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1) which of the following do a certified check and a cashiers check have in common?
a.the bank is primarily liable on each.
b.the bank is secondarily liable on each.
c.both are drawn by the bank on itself.
d.technically, the bank is not liable to a holder of either kind of check.
2) which of the following conditions can prevent additional terms from becoming a part
of a contract formed between parties who are merchants?
a.there is a grumbling acceptance by both parties.
b.the contract is regarding the sale of goods.
c.the offer expressly limits acceptance to its own terms.
d.there additional terms would not materially alter the contract.
3) s agrees to sell b 10,000 widgets at a price of $1.00 per widget. after b breaches the
contract, s resells the widgets for $0.90 per widget. however, this costs s an additional
$100 in sales commissions. s saved $200 in shipping costs as the new customer was
located closer to its factory. what amount can s recover from b?
a.$900
b.$100
c.$1,100
d.$1,000
4) which of the following is not a remedy that may be pursued by a tenant for a
landlords breach of implied warranty of habitability?
a.action for damages
b.termination of the lease
c.rent abatement
d.appeal an injunction by the landlord
5) which of the following is an accurate statement about the privacy act of 1974?
a.it bars administrative agencies from gathering information about private citizens
unless the agencies have obtained a court order justifying the information gathering.
b.it is frequently used by public interest groups to obtain information useful to the
advancement of their public causes.
c.it ensures that every portion of every meeting of an agency shall be open to public
observation.
d.it allows persons to inspect files kept on them by administrative agencies and to
request corrections of erroneous or incomplete information.
6) amanda is a shareholder of abec corporation. she received an illegal dividend from
abec. must she return that dividend to abec?
a.yes, but only if she was aware that the dividend was illegal.
b.yes, regardless of whether she was aware that the dividend was illegal.
c.no, once a dividend has been distributed, it may not be recalled.
d.no, a shareholder has no liability regarding distributions from the corporation.
7) which of the following issuers must register securities with the sec under the 1934
act?
a.an issuer with total assets of $12 million, whose debentures are traded in interstate
commerce and are held by 600 holders.
b.an issuer with total assets of $9 million, whose stocks are traded in intrastate
commerce and are held by 700 holders.
c.an issuer with total assets of $14 million, whose debentures are traded in interstate
commerce and are held by 300 holders.
d.an issuer with total assets of $8 million, whose stocks are traded in intrastate
commerce and are held by 400 holders.
8) an employer is most likely to raise the _____ defense for a mixed-motives disparate
treatment claim under title vii.
a.seniority
b.various merit
c.same-decision
d.bfoq
9) patent _____ occurs when a defendant, without authorization from the patentee,
usurps the patentees rights by making, using, or selling the patented invention.
a.assignment
b.licensing
c.infringement
d.violation
10) the clean water act:
a.gives the federal government the primary responsibility for regulating the countrys
waters.
b.lacks provisions for private action by affected citizens or groups of citizens.
c.sets up a permit system for dredging and filling activities in wetlands.
d.allows discharge only of domestic sewage to a publicly owned treatment works.
11) stan hired mason to work as a janitor in stans apartment building. mason was
negligent. he left the floor in the building lobby wet and slippery, without putting up a
warning sign. martha slipped and fell on the wet floor. if stan is liable for this accident,
what is the source of his liability?
a.direct liability
b.vicarious liability
c.strict liability
d.negligent liability
12) tying agreements may be challenged under both:
a.section 1 of the robinson-patman act and section 3 of the sherman act.
b.section 1 of the sherman act and section 3 of the clayton act.
c.section 1 of the robinson-patman act and section 3 of the clayton act.
d.section 1 of the clayton act and section 3 of the sherman act.
13) which of the following has been recognized by the courts as a possible justification
for tying agreements?
a.the seller is a new business in the tied product category.
b.the tying product is not available for purchase without the agreement.
c.the tying agreement involves two separate and distinct items.
d.the seller is the market leader in the tied product category.
14) joe is going on a survival hike in the desert. he goes to a sporting goods store,
describes the hike, and asks the salesman to select suitable hiking boots for him. the
boots the salesman suggests are well made and are appropriate for normal hiking, but
are not suitable for joes planned ordeal. relying on the salesmans selection, joe buys the
boots. after he suffers personal injury because the boots prove inadequate for the
survival hike, joe sues the store. joe can recover under:
a.the implied warranty of merchantability.
b.the implied warranty of fitness.
c.both the implied warranty of fitness and the implied warranty of merchantability.
d.joe cannot sue fro breach because it was his responsibility to select the boots.
15) sklar, cpa, purchased from wiz corp. two computers. sklar discovered material
defects in the computers 10 months after taking delivery. three years after discovering
the defects, sklar commenced an action for breach of warranty against wiz. wiz has
raised the statute of limitations as a defense. the original contract between wiz and sklar
contained a conspicuous clause providing that the statute of limitations for breach of
warranty actions would be limited to 18 months. under the circumstances, sklar will:
a.win because the action was commenced within the four-year period as measured from
the date of delivery.
b.win because the action was commenced within the four-year period as measured from
the time he discovered the breach or should have discovered the breach.
c.lose because the clause providing that the statute of limitations would be limited to 18
months is enforceable.
d.lose because the statute of limitations is three years from the date of delivery with
respect to written contracts.
16) selena pays back a $2,000 loan from her parents within one year before she files the
bankruptcy petition. this is an example of:
a.anticipatory breach.
b.a secured transaction.
c.preferential payment.
d.a failure of consideration.
17) any of the managers in a manger-managed llc may be removed at any time by a
vote of:
a.one third of all llc members.
b.two-thirds of all llc members.
c.a majority of llc members.
d.the board of directors.
18) the marriage provision in the statute of frauds is inapplicable in agreements that
involve:
a.post-nuptial promises.
b.oral one-sided promises of marriage.
c.only mutual promises to marry.
d.pre-nuptial promises.
19) denise contracts with long life insurance co., agreeing to pay premiums in return for
which the company agrees to pay $500,000 to denises husband barn when denise dies.
barn is a(n):
a.creditor beneficiary.
b.donee beneficiary.
c.incidental beneficiary.
d.delegatee.
