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1) a right of first refusal on a share certificate allows the corporation to match the offer
that a selling shareholder receives for his shares.
2) a bank may, but need not, pay any checks that are more than six months old.
3) under the doctrine of constructive eviction, a tenant may terminate a lease because
the condition of the property is unsuitable for the purposes for which it was leased.
4) if the bailee delivers the bailed property to the third-party claimant and the claimant
is not entitled to possession, the bailee is not liable to the bailor.
5) the owner of caf coffee day declaring that his restaurant makes the worlds best cup of
coffee is an example of an express warranty.
6) if the buyer is not a merchant, then her obligation after rejection is limited to
returning the goods to the seller.
7) a surety who pays a debtors debt to the creditor gets all the rights the creditor had
against the debtor. this is called subrogation.
8) in community property states, land acquired during marriage will be deemed
community property.
9) a living will is a will under which bequests and devises to beneficiaries take place
while the testator is still alive.
10) which of the following agreements will result in the formation of an agency coupled
with an interest?
a.borrower shall pledge securities to a lender, authorizing the lender to sell the securities
and apply the proceeds to the loan in the event of default.
b.employee is hired for a period of two years at $40,000 per annum plus 2% of net
sales.
c.broker is to receive a 5% sales commission out of the proceeds of the sale of a parcel
of land.
d.attorney is to receive 25% of the plaintiffs recovery for personal injuries.
11) which of the following will be legally binding on all parties despite lack of
consideration?
a.an irrevocable oral promise by a merchant to keep an offer open for 60 days.
b.a promise to donate money to a charity which the charity relied upon in incurring
large expenditures.
c.a promise to pay for the college education of the child of a person who saved the
promisors life.
d.a signed modification to a contract to purchase a parcel of land.
12) sandra hired jeff to work as a taxi driver for sandra. jeff had a long criminal record
for violent assaults, including three cases of vehicular homicide. however, sandra was
not aware of this and she does not check employees criminal records. while jeff was
driving a passenger, ben, they got involved in a heated argument. jeff pulled ben out of
his car and hit him. which of the following is true of this case?
a.since sandra was not aware of jeffs criminal history, she will not be held liable for this
incident.
b.jeff was outside the scope of his employment, hence he is liable for this tort, and
sandra escapes liability.
c.sandra is liable for the incident only under the vicarious liability doctrine.
d.sandra is liable because of the direct liability doctrine.
13) how long is the legal temporary monopoly that present patent laws provide to the
inventor after the filing of the patent application?
a.ten years.
b.seventeen years.
c.twenty years.
d.the lifetime of the inventor.
14) which of the following is true of preexisting contractual duties and their
modification under the ucc?
a.there is no provision of modifications due to unforeseen circumstances.
b.no modifications can be made to an existing contract that is binding.
c.modification requires mere agreement on the part of those involved.
d.rules for contractual modifications are different for the ucc and the cisg.
15) any word, name, symbol, device, or combination thereof used by a manufacturer or
seller to identify its products and distinguish them from the products of competitors is
called a:
a.copyright.
b.trademark.
c.signature.
d.patent.
16) tom, brady, and alex are members of a golf country club (a nonprofit corporation).
tom holds 5 percent of voting power, brady holds 8 percent of voting power, and alex
holds 1 percent of voting power in the club. they would like to call a special meeting of
the club to discuss renovation of some of its facilities. who amongst them can call such
a meeting?
a.brady and alex
b.alex and tom
c.alex, tom, and brady
d.tom and brady
17) while in the course of employment with marco, inc., payne was injured. marco has
complied with the states mandatory workers compensation statute. marcos workers
compensation carrier has asserted the following defenses to paynes claim for workers
compensation benefits:
i. marco was free from any wrongdoing.
ii. payne assumed the risk by disregarding marcos safety procedures.
iii. paynes injury was intentionally self-inflicted.
which defense(s) asserted by the workers compensation carrier, if proven, will prevent
payne from recovering?
a.i only
b.ii only
c.iii only
d.i and ii
18) homer and marge bought blueacres as tenants in common with equal shares of
ownership. one year later, homer died, leaving a will in which he left his interest in
blueacres to his son, bart. under these circumstances:
a.marge will acquire complete ownership of the property.
b.marge and bart own the property as tenants in common.
c.bart will be considered marges tenant on rent.
d.marge and bart are co-owners, but marge has the right to exclusive possession.
19) in 2001, tom purchased a home with a fair market value of $100,000. at the same
time, he also purchased a valued policy with a face amount of $100,000 to insure the
house against various risks, including fire. in 2002, the house was destroyed by fire. the
fair market value of the house at the time of the fire was $150,000. what is tom entitled
to under the policy?
a.$100,000
b.$150,000
c.$250,000
d.nothing
20) the typical dissolution of a corporation requires approval of the:
a.board of directors.
b.creditors of the company.
c.merger company.
d.shareholders.
21) joshua, rachel, and daniel formed an llc to manage their accounting business. joshua
contributed $20,000 to the llc. rachel and daniel contributed $40,000 each. a year later,
the llc needed capital injection and joshua lent a credit of $50,000. however, nothing
could save the llc and it entered bankruptcy and got dissolved. joshua was the only
creditor of the llc. if a total of $50,000 was obtained after the sale of all the assets of the
dissolved llc, how much will rachel get?
a.$0
b.$10,000
c.$50,000
d.$25,000
22) harvey is planning to file a case against a petrochemical giant which has a plant in
his town. the petrochemical plant is dumping toxic wastes into its surrounding areas.
harvey is mobilizing the residents of the town, all of whom have suffered from various
health problems due to the activities of the plant. which of the following would be of
most help to harvey and the other residents?
a.demurrer
b.class action
c.directed verdict
d.affirmative defense
