Archives: Quiz

A provision in a lease giving the landlord the right to terminate the lease by notice is strictly construed against the tenant. Parol evidence is allowed to show whether an agent has signed in a representative or an individual capacity. […]

Revised UCC Article 3 refers to drawers, indorsers, and accommodation parties as ‘secondary obligors.” Employers may avoid liability for “hostile work environment” sexual harassment by following a program that includes expressing strong disapproval of such conduct, advising employees how to […]

Quasi-contractual liability will generally be imposed when the cost of performing a contract is greater than had been expected. A cured transaction is a pledge of property by the buyer-debtor that enables the seller to take possession of the goods […]

Negotiable instruments are examples of formal contracts. A tenant can claim that there has been a constructive eviction even if the tenant continues to occupy the rented premises. Answer: F In every contract there exists an expressed covenant of good […]

Under the tort of false imprisonment, shopkeepers are prevented from detaining anyone whom they believe has shoplifted. It is worse for the holder to lose order paper than to lose bearer paper. Answer: F A trespass to personal property is […]

The living Constitution has as a characteristic a strong president. The coverage of the Personal Auto Policy (PAP) is limited to claims arising from the “use and operation” of an automobile. Answer: T The Sherman Act applies only to buying […]

Sureties have no rights to protect them from loss, to obtain their discharge because of the conduct of others that would be harmful to them, or to recover money that they were required to pay because of the debtor’s breach. […]

The normal remedy for breach of contract where the plaintiff has suffered a loss is compensatory damages. Consumer protection laws, which commonly regulate the form of consumer contracts, provide that back-page disclaimers are void if the front page of a […]

Wilma was an employee of the Electric Storage Battery Company. She was fired. She claimed that she was fired because she was a member of a labor union. The employer asserted that she was fired because she was a poor […]

Because nonprofit corporations have a more restricted range of powers than business corporations, actions not authorized by the charters of nonprofit corporations are more likely to be found ultra vires. Ordinarily, every party to a contract is presumed to have […]

A franchisor is the person to whom the franchise is granted. Under the majority view, a contract that does not satisfy the statute of frauds is not enforceable. Answer: T Whenever a contract is intended to benefit a third person, […]

Employers are required to give notice to employees that they will monitor their employees’ e-mail. Corporations are entitled to Fifth Amendment protection. Answer: F Civil disobedience is the remedy natural law proponents use to change positive law. Answer: T Unwillingness […]

Today, what is an important element in determining the validity of a contract? a. the Uniform Contract Code b. whether the agreement might harm the public welfare c. whether the contract is wise or foolish d. whether the contract operates […]

The Federal Trade Commission (FTC) has begun to take positions on Internet issues that are: a. tailored to Cyberspace. b. specific to the type of website that has the issue. c. identical to its stances of other types of commerce […]

Trademarks or service marks may be registered if they utilize terms that are: a. suggestive of characteristics of the product or service to which they relate. b. fanciful, arbitrary, or coined. c. descriptive and have acquired a known secondary meaning […]

Consumer leases: a. must always be evidenced by a writing. b. are always three- party transactions. c. require the lessor to make all usual warranties made by a seller in a sale of goods.. d. all of the above. Federal […]

In most states, __________ provides that a security interest in a non-inventory motor vehicle must be noted on the vehicle title registration. a. a non-Code statute b. UCC Article 2 c. UCC Article 9 d. judicial precedent The Fair Credit […]

The United States constitution places the most significant limitations on administrative investigation in the area of: a. search and seizure of the person. b. aerial inspection. c. search and seizure of papers and records. d. guarantee against self-incrimination. When a […]

The RMBCA provides that shareholders: a. have no preemptive rights unless the articles of incorporation so provide. b. have preemptive rights regardless of what the articles of incorporation provide. c. cannot have preemptive rights. d. only have preemptive rights with […]

Which of the following is part of an administrative agency’s power to investigate? a. an investigation to determine whether additional administrative rules need to be adopted b. an investigation to ascertain facts with respect to a particular suspected or alleged […]

A corporate officer, while still employed by his or her firm, may be in breach of the officer’s fiduciary duty of __________ by recruiting key management employees to join a competing company. a. obedience b. loyalty c. conflict of interest […]

The parol evidence rule may not apply if: a. the contract is materially incomplete. b. the parties disagree on the meaning of the contract. c. there is no ambiguity regarding the terms of the contract. d. one party is unable […]

Initially, ratification is a question of: a. intention. b. consideration. c. form. d. implication. What is the primary function of the National Labor Relations Board? a. to mediate labor-management disputes b. to decide unfair labor practice cases brought before it […]

Which of the following scenarios would not qualify as a bona fide occupational qualification exception to Title VII? a. a religious school hiring only members of that religion to teach religion b. a women’s store that sells wedding gowns hiring […]

A subpoena to testify or to produce records: a. is prohibited by the constitutional guarantee against unreasonable searches and seizures. b. is an illegal attempt to gain information by compulsion. c. cannot be opposed on the grounds that such a […]

A consignment sale is treated as a(n) __________ under UCC Article 2, and the dealer-consignee has full authority to sell the goods for the consignor and can pass title to the goods. a. ordinary sale b. final sale c. sale […]

If an insured person tells her current husband that she is going to name him as beneficiary of her life insurance in place of her former husband and dies a year later without having taken any further steps with respect […]

__________ of the federal environmental laws carry criminal penalties for violations. a. All b. Most c. Very few d. None In which of the following scenarios is the agent exposed to the greatest risk of liability? a. disclosed principal and […]

The effectiveness of an exception to coverage is limited by: a. strictly interpreting the exception to coverage against the insurer. b. placing on the insurer the burden of proving that the exception applies. c. both a. and b. d. neither […]

Which of the following is an example of an improper payment? a. A payment made after a letter of credit has expired. b. A payment made in excess of the amount authorized by the letter of credit. c. Both a. […]

A change of law discharges a contract if the new law: a. requires a license and none was required before. b. requires the use of fireproof materials. c. requires the use of antipollution devices. d. prohibits the act called for […]

A person who did not necessarily commit the crime can still be held criminally responsible for acts committed by others __________. a. only for non-business crimes b. only for business crimes c. both a. and b. d. neither a. nor […]

When a drawee bank pays on a check that lacks an essential endorsement: a. the drawer is liable. b. the payee is liable. c. the drawee bank is liable. d. no one is liable. It is lawful to refuse to […]

A wrong that arises from a violation of a private duty is called a: a. criminal action. b. tort. c. crime. d. de mala. The term apparent authority is used when there is: a. no interaction between the principal and […]

Blackmail is defined as: a. giving money to a person to influence that person’s judgment. b. an illegal demand made by a public official. c. an illegal demand made by a nonpublic official. d. providing improper political influence. The type […]

A finding of undue influence would most likely not occur in a contract between: a. parent and child. b. attorney and client. c. neighbor and neighbor. d. guardian and ward. A decedent’s transfer of $10,000 to a trustee, to be […]

The widest range of tort liability arises in the area of: a. negligence. b. absolute liability. c. violation of statute. d. assumption of risk. A depositor issued a check and, after mailing the check, suffered a heart attack and died. […]

The subject matter of a contract may relate to: a. the performance of personal services. b. the construction of a house. c. the transfer of ownership of property. d. all of the above. A contract provision stating that one of […]

A third person who deals with a person claiming to be an agent: a. can rely on the statements made by the agent regarding the extent of the authority. b. cannot ignore any knowledge regarding a limitation of the agent’s […]

The Uniform Durable Power of Attorney Act (UDPAA) changes the general rule that insanity of a principal terminates an agent’s authority to act for the principal. Trespass applies to: a. personal property only. b. land only. c. both personal property […]

Which of the following is a correct legal conclusion regarding reorganization bankruptcy? a. Individuals, partnerships, and corporations in business may be reorganized. b. A plan for reorganization may be filed only by a committee of creditors. c. When a reorganization […]

Unless language or circumstances indicate the contrary, a general assignment is: a. a transfer of property only. b. both a transfer of rights and a delegation of duties. c. a delegation of duties only. d. a transfer of rights only. […]

The U.S. Constitution has been amended: a. only expressly. b. only by interpretation. c. only by practice. d. by all of the ways listed above. Title VII protects members of which racial grouping(s)? a. black only b. black, Native American, […]

Jeff purchased in good faith a warehouse receipt for 1,000 pairs of running shoes without notice of any defense to it, for value, and in the regular course of his business. Unknown to Jeff, the goods had been stolen from […]

Federal regulation of the sale of securities is based on the: a. Securities Act of 1933 and the Securities Exchange Act of 1934. b. Securities Act of 1933 and the Federal Trade Act of 1936. c. Federal Trade Act of […]

Anderson Clock Company is in the business of selling and repairing clocks. Jay purchased a grandfather clock from them. Laurie had left the clock at Anderson’s for a cleaning and calibration. When Laurie found out the clock had been sold, […]

A resulting trust arises from the conduct of the parties. Town Loan Center agrees to loan Sara $1,500, accepting as collateral her car. They put their agreement in writing and sign it. Sara keeps possession of the car. Does Town […]

Lakeside Resort hires Micheline to act as its agent to buy a 1,000-acre waterfront tract of land from Nabil for $1,000 per acre. Lakeside does not want Nabil to know that it is the principal or that Micheline is its […]

An instrument that promises to pay “in goods” can be negotiable. Liability can be imposed on those who are negligent in not discovering fraud in connection with a registration statement or prospectus. Answer: T Few laws directly apply to the […]

Anything that an agent obtains by virtue of the employment or agency relationship is his or hers to keep. In sales law, a warranty is an assurance by the seller or lessor about the quality and features of the goods […]