A+ Answers

Which of the following are protected classes under Title VII of the 1964 Civil Rights Act?
Race, national origin, and sex.
Race, national origin, and political affiliation.
Race, religion, and sexual orientation.
Religion, color, and prior welfare eligibility.

If a seller breaches a contract for the sale of goods and the buyer then acquires similar goods from another supplier, this is known as the right of:
Alternate acquisition.
Specific performance.
Contract cancellation.

Which of the following is a false statement?
A state court can use a Long-Arm statute to obtain in personam jurisdiction over non-residents.
A court can issue a summons ordering a defendant named in a complaint to appear in court.
Interrogatories are written statements given by witness after a trial.
Small claims courts have limited jurisdiction.

The Foreign Corrupt Practices Act prevents each of the following except:
Bribes to foreign officials.
Bribes to foreign political party officials.
Bribes to candidates for office in foreign nations.
Bribes to foreign officials if the payment is legal under the written laws of the nation in which it was made.

Which of the following is a true statement?
For an express warranty to be created the exact words “warrant” or “guarantee” must be used.
A statement that a trailer has a capacity of 2000 pounds would likely be treated as a mere opinion and thus could not become a warranty.
In order to be the basis of the bargain in a sale of goods transaction, a warranty must have been the sole reason for the purchase of the product.
The implied warranty of merchantability includes a warranty that if goods are sold in bulk or in groups they must be in the medium range of quality.

Which of the following is a correct statement?
Incorporators must sign and execute the articles of incorporation of a U.S. corporation.
Most states in the U.S. limit the duration of a corporation to fifty years plus a day, which time period can be renewed.
A tenancy at will under U.S. law is created by an express contract by which personal property is leased for a specific period of time.
A quitclaim deed warrants more than any other deed under U.S. real estate law.

Which of the following is FALSE about damages for a breach of contract?
Money damages can consist of compensatory and consequential damages.
Consequential damages must be reasonably foreseeable by the parties as likely damages stemming from a breach.
Liquidated damages must be a reasonable amount and not an excessive “penalty.”
The Mitigation of Damage rule does not apply when an employer breaches a contract with an employee since the employer is usually the dominant entity, and thus the wrongfully discharged employee does not have any obligation to look for other employment.

Which of the following is a FALSE statement?
A contract should specify where disputes are to be adjudicated and which jurisdiction’s law will be applied to any disputes.
California does not recognize the validity of covenants-not-to-compete (or non-competition clauses) in employment contracts.
When a person goes into bankruptcy, an automatic stay arises which means that contract claimants and other creditors are prohibited from instituting any legal proceeding to enforce a contract or to obtain any money owed pursuant to a contract.
“Puffing” statements, such as this is a “great car” or a “top-notch car,” are typically grounds for breach of express warranty lawsuits.

Under which of the following types of misrepresentation is the innocent party usually not able to rescind a contract?
Fraud in the inducement.
Fraud in the inception.
Silence as misrepresentation.
Misrepresentation of law.

Which of the following statements is or are true regarding sales contract terms left open under the UCC?
Leaving open price terms makes the contract unenforceable.
The price is a “reasonable” price at the time of delivery if the price term is left open.
The price may be fixed by a market, a third person, or another standard, if so provided in the contract.
B and C only.

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
fraud or deceit.
undue influence.

Which of the following is a false statement?
An option is irrevocable during the option period.
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.
The offeror is the party to decide whether to accept the offer and thus make a contract.
A contract remains executor as long as any party to the contract has not fully performed.

The requirement(s) of a valid offer in contract law is(are) the following:
The manifestation of a definite intent to enter into a contract by the offeror and the communication of this intent to the offeree
Reasonable definitiveness in the terms of the offer
Serious intent on the part of the offeror as determined by the “reasonable person” test
All of the above.

Which of the following is NOT an Equitable remedy under the common law:
Money Damages
Specific Performance

Which of the following corporate acts is most likely to be held ultra vires today?
Contribution to a private university to help fund an entrepreneurship center
Generous gratuity paid to the young widow of the corporation’s founder
Entering a joint venture with another business
Installation of antipollution equipment not yet required by law

Which express warranties are sellers of goods required to make by the UCC?
Warranties regarding the quality of goods.
Warranties regarding the length of time that the product can be returned.
Warranties regarding the length of time that the seller will repair the product.
None of the above.

Which of the following is FALSE about contracts pursuant to the Uniform Commercial Code?
A UCC contract must have a clear and precise price term initially in the contract for it to be valid.
A merchant’s firm offer can be valid and enforceable even without the payment of consideration.
Additional terms in an acceptance will as a general rule not render the acceptance invalid.
The UCC requires as a general rule a writing for contracts for the sale of goods $500 or more in price.

The board of directors of Omega, Inc., announces a cash dividend. A cash dividend may not be paid from
accumulated surplus.
gross profits.
net profits.
retained earnings.

An example of lack of a contractual capacity issue arises when a contract is made by a
A minor
A drunk
A person on drugs
All of the above

B bets C on the outcome of the SuperBowl. Gambling on sports events is illegal in their state. This wagering agreement is
not enforceable unless there is an admission as to its existence
voidable by the losing party
valid if the bet was a fair one with proper “odds”

Which of the following is true about the difference between express and implied warranties?
Express warranties apply to merchants and implied warranties apply to all sellers of goods.
Express warranties apply to merchants and implied warranties apply to nonmerchants.
Express warranties arise from conduct of the parties and implied warranties arise automatically by operation of law.
Implied warranties cannot be disclaimed, but express warranties can be disclaimed.

Pat and Don submit their dispute to binding arbitration. A court can set aside the arbitrator’s award if
Don is not satisfied with the award.
Pat is not satisfied with the award.
the award involves at least $75,000.
the award violates public policy or if bad faith was involved.

The “mailbox rule” says that:
Offers and acceptances must be communicated through the mail in order to be effective.
Offers and acceptances are effective when placed in the mail.
A properly dispatched acceptance is effective when sent even if the offeror never receives it.
A revocation is effective when sent.

Which of the following best describes the overall scheme of pollution regulation in the United States?
Exclusively federal law.
Exclusively state law with minimal federal oversight.
Exclusively state law, but with considerable federal oversight.
Primarily federal law, but considerable state law as well.

An output contract is typically
None of the above

A promoter’s preincorporation contract:
binds only the promoter unless adopted by the corporation.
binds both the promoter and the corporation.
binds only the corporation.
binds neither the promoter nor the corporation if rejected by the corporation.

In order to satisfy the Statute of Frauds sufficiency of writing requirement, generally a writing must:
Be a formal, written, sealed document.
Be any written memorandum containing the essential terms of the parties’ agreement.
Be signed by the party against whom enforcement is sought.
B and C.

The intentional tort of false imprisonment is best defined as:
Being held in jail waiting for an arraignment.
The intentional confinement or restraint of another without authority or justification and without that person’s consent.
The holding in prison of a person convicted of a crime who is appealing the conviction.
A confinement that is caused by accidentally confining another person without that person’s consent.

Which of the following are encompassed by the traditional common law tort of intentional invasion of privacy?
An appropriation of a person’s name or picture without his or her permission for commercial advantage.
An intrusion by the defendant into the private life or private domain of the plaintiff.
Public disclosure of private facts, that is, facts not in the public record, about a person, even if the facts are true.
All of the above.

Which of the following is a false statement?
A merchant can disclaim the implied warranty of merchantability.
If the seller is not a merchant, and the goods are not to be moved, then the risk of loss passes to the buyer on tender of delivery of the goods plus notification.
If the seller is not a merchant, and the seller holds the goods, and the buyer is to pick them up, then the risk of loss passes to the buyer when the buyer acquires good title to the goods.
If a seller is a merchant, and the goods are not to be moved, the risk of loss passes to a buyer when the buyer takes physical possession of the goods.

Standard Company and Tom wish to enter into an agency relationship for the purpose of buying computers for Standard’s offices. The relationship requires as a general rule:
a written agreement and consideration
a written agreement only
consideration only
neither a written agreement nor consideration

Common law consists of:
Laws which all nations have in common.
Laws which affect everyone, including ordinary persons.
Rulings and opinions which have been issued by judges when deciding previous cases.
Laws which more people are aware of.

Which corporate law doctrines are designed to give the shareholders some indirect control of the corporation?
Voting for the board of directors
Cumulative voting
Voting trusts and pooling agreements
All of the above.

Which of the following statements regarding product liability is not
One major problem with using negligence for product liability is that the plaintiff must show some specific act of negligence.
Failure to warn about a generally or commonly known danger usually will lead to liability.
Strict liability is a “no fault” system.
To be held liable in strict liability, the product must be in essentially the same condition as when it left the defendant’s control.

“Stare decisis” is the doctrine of:
Separation of powers so that decisions are not made by a single branch of government.
Following precedent so that legal principles in earlier similar cases are followed in later cases.
Constitutional principles applied when making any decision.
Spending long periods of time looking at facts before making a decision.

The statute enacted to combat organized crime and which imposes liability on wrongdoers is:
The Racketeer Influenced and Corrupt Organizations Act.
The Organized Crime and Innocent Victims Act.
The Crime Victims Compensation Act.
The Habitual Criminal Damages Recovery Act.

In a given case, most courts today may grant
equitable remedies only.
legal remedies only.
equitable or legal remedies, but not both.
equitable remedies, legal remedies, or both.

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.

Which of the following is a true statement?
A contract that benefits one party to the contract over the other is automatic grounds for undue influence.
A contact that was entered into by one party unduly influencing the other is a voidable contract.
The primary purpose of the Statute of Frauds in contract law is to punish bad people who perpetuate frauds using contracts.
A fully performed oral contract which should have been in writing is null and void due to the Statute of Frauds due to the lack of the writing.

Which of the following is a false statement?
“Scienter” or the presence of bad intent or evil motive is a general requirement for liability under the Securities Act of 1934.
A person who knowingly receives inside information as a result of an corporate insider’s breach of a fiduciary duty or duty of loyalty or confidentiality can be liable under Rule 10b-5 if the recipient trades on such information.
A key feature to liability under U.S. SEC Rule 10b-5 is whether the undisclosed inside information is “material.”
Private offerings of securities that are not generally solicited or advertised are nonetheless still usually subject to the registration requirements of the U.S. Securities Act of 1933.




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