Both design and manufacturing defects can subject a manufacturer or seller to products
liability.
a. True
b. False
Bearer paper runs to whomever is in possession of it.
a. True
b. False
The Clean Water Act requires the EPA administrator to do what, regarding new sources?
a. Establish federal standards of performance that reflect the greatest degree of effluent
reduction achievable through application of the best available control technology.
b. Modify standards to reflect effluent limitations for existing sources.
c. Identify state waters that will not meet the Act’s requirements.
d. All of these.
Substantive law establishes the rules for enforcing rights that exist in a society.
a. True
b. False
An instrument representing an interest in real property created to secure repayment of
the debt is called a:
a. warranty deed.
b. foreclosure.
c. mortgage.
d. default judgment.
After an amendment to the corporate charter has been approved, it must be filed with
the Secretary of State.
a. True
b. False
In which of the following situations would a landowner NOT have liability to a
trespasser?
a. Where the landowner has rigged up a trap to injure anyone coming onto the property
without permission.
b. Where a landowner next to a nursery school has an unfenced swimming pool and a
trespassing child drowns.
c. Where a trespasser trips over some lawn furniture in an unlighted backyard.
d. The landowner would have liability to a trespasser in all of these situations.
Actionable fraud would be likely to be based on falsity of:
a. a car owner’s statement that, “This car is the best buy you will find.”
b. a realtor’s statement that, “The contractor used 25year warranted shingles on the
roof.”
c. an art dealer’s statement that, “This painting will increase in value.”
d. a stockbroker’s statement that, “This stock should double in price within six months.”
Edward writes to Judy, who is in the business of purchasing goods for others, telling her
to purchase certain goods and ship them to him. Before answering Edward’s letter, Judy
does as directed and charges the goods to Edward. Judy was not authorized to do this
because an agency relationship did not yet exist between Edward and Judy.
a. True
b. False
A gratuitous assignment is generally valid and enforceable.
a. True
b. False
Even if it has been lawfully and properly declared, a stock dividend may be revoked
unless it has been actually distributed.
a. True
b. False
In what way or ways are situational ethics and ethical relativism similar?
a. They both look to a central authority or set of rules to guide ethical decision-making.
b. They both assess each separate act according to whether it maximizes pleasure over
pain.
c. They both judge actions from the perspective of the person who actually made the
judgmet.
d. All of these are true.
For a memorandum to be incorporated into a will, which of the following conditions
must be met?
a. It must be in writing.
b. It must be in existence when the will is executed.
c. It must be adequately described in the will.
d. All of these.
Murphy and her child, who are both Caucasian, are seeking an apartment. Murphy is
not married and never has
been. Grant owns an apartment complex with 8 units ready to rent. Grant will not be
violating any laws by his refusal to rent to Murphy and her child on the basis that
Murphy is a single, unwed mother.
a. True
b. False
Parker agrees to sell to Thompson 500 bushels of soybeans at $6 per bushel. Without
the fault of Parker or Thompson, 200 bushels are destroyed. Thompson must take the
remaining 300 bushels and pay Parker $1,800.
a. True
b. False
An ordinary bailee becomes liable to the bailor for any loss or injury to the goods,
regardless of the cause and without regard to the question of his care or negligence.
a. True
b. False
A partnership interest:
a. is personal property that may be assigned without dissolving the limited partnership.
b. may be assigned to a person who then becomes a partner.
c. may not be assigned without dissolving the limited partnership.
d. may not be assigned unless this right is specifically provided for in the partnership
agreement.
A ‘short-form merger” requires shareholder approval of both corporations.
a. True
b. False
Under the Magnuson-Moss Warranty Act, a seller who makes a written warranty cannot
disclaim any implied warranty.
a. True
b. False
In a partnership of A, B, and C, A commits fraud which creates a $9,000 liability to the
partnership. If the three partners share profits and losses equally, A’s liability to the
partnership for his fraudulent act is $3,000.
a. True
b. False
The Civil Rights Act of 1991 provides that all victims of intentional discrimination,
except victims of disparate impact, can recover compensatory and punitive damages.
a. True
b. False
Answer the following:
a. What powers does a corporation normally possess?
b. What is the doctrine of ultravires? What is the effect of an ultravirescontract?
Which of the following would NOT constitute scienter contributing to liability under
Rule 10b-5?
a. Negligent conduct
b. Intentional conduct
c. Reckless disregard for truth
d. Knowing conduct
Carlos ordered an aluminum storm door for $249.99. Before it was delivered, the same
store from which he ordered the door ran an ad in the paper for the same storm door at
$179.99. Carlos calls the store and demands the advertised price. If the store agrees:
a. Carlos must pay $179.99.
b. Carlos must pay $249.99.
c. there is no contract.
d. there is a contract for the reasonable value of the door.
State trial courts of general jurisdiction:
a. may be called county, district, common pleas, or superior courts.
b. have a dollar limitation on their jurisdiction in civil cases.
c. cannot hear criminal cases.
d. maintain no formal records of their proceedings.
For a mark to be protected under federal law, it must be registered with the Patent and
Trademark Office.
a. True
b. False
Under the Statutory Close Corporation Supplement to the MBCA, a close corporation
must have bylaws on file with the Office of the Secretary of State or some other public
office.
a. True
b. False
Chapter 3 of the Bankruptcy Code deals with:
a. the meetings of creditors.
b. proof of claims.
c. priority of claims.
d. debts of farmers
Mary cleaned her dorm room in the spring and left a pile of books in Sara’s room. Mary
told everybody that the books were a gift to Sara. Does Sara have to dispose of them?
a. Yes, because there was a present intent and delivery
b. Yes, because they are constructively in Sara’s possession
c. No, because Sara did not accept the books
d. No, because there was no agreement between the two parties
Two of the factors that are taken into consideration in determining the scope of liability
for negligent conduct are foreseeability and superseding cause.
a. True
b. False
The Civil Rights Act of 1964 would scrutinize which of the following situations?
a. A woman engineer was denied a job for which she was qualified.
b. A short man was denied employment as a busboy.
c. A two-man partnership with two employees refused to hire a qualified black attorney.
d. A black woman was hired as a secretary instead of an equally qualified white woman.
Kohlberg observed that people progress through stages of moral development according
to the major variables of:
a. age and education.
b. age, economic status, and peer influence.
c. education and family guidance.
d. religion, education, and the influence of peers and family.