The rule which permits the jury to infer both negligent conduct and causation from the
mere occurrence of certain events is:
a. proximate cause.
b. res ipsa loquitur.
c. causation in fact.
d. comparative negligence.
A periodic leasehold tenancy may be terminated:
a. upon expiration of the period.
b. upon 6 months’ notice in a tenancy from month to month.
c. upon the date set in the lease agreement.
d. upon notice at the expiration of any one period but only on adequate notice to the
other party.
Match each statement with the correct term below.
a. Conclusively presumed unreasonable and therefore illegal.
b. Acquisition by one company of a competing company.
c. Commercially valuable information that is guarded from disclosure.
d. Deduction from wages to repay a debt.
e. An illegal form of differential treatment that includes unwelcome sexual advances,
requests for sexual favors, and other verbal or physical conduct of a sexual nature.
f. Governmental taking of foreign-owned property for a public purpose with just
payment.
g. Includes any note, stock, bond, preorganization subscription, and investment contract
(any investment of money or property made in expectation of receiving a financial
return solely from the efforts of others).
h. A signed writing by a shareholder authorizing a named person to vote her stock at a
specified meeting of shareholders.
i. A general invitation to all shareholders to purchase their shares at a specified price for
a specified time.
j. Not recognized by the common law or federal law, although some states have adopted
statutes granting some form of this.
k. Exclusive right to an invention for a statutory period of 14 or 20 years.
l. Borrowing to acquire goods, services, or land for personal, household, or family
purposes.
m. Substantial and unreasonable interference with the use and enjoyment of a person’s
land.
n. Defense to liability for false securities registration statements.
o. Rule that a court should not question the validity of actions taken by a foreign
government in its own country.
p. Foreign country’s freedom from a host country’s laws.
q. Any business that engages in transactions involving the movement of goods,
information, money, people, or services across national borders.
r. EPA’s treatment of an entire plant as one pollution source for obtaining permits.
s. Similar patterns of conduct among competitors.
t. Exclusive right, usually for the author’s life plus 70 years, to original works of
authorship.
u. The judiciary branch of the United Nations; has voluntary jurisdiction over nations.
1) sexual harassment
2) tender offer
3) due diligence
4) expropriation
5) security
6) per se
7) private nuisance
8) conscious parallelism
9) International Court of Justice
10) trade secret
11) proxy
12) copyright
13) garnishment
14) accountant-client privilege
15) multinational enterprise (MNE)
16) consumer credit
17) sovereign immunity
18) horizontal merger
19) bubble concept
20) patent
21) act of state doctrine
The rule that prohibits schemes and devices to defraud investors is Rule:
a. 504.
b. 14(a)-(e).
c. 10b-5.
d. 16(b).
If a company owns a statutorily specified percentage of a subsidiary’s stock, a merger
may be effected with approval of the parent’s board of directors alone, without resort to
shareholders. This is called a:
a. parent-sub merger.
b. board merger.
c. short-cut merger.
d. short-form merger.
In Robinson v. Durham, the court found:
a. the Robinsons were good faith purchasers for value when they bought the car for
their business, and they had good title which they passed to Durham.
b. the Robinsons had a voidable title, and they passed good title to Durham, who was a
good faith purchaser for value.
c. there was a breach of warranty of title between the Robinsons and Durham.
d. the Robinsons obtained no title from the thief, but they passed good title to Durham
since he was a good faith purchaser for value.
The manufacturer of Rubberware agrees to sell the distributor 1,000 boxes of 2-quart
bowls only if he agrees to resell to the retailer at cost plus $1.10 per bowl and the
retailer must agree to sell at no less than his cost plus $ .50 per bowl. This is:
a. horizontal price fixing.
b. vertical price fixing.
c. vertical market allocation.
d. a group boycott.
When a contract involving the sale of real estate calls for the delivery of the deed in
return for the purchase price on a certain day, this performance is known as:
a. foreclosure.
b. warranty deed day.
c. contract day.
d. the closing.
The action through which the mortgage holder takes the property from the mortgagor,
ends the mortgagor’s rights in the property, and sells the property to pay the mortgage
debt is known as:
a. foreclosure.
b. equity of redemption.
c. adverse possession.
d. an executed deed of trust.
A __________ is a law establishing a maximum rate of permissible interest for which a
lender and borrower of money may contract.
a. wager
b. usury statute
c. Sunday statute
d. None of the above.
Which of the following would be considered a material breach of a contract?
a. Partial performance that omits some essential part of the contract.
b. Delivery of 50 chairs in a contract that calls for 100 chairs.
c. An intentional breach of the contract.
d. All of the above.
Which of the following is NOT essential to a valid deed?
a. Grantor.
b. Grantee.
c. Delivery.
d. Recording.
The seller contracts directly with the buyer in the other country under a:
a. multilateral trade agreement.
b. direct export sale.
c. flow of trade.
d. None of the above.
A principal factor that the courts consider in determining limitations on the causal
connection between the defendant’s negligence and the plaintiff’s injury is:
a. negligence per se.
b. unforeseeable consequences.
c. superseding causes.
d. Both (b) and (c).
Zoning ordinance variances:
a. are not available for hardships caused by the actions of the property owner seeking
the variance.
b. are available if it affirmatively appears that the property owner seeking the variance
cannot yield a reasonable return on the owner’s investment in the property.
c. are available for hardships caused by the variance that are common to the zoned area.
d. Both (a) and (b).
An undertaking by a surety to protect an employer against the dishonesty of an
employee is a(n):
a. performance bond.
b. fidelity bond.
c. judicial bond.
d. official bond.
Contract law is significant in that it is basic to other fields of law such as:
a. sales of personal property.
b. commercial paper.
c. secured transactions.
d. All of the above.
When a minor falsely advises the other party that he is of the age of majority and based
upon that misrepresentation, the other party acting in good faith enters into a contract
with the minor:
a. the minor has lost his right to disaffirm the contract because of the misrepresentation.
b. the adult party can recover damages from the minor in tort.
c. the minor is required to restore the other party to the position occupied before the
making of the contract.
d. There is no uniform rule. States differ, and depending upon the state, any of the
above could be correct.
Which of the following is the correct definition for a partnership?
a. An association of two or more persons with one or more general partners and one or
more limited partners.
b. A legal entity ordinarily consisting of an association of numerous individuals.
c. An association of two or more persons to carry on as co-tenants in business.
d. An association of two or more persons to carry on as co-owners a business for profit.
Under the UCC, a buyer of goods can insure goods he does not presently own but will
own if the buyer has which of the following?
a. A special property interest.
b. An insurable interest.
c. All of the above.
d. None of the above.
Appraisal rights:
a. belong to dissenting shareholders.
b. can be exercised by a target company any time before acquisition.
c. allow a target company to get a fair valuation of their assets before sale.
d. always give all shareholders the fair market value of their shares.
In general, if a minor lies about her age in order to induce the seller to contract with her,
she cannot disaffirm that contract.
Revocation of acceptance must be done as soon as the buyer discovers the grounds for
the revocation.
Arthur offers Bob, an employee of Carol, a yearly salary of $10,000 more than Bob
receives under the contractual relationship between Bob and Carol. Arthur knows about
the contract between Bob and Carol and knows that the contract should run for another
five years, but Arthur badly wants Bob to work for him. Arthur probably is liable to
Carol for intentional interference with contractual relations.
The appointment of an agent by a minor or an incompetent not under guardianship and
any resulting contracts are voidable.
Three different tests are used by the Supreme Court as standards in reviewing cases
which raise issues of equal protection. What are the three tests? When is each applied?
In your opinion, why have different tests been developed?
Matt sells bikes at a local discount store. To encourage Bob to buy a more expensive
model than he originally contemplated, Matt tells Bob, “This is the most awesome bike
money can buy at this price. You can expect lots of riding pleasure.” Based on this
statement Bob buys the bike. A week later, before his bike is fully paid for, Bob sees a
far superior bike for a lower price at another store. Bob can avoid his contract with Matt
because of fraudulent misrepresentation.
Today most crimes are covered by statutory law rather than by the common law,
although many of the crimes in statutory form had their origins in the common law.