ALA Legal Principles and Foundations 3 — Questions and Answers
Question 1: What is the primary purpose of a statute of limitations in civil law?
- To limit the monetary damages recoverable
- To restrict the number of claims a party may file
- To set a deadline by which a lawsuit must be filed (Correct answer)
- To cap attorney fees in litigation
Correct answer: To set a deadline by which a lawsuit must be filed
A statute of limitations establishes the maximum time period after an event within which a party must file a legal claim.
Question 2: Which branch of U.S. government has the authority to declare laws unconstitutional?
- Executive branch
- Legislative branch
- Judicial branch (Correct answer)
- Administrative agencies
Correct answer: Judicial branch
Through the power of judicial review established in Marbury v. Madison (1803), the judicial branch can strike down laws that violate the Constitution.
Question 3: In agency law, which term describes an agent's authority that a principal expressly grants through words or writing?
- Implied authority
- Apparent authority
- Express authority (Correct answer)
- Inherent authority
Correct answer: Express authority
Express authority is explicitly granted by the principal to the agent, either orally or in writing.
Question 4: What does the legal term 'tortfeasor' refer to?
- A judge who commits an error at trial
- A party who commits a tort (Correct answer)
- An expert witness in a civil case
- A mediator in a dispute
Correct answer: A party who commits a tort
A tortfeasor is a person or entity that commits a tort, making them potentially liable for civil damages.
Question 5: Under the Uniform Commercial Code (UCC), Article 2 primarily governs:
- Secured transactions
- Negotiable instruments
- Sales of goods (Correct answer)
- Lease agreements
Correct answer: Sales of goods
UCC Article 2 governs the sale of goods (movable, tangible personal property), providing uniform rules across adopting states.
Question 6: Which legal doctrine allows a court to look beyond the corporate structure to hold shareholders personally liable for corporate debts?
- Business judgment rule
- Alter ego doctrine (piercing the corporate veil) (Correct answer)
- Respondeat superior
- Ultra vires doctrine
Correct answer: Alter ego doctrine (piercing the corporate veil)
Courts may pierce the corporate veil under the alter ego doctrine when the corporate form is used to perpetrate fraud or injustice.
Question 7: What distinguishes a void contract from a voidable contract?
- A void contract can be ratified; a voidable contract cannot
- A void contract has no legal effect from the start; a voidable contract is valid until rescinded by the injured party (Correct answer)
- A voidable contract involves illegal subject matter; a void contract does not
- A void contract requires court action to cancel; a voidable contract is automatically cancelled
Correct answer: A void contract has no legal effect from the start; a voidable contract is valid until rescinded by the injured party
A void contract is unenforceable from its inception (e.g., illegal purpose), while a voidable contract is enforceable unless the injured party chooses to rescind it.
ALA Legal Principles and Foundations 3
What is the primary purpose of a statute of limitations in civil law?