Death of an agent or the principal terminates an agency only after notification of death is received by the living party

QUESTION 1Which of the following is a true statement?A. Death of an agent or the principal terminates an agency only after notification ofdeath is received by the living party.B. An agency coupled with an interest usually terminates on the death of theprincipal.C. An agency coupled with an interest is usually revocable by the principal.D. Revocation of authority is done by the principal whereas renunciation of theauthority is done by the agent.0.5 pointsQUESTION 2An assignment of personal services isIllegalGenerally permittedPermitted with all the parties’ consentIs never permitted0.5 pointsQUESTION 3Which is a FALSE statement about U.S. civil rights laws?a. The Age Discrimination in Employment Act protects against age discrimination inthe workplace.b Language discrimination in the form of "English-only" policies can be a form of. national origin discrimination.c. Even an employee at-will can sue for wrongful discharge if she was terminatedbecause of her gender.d An employer is allowed to have an Affirmative Action plan that has rigid and fixed. quotas for hiring based solely on race due to the history of discrimination in theUnited States.0.5 pointsQUESTION 4Which of the following would constitute a valid acceptance?The buyer tells the seller that the nonconforming goods which were shipped will bekept and paid for.The buyer waits for three months before notifying the seller that the goods arenonconforming.The buyer immediately resells the nonconforming goods.A, B and C.0.5 pointsQUESTION 5What is the significance of the term "preferred" in reference to preferred stock?It is viewed to generally be a better investment than common stock.Preferred stockholders usually have better voting rights than common stockholders.Preferred stockholders receive preference over creditors of the corporation in theevent of liquidation.Preferred stockholders receive certain preferences over common stockholders withrespect to dividends or with respect to assets in the event of liquidation.0.5 pointsQUESTION 6A partnership typically is created:If the managing partner files appropriate papers with the secretary of state.If one or more persons or entities engage in an ongoing business activity for profit.Upon the issuance of stock to the partners.Once there is a valid written partnership agreement.0.5 pointsQUESTION 7The EPA standards for toxic air pollutants:Require that all such pollutants which have any risks to humans be eliminated.Require that companies use the best available technology to minimize thesepollutants, regardless of cost.Allow for safe levels of these pollutants to exist.A and B only.0.5 pointsQUESTION 8In a short form merger, which approvals are needed?Votes by both boards of directors, but shareholders need not approve.Vote by the board of directors of the surviving corporation, and for the corporationwhich does not survive, recommendation by the board of directors and vote by theshareholders.Vote by the board of directors of the surviving corporation.For both corporations, a vote by the shareholders, but no action by the board ofdirectors.0.5 pointsQUESTION 9The best statement of the test applied in determining if a defendant was the proximate cause ofthe plaintiff’s injuries is:Was it foreseeable to the plaintiff that the defendant would engage in this particularconduct?Given this particular injury to the plaintiff, was it foreseeable that the defendant wasthe cause?Was it reasonably foreseeable to the defendant that the defendant’s conduct couldlead to this kind of injury?Was the injury foreseeable to the plaintiff prior to the injury’s occurrence?0.5 pointsQUESTION 10What is a FALSE statement regarding monopolization analysis pursuant to Section 2 of theSherman Act?a. One generally cannot be guilty of or liable for monopolization without having amonopoly first.b One can have a monopoly but not have monopoly power and thus not be a. monopolizing company.c. All monopolies are illegal since they are inherently unfair to consumers.d Wrongful conduct by a monopoly to establish the legal wrong of monopolization. includes illegal AND unethical, predatory, or abusive conduct (which is notnecessarily illegal).0.5 pointsQ U E S T I O N 11What is a FALSE statement regarding monopolization analysis pursuant to Section 2 of theSherman Act?a. One generally cannot be guilty of or liable for monopolization without having amonopoly first.b One can have a monopoly but not have monopoly power and thus not be a. monopolizing company.c. All monopolies are illegal since they are inherently unfair to consumers.d Wrongful conduct by a monopoly to establish the legal wrong of monopolization. includes illegal AND unethical, predatory, or abusive conduct (which is notnecessarily illegal).0.5 pointsQUESTION 12Which of the following is a FALSE statement?A. A contract should specify where disputes are to be adjudicated and whichjurisdiction’s law will be applied to any disputes.B. California does not recognize the validity of covenants-not-to-compete (or noncompetition clauses) in employment contracts.C. When a person goes into bankruptcy, an automatic stay arises which means thatcontract claimants and other creditors are prohibited from instituting any legalproceeding to enforce a contract or to obtain any money owed pursuant to acontract.D. "Puffing" statements, such as this is a "great car" or a "top-notch car," aretypically grounds for breach of express warranty lawsuits.0.5 pointsQUESTION 13Which of the following would not be a misappropriation of a trade secret?Paying an engineer who is working at a competitor to disclose the trade secret toyou.Buying the competitor’s product, then tearing it apart and analyzing it in yourlaboratory to reveal how the product works.Hiring a spy to break into a competitor’s offices to acquire the secret.Asking one of your current engineers to disclose a trade secret of her formeremployer and she does so.0.5 pointsQUESTION 14Which of the following is false under the Uniform Partnership Act?Each partner is personally liable for all of the debts of the partnership.Any one partner may be held liable for the partnership’s entire indebtedness.Title to land may be taken in the firm name.The partnership must always have a written partnership agreement prepared by anattorney0.5 pointsQUESTION 15A supervening illegality (that is, legality after the contract was entered into) is best described asVoiding the contractResulting in a discharge of contract dutiesHaving no effect on the contractMaking the contract voidable0.5 pointsQUESTION 16Which of the following is a false statement?A. The law in the United States has been mainly influenced by the FrenchNapoleonic Code.B. One major purpose of the law is to protect persons and their property fromunwanted interference from others.C. Those precepts that must be obeyed and followed by citizens subject to sanctionsor legal consequences can be thought of as law.D. Law serves both to maintain the status quo and to facilitate orderly change.0.5 pointsQUESTION 17The Statute of Frauds does not coverContracts in consideration of marriageContracts for the sale of realtyGuarantees or guaranty contractsContracts that can be performed within one year0.5 pointsQUESTION 18"Fundamental corporate change" consists of:a. Amending the articles of incorporationb Merging with another corporation.c. Dissolution and termination of the corporationd. All of the above.0.5 pointsQUESTION 19Which of the following statements is not true regarding the assignment of a partner’s interest inthe partnership?The partnership interest is personal property.The partnership interest may be assigned without the permission of the otherpartners.The assignment makes the person receiving it (the assignee) a new partner.The assignment allows the person receiving it (the assignee) to receive thepartnership profits of the assignor.0.5 pointsQUESTION 20Being technically able to perform a contract but with that performance now having no value orworth is bestdescribed asDischarge by impossibility of performanceDischarge by illnessDischarge by frustration of purposeDischarge by agreement0.5 pointsQUESTION 21Which of the following statements is a false one?Violators of emission standards in the U.S. can be subject to civil penalties pursuantto the Clean Air Act.Under no circumstances in the U.S. can waste be discharged into navigable riverssince that is pollution.Companies in the United States can legally buy and sell rights to pollute in the formof so-called emission credits or pollution permits.The common law doctrine of nuisance can be used to obtain an injunction to stoppollution.0.5 pointsQUESTION 22Which of the following in not true?A minor can still disaffirm a contract for a reasonable time after reaching majority.An adult cannot disaffirm a contract made with a minor.A minor must pay the agreed price on contract for necessaries.What constitutes a necessary varies over time and can differ from state to state.0.5 pointsQUESTION 23Which of the following is a true statement?A. The doctrine of strict liability has completely eliminated the doctrine ofnegligence as a possible legal theory for an injured person to recover for harmscaused by a product.B. In order to recover for the tort of intentional misrepresentation (or fraud) thevictimized plaintiff must have reasonably relied on the misrepresentation.C. The doctrine of strict tort liability applies to the sale and lease of products andservices.D. Strict liability can be effectively disclaimed or excluded from the transaction by aconspicuous and clear disclaimer.0.5 pointsQUESTION 24Which of the following generally does not need to be included with the articles of incorporation?The period duration of the corporation.The classes and preferences of stock.Whether preemption rights are given to the stockholders.A copy of the bylaws.0.5 pointsQUESTION 25How can "intellectual property" be legally protected in the United States?a. By patent lawb By copyright law.c. By trade secret lawd. All of the above.0.5 pointsQUESTION 26Which of the following is a true statement?A. As a general rule, a unilateral mistake does not allow either party to a contract torescind or cancel it.B. Where two parties contract for the sale of an old violin and the seller does notrealize that it is a rare and extremely valuable one, then the seller, the mistakenparty, can cancel the contract since it would then be unfair to him or her.C. In a fraud case the victimized plaintiff need just prove that he or she relied on thefalse statement.D. Fraud typically renders a contract null and void.0.5 pointsQUESTION 27Which of the following is NOT one of the aspects of the implied warranty of merchantability?A. The goods are suitable for the ordinary purposes for which they are used.B. The goods are adequately contained, packaged, and labeled.C. The goods are priced justly and fairly.D. The goods within each unit or part are of an even quality.0.5 pointsQUESTION 28The person who can accept an offer is known asThe acceptorThe offerorThe assigneeThe offeree0.5 pointsQUESTION 29If the time, place and manner of delivery of goods is not mentioned in a contract:The place of delivery is the buyer’s place of business.The contract is void for lack of definiteness.The place of delivery is the seller’s place of business.The seller is obligated to pay for shipping to the buyer’s place of business.0.5 pointsQUESTION 30Which of the following is FALSE about the tort of trespass?a. A person cannot be liable for trespass by intentionally throwing objects onanother’s land or causing third parties to come on the land since that person did notphysically come on the land.b A trespass can occur against personal property, called "chattels" under the common. law.c. The intent required for a trespass is only the intent to do the act that constitutes thetrespass.d Regarding a trespass to land, actual injury to the land is not required; nominal. damages can be given for the mere act of the trespass itself.0.5 pointsQUESTION 31The Americans with Disabilities Act (ADA) requires that:a. Employers make an all-out effort to accommodate disabled employees regardlessof cost or expense.b Employers make a "reasonable" accommodation to disabled employees..c. Only large employers with over 1500 employees must make a reasonableaccommodation to disabled employees due to the burdens involved.d None of the above..0.5 pointsQUESTION 32Regarding differences under the UCC in the treatment of merchants and nonmerchants, which istrue?The UCC applies to merchants, but not to nonmerchants.The UCC requires merchants’ contracts to be in writing, but not those ofnonmerchants.The requirements for a merchant to form a contract are less stringent than those fornonmerchants, and merchants receive fewer protections than nonmerchants.The consideration requirement has been eliminated for contracts between merchants,but is still present in contracts involving at least one nonmerchant.0.5 pointsQUESTION 33Which 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.0.5 pointsQUESTION 34An agent negotiates a contract with a third party for which the agent did not have actual expressauthority. Which of the following is true?The principal can never be held liable on the contract because the agent exceeded hisauthority.The principal can be liable on the contract only if the agent had implied authority toenter into the contract.The principal can be liable on the contract only if apparent authority was present.Either implied or apparent authority might cause the principal to be liable on thecontract.0.5 pointsQUESTION 35In order to have an investment contract which is regulated by the SEC, which of the following isrequired?An investment of money.A common enterprise.The expectation that profit from the enterprise will result from the efforts of others.A, B and C.0.5 pointsQUESTION 36Ann owns Beta Enterprises, a sole proprietorship. Ann’s liability for the obligations of thebusiness islimited by state statute.limited to the amount of her original investment.limited to the total amount of capital Ann invests in the business.unlimited.0.5 pointsQUESTION 37In order to be enforceable, a covenant-not-to-compete must be reasonable in each of thefollowing aspects except:Length of time the restriction is in effect.Scope (i.e. interests protected) by the restriction.Amount paid to the one who gives up the right to compete.Geographic area of the restriction.0.5 pointsQUESTION 38When a promoter enters into a contract on behalf of corporation which is not yet formed, thecorporation will become liable on the contract:At the time the promoter enters into the contract.When the corporation comes into existence.Once the corporation has elected its initial board of directors.Only if the corporation, once formed, agrees to be liable on the contract.0.5 pointsQUESTION 39The International Trade Administration (ITA) of the U.S. Department of Commerce regulatesimport competition by:a. Promotion of trade and investmentb Strengthening industry competitiveness.c. Ensuring fair traded. All of the above.0.5 pointsQUESTION 40Which of the following is FALSE about damages for a breach of contract?a. Money damages can consist of compensatory and consequential damages.b Consequential damages must be reasonably foreseeable by the parties as likely. damages stemming from a breach.c. Liquidated damages must be a reasonable amount and not an excessive "penalty."d 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, andthus the wrongfully discharged employee does not have any obligation to look forother employment.Take Test: 5015 Cumulative Exam Part 2 of 7 – Apply LawQUESTION 11. Assume that there is a provision in the Colorado state constitution that conflicts with afederal statute passed by the U.S. Congress and enacted into law. Which is TRUE?a. The Colorado constitutional provision will prevail since states existed before thenational government; and thus the federal law is invalid.b The federal statute will control due to the Supremacy Clause in the U.S.. Constitution and thus will make the state constitutional law provision invalid.c. In Colorado, the state constitutional provision will prevail; but the federal statutewill apply in the other 49 states.d Whichever was passed first will control over the other in Colorado..0.5 pointsQUESTION 21. Memorial Hospital hires Large Construction Company to renovate its emergency room.Construction Company submits plans that the Hospital approves. Construction Companycompletes the major renovation, paints the interior, and supplies the necessary fixtures,equipment, and furnishings. The Hospital, however, rejects some of the furnishingsbecause, due to the lack of oversight of a Construction supervisor, they do not exactlymatch the plans. The Hospital subsequently refuses to allow Construction Company tofinish the work or to collect any payment. Whereupon, Large Construction Company suesfor breach of contract. The most accurate statement regarding the resolution of thislawsuit is?A. Hospital wins since Construction’s performance was not perfect according to thePerfect Tender ruleB. Hospital wins Construction’s supervisor was negligent.C. Construction wins since Hospital acted in a deceitful manner.D. Construction wins and recovers the contract price minus the amount necessary tocorrect the defects and finish the work pursuant to the Substantial Performancedoctrine.0.5 pointsQUESTION 31. Samir, a legal resident of the U.S., applies for a job position with an employer as a wordprocessor. The position requires that a person type into Word documents various oldbooks, many of which have "fine" print, so that they can be converted into electroniceditions. Which of the following is NOT a violation of U.S. civil rights laws?a. Samir does not get the job because he is dark-skinned.b Samir does not get the job because he is from Pakistan..c. Samir does not get the job because his eyesight is very, very poor and notsufficiently correctable.d Samir does not get the job because he is a Muslim..0.5 pointsQUESTION 41. Bob and Carol work for Delta Company. Bob is Carol’s super¬visor. During work, Bobtouches Carol in ways that she perceives as sexually offensive. Carol resists the advances.Bob cuts her pay. Delta isliable, because Bob’s conduct constituted sexual harassment.liable, because Carol resisted Bob’s advances.not liable, because Bob’s conduct was not job-related.not liable, because Carol resisted Bob’s advances.0.5 pointsQUESTION 51. Jill insures her small warehouse under a policy with Kappa Insurance Company. Jillassigns the policy to Lyle, who also owns a warehouse, a larger one. Kappa’s bestargument against the assignment of the policy is thatKappa did not consent to the assignment.Kappa was not paid for the assignment.the assignment will materially alter Kappa’s risk.this is a personal service contract.0.5 pointsQUESTION 61. Assume that Blockbuster Video announced that it wants to "buy out" and merge with"Hollywood Video," one of its primary competitors. Such a proposal would be:a. A horizontal merger subject to the merger test in the Clayton Act.b A vertical merger which requires the "market foreclosure" legal test to be applied..c. An unfair restraint of trade which requires the Rule of Reason to be applied.d. None of the above.0.5 pointsQUESTION 71. Owen and Pat are partners in Quality Investments, a partnership. Owen convinces Roy, acustomer to invest in a nonexistent gold mine. Owen absconds with Roy’s money. If Roysues Pat, Roy will:lose, because partners are not jointly and severally liable.lose, because only partnership assets are available to pay the judgmentwin, because partners are jointly and severally liablewin, because partnership assets are available to pay the judgment0.5 pointsQUESTION 81. Mickey, Frankie, and Phillip own real property together as tenants in common. Acharacteristic of such ownership is:Right of survivorship since the property is owned jointly.A presumption of a partnership since the property is owned jointly.The transfer of an interest in the property without the consent of the other ownersand without destroying the tenancy in common.None of the above.0.5 pointsQUESTION 91. Perfume Company executives insist that their sales personnel be "thin, cute, and sexy."They thus discriminate against people who are not thin, cute, and sexy based on thisappearance standard. This employment standard pursuant to civil rights laws is:Illegal since it is illegal discrimination based on appearance.Legal as long as the standard is applied equally to men and women on the salesforce.Illegal if the appearance discrimination is used as a subterfuge for race or colordiscrimination.B and C.0.5 pointsQ U E S T I O N 101. Driving a car negligently, Adam crashes into a phone pole. The pole falls, smashingthrough the roof of a house, killing Beth. But for Adam’s negligence, Beth would nothave died. Regarding the death, the crash is thecause in fact.intervening cause.unforeseeable cause.superseding cause.0.5 pointsQ U E S T I O N 111. Donnie makes an offer to Marie to sell his used racing bicycle for $200. Marie respondsby saying "I accept at $150." Donnie refuses and says the price is firm. Marie then says"OK, I accept at the original price." However, Donnie sells the bike to a third party;whereupon Marie sues Donnie for breach of contract. Who is likely to prevail?a. Marie since she accepted Donnie’s offer at $200.b Marie since her initial response was merely an "invitation to offer.".c. Donnie since his original offer was terminated by Marie’s counteroffer.d Donnie since the court would void the entire contract since $200 for even a used. racing bike does not seem like a fair price.0.5 pointsQUESTION 121. The directors of Global Investment Company made a "bad" business decision in 2006, byrelying on the advice of financial experts and lawyers and accountants, who all thoughtthe real estate market would continue to rise for years and years; and thus the directorsinvested heavily in mortgage backed securities instead of conservative gold and goldstocks and Treasury bonds. Of course, when the recession came, Global InvestmentCompany lost a great deal of money for its shareholder investors. The shareholders thensued the directors for negligence. The directors are best protected legally by:The comparative negligence doctrine because the shareholders likely weresophisticated investors who should have known that "what goes up, must comedown."The assumption of the risk doctrine since everyone knows that the stock market is arisky venture.The Business Judgment Rule even though the decision turned out to be a "bad"business one.The doctrine of strict liability for ultra-hazardous activities since it was commonknowledge at the time that people were being granted mortgages with no downpayment and no verifiable evidence of income, assets, or employment.0.5 pointsQUESTION 131. Mohammed is a cashier at the check-out line at a big-box retail store. He is a Moslem andvery religious. He is a very good employee, but he refuses to check out people who haveliquor in their basket or pork products, such as frozen pepperoni pizza. He also refuses totouch them. These products violate his religious beliefs. He thus has to ask a supervisoror another cashier employee to come on over and "ring up" and bag those items. Once heeven asked a customer to ring up her own products. This situation is beginning toinconvenience the employer and its customers. The employer consequently tellsMohammed that he must transfer to a junior book-keeping position, though withcomparable salary and benefits, or else be discharged. Mohammed refuses, is discharged,and sues for religious discrimination. The likely result of such a lawsuit will be:Mohammed will…