Question $1(0\mathrm{.}5$ points$)$

Richard owns Scholars Apartment House. His ownership rights include the right to sell or give away the property without restriction, as well as to use the property for whatever purpose he sees fit. His ownership interest is

Question $1$ options:

a$)$

the power of eminent domain.

b$)$

a fee simple absolute$.$

c$)$

the right to adverse possession.

d$)$

a life estate.

Question $2(0\mathrm{.}5$ points$)$

The lack or failure of consideration is a personal defense and can be used to avoid payment to an ordinary holder, an HDC$,$ and a holder through an HDC$.$

Question $2$ options:

True

False

Question $3(0\mathrm{.}5$ points$)$

Bedding Plus Inc. makes a pillow that Comfort Stuff sells to Demi. Bedding fails to exercise "due care," and Demi is injured by toxic material used as fill in the pillow. Comfort Stuff is most likely liable for

Question $3$ options:

a$)$

product misuse.

b$)$

negligence.

c$)$

none of the choices.

d$)$

misrepresentation.

Question $4(0\mathrm{.}5$ points$)$

Under the doctrine of strict liability, a defendant's liability depends on privity of contract.

Question $4$ options:

True

False

Question $5(0\mathrm{.}5$ points$)$

Saved

Rollover Funds perfects a security interest in Steel Mill Inc.$\text{'}$s equipment by filing. When Steel Mill finally pays the debt, the debtor is entitled to the filing of

Question $5$ options:

a$)$

a termination statement.

b$)$

an amendment.

c$)$

a confirmation request.

d$)$

none of the choices.

Question $6(0\mathrm{.}5$ points$)$

An implied warranty can arise as a result of a well$-$recognized trade custom that a court could infer the parties intended to apply to their contract.

Question $6$ options:

True

False

Question $7(0\mathrm{.}5$ points$)$

When the parties to a contract for a sale of goods do not specify a payment term, and the parties are unaware of the UCC's rules, those rules do not apply.

Question $7$ options:

True

False

Question $8(0\mathrm{.}5$ points$)$

If there is a presumption of abuse, the trustee must file a motion to dismiss a Chapter $7$ petition or explain why such a motion would not be appropriate.

Question $8$ options:

True

False

Question $9(0\mathrm{.}5$ points$)$

Edna is the payee of a bearer instrument$$a promissory note in the amount of $$10,000.$ Flem offers to irrigate Edna's ranch next week in exchange for the note. She agrees and delivers the note to Flem. Flem is

Question $9$ options:

a$)$

not an HDC$,$ because he did not yet give value for the instrument.

b$)$

not an HDC$,$ because he did not acquire the instrument in good faith.

c$)$

an HDC$,$ because he promised to perform services at a future date.

d$)$

an HDC$,$ because the transferor was the original payee on the note.

Question $10(0\mathrm{.}5$ points$)$

Cruisin' Autos, Inc., sells cars to consumers. To avoid liability for oral express warranties, each sales agreement should note that a car is sold

Question $10$ options:

a$)$

with no known defects.

b$)$

subject to warranties included in the written contract only.

c$)$

as is$.$

d$)$

in perfect condition.