The National Conference of Commissioners on Uniform State Laws adopted the
Uniform Internet Act to answer questions pertaining to electronic transactions such as
airline tickets purchased online.
A causa mortis gift may be revoked any time before the donor’s death and is
automatically revoked if the donor recovers.
State courts have the power to hear all cases not within the exclusive jurisdiction of the
federal court system.
In a partnership, income of the business is personal income and business losses can be
deducted from taxes.
A party who is primarily liable on an instrument must pay the stated amount when it is
presented for payment and make the payment without resorting to any other party.
Under the Privacy Act a federal agency may not disclose information about an
individual to other agencies or organizations without that individual’s written consent.
There is no right of appeal from a decision of an administrative law judge.
Under the UCC a delay in delivery is not a breach of contract in circumstances in which
performance has been made impracticable because a contingency has occurred that was
not contemplated when the parties reached an agreement.
Under the mirror-image rule, the terms of an acceptance must be the exact same terms
as the offer.
An S corporation is an unincorporated business that is taxed like a partnership with the
limited liability of a corporation.
Today’s law of contracts originated from judicial decisions in _____.
A. France
B. Italy
C. Spain
D. England
E. Switzerland
Because their contracts are _____, minors have the right, until a reasonable time after
reaching the age of majority, to _____, or avoid, their contracts.
A. void; disaffirm
B. void; affirm
C. void; resist
D. voidable; disaffirm
E. voidable; affirm
Steven knows that his dog has bitten several people. Cindy comes to visit him but
Steven does not tell her about the dog’s propensities. Unfortunately, the dog nips Cindy
and she is required to have some stitches in her ankle. Which of the following is the
most likely result if Cindy sues Steven?
A. Cindy will win on a negligence theory.
B. Cindy will win on both a negligence and strict liability theory.
C. Cindy will lose because she did not incur serious injuries.
D. Cindy will lose because she assumed the risk of injury by coming near the dog.
E. Steven will lose because of the assumption of the risk doctrine.
A contract that supplies the minor with the basic needs such as food, clothing, and
shelter is called _____.
A. a unilateral contract
B. an implied contract
C. a contract for a necessary
D. a ratification
E. a contract of adhesion
What type of speech does the First Amendment not protect?
A. Only defamation.
B. Only obscenity.
C. Only commercial speech.
D. Defamation, obscenity, and commercial speech.
E. Defamation and obscenity.
Four Paws Protection. Congress set up a new agency to more closely regulate testing of
personal and cosmetic products on animals. Legislation was passed naming the agency
the “Animal Protection Commission,” and setting forth the function of the agency and
its specific powers. Congress provided the agency with the power to make rules,
investigate violations, and adjudicate charges of wrongdoing. The agency proceeded to
properly give notice and issue rules. The rules provided for civil as well as for criminal
penalties. Agency personnel issued an order for Fluffy Shampoo Corporation to attend a
hearing regarding its animal testing and to bring to the hearing all company documents
pertaining to animal testing. Fluffy Shampoo resisted on the basis that the agency had
no power to compel its attendance at a hearing or to require it to provide any
documents. Fluffy Shampoo also claimed that criminal penalties may not flow from
violation of agency rules. The agency proceeded to issue a ruling that Fluffy Shampoo
cease all activity based upon its refusal to cooperate. Which of the following is true
regarding the claim of Fluffy Shampoo that the agency had no power to compel
attendance and the provision of documents?
A. Fluffy Shampoo is correct because while the agency had the right to request
voluntary compliance and refer Fluffy Shampoo to law enforcement if Fluffy Shampoo
would not voluntarily comply, the agency had no power to require compliance.
B. Fluffy Shampoo is correct in that the agency could not require the provision of
documents, but incorrect regarding the power of the agency to require attendance at a
hearing.
C. Fluffy Shampoo is correct in that the agency could not require attendance at a
hearing, but incorrect regarding the power of the agency to require the provision of
documents.
D. Fluffy Shampoo is incorrect, and the agency had the power to issue a document
called a subpoena requiring attendance at a hearing and a document called a subpoena
duces tecum requiring that Fluffy Shampoo bring specified documents to the hearing.
E. Fluffy Shampoo is incorrect, and the agency had the power to issue a document
called a certified order requiring attendance at a hearing and a document called a
summons requiring that Fluffy Shampoo bring specified documents to the hearing.
Wrong Deck. Penny hires Jackson to paint her back deck on her house. She agrees to
pay him $200 for the job, and he accepts, sight unseen. They enter into the agreement
on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither
Penny nor her neighbor is at home. He mistakenly paints the neighbor’s deck. Penny
calls him the next day and asks him why he did not paint her deck. He informs her that
he did paint the deck. It is then discovered that he mistakenly painted the neighbor’s
deck. Penny tells him not to worry because the neighbor will be required to pay him.
Jackson says that if the neighbor does not pay, then he expects all of his funds from
Penny. Which of the following is correct regarding Penny’s assertion that the neighbor
will be required to pay Jackson?
A. She is correct. The neighbor will be required to pay Jackson under a theory of
quasi-contract.
B. She is correct. The neighbor will be required to pay Jackson based upon an
implied-in-fact contract.
C. She is correct. The neighbor will be required to pay Jackson based upon an
implied-in-law contract.
D. She is correct. The neighbor will be required to pay Jackson based upon an express
contract.
E. She is incorrect. The neighbor will not be required to pay Jackson.
Which of the following contracts are usually voidable?
A. Contracts entered into as a result of fraud.
B. Contracts entered into as a result of duress.
C. Contracts entered into as a result of undue influence.
D. Contracts entered into as a result of fraud or duress, but not undue influence.
E. Contracts entered into as a result of fraud, duress, or undue influence.
Which of the following is presumed to be a reasonable amount of time when
considering whether an offer has expired?
A. Forty-eight hours.
B. Seven days.
C. Thirty days.
D. Forty-five days.
E. There is no set amount of time, and what constitutes a reasonable amount of time
varies depending upon the subject matter of the offer.
Which of the following is true regarding the law of negligence in Germany?
A. It is the same as the law of negligence in the United States.
B. It focuses only on conscious negligence.
C. It focuses only on unconscious negligence.
D. Courts distinguish between conscious and unconscious negligence with defendants
who have engaged in only conscious negligence being found not guilty.
E. Courts distinguish between conscious and unconscious negligence with defendants
who have engaged in only unconscious negligence being found not guilty.
Convertibles. Barry, a new car dealer, advertised that a new brand of convertible called
Wind would be available at his dealership for the price of $10,000 each. He had only
three Wind vehicles, however; and when those were sold, he tried to convince shoppers
to purchase a much more expensive new convertible at a price of $25,000. Kathy, a
customer who decided to purchase one of the more expensive vehicles needed financing
in order to do so. She had $10,000 to pay on the car and sought a loan from ABC Bank
for the remainder. She wanted the loan for a specific amount of time. ABC Bank offered
her the loan and she agreed. The only information she received from ABC Bank was
confirmation that she borrowed $15,000 at an 8% interest rate. After receiving several
complaints, the Federal Trade Commission disapproved of Barry’s action in regard to
the Wind vehicles. Claiming that his advertisement was misleading, the Commission
proceeded to issue a cease-and-desist order prohibiting deceptive advertising involving
Wind vehicles and also in regard to any other vehicles Barry offered for sale. Under the
Truth in Lending Act what type of information should Kathy have received from ABC
Bank?
A. The total amount financed; and the number, amount, and due dates of payments.
B. The total amount financed; the number, amount, and due dates of payments; and the
bank policy in the event of a delinquency.
C. The total amount financed; the number, amount, and due dates of payments; and the
bank’s policy regarding selling loans to other financial institutions.
D. The total amount financed; the number, amount, and due dates of payments; the bank
policy in the event of a delinquency; and the bank’s policy regarding selling loans to
other financial institutions.
E. Only the information she received.
Which of the following is the reason the Uniform Commercial Code was drafted?
A. Different states had different laws governing contracts that did not result in a smooth
flow of interstate commerce.
B. Some states had no law governing contracts.
C. Federal law governing contracts was difficult to apply.
D. The Uniform State Act on laws was not working.
E. The Restatement of the Law Second, Contracts was not being evenly and fairly
applied.
A violation of a building code is an example of which of the following offenses?
A. Insignificant offenses.
B. Felony.
C. Petty offenses.
D. Tort offenses.
E. Any business related crime.
Styling Shenanigans. Candy, who operated a hair and nail salon called “Up Sweep,” had
a crush on Bruce, a stylist there. He paid her no attention. Finally, Candy told him that
to get her approval of his new blow dryer request, he needs to take her on a date and
give her a kiss. Bruce reluctantly did so. When they returned to work, Candy proceeded
to make suggestive comments to Bruce in front of other employees and to request that
he rub her shoulders. When she passed Bruce’s station, she would caress him while he
worked. Candy also decided that Robert was cute, and she showered him with the same
type of attention. Robert enjoyed the attention, but Bruce was offended and filed a
claim against Candy for sexual harassment. Bruce asked Robert to join in on the claim.
Robert said that it personally never bothered him; but that if Bruce can collect, then he
wants in on the action. Bruce told Robert that he is going to see a psychologist to
substantiate his claim and that Robert should consider doing likewise. Robert tells him
that he has no interest in seeing a psychologist but that his case is as strong as Bruce’s.
Robert says that while he found Candy entertaining, in all fairness, he should be able to
recover if Bruce does so. What type of harassment was involved in Candy’s indication
to Bruce that if he wanted a new blow dryer, then he needed to take her out on a date?
A. Quid pro quo
B. Hostile work environment
C. Sexual annoyance
D. Quid pro quo, hostile work environment, and sexual annoyance
E. Quid pro quo and hostile work environment, but not sexual annoyance
Which of the following is an exception to the rule that administrative searches usually
require search warrants?
A. The administrative exception
B. The reasonable-search exception
C. The pervasive-regulation exception
D. The compelling-need exception
E. The controlling-principle exception
Bank teller Ben receives $1,000 from a customer for deposit into the customer’s bank
account. Instead of placing the money into the customer’s account, Ben puts it into his
pocket. Which of the following offenses has he committed?
A. Forgery
B. False entries
C. False token
D. Embezzlement
E. Both false token and embezzlement
When a party to a contract performs a contractual obligation, that party will receive
_______________________.
A. consideration
B. acknowledgement
C. approval
D. accord
E. accession
A ______ corporation is a corporation created by the government to help administer
law.
A. public
B. private
C. closely held
D. domestic
E. publicly held
Which option have most states adopted regarding the rights of third-party beneficiaries
of warranties?
A. That seller’s warranties extend to the buyer’s household members and guests.
B. That seller’s warranties extend to any reasonable and foreseeable user.
C. That seller’s warranties extend to anyone injured by the good.
D. That seller’s warranties do not extend beyond the buyer and the buyer’s immediate
family.
E. That seller’s warranties do not extend beyond the buyer and the buyer’s immediate
family living in the same household.
Which of the following is a doctrine available to defendants whereby a defendant may
avoid liability by establishing that the plaintiff voluntarily and unreasonably
encountered the risk of the actual harm that the defendant caused?
A. Last-clear-chance doctrine.
B. Assumption of the risk doctrine.
C. Contributory negligence doctrine.
D. Res ipsa loquitur.
E. Negligence per se.
Land and everything permanently attached to it are known as:
A. Real property
B. Personal property
C. Absolute property
D. Listed property
E. Fee property
The employer-employee relationship is subject to ____________________.
A. workers’ compensation
B. workplace safety
C. employment discrimination
D. unemployment statutes
E. All of these
Irresponsible Teen. At age 17, in a state in which the age of majority is 18, Sally
purchased a prom dress from Formal Stuff. She wore it to the prom and then attempted
to return it to the store claiming that she was a minor and that she was entitled to a
refund. The dress had clearly been worn and had a purple stain that Sally claimed was
from grape juice. Additionally, a few days before she turned 18, Sally purchased a used
car from Dings and Dents used cars. She had a deal whereby she paid $100 per month
on the car. She drove the car and made payments for fourteen months after she turned
18. Then, she returned the car to Dings and Dents and told them that she wanted all her
money back. Dings and Dents claimed the car was a necessity. Sally and her parents
claimed that the parents were ready and willing to provide a car to Sally and that she
only purchased the car from Dings and Dents because she liked that particular style and
color. When purchases of the dress and car were made, the sellers knew that Sally was
under the age of 18. Which of the following is true regarding Sally’s attempt to return
the damaged dress?
A. In all states Sally has the right to keep the dress and get a refund.
B. In all states Sally must return the dress; but she has a right to a full refund.
C. Regardless of what she does with the dress, Sally has no right to a refund in any
state.
D. In some states Sally would have an obligation of restitution to the store.
E. In all states Sally would have an obligation of restitution to the store.
How can an accommodation party sign an instrument?
A. As a maker
B. As a drawer
C. As an acceptor
D. As an endorser
E. All of these
Dog and Formals. Paul owns a dog grooming business and needs patient people to work
there. He gives all applicants a test he obtained from a management firm that has been
proven to measure psychological traits such as patience. Penny alleges sex
discrimination after she fails the test miserably and Paul refuses to hire her. Paul tells
her that there is no way he is giving her a dime because he is entitled to protect his
client’s dogs. Upon learning that her state lacked a state office representing the Equal
Opportunity Commission, Penny immediately sues him in federal court alleging a
violation of Title VII. Paul, who is getting tired of the dog grooming business, also
opens a new formal wear shop and needs to hire employees there as well. He wants to
appeal to high school and college age young ladies attending proms and formals. Paul
decides that he does not want older sales clerks to assist in choosing formal dresses. He
only wants young, attractive ones. Paul runs an ad in the local paper-seeking applicants
for sales clerks and stating that a qualification for the job is computer training while in
high school. Tina, age 60, applies and tells Paul that while she sees no reason that
computer training should be required, she attended computer training in adult education
and has excellent computer as well as sales skills. Paul refuses to hire her telling her
that unless he follows the ad, he may be seen as practicing discrimination. Deciding that
formal wear is more trouble than dogs, Paul shuts down the formal wear store. Which
of the following is true regarding Paul’s test for patience?
A. Paul is entitled to test so long as the test is not designed, intended, or used to
discriminate; and construct validity references measuring a psychological trait needed
to perform the job.
B. Paul is entitled to test so long as the test is not designed, intended, or used to
discriminate; and credited validity references measuring a psychological trait needed to
perform the job.
C. Paul is prohibited from performing job testing for psychological traits although he
would be allowed to test for other types of skills involving construct validity, such as
word processing, so long as it could be shown that the skill was necessary for the job at
issue.
D. Paul is prohibited from performing job testing for psychological traits although he
would be allowed to test for other types of skills involving credited validity, such as
word processing, so long as it could be shown that the skill was necessary for the job at
issue.
E. Paul is prohibited by Title VII from doing any testing at all.
Which of the following is property that the true owner has unknowingly or accidentally
dropped or left somewhere?
A. Lost
B. Mislaid
C. Discarded
D. Abandoned
E. Terminated
If a contract cannot be performed within one year, the statute of frauds requires that
______________________.
A. the one-year period begins to run the day after the contract is created, not when the
contract is scheduled to begin
B. a contract does not come within the statute of frauds if it could be completed within
one year even if it is highly unlikely that a contract will be completed within one year
C. a contract for lifetime employment does not have to be in writing in order to be
enforceable
D. contracts whose performance, based on the terms of the contract, could not possibly
occur within one-year fall within the statute of frauds
E. All of these are true.
What type of agency is the Federal Trade Commission?
A. Executive
B. Independent
C. Collateral
D. Approved
E. Certified
______________ are exempt employees under the Fair Labor Standards Act.
A. Executives
B. Administrative employees
C. Professional employees
D. Executives, administrative employees, and professional employees
E. Executive and professional employees, but not administrative employees
Which of the following is an advantage of mediation?
A. Only that it helps disputing parties preserve their relationships.
B. Only those parties to mediation have a high level of autonomy.
C. Only that the mediator solves the dispute if the parties are unable to do so.
D. It helps disputing parties preserve their relationships, and also parties to mediation
have a high level of autonomy.
E. It helps disputing parties preserve their relationships, parties to mediation have a
high level of autonomy, and the mediator solves the dispute if the parties are unable to
do so.
____________ is a statement in which a company agrees with the Federal Trade
Commission to stop disputed behavior but does not admit it broke the law?
A. Agreed stoppage
B. Command order
C. Consent order
D. Agreed order
E. None of these because the Federal Trade Commission provides no such option