1) only when the promoter is liable on the preincorporation contract is the other party
liable on the contract.
2) united states-based firms that engage in international business activities must
remember that they could be subject to antitrust complaints in other nations.
3) anyone other than a bank, who purchases a check indorsed for deposit, has converted
it; unless the indorser received the amount paid for the check or the bank deposited the
check in the indorsers account.
4) the preconstruction review process required under the clean air act applies to new
facilities as well as existing facilities that undergo modifications.
5) if the seller does not make a reasonable contract for delivery or notify the buyer and
a material delay or loss results, the buyer has the right to reject the shipment.
6) generally speaking, advertisements are considered to be offers.
7) anne induces bens consent to contract under duress. anne later assigns her rights
under the contract to carl. ben may assert the doctrine of duress against anne as a
ground for avoiding the contract.
8) the robinson-patman act applies to discriminatory acts that occur in trade and
commerce.
9) under the rupa, when the dissociated partner has not wrongfully dissociated and there
is no partnership agreement on the issue, he should be paid within 120 days.
10) under the stakeholder theory of corporate social responsibility, employees interests
are considered.
11) if the seller has justifiably withheld delivery of the goods because of the buyers
breach, the buyer may recover any money or goods he has delivered to the seller over
and above the agreed amount of liquidated damages.
12) tangible property is property that has a physical existence; for example, a car or a
computer is tangible property.
13) the power of eminent domain enables a private citizen to sue neighbours for any
kind of nuisance.
14) a shortcoming of the cercla is that the federal and state governments must bear the
sole financial burden for cleaning up the sites.
15) anticipatory repudiation is disallowed under the ucc.
16) frank, a business law professor who has never sold a car before; sells his 1995
honda civic to wanda. this sale is governed by:
a.the common law of contracts.
b.article 2 of the ucc.
c.article 2a of the ucc.
d.section 208 of restatement (second) of contracts.
17) under the model business corporation act (mbca), a prospective shareholder may not
revoke a preincorporation subscription for a six-month period, in the absence of a
contrary provision in the subscription.
18) _____ affords a remedy for the wrongful institution of criminal proceedings.
a.abuse of process
b.malicious prosecution
c.wrongful use of civil proceedings
d.deceit
19) which of the following statements is true of statutes and statutory interpretation?
a.statutes are easier to interpret than case law.
b.courts begin their interpretation statues with legislative history.
c.there is deliberate ambiguity in the language of statutes.
d.statutes are written in different authoritative forms.
20) x and y have a contract which obligated x to sell y 100 boxes of screws for $100.
the parties orally modify the contract so that x will sell y the same 100 boxes of screws
for $125. the second agreement is:
a.binding because it is due to unforeseeable situation.
b.binding by virtue of being mutually agreed on.
c.not binding because it is an outputs contract.
d.not binding due to the promise of performing a preexisting legal obligation.
21) in a _____ contract, the goods are delivered to the buyer primarily for the buyer’s
use.
a.delivery
b.sale on approval
c.sale or return
d.supply of goods
22) which of the following agreements provides a temporary insurance cover until the
time the insurer decides to accept or reject the applicants application?
a.co-insurance agreement
b.binder agreement
c.indemnity agreement
d.guaranty agreement
23) most defamation cases brought by public official or public figure plaintiffs are won
by the defendant, because the plaintiff was unable to prove:
a.knowledge of falsity.
b.actual malice.
c.reckless disregard for the truth.
d.the actual statements.
24) an ambiguous the offer may be accepted in any manner that is _____ in light of the
circumstances.
a.stipulated
b.authorized
c.recognizable
d.reasonable
25) ordinances are created by:
a.congress.
b.the supreme court.
c.counties.
d.equity courts.
26) the _____ is the preferred form of business for professionals and is especially good
for consultants and auditors, allowing them management flexibility while insulating
them mostly from personal liability.
a.s corporation
b.lllp
c.llc
d.llp
27) abby gets a state court civil judgment against casey, but casey does not pay. which
of the following is one of the tools available to abby to enforce the judgment against
casey?
a.mediation
b.long-arm jurisdiction
c.writ of execution
d.in rem jurisdiction
28) in a “mixed” contract for the sale of both goods and services, the court will apply
the contract rules of the ucc or of the common law, depending on whether:
a.the contract price of the goods portion of the contract is $500 or more.
b.the contract is in writing.
c.the predominant purpose of the contract is goods or services.
d.the parties are both merchants.
29) a newspaper advertisement made to the general public:
a.usually is an offer.
b.can be revoked by using a similar newspaper advertisement.
c.can only be rejected by using a similar newspaper advertisement.
d.is a firm offer that cannot be revoked.
30) a(n) _____ is a cancellation of a contract and a return of the parties to their
precontractual position.
a.injunction
b.ordinance
c.rescission
d.restatement
31) what is the basic objective of the code remedies for breach of contract?
a.to help the injured person recover consequential damages arising from the breach of
contract.
b.to put in place a mechanism that allows for repeat performance of the contract on
modified terms.
c.to help the injured person claim punitive damages arising from the breach of contract.
d.to put the injured person in the same position that he would have been in if the
contract had been performed.
32) negligence per se is a legal rule that established a defendants negligence when:
a.a statute intended to protect persons like the plaintiff has been violated.
b.the defendant intended to harm the plaintiff.
c.the plaintiff intended to harm the defendant.
d.both the defendant and the plaintiff intended to harm each other.
33) the _____ amendment says that no state shall “deny to any person . . . the equal
protection of the laws.”
a.fifth
b.tenth
c.fourteenth
d.sixteenth