A power of attorney where a principal confers powers on an agent to act in specified
matters on the principal’s behalf is referred to as ________.
A) implied power of attorney
B) general power of attorney
C) limited power of attorney
D) special power of attorney
Which of the following is one of the provisions of the Electronic Funds Transfer Act
and Regulation E of the Federal Reserve Board?
A) A bank can send unsolicited EFTS debit cards to a consumer only if the cards are
valid for use.
B) If a customer notifies the issuing bank of a stolen or lost debit card within two days
of the loss, the customer’s liability is limited to a maximum of $500.
C) A bank must provide annual statements of electronic funds transfers to customers
who conduct such transactions in a given financial year.
D) Other than for a telephone transaction, a bank must provide a customer with a
written receipt of a transaction made through a computer terminal.
The Clean Water Act forbids the filling or dredging of navigable waters and qualified
wetlands unless a permit has been obtained from the ________.
A) Environmental Protection Agency
B) U.S. Army Corps of Engineers
C) Nuclear Regulatory Commission
D) Environmental Defense Center
The ________ exemption applies to employees compensated on a salary or fee basis
that perform work that is predominantly intellectual in character, who possess advanced
knowledge in a field of science, and whose advanced knowledge was acquired through
a prolonged course of specialized intellectual instruction.
A) administrative employee
B) executive
C) computer employee
D) learned professional
Which of the following is an example of a corporate officer?
A) an ombudsman
B) a treasurer
C) an outside director
D) a non-executive director
One of the fundamental requirements for a negotiable instrument is that it must be
________.
A) supplemented with interest upon payment
B) secured with collateral
C) a three-party instrument
D) written on an ordinary paper
The ________ guarantees workers unpaid time off from work for family and medical
emergencies and other specified situations.
A) FLSA
B) OSHA
C) FMLA
D) ERISA
An oral agreement to purchase a neighbor’s bicycle is a(n) ________ contract
A) voidable
B) void
C) express
D) implied
The ________ is a federal statute that prohibits price discrimination in the sale of goods
if certain requirements are met.
A) Robinson-Patman Act
B) Sherman Act
C) Celler-Kefauver Act
D) Hart-Scott-Rodino Antitrust Improvement Act
A shipment of nonconforming goods does not constitute an acceptance if the shipment
is offered only as a(n) ________.
A) accommodation
B) additional offer
C) consideration
D) open delivery
The ________, which was enacted in 1950, widened the scope of Section 7 of the
Clayton Act to include asset acquisitions.
A) Hart-Scott-Rodino Antitrust Improvement Act
B) Sherman Act
C) Celler-Kefauver Act
D) Robinson-Patman Act
A ________ is a cessation of work by union members in order to obtain economic
benefits or correct an unfair labor practice.
A) collective bargain
B) strike
C) crossover
D) persuasion
The ________ shareholders offer their own slate of proposed directors to replace the
current directors.
A) incumbent
B) inside
C) insurgent
D) outside
Section 11(a) of the Securities Act of 1933 holds accountants liable for omissions of
material facts in registration statements regardless of the accountant’s intentions.
A marketing campaign makes unsubstantiated claims for the product it is promoting.
Under ________, such advertisements would be considered false and deceptive.
A) the Consumer Leasing Act
B) the Nutrition Labeling and Education Act
C) Regulation Z
D) Section 5 of the FTC Act
Under the ________, if the creditor takes an adverse action, the creditor must provide
the applicant with a statement containing the specific reasons for the action.
A) Fair Debt Collection Practices Act
B) Equal Credit Opportunity Act
C) Fair Credit Billing Act
D) Fair Credit Reporting Act
The area franchisee is also called a ________.
A) joint venturer
B) limited partner
C) subfranchisor
D) strategic partner
Which of the following is true of shareholder voting agreements?
A) They are limited in duration.
B) They are specifically enforceable.
C) They are neither revocable nor irrevocable.
D) They are required to be filed with the corporation.
For a prenuptial agreement to be enforceable after the termination of a marriage,
________.
A) each party must make full disclosure of his or her assets and liabilities
B) both the spouses must represent themselves without an attorney
C) the distribution of assets must be unconscionable
D) the agreement must be created prior to the marriage, and not during its course
Which of the following is an instance of disparate-treatment discrimination?
A) An employer does not promote Kelly as she is about take maternity leave.
B) Ghalib, who is fluent in English, is not hired as a writer due to his Iraqi heritage.
C) An employer refuses to install a wooden ramp to accommodate Lin who is restricted
to a wheelchair.
D) A factory hires 22-year old Jerry over 46-year old Barry, citing age as the reason.
A ________ is a situation in which a person holds an interest in another person’s
property without actually owning any part of the property.
A) present possessory interest
B) future interest
C) reversion
D) nonpossessory interest
Which of the following is not a type of formal contract recognized by the Restatement
(Second) of Contracts?
A) negotiable instrument
B) letter of credit
C) lease
D) contract under seal
The ________ set out in a franchise agreement’such as the franchisor’s right to make
periodic inspections of the franchisee’s premises and operations”are intended to protect
the franchisor’s name and reputation.
A) training requirements
B) quality-control standards
C) quantity-control standards
D) total investment
Which of the following statements best represents the distinction between binding and
nonbinding arbitration?
A) Unlike nonbinding arbitration, binding arbitration takes place at a court, in the
presence of a judge.
B) Unlike binding arbitration, the decision and award of a nonbinding arbitration can be
appealed to the courts.
C) A nonbinding arbitration takes place at a court, in the presence of the jury.
D) A nonbinding arbitration implies that the arbitrator’s decision must be reinforced by
the courts.
Which of the following is true of specific intent crimes?
A) The perpetrator commits a crime without any prior intention.
B) The perpetrator does not know the actual result of the crime in advance.
C) The perpetrator commits an illegal act to achieve a desired result.
D) The perpetrator commits a minor violation that is generally punishable by fine.
Millie receives a parcel from her aunt in Indonesia. The delivery man asks her to sign
an authorization document to receive the parcel. Millie signs without reading the
document, as she is in a hurry. However, on the other side of the document are contract
terms that transfer all of Millie’s property to the delivery man. This is an instance of
________.
A) fraud in the inception
B) fraud in the inducement
C) fraud by concealment
D) misrepresentation of law
Registration statements usually become effective ________ after they are filed.
A) 20 business days
B) 15 business days
C) 90 business days
D) 10 business days
An innocent party may use the court system to sue for damages or to recover
consideration paid under an illegal contract when he or she ________.
A) withdrew from the contract immediately after the illegal act was performed
B) was as much at fault as any other party involved in the illegal contract
C) was justifiably aware of the law or fact that made the contract illegal
D) was induced to enter into an illegal contract by fraud, duress, or undue influence
Which of the following moral theories would closely follow the categorical imperative
“Do unto others as you would have them do unto you”?
A) Kantian ethics
B) moral relativism
C) utilitarianism
D) Rawls’s social justice theory
________ is a situation in which one party threatens to do a wrongful act unless the
other party enters into a contract.
A) Scienter
B) Duress
C) Battery
D) Assault
The ________ rule is a rule which states that for an acceptance to exist, the offeree
must accept the terms as stated in the offer.
A) mirror image
B) mailbox
C) shadow box
D) rejection-upon-dispatch
Fun Toons is a publisher of comic books. It grants the Daily Beacon, a newspaper, the
rights to use a few of their popular comic strips for the paper’s weekend edition for a
high fee. In this instance, the Daily Beacon is the ________.
A) grantee
B) licensee
C) licensor
D) grantor
Cliff Thomas, a cardiologist, emigrates from the United Kingdom to the United States.
Under which of the following visa categories can his wife live in the United States as
Mr. Thomas’ dependent?
A) H1
B) H4
C) H-1C
D) H-1B
The ________ imposes obligations on employers and providers of public transportation,
telecommunications, and public accommodations to accommodate physically
challenged individuals.
A) ADEA
B) OWBPA
C) ADA
D) FEPA
A(n) ________ can be obtained in writing from the other party if there is an indication
that a contract will be breached by that party.
A) adequate assurance of performance
B) installment contract
C) codicil
D) deed agreement