Business Law Practice Exam (Intermediate Level)

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. A Future Interest

2. A Life Estate

3. A Tenancy in Common

4. A License

5. A Fee Simple Defeasible

1. False Imprisonment

2. Defamation

3. Strict Liability

4. Fraudulent Misrepresentation

5. Nuisance

1. Valid

2. Unenforceable

3. Voidable

4. Void

5. Illegal

1. Legal realism philosophy

2. Historicism philosophy

3. Naturalist philosophy

4. Traditional philosophy

5. Post-modernism

1. Farm animals.

2. Motor vehicles.

3. Jewelry.

4. Household goods.

5. Crops

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. Possession.

2. Attachment.

3. Filing a financing statement.

4. All of the above.

5. 2 & 3.

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. Valid.

2. Void.

3. Voidable.

4. Unenforceable.

5. None of the above.

1. February 1st.

2. August 1th of the prior year.

3. July 31st

4. July 17th

5. June 30th

1. The secured party has only limited rights in the collateral.

2. The secured party took possession of the collateral.

3. The debtor has possession of the collateral and there is no written agreement between the parties .

4. The only value given by secured party was for past consideration.

5. None of the Above.

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. Legality

2. Capacity

3. Mutual Manifestation of Assent

4. Consideration

5. Standing

1. Missouri state court

2. Indiana federal court

3. Indiana state court

4. Missouri federal court

5. Kentucky state court

1. Mini-trial

2. Summary jury trial

3. Mediation

4. Arbitration

5. Specific performance

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. “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. 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.

1. Bearer; order

2. Bearer; blank

3. Special; restrictive

4. Blank; special

5. Order; bearer

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. Unilateral contract

2. Bilateral contract

3. Implied in law contract

4. Implied in fact contract

5. Quasi contract

1. Tenancy for years, for one year.

2. Periodic tenancy, month to month.

3. Tenancy at will, month to month.

4. Tenancy at will, indeterminate.

5. Tenancy at sufferance, day to day.

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. 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. 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. 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. 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. Threaten legal action based on right to enforce security interest whether secured party is serious about doing this or not.

2. Hire third-party to track and then take possession of collateral when debtor is not around.

3. Follow debtor on to debtor’s property, then confiscate the collateral by force.

4. Auction off collateral to pay off debt after repossession.

5. None of the above B all are acceptable.

1. Full competence, no competence.

2. No competence, no competence.

3. Limited competence, limited competence.

4. Limited competence, no competence.

5. No competence, limited competence.

1. Rescission and restitution.

2. Specific performance.

3. Novation.

4. Reformation.

5. Injunction.

1. Robbery

2. Burglary

3. Embezzlement

4. Larceny

5. Battery

1. Common laws

2. Statutes

3. Restatements

4. Uniform Codes

5. None of the above.

1. Actual eviction.

2. Constructive eviction.

3. Retaliatory eviction.

4. Both 1 and 2.

5. Both 1 and 3.

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. Fraud in the inducement

2. Breach of warranty

3. Breach of contract

4. Forgery

5. None of the above

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. 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. Truth

2. Retraction

3. Absolute Privilege

4. Conditional Privilege

5. Sovereign Immunity

1. Strict Liability

2. Comparative Negligence

3. Contributory Negligence

4. Assumption of the Risk

5. Joint and Several Liability

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. 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. Tenancy at sufferance.

2. Tenancy at will.

3. Tenancy for years.

4. Tenancy for months.

5. Periodic tenancy.

1. Persons under 18 need only to fulfill the duty of restoration in a majority of states.

2. Highly intoxicated persons need only to fulfill the duty of restitution.

3. Adjudicated mentally incompetent people need only to fulfill the duty or restitution.

4. Non-adjudicated mentally incompetent people need only to fulfill the duty of restoration.

5. None of the above are true.

1. No, not unless there is a written security agreement

2. No, this transaction does not qualify as a PMSI that can perfected automatically

3. Yes, this transaction does qualify as a PMSI that can be perfected automatically.

4. Yes, the pawnbroker has a perfected security interest if he keeps possession of the watch.

5. None of the above.