Archives: Quiz

The Arizona Supreme Court rules against Jennifer in a case against Kut Rate Stores, Inc. Jennifer wants to appeal her case to the United States Supreme Court. She must ask the Court to issue a writ of a. appeal. b. […]

Sights Unseen, Inc., (SUI) sells telescopes with distinctively designed lenses and mirrors. Later, without SUI’s permission, Telescopes Etc. Corporation begins to sell scopes with identical structures of lenses and mirrors. This is most likely a. copyright infringement. b. patent infringement. […]

Lather Up Soap Products Company grants its agent Kathy an exclusive territory in which to sell Lather Up products. The firm cannot compete with Kathy in that territory under the principal’s duty of a. avoidance. b. cooperation. c. indemnification. d. […]

Daria writes a check for $100 drawn on Village Bank and presents it to Fast Cash, Inc., for payment. If the check is not backed by sufficient funds, Daria may be prosecuted for a. forgery. b. fraud. c. negligence. d. […]

Larceny relies on fear and force. Hu believes that he is a victim of a form of employment discrimination that falls under Title VII of the Civil Rights Act. Compliance with this statute is monitored by a. employees and job […]

An agent will not be authorized to act for a principal unless he receives some consideration for the task. a. True b. False Contractual incapacity excuses a minor from an obligation to pay for necessaries. a. True b. False Answer: […]

Contracts of a ward may be ratified by his guardian during the period of guardianship. a. True b. False Actual notice requires a written, not oral, communication to the third party. a. True b. False Answer: False A composition would […]

A __________ is a law establishing a maximum rate of permissible interest for which a lender and borrower of money may contract. a. wager b. usury statute c. Sunday statute d. None of these. The final arbiter as to the […]

In the majority of states, in a case of negligence per se, the plaintiff would only have to prove violation of a statute in order to show negligent conduct. a. True b. False Under the informal rulemaking procedures of the […]

Stan doesn’t like having neighborhood teenagers walk across his yard at night. He rigs an animal trap on the path the teenagers usually use to cross his land. One night, Tim and his friends are walking across the yard when […]

A depositary bank is any bank handling an item for payment. a. True b. False Lucille bought a new lawn mower on sale at a local discount store. The mower did not come with an instruction book nor did it […]

Federal trademark protection may be obtained for the symbol of the U.S. flag. a. True b. False A registration statement becomes public immediately on filing with the SEC, but a prospectus only becomes public upon signature of the chief financial […]

A partner has implied authority to hire and fire employees whose services are necessary to carry on the partnership business. a. True b. False Almost all jurisdictions require that: a. express trusts of real property be in writing. b. trusts […]

A person who owes a duty under a contract is an obligee. a. True b. False Ed signs a ten-year lease with a survival clause. If Ed is evicted after two years, he will have to pay: a. rent for […]

Which amendment prohibits the government from depriving any person of life, liberty, or property without due process of law? a. First. b. Fifth. c. Fourteenth. d. Both (b) and (c). e. All of these. A voting trust permits a concentration […]

The UPA provides that partners are __________ liable on all debts and contract obligations of the partnership. a. jointly b. strictly c. jointly and severally d. partially The powers of a trustee are determined solely by the trust instrument. a. […]

Which of the following is NOT true about Social Security? a. The purpose is to provide full retirement to almost all employees. b. Employers and employees share the cost of contributions for the employees benefit. c. Self-employed individuals pay the […]

Every indorsement is either blank or special. a. True b. False All methods of alternative dispute resolution, such as arbitration, mediation, conciliation, and negotiation, involve a third party to help resolve the dispute. a. True b. False Answer: False Regarding […]

Paper payable “on demand” fails the test of negotiability in that it does not contain a specific time. a. True b. False The implied warranty of habitability: a. is a warranty that the land is well maintained. b. is a […]

Andrew agreed to exchange something clearly without value to enter a contract with Milt. The contract will not fail for lack of consideration because, if the parties agree to the exchange, the courts will not be concerned about whether the […]

As the result of a seller’s breach, a buyer may ask for incidental damages. Incidental damages include costs incurred in: a. storing goods in a warehouse. b. making calls to obtain replacement goods. c. inspecting the goods. d. All of […]

An important and fundamental part of administrative law is the limits imposed by judicial review upon the activities of administrative agencies. a. True b. False Agency relationships are governed primarily by federal statute. a. True b. False Answer: False Under […]

Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip to Canada. The contract was made on April 1 with the trip to begin on June 1. On May 1, Kevin notified Jim that […]

Which of the following is the basic governing document of a corporation? a. A subscription. b. A charter, after filing. c. The set of bylaws. d. A certificate of authority. A patent would be appropriate in all but which one […]

All but which one of the following would be exempt from bankruptcy under the federal law? a. $500 received in child support. b. A $300 cocktail ring. c. A $200 cashmere sweater. d. A $10,000 truck. In the presence of […]

The RCRA was enacted by Congress: a. to provide a comprehensive scheme of treatment for hazardous solid waste. b. and established a manifest system to be used by generators. c. and gave states the primary responsibility for hazardous waste. d. […]

In general, an undisclosed principal and the third party to a contract are contractually bound if the agent acts within the scope of his actual authority in making the contract. a. True b. False Neal is the young, likable, optimistic, […]

At the __________, the accused is informed of the charge against him and he enters his plea. a. preliminary hearing b. arraignment c. indictment d. information A “merchant” is defined as a person who: a. is a dealer in a […]

Rorzex, Inc. entered into a contract with Denzil under the terms of which Denzil would receive $20,000 if he stole trade secrets from the leading competitor of Rorzex. Denzil performed his end of the agreement by delivering the trade secrets. […]

Like domestic law, international law can be easily enforced, because international courts have compulsory jurisdiction. a. True b. False If a person with a mental condition that impairs her ability to act in a reasonable manner enters a contract that […]

An indenture is not a debt agreement. a. True b. False The purpose of Article 2 of the UCC is to modernize, clarify, simplify, and make uniform the law of sales. a. True b. False Answer: True Apparent authority is […]

Few obstacles to recovery in warranty cases present serious problems to plaintiffs in strict liability actions brought pursuant to Section 402A because this section was drafted largely to avoid such obstacles. a. True b. False Since 1976, the Food and […]

Dan, an agent for Ramona, sees what he thinks is a good deal for Ramona. Without asking whether he has authority to negotiate the deal, Dan enters into a contract on Ramona’s behalf. Ramona says later that she isn’t interested. […]

A gratuitous assignment is revocable by the assignor. a. True b. False SEC regulations concerning fraud in securities transactions apply to: a. all securities transactions involving interstate commerce. b. only securities registered under the 1934 Act. c. only securities registered […]

The board of directors of a corporation: a. determines the capital structure and financial policy of the corporation. b. receives no salaries for services, although directors may receive a fee for attending board meetings. c. has the power to bind […]

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 […]

Which of the following may be used to redress the ultra vires acts committed by a corporation? a. Proceeding by shareholders for an injunction. b. Suit by the corporation or shareholders derivatively against present or former directors or officers for […]

Grandfather conveyed to Erin the right to the family farm after her grandmother dies. This is called: a. a possibility of a reverter. b. a reversionary interest. c. a vested remainder. d. a contingent remainder. Yukon Corporation purchases 1,000 shares […]

Which of the following would ordinarily NOT be considered a security under the federal securities laws? a. Bonds. b. Stocks. c. Investments in limited partnerships. d. An investment in a nonprofit venture based on one’s own entrepreneurial efforts. Shareholders normally […]

NAFTA establishes a free trade area between the United States and Mexico but not with Canada. a. True b. False Section 14(e) of the Securities Act of 1934 makes it unlawful for any person to: a. make any untrue statement […]

A condominium differs from a cooperative in that a tenant in the latter: a. rents his apartment from the cooperative. b. owns his apartment in cooperation with corporate owner. c. owns all the space except the common areas. d. owns […]

Defenses of absolute, conditional, and constitutional privilege apply to defamation and also to publication of any matter that is an invasion of privacy. a. True b. False Federal registration of a mark under the Lanham Act: a. permits the registrant […]

Carlie contracted to purchase an entertainment center while she was 16. She can ratify the contract the following year. a. True b. False A quorum for the United States Supreme Court consists of any three justices. a. True b. False […]

A person cannot be guilty of trespass unless he or she intended to violate the other’s rights. a. True b. False Estoppel may create a corporation. a. True b. False Answer: False The right of a surety who has paid […]

The burden of proof in a criminal case is preponderance of the evidence. a. True b. False In most states, determining what is a reasonable time for disaffirmance depends on circumstances rather than a statutorily prescribed time period. a. True […]

The Federal Trade Commission Act allows the FTC to: a. determine what constitutes deceptive advertising practices. b. prohibit all advertising in certain professions. c. require advertisers to contribute to a fund to reimburse injured consumers. d. require the independent testing […]

In 2006, the SEC abolished the requirement that a registration statement disclose compensation paid to senior executives and directors. a. True b. False The Weichert Co. Realtors v. Ryan case found that the parties formed an express contract by mutually […]

The right of a shareholder to examine the books and records of the corporation may be denied if the shareholder: a. seeks information to determine the financial condition of the corporation. b. desires to know the value of shares. c. […]

A partnership agreement should include all but which one of the following? a. The duties of the partners. b. The capital contribution of the partners. c. The agreement for dividing tax liability of the partnership. d. The division of profits […]

Garnett, who was driving too fast for conditions, collided with a truck carrying explosives. The truck was unmarked, so Garnett had no way of knowing what it contained. The collision caused an explosion, which shattered glass in a building a […]