedia
produces television shows and movies. knt broadcasts television programming over the
air and on cable. knt purchases much of its tv programs and movies from multimedia.
knt often pays multimedia for the tv shows and movies more than a year after payment
is due, without being required to pay interest or a late payment penalty. what risk is
katie taking by allowing knt to pay multimedia late?
a.none, because knt and multimedia are separate and distinct legal entities.
b.none, because only multimedia is harmed by this arrangement, and katie owns both
corporations.
c.knts veil will be pierced because knt is evading an obligation with multimedia.
d.knts veil will be pierced because multimedias creditors are being defrauded.
24) which of the following is not a basic element of a contract?
a.offer
b.consideration
c.capacity
d.goods
25) under chapter 13 of the bankruptcy act:
a.the petition may be voluntary or involuntary.
b.no debt extensions are permitted.
c.no plan may be approved if an unsecured creditor objects.
d.no trustee is appointed.
26) abe and hanna are husband and wife. they have filed for chapter 7 bankruptcy.
however, they cannot agree on which set of property exemptions they want to use. abe
wants to use the federal set of exemptions, but hanna wants to use the set of michigan,
where they have lived for 10 years. under these circumstances:
a.the federal exemptions will apply to this bankruptcy proceeding.
b.the michigan exemptions will apply to this bankruptcy proceeding.
c.the federal exemptions will apply to abes property and the michigan exemptions will
apply to hannas property.
d.the bankruptcy court will decide which set of exemptions to apply here.
27) trioka corp. owns an apartment complex at which break-ins and prior instances of
criminal activity had occurred. however, no security-related measures have been
adopted. as a result, a criminal intruder easily enters the complex and physically attacks
a tenant. which of the following is true regarding the case?
a.trioka has no liability for breach of duty.
b.trioka is liable only for actual cause.
c.trioka is liable only for proximate cause.
d.trioka is liable for proximate and actual cause.
28) under which of the following can a bankruptcy petition be initiated only by a
voluntary petition?
a.chapter 7
b.chapter 11
c.chapter 13
d.chapter 15
