Business Law Practice Exam (Intermediate Level)

1. Bearer; order

2. Bearer; blank

3. Special; restrictive

4. Blank; special

5. Order; bearer

1. Missouri state court

2. Indiana federal court

3. Indiana state court

4. Missouri federal court

5. Kentucky state court

1. Valid

2. Unenforceable

3. Voidable

4. Void

5. Illegal

1. Mini-trial

2. Summary jury trial

3. Mediation

4. Arbitration

5. Specific performance

1. The 1st Amendment

2. The 4th Amendment

3. The 5th Amendment

4. The 6th Amendment

5. The 11th Amendment

1. Valid.

2. Void.

3. Voidable.

4. Unenforceable.

5. None of the above.

1. Contract price minus fair market value of services.

2. Lost profit.

3. Total contract price.

4. Value of the benefit given to seller of services.

5. Cover price minus contract price.

1. Alex can cancel the Listing agreement at any time.

2. Because Alex wanted to cancel the listing agreement before Samantha found a buyer the agreement is terminated and Alex keeps the house.

3. Alex owes Samantha the commission because Bob was “ready, willing and able” to buy Alex’s house.

4. Bob is entitled to injunctive relief forcing Alex to sell his house.

5. Because Alex communicated termination of the agreement after Samantha found a buyer he is bound by the listing agreement to sell his house.

1. Tom would be the grantor seeking a warrantee deed from Jerry the grantee.

2. Tom would be the mortgagee seeking a warrantee deed from Jerry the mortgagor.

3. Tom would be the mortgagor seeking a quitclaim deed from Jerry the mortgagee.

4. Tom would be the grantee seeking a warrantee deed from Jerry the grantor.

5. Tom would be the grantee seeking a quitclaim deed from Jerry the grantor.

1. Yes, through equity of redemption.

2. No, because the power of sale clause gives the bank the power to foreclose.

3. Yes, through a deficiency judgment.

4. No, because they have already started the foreclosure process with notice.

5. Yes, under the Title Theory.

1. Boyd has granted a license, which allows Acme to come onto the property whenever they need to.

2. Boyd has granted an easement so that Acme can enter the property and remove the gold.

3. Boyd has granted a profit so that Acme can come onto the land and remove the gold.

4. Boyd has granted a life estate allowing Acme to enter his land while he is alive.

5. Boyd has granted an exclusive listing because Acme will be the only company allowed onto Boyd’s land.

1. A Power of Sale Clause

2. A Due on Sale Clause

3. An Acceleration Clause

4. A Wraparound Clause

5. Prepayment Provision

1. A Future Interest

2. A Life Estate

3. A Tenancy in Common

4. A License

5. A Fee Simple Defeasible

1. Take it to trial because there is no chance a judge would grant any pre-trial motion based on these facts.

2. File a Motion for Directed Verdict because no controversy as to any material fact.

3. File a Motion for Summary Judgment because there is no controversy as to any material fact.

4. File a Motion to Dismiss for failure to state a claim or lack of jurisdiction.

5. File a Motion for Mistrial because there is no controversy as to any material fact. 5. File a Motion for Mistrial because there is no controversy as to any material fact. 5. File a Motion for Mistrial because there is no controversy as to any material fact.

1. A fixture is considered real property.

2. A fixtures is classified as an intangible.

3. The rules of Article 9 of the UCC apply to fixtures

4. All of the above.

5. None of the above.

1. Tenancy for years.

2. Ejectment tenancy.

3. Term tenancy

4. Tenancy at will.

5. Tenancy at sufferance.

1. Fraud in the inducement

2. Breach of warranty

3. Breach of contract

4. Forgery

5. None of the above

1. To have a sublease it is required that only a portion of the real estate be transferred to the second tenant, while in an assignment all of the real estate must be transferred to the second tenant.

2. To have an assignment it is required that only a portion of the real estate is transferred to the second tenant, while in a sublease all of the real estate must be transferred to the second tenant.

3. In a sublease the original tenant transfers only a portion of the remaining term on the lease to the second tenant, while in an assignment the original tenant transfers all of the remaining term on the lease to the second tenant.

4. In an assignment the original tenant transfers only a portion of the remaining term on the lease to the second tenant, while in a sublease the original tenant transfers all of the remaining term of the lease to the second tenant.

5. Both 1 and 3.

1. Unilateral contract

2. Bilateral contract

3. Implied in law contract

4. Implied in fact contract

5. Quasi contract

1. Reno, because the dealer agreed to purchase the gas

2. Reno B it is against public policy to allow a commercial used car dealer to back out of an agreement

3. Reno, because the testimony of Reno’s cousin proves the agreement existed

4. The car dealer, since the court won’t hear testimony about the contemporaneous oral agreement

5. The car dealer, since Reno did not pay any extra consideration for additional contract terms

1. Tenant only.

2. Sublessee or assignee only.

3. Tenant and a sublessee would be liable, but an assignee cannot be liable on the lease.

4. Tenant and any assignee or sublessee so long as there have been no releases granted.

5. No one, a landlord is unable to collect rent payments if someone doesn’t pay.

1. Remainder, sublease.

2. Restitution, sublease.

3. Restitution, assignment.

4. Reversionary, assignment.

5. Revocation, assignment.

1. Legal realism philosophy

2. Historicism philosophy

3. Naturalist philosophy

4. Traditional philosophy

5. Post-modernism

1. In a “notice” jurisdiction Mel will win.

2. In a “race-notice” jurisdiction John will win.

3. In a “race” jurisdiction Amy will win.

4. In a “race-notice” jurisdiction Mel will win.

5. In a “race” jurisdiction John will win.

1. The full two months rent ($2000).

2. Two months rent minus the amount landlord could have received in mitigation ($2000 - 600 “ 1400).

3. The total amount landlord could have received in mitigation ($300 x 2 months “ 600).

4. $0.

5. None of the above.

1. Yes, because of the mailbox rule

2. Yes, because David cannot terminate his offer by these terms

3. Yes, because David did not communicate revocation before acceptance was effective

4. No, because Reno’s acceptance was merely a counteroffer

5. No, because by the terms of the offer, the acceptance was not timely

1. Farm animals.

2. Motor vehicles.

3. Jewelry.

4. Household goods.

5. Crops

1. Legality

2. Capacity

3. Mutual Manifestation of Assent

4. Consideration

5. Standing

1. Satisfaction of debt of 1st lienholder, expenses of sale, subordinate security interest holders, debtor

2. Expenses of sale, satisfaction of debt of 1st lienholder, debtor, subordinate security interest holders

3. Subordinate security interest holders, satisfaction of debt of 1st lienholder, expenses of sale debtor

4. Expenses of sale, satisfaction of debt of 1st lienholder, subordinate security interest holders, debtor

5. Satisfaction of debt of 1st lienholder, Subordinate security interest holders, expenses of sale debtor

1. Opening Statements, Voire Dire, Closing Arguments

2. Voire Dire, Opening Statements, Plaintiff’s Case, Closing Arguments

3. Motion for Directed Verdict, Opening Statements, Trial Motions, Plaintiff’s Case, Defendant’s Case, Rebuttal, Closing

4. Voire Dire, Opening Statements, Rebuttal, Plaintiff’s case

5. 2 & 3.

1. Possession.

2. Attachment.

3. Filing a financing statement.

4. All of the above.

5. 2 & 3.

1. Asked what he thinks the painting is worth, the art critic says he wouldn’t pay more than $10,000 for such a painting.

2. Approached by a car salesman, I was told, “I offer to sell this car for $25,000.”

3. Advertisement says “We have ten big screen Sony TVs Model-500 that we are selling for $1,200 each. First come, first served. When they are gone, that’s it! So come down to Lou’s TV immediately”

4. eBay Auction of vacation package “without reserve.”

5. 1 & 2.

1. Tom’s written agreement to sell his vacation property to Laura

2. Gina’s retainer contract with her lawyer for provide her with legal services for the next two years

3. Paul’s contract with Larry for the sale of $500 worth of office pens

4. Bill’s prenuptial promise not to ask Linda, in the event of a divorce, for any of the $60,000 she won in the lottery

5. Richard promises Pete: “I’ll repay your debt to Ron if you can’t pay.”

1. By accepting in a way which is the mirror image of the offer.

2. Lapse of a stated time

3. Counter-offer

4. All of the above

5. 2 and 3 only

1. An opinion may never suffice to meet the misrepresentation requirement.

2. The misrepresentation must be material to the deal.

3. Misrepresentation must be relied up by plaintiff

4. All of the above.

5. None of the above.

1. Give value for the instrument

2. Take the instrument in good faith

3. Take the instrument from original maker

4. Take the instrument without notices of defenses

5. All of the above are requirements to be a holder in due course

1. In Missouri, there is no duty for the landlord to mitigate damages unless a security deposit is held.

2. In general, the tenant has the duty to make repairs to the premises in a commercial lease. 3. Rent is a dependent covenant. 2. In general, the tenant has the duty to make repairs to the premises in a commercial lease. 3. Rent is a dependent covenant. 2. In general, the tenant has the duty to make repairs to the premises in a commercial lease.

3. Rent is a dependent covenant.

4. Under the “English rule”, the landlord must give tenant actual possession of the premises

5. All of the above are true.

1. The deed must be recorded.

2. The deed must be signed by the parties

3. The deed include the value of the property conveyed.

4. The deed must include a legal description of the property conveyed.

5. The deed must be delivered to the intended recipient

1. The difference between a license and a lease is that one is a temporary right and the other is a permanent right.

2. The difference between a sale of a building and a leasing of that same building is that one is an exclusive right of possession while the other is not an exclusive right to possession.

3. A lease is an exclusive right to possession.

4. Leases are really sales of property with the option by the landlord to “buy back” the property and the end of the lease’s term.

5. Both 1 and 3.

1. Goods.

2. Quasi-tangibles.

3. Real Estate.

4. All of the above.

5. 1 & 2.

1. Truth

2. Retraction

3. Absolute Privilege

4. Conditional Privilege

5. Sovereign Immunity

1. False Imprisonment

2. Defamation

3. Strict Liability

4. Fraudulent Misrepresentation

5. Nuisance

1. Strict Liability

2. Comparative Negligence

3. Contributory Negligence

4. Assumption of the Risk

5. Joint and Several Liability

1. “I agree to buy all the computers from you that I want for $1,000 apiece.”

2. “In exchange for the last 20 years of service I promise to give you a retirement bonus”

3. “I promise to pay my taxes if you will give me $200.”

4. “I will consent to divorce in exchange for your $400,000 house.”

5. On graduation day: “I’m proud of how you’ve done in completing college. I promise to give you $1000 at your graduation party.”

1. It is unjust not to enforce the promise

2. They must have met the four requirements for a valid contract

3. It is reasonable that the promise is relied upon

4. Promisee relies upon the promise to his detriment

5. None of the above B all are elements of promissory estoppel

1. Occurrence of an immaterial breach

2. Material alteration of the contract by one party

3. An accord and satisfaction

4. Occurrence of anticipatory repudiation

5. Occurrence of a condition precedent

1. Satisfaction Clause

2. “Time is of the Essence” Clause

3. The importance of the breach in light of the entire contract

4. All of the above

5. 1 and 2 only

1. Mistake of law is never a defense to a crime.

2. Mistake of law is always a defense to a crime.

3. Mistake of law is sometimes a defense to a crime.

4. Mistake of fact is never a defense to a crime.

5. Mistake of fact is always a defense to a crime.