Archives: Quiz

The requirement that each party to a contract must intentionally exchange something of value as an inducement to the other party to make a return exchange is known as: a. mutual assent. b. consideration. c. legality of object. d. contractual […]

Community property does not include a ring owned by the wife prior to the marriage. a. True b. False Specific lender usury statutes rather than the general usury statute generally apply to real estate mortgages and small consumer loans. a. […]

An offer is an indefinite proposal made by one person to another. a. True b. False Discuss whether the principal is liable in each of the following situations. a. Patricia hires Andrew, an attorney, to negotiate a contract to purchase […]

The president of Hi-Glow Cosmetics sends his top chemist to Hi-Glow’s competitor’s labs to steal its formula for shiny lipstick. The chemist gets caught and is sent to jail. Can Hi-Glow be found to be criminally liable? a. Yes, under […]

Which of the following is NOT a duty of a collecting bank in the collection process? a. Duty of care. b. Duty to act in a timely manner. c. Duty to honor a valid stop payment order. d. Duty to […]

The RUPA treats a partnership as a legal entity in which one of the following respects? a. Liability of partners for partnership obligations. b. For the purpose of suing or being sued. c. For all purposes. d. Assignment of a […]

Bess, Ray, and Irwin inherited 48 acres of land, which they own as tenants in common. If Bess decides she wants to live on a portion of the land, in order to get clear title to that portion: a. Bess […]

Kelley borrows $3,000 from Paul and orally agrees to repay him in three annual installments. Most courts would hold: a. the oral contract is unenforceable because it cannot be performed within one year. b. Article 2 of the UCC controls […]

Assignments of future wages are subject to statutes that sometimes prohibit them altogether. a. True b. False The doctrine of necessaries applies in the same way to minors and mental incompetents. a. True b. False Answer: True The UPA marshaling […]

The Dodd-Frank Act amends the 1933 and 1934 Acts to require knowledge as the mental state required for the SEC to bring aiding and abetting cases. a. True b. False When delivery is to be made without moving the goods, […]

The court in the Schoenberger v. Chicago Transit Authority case held that: a. the actual authority of an agent may be founded on the acts or words of the agent. b. implied authority is such authority as the principal knowingly […]

The definition of price-fixing includes agreements that may, among other things: a. depress prices. b. stabilize prices. c. raise prices. d. All of these. A type of insurance in which the insured and the insurer share a risk of loss […]

Testamentary capacity refers to: a. the age of the testator. b. the same capacity as required to contract. c. the ability to understand the nature and extent of one’s property, to appreciate the natural objects of one’s bounty, and the […]

The City of Chicago would best be described as which of the following? a. A corporation formed pursuant to the Model Business Corporation Act. b. A close corporation. c. A public corporation. d. A domestic corporation. A maker must sign […]

Under the general rule of the Third Restatement, death of a principal terminates all authority of an agent, including apparent authority, even though no notice is given to third parties. a. True b. False Brian makes a material misrepresentation of […]

Bart sends Carla an offer by express mail. Carla receives it at 10 a.m. on Tuesday. At 11 a.m. on Tuesday, Carla delivers an acceptance to Speedy Mail-to-You Express, Inc., but due to their error, the letter is not sent […]

The right of the buyer to recover from an insolvent seller the goods in which he has a special property interest and for which he has paid, existed at common law before being included in the Code. a. True b. […]

An act that is not wrongful or unfair may constitute duress. a. True b. False Checks, when accepted, are said to be certified. a. True b. False Answer: True The LMRA prohibits the closed shop, although it permits the existence […]

Edward is hired to manage Fred’s business. Which of the following is untrue regarding Edward’s authority? a. Edward has authority to sell a used cash register when he buys a new computerized checkout system for the store. b. Edward has […]

Recovery of damages under Rule 10b-5 requires proof of: a. reliance on a misstatement or omission. b. materiality. c. scienter. d. connection with the purchase or sale of a security. e. All of these. A constitution: a. restricts powers of […]

An estate in fee simple would have which of the following characteristics? a. It may be inherited. b. It may be sold. c. Judgment creditors may levy upon it. d. All of these. Identify the following parties and relationships. a. […]

Most incorporation statutes have adopted an intermediate position regarding the revocability of preincorporation subscriptions, making them irrevocable for a stated period without regard to whether they are supported by consideration. a. True b. False Fraud in the execution is a […]

Whether an agency relationship has been created is determined by using a subjective test. a. True b. False Mark (age 16) appoints Joe (age 21) as his agent to purchase a digital camcorder from Electronic World. The transaction is: a. […]

James threatens to hit Kenneth in the head with a baseball bat unless Kenneth signs a contract agreeing to pay James $400 for his saw. Because of the threat, Kenneth signs the contract. a. This contract is voidable at Kenneth’s […]

Two years of nonuse raises a presumption of abandonment and loss of a federally protected trademark. a. True b. False The Family and Medical Leave Act: a. applies to private employers with 50 or more employees. b. does not apply […]

Which of the following is untrue with regard to the interpretation of contracts? a. Express terms prevail over course of performance, and course of performance prevails over course of dealing. b. Technical terms will always be given technical meaning and […]

A gratuitous assignment is revocable even after the assignor has made an effective delivery of the assignment to the assignee. a. True b. False Congress appoints and removes the chief administrators of federal executive administrative agencies. a. True b. False […]

Lawsuits based on the commercial activities of a foreign state conducted in the U.S. are subject to the jurisdiction of state or federal courts in the U.S. a. True b. False The Revised Model Act would permit the directors to […]

The U.S. Supreme Court has held that the Takings Clause requires just compensation not only if a governmental taking actually occurs, but also if a governmental regulation reduces the value of the property. a. True b. False Constructive eviction would […]

Pam sells to Rob property which has a $50,000 mortgage in favor of First Bank. Rob purchases the property subject to the mortgage. The value of the property declines and there is a default on the mortgage. When First Bank […]

An anomalous indorsement is: a. one that specifically identifies the person to whose order the instrument is payable. b. an indorsement made by a person that is not the holder of the instrument. c. one that makes the signer liable […]

Stare decisis has no application in a dual court system. a. True b. False Possession is available as a means of perfecting a security interest in accounts and letter-of-credit rights. a. True b. False Answer: False The validity of zoning […]

An agreement for the purchase of an illegal substance will be enforced by the courts if all other elements of the contract are present. a. True b. False “Goods” for purposes of the Code are essentially defined as tangible, movable, […]

Judicial review is the process by which courts review governmental action to determine whether such actions conform to the U.S. Constitution. a. True b. False Death or insanity of either the offeror or the offeree ordinarily terminates the offer. a. […]

The Wal-Mart Stores, Inc. v. Samara Brothers, Inc. case involved which of the following? a. Infringement of unregistered trade dress. b. Infringement of a registered symbol. c. Use of a certification mark. d. Use of a collective mark. Generally, whether […]

Bob rented a lawn mower from Scott Rentals. The lawn mower wheel was loose when Bob picked up the mower. When he began to use it, the wheel fell off, causing the mower to tip over onto his foot. Under […]

Upon dissolution of a partnership, all authority of a partner to act on behalf of the partnership terminates. a. True b. False In relation to the Takings Clause, public use has been held to be synonymous with public purpose. a. […]

Which of the following activities is/are regulated by the federal government through its exercise of the commerce power? a. Commercial speech. b. Civil rights in employment. c. Shoplifting. d. All of these. e. None of these. Section 402A provides that […]

Would a letter written after the execution of a contract and which contained agreements different from those in the written contract be admissible under the parol evidence rule? a. No, because it contradicts the terms of the contract. b. No, […]

A defense that can only be asserted by the principal debtor is called a: a. real defense. b. subrogated defense. c. personal defense. d. joint defense. Harvard philosopher, Robert Nozick, stressed liberty, not justice, as the most important obligation that […]

The word “truck” cannot be a trademark for trucks, although it could be a trademark for a new brand of designer jeans. a. True b. False Assume a foreign nation has seized all of the property of an American corporation. […]

The modern approach follows the common law rule in holding that a corporation cannot commit a criminal act. a. True b. False Which of the following duties would not be delegable? a. John has a contractual duty to pay Isaac […]

Under the RUPA, a partners dissociation in a term partnership is wrongful if before expiration of the term: a. the partner voluntarily withdraws one month after another partner dies. b. the partner dies. c. a court determines the partner became […]

To eliminate minority interests, which of the following are sometimes used to take a publicly held corporation private? a. Conversion. b. Domestication. c. Cash-out combinations. d. All of these. A small breach of contract damage amount fixed without regard to […]

By law, bystanders are always required to help others in peril. a. True b. False In 1992, the SEC issued new rules establishing an integrated registration and reporting system for small business issuers. a. True b. False Answer: True Which […]

A void title may allow good title to pass in special circumstances. a. True b. False Which one of the following assignments would probably be prohibited by a court? a. Mary is in debt. A credit card company calls and […]

The exercise of the power to avoid a contract is known as: a. ratification. b. disaffirmance. c. ab initio. d. restitution. Maximum rates of interest that are permitted under usury statutes are uniform from state to state. a. True b. […]

Marty Sandidge wrote a check payable to “Charles Saxon when the payees real name was spelled “Charles Saxton. In order to obtain payment, Charles: a. must have Marty void the check and rewrite another check with Charless name spelled correctly. […]

The tort of invasion of privacy actually consists of: a. unreasonable intrusion into the seclusion of another. b. unreasonable public disclosure of private facts. c. unreasonable publicity that places another in a false light. d. All of these. Carolyn, a […]

Under the provisions of the Foreign Sovereign Immunities Act: a. all foreign governments are immune from suit by U.S. citizens. b. U.S. citizens in U.S. courts can always sue most foreign governments. c. a car used by a foreign embassy […]