Question 1
The requirement(s) of a valid offer in contract law is(are) the following:
a. The manifestation of a definite intent to enter into a contract by the offeror and the communication of this intent to the offeree
b. Reasonable definitiveness in the terms of the offer
c. Serious intent on the part of the offeror as determined by the “reasonable person” test
d. All of the above.
Question 2
Under a typical state corporation merger statute:
mergers ordinarily require the approval of two-thirds of the shareholders of both corporations.
so-called “short mergers” of a 90% owned subsidiary into the parent corporation are permitted without shareholder approval or dissenters’ right of appraisal.
the shareholders of the disappearing corporation are not entitled to vote if the shares to be issued to them constitute less than 20% of the outstanding shares of the surviving corporation.
Dissenting shareholders are entitled to appraisal rights.
Question 3
The Statute of Frauds requires that certain types of contracts:
Be in writing in order to be valid.
Be in writing in order to be enforceable.
Contain a promise for an act.
Have two or more attorneys present at the signing of a written contract.
Question 4
Which of the following statements is a false one?
Violators of emission standards in the U.S. can be subject to civil penalties pursuant to the Clean Air Act.
Under no circumstances in the U.S. can waste be discharged into navigable rivers since that is pollution.
Companies in the United States can legally buy and sell rights to pollute in the form of so-called emission credits or pollution permits.
The common law doctrine of nuisance can be used to obtain an injunction to stop pollution.
Question 5
Which of the following is/are TRUE about the Foreign Corrupt Practices Act?
a. As a general rule, bribing a foreign government official to wrongfully obtain a contract is a legal wrong.
b. Facilitating and expediting payments of small sums of money to lower level government officials to speed up routine government “paperwork” may be legal.
c. Legitimate and reasonable expenditures and payments of money, for example, for travel, lodging, and meals, for and to government officials, which are related to the demonstration and explanation of a company’s products and services, may be legal.
d. All of the above are true.
Question 6
The collective name for nonjudicial resolution of disputes is:
Litigation.
Discovery.
Alternative dispute resolution.
The people’s court.
Question 7
Which of the following is not true?
The plaintiff s required level of proof to win a civil trial is greater than in a criminal trial.
The victim of a crime may be able to bring a civil lawsuit against the alleged criminal.
After a criminal defendant has been found not guilty, the victim may still bring a civil suit for damages against the same defendant if the victim has not already done so.
Procedural protections for defendants are greater in criminal cases than in civil cases.Question 8
Which of the following is a true statement?
A. The Uniform Commercial Code is an example of federal Congressional law in the United States.
B. The Uniform Commercial Code’s implied warranty of fitness for a particular purpose applies only to merchants.
C. To disclaim the implied warranty of merchantability the exact word “merchantability” must be used.
D. A Uniform Commercial Code contract must have a definite price term or it will be struck down for vagueness.
Question 9
Which of the following is a true statement?
A. The “police power” of a state does not give the state any general authority to regulate business.
B. Garbage that is transported across state lines can be considered to be interstate commerce regardless of economic value.
C. The Commerce Clause of the Constitution gives Congress the power to regulate commerce with foreign nations and Indian tribes only.
D. Congress can only regulate activities that are actually interstate commerce but not activities that affect interstate commerce.
Question 10
Which of the following is a correct statement?
Statements of fact regarding a product that are made during the bargaining process can never be express warranties since facts can be “checked out.”
A seller must use the specific words “warrant” or “warranty” or “guaranty” in order to create an express warranty under the UCC.
An implied warranty of merchantability arises in every sale of goods by a merchant who deals in the kind of goods sold unless otherwise disclaimed.
A seller must provide a written warranty for every sale of consumer goods based on federal consumer law.
Question 11
The consideration element of a contract under the common law can as a general rule be satisfied by:
a. The promisee doing an act or refraining from doing an act in consideration of the promisor’s promise
b. The promisee making a return promise to do something or to refrain from doing something in consideration of the promisor’s promise.
c. Both a. and b.
d. Neither a. nor b.
Question 12
Persons who engage in abnormally or ultrahazardous dangerous activities:
Are liable only if all the elements of negligence are proven against them.
Are liable only if they intended to cause a particular injury.
Are generally not liable for the injuries they cause because otherwise no one would undertake these activities.
Are liable to persons they injure even if they are not at fault.
Question 13
The United States Constitution established the following branches of the national (federal) government?
a. Legislative, Executive, Judicial, and Administrative Bureaus and Agencies
b. Legislative, Executive, Judicial, Administrative Agencies, and the Media
c. Legislative, Executive, Judicial
d. Legislative, Executive, Judicial, and the Church.
Question 14
In order to obtain a patent for an invention, the invention must be all of the following except:
Novel.
Marketable.
Nonobvious.
Useful.
Question 15
A person may be discharged from his or her contractual obligations under the common law by
Substantial performance
Complete performance
Impossibility of performance
All of the above
Question 16
Which of the following statements is not true regarding the buyer’s right to cover?
The buyer must cover.
The measure of damages in a cover is cover price less contract price.
Cover must be done in a commercially reasonable manner and without undue delay.
Consequential damages can be recovered in addition to the cover damages.
Question 17
Which of the following is a true statement?
The Bill of Rights in the U.S. Constitution confers absolute rights on citizens of the U.S, not subject to interpretation by the U.S. Supreme Court, and not capable of being infringed on by government.
Political speech that would otherwise be protected by the U.S. Constitution’s First Amendment loses that protection if its source is a corporation.
The Federal Trade Commission is an example of an independent federal level regulatory agency in the United States.
Administrative rules and regulations are not binding like the laws of the U.S. Congress since the heads of administrative agencies are not elected.
Question 18
In offering to sell amplifiers to X for her theater, Y intentionally misrepresents their capacity. In reliance, X buys the amplifiers. Y’s statement is likely
duress.
fraud or deceit.
puffery.
undue influence.
Question 19
A minor good faith deviation or omission in an otherwise complete performance of a contractual obligation in a construction contract is known as:
Substantial performance.
Nonmaterial performance.
Nonessential performance.
Material performance.
Question 20
Where the other party has substantially performed, the nonbreaching party:
Can obtain specific performance to have the work finished.
Is discharged from its own obligations.
Cannot have the work finished by others.
Remains obligated for the contract price, less the amount to complete or correct the other party’s performance.
Is not entitled to a remedy because any breach is immaterial.
Question 21
The typical advantages of the entrepreneur in using a large law firm are all of the following except:
A. More legal experts in specialized areas, such as securities laws.
B. The ability to accommodate an extended payment schedule.
C. More bureaucracy with lawyers, legal assistants, law clerks, and administrative personnel to deal with.
D. Easier to find, and to find information about, the large law firm.
Question 22
Lee and Mary want Nick to replace Lee as a party to their contract. They can best accomplish this by agreeing to
an accord and satisfaction.
an assignment.
a novation.
a nullification.
Question 23
“Necessaries” for minor contracts do not usually include
Transportation
Education
Insurance
Medical Care
Question 24
The first step in a lawsuit is when the plaintiff files a:
Notice of lawsuit.
Intent to sue.
Complaint.
Summons.
Question 25
Which of the following are required elements to the common law tort of negligence?
a. Duty and breach of duty
b. Factual and proximate (also called legal) causation
c. Damages
d. All of the above.
Question 26
A decree of rescission is
an action to cancel a contract and return the parties to the positions they held before the contract’s for¬mation.
an award of damages.
an order to do or refrain from doing a particular act.
an order to perform what was promised.
Question 27
The purpose of a proxy is to:
Allow a shareholder to transfer shares to another.
Allow a shareholder to place shares in trust.
Allow a shareholder to assign her right to vote to another.
Allow a shareholder to assign her dividends to another.
Question 28
Which of the following is true about sexual harassment in the workplace?
If a supervisor approaches someone and asks that person out for a social date, if the supervisor acts in socially customary manner, it generally will be sexual harassment.
The standards for a hostile or offensive work environment are very vague and depend on all the facts and circumstances.
Sexual harassment claims require that persons of both sexes be involved.
Sexual harassment is covered under OSHA as part of workplace safety.
Question 29
Which of the following is correct about Venue?
It is an alternative to meeting jurisdiction requirements.
Its requirements must be met in addition to meeting jurisdiction requirements.
In most cases, venue selection is up to the defendant.
It allows a party to select the court most likely to decide a case in its favor.
Question 30
Which type of mistake usually will make a contract voidable at the option of the mistaken party?
a. A bilateral or mutual mistake
b. A unilateral mistake
c. A unilateral palpable mistake
d. Both a. and c.
Question 31
Which of the following is a false statement?
A. An option is irrevocable during the option period.
B. An offer made in jest or as a joke where a reasonable person would conclude that it was made in jest or as a joke cannot result in a contract.
C. The offeror is the party to decide whether to accept the offer and thus make a contract.
D. A contract remains executor as long as any party to the contract has not fully performed.
Question 32
Which of the following types of third party beneficiaries acquire rights under the original contract?
Incidental, donee, creditor.
Creditor only.
Donee only.
Creditor, donee.
Question 33
Which is NOT a characteristic of the traditional business corporation?
a. Centralized management by means of a board of directors and corporate officers
b. Creation by the filing of an articles of incorporation and approval of a corporate charter by the appropriate state agency
c. Personal liability of the shareholders for corporate debts and obligations
d. Access to capital markets by the issuance of shares of stock and their sale to the investing public.
Question 34
Which of the following contracts must be in writing to satisfy the Statute of Frauds?
a. An employment contract for a five year term.
b. A contract to sell two acres of undeveloped rural land.
c. A contract for the purchase of a large flat-screen TV for a price of $2500.
d. All of the above.
Question 35
Which statement is FALSE about the Federal Trade Commission’s (FTC) regulation of advertising in the United States?
a. The FTC can sanction a company’s advertising if it is either false, that is, a lie, or deceptive, that is, misleading.
b. The FTC’s legal standard for false and deceptive advertising is the same as common law tort of fraud since “a lie is a lie.”
c. An omission of something important in a product advertisement, especially if what is missing relates to health and safety, can render the advertisement deceptive according to the FTC.
d. “Bait and switch” advertising and marketing practices have been deemed deceptive and thus illegal by the FTC.
Question 36
Generally speaking, the contract of a minor:
Must be in writing.
Is not enforceable by the minor.
Is void.
Is voidable at the minor’s option.
Question 37
Which express warranties are sellers of goods required to make by the UCC?
A. Warranties regarding the quality of goods.
B. Warranties regarding the length of time that the product can be returned.
C. Warranties regarding the length of time that the seller will repair the product.
D. None of the above.
Question 38
France has a civil law legal system. Civil law systems are principally based on
administrative rules and regulations.
case law.
detailed codified law.
executive pronouncements.
Question 39
Which of the following is a true statement?
A. Contractual capacity is not needed for the principal in a principal-agent relationship.
B. One characteristic of independent contractors is that they can never also be agents and thus enter into contracts on behalf of a principal.
C. Even when an employee is an employee at-will, statements made in the employer’s policy and procedure manual may give employees implied-in-fact contracts right that limit the circumstances under which the employer can discharge the employee.
D. A power of attorney requires that the agent with the power be an attorney licensed by at least one state bar association as well as the federal bar association.
Question 40
A party loses a lawsuit and files an appeal. The appellate court is most likely to review the trial court’s
application of the law.
consideration of the creditability of the evidence.
findings of fact.
interpretation of the conduct of the witnesses.
