BL Final MC

A false communication made with knowledge of its falsity and with the intent to induce another to act is known as: a. disparagement. b. fraudulent misrepresentation. c. defamation. d. invasion of privacy.

B

A gratuitous agent: a. is a paid agent. b. is subject to the same duty of loyalty as other agents. c. has no duty of diligence. d. need not be reimbursed for her expenses.

B

A motion to dismiss a lawsuit for failure to state a claim is a(n): a. affirmative defense. b. demurrer. c. motion for a default judgment. d. interrogatory.

B

With respect to the tort of conversion, which of the following statements is true? a. Conversion is an intentional exercise of dominion over another's real property that so seriously interferes with the right of control as to justly require the payment of damages. b. All conversions are nuisances. c. All trespasses are conversions. d. None of the above.

D

Generally, State A may exercise "long-arm" jurisdiction over a defendant located in State B if the defendant: a. once resided in State A. b. uses a product produced in State A. c. made a contract in State A. d. has relatives in State A.

C

Glenna has been charged with arson of a storage building. The prosecutor must prove Glenna's guilt: a. by a preponderance of the evidence. b. by the greater weight of the evidence. c. beyond a reasonable doubt. d. beyond shadow of a doubt.

C

Why do governments impose tariffs? a. To protect domestic industries from foreign competition. b. To raise revenues. c. To attempt to improve their balance of trade. d. Governments impose tariffs for all of the above reasons.

D

Tom tries to sell his Aston-Martin to Victoria for $12,000. Tom tells Victoria, "I paid $12,000 for the car in 1978 and it's worth twice that today." Tom really paid $8,000 for the car in 1978. If Victoria buys the car, basing her decision on Tom's statement, which of the following correctly states the situation? a. Tom's statements amount to puffing only. b. Tom's statements provide grounds to set the contract aside. c. Tom's statements are actionable only if intentional. d. Tom's statements amount to fraud in the execution.

V

A deed containing a number of promises including covenant of title, quiet enjoyment, against encumbrances, and warranty are found in a: a. warranty deed. b. guarantee deed. c. quitclaim deed. d. general deed.

A

An action for negligence consists of which of the following elements which the plaintiff must prove? a. Injury. b. Res ipsa loquitur. c. A reasonable person. d. All of the above.

A

An administrative law judge for the Federal Trade Commission decides a case against a retail store chain. The company then appeals the decision to the commission itself. Which of the following is correct regarding the appeal of the case from the administrative law judge to the commission? a. The commission may hear additional evidence and arguments in deciding whether to revise the findings and conclusions it made in the initial decision. b. There is no appeal from the decision of the ALJ. c. The commission will decide the case by having a jury trial. d. The commission must decide the case on the record, abstracts, and briefs and may not hear any evidence.

A

Contract damages that put the injured party in as good a position as if the other party had performed are: a. compensatory damages. b. incidental damages. c. consequential damages. d. liquidated damages.

A

If private entities engage in public functions, constitutional guarantees such as free speech and due process may apply to their actions under the __________ doctrine. a. state action b. federal preemption c. interstate commerce d. supremacy

A

In a notice-race state: a. an unrecorded deed is invalid against any subsequent purchaser without notice of who recorded first. b. unrecorded deeds are invalid against any subsequent purchaser without notice. c. an unrecorded deed is invalid against any deed recorded before it. d. a recorded deed is invalid against a subsequent purchaser who records.

A

The way parties usually show mutual assent is by: a. an offer by words or conduct and an acceptance by words or conduct. b. a proposal in words and an acceptance in words. c. an act exchanged for an act. d. an offer and a counteroffer.

A

Three torts comprise the misuse of legal procedure. They include: a. malicious prosecution. b. slanderous prosecution. c. fraudulent misrepresentation. d. All of the above.

A

A change in contract law between the nineteenth and twentieth centuries was: a. a relaxation of requirements of contract formation. b. an increase in technical requirements for contract formation. c. a movement toward enforcement of promises only if there was strict compliance with basic contract requirements. d. increasing difficulty for parties to get out of a contract.

A

A contract agreeing to indemnify the insured against certain specified defects in title to real property is called: a. title insurance. b. a warranty deed. c. guarantee insurance. d. a real estate guarantee.

A

A contract induced by threatening to bring a civil suit against an individual is prohibited: a. if the threat is an abuse of process. b. if the suit is to recover a debt, whether the debt is valid or in controversy. c. under no circumstances. d. Both (a) and (b).

A

A court order requiring that a person do or refrain from doing a particular act is known as a(n): a. injunction. b. maxim. c. statute. d. executive order.

A

The person who files or commences a civil lawsuit is the: a. plaintiff. b. defendant. c. prosecuting attorney. d. attorney general.

A

A major rule of an administrative agency: a. does not become final until Congress has had an opportunity to disapprove it. b. is any rule that the Office of Management and Budget finds has resulted in or is likely to result in an annual effect on the economy of at least one million dollars. c. must be published in the Federal Register prior to its becoming final, but need not be submitted to Congress. d. is a rule that will have a significant effect on competition and that becomes final if it is submitted to and approved by the President.

A

A number of countries have joined together in Europe, Asia, Africa, and Latin America to coordinate their regional economies. Which of the following has NOT been an objective of such cooperation? a. Creation of "regional" legislatures with actual powers. b. Lowering of tariffs or removing other trade barriers. c. Providing adequate and effective enforcement of intellectual property rights. d. Establishing an economic and monetary union.

A

A photographer taking photos of a movie star with a telephoto lens would NOT be guilty of intrusion if: a. the movie star was in a restaurant at the time. b. the pictures were not published. c. the movie star was in bed at the time. d. the photographer never entered onto the movie star's property.

A

A real estate conveyance is governed by the: a. statute of frauds. b. financial decisions of the lender. c. terms of the mortgage. d. law of secured transactions.

A

A star basketball player in the NBA: a. is a "public figure" with respect to a defamation action against a newspaper. b. is a "public official" with respect to a defamation action against a newspaper. c. may win a defamation case against the media if he can prove the media acted negligently in reporting an untruth about him. d. is not subject to the "actual malice" test in defamation actions against the press.

A

A state constitutional provision conflicts with a federal statute. The: a. federal statute is supreme. b. state constitutional provision is supreme. c. federal statute is supreme if Congress has expressly so provided. d. state constitutional provision is supreme if it expressly so states.

A

A writ of execution as used in civil law litigation allows: a. the plaintiff to demand payment from the defendant of a judgment won in court. b. the governor of a state to demand execution of a convicted felon who has received a death sentence by a jury. c. the clerk of court to issue a demand for a new trial. d. the plaintiff, without further process, to obtain a portion of the defendant's wages.

A

A(n) __________ contract is one in which the terms have been definitely and specifically stated and agreed upon. a. express b. implied c. written d. formal

A

A(n) __________ is a person in a position of trust and confidence who has a duty of utmost loyalty and good faith. a. fiduciary b. servant c. independent contractor d. principal

A

A(n) __________ is a third party who obtains possible benefits but no rights under a contract. a. incidental beneficiary b. intended beneficiary c. assignor d. donee beneficiary

A

Able, a resident of New York, has a dispute with Baker, a resident of Illinois, involving a contract signed and performed in New York. His damages amount to $50,000, and he wants to sue. The case can be brought: a. in the New York state courts. b. in the New York federal court. c. only in the Illinois state courts. d. in either the New York state courts or the New York federal court.

A

According to the "American Rule," when contracting parties litigate over a breach: a. each party pays its own attorney fees, regardless of who wins. b. attorney fees are considered consequential damages. c. the losing party has to pay the winner's attorney fees. d. a provision for attorney fees in the written contract will not be given effect.

A

Action Play Equipment ordered 200 feet of chain, 400 clasps, and 50 swing seats from Brace Company for $1,600 to be delivered within three weeks of the order. Brace sent back an acceptance form which stated payment was due within 30 days of delivery or a finance charge of 2% per month would be added to the balance. What is the status of the interaction between Action and Brace? a. There is a valid contract under the UCC, and the additional payment terms become part of the contract unless Action objects within a reasonable period of time. b. There is a valid contract for the goods, but the payment terms will not become part of the contract. c. There is no contract, because Brace has made a counteroffer by adding payment terms. d. There is no contract, because the method of transportation has not been decided.

A

Administrative statutes issued by an agency are known as: a. legislative rules. b. interpretive rules. c. hybrid rules. d. procedural rules.

A

Adverse possession: a. is an involuntary transfer of title. b. is an illegal transfer of title. c. allows a person a chance to retrieve their mortgage. d. None of the above.

A

Al, an accountant, has a tax service and accounting business in Redwood City. He decides to move to Center City, which is 150 miles away and sells his accounting practice to Able and Baker, a CPA firm. In the sale contract, he agrees that he will refrain from practicing accounting anywhere within a 60-mile radius of Redwood City for a period of two years. However, on weekends he returns to his house in Redwood City, and when clients call him, he meets with them in his home. In this case: a. Al is in violation of the sale agreement, which contained restrictions that would probably be held to be valid. b. the agreement is invalid, because it is an illegal restraint on trade. c. the agreement is illegal, because it is a violation of public policy. d. the two-year provision is likely to be held invalid, because it is too long a period of time.

A

Albert found a stone in his yard and took it to Bob, a jeweler, for evaluation. Bob wasn't sure as to the nature of the stone, but told Albert he thought it was a topaz. Bob then offered to buy the stone for $25 and Albert agreed. Later Albert found out the stone was an uncut diamond worth about $700. The sales contract: a. is a valid contract that should be enforced by the law, because neither party knew the exact nature of the stone at the time of the sale. b. can be voided based upon fraud in the execution. c. can be voided based upon fraudulent misrepresentation. d. can be voided based upon mistake as to the identity of the subject matter.

A

Alice says to Brian, "If I decide to buy a word processor next year, I will buy it from you." This is an example of: a. an illusory promise. b. past consideration. c. the pre-existing duty rule. d. good consideration.

A

An agent has breached his fiduciary duty in which of the following situations? a. All of the following choices are correct answers. b. Where the agent makes a secret profit. c. Where the agent uses information obtained in the course of the agency for his own benefit. d. Where the agent competes with the principal.

A

An example of a special court in the federal judicial system is the: a. U.S. Court of Federal Claims. b. Federal District Court. c. U.S. Supreme Court. d. U.S. Court of Appeals.

A

An example of private law is: a. business law. b. administrative law. c. criminal law. d. All of the above.

A

An undisclosed principal may result in which of the following? a. Liability of the agent for any contract made on behalf of such a principal. b. The agent's being declared incompetent by a court of law. c. A declaration order by the court for the principal to show a guarantee. d. All of the above.

A

Anita owes Brad $75,000. Brad signs a written statement granting Carl a gratuitous assignment of his rights from Anita. If Brad delivers the signed statement to Carl before he dies: a. the delivery of the statement makes the assignment irrevocable. b. the assignment is terminated upon Brad's death. c. the signing of the statement makes the assignment irrevocable. d. the assignment is invalid, because it is revocable.

A

Anita tells Bob that unless Bob pays her $5,000, she will tell his customers that he was once arrested for shoplifting as a teenager. The fact that Bob shoplifted as a teenager is true. a. In most jurisdictions Anita has committed the crime of extortion. b. Anita has committed the crime of defamation. c. Anita has committed the crime of bribery. d. In all jurisdictions in the United States, Anita would have to have received the money from Bob to be charged with a crime.

A

Another name for an indictment is a(n): a. true bill. b. arraignment. c. verdict. d. preliminary hearing.

A

Any business that engages in transactions involving the movement of goods, information, money, people, or services across national borders is referred to as a: a. multinational enterprise. b. joint venture. c. flow of trade. d. flow of capital.

A

Arnold has offered to take Bob into his accounting firm as a partner upon payment of $5,000 cash. In response, Bob says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership." a. Bob has made a counteroffer and hence there is no contract. b. Bob has rejected the terms of the original offer, but there is still a contract. c. Under Article 2 of the UCC, Arnold is a merchant making a firm offer. Hence there is a contract. d. Any indefinite provisions in the contract between Arnold and Bob will be supplied by Article 2 of the UCC.

A

Assume a foreign nation has seized all of the property of an American corporation. The nation has assumed ownership of the property for a public purpose and has paid the American corporation what it believes to be fair compensation. Under these facts, the seizure of property is best described as: a. expropriation. b. confiscation. c. force majeure. d. eminent domain.

A

Assume a state has a criminal statute that punishes "every person who by himself or his employee or agent sells anything at short measure." Chris, an employee of Watkins Fencing, Inc. within that state, intentionally sells wire fence to Nowton Construction at short measure. Watkins: a. may be held criminally liable for Chris's act even if Watkins did not authorize this action. b. will only be held liable if Chris is a managerial employee. c. cannot be vicariously liable for Chris's action unless Watkins directed, participated in, or approved of the act. d. will not be vicariously liable for Chris's action if it was not authorized because the element of mental fault is missing on the part of Watkins.

A

Assume an offeree mails a rejection to the offeror on November 1. This rejection arrives at the offeror's place of business on November 5. In the meantime, on November 4, the offeree sends the offeror an acceptance that arrives November 6. Which of the following statements correctly describes the situation? a. There was no contract. b. There was a contract since the acceptance was mailed prior to the time the rejection was received. c. There was no contract because the rejection was mailed first. d. There was no contract because the acceptance was mailed more than three days subsequent to the rejection.

A

At age 17, Wanda purchased an expensive sound system from Lectronic City. If Wanda wishes to ratify this contract, Wanda: a. must reach the age of majority and ratify the contract as a whole. b. may do so by express notification at any time before reaching the age of majority. c. may at any time keep the sound system but avoid any remaining debt owed on it. d. may do so at any time by express or implied action before or after reaching the age of majority.

A

At common law, __________ was defined as a breaking and entering of a dwelling house at night with the intent to commit a felony. a. burglary b. bribery c. robbery d. theft

A

Bartow signed a contract to coach baseball for Washington High for a period of three years. After two years he is offered and accepts an assistant coaching position at State University. Contract law will not allow Washington High to ask for: a. specific performance of his contract. b. payment of compensatory damages. c. an injunction against coaching at the university. d. liquidated damages.

A

By holding a knife to his back, Ed compelled Sean to sign a contract advantageous to Ed. This contract was entered under: a. physical duress. b. improper threats. c. undue influence. d. false representation.

A

Carlos owns a store in Polk County. His trade extends throughout River City, but not beyond the county limits. He sells his store to Virginia and, as part of the transaction, agrees not to engage in the same business anywhere in River City for a period of two years. In this case: a. the geographic restraint is reasonable. b. this agreement is unreasonable. c. the agreement unduly interferes with the interest of the public. d. Two of the above, (b) and (c).

A

Carolyn, a cashier at Tops Supermarkets, may cash checks for up to $20 over a purchase amount. A friend needs money for a dress so Carolyn cashes a check for $50 with no purchase. The check bounces. Carolyn is: a. liable because she violated her duty of obedience. b. liable because she breached her duty to inform. c. not liable since she has apparent authority to take the check. d. not liable unless she knew her friend did not have the money in the bank.

A

David enters into a contract giving Edward the right of first refusal on a tract of land owned by David. David subsequently offers the land to Fred without first offering it to Edward. An appropriate remedy for Edward to seek would be: a. an injunction. b. liquidated damages. c. reformation. d. punitive damages.

A

Destruction of the subject matter has what effect on the offer? a. The offer is terminated. b. The offer is delayed until additional subject matter can be located. c. This creates an impossibility of fact that does not terminate the offer. d. The offer is merely delayed under the "Hardship Rule."

A

Donald, a minor, makes a contract with Albert, an adult, to buy a motorcycle. One week later, Donald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the motorcycle next week. In this case: a. Donald has expressly ratified the contract. b. the contract must be renegotiated, because Donald was a minor when it was made. c. Donald can change his mind and avoid the contract, because it was made when he was a minor. d. the contract is void ab initio, because Donald was a minor at the time it was made.

A

Elvis makes an offer to Fred, but before Fred can accept, the state supreme court decides a case that makes Elvis's offer illegal. The court's decision: a. automatically terminates the offer. b. has no effect on the offer. c. acts as a condition on the offer. d. acts as a rejection of the offer by the offeree.

A

For an offer to be valid: a. the offeree must have knowledge of the offer. b. the offeree must have first-hand knowledge of the offer. c. the offer must be stated or communicated by words. d. the offer must be made by the offeror.

A

Formal rulemaking differs from informal rulemaking in that with formal rulemaking: a. the procedures are governed by the same APA provisions that govern an adjudication. b. an agency must give prior notice of a proposed rule, usually by publication in the Federal Register. c. an opportunity must be given for interested parties to participate in the rulemaking. d. publication of a final draft of the rule, along with a statement of the rule's purpose, must be given at least fourteen days before its effective date.

A

Frank, acting as a promoter for Garleen Co., a corporation not yet in existence, makes a contract with Towne Supplies. When Garleen Co. is formed, it may: a. adopt the contract, but Frank would not be released from potential liability on the contract. b. in all states, ratify the contract, thereby releasing Frank from potential liability. c. adopt the contract, thereby making it retroactive. d. ratify all or part of Frank's contract.

A

George has been declared incompetent by the court and is under the care of his sister. Unknown to his sister, George rents the 10,000-seat civic center for his birthday party. George's contract to rent the civic center is best described as: a. a void contract. b. a quasi contract. c. a voidable contract. d. an enforceable contract.

A

Harold hired Blake Painters to paint his house. Blake decides he has too many jobs and delegates the duties to the Andrews Company. If Andrews does a poor job, and drips paint on Harold's flowers and windows, Harold: a. can sue both Blake and Andrews. b. can sue Blake, but he cannot sue Andrews. c. can sue Andrews, but he cannot sue Blake. d. cannot sue, because he has accepted the benefits of the assignment.

A

Harold purchased 400 pairs of gloves from Isaac at a contract price of $800. Fifty of the gloves were defective and a dispute arose as to the amount due and owing under the contract. Harold refuses to pay the $800, and Isaac is threatening to sue. Which of the following is correct with regard to this transaction? a. If Isaac agrees to accept $600 to settle the dispute and Harold agrees to pay that amount, the agreement is enforceable. b. If Isaac agrees to accept $600 to settle the dispute and Harold pays that amount, Isaac can still sue for the balance of $200 and will win the lawsuit. c. Harold is under a pre-existing legal obligation to pay the $800. d. Two of the above, (b) and (c).

A

How does the due process clause of the Fourteenth Amendment differ from the due process clause of the Fifth Amendment? a. The Fourteenth Amendment clause protects individuals from violations of their rights by state governments; the Fifth Amendment protects individuals from violations of their rights by the federal government. b. The Fourteenth Amendment clause guarantees both substantive and procedural due process but the Fifth Amendment clause does not. c. The Fourteenth Amendment clause protects individuals against violation of their rights by private individuals as well as the government. d. The Fourteenth Amendment clause requires the application of strict scrutiny in all cases.

A

Howard 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. Howard called the store and demanded the advertised price. If the store says "okay": a. Howard must pay $179.99. b. Howard must pay $249.99. c. there is no contract. d. there is a contract for the reasonable value of the door.

A

If Alice, a resident of Ohio, has obtained a valid judgment against Bill, a resident of Kentucky: a. Alice can attach Bill's automobile in Ohio to satisfy her court judgment. b. Alice must go to Kentucky to satisfy her judgment. c. Alice has no recourse against Bill because he has left the state. d. Ohio has no jurisdiction over Bill because he is a resident of Kentucky.

A

If Janice, while driving her car, negligently runs into Paul, a pedestrian who is carefully crossing the street, Janice is liable for: a. physical injuries Paul sustains from the collision because Janice's negligent conduct proximately caused harm to a legally protected interest. b. offensive contact if her side mirror brushes against Paul, even if there are no physical injuries to him. c. offensive contact if her car touches Paul's coat, even if there is no damage to the coat. d. All of the above.

A

If Stan's land is condemned in order to build a subway system for the city, he must be given: a. the fair market value of the property as of the time of the taking. b. equivalent property. c. the option of keeping the property. d. his price for the property.

A

If a court finds a contract unconscionable: a. the court may refuse to enforce only the unconscionable part. b. it must, in all states, be found both substantively and procedurally unconscionable to be unenforceable. c. the court must refuse to enforce the contract. d. the contract must fall strictly within the Code's or the Restatement's definition of "unconscionable" to be unenforceable.

A

In determining whether a state law unduly burdens interstate commerce, the Court considers: a. the extent to which the law discriminates against interstate commerce in favor of local concerns. b. only the blanket consideration of whether Congress has already legislated in the affected subject area. c. whether the Constitution specifically allows states to regulate that subject matter. d. only the necessity of the law to the proper functioning of the state.

A

Intentional harm to the person includes which of the following torts? a. Assault. b. Nuisance. c. Conversion. d. All of the above.

A

Jack has been in the business of selling carpeting for 20 years. He calls Bob, who is opening another branch of his furniture stores, and offers to sell him 100 square yards of carpet at $20 per square yard. Bob agrees and sends back the following letter confirming the deal: Dear Jack: As we discussed on the phone January 3, we accept your offer of 100 square yards of Saxony "heather blue" carpeting at the rate of $20 per square yard. We also reserve the right to purchase any additional yardage we need to carpet our other showroom facilities at the same rate for one year from that date. Very truly yours, Bob Which of the following is true? a. There is a contract for only 100 square yards of carpeting. b. There is a contract for 100 square yards PLUS the additional yardage. c. There is no contract since Bob made a counteroffer. d. There is no contract because the additional term is too uncertain to become a contract term.

A

James offers to sell his fishing boat to Brenda for $3,000. Brenda says she will apply for a loan and will buy the boat within a week. A contract is formed: a. when Brenda tells James she will buy the boat. b. when Brenda gets the money from the credit union. c. when Brenda applies for the loan at the credit union. d. only when James gets the $3,000.

A

Janet's husband, John, is called for jury duty and is selected for possible service on a jury. However, when he is questioned by the defendant's attorney before final jury selection, he admits that he thinks the defendant is guilty based on the news reports that he saw on the local television news. The defendant asks the judge to excuse John from serving on the jury and the judge agrees. This is: a. a valid challenge for cause. b. a valid peremptory challenge. c. not a valid challenge. d. a valid challenge, but the plaintiff's attorney can have John serve by making an offer of proof to the judge.

A

Jill contracts to purchase Kevin's automobile under the belief that she can sell it at a profit to Linda, but after Jill has bought the car, she finds out that Linda isn't interested in buying it. Jill: a. cannot void the contract. b. can rescind the agreement. c. could rescind the agreement if she was mistaken in her estimate of the value of the auto. d. can sue Linda for detrimental reliance.

A

Julian threw a brick at Will, intending to hit him. If the brick instead hits Anna, Julian has: a. committed a battery. b. committed an assault. c. no liability if he has not yet reached the age of majority. d. not committed a tort because he did not have the intent to harm Anna.

A

Kellie owes a duty to Grant and Kellie delegates the duty to Hank. Hank: a. is not obligated to either Kellie or Grant to perform the duty unless Hank agrees to do so. b. becomes liable for nonperformance to both Kellie and Grant only if Hank promises both Kellie and Grant that he will perform Kellie's duty. c. cannot create contractual rights in Grant. d. All of the above.

A

Like the federal government's power to tax, its power to spend will be upheld so long as it does not: a. violate a specific constitutional limitation on federal power. b. restrict the states' constitutional limitations. c. cause undue hardship to the states. d. interfere with commercial trade.

A

Louis agreed to provide all the apples that Cindy's Cider Mill will need at $3 per bushel unless weather conditions require additional labor to be hired. The rate would then be $3.50 per bushel. A freeze warning required Louis to hire 10 additional overtime workers, raising the cost per bushel to $4.75. Louis wants to get out of his contract. Can he? a. No, the parties expected the hardship and provided for it in their contract. b. No, there is no hardship. c. Yes, the contract is commercially impracticable. d. Yes, the freeze is a supervening event.

A

Mark hires Joe's real estate agency to sell his property, telling Joe he has lost too much money playing the stock market to afford to keep it up. Then Mark wins the three million-dollar lottery! Joe reads this in the newspaper and that afternoon makes a contract with Sharon to sell the property. Is the contract valid? a. No, the agency terminated because of the change in conditions. b. No, the agent has no right to sell without consent. c. Yes, Mark would have to notify Joe if he wanted to stop the sale. d. Yes, Joe had apparent authority to sell.

A

Marketable title means that the title is free from which of the following? a. Encumbrances. b. Defects in the chain of title not appearing in the land records. c. Variances from zoning ordinances. d. All of the above. e. None of the above.

A

Martinez and Lopez practice law solely within the state of Texas. The law practice: a. may be subject to federal antitrust laws under the power granted by the Commerce Clause under certain circumstances. b. cannot be subject to federal antitrust laws under the power granted by the Commerce Clause because the activities are conducted within one state. c. is subject to federal antitrust regulation under the federal police powers. d. Both (b) and (c).

A

Mary goes to her stockbroker, purchases 30 shares of P & G stock, and instructs the broker to register the stock in her husband Warren's name. If this stock is intended as a Valentine's gift, Warren becomes: a. a donee beneficiary. b. a transferee. c. a delegatee. d. an assignee.

A

Mary's car was parked just outside the east door of the Civic Center. When she tried to exit, three ominous-looking gang members were blocking that door. She called the police who arrested the three for loitering. If Mary brings suit against them for false imprisonment: a. she will lose if there was another exit she could have used. b. she will lose because she was not harmed by the confinement. c. she will win even if there was another way out because she was, in effect, being confined to the Civic Center. d. she will win because they were blocking her passage to her car.

A

The reasonable person standard is: a. external and objective. b. external and subjective. c. internal and objective. d. internal and subjective.

A

Maxine offered to sell her video camera to Tom for $200 and also stated to Tom, "I will give you two weeks to accept my offer." One week later Tom learned that Maxine had sold the video camera to Cindy. In this case: a. Maxine has revoked her offer to Tom. b. Maxine's offer is a firm offer and she must sell Tom a video camera for $200. c. Maxine must get the camera back from Cindy if Tom accepts within two weeks. d. an option contract was created, so Maxine is liable to Tom if she sells the camera to someone else within the two-week period.

A

Melody, age 17, makes a contract with Seung, who is an adult. Melody: a. may exercise the power of avoidance, called disaffirmance, while still a minor, and thereby be released from any liability on the contract. b. may ratify the contract while still a minor, thereby surrendering the power of avoidance. c. has entered a void contract since she lacked capacity. d. may disaffirm only after reaching the age of majority.

A

Nanette wanted to purchase a new car and found one she liked at Minson Motors. Several important contractual terms were buried in the written agreement and some of the meaning of the contract was obscured by legal jargon. The contract involved: a. procedural unconscionability. b. substantive unconscionability. c. adhesion. d. exculpatory clauses.

A

Paul, a contractor, has a contract to build a new office building for Bill. The contract contains a provision requiring Paul to furnish a certificate of occupancy from the building inspector before Bill is required to pay. This provision is: a. an express condition. b. an implied-in-fact condition. c. an implied-in-law condition. d. a condition subsequent.

A

Possible remedies for a breach of contract include: a. compensatory damages. b. fines. c. incarceration. d. All of the above. e. None of the above.

A

Quasi contracts are used to provide a remedy when the parties enter into a(n): a. void contract. b. implied in fact contract. c. situation in which promissory estoppel applies. d. All of the above.

A

Rebecca sees a pair of beautiful silver shoes in a store window. She goes in and tells the shopkeeper, "If I am asked to the prom, I will buy those shoes. Please hold them for me." If the shopkeeper signs a note that says, "Will hold for Rebecca silver shoes, style 1028, size 8," will he have to honor that promise? a. Yes, and there is a condition precedent to the contract of sale. b. Yes, there is a contract with a condition subsequent. c. No, there is no contract but simply an illusory promise. d. No, a contract is formed after Rebecca is asked to the prom.

A

Refusal of a tender of performance by one party to a bilateral contract will: a. be treated as a repudiation, excusing the tendering party from further duty of performance under the contract. b. not discharge either party from further duty of performance under the contract. c. be considered a condition subsequent. d. None of the above.

A

Regarding the effect of termination of agency on authority, the general rule of the Third Restatement is that: a. it is reasonable for third parties to assume that an agent's actual authority continues unless and until the third party has notice of circumstances that make it unreasonable to continue that assumption. b. the termination of actual authority automatically terminates any apparent authority held by the agent. c. apparent authority ends only upon actual notice, either oral or written, to the third party. d. apparent authority continues until the third party with whom the agent has previously dealt on credit receives constructive notice of termination.

A

Robert Briscoe is 17 years old. He lies to Bouyers Auto about his age in order to induce them to sell him a new pickup truck. Bouyers falls for this lie and sells him the pickup. Under the prevailing view, Robert: a. may disaffirm and get his money back. b. may not disaffirm since he lied. c. may only receive a portion of his money. d. will receive his money less depreciation.

A

Sam is George's agent. George decides to fire Sam. Mel is an old customer of George's and he has dealt with Sam for over 20 years. Ellie is a prospective customer that Sam has spoken with on numerous occasions in his capacity as George's agent, and George was aware of the preliminary negotiations. Mel orders goods from Sam after Sam has been fired but Mel has no knowledge of the firing. Later, Sam takes an order from Ellie, who does not know of the firing. Using the rules of the Second Restatement, which of the following statements would apply to this scenario? a. George will be liable for the contract with Mel. b. George will not be liable on the contract with Mel. c. George will not be liable on the contract with Ellie. d. Both (a) and (c). e. Both (b) and (c).

A

Sarah offers to pay Allison $150 if Allison will paint her apartment while she is out of town on vacation for two weeks. Allison makes no promise but tells Sarah that she will think about it. While Sarah is out of town, Allison paints the apartment. This is best described as: a. a unilateral contract. b. a quasi contract. c. an implied in fact contract. d. a bilateral contract.

A

Seventeen-year-old Brice has just received his driver's license. He is driving a little too fast one day and slams into the back of another car, which has just stopped for a stop sign. In most states: a. since Brice is engaging in an adult activity, he will be held to the same standard as an adult. b. since Brice is a minor, he will have no responsibility for his torts. c. Brice's parents are responsible for any torts he commits. d. Two of the above, (b) and (c).

A

State trial courts of general jurisdiction: a. may be called county, district, common pleas, or supreme 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.

A

Steven owes Theresa $100 for a used computer which he bought last year at Theresa's garage sale. The two agree that the debt can be paid by Steven's shoveling Theresa's driveway from January through March. The new contract is a(n): a. accord. b. satisfaction. c. novation. d. rescission.

A

The states may enact legislation concerning a subject in which there is a federal statute if: a. Congress has not clearly indicated that it intends to control that subject matter. b. the states petition the Supreme Court for permission. c. the state legislation falls within the Necessary and Proper Clause. d. the states reserve the right at the time the federal statute is enacted.

A

Stewart entered into a contract with Will to have Will build a 10-unit apartment complex on Elm Street in Randolph County. Unknown to both parties, this land had recently been rezoned and only single-unit dwellings can be constructed. In this case: a. there is a mistake of law, which in some states is treated no differently than a mistake of fact. In such states, since this mistake relates to a basic assumption on which the parties made their contract and it has a material effect on their agreement, the contract is voidable. b. since everyone should know the law, Stewart is liable to Will for any losses he may incur. c. Stewart is obligated to buy land elsewhere and have the complex constructed on property zoned for apartments. d. Will is liable to Stewart since Will is a contractor.

A

The Code greatly alters the common law doctrine of material breach by adopting what is known as the: a. perfect tender rule. b. anticipatory repudiation rule. c. prevention of performance rule. d. discharge by operation of law rule.

A

The Dodd-Frank Act: a. extends the reach of the antifraud provisions of the 1933 and 1934 Securities Acts. b. appears to restore to private litigants the right to bring proceedings to enforce the antifraud provisions of the U.S. securities laws in cases with an extraterritorial component. c. limits the Department of Justice's right to bring proceedings to enforce antifraud provisions of the U.S. securities laws in cases affecting other nations. d. Both (a) and (b).

A

The Foreign Corrupt Practices Act of 1977 (FCPA): a. makes it unlawful for an American company or its agents to offer or give anything of value to a foreign official for the purpose of influencing the official's acts or decisions. b. requires that American companies in foreign countries adhere to the same health and safety standards in that country as they do in the U.S. c. outlaws American business from engaging in business in countries, which, as determined by the Department, have governments "repugnant to American law and social values." d. None of the above.

A

The General Agreement on Tariffs and Trade (GATT): a. attempts to limit the practice of "dumping." b. is a general international antitrust agreement. c. seeks to prohibit discrimination on import regulations and prevent export fees and export quotas through the mechanism of the "most-favored nations" status. d. has successfully rid international trade of tariffs.

A

The International Anti-Bribery and Fair Competition Act of 1998 was enacted to expand the Foreign Corrupt Practices Act to include: a. payments made to "secure any improper advantage" from foreign officials. b. all foreign persons who commit an act in furtherance of a U.S. bribe while in the U.S. c. domestic officials of international organizations. d. All of the above.

A

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.

A

The Sherman Act: a. applies to acts committed overseas by U.S. corporations. b. would not apply to an act committed in the United States by a foreign corporation. c. would not apply to an act overseas by a 100 percent-owned foreign subsidiary of a U.S. corporation. d. never applies to acts committed outside the U.S.

A

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.

A

The U.S. Court of Appeals for the Federal Circuit reviews decisions of which of the following? a. United States Court of International Trade. b. Tax Court. c. Bankruptcy Courts. d. All of the above.

A

The U.S. Supreme Court has: a. used the Contract Clause to restrict states from retroactively modifying public charters and private contracts. b. held that the Contract Clause precludes states from exercising their police powers. c. held that the Contract Clause precludes states from exercising eminent domain. d. All of the above.

A

The __________ established the MIGA to encourage increased investment in developing nations. a. World Bank b. Regional Trade Communities c. United Nations d. NAFTA

A

The __________ is the federal statute requiring most records in agency files to be accessible to the public. a. FOIA b. APA c. ALJ d. Government in the Sunshine Act

A

The action through which the mortgage holder takes the property from the mortgagor, ends the mortgagor's rights in the property, and sells the property to pay the mortgage debt is known as: a. foreclosure. b. equity of redemption. c. adverse possession. d. execution of a deed of trust.

A

The basic purpose of __________ is to facilitate the flow of trade by establishing agreements concerning potential trade barriers such as import quotas, customs, export regulations, subsidies, and import fees. a. WTO b. Foreign Sovereign Immunities Act. c. World Bank. d. None of the above.

A

The category of law that creates, defines, and regulates legal rights and obligations is known as: a. substantive law. b. procedural law. c. Constitutional law. d. criminal law.

A

The doctrine of respondeat superior is most often applied in situations involving: a. torts of the agent. b. negligence of the principal. c. contracts negotiated by the agent. d. crimes committed by the agent.

A

The legal concept which deals with the location where a lawsuit should be brought is: a. venue. b. in personam jurisdiction. c. subject matter jurisdiction. d. stare decisis.

A

The majority of states follow the __________ rule in awarding damages for fraud. a. benefit-of-the-bargain b. out-of-pocket c. liquidated d. restitution

A

The nonbinding, informal process in which a third party is selected by the disputing parties to attempt to help them reach a mutually acceptable agreement is known as: a. conciliation. b. discovery. c. consensual arbitration. d. compulsory arbitration.

A

Tim, who is a minor, enters into a contract with Violet, who is an adult. Which of the following is correct? a. Violet may not disaffirm the contract. b. Violet may disaffirm the contract at any time. c. Violet may disaffirm the contract when Tim becomes an adult. d. Tim may ratify the contract at any time during his minority.

A

Under E-Sign, an electronic agent: a. is a computer program or other automated means used independently to initiate an action or respond to electronic records or performances. b. is an individual who uses electronic means to initiate an action or respond to electronic records or performance. c. is an electronic sound, symbol, or process attached to or logically associated with a contract or other record. d. may not form a contract without an individual's reviewing the terms.

A

Under RICO, a __________ is any of several criminal offenses such as murder, kidnapping, arson, extortion, and drug dealing. a. predicate act b. liable act c. white-collar crime d. mala in se act

A

Under the Second Restatement, the duty of a possessor of land to persons who come on the land usually depends on whether those persons are: a. invitees, trespassers, or licensees. b. reasonable persons. c. fiduciaries. d. involved in abnormally dangerous activities.

A

Under the Third Restatement, an agent representing an undisclosed principal is discharged from liability if the third party: a. gets a satisfied judgment against the principal. b. becomes aware of the principal. c. gets a judgment against the agent. d. He is never discharged from liability.

A

Under the UCC, a(n) __________ is a sequence of previous conduct between the parties to an agreement which may be fairly regarded as establishing a common basis of understanding for interpreting their conduct under the contract. a. course of dealing b. usage of trade c. course of performance d. extrinsic set of evidence

A

Under the common law, the __________ must be the mirror image of the __________. a. acceptance, offer. b. offer, acceptance. c. contract, offer. d. contract, consideration.

A

Victor negligently led Gus to believe that Brenda had the authority to act on Victor's behalf. If Brenda had no authority but Gus reasonably and in good faith relied on Brenda's apparent authority: a. Victor can be liable to Gus for Gus's loss suffered because of his reliance. b. Victor cannot be held liable to Gus because Brenda had no actual authority. c. only Brenda can be held liable for any loss Gus suffered because of his reliance. d. Gus must bear any loss because he did not determine the extent or existence of Brenda'a authority.

A

Violation of a statute designed to protect underage, unlicensed drivers, as well as innocent third parties, from the consequences of juvenile car theft and "joy riding," by prohibiting car owners from leaving the keys in their car if the car is unattended, is likely to be characterized as: a. negligence per se. b. res ipsa loquitur. c. contributory negligence. d. assumption of risk.

A

Vladimir entered into a contract to buy Daniel's collection of rare stamps. Vladimir mailed payment of $10,000 for the stamps to Daniel, but now Daniel tells Vladimir, "I'll never part with these stamps." Are the following remedies available to Vladimir? a. Restitution: Yes; Specific Performance: Yes b. Restitution: Yes; Specific Performance: No c. Restitution: No; Specific Performance: Yes d. Restitution: No; Specific Performance: No

A

Wes, who is an art collector, offered to buy a print from Le Monde Gallery. Le Monde balked at the price, sending Wes a letter of rejection. That day it discovered that the print was not as highly valued as originally thought. Le Monde immediately telephoned Wes to accept his offer. Is there a contract? a. Yes, since the acceptance was received before the rejection. b. No, because the rejection was effective upon dispatch. c. No, because the rejection terminated the offer. d. Yes, because the acceptance is always effective upon dispatch.

A

What happens if the police illegally seize evidence in violation of the Fourth Amendment? a. The evidence will be excluded from use at trial. b. The defendant's arrest is nullified. c. The defendant is entitled to another trial. d. The defendant will be paid for the expenses of his defense.

A

What is required by the substantial evidence test? a. The conclusions reached must be supported by such relevant evidence as a reasonable mind might accept as adequate to support a conclusion. b. It requires the court to try the facts de novo. c. It requires only that the agency had a rational basis for reaching its decision. d. It requires proof beyond a reasonable doubt.

A

When the defendant's property located within a state is seized to obtain payment of a judgment from a court from another state that is unrelated to the property being seized, the jurisdiction over the property is known as __________ jurisdiction. a. quasi in rem b. in personam c. in rem d. forum non conveniens

A

Which of the following are pleadings? a. Complaint, summons, answer, reply. b. Interviews, discovery, witness list, arbitration. c. Summons, depositions, written interrogatories, voir dire. d. Both (a) and (b).

A

Which of the following are the two basic elements to consideration? a. Bargained-for exchange and legal sufficiency. b. Legal detriment and legal benefit. c. Legal sufficiency and legal adequacy. d. Promise and forbearance.

A

Which of the following involves a creditor beneficiary relationship? a. A contract where the insured names a bank with which he has a loan as the beneficiary of a life insurance policy. b. A contract between an employer and a union representing the employees which is made for the benefit of the employees. c. A contract between the owner of a building and the contractor stating that the contractor will pay the contractor's employees at a stated rate. d. A contract between a governmental unit and business for services to be rendered to area citizens.

A

Which of the following is NOT considered to be an alternative method of dispute resolution? a. Special verdict. b. Negotiation. c. Conciliation. d. Mediation.

A

Which of the following is a collateral promise? a. A mother tells a merchant to extend $1,000 worth of credit to her son and says, "If he doesn't pay, I will." b. Andrew promises Donald that if Donald cannot pay his bills, Andrew will. c. A father tells a merchant to deliver a computer to his daughter and says, "Send me the bill. I'll pay for it." d. All of the above are collateral promises.

A

Which of the following is correct regarding the decisions of state trial courts? a. They are generally not reported. b. They are reported in regional reports. c. They are reported in state court reports. d. They are binding upon lower courts based upon the principle of stare decisis.

A

Which of the following is correct with regard to the powers of government in the United States? a. The federal government is a government of enumerated powers. b. The federal government is all-powerful except in cases of state criminal law. c. Legislation enacted by Congress does not need to be based on a specific power granted to the federal government by the Constitution. d. Congress may not enact legislation that affects the states.

A

Which of the following is enforceable without consideration? a. A new promise to pay a debt barred by the statute of limitations. b. An illusory promise. c. A promise to supply all of the materials a manufacturer will need for the production of a certain item for a specified period of time. d. In the majority of states, a promise by a father to pay someone for rendering emergency services to his injured son before the father had arrived at the accident scene.

A

Which of the following is found in the Fifth Amendment to the U.S. Constitution? a. A privilege against self-incrimination. b. A requirement of probable cause. c. A prohibition against cruel and unusual punishment. d. The right to an attorney.

A

Which of the following is least likely to be classified as a necessary item for which a minor will be held liable on a contract? a. A camera. b. School supplies. c. Clothing. d. An automobile.

A

Which of the following is not correct regarding the relationship between an independent contractor and a principal? a. The contractor is liable under respondeat superior. b. The contractor generally contracts to perform services but is not controlled by the principal. c. The right of control is the essential and often decisive factor in determining whether someone is an independent contractor or an employee. d. Under some circumstances, a principal will be vicariously liable for torts committed by a carefully selected independent contractor.

A

Which of the following is not descriptive of the law? a. It is always prohibitory. b. It is pervasive. c. It may be permissive. d. Its function is to regulate human conduct and relations.

A

Which of the following is true about the European Union (EU)? a. The EU has over 500 million citizens. b. The EU currently has thirty members. c. The EU has officially admitted Japan to full membership. d. The EU is now closed to further membership.

A

Which of the following is true regarding an agent who is acting for an undisclosed principal? a. The agent will bind both himself and the principal on most contracts. b. The third party will never be bound in a contract with the principal. c. An undisclosed principal will bind only himself and not the agent. d. Failure to disclose the name of the principal is a form of fraud.

A

Which of the following is true with regard to securities regulation in foreign markets? a. Anti-fraud provisions apply where there is conduct in the U.S. relating to a violation of the federal securities laws. b. Foreign issuers who issue securities must register them in the U.S. unless an exemption is available. c. No specific regulations are allowed because of the act of state of doctrine. d. None of the above.

A

Which one of the following assignments would probably be prohibited by a court? a. Mary is in debt. A credit card company calls and threatens to sue. Mary orally assigns her next bimonthly paycheck to her creditor. b. John is a house painter. He is scheduled to paint Molly's home on Monday. John wakes up Monday morning with a stiff neck. He calls Ed, who is also a painter, to begin the job at Molly's. c. Ron has a contract with Bonett Bank to service their coffee machines. He assigns the remainder of his contract with Bonett to Michelle, who also owns a coffee service. d. All of the above.

A

Which one of the following is NOT one of the torts included within invasion of privacy? a. Nuisance. b. Intrusion. c. Appropriation. d. False light.

A

Will makes an offer to Ike, but before Ike can accept, the state legislature passes a law that makes Will's offer illegal. The new statute: a. automatically terminates the offer. b. has no effect on the offer. c. acts as a condition on the offer. d. acts as a rejection of the offer by the offeree.

A

William agrees to drill a well up to 200-feet deep for John's rural cabin. The contract price is $3,000. After drilling 100 feet, William strikes solid granite rock. He talks to John and explains that this is highly unusual for the area and could not have been anticipated at the time of entering into the contract. He offers to get a special drill, but says it will cost him more money, so that he will be unable to complete the project for the agreed price. Because John is anxious to have the well, he agrees to pay William an additional $1,000 to complete the job. However, once the well is finished, he changes his mind and now says he will pay only the originally agreed-upon amount. What is the result? a. The parties have agreed to a substitute contract which discharges the original contract. John is obligated to pay the additional $1,000. b. The agreement for $4,000 is binding because of provisions of the UCC. c. William is in breach of contract. John need not pay any additional money. d. William is under a pre-existing moral duty to perform at the originally agreed-upon price.

A

on offers to sell his diamond ring to Emily. If Diane overhears the offer and says, "I accept the offer": a. Diane cannot accept because the offer wasn't made to her. b. this is a valid acceptance. c. the offer has not been communicated to the offeree. d. Diane cannot accept because this is an invitation seeking offers and not an offer.

A

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 the above.

B

A and B enter into a contract on January 1 of this year. A's friend C tells A, "The law generally restricts the time within which an action can be brought by either party to a contract." C's statement is: a. false. b. true because of statutes of limitations. c. true because of the law of repudiation. d. true because of covenants not to sue.

B

A conditional acceptance: a. generally accepts the original offer, but provides a way to later avoid contractual obligations. b. is a common type of counteroffer. c. operates as a rejection and not a new offer. d. cannot exist because an acceptance is, by definition, an act that manifests the offeree's willingness to enter into a contract on the terms of the offer.

B

A contract in which both parties exchange promises is a: a. voidable contract. b. bilateral contract. c. unilateral contract. d. quasi contract.

B

A contract of adhesion: a. is automatically unenforceable. b. consists largely of boilerplate provisions, such as a standard-form insurance policy. c. is a contract that exhibits either procedural or substantive unconscionability. d. is a contract containing multiple exculpatory clauses.

B

A contract that binds the offeror to keep an offer open for a specified period of time is known as: a. a offer with reserve. b. an option. c. promissory estoppel. d. a unilateral contract.

B

A court may meet the requirement of jurisdiction over a defendant in all but which of the following ways? a. In personam jurisdiction. b. Voluntary submission to the court's power by the party's filing pleadings with the court. c. In rem jurisdiction. d. Attachment jurisdiction.

B

A crime is: a. a private wrong that necessitates litigation between the victim and the perpetrator. b. any act prohibited by the government or an omission of an act required by public law and made punishable by the government in a judicial proceeding brought by it. c. litigation where the injured party sues to recover compensation for the damages and injury sustained as a result of the defendant's wrongful conduct. d. wrongful conduct as set forth in statutes that constitute the supreme law of the land.

B

A criminal trial is similar to a civil trial, but there are some significant differences. These differences are: a. the defendant is always the government in a criminal trial. b. burden of proof on the prosecution is to prove criminal guilt beyond a reasonable doubt in a criminal trial. c. the defendant is required to testify. d. All of the above.

B

A decision of the Supreme Court of Washington would always be binding on: a. a federal district court in Washington. b. a state trial court in Washington. c. the U.S. Court of Appeals for the 9th Circuit. d. All of the above.

B

A deed ordinarily contains all of the following except: a. a description of the land. b. a description of the consideration. c. the signature of the grantor. d. a description of the quantity of estate conveyed.

B

A newspaper article hints that a certain corporation is a front for illegal activity. The corporation: a. will lose a defamation suit because only natural persons can successfully bring defamation suits. b. will likely win a defamation suit if the statement is untrue. c. will likely lose a defamation suit because the press has an absolute privilege in this type of case. d. can win an invasion of privacy suit even if the statement is true.

B

A points an unloaded gun at B and threatens to shoot. Unobserved by A, C, who is B's wife, witnesses the threat and believes A's gun is loaded and that B is about to die. C pulls out a gun and shoots and kills A. In this case: a. C cannot successfully invoke the privilege of defense of others because A's gun was unloaded. b. C can successfully invoke the privilege of defense of others because of her reasonable belief at the time she shot A. c. C is liable because one can use deadly force only to protect himself. d. C was entrapped into believing her husband was about to be killed, so she has a valid defense.

B

A transaction involving real estate whereby one party deposits a deed or money with a third party who holds the deed or funds until the happening of an agreed upon event is called: a. adverse possession. b. escrow. c. foreclosure. d. abstract of title.

B

A transfer to a third party of a contractual obligation is known as a(n): a. assignment of rights. b. delegation of duties. c. revocability of assignment. d. partial assignment.

B

A voidable contract results when the contract arises from: a. physical duress. b. undue influence. c. fraud in the execution. d. a mutual mistake in the meaning of contractual terms and neither party is to blame.

B

ABC, Inc. calls the Widget Corporation of America to order 400 widgets at $2 a widget. Widget accepts the oral order and then sends out an order confirmation form, with the pre-printed name Widget Corporation of America on the top of the form. The form states that an order has been received for "300" widgets and that it will be filled promptly. a. The confirmation fails to meet the UCC writing requirement, because it isn't signed. b. ABC can enforce the contract for 300 widgets, but not for 400 widgets. c. If ABC signs and returns the form, it will be able to sue for the extra 100 widgets later. d. The contract is enforceable for 400 widgets, because it has been partially performed.

B

Able is involved in an automobile accident and is injured. While he is unconscious, the police call an ambulance which takes him to a hospital. Able is treated at the hospital and released a day later. The hospital sends him a bill for $4,500, which Able refuses to pay, claiming it is too high and he never consented to the treatment because he was unconscious. Able: a. has entered into a unilateral contract with the hospital and therefore will have to pay the bill. b. will have to pay the hospital, because this is a quasi-contractual agreement. c. has entered into an implied in fact contract with the hospital. d. and the hospital have entered into a bilateral contract, the terms of which require that he pay the bill.

B

Adam wants to buy a six-passenger car. The salesman tells him that the two-seat sports car Adam sees on the car lot would be just perfect for six people. Adam test drives the car and then buys it. a. Adam has a valid cause of action for fraud. b. Adam is not entitled to relief based on fraud because he was not justified in relying upon the salesman's representation that the car would seat six people. c. The element of scienter is missing in this fact situation. d. The salesman is in a confidential relationship with Adam.

B

After an FOIA request has been made, an agency has __________ working days within which to indicate whether it intends to comply. a. 3 b. 10 c. 21 d. 30

B

Al owes Tracy $500, due June 1. Al, Tracy, and Ted mutually agree that Ted will pay Tracy instead of paying Al the money Ted owes Al. Such an agreement is an example of: a. an accord. b. a novation. c. a satisfaction. d. a rescission.

B

An agent acts for a(n) __________ principal when the agent appears to be acting on her own behalf and the third person with whom she is dealing has no knowledge that she is an agent. a. unidentified b. undisclosed c. unauthorized d. disclosed

B

An agent is not normally liable on a contract he makes with a third party on behalf of a(n): a. undisclosed principal. b. disclosed principal. c. unidentified principal. d. All of the above are correct.

B

An agent who makes a contract for a disclosed principal whose contracts are voidable for lack of contractual capacity: a. is never liable to the third party. b. can be liable to the third party under certain circumstances. c. is liable to the third party only if the agent warrants the principal has capacity. d. is ordinarily personally liable to the third party if the principal avoids the contract.

B

An agent's duty to inform: a. applies to material and nonmaterial facts relating to the agency. b. does not apply if providing facts to the principal would violate a superior duty owed by the agent to another person. c. arises because notice to an agent does not constitute notice to the principal. d. All of the above.

B

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.

B

An employer directs his vice-president of marketing to fix prices with their company's competitors. The employee does so. Under these facts: a. only the employee is criminally liable. b. both the employee and the employer are criminally liable. c. only the employer is criminally liable. d. neither the employee nor the employer is criminally liable.

B

Andrew, an attorney, has a case that was recently heard by the United States Court of Appeals. He would like to have the United States Supreme Court hear the case. One way by which the U.S. Supreme Court may review the case is by: a. forum non conveniens. b. writ of certiorari. c. en banc appeal. d. motion for supreme judgment.

B

Anita owes Brad $75,000. Brad signs a written statement granting Cal a gratuitous assignment of his rights from Anita. If Brad dies prior to delivering the statement to Cal: a. Brad's death has no effect on the assignment. b. the assignment is terminated upon Brad's death. c. the signing of the statement makes the assignment irrevocable. d. the assignment is invalid, because it is gratuitous.

B

Annette entered into a contract with a local truck dealer to have a new truck delivered to her daughter, Sue, as a graduation present. In this contract, Sue is: a. an incidental beneficiary. b. a donee beneficiary. c. a creditor beneficiary. d. an assignor.

B

Appellate judges can reverse a decision of the trial court: a. where any error below is found. b. only where there was a prejudicial error that substantially affected the appellant's rights and duties. c. only where the outcome of the case is clearly wrong. d. where the losing party desires a new trial.

B

Archie bets his friend Jerry $100 that the Packers will win the next Super Bowl. This is an: a. unconscionable contract and therefore illegal. b. illegal wagering agreement. c. agreement to obstruct justice and therefore illegal. d. illegal restraint of trade.

B

Arlene signs an employment contract to work for a local business, Davis Restoration, for one year but is wrongfully discharged after three months. In order to recover from Davis full pay for the remaining nine months of her contract, Arlene: a. must accept employment 60 miles away if that is the only available similar job. b. must use reasonable efforts to mitigate her damages by seeking other employment, even if she does not find another job. c. need only file suit against Davis Restoration since they are contractually bound to pay Arlene for one year of employment. d. must accept a radically different type of job if that is all she can find.

B

Arnold wrote a defamatory letter regarding Bill which he did not show to anyone, but which he posted on a bulletin board in the laundromat. Arnold has committed: a. the tort of slander. b. the tort of libel. c. neither libel nor slander, because there has been no publication of the letter. d. the tort of false light.

B

Article III of the Constitution states that the judicial power of the United States shall be vested in one Supreme Court and: a. such lower courts as the Supreme Court establishes. b. such lower courts as Congress may establish. c. a system of special courts, district courts, and courts of appeals. d. a system of lower federal courts and such state courts as each state legislature provides.

B

Ashley contracted to perform on her horse, Coronation, in the opening ceremonies of the World Equestrian Games. If, before the event, Coronation pulls a tendon in its leg and Ashley has to cancel her appearance, this is a case of: a. subjective impossibility, which does not excuse Ashley from liability for breach of contract. b. objective impossibility, which discharges Ashley's contractual duty. c. frustation of purpose, which does not discharge Ashley's contractual duty. d. commercial impracticability, which excuses nonperformance.

B

Assume that Denmark, a member of the European Community, is contemplating the enactment of a protective tariff for its fledgling electronics industry due to domestic political and economic pressures. Assume further that the EC has a tariff that it has also enacted for all electronics manufacturers within the EC that is considerably lower than the one that is being proposed in Denmark. The policy behind the lower EC tariff is to promote freer trade even at the risk of destroying some of the weaker manufacturers in that organization. In this situation: a. Denmark could enact the higher tariff since EC members give up no authority to the organization in regulating trade and business practices. b. Generally, when EC economic policies conflict with the laws of member nations, EC law will prevail. Thus, Denmark's tariff may be illegal. c. Denmark could petition the United Nations Council of Economic Policy and if it concurs with Denmark, the EC tariff policy would be overridden. d. Assuming Denmark is a signatory to GATT, the General Agreement on Tariffs and Trade, it could retain its higher tariff since the purpose of GATT is to protect domestic industries by promoting higher tariffs.

B

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

B

Barbara, an antique dealer, intentionally misrepresents the value of an antique chest of drawers, as $6,000 when she has reason to know the value is considerably less. Margaret agrees to buy it for $5,500. It is worth $2,500. In a state that uses the "out-of-pocket" rule, Margaret's damage award would be: a. $3,500. b. $3,000. c. $500. d. $2,500.

B

Barry's Sport Shop calls Champion Tee Shirt Company to order 200 designer tee shirts at $2 per shirt. The next day, Barry decides he can easily sell 100 more. Before the order is filled, he calls to change the order to 300 tee shirts. Champion sends 200. Can Barry force Champion to send the additional 100? a. No, because there is no consideration for the extra 100 shirts. b. No, because Barry does not have a writing signed by Champion Tee Shirts. c. Yes, because this is a subsequent modification of the original contract. d. Yes, because Champion Tee Shirts is a merchant within the meaning of Article 2 of the UCC.

B

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 out by the company until Wednesday at 8 a.m. At what time does the law consider the acceptance to be effective? a. At 10 a.m. on Tuesday. b. At 11 a.m. on Tuesday. c. At 8 a.m. on Wednesday. d. At the time Bart receives the letter.

B

Because documents affecting ownership of property are recorded, a chronological record of transactions concerning the property can be obtained by a(n): a. warranty deed. b. title search. c. attorney's opinion. d. assumption of a mortgage.

B

Because of the increasing complexity of the social, economic, and industrial life of the nation, the scope of __________ has expanded enormously. a. common law b. administrative law c. procedural law d. equity

B

Bob owns a business delivering coffee and donuts within the downtown area of the city. Smith Co. calls him to deliver a large quantity of his products to their local office. While taking a coffee urn through the Smith Co.'s office, Bob drops it on Lester, scalding him. Who is liable? a. Smith Co. and Bob are liable. b. Bob alone is liable. c. Lester has to absorb the cost himself since he assumed the risk by working at Smith Co. d. Only Smith Co. is liable.

B

Bodily contact that is harmful or offensive can give rise to the tort of: a. assault. b. battery. c. defamation. d. appropriation.

B

Brian makes a material misrepresentation of fact regarding his horse to Rosalind while out riding one day. Later that day, Rosalind makes an offer to buy the horse which Brian accepts, without correcting his earlier misrepresentation of fact. In this case: a. Brian may avoid the contract. b. Rosalind may avoid the contract. c. either or both Brian or Rosalind may avoid the contract. d. neither Brian nor Rosalind may avoid the contract.

B

Busby contracts to build a house for Connell. Busby finishes approximately half of the house and quits. Connell files suit against Busby. Which remedy is not available? a. Compensatory damages. b. Specific performance. c. Reformation. d. Nominal damages.

B

Byron and Merv enter a contract for the sale of a computer. If Merv breaches the contract and Byron waits until the time specified in the statute of limitations has passed, the contract is now: a. void. b. unenforceable. c. voidable. d. executory and enforceable.

B

Cameron doesn't like Bradley, so at a cocktail party he spread untrue rumors about Bradley's lifestyle. These rumors harm Bradley's reputation in the community. a. Cameron is guilty of libel. b. Cameron is guilty of slander. c. Bradley does not have a defamation suit against Cameron. d. Cameron is protected by the First Amendment to the Constitution.

B

Carl threw a bomb into the office of his insurance agent, intending to kill the agent because the company had disallowed his claim. The agent wasn't in the building, but the bomb seriously injured his secretary, who was working in the office. a. Carl cannot be liable to the secretary for any torts because he did not intend to hurt her. b. If Carl knew the secretary was in the office, even if he didn't intend to injure her, his intent to harm the agent is transferred to the secretary who can sue Carl for her injuries with an intentional tort cause of action. c. Carl has committed a crime, but he is not liable for any torts. d. Carl has committed the tort of intrusion.

B

Caroline signs a contract to work as a sales rep for Incellmed Corporation for a period of two years. This contract is governed by: a. Article 2 of the UCC. b. state common law. c. federal statute. d. the law of quasi contract.

B

Carolyn agrees to sell Marianne an antique handmade lace tablecloth for $1,500. When Carolyn discovers that her cousin wants it too, she breaks the contract with Marianne. Marianne can ask the court to order: a. injunctive relief. b. specific performance. c. restitution. d. equitable rescission.

B

Charlene hears about a reward being offered by the local television station for information leading to the arrest and conviction of a local rapist. She supplies the requested information and the suspect is then arrested and convicted. In this case: a. Charlene cannot collect the money unless the offer was specifically made to her by the station. b. the offer by the television station was an offer made to the general public to enter into a unilateral contract, which offer Charlene has accepted. c. because Charlene failed to notify the station of her intention to supply the information before actually doing so, she has not accepted their offer. d. Charlene was just doing her duty as a citizen and has no right to the payment of any money.

B

Chris receives a printed form in the mail from Wyandott Heating & Air indicating that he has placed a telephone order for a $600 heater. He doesn't recall placing the order. Which of the following is correct? a. Wyandott can hold Chris to the order. b. Chris can hold Wyandott to the order. c. Neither party is bound, because there is no signed writing. d. Chris is bound if he makes no objection within ten days.

B

Claudia's baby daughter Karynne is snatched from her arms at the grocery store. The kidnapper threatens to drop the baby if the store does not hand over the contents of the vault. Claudia may: a. trip the kidnapper, because she is limited to nonlife-threatening force. b. shoot the kidnapper, since she can protect the baby in the same way as she can protect herself. c. not seriously harm the kidnapper, since she is not in danger. d. only call the police, since she cannot take the law into her own hands.

B

Commercial speech: a. would not include an advertisement for a service. b. must concern lawful activity and not be misleading in order to receive First Amendment protection. c. is more valuable than other varieties of speech. d. All of the above.

B

Concurrent federal jurisdiction could exist for cases involving: a. admiralty. b. treaties of the United States. c. antitrust. d. All of the above.

B

Contracts induced by threats of __________ are voidable, regardless of whether the coerced party has committed an unlawful act. a. civil prosecution b. criminal prosecution c. tortious conduct d. a lawsuit to recover a debt

B

Courts of equity: a. have remained separate court systems in nearly every jurisdiction in the United States. b. ordinarily do not involve juries. c. in all cases recognized new rights that were not enforceable at common law. d. All of the above.

B

Damages recoverable for the tort of disparagement may include: a. monetary losses that indirectly result from the impairment of the marketability of the property disparaged. b. expenses for the cost of notifying customers. c. Both (a) and (b). d. None of the above.

B

Don has an employment contract with Dunkirk Ice Cream. He sells ice cream and novelty ice cream products. He has nine children and doesn't make enough money, so he decides to see if another dairy will hire him, too. "After all," he reasons, "most stores carry four or five different brands." His employment contract prohibits him from competing. If Don sells for another dairy in addition to Dunkirk, will he be in trouble under his contract? a. No, it is unenforceable as against public policy. b. Yes, it is likely to be enforceable during employment. c. No, the prohibition against competing is enforceable only after he quits Dunkirk. d. A court would have to rule on the enforceability of the covenant not to compete since courts are reluctant to enforce such covenants during a period of employment.

B

E-Sign specifically excludes: a. all transactions covered by the UCC. b. wills and matters of family law. c. transactions relating to foreign commerce. d. All of the above.

B

The intentional dispossession or unauthorized use of the personal property of another is known as: a. conversion. b. trespass to personal property. c. fraud. d. stealing.

B

Elmer wrote a letter to his friend Fred offering to sell Fred an 80-acre farm for $200,000. After mailing the letter, Elmer learns that the farm is actually worth $300,000 and changes his mind about selling. In this case, Elmer: a. has made a firm offer to Fred which cannot be revoked. b. can revoke his offer at any time before Fred accepts it, because there is no consideration to keep it open. c. must keep the offer open, because this is an option contract. d. cannot, because of promissory estoppel, revoke his offer to Fred.

B

Fay, age 17, ordered a pair of skis on the installment plan. She paid $20 every month until she turned 18, the age of majority. The next day, she sold the skis to Sharon and disaffirmed the contract. Fay is: a. still liable since she had to disaffirm before her 18th birthday. b. still liable because selling the skis amounted to a ratification. c. still liable because she used the skis. d. not liable because skis are not necessaries.

B

Federal legislation that requires agencies to maintain in their records only that information about an individual that is relevant and necessary to accomplish an agency function and to collect information to the greatest extent practicable directly from the individual is the: a. FOIA. b. Privacy Act. c. Government in the Sunshine Act. d. APA.

B

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 block away. The glass injured Ida, who was working inside the building. John, who was walking down the street near the site of the collision, was seriously burned as a result of the explosion. In this case: a. Garnett's negligent driving is the proximate cause of Ida's injury. b. Garnett's negligent driving is the proximate cause of John's injury. c. both Ida and John are within the zone of danger of the collision. d. All of the above.

B

Howard needs a truck to pull a 2,000-pound trailer. Gordon tells Howard, "My truck will pull a 2,000 pound trailer with ease." Relying on Gordon's statement, Howard buys the truck, but it will not pull a 2,000-pound trailer. If Gordon did not intend to deceive and Howard sues for nonfraudulent misrepresentation, he can ask for: a. punitive damages, but not out-of-pocket damages. b. out-of-pocket damages, plus consequential damages. c. out-of-pocket damages plus punitive damages. d. nominal damages because Howard should have known the capacity of the truck.

B

If the judge denies a defendant's motion for __________, then the defendant has the opportunity to present witnesses. However, if the judge grants the motion, then the defendant automatically wins the case and does not need to present any evidence. a. a new trial b. a directed verdict c. an offer of proof d. change of venue

B

In order to form a contract, the parties must: a. manifest their agreement subjectively. b. manifest their agreement objectively. c. indicate solely through the written word their intent. d. create a formal document.

B

In the Giannetti v. Cornillie case, the court found: a. the modification of the mortgage amount, unlike the purchase price, was not a material term of the contract. b. the modification of the mortgage amount was a material term, a counteroffer which rejected the original offer. c. the doctrine of promissory estoppel required the court to grant plaintiff's motion for specific performance. d. in order for an acceptance to create a binding contract, it need not strictly comply with the terms of the offer as long as the parties intended to form a contract.

B

In the case of Speelman v. Pascal, the court held that: a. a gratuitous assignment is terminated by the assignor's death, even if the assignor made an effective delivery of the assignment prior to his death. b. assignments of rights to sums that are expected to become due to the assignor are enforceable. c. assignments cannot be made of sums that are not presently due but are expected to become due in the future. d. personal contracts are not assignable.

B

In which of the following cases would an oral contract be enforceable without a written memorandum? a. Ron orders three custom-made suits. b. Michelle calls an employment agency in Paris to arrange for maid service for her three-month Parisian vacation. c. Anna orders a top-of-the-line computer over the phone. d. Catherine calls Lucky Dude Ranch to purchase the championship race horse they have advertised in the paper.

B

In which of the following situations would a court be likely to find that the witness to the situation had an affirmative duty to act? a. Where a pedestrian witnessed an auto accident in which one of the drivers was injured. b. Where an airline attendant witnessed one passenger threaten another passenger. c. Where the driver of a car saw a two-year-old toddler wandering in the middle of a busy street. d. All of the above are situations where legally there is an affirmative duty to act.

B

In which of the following ways does a state constitution differ from the U.S. Constitution? a. State constitutions are often more restrictive of rights than the U.S. Constitution. b. A state constitution can guarantee rights beyond those provided in the U.S. Constitution. c. A state constitution is generally amended less frequently than the U.S. Constitution. d. State constitutions tend to be more general than the U.S. Constitution.

B

Jack moved from New Hampshire to Florida and decided to have an air conditioner installed in his car. After it was installed, Jack received a bill for $1,200. Jack called the dealer and told him he'd never heard of this service costing more than $500. They argued, but the dealer finally agreed to take $900. Is the agreement enforceable? a. Yes, there is no way for the dealer to get the extra money anyway. b. Yes, there is consideration for the modified amount. c. No, there is no consideration and the dealer can sue for the extra $300. d. No, there is an implied contract to pay the dealer whatever he billed Jack.

B

Jack was fired by Bob but decided to try to win back his job as agent by getting a big new contract. He approached Sharon, a new client, and made a pitch to sell Bob's product. Sharon agreed to buy 100. Jack tells Bob. What are the legal consequences? a. Bob has to hire Jack again and then make the deal. b. Bob would have to ratify the deal to get the benefit of the contract. c. Bob would have to negotiate the deal with Sharon himself. d. Jack would forfeit his commission if Bob took the contract.

B

Which of the following is correct with regard to duress? a. It always renders a contract void. b. Duress by improper threats or acts is the more common form of duress. c. The wrongful act must be either a crime or a tort in order to be considered wrongful. d. All of the above.

B

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 option. b. James has committed physical duress against Kenneth. c. This is an example of economic duress. d. All of the above.

B

Jan promises Eli $4,000 for one of his original paintings on the condition that she receives $1 million from her mother's will. Jan's promise: a. is illusory. b. is legally sufficient unless Jan knows she cannot inherit the $1 million. c. is a conditional promise, which is not sufficient to form consideration. d. is legally inadequate, and the courts will therefore not enforce it.

B

Janet is called for jury duty and is selected for possible service on a jury. However, when the defendant's attorney sees her, he notices that she is wearing a green dress. Both the defendant and the defendant's attorney hate green dresses, so they strike her name from the jury. This is: a. a valid challenge for cause. b. a valid peremptory challenge. c. not a valid challenge. d. a valid challenge for cause, but it can be overcome if the plaintiff's attorney makes an offer of proof to the judge.

B

Jeb submits a bid to construct a student union building for the local community college. He realizes after submitting the final bid that he forgot to include the cost of the window casings for the entire building. He may: a. revoke his bid at any time. b. not revoke his bid due to the statutory irrevocability of the bid. c. reject the offer of the college to build the student union when the college chooses his bid because it is the lowest. d. refuse, based on the windfall theory, to put in the window casings even if they were part of the bid specifications put out by the college.

B

Jessup and Lange are having a dispute regarding some property. They want to have a binding resolution to their dispute, but they would prefer to have the dispute handled privately and by someone with special expertise. The best form of dispute resolution for their problem would be: a. litigation. b. arbitration. c. mediation. d. a summary jury trial.

B

Joanne, a minor, sold her laptop computer to Bruce, an adult. Bruce then sold the laptop to Anna, also an adult, who had no knowledge of the fact that the original owner was a minor. Under the Uniform Commercial Code, Joanne may: a. avoid her contract with Bruce and recover her laptop. b. not avoid her contract with Bruce and may not recover her laptop. c. register with the UCC filing department and require that if Anna sells the laptop she must give Joanne the rights of first refusal. d. None of the above.

B

Losses due to computer crimes are estimated to be: a. in the millions of dollars. b. in the tens of billions of dollars. c. in the trillions of dollars. d. decreasing because of stricter security measures now in place.

B

Lyle offers to sell his house to Dennis for $95,000. Dennis responds, "I will pay you $95,000 for the house if you first paint the second floor." This response could best be described as: a. an acceptance. b. a counteroffer. c. a rejection. d. an invitation.

B

Lynne agrees to buy Harriette's farm for $200,000 and puts $20,000 down. Then Lynne learns she is allergic to hay and repudiates the contract. If Harriette can sell the farm in a good faith transaction for $190,000 a month later, she may: a. keep Lynne's $20,000. b. keep $10,000 of Lynne's down payment. c. not keep any of the down payment money. d. sue for specific performance.

B

Most of the protections provided by the U.S. Constitution and its amendments apply only to governmental action, which is referred to as: a. due process. b. state action. c. equal protection. d. separation of power.

B

Most states have adopted the: a. title theory, which gives the mortgagor the right of ownership and possession. b. lien theory, under which the mortgagor retains title and is entitled to possession to the exclusion of the mortgagee, even if the mortgagor defaults. c. title theory, which brings no right of redemption. d. position that the person who owns property subject to a mortgage will not be liable to the creditor for "waste."

B

Most states have statutes protecting merchants from charges of false imprisonment when detaining suspected shoplifters as long as the merchant detains the suspect: a. without physical discomfort. b. with probable cause, in a reasonable manner, and for not more than a reasonable time. c. for no more than 30 minutes. d. in a way that will not cause embarrassment or physical injury to the suspect.

B

Much of federal, state, and local law in this country has been established by __________, which people label as the "fourth branch of government" because they possess tremendous power. a. executive committees b. administrative agencies c. the courts d. legislatures, including Congress

B

NAFTA's objectives include to: a. create trade barriers between the U.S., Mexico, and Canada. b. increase investment opportunities. c. enforce real property rights. d. All of the above.

B

On November 1, Paula and Roberta enter into a contract where both parties are obligated to perform on December 31. On December 1, Paula tells Roberta, "I can, in no way, perform my duties in our contract." This statement is: a. a material alteration. b. anticipatory repudiation. c. a nonmaterial breach since the statement is made before December 31. d. an accord.

B

Pat and Sally started a charcoal fire for Sally's backyard barbecue and left it uncovered. Then Sally went into the kitchen to make hamburger patties. While Sally was inside, Pat backed up to catch a football and hit the grill, knocking the coals onto his feet. In a pure comparative negligence state, who is liable? a. Sally is liable for ALL of Pat's injuries. b. Sally is liable for Pat's injuries in proportion to the degree of fault or negligence found against her. c. Sally is not liable for any of Pat's injuries. d. Sally is liable for Pat's injuries only if Pat was more negligent than Sally.

B

Pat bought a cotton sweater at Ivey's Fashion Store. Sue, the salesperson, told her the sweater was guaranteed not to shrink if washed in cold water by hand. Pat washes the sweater as directed, and it shrinks. Which of the following is correct? a. Pat has no recourse against the store, because it was only the salesclerk who misrepresented the sweater. b. Sue has apparent authority to make warranties such as the one that she made. Therefore, the store is bound. c. If Sue is only a part-time employee, Ivey has no responsibility for misrepresentations she makes. d. Salesclerks are usually independent contractors. Thus, there is no liability on the part of Ivey.

B

Paul, a police officer, is working as an undercover drug agent. He enrolls in classes at the local university where he meets several students in business administration and invites them to come to his house for a party. No mention is made of any drugs, but he does say he will have a keg of beer. Shortly after his guests arrive, he gets out some marijuana and offers it to the group. All of them refuse except for Sam, who has never tried it before. When Paul encourages Sam to try it and Sam lights up the joint, Paul arrests Sam for possession of a controlled substance. In this case, Sam: a. is clearly guilty as charged. b. can raise the defense of entrapment and argue that Paul has enticed him to commit a crime he would not have done otherwise. c. can use the defense of duress. d. can use the Fourth Amendment to exclude the marijuana as evidence that has been illegally seized.

B

Prentice and Mercedes are partners in a catering business. The law of agency: a. has no significance for their business. b. is important to their business because both Prentice and Mercedes are agents of the partnership and as such have the authority to represent and bind the business in all usual transactions of that partnership. c. will only affect their business if they hire employees. d. will only affect their business if they hire independent contractors.

B

Procedural due process pertains to governmental decisions depriving a person of all the following except: a. life. b. equal protection. c. liberty. d. property.

B

Randy, a minor, buys a new four-wheel drive truck from the Jones Dealership. Randy sells this truck to his cousin, Steve, who is an adult. Steve conveys this vehicle to Arthur Smith. Arthur does not personally know Steve or Randy. Randy may: a. recover the vehicle from Mr. Smith. b. not recover the vehicle from Mr. Smith. c. hold Steve liable in tort. d. recover the reasonable value of the vehicle but not the vehicle itself.

B

Relationships that may lead to a court's careful scrutinization of contracts between the parties to make sure undue influence was not present include all but: a. agent and principal. b. salesperson and customer. c. parent and child. d. doctor and patient.

B

Robinson Wiring Co. submits a written offer for Turner Construction's use as part of its bid as a general contractor for an office complex. Robinson knows Turner is relying on Robinson's bid. Robinson: a. can revoke its offer at any time until it is notified that Turner's bid has been accepted. b. cannot, under the doctrine of promissory estoppel, revoke its bid even prior to acceptance. c. cannot revoke its offer since it is a "firm offer." d. can revoke its offer for a reasonable time under the doctrine of "commercial reasonableness."

B

Rose is working hard on Arlin's mayoral campaign. She thinks that just a few more votes could win the election, so she promises to pay her friend Violet $50 if she will register and vote for Arlin. Violet does so, but Arlin loses the election, and Rose now refuses to pay. Rose's agreement to pay Violet: a. is enforceable. b. is unenforceable and opposed to public policy. c. is an agreement to obstruct the administration of justice. d. is an unconscionable contract covered by the UCC.

B

Rulemaking powers of federal agencies are primarily governed by the: a. SEC. b. APA. c. FCC. d. NHTSA.

B

Russell and Joe make a contract for Russell to manufacture five leather chairs of a specified design. Prior to their manufacture, the factory is destroyed in an accidental fire that is no one's fault. If the chairs are available from other sources: a. Russell must supply the chairs, even if he must buy them elsewhere. b. Russell's duty to deliver the chairs is discharged by the destruction of the factory. c. Russell has materially breached the contract if he fails to deliver the chairs. d. Two of the above, (a) and (c).

B

Sam has agreed to sell a warehouse to Jordan for $150,000. The contract says that Sam will convey to Jordan whatever interest he has in the property, but does not state that he has any interest. Jordan is entitled to a(n): a. insurable deed. b. quitclaim deed. c. general warranty deed. d. special warranty deed.

B

Sarah is planning to incorporate a new landscaping company, "Evergreen and Growin'." She has held herself out as an agent for Evergreen and has contracted to buy a truck, tools, fertilizer, and seed and also has entered into a lease on behalf of Evergreen for an office. When she fails to get the loan from the bank, she cannot start the business, so she cancels all the contracts. What are the consequences? a. Sarah can cancel all the contracts with no personal liability if she told them she was acting as an agent and expressly warranted that she would not be responsible. b. Sarah may be held personally liable on the contracts because she misrepresented to third parties that she had authority to make contracts on behalf of a non-existent corporation. c. Since the company never existed, she gave no implied warranty. d. Sarah will be held liable for the contracts only if she ever gets the loan.

B

Sarah joined a religious cult while a student at college. Her father hired a deprogrammer who spent several weeks with her, during which they occasionally went on outings. After Sarah met with her boyfriend one weekend, she rejoined the cult and sued her father and the deprogrammer for false imprisonment. In this case: a. Sarah will win because this is clearly false imprisonment. b. Sarah will lose because she was not confined within fixed boundaries, she was not harmed by the deprogrammer's presence, and she had a reasonable means of leaving. c. Sarah has committed the tort of malicious prosecution. d. Sarah's parents are guilty of intrusion but not of false imprisonment.

B

Sarina goes to Marlin's Department Store to look for clothes. The store happens to be in the process of remodeling, and there is a lot of clutter in the aisle. Sarina trips over the clutter and is injured. Under the Second Restatement, Sarina's status with regard to the store is that of: a. licensee. b. business visitor. c. public invitee. d. trespasser.

B

Scienter is a legal term which means: a. that a buyer has justifiably relied upon the seller's representation. b. that the seller had knowledge that his statements were false and the statements were made with the intention to deceive. c. sales puffery. d. All of the above.

B

The intermediate equal protection test: a. does not require governmental classification to bear a substantial relationship to an important governmental objective. b. eliminates the strong presumption of constitutionality that exists under the rational relationship test. c. does not allow taking into legislative consideration the natural physical differences of gender. d. requires that men and women be treated exactly the same with regard to governmental action.

B

Scott, a minor, sells his digital camera to Megan, who then sells it to Sherry. Under these circumstances: a. Scott retains the power of avoidance of the contract, since he is a minor, even after the property is sold to Sherry. b. if Sherry is a good faith purchaser for value and she buys the camera before Scott elects to rescind, no rescission is permitted. c. Megan and Sherry both received a voidable title regardless of whether they contracted in good faith. d. if Scott wants to rescind the transaction after the sale to Sherry, a good-faith purchaser for value, he has no remedy or recourse.

B

Sean has a right against Tanner and assigns it for value to Megan. Later, Sean gives Tanner a release. Megan: a. will be unaffected by Sean's action. b. may recover damages from Sean for breach of an implied warranty. c. may recover damages from Tanner for breach of an implied warranty. d. has lost her right and has no remedy.

B

Steven makes a material misrepresentation of fact regarding his motorcycle to Thelma who agrees to buy the motorcycle based upon the misrepresentation. This contract is: a. void. b. voidable. c. executed. d. unenforceable.

B

The President of the United States has the authority to issue laws, which are called: a. Restatements of law. b. executive orders. c. Constitutional amendments. d. codes.

B

The Sarbanes-Oxley Act has all but which of the following provisions? a. Creating a five-person Accounting Oversight Board with authority to review and discipline auditors. b. Creating severe civil and criminal penalties for enterprises that engage in the commission of two or more predicate acts within a period of ten years. c. Increasing the penalties for existing federal crimes and creating new criminal offenses. d. Adding new financial disclosure requirements.

B

The Supreme Court interprets the Commerce Clause: a. narrowly. b. as granting virtually complete power to Congress to regulate the economy. c. as restricting Congress to the coining of money and taxation. d. to mean that the Court may invalidate legislation enacted by Congress when the activity affects the individual states' regulation of their own role in interstate commerce.

B

The U.S. Constitution reserves to the states or to the people: a. powers also delegated to the federal government by the Constitution. b. the powers the Constitution does not prohibit to the states. c. police power. d. employee safety matters.

B

The Uniform Commercial Code provides that a court may scrutinize every contract for the sale of goods to determine whether, in its commercial setting, purpose, and effect, the contract is: a. exculpatory. b. unconscionable. c. usurious. d. None of the above.

B

The United States belongs to which multinational treaty for patent protection? a. The Madrid Protocol. b. The Paris Convention for the Protection of Industrial Property. c. The Berne Convention. d. The WIPO Treaty.

B

The __________ and __________ Amendments respectively prohibit the federal and state governments from depriving any person of life, liberty, or property without due process of law. a. First and Tenth b. Fifth and Fourteenth c. Fourth and Fourteenth d. Fourteenth and Fifth

B

The __________ is composed of a distinguished group of lawyers, judges, and law teachers who assumed the task of preparing "an orderly restatement of the general common law of the United States." a. New York City Bar b. American Law Institute c. National Conference of Commissioners on Uniform State Laws d. National Reporter System

B

The branch of public law that deals with the various regulatory functions and activities of agencies of the government is: a. criminal law. b. administrative law. c. Constitutional law. d. substantive law.

B

The concept of consideration in contract law includes: a. that each party to a contract must unintentionally exchange a legal benefit. b. an inducement to each party to make a return exchange. c. that each party takes out an insurance bond if the possibility of damages is above $500. d. All of the above.

B

The court in the Weichert Co. Realtors v. Ryan case held that the performing party was entitled to recoup the reasonable value of the services rendered under: a. an express contract. b. quantum meruit. c. promissory estoppel. d. Article 2 of the UCC.

B

The courts are likely to provide remedies in all but which of the following cases? a. A person refuses to return your friend's book. b. A stranger refuses to help rescue a drowning child. c. A person pushes a stranger into the lake. d. A driver maneuvers recklessly on a busy street.

B

The crime of larceny includes in its definition: a. the nontrespassory taking and control of personal property. b. the trespassory taking and carrying away of personal property. c. assault. d. the taking and control of personal or real property.

B

The criminal intent necessary to commit a crime is known as: a. actus reus. b. mens rea. c. the M'Naghten test. d. malice aforethought.

B

The decision of an equity court is called a(n): a. judgment. b. decree. c. stare decisis. d. inquisition.

B

The definition of "discharge by breach" is: a. performance that is incomplete but that does not defeat the purpose of the contract but entitles the injured party to damages. b. wrongful failure to perform the terms of a contract that gives rise to a right to damages by the injured party. c. a breach that prevents performance by either party. d. None of the above.

B

The definition of commercial reasonableness as used in contract law includes: a. the business judgment of expert business managers. b. that the practices customary in the type of transaction involved be used as a standard. c. the requirements to develop creative and innovative solutions never before used in a particular industry. d. None of the above.

B

The doctrine of __________ is the basis for an employer's liability for an unauthorized tort committed by an employee within the scope of employment. a. indemnification b. respondeat superior c. apparent authority d. direct liability

B

The exercise of the power to avoid a contract is known as: a. ratification. b. disaffirmance. c. ab initio. d. restitution.

B

The law would most likely impose a duty of disclosure in a transaction between: a. a salesperson and customer. b. business partners. c. a contractor and a homeowner seeking bids on repairing a roof. d. a seller of real property and a potential buyer who knows the property has greater value than the seller realizes.

B

The legal doctrine upon which Justice Cardozo based his decision in the Palsgraf case is the doctrine of: a. res ipsa loquitur. b. foreseeability. c. negligence per se. d. assumption of the risk.

B

The legislative branch's primary check on both the judicial and executive branches is the power to: a. veto executive or judicial decisions. b. confirm appointments to the courts and agencies. c. appoint judges and cabinet officials. d. None of the above.

B

The local supermarket has a large, glass front door which is well lighted and plainly visible. Nelson, who is new in the neighborhood, mistook the glass for an open doorway and walked into it, shattering the door and injuring himself. Under the Second Restatement, the store: a. is strictly liable to Nelson. b. is not liable to Nelson since the door was well lighted and plainly visible. c. would be liable under the doctrine of res ipsa loquitur. d. has no duty to Nelson.

B

The party who files an appeal is the: a. plaintiff. b. appellant. c. appellee. d. defendant.

B

The power to convert private property to public use is known as: a. allocation. b. eminent domain. c. after-acquired title. d. enabling.

B

The principle of __________ concerns the compatibility of a law or governmental action with fundamental constitutional rights such as free speech. a. procedural due process b. substantive due process c. the rational relationship test d. equal protection

B

The privilege to play tennis and socialize at the Capital City Country Club (CCCC) is obtained through application, references, resumes, and fees. Steven and Chanel want to assign the remaining 4 years of their 5-year membership to Charles and Prissy so that Steven and Chanel may join the posh Silver Hawk Tennis and Polo Club. CCCC sues to enjoin Steven and Chanel from assigning their membership. CCCC will most probably: a. not prevail because all contract rights are assignable. b. prevail because the parties intended the contract to be personal and non-assignable. c. prevail because assigning the membership contract would violate public policy. d. None of the above.

B

The procedural stage of a lawsuit after the pleadings but before trial is the: a. peremptory challenge stage. b. discovery stage. c. special verdict stage. d. offer of proof stage.

B

The process whereby a court "rewrites" or "corrects" a written contract to make it conform to the true intentions of the parties is: a. injunction. b. reformation. c. specific performance. d. rescission.

B

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 capacity.

B

The rule which permits the jury to infer both negligent conduct and causation from the mere occurrence of certain events is: a. proximate cause. b. res ipsa loquitur. c. causation in fact. d. comparative negligence.

B

The seller contracts directly with the buyer in the other country under a: a. multilateral trade agreement. b. direct export sale. c. flow of trade. d. None of the above.

B

Tim and Steve are roughhousing in Tim's parents' front yard when Steve intentionally pushes Tim onto the neighbor's property. The trespasser(s) is/are: a. Tim. b. Steve. c. both Tim and Steve. d. neither Tim nor Steve.

B

Tim mails an offer to Brian on June 15. Brian receives the offer on June 16. Tim mails a revocation of the offer on June 17. Brian mails a letter of acceptance on June 18. Brian receives the revocation on June 19. Tim receives the letter of acceptance on June 20. Was a contract formed? a. Yes, on June 16. b. Yes, on June 18. c. Yes, on June 20. d. No, the offer was revoked before acceptance.

B

To resolve a lawsuit, a court must have __________ different types of jurisdiction. a. one b. two c. three d. four

B

Two absolute defenses to the tort of defamation are: a. truth and self-defense. b. truth and privilege. c. privilege and self-defense. d. truth and defense of property.

B

Two boys held up a liquor store at gunpoint and ran off with a bag of money. The police saw them run into Jill's apartment building where there are only four apartments off a common hall and no apparent way out of the building but the front door. The police knock on Jill's door. She says she's the only one there. The police can: a. search the apartment without a warrant because Jill voluntarily answered the door. b. search the apartment without a warrant because they are in hot pursuit of the thieves. c. not search the apartment, because they have no reason to believe that the boys are in Jill's apartment rather than the others. d. not search the apartment because voluntary consent to enter is necessary.

B

Under the Foreign Sovereign Immunities Act a foreign sovereign is: a. immune from all suits in the United States. b. immune from suits in the United States involving sovereign or public acts, but not private or commercial acts. c. not immune from any type of suit in the United States. d. None of the above.

B

Under the Third Restatement, possessors of land: a. owe varying duties to entrants onto the land depending on their status. b. owe the same duty of reasonable care to all entrants on the land except for a category of entrants called "flagrant trespassers." c. owe "flagrant trespassers" a duty of reasonable care, but owe others a duty to warn them of dangerous activities and conditions of which the possessor has knowledge or reason to know and which the entrant does not know and is unlikely to discover. d. have the duty of reasonable care only with regard to artificial conditions on the land that could pose risks to entrants on the land.

B

Under the UCC, a(n) __________ is a practice or method of dealing regularly observed and followed in a place or vocation or trade. a. course of dealing b. usage of trade c. course of performance d. integrated document

B

Unless one of the parties contractually assumes the risk, the __________ discharges a contract if supervening circumstances make fulfillment of the purpose which both parties had in mind impossible. a. bankruptcy law b. frustration of purpose doctrine c. perfect tender rule d. impossibility of performance doctrine

B

Wayne helped Hank study all night for an important exam. After Hank got an "A" on the exam, he told Wayne, "I will give you $10 for helping me get a good grade." Wayne said, "Thanks, I'll take it." There is: a. no contract because there is no mutual assent. b. no contract because there is no valid consideration. c. no contract because $10 is reasonably inadequate consideration. d. a contract with sufficient consideration.

B

What constitutional principle requires that similarly situated people be treated similarly by government? a. Free speech. b. Equal protection. c. Due process. d. Eminent domain.

B

What form of organization enables a multinational enterprise to retain control and authority over all phases of operation? a. Direct export sales. b. Wholly owned subsidiaries. c. Joint ventures. d. None of the above.

B

What standard does a court use in reviewing the factual determinations of an administrative agency? a. Whether the agency properly interpreted the applicable law. b. Whether the conclusions reached are supported by substantial evidence. c. Whether the agency acted contrary to procedural requirements of the law. d. Any one of the above, depending on the particular situation.

B

What term refers to the entire set of activities in which an administrative agency engages? a. Rulemaking. b. The administrative process. c. Promulgating. d. Enforcement.

B

When is an agency relationship irrevocable? a. It is never irrevocable. b. When the agency is coupled with an interest of the agent in the subject matter. c. When the principal violates his duties to the agent. d. When the agent is a fiduciary.

B

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 the above. e. None of the above.

B

Which of the following carries with it no warranties or guarantees of title? a. Warranty deed. b. Quitclaim deed. c. Special warranty deed. d. All types of deeds carry a warranty of title.

B

Which of the following contracts is covered by Article 2 of the Uniform Commercial Code? a. The sale of a house. b. The sale of a new car. c. An employment agreement. d. A sale of automobile insurance.

B

Which of the following is NOT a way in which a case can reach the United States Supreme Court? a. Appeal by right. b. Stare decisis. c. Writ of certiorari. d. All of the above are ways for a case to reach the U.S. Supreme Court.

B

Which of the following is NOT an element of fraud? a. Material misrepresentation. b. Competent parties. c. Knowledge of falsity. d. Justifiable reliance.

B

Which of the following is NOT true concerning the requirements for an effective assignment? a. The assignment must be voluntary. b. Consideration is required. c. There must be an intention to make the assignee the owner of the right. d. The assignment may be either written or oral.

B

Which of the following is a contract with a condition subsequent? a. Rhonda enters into a contract to buy a new car conditional upon her getting a loan from her bank. b. Roger bought a VCR but he may return the VCR within ten days and get all of his money back. c. Both (a) and (b) are examples of a condition subsequent. d. Neither (a) nor (b) is an example of a condition subsequent.

B

Which of the following is a defense that a defendant could raise in an action based on strict liability? a. The plaintiff negligently failed to observe a sign on a highway warning of blasting operations and was injured from the operations. b. The owner of a car knowingly and voluntarily parked his vehicle in a blasting zone as a result of which the car was damaged. c. A child played with a neighbor's pet raccoon which had escaped from its cage. The child teased the pet and was bitten. d. All of the above are valid defenses which would be successful if raised by the defendant.

B

Which of the following is a major limitation on the federal government's power to tax? a. Indirect taxes must be apportioned among the states. b. All custom duties and excise taxes must be uniform throughout the United States. c. Progressive tax rates are prohibited. d. All of the above.

B

Which of the following is an exception to the suretyship provision requirement under the statute of frauds? a. A collateral promise made to the creditor. b. A promise, the leading object of which is to obtain an economic benefit for oneself. c. A collateral promise where there are three parties and two contracts involved. d. A promise by an executor to pay the debts of the decedent from the executor's own funds.

B

Which of the following is an objective of the North American Free Trade Agreement (NAFTA)? a. Create trade barriers to the movement of goods and services across the borders. b. Promote conditions of fair competition in the free trade area. c. Decrease investment opportunities in the area. d. Provide adequate and effective enforcement of all types of property rights.

B

Which of the following is correct with regard to a contract entered into with a third person by an agent of an undisclosed principal? a. The agent has no liability to the third person if the agent has acted within the scope of her authority. b. The agent is personally liable upon the contract. c. The undisclosed principal has no liability on the contract, even if her existence and identity are discovered by the third person. d. If the third party obtains a judgment against the principal and the judgment is satisfied, the agent may still have liability to that third party.

B

Which of the following is correct with regard to conditions subsequent? a. Conditions subsequent are quite common in contracts. b. A "sale or return" contract is an example of a contract with a condition subsequent. c. A condition subsequent must occur before performance is due under a contract. d. All of the above are correct.

B

A valid contract may be unenforceable for which reason(s)? a. Failure to satisfy the statute of frauds. b. Running of the statute of limitations. c. Both (a) and (b). d. A valid contract is always enforceable.

C

Which of the following is correct with regard to treaties in the United States legal system? a. They have no legal effect. b. Under the U.S. Constitution, they must be signed by the President and approved by the U.S. Senate. c. They have no effect on business law. d. They must be approved by the states before they have the force of law.

B

Which of the following is not a principal objective of tort law? a. To compensate persons who sustain harm or loss resulting from another's conduct. b. To punish the person who committed the tort. c. To place the cost of compensating victims only on those parties who should bear it. d. To prevent future harms and losses.

B

Which of the following is not ordinarily a part of a reported opinion? a. The essential facts. b. The names of the attorneys representing the parties. c. What pleadings are material to the issues. d. The application of legal principles involved in the case.

B

Which of the following is true with regard to contractual relations between the principal and a third party? a. There is no liability on the part of the principal if the agent acts with implied authority. b. An undisclosed principal and the third party are contractually bound if the agent acts within her actual authority, unless the contract specifies otherwise. c. A principal cannot be bound if the agent acts without any authority. d. An unidentified principal is bound only if the agent acts within the scope of actual authority.

B

Which of the following is untrue regarding the contracts of incompetent persons? a. An incompetent person is liable for necessaries. b. Unlike a minor, an incompetent person can never ratify a contract. c. To avoid a contract, a person need not be permanently incompetent. d. Under the cognitive ability test, a person is incompetent if he is unable to understand the nature and effect of his act.

B

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 language that has a commonly accepted meaning is always interpreted in accordance with that meaning. c. Handwritten or typed terms are given greater weight than preprinted terms. d. All writings that are part of the same transaction are interpreted together.

B

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. e. Both (b) and (d).

B

Which of the following results in a void, rather than voidable, agreement? a. Duress by improper threat. b. Fraud in the execution. c. Fraud in the inducement. d. Undue influence.

B

Which of the following statements is true regarding administrative law judges? a. ALJs are appointed by the president with the approval of the Senate. b. ALJs may be removed only for good cause. c. There are more than twice as many federal judges as there are administrative law judges. d. Administrative law judges preside over jury cases within the area of expertise of the agency.

B

Which of the following would generally be considered to be a revenue-raising licensing law? a. A statute requiring that doctors be licensed. b. A statute requiring that salespeople be licensed, but not establishing any educational or training requirements. c. A statute requiring public school teachers to be licensed. d. A statute that requires insurance agents to pass a test before selling insurance in a state.

B

Which of the following would most likely be enforceable? a. An agreement supported by past consideration. b. A substitute agreement to settle an undisputed debt. c. A debt agreed to seven years ago in a state where the statute of limitations is six years. d. A promise following the rendering of emergency services that is not supported by new consideration.

B

Which of the following would not be a promise statutorily made enforceable without consideration? a. Hawkins, in good faith, changes the quantity of square yards of carpet ordered from Grant Mills. b. Jones promises to pay his cousin's past-due cell phone bill. c. Dodds signs and delivers a waiver of a claim arising out of a breach of contract by Keys. d. A signed, written offer by Marcum Jewelers to sell four dozen 18" gold chains to the Alpha Sorority for $480 within the next 30 days.

B

Which of the following would not be considered an abnormally dangerous activity, subjecting the person who carries it out to strict liability? a. Pile driving. b. Transmitting gas through a gas pipe. c. Collecting water in a dangerously large quantity. d. Emitting noxious fumes in a subdivision.

B

While driving his car five miles over the speed limit, Carl struck Darla, who was jaywalking across the street. When the case came to trial, the jury determined that Carl was 40% negligent and that Darla was 60% negligent. Darla's injuries are $10,000. If this accident occurred in a state following the modified comparative negligence theory of recovery, Darla will: a. recover $10,000. b. not recover anything. c. recover $6,000. d. recover $4,000.

B

Will wants to buy a new car. He goes to the bank to get a loan for the purchase, and signs an agreement to pay $10 per month in premiums on a term life insurance policy which names the bank as the recipient of the policy proceeds in the event of his death before the loan is repaid. The bank is a(n): a. incidental beneficiary. b. creditor beneficiary. c. donee beneficiary. d. assignee.

B

With a __________ the jury makes specific written findings on each factual issue, and the judge then applies the law to these findings. a. general verdict b. special verdict c. voir dire d. quasi in rem

B

__________ is/are any property other than an interest in real property. a. Goods. b. Personal property. c. Tangible property. d. None of the above.

B

__________ jurisdiction refers to the authority of a particular court to judge a controversy of a particular kind. a. Exclusive federal b. Subject matter c. Concurrent federal d. None of the above

B

"Normal value" is the price that would be charged for the same or a similar product in the ordinary course of trade for domestic consumption in the exporting country, under the World Trade Organization's: a. tariff regulations. b. nontariff barrier. c. Antidumping Code. d. export controls.

C

A __________ is a written, formal appointment of an agent. a. fiduciary b. revocation c. power of attorney d. rescission

C

A __________ is the refusal to accept an offer. a. revocation. b. counteroffer. c. rejection. d. statutory irrevocability.

C

A bank robbery has occurred, and the banker's association has offered a $1,000 reward for information leading to the arrest and conviction of the robber. Several people are claiming to be entitled to the money. Which of them is eligible? a. The employees of the bank. b. An on-duty sheriff's deputy in the county where the arrest occurred. c. An off-duty deputy sheriff from a county other than the one where the arrest occurred. d. None of the above are eligible.

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. The court found: a. the seller was in breach and must pay damages. b. the seller was guilty of fraud in the inducement for failing to disclose to the buyer which ship would contain the goods. c. no contract existed due to mistake in meaning of terms. d. two of the above, (a) and (b).

C

A contractor and Southampton, Inc. have a contract, which calls for the contractor to build a building with the completion by June 15. If the building is not completed by that date, the contract calls for the contractor to pay $100 per day in damages. The $100 per day is: a. punitive damages. b. nominal damages. c. liquidated damages. d. an illegal penalty.

C

A decision of an appeals court in Minnesota would be recorded in the: a. state's statutory code. b. Minnesota administrative code. c. North Western regional reporter. d. Federal Supplement.

C

A defendant who is indicted will next: a. go before a grand jury. b. have a preliminary hearing. c. be arraigned. d. be prosecuted.

C

A durable power of attorney differs from a power of attorney in that the durable power of attorney: a. is a formal written instrument, whereas the power of attorney may be informal and oral. b. must follow a standardized form set forth in the federal Uniform Durable Power of Attorney Act. c. becomes effective upon the principal's subsequent incapacity or the agent's authority is not affected by the principal's subsequent incapacity. d. is governed by Article 3 of the UCC.

C

A form of strict liability applies to all except which of the following situations? a. A lawnmower sold in a defective condition that injures its owner. b. A fireworks factory that blows up and injures townspeople and their property. c. Abnormally risky medical procedures. d. A herd of goats that walk onto a neighbor's property and trample and eat the neighbor's roses.

C

A ninety-year-old patient walked away from a nursing home and wandered onto some nearby railroad tracks. Once on the tracks, the patient stumbled and sprained his ankle. A few minutes later a train approached. The engineer saw the man on the track and could have stopped, but the train's brakes were defective. As a result, the train hit and killed the man. His family is suing the railroad for negligence in a state that follows the contributory negligence doctrine. In this case, a. the patient has assumed the risk of wandering onto the railroad tracks. b. because the patient was contributorily negligent, the railroad has no liability. c. the train had the last clear chance to avoid the accident, so the patient's contributory negligence does not bar his estate's recovery. d. the train's striking of the man was an intervening cause, so the railroad company was negligent.

C

A significant trend affecting business has been the bringing of defamation suits against former employers by discharged employees. Such suits comprise approximately what share of all defamation lawsuits? a. One fifth. b. One fourth. c. One third. d. One half.

C

A small breach of contract damage amount fixed without regard to the amount of loss is known as: a. reliance damages. b. out-of-pocket damages. c. nominal damages. d. None of the above.

C

A standard determined in terms of the business judgment of reasonable persons familiar with the practices customary in the type of transaction involved and in terms of the facts and circumstances of the case is: a. good faith. b. a subjective standard. c. commercial reasonableness. d. None of the above.

C

A written, integrated contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims that a "year" is obviously 12 months. The defendant claims that the contract meant a 10-month school year. In this case: a. parol evidence cannot be used to explain the term, because the plain meaning of a "year" is 12 months. b. parol evidence cannot be used to explain the term, because it is in an integrated document. c. the term "year" is ambiguous, and the parties can bring in parol evidence to clarify their intent. d. parol evidence cannot be used, because the contract contains an express term that could have been changed by the parties prior to the contract's execution.

C

A(n) __________ is a measure designed to protect the public from unqualified practitioners. a. exculpatory clause b. revenue license c. regulatory license d. usury statute

C

A(n) __________ is a sudden, unexpected event calling for immediate action, that is considered when determining whether conduct was reasonable in a negligence lawsuit. a. res ipsa loquitur. b. duty to act. c. emergency. d. None of the above.

C

Able and Baker are both residents of Iowa, but they have a dispute regarding some land located in Kansas. Able gives Baker reasonable notice that she is filing a lawsuit in Kansas regarding the land and Baker objects, claiming the Kansas courts have no jurisdiction. In this case: a. only the Iowa courts can hear the case. b. the Iowa federal district court can hear the case based on diversity of citizenship. c. the Kansas courts have in rem jurisdiction to adjudicate the claim regarding the property. d. the Kansas federal district court can hear the case based upon diversity of citizenship.

C

All but which of the following is true about a delegation of duties? a. When the delegatee assumes the delegated duty, both the delegator and the delegatee are liable for performance of the contractual duty to the obligee. b. Contractual duties are generally delegable. c. The courts will examine an assignment more closely than a delegation. d. A delegation will not be permitted if the nature of the duties are personal in that the obligee has a substantial interest in having the delegator perform the contract.

C

Although not covered by the original statute of frauds, most states have statutes requiring a writing to make all but which of the following contracts enforceable? a. A contract to make a will. b. A contract authorizing an agent to sell real estate. c. Contracts for the sale of securities. d. Contracts creating certain types of security interests.

C

An agent is not required to keep which of the following information confidential? a. Unique business methods. b. Customer lists. c. Information that his or her principal is engaged in criminal activity. d. Business plans.

C

An agent may agree to become liable on a contract between a principal and a third party in all but which of the following ways? a. Making the contract in the agent's own name. b. Co-making the contract with the principal. c. Disclosing the principal's name and the agency relationship. d. Guaranteeing that the principal will perform the contract between the third party and the principal.

C

An agent, at his principal's direction, fixes prices with the principal's competitors. The result is: a. only the agent is criminally liable. b. only the principal is criminally liable. c. both the principal and agent are criminally liable. d. any liability would be civil only.

C

An arm's length transaction is one in which: a. the parties owe each other a special duty of confidentiality. b. the parties owe each other a fiduciary duty. c. the parties are acting in their own self-interest. d. None of the above.

C

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.

C

Andrew agrees to paint Rosalene's house for $500. Two days after he starts the job, he decides that $500 isn't enough money. He refuses to finish the job, unless Rosalene agrees to pay him $100 more. What principle applies to this fact situation? a. The acceptance of additional money to settle a disputed claim is supported by consideration. b. A past obligation is sufficient consideration for a new promise. c. Andrew was already obligated to paint the house. He gives no additional consideration in return for Rosalene's promise to pay more money. d. Rosalene has made a promise in exchange for a forbearance.

C

Anna is 88 years old and under the legal guardianship of her daughter. One day Anna receives a telephone call from a health insurance salesman and purchases a $400-a-month Medigap insurance policy. This contract is: a. valid. b. voidable. c. void. d. unenforceable.

C

Arthur fired a gun in the middle of the desert. He intended to fire the gun, but had no reason to believe anyone else was in the area. The bullet hit Bob, who happened to be riding his ATV across the desert. In this case: a. Arthur has committed the tort of assault. b. Arthur has committed the tort of battery. c. it is unlikely that Arthur has the necessary intent to commit a tort. d. Arthur has committed the tort of intentional infliction of emotional distress.

C

As a general rule: a. the defenses available to intentional torts and negligence are interchangeable. b. if a plaintiff has established by a preponderance of the evidence all the required elements of a negligence action, the plaintiff will automatically recover damages. c. any defense to an intentional tort is also available in an action for negligence. d. more defenses are available for intentional torts than are available in negligence cases.

C

As of the writing of the textbook, the European Union has how many full members? a. 15. b. 25. c. 27. d. 31.

C

Ashley wrote a defamatory letter regarding Brian which she mailed to Brian, but which she did not show to anyone else. Ashley has committed: a. the tort of slander. b. the tort of libel. c. neither libel nor slander, because there has been no publication of the letter. d. the tort of false light.

C

B & B, Inc. is incorporated in Delaware, but it has its principal place of business in Minnesota. It does much of its business in California. For purposes of diversity of citizenship, B & B is a resident of: a. Delaware. b. Minnesota. c. Both Delaware and Minnesota. d. Delaware, Minnesota, and California.

C

Barbara owes Arthur $2,000. On July 1, Arthur assigns the debt to Caleb. Thereafter on July 15, Arthur assigns the same right to David, who in good faith gives value for it and knows nothing about the first assignee. David immediately notifies Barbara of the assignment. In this case: a. under the majority rule, David has priority. b. under the English Rule, a second assignment of the same claim can never be effective. c. under the English Rule, David has priority. d. under all of the rules, Caleb has priority since he was the first assignee in time.

C

Barbara, a wealthy widow, promises the pastor of her church that she will donate $30,000 to the church to help pay off its mortgage if the stewardship committee can obtain enough pledges for the balance of the $60,000 mortgage. Other pledges are obtained to pay off the mortgage, but now Barbara has changed her mind and plans to take an around-the-world cruise instead. In this case: a. Barbara's promise to pay $30,000 is enforceable because it was a promise made to satisfy a preexisting moral obligation. b. the promise to pay $30,000 is a promise to give a gift and is therefore not enforceable. c. under the Restatement of Contracts, Barbara's promise is enforceable. d. Two of the above, (a) and (c).

C

Because defamation involves a communication, the protection of the __________ Amendment applies. a. Fourth b. Fifth c. First d. Fourteenth

C

Before granting an injunction enjoining a former employee from competing in a described territory, the courts insist that the employer demonstrate that the restriction is __________ to protect the employer's legitimate interest. a. exculpatory b. unconscionable c. necessary d. usurious

C

Ben and Kate had been negotiating Ben's employment contract in conversations over the phone for a couple of weeks. Finally, they agreed on some contract terms. Kate offered to create a draft of the contract for Ben to read over. On the same day Ben was fired from his job. Afraid he would be unemployed, Ben signed Kate's draft without reading it. In this example Ben: a. can avoid the contract because of mistake by failure to read. b. can avoid the contract because he was the victim of economic duress. c. cannot avoid the contract because of economic duress or failure to read. d. may rescind the contract because of unilateral mistake.

C

Bill is the accountant for Cheatam and Sons Co. For many years he has kept two sets of books, one with real figures and another with figures he will use in case the IRS audits. When Bill, while working on Cheatam's books, is arrested for fraud, what will happen to the books? a. They are privileged communications and therefore inadmissible as evidence against Bill. b. They are protected by the Fifth Amendment and therefore are inadmissible. c. They may be admitted as evidence since they were taken pursuant to a valid arrest. d. They may be admitted as evidence only if Bill consented to a search of his offices.

C

Bob, the tax accountant, promises to do Marge's individual federal, state, local, and gift taxes for the year. He completes all but the gift taxes. Under the substantial performance doctrine, Marge will: a. not have to pay Bob. b. not have to accept the work. c. have to pay Bob for all but the gift taxes. d. have to pay Bob the contract price.

C

By law, all apartment buildings in the state where Mary lives must have smoke alarms in the ceilings. Mary suffers smoke inhalation because the smoke alarm in her apartment building was not yet installed. To win a negligence action against the building owner, Mary would have to prove: a. a duty existed toward her. b. a breach of that duty. c. injury and causation. d. All of the above.

C

Cal sprayed pesticide on his crops in a very careful manner on a windless day. Nevertheless, some of the pesticide spray fell on his neighbor's side of the fence and contaminated the cracked corn for the chickens. The chickens died and the neighbor sues. What is the likely result? a. Cal is not liable because he was not negligent in his spraying operation. b. Cal is not liable because the neighbor assumed the risk of damage to the feed by placing it so close to the fence. c. Cal is liable because spraying pesticides is an abnormally dangerous activity. d. Cal is not liable for the damage because of contributory negligence.

C

Carl and Ron both work in road construction. They know that several jobs are going to be up for public bids, and agree between themselves that Carl will bid on one job and Ron will bid on the other, so that they both have work for the summer. When the bids are opened, Carl realizes that Ron has bid on both jobs. Ron is awarded both contracts. If Carl now wants to sue Ron for breach of contract: a. Carl would probably win on the basis of promissory estoppel since he has detrimentally relied upon Ron's representation that he would not bid. b. since Carl is less at fault than Ron, the court will likely award Carl damages. c. the agreement will not be enforced by the courts because it violates public policy. d. the agreement will not be enforced by the courts because it obstructs the administration of justice.

C

Carl, a contractor, and Lyle, a landowner, have a contract whereby Carl is to perform routine construction services according to the blueprints that Lyle has provided. Carl assigns the contract to David, a developer. As a result of this assignment: a. Lyle can bring suit based upon detrimental reliance. b. Carl has no more rights or responsibilities with regard to the contract. c. Carl no longer has any rights under the contract, but he remains responsible for the duties he agreed to perform. d. Carl has all of his rights under the contract, but he has no responsibility for the performance of the duties.

C

Cary, a prominent local attorney, was the subject of a newspaper article concerning a trial in which he was involved as counsel. In that article, Cary was reported to have been disbarred in another state ten years previously. It is not true of Cary, but of his cousin, Frank. Cary will win a suit for defamation against the newspaper: a. simply by proving the falsity of the statement. b. only if Frank was not disbarred. c. only if he can prove that the paper acted with actual malice. d. by only showing that harm to his character resulted from the statement.

C

Cheryl, age 16, ordered a new dress to wear to the school prom. She has contracted to pay $500 when the dress arrives. Before the dress arrives, Cheryl decides that the dress is too expensive, and she now wishes to cancel the order. Cheryl: a. must pay $500 for the dress because the dress was specially ordered for her. b. must pay $500 for the dress because clothing is classified as a necessary. c. may disaffirm this executory contract because, while clothing in general is classified as a necessary, a new prom formal would probably not be classified as a necessary. d. must accept the dress and pay the reasonable value of the dress.

C

Chris was driving a car with defective brakes very slowly down Fifth Avenue looking for a parking place. Mindy jumped out into the street five feet in front of his car. Chris could not help but hit her. What is Chris's best defense to the charge of negligence? a. Mindy had a mental deficiency. b. He was not negligent since he did not have a statutory duty to keep his brakes in top condition. c. Mindy crossed in the middle of the street, which is against the law. d. He was lawfully seeking a parking place and did not see her jump out.

C

Claudia sells her highly successful hair salon to Carl. In the sales contract, Claudia agrees never to open a hair salon in the state. Which of the following best describes this contract clause? a. Void as an illegal violation of a statute. b. Valid as a reasonable restraint on trade. c. Unenforceable as a violation of public policy. d. Binding as fair protection.

C

Clint contests the amount of a bill he received from Car Care Specialists. Under the Restatement, settlement of the claim: a. is not valid consideration. b. is not a legal detriment to Clint if his contentions were not made in good faith. c. is valid consideration if at the time of the settlement the claim was doubtful because of uncertainty as to the facts. d. does not involve a disputed debt unless Clint contests both the existence of the obligation and the amount of the bill.

C

Congress has enacted disclosure statutes to enhance public and political oversight of agency activities. These statutes include: a. Freedom of Information Act. b. Government in the Sunshine Act. c. Both (a) and (b) are correct. d. Neither (a) nor (b).

C

Courts will enforce contracts for the benefit of all but which of the following? a. Donee beneficiaries. b. Creditor beneficiaries. c. Incidental beneficiaries. d. Intended beneficiaries.

C

Damages for reliance include expenses for: a. lost profits. b. injury to the person. c. preparing to perform. d. punishment of the breaching party.

C

Darla offers to pay Edward $6,000 for Edward's car, provided that Darla receives that much from her uncle's estate, which is currently being probated. She expects to know for sure how much she will receive within a week or so. If Edward agrees: a. there is an illusory contract, because Darla is not certain she will receive the money. b. there is no consideration present in this example. c. the consideration from Darla to Edward is the promise of $6,000 subject to a condition. d. Two of the above.

C

Dr. David Doright is a professor at Towers State University. One day he has an argument with the president of the University over which team should win the next Super Bowl. The next day, Dr. Doright is fired for incompetence. He sues, claiming the firing is arbitrary and that he was denied an opportunity to respond to the charges. In this case: a. Dr. Doright has no right to a hearing because this is not a criminal case. b. Dr. Doright appears to have been denied the equal protection of the law. c. the firing by a state university is state action involving a property right that would entitle Dr. Doright to a hearing and an opportunity to respond to the allegations against him. d. the U.S. Constitution does not apply.

C

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 authority to send bills to customers and to accept payments on behalf of Fred. c. Edward can hire employees, but he cannot fire them without Fred's consent. d. Edward can enter into contract with wholesalers for merchandise in the store.

C

Ellen's driveway is actually on Richard's land, but in 20 years nobody has ever said anything to Ellen about it. When Richard sells his house, a survey shows the problem and the new owner demands that Ellen abandons use of the driveway. Will she have to move her driveway? a. Yes, if she does not actually own the land. b. Yes, since it is not in her deed. c. Not if she used it continuously. d. Not if she got permission from Richard.

C

For the purposes of procedural due process, __________ includes certain entitlements conferred by government such as social security payments and food stamps. a. the right of free speech b. equal protection c. property d. liberty

C

Fourteen-year-old Marsha bought $120 worth of video games at a local store, using her own money. Her parents insisted that she return the items and get her money back. Which of the following is true? a. If there is a conflict, the store's return policy will override Marsha's right of disaffirmation. b. In most jurisdictions, Marsha may get her money back only if she has not opened or damaged the merchandise in any way. c. In a majority of jurisdictions, Marsha may get her money back even if she cannot return the merchandise. d. In most jurisdictions, Marsha may get some of her money back but she must pay the reasonable value of the goods if that differs from the contract price.

C

Francenie was digging a trench to install a drainage pipe along her property line and she accidentally tunneled under a small area on her neighbor's property. The entry onto the neighbor's property: a. cannot be a trespass because it was beneath the surface of the land. b. is not a trespass unless there was some actual damage to the neighbor's land. c. is a trespass. d. is not a trespass because Francenie was under the reasonable belief that she owned all of the land on which she was digging.

C

Fred contracts to sell a certain tract of land to Mary for $20,000, but the contract is silent as to the time of delivery of the deed and payment of the price. In this case: a. the payment of the $20,000 and the delivery of the deed are independent of each other. b. the delivery of the deed is a condition subsequent to the payment of the $20,000. c. the payment of the $20,000 and the delivery of the deed are mutually dependent and, in the absence of an agreement to the contrary, are concurrent conditions. d. the payment of the $20,000 is a condition precedent to the delivery of the deed.

C

Gary hires Doug to burn off his fields to kill the weeds. If the fire gets out of control because of Doug's negligence and the fire damages Philip's wood fence: a. Gary has no liability because Doug was an independent contractor. b. Doug bears sole responsibility for damage to the fence because it was his negligence that caused the fire to escape the intended boundaries. c. Gary is vicariously liable because he authorized an abnormally dangerous activity. d. Philip cannot hold Gary liable unless Gary was personally involved in the act of burning the fields.

C

Henry was burning leaves in his backyard. One of the burning leaves was lifted by the wind into Bob's yard next door. It landed on the lawnmower which exploded, setting fire to the wooden lawn furniture. Henry's best argument against liability to Bob would be: a. the leaf was not a substantial factor in causing the damage. b. the gasoline in the lawnmower is a superseding cause of the damage. c. it was not foreseeable that the lawnmower would explode. d. the damage was not caused by the leaf but by the gasoline.

C

How is "sovereign immunity" interpreted under U.S. law today? a. It gives absolute immunity to a foreign nation from all U.S. laws. b. It gives immunity to foreign governments for commercial activity carried on in the U.S. by the foreign government. c. It exempts the public acts of a foreign government, such as those involving diplomatic activity, from all U.S. laws. d. All of the above.

C

How much force may an individual use to protect her property? a. As much as is necessary. b. Deadly force. c. Reasonable force, but not deadly force. d. All of the above are correct.

C

If Anna Laura, in return for the payment of $200 to her by Catherine, gives Catherine an option to buy Jesse, a prime Arabian mare, at any time within the next 14 days at a price of $50,000, Anna Laura's offer to Catherine is: a. a revocable option contract. b. an irrevocable output contract. c. irrevocable for the 14 days covered by the option. d. a requirements contract.

C

If Anna by mistake delivers to Bob a plain, unaddressed envelope containing $50 intended for Cora: a. Bob is under no obligation to return the money. b. Bob is under a contractual obligation to return the money. c. Bob's obligation to return the money is quasi-contractual. d. Bob's obligation to return the money is implied in fact.

C

If Randall and Gale agree to an assignment of Randall's contract with Doug: a. there is no ambiguity; this is an assignment of rights only. b. there is no ambiguity; this is a delegation of duties only. c. under both the Code and the Restatement, unless circumstances or language indicate the contrary, an assignment of "the contract" means the assignment of rights and a delegation of duties. d. the language is ambiguous and, therefore, the assignment is unenforceable.

C

If a statute is found to be applicable to a fact situation, then the courts will hold that an unexcused violation of that statute which causes an injury to another is: a. strict liability. b. res ipsa loquitur. c. negligence per se. d. assumption of the risk.

C

If incorrect, which of the following would probably be considered a misrepresentation of a material fact? a. "This is the one that I think is the best buy." b. "This is the best computer on the market." c. "This car has new brakes." d. "These tires will wear like iron."

C

In 1990, Congress enacted the Administrative Dispute Resolution Act. This Act does not: a. encourage the federal agencies to use arbitration. b. authorize federal agencies to use mediation and conciliation. c. require the agencies to use alternative dispute resolution. d. All of the above.

C

In Soldano v. O'Daniels, the court re-examined the common-law rule of nonliability for not taking affirmative action to save someone from peril. The court considered which of the following factors with respect to imposing duties for affirmative action by third parties? a. The examination and balancing of intervening causes and physical capabilities. b. The financial duties of victim to rescuer. c. Moral blame attached to the defendant's conduct and the policy of preventing future harm. d. Moral blame attached to the victim's conduct.

C

In addition to the four basic requirements of a contract, which of the following must also occur in order to have a valid contract? a. The agreement must always be in writing. b. There must be evidence of undue influence. c. There must be an absence of invalidating conduct. d. A legal remedy must be available for there to be a breach.

C

In considering a covenant not to compete in an employment contract, the court in the case of Payroll Advance, Inc. v. Yates said in its opinion: a. in order to obtain an injunction it is necessary for the employer to show that actual damage has occurred. b. covenants not to compete are presumptively valid, and they are enforceable to the extent they are reasonable. c. the question of reasonableness of a restraint requires consideration of such circumstances as the subject matter of the contract, the purpose to be served, the situation of the parties, the extent of the restraint, and the specialization of the business. d. Both (b) and (c).

C

In most states, eminent domain would permit taking of privately owned land for all the following purposes except: a. constructing a railroad bridge over a river. b. building senior citizens' home. c. building a discount store. d. building a post office.

C

In the Berardi v. Meadowbrook Mall Company case, the court found: a. plaintiffs must produce subjective evidence of their duress to win a case of economic duress. b. duress is readily accepted by the courts as a reason to avoid a contract. c. economic duress must leave the plaintiff no reasonable alternative but to acquiesce to the terms of the contract. d. plaintiffs who prove economic duress may void the transaction, and this is their complete remedy.

C

In the Lesher v. Strid case, the court held that: a. a representation is material if it is likely to influence a reasonable person. b. for a misrepresentation to be actionable, it must be one of fact rather than of opinion. c. a mutual mistake of fact renders a contract voidable by the adversely affected party if the mistake is so fundamental that it frustrates the purpose of the contract. d. the contract's "as is" clause expressly excluded reliance on extrinsic representations such as the defendant's representation about the four-acre water rights.

C

In the Osprey L.L.C. v. Kelly-Moore Paint Co.,Inc. case, the Supreme Court of Oklahoma held that: a. the lease was ambiguous. b. the plain language of the lease required that it be renewed by delivering notice either personally or by mail, and Kelly-Moore had done neither. c. a faxed delivery of the written notice to renew the commercial lease was sufficient to exercise the renewal option of the lease. d. a lease is a specialized contract, and therefore the usual rules for the interpretation of contractual writings do not necessarily apply.

C

The Fourth Amendment to the Constitution: a. requires a speedy trial. b. prevents double jeopardy. c. prohibits unreasonable search and seizure. d. All of the above.

C

Jean is called for jury duty. However, the defendant's attorney decides to have her removed from the jury pool because he wants the jury to be comprised of predominantly males. The defendant's attorney: a. will succeed in keeping Jean off the jury because he has a limited number of peremptory challenges for which no cause is required to disqualify a juror. b. will succeed in keeping Jean off the jury because his defendant is a male. The attorney may use his unlimited number of challenges for cause because of the potential for gender discrimination on the part of Jean. c. may be successfully contested on the use of the peremptory challenge to exclude Jean from the jury on the grounds that the action is unconstitutional. d. may not have the privacy of his theory of a case as manifested in peremptory challenges invaded by a judge.

C

John operates a small repair business and is in desperate need of a certain type of building material. He obtains the material from a large corporation, but is charged a grossly unreasonable price and is forced to buy other material he does not need. In view of the buyer's unequal bargaining power and unreasonable terms of the contract, this may be a case of: a. in pari delicto. b. partial illegality. c. substantive unconscionability. d. procedural unconscionability.

C

Lewis employs Donna under a one-year contract to sell Lewis's line of leather wallets and checkbook covers. If without Donna's knowledge, Lewis dies: a. under the Second Restatement, Donna's actual authority will not terminate until the end of the one-year contractual term. b. under the Second Restatement, Donna's actual authority will not terminate until she has notice of Lewis's death. c. under the Third Restatement, Donna's actual authority will not terminate until she receives notice of Lewis's death. d. under both the Second and Third Restatements, Donna's actual authority will terminate at either the end of her one-year contractual term or when she receives notice of Lewis's death, whichever occurs first. e. under both the Second and Third Restatements, Donna's actual authority will terminate upon Lewis's death, whether she has notice or not.

C

Marcella pays $12,000 down on a houseboat which Hugh had agreed to sell to her for $64,000. Marcella then repudiates the contract. Hugh sells the houseboat to Lloyd in good faith for $60,000. Marcella may recover from Hugh: a. nothing, since she was the one who repudiated the contract. b. her $12,000 down payment since Hugh's contract with Lloyd created a novation and discharged any duty Marcella had to pay anything toward the houseboat. c. $8,000 in restitution, which represents Marcella's $12,000 down payment less the $4,000 in damages Hugh sustained because of Marcella's breach. d. only a nominal amount.

C

Marilyn contracted with Bravo Builders to build an addition to her house for $15,000. After digging the foundation, Bravo decides that it will take more work and more concrete than it had originally thought and that it will need to charge an additional $5,000 for the job. Assuming Marilyn agrees, which of the following is correct? a. Marilyn will have to pay $20,000. b. This is a contract under seal which is enforceable. c. This is a modification of a preexisting contract, which under common law must be supported by additional consideration on the part of Bravo Builders. d. This is the settlement of a disputed debt that requires no additional consideration on the part of Bravo Builders.

C

Marilyn read an ad in the school newspaper offering a $1,000 swimming scholarship to anyone who could swim 500 laps in the school pool. Marilyn called the advertiser and began swimming. She has reached lap number 460; she feels great and is sure she can make it all the way. The advertiser: a. may revoke the offer since there has not yet been an acceptance. b. may not revoke the offer since Marilyn has already accepted it. c. must permit Marilyn the opportunity to finish her attempt to swim the 500 laps, or pay damages if he interferes with the completion of the laps. d. must pay Marilyn $920, because she has performed 92% of the offer.

C

Mark (age 16) appoints Joe (age 21) as his agent to purchase a digital camcorder from Electronic World. The transaction is: a. void because Mark is a minor. b. voidable by Electronic World because Mark is a minor. c. voidable by Mark because he is a minor. d. not voidable because Joe is not a minor.

C

Mark, a resident of Illinois, while driving on the freeway, hits Bill, a resident of Wisconsin, and totally destroys Bill's brand new vehicle and injures Bill. Bill may bring suit in federal district court: a. because of federal question jurisdiction. b. because there is always federal jurisdiction if there is diversity of citizenship. c. if the amount in controversy is over $75,000. d. if the accident occurred outside of Illinois or Wisconsin.

C

Mary agrees to sew Georgia's prom dress for $50 plus costs. Georgia decides that she wants ruffles around the neck and calls Mary who says it will now cost $60. When Mary finishes the dress (with ruffles), Georgia must pay: a. $50, since that is the original agreement. b. $50, since a modification must be in writing. c. $60, since the modified agreement is supported by additional consideration. d. $60, since any subsequent agreement is enforceable.

C

Michelle's Boutique places an ad in the Sunday paper for beautiful, top-of-the-line designer suits for $3.00. Alice sees the ad in the paper and goes to the store to stock up on business suits for her new job. Michelle apologizes for the misprint. Alice has just finished a class in contract law and insists that the store sell her five suits for $15. Alice threatens to sue Michelle for breach of contract. a. This is a valid contract based on commercial reasonableness. b. The ad in the newspaper is an offer to sell, Alice accepted the offer, and there is an enforceable contract. c. The ad in the newspaper is a solicitation seeking offers, but is not an offer to sell; therefore, Alice will not be able to successfully sue for breach of contract. d. None of the above.

C

Miller made a contract to sell his condominium to Jefferson for $80,000. Two days later Miller changed his mind after discovering that he could have sold the property to another buyer for an additional $20,000. Jefferson sues and asks the court to have the property conveyed to him at the price of $80,000. Jefferson is seeking: a. restitution. b. punitive damages. c. specific performance. d. valid tender.

C

The Government in the Sunshine Act covers all but which of the following agencies? a. Consumer Product Safety Commission. b. Commodity Futures Trading Commission. c. Environmental Protection Agency. d. Securities and Exchange Commission.

C

Judicial review: a. scrutinizes actions of federal, but not state, governments. b. is a check by the judicial branch on legislative action. c. is a check by the judicial branch on executive action. d. Both (b) and (c) are correct.

D

Morris interviewed for a job as plant manager at Northland Bearings and was offered a two-year contract if she could relocate and start the new job within three weeks. Morris agreed. Northland promised to follow up the oral agreement with a written contract setting forth all the agreed terms, but the contract had not arrived within several days. Morris wanted to give two-weeks' notice to her present employer, so she called Northland to check on the written contract and was told it was ready to be sent to her and assured her the job was hers. She gave notice of her intention to quit her present job and moved two states away to the Northland location. When Morris arrived for her first day of work, she was told someone else with better qualifications had been found and hired for the position. Morris: a. has no recourse since she never received a written contract, as required by the statute of frauds for a contract that cannot be performed within one year of its making. b. has no recourse because promises are not enforceable if they do not meet all the requirements of a contract, and here Morris lacked capacity. c. may be entitled to good-faith reliance damages under the doctrine of promissory estoppel to avoid injustice. d. cannot enforce the contract since she had not actually started working at Northland.

C

Most long-arm statutes allow courts to obtain jurisdiction over nonresident defendants if: a. the exercise of jurisdiction does not offend traditional notions of fair play and substantial justice. b. the defendant has committed a tort within the state. c. Both (a) and (b). d. None of the above; courts only have jurisdiction of persons domiciled in that state.

C

Most zoning ordinances provide that a nonconforming use may be terminated: a. immediately. b. after 6 months of the structure's future useful life. c. when a nonconforming structure is destroyed or substantially damaged. d. All of the above.

C

Nell gives Big Al $50 in return for Al's promise to defame Sara. Nell hopes to ruin Sara's chances at a promotion. Nell finds out that Al did not hold up his end of the agreement. Which of the following statements is true? a. Nell can get the money back from Al through litigation. b. Nell can get the money back and force Al to do as he promised. c. Legally, Nell can neither get the money back nor force Al to do as he promised. d. Nell can force Al to act through an appeal to the courts, but Al gets to keep the $50.

C

On March 1, Tammy, a student, received a telephone call from Watterson, Inc. offering her a job for one year beginning on June 15, after completion of the school year. According to the personnel manager, she will have to move to California and be ready to start work at 8:00 a.m. on June 15. Should Tammy ask for a letter confirming the telephone conversation if she accepts the offer immediately? a. Yes, because the job offer is a collateral promise. b. Yes, because the job offer is covered by the parol evidence rule. c. Yes, because the job offer is for longer than one year from March 1. d. No, because the job offer is for one year from June 15.

C

One method of appealing a case to the U.S. Supreme Court is by: a. writ of execution. b. offer of proof. c. writ of certiorari. d. request for admissions.

C

Only the __________ Amendment to the Constitution, which abolishes slavery or involuntary servitude, applies to the actions of private individuals. a. First b. Ninth c. Thirteenth d. Fourteenth

C

Orwin, owner of a used furniture store, gives Maggie a signed offer to buy her living room furniture for $800. This offer: a. is revocable at any time because no consideration was given. b. would have been irrevocable if Orwin were a merchant, but he would not be considered a merchant under the UCC. c. is irrevocable for a reasonable time, not to exceed three months, even if there was no consideration. d. is revocable without consideration because it is an offer to buy rather than to sell.

C

Patricia has a valid judgment against David, which she now wishes to execute. David has no assets in the state where the judgment was entered. He has now moved to California where rumor has it he owns thousands of acres of beach-front property. Patricia may execute her judgment in California based on what type of jurisdiction? a. Subject matter jurisdiction. b. Concurrent federal jurisdiction. c. Quasi in rem jurisdiction. d. Diversity of citizenship jurisdiction.

C

Paul promises Marty $1,500 if he will completely landscape Paul's yard. Which of the following would discharge Paul's obligations to pay under this contract? a. Marty leaves a one-foot strip of land barren. b. Marty doesn't begin work on the landscaping until after he finishes two other jobs. c. Marty doesn't plant any flowers or grass. d. Paul isn't satisfied with Marty's design.

C

Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000. This price, however, is twice the reasonable value of that mobile home. Several months later, Percy wants to disaffirm the contract. If the mobile home is considered a necessary item: a. Percy can disaffirm the contract based on the wrongful act of the dealer. b. Percy can disaffirm the contract because the minor can live in an apartment rather than a mobile home. c. Percy is only liable for the reasonable value of the mobile home. d. Percy must keep the mobile home and abide by the original terms of the contract.

C

Permissible lender's expenses, which would not be considered in determining the rate of interest under usury statutes, include all but which of the following? a. Cost of title examination. b. Reasonable cost of drawing up the necessary documents. c. A charge to the borrower of $500 to investigate the borrower's credit, when it actually cost the lender $75. d. All of the above charges would be considered in determining the rate of interest under usury statutes.

C

Professor Doright has a life insurance policy on his own life that provides that in the event of his death, his mother will receive the proceeds. Professor Doright's mother is a(n): a. incidental beneficiary. b. creditor beneficiary. c. donee beneficiary. d. assignee.

C

Richard writes a letter to Sarah authorizing her to sell his car and sends a copy of the letter to Timothy, a prospective purchaser. The next day, Richard sends a letter to Sarah revoking her authority, but he fails to notify Timothy. Sarah: a. has actual authority to sell the car to Timothy. b. has implied authority to sell the car to Timothy. c. has apparent authority with respect to Timothy to sell the car. d. is empowered under the doctrine of respondeat superior to negotiate the contract.

C

Which one of the following is NOT true of a suit brought under criminal law? a. It must be brought by the government. b. It may be a state or a federal case. c. Proof of guilt must be "by preponderance of the evidence." d. Conviction may result in imprisonment.

C

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. Rorzex now refuses to pay Denzil for his services. Denzil: a. may recover based upon the express contract of the parties. b. may recover based upon a quasi-contractual theory in order to prevent the unjust enrichment of Rorzex. c. will be unable to recover, because this is an illegal contract. d. will be able to recover based upon promissory estoppel, because he has detrimentally relied upon the promises made by Rorzex.

C

Sam is a sales representative for the Incman Corporation. Sam has a terrible driving record and has had his driver's license revoked, but nevertheless he continues to drive the company car for his job. One day he drives too fast for conditions, goes through a red light, and strikes a pedestrian. The accident happened despite the fact that Sam's supervisor at Incman had repeatedly reprimanded him and advised him to drive more cautiously. Incman: a. has no liability, because they did not authorize Sam to drive carelessly. b. has no liability, because Sam's actions were not a tort. c. is liable even though it did not authorize Sam to drive carelessly, because it employed an improper person as its agent. d. has no liability, because it has adequately supervised Sam as its agent.

C

Sam owes $5,000 to the First National Bank for a student loan which will come due on January 1 next year. He has been offered a two-year graduate fellowship, but he will not be able to pay the loan back if he accepts the fellowship. The bank manager tells Sam that if he pays $3,000 now, they will forgive the loan. Should Sam accept the offer? a. No, because the bank can still sue for the remaining $2,000. b. No, because the manager's promise is not binding on the bank. c. Yes, because the early payment of the loan is consideration that makes the bank's promise binding. d. Yes, because the bank must do whatever the manager says.

C

Sam wants to sell his golden retriever to Al. Sam tells Al that the dog is three years old and that he will point, back, and retrieve. Al relies on these statements and purchases the bird dog. Although the dog is three years old and will point at birds, he will not back (honor another dog's point). The buyer has most probably been a victim of: a. duress. b. undue influence. c. fraud in the inducement. d. fraud in the execution.

C

Sam, a shopkeeper, dies unexpectedly at the age of 46. His lifelong business associate, Paul, is appointed the administrator of the estate. Sam had a personal debt of $8,000 which he owed to Art's Appliance Store. Paul says to Art, "If there isn't enough money in the estate, I'll personally see that the bill is paid." Which of the following is correct? a. The oral statement is enforceable because Paul is the administrator. b. An oral statement such as this is not enforceable because it is outside the statute of frauds. c. An oral statement such as this is not enforceable because it is within the statute of frauds. d. The oral statement is enforceable because it is a collateral promise.

C

Sid contracts to put new kitchen cabinets in Ned's house. Sid repeatedly tries to install the cabinets, but Ned does not grant him access to the house. In this case: a. Ned is discharged from his duties under the contract because of material breach. b. the frustration of purpose doctrine applies to discharge the contract. c. Sid is discharged from his duties under the contract because Ned's prevention of Sid's performance constitutes a material breach. d. Both Sid and Ned are discharged from their duties because of impossibility of performance.

C

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 Tim gets caught in the trap. He is taken to the hospital for his injuries. Stan: a. has the right to strongly discourage anyone from trespassing, and Tim was a trespasser. b. has no duty toward Tim. c. is not free to inflict intentional injury on a trespasser. d. All of the above.

C

Stan sends for a law school catalog from Ivory Towers University. According to the catalog, the law school applications are evaluated on the basis of undergraduate grades, standardized test scores, and references. Stan, who is a straight-A student, has high test scores and excellent references, applies and pays the $100 application fee. His application is rejected. Later he finds out that others with low grades and test scores were accepted based on their family connections and donations made to the University. If Stan followed all of the guidelines in the college catalog and paid the required application fee, then according to the court in Steinberg v. Chicago Medical School: a. there is not a contract. b. there is a quasi contract. c. there is a valid contract; the school bound itself to honor the obligations set forth in the college catalog. d. there is a voidable contract.

C

The APA's requirements that the agency provide prior notice of a proposed rule, an opportunity for interested parties to participate in the rulemaking, and publication of a final draft containing a concise general statement of the rule's basis and purpose are the requirements for issuance of rules in accordance with: a. formal rulemaking. b. hybrid rulemaking. c. informal rulemaking. d. negotiated rulemaking.

C

The Contract Clause prevents a state from: a. making contracts with private individuals. b. affecting any agreements between two parties. c. changing contracts after they have been made. d. contracting with another state.

C

The Dodd-Frank Act of 2010: a. requires that lenders ensure borrowers will repay their mortgage loans. b. prohibits unfair and deceptive lending practices, although subprime mortgages are excluded from the scope of the Act. c. expands protection for borrowers of high-cost mortgage loans. d. requires that lenders disclose the minimum amount a consumer could pay on a variable rate mortgage.

C

The Environmental Protection Agency (EPA) would like to adopt some new rules regarding environmental impact statements, but it is afraid that if too many people know about them ahead of time, the adverse publicity will force the agency to amend them. To avoid any public comment, the agency seeks to adopt the rules without publishing them. Which of the following statements is true regarding the agency's actions? a. The agency has a right to act in this way and a duty to be efficient with taxpayer money. b. The rules in this instance are procedural in nature and therefore are not required to be published. c. The agency is seeking to adopt the rules by a procedure that violates the rulemaking procedures set forth in the APA. d. The agency has no rulemaking authority, because only Congress can make legislative rules.

C

The ICJ is: a. the Internal Court of Jurisdiction of the U.N. to deal with disputes within the United Nations organization. b. a U.S. court created specifically to deal with international contracts. c. the judicial branch of the United Nations, which has advisory jurisdiction if requested by a U.N. organ or specialized U.N. agency. d. one of the many regional trade communities.

C

The U.S. Constitution provides that Congress has the power to regulate commerce with other nations and among the states. The Commerce Clause has what effect(s)? a. It provides a broad source of power for the federal government to regulate the economy. b. It restricts state regulations that obstruct or unduly burden interstate commerce. c. Both (a) and (b). d. Neither (a) nor (b).

C

The U.S. Supreme Court: a. has only appellate jurisdiction, as the nation's highest tribunal. b. must accept for review any decision appealed under a writ of certiorari. c. has original jurisdiction over certain types of cases. d. hears most of its cases through an appeal by right.

C

The UCC Article 2 statute of frauds provision applies to the sale of goods for the price of __________ or more. a. $50 b. $100 c. $500 d. $1,000

C

The UCC provides missing contract terms in which of the following instances? a. The contract fails to specify the price. b. The contract fails to specify the place of delivery. c. Both (a) and (b). d. The UCC cannot provide missing contract terms; only the parties can provide terms.

C

The UCC provides that a merchant is bound to keep a written offer open for the stated period, but no longer than: a. ten days. b. two months. c. three months. d. a reasonable time.

C

The __________ provides that the federal government shall provide the accused with a speedy and public trial by an impartial jury. a. Fourth Amendment b. Fifth Amendment c. Sixth Amendment d. Eighth Amendment

C

The agent may be subject to liability to her principal for breach of the duty of obedience if she: a. entered into an authorized contract and the principal has changed her mind. b. delegates her authority in any way and under any circumstances. c. committed a tort for which the principal is now liable. d. All of the above.

C

The case in which the court held that a newspaper advertisement was an offer because it contained a promise of performance in definite terms in return for a requested act was: a. Catamount Slate Products, Inc. v. Sheldon. b. Sherrod v. Kidd. c. Lefkowitz v. Great Minneapolis Surplus Store, Inc. d. Giannetti v. Cornillie.

C

The decision of an arbitrator is called a(n): a. verdict. b. judgment. c. award. d. binding decision.

C

The defense of entrapment arises when: a. a law enforcement official induces a person to commit a crime whether that person, under ordinary circumstances, would have done so or not. b. any person induces any other person to commit a crime when the person induced would not ordinarily have done so. c. a police officer or other government official or agent acts to induce an individual to commit a crime when that individual would not ordinarily have done so. d. law enforcement officials act aggressively to prevent a crime.

C

The doctrine aimed at preventing any branch of government from gaining too much power is: a. judicial review. b. federalism. c. separation of powers. d. preemption.

C

The doctrine declaring that the mortgagee's interest in the property is limited to the amount of the outstanding obligation is known as: a. adverse possession. b. the title theory. c. the lien theory. d. equity of redemption.

C

The doctrine of stare decisis means that: a. the common law has not been able to evolve in a stable and predictable manner. b. decisions can be overruled. c. courts adhere to and rely on rules of law that they or superior courts relied on in similar decisions. d. courts are not allowed to correct erroneous decisions or to choose among conflicting precedents.

C

The enabling statute of an administrative agency requires it to conduct a legislative-type hearing without allowing for cross-examination in adopting its rules. This is: a. a formal rulemaking process. b. an informal rulemaking process. c. a hybrid rulemaking process. d. an unconstitutional rulemaking process.

C

The intentional exercise of dominion or control over another's personal property which so seriously interferes with the other's right of control as to justly require the payment of full value for the property is: a. trespass to personal property. b. interference with economic interests. c. conversion. d. fraudulent misrepresentation.

C

The main purpose of The Bill of Rights was to: a. enumerate all of the rights of U.S. citizens. b. list the powers of the federal government. c. provide for restrictions on the power of the federal government. d. provide limitations on the powers of individuals.

C

The provision that private property shall not be taken for public use without just compensation is found in: a. the First Amendment. b. the Ninth Amendment. c. state constitutions. d. the Eminent Domain Statute enacted by Congress.

C

The requirement that a classification have a substantial relationship to an important governmental objective is known as the: a. rational relationship test. b. strict scrutiny test. c. intermediate test. d. Contract Clause.

C

The right of redemption would require: a. a court order. b. assent of all parties. c. payment of the entire debt with interest. d. payment only of past due installments.

C

The source of law best suited to making drastic or comprehensive change is: a. common law. b. the federal court system. c. statutes. d. state court decisions.

C

The state of Alabama passes a statute which requires that male heirs be preferred over female heirs in selecting an executor of an estate. Laura, a lawyer, would like to be the executor of her father's estate, but so would her eighteen-year-old brother who just flunked out of college. She challenges the provision as being a violation of the Equal Protection Clause of the Fourteenth Amendment. The case is now under consideration by Alabama's highest court. In deciding the constitutionality of the provision, the court will: a. apply the rational relationship test. b. apply the strict scrutiny test. c. apply the intermediate standard test. d. create a new test

C

The three distinct and independent branches of the United States government are: a. the executive branch, the House of Representatives, and the U.S. Senate. b. the federal judiciary, the House of Representatives, and the U.S. Senate. c. the federal judiciary, the Congress, and the executive branch. d. the state government, the federal government, and local government.

C

The tort of __________ is a false communication, which injures a person's reputation and good name by disgracing him and diminishing the respect in which he is held. a. false light b. intrusion c. defamation d. disparagement

C

Under a distributorship: a. the distributor, like an agent, does not take title to the merchandise it receives. b. the producer bears many of the risks connected with commercial sales. c. both the producer and the distributor must take special care to ensure that the arrangement does not violate the antitrust laws of their respective governments. d. multinational enterprises wishing to exploit an intellectual property right sell to a foreign company the right to use such property.

C

Under the Restatement, if there are successive assignments of the same right: a. the first assignee to notify the obligor prevails. b. the latest assignee is usually entitled to the assigned right. c. a prior assignee is entitled to the assigned right to the exclusion of a subsequent assignee in most circumstances. d. a subsequent assignee is entitled to the assigned right unless a prior assignee gave value and obtains either a judgment against the obligor or a new contract with the obligor.

C

Under the UCC, __________ refers to the manner and extent to which the respective parties to a contract have accepted successive tenders of performance by the other party without objection. a. course of dealing b. usage of trade c. course of performance d. integrated document

C

Under the Uniform Commercial Code, when the minor has sold goods and the buyer has resold them to a good faith purchaser for value: a. the minor can disaffirm and recover the property. b. both the purchaser from the minor and the good faith purchaser for value acquire legal title. c. the good faith purchaser for value acquires legal title. d. the good faith purchaser for value receives a voidable title.

C

Under the parol evidence rule, which of the following types of evidence may be used to vary or contradict the written agreement? a. Prior oral or written agreements. b. Contemporaneous oral or written agreements that change the contract. c. Subsequent oral or written agreements modifying the original agreement. d. Two of the above, (a) and (b).

C

Under which of the following circumstances would a court be unlikely to enforce the illegal contract? a. Where the aggrieved party was unaware of the illegality. b. Where a party withdraws from an illegal agreement prior to performance. c. Where the agreement is with an unlicensed attorney. d. Where one of the parties is less at fault than the other.

C

What is another name for the main purpose doctrine? a. The collateral promise rule. b. The possibility test. c. The leading object rule. d. The suretyship provision.

C

When a trial is conducted with a jury, the judge determines issues of __________ and the jury determines questions of __________. a. evidence, law b. law, evidence c. law, fact d. fact, law

C

Where there has been informal rulemaking or informal adjudication by an administrative agency and the decision by that agency is then appealed to the courts, the court will generally apply what standard in reviewing factual determinations? a. The unwarranted by the facts standard. b. The substantial evidence standard. c. The arbitrary and capricious standard. d. The beyond a reasonable doubt standard.

C

Which equal protection test is applied to cases based on gender and legitimacy? a. The rational relationship test. b. The strict scrutiny test. c. The intermediate test. d. All of the above.

C

Which of the following agents would not have authority to contract with third parties on behalf of the principal? a. A salesman who sells his employer's goods. b. A manager who hires employees for the store owner. c. A factory worker hired to operate a machine. d. A buyer who regularly buys merchandise for a store. e. All agents have authority to contract with third parties on behalf of their principals.

C

Which of the following involves an invalid assignment that a court would not enforce? a. An assignment of a savings account accompanied by the delivery of the passbook. b. An assignment lacking consideration. c. An assignment of an automobile liability insurance policy accompanied by the delivery of the policy. d. An assignment in writing signed by the assignor and delivered to the assignee.

C

Which of the following is INCORRECT regarding zoning? a. Zoning restrictions can be used to regulate, but not to take, private property. b. A variance permits an otherwise impermissible use of the property. c. A zoning ordinance needs no reasonable relationship to public health, safety, or morals to be upheld. d. A nonconforming use may be permitted where property was so used prior to adoption of the zoning ordinance.

C

Which of the following is NOT a major duty, which the agent owes to the principal? a. Duty to obey instructions. b. Duty to act in good faith and with loyalty. c. Duty to indemnify. d. Duty to exercise care.

C

Which of the following is NOT always necessary in order for a valid contract to be formed? a. Mutual assent. b. Legality of purpose. c. A writing. d. Competent parties.

C

Which of the following is NOT true regarding specific performance? a. It will not be granted if money damages would be adequate to compensate the injured party. b. It is granted in contracts involving unique items of personal property. c. It will be granted frequently in contracts involving the sale of goods. d. The courts will not order directly the specific enforcement of contracts for personal services.

C

Which of the following is a true statement? a. A treaty signed by the president and approved by the Senate has the legal force of a federal statute. b. A federal statute may supersede a prior treaty. c. Both (a) and (b). d. Neither (a) nor (b).

C

A federal agency that wishes to adopt administrative rules must do so in compliance with the: a. Administrative Procedures Act. b. U.S. Constitution. c. agency's enabling statute. d. Rules must be adopted in compliance with all of the above.

D

Which of the following is an objective of the Treaty on European Union? a. To create cultural diversity among the member nations to increase tourism. b. To develop individual national autonomy on justice and home affairs. c. To promote economic and social progress by creating an area without internal borders and by establishing an economic and monetary union. d. None of the above.

C

Which of the following is characteristic of an executive administrative agency? a. It has complete independence from the president. b. It deals only with executives of major corporations. c. It is housed within the executive branch of the government. d. It has complete independence from Congress.

C

Which of the following is correct with regard to the capacity of an agent? a. The incapacity of the agent disqualifies him from making a contract that is binding on his principal. b. No mental capacity is necessary for an agent. c. If an incompetent person who is not under guardianship appoints an agent, contracts made by that agent are voidable. d. A young child or a person under guardianship has the capacity to act as an agent.

C

Which of the following is correct with respect to a grand jury? a. The grand jury decides the ultimate guilt or innocence of the defendant. b. The grand jury hears testimony of the defendant. c. The grand jury issues an indictment if it finds sufficient evidence to justify a trial on the charges alleged. d. All of the above are correct.

C

Which of the following is correct with respect to election of remedies? a. The Code follows the doctrine of election of remedies with respect to contracts for the sale of goods. b. The remedy of specific performance is consistent with that of restitution. c. A person who seeks an injunction may also seek incidental damages for the breach. d. All of the above are correct.

C

Which of the following is correct with respect to the act of state doctrine? a. It allows foreign countries to be liable for their torts. b. It allows state governments in the United States to ignore treaties entered into by the United States. c. It provides that the judicial branch of a nation should not question the validity of actions taken by a foreign government within that foreign sovereign's own borders. d. It is a very recent addition to U.S. law.

C

Which of the following is not generally required in order to have a valid contract? a. Mutual assent. b. A lawful purpose. c. Fairness of the bargain. d. Parties who have contractual capacity.

C

Which of the following is true regarding noncompliance with the statute of frauds? a. The basic legal effect under the statute of frauds and the UCC differs. b. The statute of frauds applies to executed and executory contracts. c. A party to a contract which was unenforceable because of the statute of frauds but who relied upon the contract may recover in restitution the benefits he conferred on the other party. d. The doctrine of promissory estoppel cannot displace the requirement of a writing under a statute of frauds.

C

Which of the following is untrue regarding the contracts of intoxicated persons? a. If an intoxicated person is unable to understand the nature and consequences of his act, then the contract is voidable. b. The effect of intoxication is generally the same as that given to contracts that are voidable because of incompetency. c. Slight intoxication will destroy one's contractual capacity. d. To make a contract voidable, a person need not be so drunk that he is totally without reason or understanding.

C

Which of the following need NOT be proved in order to establish the defense of economic duress? a. That one side involuntarily accepted the terms of another. b. That circumstances permitted no other alternative. c. That one party explicitly made the economic threat. d. That the circumstances leading up to the contract were the result of coercive acts of the opposite party.

C

Which of the following promises in consideration of marriage would be outside the statute of frauds? a. In consideration of Joan's promising to marry him, Dwight promises to pay her an allowance and to give her all of his property upon his death. b. John and Mary mutually agree that their marriage shall not affect the existing property rights of the other. c. John and Joan mutually promise to marry each other in a formal ceremony on June 23. d. Joan promises to release a money judgment against Steven in consideration of his marrying her.

C

Which of the following statements best describes charitable subscription promises? a. They are generally not enforceable. b. They are equated by the law with gifts. c. They are generally enforceable if there is reliance or a probability of reliance by the charity. d. Courts generally find that it would be unjust to enforce them because persons who promise charitable subscriptions do not expect to be held accountable for them.

C

Which of the following would NOT be a merchant under Article 2 of the UCC? a. The owner of a hardware store which sells paint. b. A car mechanic who fixes used cars and sells them in his spare time. c. A person who inherits three speedboats and wants to sell them to buy a car. d. Two of the above, (b) and (c).

C

Which of the following would always be considered to be contrary to public policy? a. A contract which contains a covenant not to compete. b. A contract offered on a take-it-or-leave-it basis. c. An agreement to pay someone to make false statements about a competitor's product. d. An agreement which contains an exculpatory clause.

C

Which of the following would be an invalid restrictive covenant in a deed? a. A requirement that all buildings are of a certain style. b. A requirement that all homes contain a double garage. c. An agreement not to sell to African-Americans. d. An agreement requiring a minimum size for homes.

C

Which of the following would be considered to be a misrepresentation of a material fact for purposes of establishing fraud in the inducement? a. A statement of value, such as "This is the best car in town for the money." b. "This style of jacket is going to be the most popular style next year." c. "This car has a new radiator." d. "In my opinion, this is the best buy for the money."

C

Which one of the following is NOT true of a criminal suit? a. A criminal suit is brought by the government, not by an individual. b. In a criminal suit, guilt is never presumed. c. A purpose of a criminal suit is repayment to the victim. d. A criminal suit requires a higher burden of proof than a civil suit.

C

William, who is a waiter, is injured when an unopened bottle of cola explodes in his hand while he is putting it into the restaurant's cooler. If William wants to sue the bottling company for his injuries: a. he will lose, because it will be impossible for him to prove that the bottle was overpressurized by the bottler. b. he will lose, because the bottling company has no duty to him. c. he will probably win if the court allows him to use the res ipsa loquitur doctrine. d. he will win based on the last clear chance rule.

C

A clause apportioning the liability and responsibilities of the parties in the event of an unforeseeable occurrence, such as a typhoon, tornado, or other disaster is a(n): a. act of state clause. b. OPIC clause. c. letter of credit. d. force majeure clause.

D

A constitution: a. restricts powers of government. b. specifically enumerates certain liberties of the people. c. establishes governmental structure. d. All of the above.

D

A doctrine allowing a mortgagor to relieve her property from a mortgage lien by paying the debt that the mortgage secures is known as: a. rehabilitation. b. the covenant of quiet title. c. foreclosure. d. a right of redemption.

D

A foreign company, partially owned by that foreign government, manufactures televisions in the foreign country. The cost to the company for the manufacture of the product is the equivalent of $60 in the U.S. Because of excess production, the firm exports 50,000 sets to the United States where they are sold for $75 each. If the nearest rival U.S.-made set sells for $85, the action of the foreign company: a. constitutes price-fixing. b. violates the GAAT anti-dumping provisions. c. violates the Sherman Act, because of the involvement of the foreign government in the company. d. appears to be legal.

D

A minor agency rule: a. if disapproved by Congress, must be resubmitted to both houses of Congress. b. if disapproved by Congress, must be revised according to Congressional guidelines. c. if disapproved by Congress, has no chance of approval by the President. d. takes effect but, if after being submitted to Congress it is disapproved, it is treated as though it had never taken effect.

D

A misrepresentation is material if: a. it would likely induce a reasonable person to enter into a transaction. b. the maker knows it would likely induce the other party to enter into the transaction. c. it is made knowingly. d. Either (a) or (b).

D

A power of avoidance held by a party may be lost if: a. the contract is affirmed. b. there are unreasonable delays in exercising the power. c. the rights of third parties intervene. d. All of the above.

D

A principal factor that the courts consider in determining limitations on the causal connection between the defendant's negligence and the plaintiff's injury is: a. negligence per se. b. unforeseeable consequences. c. superseding causes. d. Both (b) and (c) are correct.

D

A principal has no duty to compensate his or her agent if: a. the agent breached the duty of obedience. b. the agent breached the duty of loyalty. c. it is a gratuitous agency. d. All the above are correct.

D

A typical enabling statute grants municipalities all but which of the following powers? The power to: a. regulate the bulk of buildings to be erected. b. divide the entire municipality into districts of such number and shape as may be deemed best. c. determine the area of open spaces within buildings. d. All of the answer choices are typical powers granted by enabling statutes.

D

A warrant is required for a search by the police except where: a. the police are in hot pursuit of a fugitive. b. voluntary consent is given to the search. c. evidence of a crime is in plain view of the police officer. d. All of the above.

D

A woman claiming sex discrimination because she was passed over for a promotion by her employer, a local corporation specializing in the manufacture of automobile parts, would have her case reviewed under the __________ test of the Equal Protection Clause. a. rational relationship b. intermediate c. strict scrutiny d. None of the above

D

A(n) __________ is a method of discharging a contract in which a third party becomes bound upon a promise to the obligee. a. assignment b. delegation c. partial assignment d. novation

D

A(n) __________ is an intended beneficiary of a contract who receives the benefits of the contract as a gift. a. incidental beneficiary b. intended beneficiary c. assignor d. donee beneficiary

D

According to the UCC, an enforceable agreement involving the transfer of title of goods from a seller to a buyer for a price is called a(n): a. commercial contract. b. express contract. c. formal contract. d. sale.

D

According to the __________ Amendment, "the powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." a. First b. Fourth c. Fifth d. Tenth

D

Albert read ElectroCorp's ad in the local newspaper advertising a music system for $89. Albert rushed to the store to buy the system only to be told by the salesperson that the ad was a misprint and the price should have been $289. Albert gave the salesperson $89 plus sales tax and demanded the music system. a. The ad is a firm offer by the merchant, and the music system must be sold for $89. b. The ad is a contract and the store must abide by terms stated in the contract. c. The store must accept the price stated in the ad, but only if Albert has a copy of the ad with him. d. Albert is merely making an offer to ElectroCorp to buy the music system for $89 plus sales tax.

D

Alice was briefly married at the age of 16. She is now 28 years old and plans to marry Henry. Henry's sister found out about Alice's first marriage and then told Henry's parents. Alice now wants to sue Henry's sister for public disclosure of private facts. Does Alice have a case against Henry's sister? a. No, because marriage is a public and not a private fact. b. No, because telling Henry's parents is not sufficient publicity for public disclosure of private facts. c. No, because the statement is true. d. No, because marriage is a public and not a private fact, and because telling Henry's parents is not sufficient publicity.

D

All but which of the following is an exclusive federal power? a. The power to establish laws regarding bankruptcy. b. The power to grant copyrights. c. The power to enter into treaties. d. Police power.

D

All of the following except which one is a duty of an agent? a. Account for money received on behalf of his principal. b. Inform his principal of any information relevant to his agency. c. Refrain from competing with his principal. d. After the agency is terminated, refrain from using any information gained while an agent.

D

American jurists __________ and __________ defined law in a functional sense as predictions of the way that a court will decide specific legal questions. a. Roscoe Pound and Alexander Hamilton b. Blackstone and Austin c. Roscoe Pound and Benjamin Cardozo d. Oliver Wendell Holmes and Benjamin Cardozo

D

An "anti-dumping" statute: a. is applied to both foreign companies and domestic companies which charge a higher price for products sold in the U.S. than the price charged abroad. b. has been declared invalid because of the inherent discrimination against foreign corporations. c. is administered by the FTC. d. makes illegal the sale of exported goods from one country to another country at less than normal value.

D

An absolute privilege exists to protect which of the following defendants in defamation cases? a. Members of Congress on the floor of Congress. b. Statements made by the President of the U.S. in the discharge of official duty. c. Statements about a third party made to one's spouse when the couple is alone. d. All of the above.

D

An ad in a newspaper or a circular describing goods and stating prices would generally be considered: a. a firm offer if made by a merchant. b. an offer if made by a merchant, but not a firm offer. c. an offer irrespective of who made the offer. d. an invitation to buyers to make an offer to buy goods.

D

An agent may lose the right to compensation: a. by breaching the agency contract willfully and deliberately. b. if the specified result of the contract is not obtained. c. if the duty of loyalty is breached. d. All of the above e. None of the above.

D

An agreement to refrain from a particular trade, profession, or business is enforceable if: a. the purpose of the restraint is to protect a property interest of the promisee. b. the agreement is for no longer than two years. c. the restraint is no more extensive than is reasonably necessary to protect the promisee's property interest. d. Both (a) and (c) are correct.

D

An enabling statute: a. delegates the power to zone to local city and village authorities. b. typically allows municipalities to regulate and limit building heights. c. typically grants the power to limit the intensity of use in a particular area. d. All of the above. e. None of the above.

D

An example of an unenforceable oral contracts is: a. an oral promise to guarantee the additional duties of another. b. an oral agreement to substitute different land for that described in the original lease contract. c. an oral agreement to extend an employee's contract for six months to a total of two years. d. All of the above. e. (a) and (c), but not (b)

D

An express condition is usually preceded by which of the following terms? a. While. b. After. c. Provided that. d. All of the above.

D

An obligation imposed by law where there has been no agreement or expression of assent by word or act on the part of either party involved is a(n): a. implied in fact contract. b. express contract. c. void contract. d. quasi contract.

D

Andrew noticed Michael and his pregnant wife Georgette walking down the street and drove his car within inches of Michael, as a joke. Michael wasn't injured, but his wife suffered severe mental distress and needed to be hospitalized in order to save the pregnancy. Andrew has: a. no liability to Georgette, because he has not committed a tort against her. b. committed the tort of battery against Georgette. c. committed the tort of battery against Michael but has committed no tort against Georgette. d. committed the tort of intentional infliction of emotional distress against Georgette.

D

Anita included Bob's name and photograph in a list of the FBI's top ten criminals. Bob has never been convicted of any crime and is horrified by the thought of being considered a criminal. This: a. is defamation. b. is false light. c. is nuisance. d. could be either defamation or false light.

D

Anita, who is a seamstress, agrees to sew a suit for Bryan, who promises in return to pay Anita $500 for the suit if he is satisfied with it. Anita completes the suit, which fits Bryan perfectly. Nevertheless, he says that he is not satisfied and refuses to accept or pay for it. If Bryan is honest in his dissatisfaction, but he is unreasonable: a. Bryan must pay for the suit even if he is dissatisfied. b. this is an illusory contract, because only Anita is bound. c. Bryan's approval is to be judged by an objective standard. d. Anita has no recourse against Bryan, because she agreed to the subjective standard.

D

Arnie negligently stopped his car on the highway. Beth, who was driving along, saw Arnie's car in sufficient time to attempt to stop. However, Beth negligently put her foot on the accelerator instead of the brake and ran into Arnie's car. In this case: a. Arnie's contributory negligence will prevent his recovery from Beth in all jurisdictions. b. Beth had the last clear chance to avoid the accident and will bear legal responsibility for it. c. Arnie has assumed the risk of the accident. d. because both parties were negligent, in a state that follows the pure comparative negligence doctrine, both parties will share the liability for their injuries.

D

Aunt Ellie promises her 21-year-old nephew, Robbie, that she will pay him $100 if he quits smoking for a month. If Robbie does, is there a binding contract? a. No, because Robbie gave no benefit to Aunt Ellie. b. No, because Robbie did not suffer any detriment. c. Yes, because stopping smoking will benefit Robbie's health. d. Yes, because Robbie gave up a legal right.

D

Barb goes to Marlin's Department store to look for clothes. The store happens to be in the process of remodeling, and there is a lot of clutter in the aisle. Barb trips over the clutter and breaks her leg. Under the Second Restatement, what standard of care does the store have toward Barb under the circumstances? a. None, because she came to the store voluntarily. b. The store owes her a duty of only ordinary care, because she is a trespasser. c. Because she is a public invitee, the store must warn her of hazards of which the store knows but which Barb is not likely to recognize. d. Because Barb is a business visitor, the store must exercise reasonable care to protect her against dangerous conditions she is unlikely to discover.

D

Barbara owes Arthur $2,000. On July 1, Arthur assigns the right to the $2,000 to Caleb. Thereafter, on July 15, Arthur assigns the same right to David, who in good faith gives value for it and knows nothing about the first assignee. In this case: a. Caleb has the right to the payment of $2,000. b. David has the right to the $2,000. c. neither Caleb nor David can claim the $2,000. d. The rule differs by state.

D

Bill recently borrowed $50 from Ricardo for a couple of weeks. Bill, still short of cash, tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you." Ricardo tells Bill, "OK, that's great!" Ricardo's performance of his new duty will be: a. an accord. b. a novation. c. a rescission. d. a satisfaction.

D

In which of the following areas do special state trial courts have jurisdiction? a. Traffic offenses. b. Administration of wills and estates. c. Family courts with jurisdiction over divorce and child custody cases. d. Both (b) and (c) are correct. e. None of the above.

D

Bill, a builder, wants to submit a bid on a city sewer project. He computes the cost, but mistakenly omits the cost of one item. Accordingly, he submits a bid of $430,000 to the city. The next highest bid is $675,000, and the rest of the bids are even higher. The city is happy to have such a low bid, so it accepts Bill's bid and awards him the contract for the job, even though the city engineer is of the opinion the job cannot be done for less than $650,000. In this case: a. Bill must perform for the agreed upon price, because he has made a unilateral mistake. b. the city was aware of Bill's mistake. When it accepted the bid, with knowledge of Bill's mistake, the city sought to take an unconscionable advantage of Bill's error. c. there was a palpable unilateral mistake. d. Two of the above, (b) and (c).

D

Bryant knowingly destroyed documents in order to impede an SEC investigation of his company. Under the Sarbanes-Oxley Act: a. Bryant is subject to fines. b. Bryant is subject to imprisonment of up to 20 years. c. only Bryant's company, rather than Bryant, will be subject to criminal penalties. d. Both (a) and (b).

D

Business torts consist of: a. interference with contractual relations. b. disparagement. c. fraudulent misrepresentation. d. (a), (b), and (c) are correct.

D

Carl loans Dan $1,500 for Dan's honeymoon. Dan gives Carl his ruby ring as security for the loan and after a year, tells Carl he may as well sell it to recoup the $1,500. When Dan's wife hears of this, she persuades Dan to call Carl and get back the ring. Can Carl sell it anyway? a. Yes, because Carl has apparent authority. b. Yes, because Carl has an express agency. c. No, Carl's authority has been revoked. d. Yes, because Dan cannot terminate this agency except by discharging the obligation.

D

Carlos owns a store in Polk County. His trade extends throughout River City, but not beyond the county limits. He sells his store to Virginia and, as part of the transaction, agrees not to engage in the same business anywhere within the state for a period of four years. The agreement: a. is reasonable. b. is unreasonable. c. unduly interferes with the interests of the public. d. Two of the above, (b) and (c).

D

Carson, who is an agent for Peter, breaches his fiduciary duty to Peter. Carson: a. is liable to Peter for breach of contract. b. is liable to Peter in tort for any losses caused by the breach. c. must make restitution for any profits or property received in breach of this duty. d. All of the above are correct.

D

Characteristics of a common law system include which of the following? a. A common law system relies heavily on comprehensive legislative enactments and an inquisitorial system of determining disputes. b. In a common law system, the judiciary initiates litigation, investigates pertinent facts, and conducts the presentation of evidence. c. The common law system prevails in most of Europe and Scotland. d. A common law system relies heavily on the judiciary as a source of law and on the adversary system for settling disputes.

D

Chris and Bev just purchased a house and twenty acres. They now have the right to use that property: a. for their own benefit and enjoyment in any manner they choose. b. for their own benefit and enjoyment as long as they do so in a reasonable manner. c. exercising reasonable care to protect others who are not on the property. d. Both (b) and (c).

D

Contract law is significant in that it is basic to other fields of law such as: a. sales of personal property. b. commercial paper. c. secured transactions. d. All of the above.

D

Contracts that are implied in law: a. are obligations imposed by law on grounds of justice and equity. b. are intended to prevent unjust enrichment. c. do not rest upon the assent of the contracting parties. d. All of the above.

D

Controls that apply to the use of privately owned property include but are not limited to: a. zoning. b. eminent domain. c. restrictive covenants. d. All of the above.

D

Darrell owns a parcel of land that is encumbered by a mortgage held by the First National Bank. Darrell agrees to sell the land to Paul for $50,000. Darrell and Paul together go to the First National Bank to discuss the sale and purchase with the banker. Darrell, Paul, and the banker sign an agreement stating that Paul will assume the mortgage and that Darrell will be discharged from all further liability on the mortgage. In this case: a. the bank is a third party donee beneficiary. b. the bank can collect from Darrell if Paul defaults. c. Darrell is a third party beneficiary of the agreement between Paul and the bank. d. the agreement among the three is a novation.

D

Defenses to an action in strict liability include: a. contributory negligence only. b. contributory negligence and comparative negligence. c. comparative negligence only. d. express voluntary assumption of risk and in some states comparative negligence.

D

Diversity of citizenship exists when: a. the plaintiffs are all citizens of a state or states different from the state or states of which the defendants are citizens. b. a foreign country brings an action against citizens of the United States. c. the controversy is between citizens of the United States and citizens of a foreign country. d. All of the above.

D

Divided Parcel (DP) includes the following on its mailing receipts: "We are not responsible for any damages to packages whether or not through the intentional or reckless fault or negligence of our employees. Send packages at your own risk." Mary reads this clause but sends her watch back to the manufacturer to be repaired anyway. The watch is destroyed when the DP driver uses the package for a ball and tosses it to his buddy. Mary is: a. out of luck because the clause was communicated to her. b. out of luck because she should have insured the package. c. likely to collect from DP since exculpatory clauses always violate public policy. d. likely to collect from DP because it attempted to excuse intentional and reckless behavior.

D

Express contracts and implied in fact contracts: a. are both genuine contracts. b. are equally enforceable. c. are not really contracts. d. Two of the above, (a) and (b).

D

For a ratification to be effective, the principal: a. must have knowledge of all material facts concerning the transaction. b. must communicate her intent to ratify to the third party. c. must have been in existence when the act was done. d. Both (a) and (c) are correct.

D

Judicial review extends to: a. legislation. b. acts of the executive branch. c. decisions of inferior courts. d. All of the above.

D

Franco has the permission of George to walk across his yard on the way to school. Franco now brings twenty of his friends across the yard, and they stop to play ball. In this case: a. Franco is not guilty of trespass to real property, because he had George's permission to cross the yard. b. Franco's friends are not guilty of trespass to real property, because they were with Franco. c. Franco is guilty of trespass to real property, because he walked across the yard. d. Franco and his friends are guilty of trespass to real property, because they played ball in George's yard.

D

Fred is a concert violinist who is scheduled to perform at Carnegie Hall for the first time. He buys what he is told is a Stradivarius violin from a well-known, reputable dealer in quality violins, and he pays the going rate for a Stradivarius. He later learns the violin is an imitation, although it is a good imitation, which fooled even the dealer. In this case: a. Fred has made a unilateral mistake and cannot void the contract. b. the dealer has committed fraud in the inducement. c. the sale is voidable by the purchaser for mutual mistake. d. the sale may be rescinded, because the dealer has made a nonfraudulent misrepresentation.

D

General contract law states that contracts that have to be in writing must: a. specify the parties to the contract. b. specify the subject matter and essential terms. c. be signed by the party to be charged or by his/her agent. d. All of the above. e. (a) and (b) but not (c)

D

Hal promises not to foreclose on a mortgage that he holds on an office complex that Christopher owns. In reliance on this promise, Christopher spends $200,000 to remodel the complex. Which of the following is correct with regard to Hal's promise? a. Hal's promise not to foreclose is unsupported by consideration. b. Hal's promise is noncontractual. c. Hal's promise may be enforced against him based upon the doctrine of promissory estoppel. d. All of the above.

D

Harms or injuries that are tortious may be inflicted: a. intentionally. b. negligently. c. without fault. d. In all of the above ways.

D

Harris was awarded $4 million in damages in a malpractice case against Dr. Kelsoe. The doctor's attorney filed a motion for a new trial. The motion may be granted if: a. the damages are excessive. b. the verdict was against the weight of the evidence. c. the trial was unfair. d. All of the above.

D

Harry said to Marge, "I have a ring once owned by Marilyn Monroe. Would you like to buy it for $500?" Marge pays for the ring, but the next day a friend tells her that Harry had recently purchased the ring at a local store. Marge enjoys wearing the ring and wears it constantly for twelve months. Finally, she goes to Harry and says, "Here is the ring you lied about. Give me my $500." Most likely Marge will: a. get her money back since Harry's statement was fraudulent. b. not get her money back since she should have investigated the facts about the ring more carefully. c. not get her money back since she is a good faith purchaser of merchandise. d. not get her money back since she has affirmed the contract by taking an unduly long time to disaffirm.

D

How are ALJs selected? a. They are appointed by the president and then confirmed by Congress. b. They are elected by Congress. c. They are appointed by the president without confirmation by Congress. d. They are appointed by the agency through a professional merit selection system.

D

If the contract does not state otherwise, standard goods under a contract for sale to meet the satisfaction of the buyer must: a. meet the buyer's actual satisfaction, if honest and in good faith, even if unreasonable. b. meet the buyer's actual satisfaction, only if reasonable. c. meet a subjective standard. d. satisfy a reasonable person.

D

If there is no time specified for the acceptance of an offer, when does the offer terminate? a. After 48 hours from receipt of the offer. b. After two weeks from dispatch of the offer. c. After 30 days from receipt of the offer. d. After a reasonable period of time, which depends on the circumstances.

D

In an article about a prominent judge, a newspaper indicates that the judge had organized crime connections. The judge sues. The judge will have a cause of action: a. if the suit is for defamation and the newspaper responsibly checked its sources. b. if the suit is a suit for intrusion. c. whether or not the newspaper checked its sources as long as the information printed is ultimately found to be untrue. d. if the statement, which was untrue, was made with malice.

D

In determining the duty of care owed by a defendant using the reasonable person standard, the court will consider which of the following factors? a. The existence of emergency conditions. b. A physician's training and years of experience. c. A person's severe mental retardation. d. (a) and (b), but not (c).

D

In determining the meaning of a contract, which of the following will have first priority? a. Course of performance. b. Course of dealing. c. Usage of trade. d. Express terms.

D

In diversity of citizenship cases, federal courts apply: a. federal substantive and procedural law. b. state substantive and procedural law. c. state procedural and federal substantive law. d. federal procedural and state substantive law.

D

In international business transactions, a documentary letter of credit: a. is a method of payment for goods that reduces the seller's risk from the possibility that the goods will be shipped, but not paid for. b. is a type of bill of lading. c. is a guarantee by the seller's bank that it will pay the price of the exported goods if the seller breaches the contract. d. All of the above.

D

In order for a deed to be effective between the purchaser and the seller of real estate, the deed must: a. be in writing and signed by both parties. b. include the actual sale price. c. be recorded pursuant to the state statute. d. be delivered to the buyer by the seller with the intent to transfer title.

D

In reading the title of a case, Smith v. Jones: a. Smith is the plaintiff. b. Jones is the plaintiff. c. the determination of who is the plaintiff depends on the level of the court at which the case is being heard. d. it is not always possible to determine from the case title which party is the plaintiff.

D

In reviewing an agency action, which of the following are included in the questions of law a court will consider? a. Whether the agency violated any constitutional provision. b. Whether the agency acted contrary to the procedural requirements of the law. c. Whether the agency exceeded its authority. d. All of the above.

D

In which of the following cases will an oral contract for the sale of goods of $750 be enforceable without a writing? a. The goods are to be specially manufactured for the buyer and the seller has made a substantial beginning of their manufacture. b. A party admits in an answer to a complaint in a lawsuit that the contract was made. c. Delivery and acceptance of the goods has been made. d. All of the above.

D

In which of the following situations does the parol evidence rule not apply? a. Where a typographical error occurs in the document and obviously does not represent the agreement of the parties. b. Where one of the parties to the contract lacks contractual capacity. c. The parol evidence rule applies in both of the above situations. d. The parol evidence rule does not apply in either (a) or (b).

D

In which of the following situations is restitution available as a remedy? a. As an alternative remedy for a party injured by breach. b. For a party in default. c. For a party who may not enforce the contract because of the statute of frauds. d. All of the above are situations in which restitution is available.

D

In which of the following situations is there a third party incidental beneficiary who would be unable to enforce the agreement? a. Wholesalers, when the buyer of a business promises the seller that he will pay outstanding debts to wholesalers who have supplied inventory for the business. b. Workers, where a contractor agrees to post a performance bond to assure payment of workers and material suppliers. c. A debtor, where a new partner enters an accounting firm and agrees to pay a share of debts incurred prior to his admission to the firm. d. A doctor, when an automobile accident policy states that the insurance company will reimburse the insured for medical expenses incurred as a result of an automobile accident.

D

In which of the following situations will a court grant specific performance? a. In a case involving breach of contract for the sale of real property. b. In contracts for personal services. c. Where goods are unique or rare. d. Two of the above, (a) and (c).

D

In which of the following situations would a minor be unable to disaffirm a contract which he had made? a. Upon restoring the consideration received in a situation involving a fully executed contract. b. Where real property is involved, upon reaching the age of majority. c. During the time of his minority or for a reasonable time thereafter. d. Where the minor wishes to perform part of a contract and disaffirm another part of the same contract.

D

Intent as used in the law of intentional torts requires the defendant to: a. have knowledge or reckless disregard of the negligence of her action. b. desire to cause the consequences of her action. c. believe the consequences are substantially certain to result from her action. d. Both (b) and (c) are correct.

D

Intentional harm to property includes the torts of: a. trespass to real and personal property. b. nuisance. c. conversion. d. All of the above.

D

Invasion of privacy consists of: a. appropriation. b. intrusion. c. public disclosure of private facts. d. All of the above are invasions of privacy.

D

Jack lived in a block with two-family homes. He finished his third floor for his family and when his children left home, he wanted to rent the floor as an apartment. The town enacted a zoning ordinance restricting occupancy of the building to a maximum of two unrelated families. Jack's best argument for waiving the ordinance is: a. he can make more money renting two floors. b. he cannot meet the costs of maintaining the building unless he rents both floors. c. he is not going to add any more occupants to the building. d. he was using the third floor as an apartment for rent before the zoning ordinance was enacted.

D

James offers to sell four acres of land to Jennifer for $8,000 and further offers to keep the offer open for one month if Jennifer will pay him $100 for the privilege. Jennifer pays James $100. Which statement describes the payment of $100? a. An implied in fact contract has been formed. b. A unilateral contract has been formed. c. This created a formal contract. d. This created an option contract.

D

Jan owns lots in the Cruz neighborhood, where she was planning to build an 8-story apartment complex. Cruz has adopted a single-family dwelling ordinance that encompasses Jan's lots. Jan goes to the library and finds she can attempt to get judicial review of ordinances based on the following: a. the zoning ordinance is invalid. b. the ordinance has been applied unreasonably. c. the ordinance amounts to confiscation of property. d. All of the above.

D

Jason's mother would like him to go to college, so in June he enrolls at the local university. He also quits his job and tells his mother his plans to take classes. His mother says, "I'm so happy that you are going to college that I want to pay for your books." Jason then sends her a bill for $485. Jason's mother's promise is: a. enforceable, because Jason returned to college. b. enforceable, because Jason is giving up the right to do something else. c. unenforceable, because it is a unilateral contract. d. unenforceable, because Jason had already enrolled in school when she made the statement that she wanted to pay for his books, and there is no consideration.

D

Jesse purchases Erica's house and in so doing assumes the mortgage. Which of the following is true? a. Jesse is personally liable to pay the mortgage. b. Erica is personally liable to pay the mortgage. c. Erica is no longer liable to pay the mortgage. d. Both (a) and (b). e. Both (a) and (c).

D

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 he had changed his mind and would be unable to make the trip. He also refused to pay Jim any compensation. In this case: a. because the contract is executory, Jim has suffered no damages, and Kevin has no obligation to pay any compensation. b. Kevin has anticipatorily repudiated the contract and is liable to Jim for damages. c. Jim may wait until June 1 to see if Kevin will perform his contractual duties and, if he does not, there is a material breach. d. Both (b) and (c) above are correct.

D

John is a Haitian who has obtained U.S. citizenship. State X passes a law that all Haitian-born citizens must submit to AIDS testing. The courts will review this law based on: a. deferring to the legislature to determine whether such a classification of persons is constitutionally permissible. b. clear and convincing evidence that there is no reasonable basis for the legislation. c. the rational relationship test. d. the strict scrutiny test.

D

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 this loan. c. the oral contract is enforceable only through the doctrine of promissory estoppel. d. the oral contract is enforceable because Paul fully performed his obligation under the contract.

D

Mark is out sailing in his boat one evening when he hears a young girl crying for help in the middle of the lake. Which of the following is true? a. Mark must help the girl or he will be liable for negligence. b. Mark must help the girl only if he knows her. c. Mark must help the girl if he is the girl's uncle. d. Mark must help the girl if he begins to rescue her and increases her danger.

D

Maylin's offer stated that Camille's acceptance should be by regular mail, to be received no later than June 30. Camille didn't decide to accept until June 29 and was afraid regular mail would take too long. Camille faxed an acceptance on June 29. Since Camille used an unauthorized means of acceptance: a. the purported acceptance is ineffective. b. under the traditional rule, the acceptance is effective if Maylin receives it on June 29 or June 30. c. under the Restatement rule, Camille's acceptance would be effective. d. Both (b) and (c).

D

Nancy, who lives in Birdville, wants to open a McHenry Roast Chicken franchise. Mark, a representative of McHenry, told Nancy, "If you will buy a lot and build a building in River City, we will give you a franchise." Nancy bought the lot and built the building as instructed only to discover that McHenry had awarded the franchise to a large corporation. McHenry claims no liability to Nancy since there was no consideration. Which statement best describes the situation? a. McHenry is not liable to Nancy since there was no consideration. b. McHenry is not liable to Nancy since there was past consideration. c. McHenry is liable to Nancy since adequate consideration was given by both parties. d. McHenry is liable to Nancy based on the concept of promissory estoppel.

D

Parties that seek to challenge agency action must: a. have standing. b. have exhausted their administrative remedies. c. be a party injured by the agency action. d. All of the above.

D

Procedural due process would require the government to establish a set of fair procedures in all but which of the following cases? a. Where Social Security benefits are denied. b. Where a juvenile criminal is sent to a detention home. c. Where a professor is fired from his tenured position. d. Where a college student is denied a private scholarship.

D

Promissory estoppel is a contractual doctrine that includes which of the following considerations? a. The courts use the doctrine of promissory estoppel to enforce noncontractual promises. b. Under this doctrine, the promisor reasonably expects that the promisee, in reliance on the promise, will be induced by the promise to take action or refrain from taking action and the promisee does so. c. The courts will not, under any circumstance, enforce promises that do not include all four of the elements of contract. d. Both (a) and (b).

D

Ralph sold a motel to Steve by stating that he had paid $250,000 for it and that his net average annual profit from the business has been $40,000. In reality he paid $100,000 for the motel and has earned a net average annual profit of only $30,000. Steve made no attempt to verify the statements until after the transaction was completed. In this case: a. Ralph has committed fraudulent misrepresentation. b. Steve is bound by the contract, because he failed to verify the statements which were made to him. c. the contract is voidable at Steve's option. d. Two of the above, (a) and (c).

D

Ratification can occur in which of the following ways? a. Through express language. b. As implied from conduct. c. Through failure to make a timely disaffirmance. d. All of the above.

D

Respondeat superior: a. imposes vicarious liability on the principal. b. makes a principal liable for the acts of independent contractors. c. makes a principal liable for the unauthorized acts of employees committed within the scope of employment. d. Both (a) and (c) are correct.

D

Roberto obtains an exclusive franchise to sell widgets for the Acme Widget Company. The exclusive franchise covers the entire State of Wisconsin for a period of three years. In this case: a. the manufacturer is obligated to use his best efforts to supply the goods even if no such clause appears in the written franchise agreement. b. Roberto has an implied obligation to use his best efforts to promote the sale of the widgets. c. under the UCC, such an agreement lacks consideration. d. Two of the above, (a) and (b).

D

Samuel Tate enters into a contract with Bill Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, which term describes the type of contract in existence? a. Quasi contract. b. Executed contract. c. Illusory contract. d. Executory contract.

D

Sources of federal law include all but which of the following? a. Rules of administrative agencies. b. Decisions of federal courts. c. Executive orders of the President. d. Hearings before the Senate.

D

Stark enters into a contract with a contractor to build a large shopping mall in River City. Donner will greatly benefit from this contract since his convenience store is adjacent to the mall. Donner in this instance is: a. an implied beneficiary. b. a partial beneficiary. c. a donee beneficiary. d. an incidental beneficiary.

D

State X passes legislation that requires that unless a mother of children under the age of 7 is found to be unfit, custody in divorce proceedings should be awarded to the mother and not the father. If this statute is challenged, the court will: a. defer to the legislature and will not determine whether such a classification of persons is constitutionally permissible. b. determine that fundamental rights and suspect classification are involved in this legislation. c. only require that the legislation conceivably bears some rational relationship to a legitimate governmental interest. d. review the legislation to see if the preference to mothers bears a substantial relationship to an important governmental objective.

D

Steve purchases a four-wheel drive truck from Belk Auto Sales. Steve is only 17 years of age. He wrecks the vehicle and attempts to disaffirm the contract and have Belk repay him all that he has paid. In the majority of jurisdictions, Steve: a. would be out of luck. b. must have the truck repaired. c. will receive his money less the depreciation in value of the vehicle. d. may simply return the vehicle and get his money.

D

Steven has a typed copy of a contract, which he would like to have Thomas sign. Thomas, who needs glasses to read typing, doesn't want to sign until he has read the document, but Steven convinces Thomas to sign it anyway, because it is a "standard" contract for this type of situation. Is the contract which Thomas signed binding upon him? a. No, because he did not read it. b. No, because he entered into it based upon fraud in the execution. c. Yes, because he has made a unilateral mistake of law. d. Yes, because he was negligent in not ascertaining its contents.

D

Steven is a manufacturer's representative for Incell Corporation. One day he receives a big-screen television as a gift from one of the clients he contacts on behalf of Incell. a. Steven must account to Incell for the gift he has received. b. The big-screen television belongs to Incell rather than to Steven. c. If he keeps the TV without telling Incell, he will have breached his fiduciary duty. d. All of the above are correct.

D

Strict scrutiny is used by the U.S. Supreme Court to carefully scrutinize: a. the First Amendment right of freedom of religion. b. the right to engage in interstate travel. c. the right to vote. d. All of the above are situations where strict scrutiny would be applied.

D

The "discovery" stage of a trial includes which one of the following? a. Production of documents. b. Written interrogatories. c. Depositions. d. All of the above.

D

The Bill of Rights: a. serves as a major restriction on the powers and authority of the federal government. b. does not apply directly to the states, but the Supreme Court has held that the Fourteenth Amendment makes many of its principles applicable to the states. c. consists of ten amendments to the U.S. Constitution that were adopted in 1791. d. All of the above are correct.

D

The CISG specifically excludes sales of which of the following? a. Goods bought for personal, family, or household use. b. Ships or aircraft. c. Electricity. d. All of the above.

D

The Commerce Clause in combination with the __________ limits the power of the states to tax. a. Fifth and Fourteenth Amendments b. Equal Protection Clause of the Fourteenth Amendment c. Takings Clause d. Import-Export Clause

D

The European Community was the predecessor to the: a. ICJ. b. GAAT. c. CISG. d. EU.

D

The Foreign Sovereign Immunities Act specifically provides that a foreign state shall be immune from neither federal nor state court jurisdiction if the suit is based on which of the following? a. A commercial activity conducted in the United States by the foreign state. b. An act that the foreign state performed in the United States in connection with a commercial activity it carried on elsewhere. c. A commercial activity performed outside U.S. borders that directly affects the U.S. d. All of the above. e. (a) and (b), but not (c).

D

The Hometown News snapped a picture of Tim as he was sleeping under a tree in the park on a warm spring day. If the paper printed the picture on the front page: a. the Hometown News is guilty of intrusion. b. the Hometown News is guilty of false light. c. the Hometown News is guilty of appropriation. d. it is unlikely that the Hometown News is guilty of any tort.

D

The National Conference of Commissioners on Uniform State Laws: a. was created by President Bill Clinton to study and report on the Uniform Commercial Code. b. is another name for the American Law Institute. c. has drafted only five uniform laws: the UCC, the Uniform Partnership Act, the Uniform Limited Partnership Act, the Uniform Probate Code, and the Model Business Corporation Act. d. has drafted over 250 uniform laws.

D

The U.S. Constitution vests power in the branches of government that form a "checks and balances" system. Those branches of government include: a. executive. b. legislative c. judicial. d. All of the above.

D

The United States and a Latin American country signed a treaty whereby the United States agreed to assist the Latin American country in controlling drug traffic. The United States, following the treaty, seized 100 square meters of land and bulldozed it, because it was a suspected haven of drug smuggling. The land in question was in Latin America, but belonged to an American citizen. Which of the following is correct? a. The treaty will supersede any general Constitutional rights because the treaty gave specific authorization for the act. b. The act was not offensive to the Constitution, because it occurred in Latin America. c. Constitutional rights apply to people, not to property. d. Constitutional rights supersede treaties.

D

The __________ Amendment prohibits excessive bail and prohibits cruel and unusual punishment. a. Fourth b. Fifth c. Sixth d. Eighth

D

The __________ is an orderly compilation of the general common law of the United States, prepared by a distinguished group of lawyers, judges, and law teachers. a. statute of frauds b. Uniform Commercial Code c. Maxims d. Restatement of Law

D

The common law system is used in: a. Australia. b. Latin America. c. England. d. (a) and (c) above.

D

The concept of conflict of interest as it relates to the law of agency includes which of the following? a. An agent may take a position that conflicts with the principal only if the principal, with full knowledge of all the facts, consents. b. An agent may not represent her principal in a transaction in which the agent has a personal interest. c. An agent may not act on behalf of adverse parties to a transaction without both principals' approval of the dual agency. d. All of the above.

D

The contractual duties owed by a principal to an agent are the duties of: a. compensation. b. reimbursement. c. indemnification. d. All of the above. e. None of the above.

D

The court in National Business Services, Inc. v. Wright found a noncompete agreement drafted for an employee of an Internet company was: a. no different in enforceability than noncompete agreements for other types of companies. b. subject to smaller geographic restrictions than for other types of companies. c. unreasonable in duration with a one-year time restriction. d. subject to larger geographic restrictions than for other types of companies. e. Both (c) and (d).

D

Which of the following can meet the scienter requirement to establish fraud in the inducement? a. Actual knowledge. b. Lack of belief in the statement's truthfulness. c. Reckless indifference as to a statement's truthfulness. d. All of the above meet the requirement.

D

The court in Public Service Commission of Maryland v. Panda-Brandywine, L.P.: a. held that there is no legal distinction between the transfer of contractual rights and duties. b. found the issue was whether an assignment or delegation could be made in this case. c. found that the provisions in the Asset Purchase and Sale Agreement did not constitute an assignment or transfer within the meaning of the parties' agreement. d. held that there was an assignment of rights and delegation of duties in contravention of the parties' agreement and the transfer was therefore invalid and unenforceable.

D

The courts in common law systems have developed a body of law that serves as precedent for determination of later controversies. This is called: a. judge-made law. b. case law. c. common law. d. All of the above.

D

The definition of a default judgment is: a. a legal pleading that contains denials, admissions, affirmative defenses, and counterclaims. b. a pleading that is a statement of the initial claim against the defendant. c. an assertion that even if the plaintiff's allegations are true, the plaintiff would not be entitled to a remedy. d. a judgment against a defendant who fails to respond to a complaint.

D

The degrees of mental fault in criminal law include which of the following? a. Subjective fault, which includes a purposeful, knowing, or reckless mental state. b. Objective fault, which would be a negligent or careless mental state. c. Liability without fault, where no requisite mental state or even knowledge of the act is required in some instances. d. All of the above. e. None of the above

D

The doctrine of promissory estoppel: a. is a doctrine enforcing noncontractual promises. b. includes as a requirement within the doctrine that there has been justifiable reliance on the promise. c. a doctrine relying on justice and not contractual rights. d. All of the above

D

The federal courts have exclusive jurisdiction over: a. federal criminal prosecutions. b. trademark and copyright cases. c. issues involving state constitutions. d. Both (a) and (b). e. Both (a) and (c).

D

The harshness of the contributory negligence doctrine has been mitigated by: a. the last clear chance rule. b. comparative negligence. c. assumption of risk. d. (a) and (b), but not (c).

D

The improper taking of another's property by one in lawful possession of it, that violates a trust, is: a. robbery. b. theft. c. larceny. d. embezzlement.

D

The international organization which seeks to stabilize currency exchange is the: a. United Nations Exchange Branch. b. International Court of Justice. c. United States Treasury. d. International Monetary Fund.

D

The parol evidence rule is: a. another term for the exclusionary rule. b. a rule of construction. c. a rule of interpretation. d. a rule of substantive law.

D

The power of the state to tax is limited by: a. the Commerce Clause. b. the Import-Export Clause. c. the Due Process Clause of the Fourteenth Amendment. d. All of the above.

D

The president has significant control over administrative agencies housed within the executive branch by virtue of the power to: a. remove commissioners for causes set forth by statute. b. appoint and remove the chief administrator of those agencies. c. impound moneys appropriated to the agency by Congress. d. All of the above.

D

The privilege against self-incrimination extends to which of the following? a. Providing a handwriting sample. b. Appearing in a line-up for identification purposes. c. Taking a blood test after an accident. d. None of the above are protected by the privilege against self-incrimination.

D

The remedies of damages and rescission are available for: a. material fraudulent misrepresentation. b. negligent misrepresentation. c. innocent misrepresentation d. All of the above.

D

The seller's warranty that he has marketable title to the land would be breached if the buyer discovers: a. a lien on the land. b. a defect in the chain of title. c. a lease of the premises. d. All of the above. e. Both (a) and (b) above are correct.

D

The sole nursing home in the county offers a long-term care agreement. The contract is prepared on a standard form and offers terms on a take-it-or-leave-it basis. Such a contract is called: a. exculpatory. b. a usurious contract. c. an illegal restraint of trade. d. an adhesion contract.

D

The sources of law in the American legal system include: a. state administrative rules. b. executive orders. c. ordinances. d. All of the above. e. (a) and (c), but not (b) or (d)

D

The tort of public disclosure of private facts requires: a. publication. b. private information about either an individual or a corporation. c. a false statement. d. that the matter made public would be offensive and objectionable to a reasonable person.

D

The usual remedy for breach of contract is: a. injunction. b. specific performance. c. punitive damages. d. money damages.

D

The various forms of MNE include: a. NASDAZ. b. NFTRA. c. EU. d. Wholly owned subsidiaries.

D

There are certain transactions that are enforceable without consideration. These include: a. promises to pay a debt barred by the statute of limitations. b. a promise to pay a debt that has been discharged in bankruptcy if certain requirements are met. c. a new promise to perform a voidable obligation that has not previously been avoided. d. All of the above.

D

Theresa has a contract to teach eighth grade at Washington Middle School. She decided she could make more money writing a book, so she wants to assign her teaching contract to her friend, Stephanie, who is also a licensed teacher. a. If effective, this would be both an assignment and a delegation. b. The duties which Theresa wants to delegate are personal in nature. c. If the school district agrees to accept Stephanie's services, a novation would occur, which would relieve Theresa of her obligation to the school district. d. All of the above are correct.

D

Which of the following, if any, are requisites for fraud in the inducement? a. False representation of a fact that is material. b. Representation is made with knowledge of its falsity and the intention to deceive. c. The representation is justifiably relied on. d. All of the above. e. (a) and (b), but not (c).

D

Tim signs a contract to sell 500 wood pallets for a specified price to Schirmer Industries to be delivered by September 1. In this case: a. Tim has a duty to deliver the goods by September 1. b. Schirmer Industries has a right to receive the goods by September 1. c. The duties and rights of Tim and Schirmer Industries are correlative. d. All of the above.

D

Title to land may be transferred by which of the following? a. Deed. b. Will or by the law of descent upon the death of the owner. c. Open, continuous, and adverse possession by a nonowner for a statutorily prescribed period of years. d. All of the above.

D

To accomplish the basic purposes of contract remedies, which of the following limitations have not been imposed upon monetary damages? a. Foreseeability. b. Certainty. c. Mitigation. d. Restitution.

D

To be effective, an offer must: a. be spoken directly to the offeree. b. always contain the price of the product or service offered. c. always contain the place of delivery. d. be communicated to the offeree.

D

To be effective, an offer must: a. be sufficiently definite and certain. b. be communicated to the offeree. c. manifest an intent to enter into a contract. d. All of the above. e. None of the above.

D

Tyler is self-employed and alters some receipts so he will show more expenses and therefore have a greater total of income tax deductions. Tyler has: a. committed the crime of extortion. b. engaged in securities fraud. c. engaged in no criminal activity. d. committed the crime of forgery.

D

Under the Restatement, if the parties to a contract attach materially different meanings to their manifestations and neither party knows or has reason to know the meaning attached by the other: a. and neither party is to blame, there is no contract at all. b. and both parties are to blame, there is no contract at all. c. and one party is to blame, that party will be held responsible, but the contract is not void. d. All of the above.

D

Under the Second Restatement, except in cases of death or incapacity, or where the performance of an authorized act becomes impossible, actual notice of termination of agency is required to the third party if she is one: a. with whom the agent has dealt on credit. b. to whom the agent has been specially accredited. c. with whom the agent has begun to deal, as the principal should know. d. All of the above.

D

Under the common law as well as most statutes, __________ is larceny with the additional elements that (1) the property is taken from the victim or in the immediate presence of the victim, and (2) it is accomplished through either force or threat of force. a. burglary b. extortion c. bribery d. robbery

D

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 in Washington can be seized to settle a judgment against a driver. d. U.S. courts may take jurisdiction in a suit against a foreign country for commercial acts by that government that have a direct effect on the United States.

D

What are the ways that cases may reach the U.S. Supreme Court? a. Appeal by right. b. Writ of certiorari. c. Writ in personam. d. (a) and (b), but not (c)

D

What is the supreme law of the land in the United States? a. Federal statutes. b. Treaties. c. Case law as developed through the U.S. Supreme Court. d. The U.S. Constitution.

D

When a contract involving the sale of real estate calls for the delivery of the deed in return for the purchase price on a certain day, this performance is known as: a. foreclosure. b. warranty deed day. c. contract day. d. the closing.

D

When a minor falsely advises the other party that he is of the age of majority and based upon that misrepresentation, the other party enters into a contract with the minor: a. the minor has lost his right to disaffirm the contract because of the misrepresentation if the adult party in good faith reasonably relied on the misrepresentation. b. the adult party can recover damages from the minor in tort. c. the minor is required to restore the other party to the position occupied before the making of the contract. d. There is no uniform rule. States differ, and depending upon the state, any of the above could be correct.

D

When contract terms prohibiting the assignment of rights exist, most courts will: a. strictly construe them. b. interpret a general term prohibiting assignments as a mere promise not to assign. c. award the obligor a right to damages for the breach of the terms forbidding the assignment. d. All of the above.

D

When does acceptance of an offer to enter into a unilateral contract generally occur? a. Upon notice of intent to accept by the offeree. b. Upon full performance by the offeror. c. Upon commencement of performance by the offeree. d. Upon full performance by the offeree.

D

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 the above.

D

Which is not a revocable offer? a. A bid to construct a bridge for the city. b. An offer to buy stock in the ABC Corporation once it is formed. c. A unilateral offer to pay John $30 to mow your lawn after he has completed half the job and indicates he wishes to finish. d. None of the above are revocable offers.

D

Which of the following are activities that give rise to strict liability? a. Performing abnormally dangerous activities. b. Selling defective, unreasonably dangerous products. c. Keeping animals. d. (a), (b), and (c) are correct.

D

Which of the following are the most usual covenants to convey title of realty? a. Covenant of title. b. Covenant against encumbrances. c. Quiet enjoyment. d. All of the above. e. Both (a) and (b), but not (c).

D

Which of the following can be raised as a defense to a claim of defamation? a. That the Internet service provider was publishing information originating from a third party. b. That there was a constitutional privilege to comment about the plaintiff who is a public figure and that the statement was made without malice. c. That there was a conditional privilege to publish a defamatory statement in order to protect a legitimate self-interest. d. All of the above.

D

Which of the following duties would not be delegable? a. John has a contractual duty to pay Isaac $50. b. Karl has a contractual duty to deliver 50 bushels of corn to Michael by October 1. c. Jeffrey has a duty to mow Georgia's lawn at least once a week. d. Arthur has a duty to teach an accounting class at a community college during the fall semester.

D

Which of the following is NOT considered to be an equitable remedy? a. Specific performance. b. Injunction. c. Reformation. d. Money damages.

D

Which of the following is NOT essential to a valid deed? a. Grantor. b. Grantee. c. Delivery. d. Recording.

D

Which of the following is correct regarding the English courts of equity? a. They were presided over by a chancellor. b. They could only award money damages. c. They would issue a decree ordering a defendant to do or to refrain from a specific act. d. Both (a) and (c) are correct.

D

Which of the following is correct with regard to consideration? a. In a unilateral contract, a promise is exchanged for an act or forbearance to act. b. In a bilateral contract, there is an exchange of promises. c. Legal sufficiency is always related to adequacy of consideration. d. Two of the above, (a) and (b) are correct.

D

Which of the following is correct with regard to the doctrine of respondeat superior? a. It is a form of liability without fault. b. It ordinarily holds an employer liable for the acts of both employees and independent contractors. c. The liability of the principal under the doctrine is vicarious and depends upon proof of wrongdoing by the employee within the scope of employment. d. Two of the above, (a) and (c), are correct.

D

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. Two of the above, (b) and (c).

D

Which of the following is included within the term "property" for purposes of procedural due process? a. Real property. b. Social security payments. c. Food stamps. d. All of the above.

D

Which of the following is not a breach of an agent's duty of obedience? a. Entering into an unauthorized contract for which his or her principal is then liable. b. Committing a tort for which the principal is now liable. c. Improperly delegating her authority. d. Not following a principal's instruction to misrepresent the quality of a competitor's goods to a potential customer.

D

Which of the following is true of restrictive covenants? a. They are widely used in subdivisions. b. Restrictive covenants are construed strictly against a party asserting their applicability. c. They may bind lot purchasers as though the restrictions had actually been asserted in their own deeds. d. All of the above. e. None of the above.

D

Which of the following is true of state action? a. It includes any actions of the federal government, but not actions of state government. b. It includes any actions of the federal or state government, but not actions of local government. c. It includes only certain actions of state governments as set forth in the Constitution. d. Protections that guard against state action may be extended by statute to apply to private activity.

D

Which of the following is true with regard to an exculpatory clause? a. An exculpatory clause excuses one party from liability for her own tortious conduct. b. Where one party has a superior bargaining position that has enabled him to impose an exculpatory clause upon the other, the courts are inclined to nullify the provision. c. An exculpatory clause may be unenforceable for unconscionability. d. All of the above are true.

D

Which of the following is/are considered in determining the application of the reasonable person standard? a. Physical disability. b. Superior skill or knowledge. c. Emergency circumstances. d. All of the above are considered.

D

Which of the following may a U.S. Court of Appeals do in ruling on a case? a. Reverse or modify the judgment of the lower court. b. Remand or send it back to the lower court. c. Rehear the case by taking testimony of the witnesses. d. Both (a) and (b). e. Both (a) and (c).

D

Which of the following promises does not have to be evidenced by a writing or electronic record in order to be enforceable? a. Jones's agreement with Smith to sell his condominium for $100,000. b. Stewart's promise to work for Austin for a two-year period. c. Dad's promise to the credit union that he will make payments on his son's truck. d. Mindy's agreement with Susan to buy her bike for $400.

D

Which of the following will terminate an agency coupled with an interest? a. The death of the principal. b. The bankruptcy of the principal. c. The incapacity of the principal. d. None of the above will terminate such an agency.

D

Which of the following would NOT require a writing under the statute of frauds? a. The buyer agrees to pay $10,000 for a piece of real estate. b. A renter agrees to rent a building for a 5-year period. c. An agreement creates an easement to run cables across adjoining land. d. A landscaper agrees to landscape the lot surrounding an office building.

D

Which of the following would be considered a material breach of a contract? a. Partial performance that omits some essential part of the contract. b. Delivery of 50 chairs in a contract that calls for 100 chairs. c. An intentional breach of the contract. d. All of the above would be material breaches. e. Only (a) and (b) above would be material breaches.

D

Which of the following would most likely be a merchant with respect to the goods in question under the UCC definition? a. Arthur is an authorized IBM computer dealer. b. Brian employs two salesmen to sell his homemade furniture. c. Clarence has a store in which he sells used lawn mowers. d. All of the above would be merchants. e. None of the above would be merchants.

D

Which of the following would not be enforceable without additional consideration? a. A promise to pay a debt barred by the statute of limitations. b. A promise to pay a debt discharged in bankruptcy where the promise meets the requirements of the Bankruptcy Code. c. A promise which falls within the doctrine of promissory estoppel. d. The settlement of an undisputed debt.

D

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, because it changes the agreement. c. No, because it explains the agreement. d. Yes, it would be admissible, because it is subsequent to the written agreement.

D

Zoning ordinance variances: a. are not available for hardships caused by the actions of the property owner seeking the variance. b. are available if it affirmatively appears that the property owner seeking the variance cannot yield a reasonable return on the owner's investment in the property. c. are available for hardships caused by the variance that are common to the zoned area. d. Both (a) and (b). e. Both (a) and (c).

D

Adverse possession, requires no: a. contract. b. deed. c. formality. d. None of the above. e. (a), (b), and (c) are correct.

E

An advantage of administrative agencies is that they: a. relieve legislatures from trying to create legislation that deals with every detail of a specific problem. b. can be specialized bodies staffed by individuals with expertise in the regulated field. c. do not have to be concerned about compliance with constitutional mandates since they perform powers of all three branches of government. d. All of the above. e. Both (a) and (b).

E

Deeds generally end with: a. the grantor's signature. b. a seal. c. an acknowledgment before a notary public to verify the authenticity of the document. d. None of the above. e. (a), (b), and (c) are correct.

E

Gaines delivers a chair for Jasper Furniture and, before he goes back to the store, he goes 15 miles out of the way to visit a friend. On the way, he negligently runs a stop sign and hits Rick. Who can be held liable for the accident, and why? a. Jasper Furniture under the doctrine of respondeat superior. b. Gaines since his negligence caused the accident. c. Gaines, but not Jasper Furniture, since Gaines had deviated from the purpose of his employment. d. Both (a) and (b). e. Both (b) and (c).

E

In a contract for the sale of lawn care services, an issue arises about whether the homeowner would receive disproportionately less in service than the lawn care company would receive in compensation. This disparity may be relevant to the: a. requirement of legally sufficient consideration. b. availability of certain defenses. c. availability of certain remedies. d. All of the above. e. Only (b) and (c).

E

Individuals may use reasonable force to protect individuals, themselves, and their property. Under the majority rule, reasonable force means: a. deadly force is reasonable to protect property. b. deadly force is never reasonable to protect property. c. deadly force is reasonable if an attack threatens the victim with serious bodily harm. d. (a) and (c). e. (b) and (c).

E

Joe intentionally pushed Bill into a fence negligently erected by Sam around Sam's swimming pool. The fence caved in and Bill nearly drowned. Who is liable? a. Sam because of his negligent conduct. b. Sam because Joe's conduct would be foreseeable. c. Joe because of his intentional intervening conduct. d. Sam and Joe because they both contributed to the harm. e. Under the Third Restatement, the determination of liability is an issue for the factfinder in a lawsuit.

E

Many states impose no limit on the rate of interest that may be charged: a. on loans to corporations. b. on consumer credit card transactions. c. on any consumer loan. d. All of the above. e. Both (a) and (b).

E

The First Amendment's guarantee of free speech applies to: a. corporate political speech. b. obscenity. c. commercial speech. d. defamation. e. (a), (c), and (d) are correct.

E

The Uniform Commercial Code does not apply to: a. employment contracts. b. service contracts. c. insurance contracts. d. contracts involving real property. e. All of the above.

E

The doctrine of res ipsa loquitur would permit the court to infer negligence in which of the following situations? a. A ladder rung broke under the weight of a worker's foot. b. A sign over a storefront fell on your head. c. A dead tree limb overhanging the sidewalk fell onto your head. d. (a) and (b). e. (b) and (c).

E

The legislature may exercise control of administrative agencies in various ways. These are: a. through its budgetary power. b. through the power to appoint and remove chief administrators. c. by amending an enabling statute to increase, modify, or decrease an agency's authority. d. All of the above. e. (a) and (c), but not (b).

E

Velma and Walter devised a scheme to defraud unsuspecting readers and then sent a message via e-mail to thousands of computer users, hoping to get rich from those who responded. This was their first such attempt. They may have violated: a. the CAN-SPAM Act. b. state computer crime laws. c. RICO. d. All of the above. e. Both (a) and (b), but not (c).

E

Which of the following is true with respect to substantial performance? a. It has particular importance in the construction industry. b. Substantial performance does not defeat the purpose of the contract. c. When one party to a contract has substantially performed, the other party cannot recover damages for the imperfect performance. d. All of the above. e. Two of the above, (a) and (b) are correct.

E