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Which one of the following is NOT a personal defense?
a. Infancy, to the extent that it is a defense to a simple contract.
b. Breach of contract.
c. Non-delivery of an instrument.
d. Failure of consideration.
Clint induces David, by fraud in the inducement, to make an instrument payable to the
order of Clint. Clint then negotiates the instrument to Erin, a holder in due course. If
Clint later reacquires the instrument from Erin:
a. Clint is a holder in due course.
b. Clint is not a holder in due course, but he succeeds to the rights of one, because of
the shelter rule.
c. Clint does not succeed to Erin's rights as a holder in due course and remains subject
to the defense of fraud.
d. because fraud in the inducement is a real defense, it can be used against both Clint
and Erin.
The Rogers family has always wanted to buy the beautiful house at the top of the hill.
The owners of the house, the Thompsons, decided to sell and called Mr. Rogers. Before
he could get back in touch with Mr. Thompson, Mr. Rogers suffered a heart attack and
died. Mr. Rogers' adult daughter, to whom the Thompsons had not spoken, still wants
the house. She may:
a. not accept, since the offer is terminated.
b. not accept, because she does not have the capacity.
c. accept, since the contract offer is assignable.
d. accept, since the offer cannot be revoked without notice.
The U.N. Convention on Contracts for the International Sales of Goods (CISG)
includes provisions relating to which of the following?
a. Interpretation and trade usage.
b. Intellectual property rights.
c. Obligations and remedies of sellers, but not buyers.
d. Sharing of profits.
If the FTC rules that a seller has made a false or deceptive advertising statement, the
Commission can:
a. do nothing.
b. require the seller to make additional advertisements to correct it.
c. require the company to go out of business.
d. report the company to the President of the United States for deregulation.
Only records specifically exempted from disclosure because of national defense and
security reasons are inaccessible under the FOIA.
a. What is a fee simple?
b. What is a life estate?
c. If Ed grants a life estate to his wife, what interest does he retain? Explain.
Which of the following illustrates a shipment contract?
a. C.I.F.
b. F.O.B. place of shipment.
c. F.A.S. seller's port.
d. All of the above.
To which of the following limitations are the rights of the holder of a copyright subject?
a. Charitable use.
b. Compulsory licenses.
c. Palming off.
d. Both (a) and (b).
Alex sees Mona's ring, and he thinks it is very valuable. He uses physical duress to
cause her to give him the ring, and he quickly sells it to unsuspecting Hanna's Antique
Jewelry Shop for $5,000. A month later, Mona discovers her ring on sale at Hanna's.
Can Mona get the ring back?
a. Yes, since a true owner can always recover her own property.
b. Yes, since Alex had voidable title to the ring.
c. Yes, since Alex had void title to the ring.
d. No, since Hanna was a good faith purchaser for value.
Which of the following results in a void contract?
a. Duress by improper threat.
b. Duress by physical force.
c. Undue influence on a party.
d. Fraud in the inducement.
The common law system is used in:
a. Australia.
b. Latin America.
c. England.
d. Australia and England.
An agreement of a seller to supply a buyer with all of the buyer's requirements for
certain goods is known as:
a. an output contract.
b. a requirements contract.
c. a firm offer.
d. promissory estoppel.
The Trademark Cyberpiracy Prevention Act of 1999:
a. protects the owner of a trademark or service mark from any person who registers or
uses a domain name which, at the time of its registration, is a protected trademark,
word, or name.
b. includes an element of bad faith intent for violators.
c. provides for injunctive relief as the sole remedy.
d. All of the above.
Which of the following is correct with respect to the reasonable person standard?
a. It makes allowance for mental deficiency.
b. It makes allowance for physical disability.
c. It applies an individualized test to children that takes into consideration the child's
age, intelligence, and experience.
d. Both (b) and (c).
A contract was made for 125 bales of cotton to arrive on a ship named "Peerless" from
Bombay. Unbeknownst to either party to the contract, there were two ships named
"Peerless," both of which were sailing from Bombay. One sailed in October and the
other in December. The buyer had in mind the ship sailing in October, but the seller had
in mind the ship sailing in December. Each party held his belief in good faith. When the
goods failed to arrive on time, the buyer sued for breach of contract. In this case:
a. the seller is in breach and must pay damages.
b. the seller is guilty of fraud in the inducement for failing to disclose to the buyer
which ship would contain the goods.
c. no contract exists due to mutual mistake of fact.
d. Both (a) and (b).
Rena employs James, a real estate broker, to find a buyer for her home for a price of at
least $125,000. James has the actual implied authority to contract for the sale of Rena's
home.
The Contract Clause of the Constitution applies only to the actions of state governments
and not to the federal government.
Under the RUPA, a partner in a term partnership who wrongfully dissociates before the
end of a definite term may receive payment of a portion of the buyout price before the
expiration of the term.
Utilitarian notions underlie cost-benefit analysis.
Clarence is the trustee of a trust. With $75,000 of his own money, Clarence purchases a
parcel of real estate. Two months later, he sells the parcel to the trust for $150,000 and
pockets the profit. Discuss the situation in terms of the duties and powers of the trustee.
No apparent authority exists where the third party knows that the agent has no actual
authority.
George offered to paint Catherine's barn for $3,000. Catherine said she would accept
the offer if George would paint the woodshed, too. At this point, they have made a valid
and enforceable contract.
A breach of contract always gives rise to a cause of action for damages by the injured
party.
