The court in Moulton Cavity & Mold Inc. v. Lyn-Flex Ind. held that:
a. the sweaters did not conform to the express warranty in the contract.
b. if the seller does not perform his contractual obligations exactly, the buyer has the
right to reject the goods.
c. the Code’s perfect tender rule continued the policy developed by the common law and
the approach favored by Karl Llewellyn, recognized as the primum mobile of the
Code’s tender provisions.
d. the buyer could not rightfully reject the seller’s performance because the defect in the
seller’s tender was insubstantial.
The court in Wyler v. Feuer stated that:
a. the general partner owes the limited partners a duty of reasonable care in the
management of the business.
b. the general partner may be held liable to the limited partner for any mistakes made or
losses incurred in management of the business.
c. a limited partner has a limited right to manage and control the partnership business.
d. Both (a) and (b).
Alice is browsing in a commercial art gallery when she sees a painting that she likes.
Arthur, who is the manager of the gallery, tells her that in his opinion the painting is a
genuine Leroy Neiman work. Based upon that representation, Alice buys the work for
$5,000. She later discovers that the painting is only a cheap copy of the original that is
worth no more than $50. Arthur has:
a. breached an express warranty to Alice that the painting is a Neiman work.
b. breached the warranty of merchantability.
c. not breached a warranty because he was merely expressing his opinion.
d. breached an express warranty, the warranty of merchantability, and the warranty of
fitness for a particular purpose.
Which of the following are pleadings?
a. Complaint, summons, answer, reply.
b. Interviews, discovery, witness list, arbitration.
c. Summons, depositions, written interrogatories, voir dire.
d. Both (a) and (b).
Collin insures his building for $250,000. At the time of its total loss, the property is
valued at $220,000. Under:
a. an open policy, Collin would recover $220,000.
b. an open policy, Collin would recover $250,000.
c. a valued policy, Collin would recover $220,000.
d. Both (a) and (c).
The remedies of damages and rescission are available for:
a. fraudulent misrepresentation.
b. negligent misrepresentation.
c. innocent misrepresentation.
d. All of the above.
Which of the following would be illegal under the NLRA?
a. Tek Computer Company refuses to allow notice of union meetings to be posted at
work.
b. Tek Computer Company refuses to pay .50 per hour more to union employees.
c. Tek Computer Company fires Billy because he filed charges against the company
with the NLRB.
d. Both (a) and (c)
Which of the following is correct with regard to Article 2A of the Code?
a. Article 2A affords special treatment for consumer leases.
b. Article 2A covers minerals prior to their extraction.
c. All states have now adopted Article 2A.
d. All of these are correct.
Judicial limitations on the employment-at-will doctrine have been based on:
a. contract law.
b. tort law.
c. public policy.
d. All of the above.
Matt tells Ron that the snow boots he is selling are capable of protection at temperatures
of 20° below zero. Ron orders a pair for his trip to Greenland. Upon delivery the box
states “will protect your feet in temperatures down to 30° below zero”. The first
night’s temperature goes down to 27 below. Ron suffers frostbite on all of his toes. Ron
then sues for breach of warranty. What is the result?
a. Breach, because the latter express warranty is valid.
b. No breach because Matt’s statement was merely opinion.
c. No breach because Matt said 20° below zero.
d. No breach because Matt is allowed to be wrong.
Three of the airline companies agree that they will not go any lower than $100 each
way for coast-to-coast tickets. This is:
a. vertical price maintenance.
b. a horizontal group boycott.
c. vertical market allocation.
d. horizontal price fixing.
Harris was awarded $4 million in damages in a malpractice case against Dr. Kelsoe.
The doctor’s attorney filed a motion for a new trial. The motion may be granted if:
a. the damages are excessive.
b. the verdict was against the weight of the evidence.
c. the trial was unfair.
d. All of the above.
Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip
to Canada. The contract was made on April 1 with the trip to begin on June 1. On May
1, Kevin notified Jim that he had changed his mind and would be unable to make the
trip. He also refused to pay Jim any compensation. In this situation:
a. because the contract is executory, Jim has suffered no damages, and Kevin has no
obligation to pay any compensation.
b. Kevin has anticipatorily repudiated the contract and is liable to Jim for damages.
c. Jim may wait until June 1 to see if Kevin will perform his contractual duties and, if
he does not, there is a material breach.
d. Both (b) and (c).
The majority of states follow the __________ rule in awarding damages for fraud.
a. benefit-of-the-bargain
b. out-of-pocket
c. liquidated
d. restitution
Each trust has which of the following?
a. Executor.
b. Corpus.
c. Testator.
d. All of the above.
Sarah has a checking account at First Bank. Orrin steals one of her blank checks, writes
a check for $250, and then forges Sarah’s signature. He then presents the check to First
Bank for payment. First Bank pays the forged instrument. Which of the following
statements is correct?
a. First Bank will have to recredit the $250 to Sarah’s account if she so requests.
b. First Bank can collect the $250 from Orrin if they can find him and he has the money.
c. Sarah is primarily liable on the check even if she did not sign it and was not negligent
in allowing Orrin to take the blank check.
d. Both (a) and (b).
The most customary type of dividend is a:
a. stock dividend.
b. cash dividend.
c. property dividend.
d. liquidating dividend.
Much of federal, state, and local law in this country has been established by
__________, which people label as the “fourth branch of government” because they
possess tremendous power.
a. executive committees
b. administrative agencies
c. the courts
d. legislatures, including Congress
For purposes of Section 16(b) of the 1934 Securities Exchange Act, which of the
following are NOT “insiders”?
a. Shareholders owning more than 10 percent of the stock of a corporation listed on a
national stock exchange or registered with the SEC.
b. Directors.
c. Officers.
d. None of the above.
A gift causa mortis is a gift:
a. made by a donor after death in her will.
b. that is conditional.
c. made in the contemplation of the donor’s imminent death.
d. Both (b) and (c) are correct.
Which of the following defenses does not apply to discrimination based on race?
a. A bona fide seniority system.
b. A professionally developed ability test.
c. A bona fide occupational qualification.
d. None of the above.
To protect the obligor or the public interest, some contract rights are not assignable.
Once a plaintiff has established a prima facie case of discrimination on a disparate
treatment theory, and the defendant has articulated a legitimate and non-discriminatory
reason for the discrimination, a plaintiff may still win.
The only employees who are agents of their employers are those authorized to contract
on behalf of their employers.
An employer must notify a job applicant or current employee that a credit report may be
used and must obtain the applicant’s consent prior to requesting an individual’s credit
report from a credit bureau.
A lessee under a consumer lease and a buyer under a sale of goods are provided with
the same protections against unconscionability under the UCC.
Mr. Chickilini is a surety for Wayne on a debt owed to Melvin. If Wayne fails to pay,
what is Mr. Chickilini’s defense to avoid payment of the debt?
The Justice Department’s and states’ settlement with Microsoft, affirmed by the D.C.
Circuit Court of Appeals in 2004, allowed Microsoft to remain one company and,
among other things, allowed Microsoft to keep confidential the programming interfaces
that its products rely on to link to Windows code.
Title insurance policies may be issued to protect the interests of mortgagees or tenants
of property.
The ‘but for’ test is useful when two or more forces, each of which is sufficient to bring
about the harm in question, are actively operating.
States are uniform in their identification of transactions that give rise to dissenters’
rights.