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Ambiguities in contracts are always interpreted in favor of the side that wrote the
contract, since they are the ones who know what the provision is supposed to mean.
a. True
b. False
Which of the following are remedies available to a successful plaintiff under Title VII?
a. Hiring, reinstatement, and back pay
b. Front pay, reasonable attorney fees
c. Compensatory and punitive damages
d. All of the above are remedies under Title VII
In purchasing life insurance, Kelsey concealed the fact that she has a muscular disease.
The insurance company can void the policy if the muscular disease is found to be a
material fact.
a. True
b. False
Miranda v. Arizona considered the intent requirement in an armed robbery case.
a. True
b. False
All the business forms listed below have limited liability EXCEPT the
a. limited liability company.
b. general partnership.
c. "S" corporation.
d. corporation.
Iris received a discharge under a Chapter 7 bankruptcy. She cannot receive another
discharge under Chapter 7 for at least
a. six years after the prior filing.
b. eight years after the prior filing.
c. ten years after the prior discharge.
d. She cannot file another Chapter 7, but could file a Chapter 11 or 13 bankruptcy.
If employees wish to organize a union, the employer is prohibited from distributing
written notices to employees stating it is opposed to union activity within the company.
a. True
b. False
Ralph is a professional football player. He signs a valid contract with the Miami
Dolphins. Later, he claims that he was also promised free use of the Dolphins private
jet, but this was not in the contract. What type of clause in his contract would prevent
him from flying away with this claim?
a. A complete agreement clause
b. A "no additional terms clause
c. An integration clause
d. A severability clause
An instrument is negotiable if it satisfies six standards. Which of the following is a
standard of negotiability?
a. The instrument can be oral provided there is proof beyond a reasonable doubt.
b. The instrument must be signed by the payee.
c. The instrument must be conditional.
d. The instrument must state a definite sum of money.
Under the doctrine of commercial impracticability, which situation would NOTexcuse
the seller's performance?
a. The seller forgot to include the cost of freight in a C&F contract.
b. The seller's source of supply is no longer available because of a governmental
embargo prohibiting an export from another country.
c. The seller cannot deliver because severe flooding wiped out three-fourths of the
state's produce.
d. The seller's workforce is out on an unexpected strike.
Felicity brought a lawsuit under Section 11 of the 1933 Act against Mojo Corp. What
will Felicity have to prove in order to prevail?
a. Only that she relied on the registration statement
b. That Mojo was negligent in preparing the registration statement
c. That there was a material misstatement or omission in the registration statement and
she lost money
d. That Mojo intentionally tried to deceive investors
An employer cannot request a consumer report on a potential employee without that
person's permission.
a. True
b. False
When signing a company check, an agent must clearly indicate that he or she is signing
on behalf of the company in order to be free of liability.
a. True
b. False
Bernie owes an undisputed amount to Wildes Heating & Air Conditioning. Which of the
following is true?
a. If Wildes agrees to accept less than the full amount as full payment, the agreement is
not binding.
b. The undisputed amount is also known as an unliquidated amount.
c. If the parties agree to settle for less than the full amount, their agreement is governed
by the ruling in Henches v. Taylor.
d. If Wildes agrees to accept less than the full amount, the agreement is only binding if
it is in writing and signed by Bernie.
Candy, Inc. signed an agreement with Sweet Plantation. Under the contract, Candy, Inc.
agreed to purchase all the sugar cane Sweet Plantation grew during the coming season
for $0.16 per pound. This contract will be unenforceable due to its vagueness.
a. True
b. False
Courts will not allow the rescission of a contract due to a unilateral mistake.
a. True
b. False
Nikki was an tax accountant with HBR Accounting. Nikki decided to do some tax
consulting in the evenings and on weekends. HBR is unaware of Nikki's consulting
work. Which statement is correct?
a. Nikki has not breached a fiduciary duty to HBR since her consulting is done after her
work for HBR.
b. Nikki has not breached a fiduciary duty to HBR since her behavior does not reflect
badly on the accounting firm.
c. Nikki has not breached a fiduciary duty to HBR since Nikki has a contractual
relationship with her clients, not her employer.
d. Nikki has breached a fiduciary duty to HBR since she is competing with HBR.
The Internet was started in the 1960s as a project to link military contractors and
universities. The World Wide Web was created as a subnetwork of the Internet.
a. True
b. False
If Valley Bridge contracts with Rainbow Painters to paint a bridge and the contract
requires that only Sherwin Williams paint be used, then Sherwin Williams, as third
party beneficiary will be able to enforce the contract against either Valley Bridge or
Rainbow Painters.
a. True
b. False
Dick offers to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the
offer, lightning strikes the car and it is totally destroyed. Which of the following is true?
a. Jane can still accept the offer and John must find a 1955 Thunderbird to sell.
b. The offer is terminated by law.
c. Dick can still revoke his offer so long as he does so before Jane accepts.
d. Jane can still accept the offer. She will be entitled to the insurance proceeds.
The term tender means to physically deliver the goods to the buyer.
a. True
b. False
A corporate charter is filled with
a. a state's Secretary of State office.
b. a state's Treasury and/or Revenue Division.
c. the United States Department of Commerce.
d. the Securities and Exchange Commission.
A jury decision in a civil case
a. must always be unanimous.
b. must be reached in the same day the case is heard.
c. depends on whether or not the parties have agreed to have their case decided by less
than a unanimous verdict.
d. is achieved by informal deliberations.
A buyer who is unable to obtain cover
a. will be limited to the remedy of incidental damages.
b. will be limited to the remedy of consequential damages.
c. will lose the money or goods invested in the breached contract.
d. may be allowed the remedy of specific performance.
There is a higher percentage of workers in labor unions now than at any other point in
history.
a. True
b. False
Donna defaulted on her loan owed to Second State Savings and Loan. The loan was
secured with Donna's car. Donna used the car for personal and family reasons. Which
statement is correct?
a. Second State may take Donna's car without a court order if this can be done without a
breach of the peace.
b. Second State may take Donna's car without a court order even if it means a breach of
the peace.
c. Second State may not take Donna's car because it is a consumer good.
d. Second State may not take Donna's car because perfection was automatic.
Legal requirements for a will depend on state law, but generally include all but which of
the following?
a. A writing
b. Signatures of at least three witnesses
c. The testators signature
d. Witnesses who will not inherit under the will
What is net neutrality?
a. the notion that federal government remain a neutral party in deciding privacy law
cases regarding the Internet
b. the principle that Internet service providers (ISPs) should not remain neutral in
determining how information should flow on the Internet
c. the notion that the First and Fourth Amendments should not be used in determining
citizens' privacy rights regarding the Internet.
d. the principle that all information which flows on the Internet must receive equal
treatment.
A salesclerk at Braybon's Department Store observed a customer remove a ring from a
display case and put it in her purse. In most states, Braybon's will be able to detain the
customer for suspicion of shoplifting.
a. True
b. False
Under the amended Securities Exchange Act of 1934, accountants are liable jointly and
severally whether or not they knew they were violating the law.
a. True
b. False
