Legal Terminology Exams.docx

Legal Terminology Tests Test 1: Chapters 1 and 2 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. A felony is a less serious crime than a misdemeanor. 2. No act is criminal unless it is both prohibited and penalized by the law of the jurisdiction in which it is committed. 3. Mere knowledge that a crime is going to be committed by another person is enough for someone to become an accessory before the fact. 4. The crime of conspiracy can exist even when the crime or unlawful act that was agreed upon is never carried out. 5. Embezzlement includes a wrongful taking. 6. The subject matter of larceny must be personal property. 7. To constitute larceny, the property must be taken from another's custody. 8. The crime of bribery is the same as the crime of extortion. 9. An essential element of larceny is animus testandi; that is, an intent to steal. 10. In general, an accessory before the fact is subject to the same punishment as a principal. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. A principal in the second degree is a person who a. actually commits a felony. b. does not commit the act but is present, assisting another in the commission of a felony. c. procures, counsels, or commands another to commit a felony but is not present when the felony is committed. d. receives, relieves, comforts, or assists another with knowledge that person has committed a felony. 12. The plaintiff in a criminal action is a. the victim of the crime. b. the state or federal government. c. the perpetrator of the crime. d. none of the above. 13. Crimes which are wrong in and of themselves such as murder, rape, and robbery are called a. misdemeanors. b. crimes mala in se. c. crimes mala prohibita. d. ex post facto crimes. 14. Evidence of a right to property but not the property itself is a(n) a. article of real property. b. article of personal property. c. chose in action. d. chattel. 15. An accessory before the fact is a person who a. actually commits a felony. b. does not commit the act but is present, assisting another in the commission of a felony. c. procures, counsels, or commands another to commit a felony but is not present when the felony is committed. d. receives, relieves, comforts, or assists another with knowledge that person has committed a felony. 16. Evidence obtained by an unconstitutional search or seizure cannot be used at the trial of a defendant under the a. good faith exception to the exclusionary rule. b. plain view doctrine. c. exclusionary rule. d. RICO statute. 17. One of the elements of common law larceny is a. in the nighttime. b. a carrying away. c. the intent to commit a felony. d. a dwelling house. 18. The detention and control of anything is the definition of a. embezzlement. b. custody. c. asportation. d. possession. 19. The carrying away of goods is the definition of a. embezzlement. b. custody. c. asportation. d. possession. 20. Larceny that is a misdemeanor rather than a felony is a. grand larceny. b. larceny by false pretenses. c. petit larceny. d. embezzlement. ANSWERS Test 1: Chapters 1 and 2 1. F 5. F 9. T 13. b 17. b 2. T 6. T 10. T 14. c 18. d 3. F 7. F 11 b 15. c 19. c 4. T 8. F 12. b 16. c 20. c Test 2: Chapters 3 and 4 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. It was considered mayhem to cut off a person's nose at common law. 2. Mere threats or words alone are not enough to be an assault. 3. Many states today have changed the definition of rape to include unnatural sexual acts on men as well as women. 4. Many states in recent years have made it a crime, called eavesdropping, to follow someone around, threatening him or her with violence. 5. Rape shield laws have been passed to help prevent alleged rapists from being victimized. 6. Legal execution is an example of felonious homicide. 7. Except when at home, a person must retreat if possible before killing an assailant in self-defense. 8. The corpus delecti must be accounted for to be convicted of homicide. 9. The accidental killing of a pedestrian while violating the speed limit is an example of voluntary manslaughter. 10. Larceny is a lesser included offense of robbery. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. One of the principal differences between larceny and robbery is that in robbery (and usually not in larceny) there is a. a carrying away in the nighttime. b. no taking from the person. c. a taking from the person. d. a dwelling house involved. 12. Under the common law, a woman could not be convicted of rape as a. a principal in the first degree. b. a principal in the second degree. c. an accessory before the fact. d. an accessory after the fact. 13. If a person from whom goods are stolen is unaware of the crime's occurrence, as when a pocket is picked, the crime is a. burglary. b. embezzlement. c. robbery. d. larceny. 14. In general, the penalty for robbery is a. the same as that for larceny. b. less than that for larceny. c. greater than that for larceny. d. none of the above. 15. The unpermitted, physical contact with another person in an angry, revengeful, rude, insolent, or reckless manner is a. rape. b. assault. c. mayhem. d. battery. 16. A capital crime is a crime a. that takes place in the capital city of a state government. b. that is punishable by death. c. in which the victim is the head of state. d. that contains some but not all elements of a greater offense. 17. The unlawful killing of a human being by another without malice aforethought is the definition of a. murder. b. manslaughter. c. homicide. d. none of the above. 18. The unlawful killing of a human being by another with malice aforethought is the definition of a. murder. b. manslaughter. c. homicide. d. none of the above. 19. The killing of a human being by a human being is the definition of a. murder. b. manslaughter. c. homicide. d. all of the above. 20. In some states, anyone who counsels another to commit suicide and who is present when the act is committed would be considered a(n) a. principal in the first degree to the crime of murder. b. principal in the second degree to the crime of manslaughter. c. principal in the second degree to the crime of murder. d. accessory before the fact to the crime of manslaughter. ANSWERS Test 2: Chapter 3 and 4 1. F 5. F 9. F 13. d 17. b 2. T 6. F 10. T 14. c 18. a 3. T 7. T 11. c 15. d 19. c 4. F 8. T 12. a 16. b 20. C Test 3: Chapters 5 and 6 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. Opening an unlocked door or window is considered a breaking. 2. Attempted arson is not a punishable offense. 3. A landlord may be guilty of burglary for entering a house owned by him or her but rightfully occupied by a tenant if the other elements of burglary are present. 4. Circumstantial evidence cannot be used to prove that an accused had knowledge that goods he or she received were stolen. 5. Fornication is not a crime in any state. 6. The Uniform Controlled Substances Act does not establish penalties for violation of the law. 7. All states in the United States consider polygamy, but not bigamy, to be criminal. 8. The First and Fourteenth Amendments to the U.S. Constitution do not protect obscenity. 9. The U.S. Supreme Court has held miscegenation statutes to be valid and legal. 10. If someone is authorized to sign another's name, it is not a forgery to do so. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. One of the elements of common law burglary is a. in the nighttime. b. a carrying away. c. in the daytime. d. personal property. 12. To constitute the crime of common law arson. a. a mere scorching or blackening of the wood is enough. b. some portion of the house must actually have been on fire. c. the burning must take place in the nighttime. d. it is not necessary to prove malice. 13. Common law burglary requires the intent to commit a a. misdemeanor. b. crime mala prohibita. c. crime mala in se. d. felony. 14. The fraudulent making or altering of a writing whereby the rights of another might be prejudiced is the definition of a. fraud in esse contractus. b. larceny by false pretenses. c. efficacy. d. forgery. 15. One of the major issues in determining the guilt or innocence of people accused of the crime of receiving stolen goods is whether or not a. the goods are found on the person. b. the goods are over a certain value. c. they actually knew the goods were stolen. d. they should have known the goods were stolen. 16. Sexual intercourse between people who are related by consanguinity or affinity is such a way that they cannot legally marry is a. sodomy. b. adultery. c. fornication. d. incest. 17. Sexual intercourse between two unmarried persons is a. sodomy. b. adultery. c. fornication. d. incest. 18. With some variations, most states prohibit marriage between people who are related by a. fornication. b. affinity. c. consanguinity. d. miscegenation. 19. In 1992, the U.S. Supreme Court a. struck down laws that require minors seeking an abortion to obtain a parent's consent. b. reaffirmed its essential holdings in the Roe v. Wade case. c. upheld laws that require wives to notify husbands of an intended abortion. d. struck down its essential holdings in the Roe v. Wade case. 20. To convict someone of the crime of adultery, the prosecution must prove that the illegal act occurred a. beyond a reasonable doubt b. by a preponderance of evidence. c. by evidence of the greatest weight. d. all of the above. ANSWERS Test 3: Chapters 5 and 6 1. T 5. F 9. F 13. d 17. c 2. F 6. T 10. T 14. d 18. c 3. T 7. F 11. a 15. c 19. b 4. F 8. T 12. b 16. d 20. A Test 4: Chapters 7, 8 and 9 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. To be actionable fraud, the misrepresentation must be an opinion or a promise of something to happen in the future. 2. Under the doctrine of respondeat superior, a government body is immune from tort liability. 3. Several liability means that all joint tortfeasors must be named as defendants in a lawsuit. 4. If one joint tortfeasor is required to pay more than his or her share to the injured party, he or she may sue the other joint tortfeasor for the excess. 5. Although every battery includes an assault, an assault does not necessarily require a battery. 6. Failing to return borrowed goods is an example of conversion. 7. To recover for emotional suffering, the plaintiff must prove that the emotional suffering was caused by the extreme and outrageous intentional conduct of the defendant. 8. Whether or not an act is negligent is normally a question of law. 9. When the doctrine of res ipsa loquitur is used, the case can go to the jury if it is probable that a negligent act of the defendant caused the plaintiff's injury. 10. Contributory negligence is negligence on the part of the defendant which contributed toward the injuries and was a proximate cause of them. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. A tort is a. a breach of contract. b. a wrong against the public at large. c. a wrong against an individual. d. none of the above. 12. A wrong that is both a tort and a crime is a. slander. b. assault and battery. c. libel. d. emotional suffering. 13. A tort is a breach of a. duty imposed by agreement of the parties. b. duty imposed by a tortfeasor. c. duty imposed by law. d. no duty. 14. To recover for negligence, an injured party must prove a. a negligent act. b. damages. c. causation. d. all of the above. 15. Another name for fraud is a conversion. b. libel. c. scienter. d. deceit. 16. Defamation that is communicated by a writing is called a. slander. b. libel. c. conversion. d. deceit. 17. To be actionable, defamation a. must be communicated to the person defamed. b. must be communicated to a third person. c. need not be communicated at all. d. none of the above. 18. Lawyers and judges while participating in trials and members of the legislature during its session have a. no privilege against defamation suits. b. an absolute privilege against defamation suits. c. a qualified privilege against defamation suits. d. none of the above. 19. The doctrine which protects children who trespass is called the a. attractive nuisance doctrine. b. contributory negligence doctrine. c. comparative negligence doctrine. d. assumption of the risk doctrine. 20. An absolute time limit for bringing a cause of action regardless of when the cause of action accrues is called a statute of a. repose. b. frauds. c. limitations. d. time. ANSWERS Test 4: Chapters 7, 8, and 9 1. F 5. T 9. T 13. c 17. b 2. F 6. T 10. F 14. d 18. b 3. F 7. T 11. c 15. d 19. a 4. T 8. F 12. b 16. b 20. A Test 5: Chapters 10, 11 and 12 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. A rejection occurs when an offeror has a change of mind and calls back an offer before it is accepted. 2. A bilateral contract results when someone says, "I'll sell you my stereo for $100," and the other party replies, "I'll buy it." 3. A voidable contract is one that is valid unless voided. 4. Infants may ratify contracts at any time during their minority. 5. A binding contract comes into existence when one person says to another, "I'm going to give you my stereo as a gift," and the other replies, "Fine, I'll accept it." 6. Under a rule of law known as the statute of limitations, certain contracts must be in writing to be enforceable. 7. A memorandum may consist of words on a piece of scrap paper, receipt, or check. 8. The law assumes that when a contract is reduced to writing, all of its terms are contained in the writing. 9. With some exceptions and unless otherwise agreed, rights and duties cannot be transferred to other people. 10. If a time for performance is stated in a written contract, the court may allow additional time for its performance. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. The transfer of a duty is known as a(n) a. assignment. b. transfer. c. delegation. d. novation. 12. To be in a position to bring suit against another for breach of contract, it is necessary to a. make tender. b. make a novation. c. put the contract under seal. d. have an invitation to negotiate. 13. Damages that are agreed upon by the parties at the time of the execution of the contract in the event of a subsequent breach are called a. consequential damages. b. exemplary damages. c. incidental damages. d. liquidated damages. 14. A contract containing only one promise in exchange for an act is called a(n) a. unenforceable contract. b. implied contract. c. unilateral contract. d. bilateral contract. 15. A court may order specific performance of a contract when a. it is in writing. b. there is an accord and satisfaction. c. the subject matter of the contract is unique. d. none of the above. 16. Statutes of limitations are tolled when the a. plaintiff is an infant. b. plaintiff is mentally ill. c. defendant is out of state. d. all of the above. 17. Contracts for the sale of goods must be in writing to be enforceable if their amount is a. $500 or more. b. $600 or more. c. $700 or more. d. $800 or more. 18. When there is a mutual mistake, a. the contract cannot be avoided by the parties. b. the contract can be avoided by the parties. c. the contract is void. d. none of the above. 19. Sometimes, to prevent unjust enrichment, the court will impose a contract on the parties when there really isn't one. This is called a(n) a. contract implied in fact. b. contract implied in law. c. express contract. d. bilateral contract. 20. An exchange of benefits and detriments by the parties to an agreement is known as a. consideration. b. a nudum pactum. c. specific performance. d. locus sigilli. ANSWERS Test 5: Chapters 10, 11, and 12 1. F 5. F 9. F 13. d 17. a 2. T 6. F 10. T 14. c 18. b 3. T 7. T 11. c 15. c 19. b 4. F 8. T 12. a 16. d 20. A Test 6: Chapters 13, 14 and 15 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. A person hired to manage a business is an example of a special agent. 2. Someone who is injured by an employee's wrongful act may recover damages from either the employer or the employee. 3. In an auction with reserve, the auctioneer may withdraw the goods without accepting the highest bid. 4. Under federal law, when a limited warranty is given for consumer goods, the seller must repair or replace without cost to the buyer defective goods or refund the purchase price. 5. It is a bailment when someone borrows a cup of sugar from a neighbor. 6. Copyright protection lasts for the life of the author. 7. The fair use of copyright work for purposes of teaching, including multiple copies for classroom use, is allowed. 8. Trademarks can be lost by the mark becoming a generic term. 9. When a principal authorizes an agent to enter into a contract on the principal's behalf, the resulting contract is between the agent and the third party. 10. An agent who contracts on behalf of an undisclosed principal can be held liable on the contract. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. An implied warranty, given my merchants in all states unless excluded, that goods are fit for the ordinary purpose for which such goods are used is known as a(n) a. express warranty b. warranty of merchantability. c. warranty of fitness for a particular purpose. d. warranty of title. 12. Broadly speaking, anything that is the subject of ownership other than real property is known as a. chattels. b. personal property. c. personalty. d. all of the above. 13. Goods which any unit is, by nature or usage of trade, the equivalent of any like unit are called a. future goods. b. choses in action. c. trade fixtures. d. fungible goods. 14. A patent is a grant by the U.S. Government of the exclusive right to make, use, and sell an invention for a. 50 years. b. 25 years. c. 17 years. d. 10 years. 15. The relationship that exists when possession (but not ownership) of personal property is transferred to another for a specific purpose is called a(n) a. sale. b. bulk transfer. c. bailment. d. mutuum. 16. Trademarks may be established by a. usage under the common law. b. following state trademark laws. c. registering with the U.S. Patent and Trademark Office. d. all of the above. 17. A federal trademark provides protection for ten years and a. may not be renewed. b. may be renewed for additional ten-year periods. c. may be renewed for additional five-year periods. d. may be renewed for additional ten-year period. 18. One who performs services under the direction and control of another is known as a(n) a. agent. b. servant. c. independent contractor. d. consignee. 19. One who performs services for others but who is not under the other's control is known as a(n) a. agent. b. servant. c. independent contractor. d. special agent. 20. An agency that comes about when a principal through some act, makes it appear that an agent has authority when there really is none is a(n) a. agency by estoppel. b. agency by ratification. c. general agency. d. vicarious agency. ANSWERS Test 6: Chapters 13, 14, and 15 1. F 5. F 9. F 13. d 17. b 2. T 6. F 10. T 14. c 18. b 3. T 7. T 11. b 15. d 19. c 4. F 8. T 12. d 16. d 20. A Test 7: Chapters 16 and 17 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. To begin a lawsuit, the plaintiff's attorney files a summons with the clerk of the court. 2. Suspects cannot be arrested without an arrest warrant. 3. For a court to have jurisdiction over an in rem action, the property must be located in the state (and usually the county) where the court lies. 4. A transitory action may be brought only in one place. 5. A state court will obtain personal jurisdiction over anyone if process is served while that person is within the state boundaries. 6. If a defendant owns real property in one state and lives in another, the court where the real property is located has jurisdiction over the person and not the property. 7. An affiant is also known as a deponent. 8. An ex parte session of the court is attended by both parties to the suit. 9. When real property is attached, the writ of attachment is recorded at the city or town hall where the property is located. 10. Pleadings help to narrow the issues for trial so that both parties and the court know what legal issues must be decided. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. The power of two or more courts to decide a particular case is called a. original jurisdiction. b. appellate jurisdiction. c. concurrent jurisdiction. d. exclusive jurisdiction. 12. The power or authority that a court has to hear a case is known as a. venue. b. personam jurisdiction. c. original jurisdiction. d. jurisdiction. 13. The act of calling a prisoner before the court to answer an indictment is a(n) a. civil action. b. arraignment. c. personal recognizance. d. in personam action. 14. A formal notice to the defendant that a lawsuit has begun and that the defendant must file an answer within the number of days set by state law is a(n) a. complaint. b. declaration. c. summons d. verification. 15. The place where the trial is held is the a. venue. b. jurisdiction. c. forum non conveniens. d. res. 16. An action that can occur only in one place is a(n) a. civil action. b. quasi in rem action. c. in rem action. d. local action. 17. When papers are left by a process server at the defendant's last and usual place of abode, it is known as a. personal service. b. substituted service. c. constructive service. d. residential service. 18. The act of taking a person's property and bringing it into the custody of the law so that it may be applied toward the defendant's debt if the plaintiff wins the case is known as a. attachment. b. garnishment. c. process. d. trustee process. 19. A method of settling disputes in which a neutral third party makes a decision after hearing the arguments on both sides is called a. arbitration. b. mediation. c. a bifurcated trial. d. a forum non conveniens. 20. A grand jury is a jury consisting of not more than a. six people. b. twelve people. c. sixteen people. d. twenty-three people. ANSWERS Test 7: Chapters 16 and 17 1. F 5. T 9. F 13. b 17. c 2. F 6. F 10. T 14. c 18. a 3. T 7. T 11. c 15. d 19. a 4. F 8. F 12. d 16. d 20. D Test 8: Chapters 18 and 19 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. If the court sustains a demurrer, the defendant is given a certain number of days to file an answer. 2. A motion for judgment on the pleadings may be made by the defendant only. 3. If the defendant fails to deny an allegation made in the plaintiff's complaint, it is automatically admitted. 4. When an affirmative defense is used, the defendant denies the plaintiff's allegation. 5. A motion to dismiss may be allowed for lack of jurisdiction over the defendant personally. 6. The court may order a party to submit to a physical but not a mental examination. 7. Interrogatories must be answered in writing and signed by the attorney answering them under the penalties of perjury. 8. A deposition is the testimony of a witness given under oath in open court. 9. If a party to whom a request for admission is directed fails to answer, the matter is considered by the court to be admitted. 10. After an action has begun, any party to a suit may ask written questions of any other party to a suit. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. A claim that the defendant has against the plaintiff is a(n) a. affirmative defense. b. allegation. c. counterclaim. d. cross claim. 12. A statement or claim that the party making it expects to prove is a(n) a. affirmative defense. b. allegation. c. demurrer. d. cross complaint. 13. A claim brought by one defendant against another defendant in the same suit is a(n) a. confession and avoidance. b. counterclaim. c. misnomer. d. cross claim. 14. An order commanding a person to appear and bring certain papers or other materials that are pertinent to a legal action is a(n) a. summons. b. subpoena. c. subpoena duces tecum. d. bill of particulars. 15. A method used to admit the plaintiff's allegations but introduce another factor that avoids liability is a(n) a. demurrer. b. motion to dismiss. c. affirmative defense. d. answer. 16. If the defendant fails to deny an allegation made in the plaintiff's complaint, it is a. automatically admitted. b. automatically denied. c. neither admitted nor denied. d. partially admitted and partially denied. 17. An order commanding a person to appear and testify in a legal action is called a(n) a. summons. b. deposition. c. subpoena duces tecum. d. subpeona. 18. An agreement between the parties to an action regulating any matter relative to the proceedings is a(n) a. deposition b. interrogatory. c. subpoena. d. stipulation. 19. Questions asked by a deponent in response to questions asked at a deposition are called a. redirect questions. b. cross questions. c. recross questions. d. interrogatories. 20. The testimony of a witness given under oath but not in open court and later reduced to writing is called a(n) a. deposition. b. discovery. c. interrogatory. d. subpoena duces tecum. ANSWERS Test 8: Chapters 18 and 19 1. F 5. T 9. T 13. d 17. d 2. F 6. F 10. T 14. c 18. d 3. T 7. F 11. c 15. c 19. b 4. F 8. F 12. b 16. a 20. A Test 9: Chapters 20 and 21 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. When an order for jurors is sent to a city, the mayor personally chooses a number of people for jury duty. 2. Two or more sentences imposed on a defendant to be served one after the other are called concurrent sentences. 3. The ordinary jury of twelve people used for the trial of a civil or criminal action is known as a petit jury. 4. Members of the jury must stand indifferent. 5. A limit exists as to the number of challenges for cause that may be made in a jury trial. 6. Only questions of fact may be raised on appeal. 7. Leading questions are allowed on direct examination. 8. In a criminal case, the jury must agree unanimously in order to reach a verdict. 9. A jury never decides questions of fact, only questions of law. 10. When a witness testifies as to something he or she observed, such as, "I saw that man shoot the gun," it is called circumstantial evidence. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. A challenge of a juror for which no reason need be given is a(n) a. indifferent challenge. b. challenge for cause. c. peremptory challenge. d. challenge to the array. 12. A written order to cities and towns to provide a designated number of jurors for the next sitting of the court is a(n) a. voir dire. b. venire. c. writ of venire facias. d. array. 13. The jury pool or large group of people from which juries are selected is called the a. grand jury. b. voir dire. c. venue. d. venire. 14. The examination of jurors by the court to see that they stand indifferent is referred to as the a. venire. b. voir dire. c. array. d. venue. 15. People elected to serve as members of the legislative body of a city are called a. selectpeople. b. talesmen and taleswomen. c. jurors. d. alderpeople. 16. The decision of a jury is called a(n) a. judgment. b. verdict. c. decree. d. judgment n.o.v. 17. Actual objects that have a bearing on the case, such as a weapon found at the scene of a crime, is known as a. real evidence. b. circumstantial evidence. c. testimonial evidence. d. documentary evidence. 18. A party against whom an appeal is brought is called a(n) a. defendant. b. appellant. c. appellee. d. garnishee. 19. Questions that suggest to the witness the desired answer are known as a. questions of fact. b. questions of law. c. direct questions. d. leading questions. 20. A request to a higher court to review the decision of a lower court is called a(n) a. decree. b. mistrial. c. appeal. d. rebuttal. ANSWERS Test 9: Chapters 20 and 21 1. F 5. F 9. F 13. d 17. a 2. F 6. F 10. F 14. b 18. c 3. T 7. F 11. c 15. d 19. d 4. T 8. T 12. c 16. b 20. C Test 10: Chapters 22 and 23 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. Attestation is the act of the senses; subscription is the act of the hand. 2. A person becomes 18 years of age on the day before his or her eighteenth birthday. 3. The word testate refers to the state of a person who dies without a will. 4. A will may never be signed by a "X." 5. If the question of soundness of mind is raised in a contested will case, the witnesses to the will may not testify. 6. A properly executed codicil will reestablish a will that has been formerly revoked or improperly executed. 7. When a legatee or devisee dies before the testator, the bequest or devise in the will to that person falls into the residuary fund of the estate. 8. Estate planning involves arranging a person's assets in a way that maintains and protects the family most effectively both during and after the person's life. 9. If a clause in a will reads: "I leave $20,000 to my daughter, Linda," the gift is a specific legacy. 10. A satisfaction occurs when all or part of the amount of a general pecuniary legacy is paid to a legatee during the testator's life with the intent that such payment is in lieu of the legacy. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. A power that does not become effective until the person making it actually becomes incapacitated is called a(n) a. durable power. b. actual power. c. springing power. d. testamentary power. 12. A will written entirely in the hand of a testator is a(n) a. testament. b. advance directive. c. holographic will. d. nuncupative will. 13. A male who makes or has made a testament or will is a(n) a. executor. b. testatrix. c. devisor. d. testator. 14. With variations from state to state, a will may be revoked by a. burning, tearing, canceling, or obliterating. b. executing a new will. c. subsequent marriage. d. all of the above. 15. A gift of personal property in a will is a(n) a. legator. b. bequest. c. bequeath. d. testament. 16. A testamentary disposition is a. a gift of property that takes effect when the one who makes the gift dies. b. a written expression of a person's wishes to be allowed to die a natural death. c. an amount that is inherited when someone dies without a will. d. a gift of property that takes effect while the one who makes the gift is still alive. 17. To be effective, a codicil a. need not refer specifically to an existing will. b. must be typewritten. c. need not be witnessed. d. must be executed with the same formalities as a will. 18. A legacy lapses when the a. gift to the legatee is no longer in existence. b. legatee is an infant. c. legatee dies before the testator. d. legatee dies after the testator. 19. A gift in a will is said to adeem when the a. person to whom the gift is given dies before the testator. b. witnesses have not signed their names in the testator's presence. c. legatee is an infant. d. gift no longer exists when the testator dies. 20. A legacy of money is called a(n) a. demonstrative legacy. b. pecuniary legacy. c. specific legacy. d. lapsed legacy. ANSWERS Test 10: Chapters 22 and 23 1. T 5. F 9. F 13. d 17. d 2. T 6. T 10. T 14. d 18. c 3. F 7. T 11. c 15. b 19. d 4. F 8. T 12. c 16. a 20. B Test 11: Chapters 24, 25 and 26 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. In some states, a will will be allowed by the court without the testimony of witnesses if it contains a self-proof clause and no one objects to its allowance. 2. The clause that precedes the witness's signatures in a will is called the testimonium clause. 3. If the residuary clause is omitted from a will, the residue will usually pass to their heirs according to the law of intestate succession. 4. If a testator fails to appoint an executor in a will, the court will appoint a trustee to perform the task. 5. Under today's laws, if a surviving spouse is unhappy with the provisions of his or her spouse's will, he or she can do nothing about it. 6. Today, real property vests in the decedent's heirs at the moment of death of the owner, whereas personal property passes to the personal representative to be distributed by him or her. 7. If a woman dies intestate leaving issue, her property will pass, subject to the rights of her surviving spouse, to her mother and father if any. 8. An executor is a male appointed by the court to administer the estate of an intestate decedent. 9. When a person dies testate, having named an executor who begins to settle the estate but dies before its completion, the court will appoint an administrator de bonis non cum testamento annexo. 10. When a person dies intestate and the court appoints someone to settle the estate and that person dies before the job is finished, the court will appoint an administrator de bonis non. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. The first clause of a will in which the testator sets forth his name and domicile and states that he revokes all previous wills and codicils made by him is called the a. residuary clause. b. testimonium clause. c. attestation clause. d. exordium or publication clause. 12. The clause in a will beginning "In Witness Whereof" is called the a. residuary clause. b. testimonium clause. c. attestation clause. d. exordium clause. 13. When a testatrix leaves her property in equal shares to her "issue per stirpes" and is survived by child A, child B, and grandchildren D, E, and F who are the children of the testatrix's deceased child C, grandchild F will inherit. a. none of the estate. b. 1/3 of the estate. c. 1/5 of the estate. d. 1/9 of the estate. 14. An administrator who is appointed by the court to handle the affairs of a decedent in a foreign state is called a(n) a. public administrator. b. special administrator. c. ancillary administrator. d. voluntary administrator. 15. A no-contest clause in a will is also called a(n) a. publication clause. b. exordium clause. c. in terrorem clause. d. dispositive clause. 16. Under most state laws today, adopted children a. inherit from and through their natural parents. b. inherit from and through their adoptive parents. c. inherit from and through both their natural and adoptive parents. d. do not inherit from and through their parents. 17. When property reverts to the state, it is said to a. escheat. b. lapse. c. adeem. d. vest. 18. If a woman dies intestate leaving no issue and no mother or father, her property will pass, subject to the rights of the surviving spouse to a. her first cousins. b. her nieces and nephews. c. the state. d. her brothers and sisters. 19. An administrator who is appointed by the court to handle the affairs of an estate for a limited time only such as when a business must be taken care of immediately is called a(n) a. public administrator. b. special administrator. c. ancillary administrator. d. voluntary administrator. 20. When a person dies testate and fails to name a personal representative, the person appointed by the court to do the job is called an a. administrator. b. administrator cum testamento annexo. c. administrator de bonis non. d. administrator de bonis non cum testamento annexo. ANSWERS Test 11: Chapters 24, 25, and 26 1. T 5. F 9. T 13. d 17. a 2. F 6. T 10. T 14. c 18. d 3. T 7. F 11. d 15. c 19. b 4. F 8. F 12. b 16. b 20. B Test 12: Chapters 27 and 28 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. When the final account is allowed by the court, an estate is settled. 2. If the decedent dies intestate, the executor named in the will or some other interested personal petitions the court for the allowance of the will and appointment as executor. 3. Before being appointed, the executor or administrator must file a bond with the court. 4. A certificate of appointment of the personal representative in a testate estate is known as letters of administration. 5. A waiting period from nine months to a year elapses after the appointment of a personal representative to give time for creditors to present their claims. 6. A testamentary trust comes into existence only on the death of the testator. 7. In a declaration of trust, the settlor conveys away the legal title to a trustee to hold for the benefit of either the settlor or the beneficiary. 8. When a trust is established, the legal title in a particular item is separated from the equitable title in the same property. 9. The advantage of a revocable living trust is that the income from the trust is not taxable to the settlor. 10. A resulting trust is imposed by law in order to avoid the unjust enrichment of one party at the expense of the other when the legal title to the property was obtained by fraud. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. One of the first tasks of the personal representative after being appointed is to file a. an inventory with the probate court. b. letters testamentary with the probate court. c. a first and final account with the probate court. d. an estate tax return. 12. A will may be contested on the following ground: a. the will was improperly executed. b. the testator was of unsound mind. c. the will's execution was obtained through the use of undue influence or fraud. d. all of the above. 13. A promise by the personal representative to pay an amount of money to the probate judge if the representative's duties are not faithfully performed is called a(n) a. covenant. b. surety. c. decree. d. bond. 14. The gross estate for tax purposes includes a. all property the decedent owned individually at death. b. all jointly owned property of the decedent. c. life insurance on the decedent's life. d. all of the above. 15. The usual amount of the bond is a. the value of the personal property in the estate. b. the value of the real property in the estate. c. twice the value of the personal property in the estate. d. the value of the real and personal property in the estate. 16. The trustee of a trust holds a. no title to the trust property. b. legal title to the trust property. c. equitable title to the trust property. d. beneficial title to the trust property. 17. The one who creates a trust is the a. beneficiary. b. settlor. c. trustee. d. cestui que trust. 18. The property held in trust is called the a. corpus. b. trust res. c . trust fund. d. all of the above. 19. A trust that comes about when a transfer of property is made to one person and the purchase price is paid by another is called a a. precatory trust. b. sprinkling trust. c. resulting trust. d. constructive trust. 20. An inter vivos trust is created by a. will and comes into existence only upon the death of the testator. b. the use of polite language. c. a person when he or she is alive. d. implication. ANSWERS Test 12: Chapters 27 and 28 1. T 5. T 9. F 13. d 17. b 2. F 6. T 10. F 14. d 18. d 3. T 7. F 11. a 15. c 19. c 4. F 8. T 12. d 16. b 20. C Test 13: Chapters 29, 30, and 31 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. Today, by statute, the words "and his heirs" are no longer required to be in a deed to create a fee simple estate. 2. A freehold estate is an estate in which the holder owns the land only for life. 3. When a person grants a life estate to another and retains the fee, he or she is said to have a remainder interest. 4. Under common law, the husband, in a tenancy by the entirety, had the exclusive right to possession of the premises. 5. When two or more people own real property as tenants in common, each owner is entitled to the possession of his or her part of the premises only. 6. Real property may be owned severally—that is, by two or more persons. 7. When people die owning real estate separately, a deed is necessary to pass title to their heirs. 8. A purchaser of real property at a tax sales takes the property subject to the former owner's right to take the property back. 9. For title to pass to a surviving joint tenant, it is necessary to probate the estate of a deceased joint tenant. 10. An attachment has the effect of bringing property under the jurisdiction of the court as security for a debt. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. The largest estate that one can own in land is a(n) a. determinable fee. b. fee tail. c. fee simple. d. life estate. 12. Life tenants a. own legal title to the property during their lifetime. b. must pay the taxes on the property. c. are entitled to possession of the property and to any income from it. d. all of the above. 13. A kind of ownership given to a person and "the heirs of his body," is called a a. determinable fee. b. fee tail. c. fee simple. d. life estate. 14. The following is not one of the unities required for a joint tenancy: a. interest. b. possession. c. contribution. d. time. 15. The form of co-ownership of property in which a deceased owner's share passes to his or her heirs or devisees is a. tenancy in common. b. joint tenancy. c. tenancy by the entirety. d. none of the above. 16. Ada, Bob, and Carl own property as joint tenants. During the lifetime of all of them, Ada sells her interest in the property to Donna. Bob then dies and wills all of his property to Frank. Who are the owners of the property after Bob's death? a. Donna, Frank, and Carl. b. Ada, Frank, and Carl. c. Donna and Carl. d. Carl. 17. If A, a widower, dies leaving his single parcel of real estate in equal shares to his three children, unless otherwise stated in the will, the children will own the property as a. tenants in common. b. tenants by the entirety. c. joint tenants. d. tenants in partnership. 18. If A, B, C, and D own a parcel of real property as joint tenants and D sells his interest to X, the latter is a. a tenant in common with A, B, and C. b. a joint tenant with A, B, and C. c. a tenant by the entirety with A, B, and C. d. none of the above. 19. The adding together of periods of adverse possession is called: a. lapping. b. tacking. c. annexing. d. appending. 20. An increase of land caused by the slow action of water upon its borders is known as a. tacking. b. seisin. c. dereliction. d. accretion. ANSWERS Test 13: Chapters 29, 30, and 31 1. T 5. F 9. F 13. d 17. a 2. F 6. F 10. T 14. c 18. a 3. F 7. F 11. d 15. a 19. b 4. T 8. T 12. b 16. c 20. D Test 14: Chapters 32 and 33 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. A special warranty deed is more desirable than a general warranty deed for a grantee because it offers a grantee even more protection. 2. For a conveyance to be valid, a deed must be delivered to the grantee. 3. The habendum clause in a deed begins with the words "TO HAVE AND TO HOLD." 4. A special warranty deed protects against defects that arose before the grantor owned the property. 5. A quitclaim deed contains a warranty that title is good. 6. In ancient times, a mortgage was a dead pledge because the property owner gave up possession of the property until the debt was paid. 7. One who lends money and takes back a mortgage as security for a loan is a mortgagor. 8. When a mortgagee transfers an interest in a mortgage to another, it is known as a mortgage assignment. 9. A junior mortgagee's foreclosure is subject to the rights of the first mortgagee. Under the lien theory of mortgages, a mortgage is a conveyance of title by the mortgagor to the mortgagee. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. The most desirable form of a deed, which gives assurances that title is good, is a: a. bargain-and-sale deed. b. quitclaim deed. c. specialty warranty deed. d. general warranty deed. 12. A deed to real property in which the grantor transfers only his or her interest in the property and gives no warranties of title is a a. deed without covenants. b. fiduciary deed. c. quitclaim. d. all of the above. 13. A deed that conveys land itself, rather than people's interests in it, and requires consideration is a a. specialty warranty deed. b. bargain and sale deed. c. general warranty deed. d. quitclaim deed. 14. A mortgage with low fixed payments during the life of the loan, ending with one large final payment is a a. graduated-payment mortgage. b. variable-rate mortgage. c. flexible-rate mortgage. d. balloon mortgage. 15. A clause in a mortgage providing that the mortgage deed shall be void on payment of the obligation is the a. acceleration clause. b. defeasance clause. c. default clause. d. redemption clause. 16. A claim, lien, charge, or liability attached to and binding real property is a(n) a. covenant. b. tenement. c. encumbrance. d. warrant. 17. A promise or assurance is a(n) a. encumbrance. b. heirloom. c. covenant. d. tenement. 18. In addition to signing a mortgage deed when a secured loan is made, the borrower also signs a(n) a. junior mortgage. b. promissory note. c. lien instrument. d. mortgage assumption. 19. The right of a mortgagor to redeem the property any time before the completion of a foreclosure proceeding by paying the amount of the debt, interest, and costs is the a. right of contribution. b. right of redemption. c. equity of redemption. d. power of sale. 20. A clause in a mortgage or note that causes the entire balance of the loan to become due when a default occurs is a(n) a. acceleration clause. b. default clause. c. redemption clause. d. power of sale clause. ANSWERS Test 14: Chapters 32 and 33 1. T 5. F 9. F 13. b 17. c 2. F 6. F 10. T 14. d 18. b 3. F 7. F 11. c 15. b 19. c 4. T 8. T 12. d 16. c 20. A Test 15: Chapters 34 and 35 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. Only lawyers and title examiners may examine papers that are recorded at the registry of deeds. 2. Constructive notice has the same legal effect as actual notice. 3. With exceptions in some states, an earlier-recorded instrument takes priority over a later-recorded instrument unless the person recording first has actual notice of an earlier instrument that was not recorded. 4. The customary starting point for a title search is one hundred years back to a point when a warranty deed was recorded. 5. The Torrens system is a system of land registration that establishes clear title to land. 6. Crops that are produced annually by labor and industry are considered to be real property. 7. A small pond is owned by the state, with private ownership extended to the lower water mark. 8. Rain water on the surface of the earth may not be artificially channeled by a property owner in such a way that it damages the property of an abutter. 9. Modern laws give property owners the right to use only that amount of water under their land that is reasonably necessary to satisfy their needs. 10. Abutters who excavate at their boundary line have no duty to provide support to their neighbor's land to prevent it from caving in. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. The most important part of the title search is the a. abstract. b. report. c. title reference. d. rundown. 12. In tracing back to the starting point of a title search, if a title reference is not given, one must look in the a. record book. b. grantor index. c. grantee index. d. abstract. 13. A book that lists by year, in alphabetical order, the names of anyone who is named in an instrument as conveying away an interest in real property is the a. grantee index. b. grantor index. c. record owner index. d. abstract index. 14. A short sentence in a deed telling from whom the grantor in that deed got the property is called a(n) a title reference. b. abstract of title. c. rundown. d. title search. 15. When an owner inherits property, a. a deed to that owner will be on record. b. a notation to that effect will be found in the grantor index. c. a notation to that effect will be found in the grantee index. d. no deed to the owner will be on record. 16. A stream that ebbs and flows with the tide or is capable of being navigated by commercial vessels is a a. great stream. b. littoral stream. c. riparian stream. d. none of the above. 17. The navigable airspace is the space a. above 1,000 feet over water and unpopulated areas, and above 500 feet over populated areas. b. up to the periphery of the universe. c. above 1,000 feet over populated areas, and above 500 feet over water and unpopulated areas. d. that is as high as one can effectively use. 18. A landowner's right to have land supported by the soil beneath is known as the right of a. lateral support. b. littoral support. c. subjacent support. d. subterranean support. 19. A principle of law allowing the first person who puts water to beneficial use the right to do so even though the flow of water is cut off to other riparian owners is the a. navigable rights doctrine. b. prior appropriation doctrine. c. riparian rights doctrine. d. beneficial use doctrine. 20. People whose property abuts the ocean or large lake are called a. abutters. b. littoral owners. c. riparian owners. d. subjacent owners. ANSWERS Test 15: Chapters 34 and 35 1. F 5. T 9. T 13. b 17. c 2. T 6. F 10. F 14. a 18. c 3. T 7. F 11. d 15. d 19. b 4. F 8. T 12. c 16. d 20. B Test 16: Chapters 36 and 37 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. Easements cannot be given for the right to use the airspace over another's land for electric wires. 2. The person on whom an easement is imposed is called the dominant tenement. 3. A nonconforming use cannot be enlarged or changed. 4. To obtain an easement by prescription, someone must use the property of another secretly for the statutory period. 5. A restrictive covenant in a deed will be binding on all future transferees if it is appurtenant to be grantor's remaining land and provides some benefit to that remaining land. 6. The terms lessor and lessee are broad terms that refer to the parties under a tenancy at will as well as the parties under a lease. 7. A tenancy for years can be for any period so long as it is ascertained. 8. Quiet enjoyment means that a tenant has the right to possession of the property and to be undisturbed in that possession. 9. A lease differs from a license in that a license conveys an interest in land and transfers possession. 10. A retaliatory eviction occurs when the landlord deprives the tenant of heat, light, power, or some other service called for under the lease. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. The right to use the land of another for a particular purpose is a(n) a. nonconforming use. b. variance. c. easement. d. profit a prendre. 12. An easement that is not attached to any parcel of land but is merely a personal right to use the land of another is a(n) a. easement by necessity. b. easement by prescription. c. easement in gross. d. easement appurtenant. 13. An easement created by long-continued use of another's property openly, notoriously, continuously, and adversely is a(n) a. easement by necessity. b. easement by prescription. c. easement in gross. d. easement appurtenant. 14. Land that bears the burden of a restriction or easement is a(n) a. servient estate. b. restrictive estate. c. dominant estate. d. appurtenant estate. 15. An exception to the zoning regulation is a(n) a. reservation. b. restriction. c. nonconforming use. d. variance. 16. A tenancy for a definite or fixed period of time no matter how long or how short is called a tenancy a. at will. b. at sufferance. c. for years. d. from year to year. 17. A tenancy for an indefinite period of time is a tenancy a. at will. b. at sufferance. c. for years. d. from year to year. 18. If a negligently caused injury takes place in a common area of an apartment building, a. the landlord is generally responsible. b. the tenant is generally responsible. c. both the landlord and the tenant are responsible. d. neither the landlord nor the tenant are responsible. 19. The notice requirement to evict a tenant at sufferance is a. thirty days. b. thirty days from the next rent day. c. fourteen days. d. none. 20. When real property is rented for dwelling purposes, there is an implied warranty that the premises are a. licensed. b. habitable. c. heated. d. all of the above. ANSWERS Test 16: Chapters 36 and 37 1. F 5. T 9. F 13. b 17. a 2. F 6. F 10. F 14. c 18. a 3. T 7. T 11. c 15. d 19. d 4. F 8. T 12. c 16. c 20. B Test 17: Chapters 38 and 39 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. The doctrine of comity applies to the acceptance of judicial proceedings of foreign counties. 2. A set formula exists for determining the amount of alimony that may be awarded. 3. An annulment requires a valid marriage to begin with. 4. To obtain a divorce for desertion, the abandoned spouse must not consent to the spouse's absence. 5. Men and women who live together without being married have many rights beyond those given to single persons. 6. Common law marriages are allowed in all jurisdictions in the United States. 7. To be upheld by the court, a prenuptial contract must be fair and reasonable, and the parties must fully disclose their assets to each other. 8. In a divorce action, jurisdiction is based on the residence of the plaintiff. 9. A child's wishes are not considered in determining who shall have custody of the child. 10. The traditional defenses to divorce actions were based on the theory that a divorce is granted because one party was at fault, and the other was not. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. The incapacity of either party to consummate a marriage by sexual intercourse because of some physical infirmity or disarrangement is a. copulation. b. incompatibility. c. banns of matrimony. d. impotency. 12. The person charged with committing adultery with the defendant in a divorce action is the a. libelant. b. libelee. c. co-respondent. d. petitioner. 13. The voluntary sexual intercourse by a married person with someone other than a spouse or by any unmarried person with a married person is a. copulation. b. adultery. c. fornication. d. impotency. 14. A divorce that occurs when one spouse appears in a foreign jurisdiction, and the other spouse does not appear and fails to respond to the notice of divorce or service of process is a(n) a. bilateral foreign divorce. b. interlocutory foreign divorce. c. ex-parte foreign divorce. d. pendente lite foreign divorce. 15. Divorce or dissolution of marriage is a. a dissolution of marriage without regard to fault in every state. b. a judicial declaration that no valid marriage ever existed. c. the act of terminating a valid marriage by a court. d. the incapacity of either party to consummate a marriage by sexual intercourse because of some physical infirmity or disarrangement. 16. Conflicts in personalities and dispositions that render it impossible for the parties to continue to live together in a normal marital relationship are known as a. incompatibility. b. irreconcilable differences. c. irretrievable breakdown. d. all of the above. 17. The place of litigation is known as the a. domicile. b. residence. c. forum. d. jurisdiction. 18. The voluntary submission to the court's jurisdiction, either in person or by an agent is a. appearance. b. collusion. c. connivance. d. comity. 19. A place where a person actually lives is called a. forum. b. venue. c. domicile. d. residence. 20. The forgiveness of a matrimonial offense is a. collusion. b. condonation. c. connivance. d. comity. ANSWERS Test 17: Chapters 38 and 39 1. T 5. F 9. F 13. b 17. c 2. F 6. F 10. T 14. c 18. a 3. F 7. T 11. d 15. c 19. d 4. T 8. F 12. c 16. d 20. B Test 18: Chapter 40 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. Bearer paper may be negotiated by delivery alone. 2. A check is the most common kind of draft. 3. The person who is ordered to pay the money under an unaccepted draft must do so. 4. Order paper requires the indorsement of the payee to be negotiated. 5. A restrictive indorsement limits the liability of the indorser by such words as "without recourse." 6. Holders in due course are not subject to the personal defenses of others such as breach of contract. 7. A bill of exchange is another name for a promissory note. 8. An acceptance of a draft is accomplished by writing "accepted" across the face of the instrument and signing it. 9. A person who draws a draft is a maker. 10. A certified check is the same as an accepted draft. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. The transfer of an instrument in such form that the transferee becomes a holder is a(n) a. assignment. b. delivery. c. negotiation. d. indorsement. 12. A person who is in possession of a negotiable instrument that is issued or indorsed to that person's order or to bearer is a(n) a. bearer. b. holder. c. holder in due course. d. indorser. 13. An indorsement containing the words "for deposit only" is a a. blank indorsement. b. special indorsement. c. restrictive indorsement. d. qualified indorsement. 14. The person making the promise to pay money on a note is called the a. payee. b. drawer. c. drawee. d. maker. 15. An indorsement that consists of the signature alone written on the instrument is a: a. blank indorsement. b. special indorsement. c. restrictive indorsement. d. qualified indorsement. 16. The person to whose order a draft is drawn is known as the a. maker. b. drawer. c. drawee. d. payee. 17. An example of a real defense is a. breach of contract. b. fraud in the inducement. c. infancy. d. lack of failure of consideration. 18. A holder in due course is a holder who takes an instrument a. for value. b. in good faith. c. without notice of defenses or that it is overdue or dishonored. d. all of the above. 19. Another name for a universal defense is a. personal defense. b. real defense. c. worldwide defense. d. limited defense. 20. Order paper can be negotiated by a. indorsement and delivery. b. indorsement only. c. delivery only. d. acceptance only. ANSWERS Test 18: Chapter 40 1. T 5. F 9. F 13. c 17. c 2. T 6. T 10. T 14. d 18. d 3. F 7. F 11. c 15. a 19. b 4. T 8. T 12. b 16. d 20. a Test 19: Chapters 41 and 42 Part 1: True or False—Indicate whether each of the following statements is true or false. 1. An order for relief automatically takes place when an involuntary bankruptcy petition is filed. 2. A sole proprietorship is the most formal type of business organization. 3. Preferred stockholders usually have no voting rights. 4. A partnership may only be created by a written agreement. 5. Limited partners are liable for the debts or obligations of the partnership. 6. Stockholders of a corporation are not personally responsible for the debts and liabilities of the corporation and can lose only the amount they paid for the stock. 7. An order for relief brings into play an automatic suspension preventing further efforts by creditors to collect their debts. 8. Bankruptcy proceedings end with the filing of a petition with the federal court. 9. A trustee in bankruptcy has the power, among other things, to invalidate preferences. 10. The court notifies creditors that they must file, within 90 days after the first meeting, a proof of claim. Part 2: Multiple Choice—Select the letter of the word or phrase that best completes each statement. 11. People who are elected by stockholders to manage a corporation are a. officers. b. shareholders. c. incorporators. d. directors. 12. A corporation that is established in strict compliance with the law is a(n) a. ultra vires corporation. b. eleemosynary corporation. c. de jure corporation. d. de facto corporation. 13. Profits distributed to the stockholders of a corporation are called a. preferred stock. b. interest. c. dividends. d. capital gains. 14. A relationship in which two or more people combine their labor or property for a single business undertaking is a(n) a. co-venture. b. joint venture. c. syndicate. d. all of the above. 15. A partnership formed by two or more persons having as members one or more general partners and one or more limited partners is a(n) a. general partnership. b. limited partnership. c. ostensible partnership. d. dormant partnership. 16. A proceeding designed to liquidate a debtor's property, pay off his or her creditors, and discharge the debtor from most debt is a a. Chapter 7 bankruptcy. b. Chapter 11 bankruptcy. c. Chapter 12 bankruptcy. d. Chapter 13 bankruptcy. 17. A method for businesses to reorganize their financial affairs, keep their assets, and remain in business is a a. Chapter 7 bankruptcy. b. Chapter 11 bankruptcy. c. Chapter 12 bankruptcy. d. Chapter 13 bankruptcy. 18. Transfers made by a debtor to creditors, before a bankruptcy proceeding, enabling them to receive a greater percentage of their claim than they would have otherwise received are referred to as a. fraudulent transfers. b. exemptions. c. preferences. d. adjustments of debts. 19. The acceptance of a case by a bankruptcy court is referred to as a(n) a. involuntary bankruptcy. b. automatic suspension. c. proof of clam. d. order for relief. 20. A person appointed by a bankruptcy court to hold the debtor's assets for the benefit of creditors is the a. debtor's attorney. b. creditor's attorney. c. trustee in bankruptcy. d. secured creditor. ANSWERS Test 19: Chapters 41 and 42 1. F 5. F 9. T 13. c 17. b 2. F 6. T 10. T 14. d 18. c 3. T 7. T 11. d 15. b 19. d 4. F 8. F 12. c 16. a 20. c