Business Law Practice Exam (Intermediate Level) Part- II

61 Questions | Total Attempts: 665

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Business Law Practice Exam (Intermediate Level) Part- II

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Questions and Answers
  • 1. 
    1. Jen’s father, who wishes he lived in the 18th century, orally promises to pay his daughter Jen’s boyfriend, Ryan, $10,000 dollars on the day Ryan marries Jen.  Which of the following is true?
    • A. 

      1. This is called a dowry and it is not enforceable in this case.

    • B. 

      2. This is called a dowry and it is enforceable in this case.

    • C. 

      3. This is called a prenuptial agreement and it is not enforceable in this case.

    • D. 

      4. This is called a prenuptial agreement and it is enforceable in this case.

    • E. 

      5. Marriage is never sufficient consideration.

  • 2. 
    1. When a trail court makes a judgment, they are making which kind of law?
    • A. 

      1. Statutory Law

    • B. 

      2. Constitutional Law

    • C. 

      3. Case Law

    • D. 

      4. Administrative Law

    • E. 

      5. Natural Law

  • 3. 
    1. Which of the following is not required with regard to a valid deed?
    • A. 

      A description of what property is being transferred

    • B. 

      Signature of grantor

    • C. 

      Notarization

    • D. 

      Delivered during grantor’s life

    • E. 

      All of the above are required

  • 4. 
    1. Which of the following is/are true with regard to Equitable remedies?
    • A. 

      Allowed only when money damages alone are inadequate

    • B. 

      Judge decides the facts

    • C. 

      Quasi-contract, Injunction, liquidated damages, and punitive damages are examples

    • D. 

      All of the above

    • E. 

      1 & 2

  • 5. 
    1. Which of the following is/are sufficient in order to establish Federal subject matter jurisdiction?
    • A. 

      Federal Question

    • B. 

      Diversity of Citizenship

    • C. 

      Minimum contacts of the defendant with the state in which the court sits

    • D. 

      All of the above

    • E. 

      1 and 2 only

  • 6. 
    1. Which of the following is a right which was listed in lecture as a typical right of a mortgagee on default?
    • A. 

      Equity of Redemption

    • B. 

      Statutory Redemption (in some states)

    • C. 

      Statutory notice of foreclosure sale

    • D. 

      All of the above

    • E. 

      Acceleration

  • 7. 
    1. Which of the following is true?
    • A. 

      Under Title Theory, title and possession reside with mortgagee

    • B. 

      Under Title Theory, title and possession reside with mortgagor

    • C. 

      Under Lien Theory, title and possession reside with lender

    • D. 

      Under Lien Theory, title and possession reside with mortgagee

    • E. 

      Under Lien Theory, mortgagor’s baby resides with mortgagee

  • 8. 
    Which of the following were discussed as floating liens in class?
    • A. 

      Security interests in fixtures.

    • B. 

      Security interests in proceeds

    • C. 

      Security interest in after-acquired property.

    • D. 

      1 & 2

    • E. 

      2 & 3.

  • 9. 
    1. You are the attorney for Alex.  Alex signed a promissory note for $100,000 to Michelle in order to receive 1,000 boxes of girl scout cookies.  Michelle then sold the promissory note to Bob, a holder in due course, for $90,000.  Now, Bob has come to collect from Alex.  What defense(s) are not successful against the HDC?
    • A. 

      The defense that the cookies were never delivered.

    • B. 

      Fraud in the inducement.

    • C. 

      Fraud in the execution.

    • D. 

      All of the above

    • E. 

      1 & 2.

  • 10. 
    1. Which of the following is an enforceable contract?
    • A. 

      A contract to commit burglary.

    • B. 

      A contract to defame a political opponent of the person who hired you.

    • C. 

      A contract to gamble with the neighborhood bookie.

    • D. 

      2 and 3

    • E. 

      None of the above are enforceable.

  • 11. 
    1. Which of the following is NOT considered evidence?
    • A. 

      Documents admitted for consideration by the jury

    • B. 

      Testimony of plaintiff’s witnesses

    • C. 

      Objects admitted for consideration by the jury

    • D. 

      Testimony of defendant’s witnesses

    • E. 

      All of the above are considered evidence

  • 12. 
    1. Which of the following is admissible to alter a written contract despite the parol evidence rule?
    • A. 

      Evidence of prior written agreements

    • B. 

      Evidence of contemporaneous oral statements

    • C. 

      Evidence of modifications occurring after the written contract was made

    • D. 

      Evidence prior oral statements

    • E. 

      Evidence of contemporaneous oral agreements

  • 13. 
    1. Which of the following terms refers to “personal property permanently attached to real estate”.
    • A. 

      Fixtures.

    • B. 

      Collateral.

    • C. 

      Quasi-tangibles.

    • D. 

      Proceeds.

    • E. 

      Execution.

  • 14. 
    1. Which of the following ways allows you to convert bearer paper to order paper:
    • A. 

      Indorse with “Without Recourse” and sign the indorsement.

    • B. 

      Indorse with “Pay to Britney Spears” and sign the indorsement.

    • C. 

      Indorse with signature only.

    • D. 

      All of the Above.

    • E. 

      1 & 2.

  • 15. 
    1. A contract that is so unfair that it “shocks the conscience” or is “devoid of conscience” is unenforceable under the doctrine of...
    • A. 

      Fairness

    • B. 

      Sufficiency

    • C. 

      Adequacy

    • D. 

      Unconscionability

    • E. 

      Exculpation

  • 16. 
    1. When a seller finances a real estate sale and will give the buyer a deed on payment of the purchase price in full, the contract is called:
    • A. 

      An Installment Land Contract

    • B. 

      A Due on Sale Contract

    • C. 

      A Power of Sale provision

    • D. 

      An Acceleration contract

    • E. 

      None of the above

  • 17. 
    1. If a repossession sale of collateral is completed, list the order in which the proceeds are distributed:
    • A. 

      Debt, Second Priority lien, Debtor, Expenses of the sale.

    • B. 

      First Priority Lien holder expenses of sale, lower priority lien holders, Debtor.

    • C. 

      Expenses of sale, First Priority Lien holder, lower priority lien holders, Debtor.

    • D. 

      Expenses of Sale, First Priority lien holder, Debtor, Lower priority lien holders.

    • E. 

      First Priority Lien holder, Expenses of Sale, Debtor, Second Priority Lien holder.

  • 18. 
    1. Mr. Acme rents an apartment to John to live in while he is attending school at MU.  When John shows up to move in, he finds that Joe has not yet moved out, even though John’s lease has become effective.
    • A. 

      Since this is Missouri, the American rule prevails, and under it the landlord must evict Joe or be in breach of lease.

    • B. 

      Since this is Missouri, the English rule prevails, and under it the landlord must evict Joe or be in breach of lease.

    • C. 

      Since this is Missouri, the American rule prevails, and under it the John must evict Joe

    • D. 

      Since this is Missouri, the English rule prevails, and under it the John must evict Joe

  • 19. 
    Which of the following statements are true about a criminal proceeding?
    • A. 

      A warrant must be issued in order to have a valid arrest.

    • B. 

      A criminal proceeding always includes a trial and appeal.

    • C. 

      An indictment must precede the arrest.

    • D. 

      None of the above.

    • E. 

      1 & 3.

  • 20. 
    1. Mr. Acme rents Joe an apartment on the second floor of his apartment building.  One day, when Joe is going up to his apartment, Joe trips on badly frayed carpet on a stair and hurts his ankle.  Joe sues Mr. Acme for negligence.  What is the likely result?
    • A. 

      Mr. Acme wins because under the common law, landlords have no duty to repair.

    • B. 

      Joe wins because Mr. Acme has a duty to use due care in maintaining common areas.

    • C. 

      Mr. Acme wins, because under the modern rule, the tenants share in the duty of maintaining common areas

    • D. 

      Joe wins because Mr. Acme violated the Explicit Guarantee of Occupation

    • E. 

      Mr. Acme wins because the area was in the tenant’s control

  • 21. 
    1. Mr. Acme rents an apartment to John for 2 years.  John stays in the apartment for 6 months and lets it out to Joe for the entire remainder of the lease.  This is an example of a:
    • A. 

      Lease

    • B. 

      Sublease

    • C. 

      Tenancy at Sufferance

    • D. 

      Assignment

    • E. 

      Subassignment

  • 22. 
    1. Yael is questioned in person and under oath prior to trial as a witness in a lawsuit. This procedure is called:
    • A. 

      Interrogatory

    • B. 

      Request for admission

    • C. 

      Direct examination

    • D. 

      Deposition

    • E. 

      Voir dire

  • 23. 
    1. Failure to perfect a security interest in a piece of collateral leads to the following groups having priority over the unperfected party:
    • A. 

      Buyers in the ordinary course of business

    • B. 

      Judgment lien holders.

    • C. 

      Creditors with a perfected security interest.

    • D. 

      All of the above

    • E. 

      1 and 2 only

  • 24. 
    1. If one party substantially performs on a contract, which of the following is true?
    • A. 

      Any breach he has committed was minor

    • B. 

      He has probably committed a material breach

    • C. 

      He cannot enforce any part of the contract against the other party because he hasn’t fully performed.

    • D. 

      He will receive full payment for his performance under the terms of the contract.

    • E. 

      1 and 4

  • 25. 
    1. Henderson Construction orally contracts to build a gas station for Shell for a million dollars.  Henderson says that it will probably take two years, but that it is possible that construction will be done much faster.  Which of the following is true?
    • A. 

      This contract is not enforceable

    • B. 

      This contract is enforceable by either party

    • C. 

      This contract falls under the statute of frauds

    • D. 

      This contract lacks sufficient consideration

    • E. 

      1 & 3

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