The FDCPA requires a collector to give a debtor certain information about the debt:
A. within ten days of the collector’s first communication with the debtor.
B. within ten days of the debtor receiving the credit amount.
C. within five days of the collector’s first communication with the debtor.
D. within five days of the debtor receiving the credit amount.
Mr. Smith and Mr. Blue enter into a partnership at will in which each owns half of the
business. Mr. Blue decides to leave the partnership. What should Mr. Blue be paid for
leaving the business?
A. Mr. Blue should be paid half of the value of the business.
B. Mr. Blue should receive 15% of the value of the business for leaving agreement.
C. Mr. Blue receives 1/3 of the value of the business for leaving.
D. Mr. Blue receives nothing for his dissociation.
_____ means that the accused failed to perceive a substantial risk of harm that a
reasonable person would have perceived.
A. Duress
B. Recklessness
C. Exculpation
D. Negligence
Mike authorizes his agent, Ben to borrow a sum of $10,000 on his behalf from the
National Bank. Ben signs his name to a note without disclosing that the signature was
on behalf of Mike. Who is liable on the note?
A. Only Mike is liable.
B. National Bank is liable.
C. Both of them are liable.
D. Only Ben is liable.
Which of the following are frequently used to cure technical defects in the chain of title
to property?
A. Insurable deeds
B. Quitclaim deeds
C. General warranty deeds
D. Special warranty deeds
A holder in due course is subject to the defense of _____ if the maker of a note wrote it
under a threat of force.
A. fraudulent inducement
B. infancy
C. duress
D. breach of warranty
The perfection of a security interest by filing a financing statement:
A. serves to protect the secured party’s interest in the collateral against most creditors
who acquire a security interest in the same collateral after the filing.
B. is necessary to enable the secured party to enforce its security interest against the
debtor.
C. serves to give the public actual notice.
D. gives the secured party priority over all other parties who acquire an interest in the
collateral after the filing.
What is the legal status of an improperly dispatched acceptance that was sent by a
means of communication that was nonauthorized by the offeror?
A. It is valid but unenforceable.
B. It is invalid but enforceable.
C. It is effective when received.
D. It leads to an immediate revocation.
When is a corporation entitled to full First Amendment protection?
A. When it engages in artistic speech.
B. When it works for the public good.
C. When it aids in promoting federal power.
D. When it engages in political speech.
What was the original purpose of staggered terms?
A. To permit continuity of management.
B. To help insurgent shareholders transform the management of the corporation.
C. To help minority shareholders exercise cumulative voting power.
D. To make it easier for the corporation to remove existing directors.
A trade secret differs from a patent, in that, a trade secret:
A. grants a monopoly to the creator.
B. stimulates creative activity.
C. is guarded by the creator.
D. is nonpublic by definition.
If a third party deals with a person who appears to be the partner of another person, and
the third party is harmed, it may recover damages under:
A. the doctrine of purported partners.
B. the general law for joint ventures.
C. the doctrine of direct liability.
D. the doctrine of respondeat superior.
Under Chapter 13 of the Bankruptcy Act:
A. the petition may be voluntary or involuntary.
B. no debt extensions are permitted.
C. no plan may be approved if an unsecured creditor objects.
D. no trustee is appointed.
Initially, Section 8 of the Clayton Act prohibited any person from serving as a director
of two or more competing corporations (other than banks or common carriers) if each
corporation had capital, surplus, and undivided profits aggregating more than _____.
A. $1 million
B. $5 million
C. $10 million
D. $20 million
The Consumer Financial Protection Bureau (CFPB) was created by the:
A. Dodd-Frank Wall Street Reform and Consumer Protection Act.
B. Equal Credit Opportunity Act.
C. Fair Debt Collection Practices Act.
D. Fair and Accurate Credit Transactions Act.
The Securities Act of 1933 and the Securities Exchange Act of 1934 are what kind of
law?
A. Federal statutes
B. State statutes
C. Administrative rules
D. Common Law decisions
Which of the following allows parties to determine their rights and duties even though
their controversy has not advanced to the point where harm has occurred and legal
relief may be necessary?
A. Ejusdem generis
B. Standing to sue
C. Declaratory judgment
D. Precedents
Which of the following is true of the statute of frauds?
A. It prevents the use of oral evidence to contradict the terms of a written contract.
B. It applies to all contracts having consideration valued at $500 or more.
C. It requires the independent promise to pay the debt of another to be in writing.
D. It applies to all real estate leases.
Many corporation statutes, unlike the MBCA, state that the same person may not hold
the offices of _____ and _____.
A. president; treasurer
B. president; secretary
C. vice-president; secretary
D. vice-president; treasurer
Russell, 45, has been suffering from mental impairment for a long time. He signs a
contract to sell his villa for $1 million to Andre. When Russell’s wife Katie, who is also
his appointed (by the court) guardian, gets to know of the deal, she wants to ends the
contract. Which of the following statements is true?
A. Andre cannot claim the villa until he has paid for it.
B. Russell has the right to enter into such a contract.
C. Katie need not worry because the contract is void.
D. The court will give primary preference to Russell’s opinion.
Marjorie leaves her bag in the checkroom of a hotel which has an attendant. When she
returns a few hours later, she finds her bag missing, the attendant on another duty, and a
new sign outside the checkroom stating “Goods left at owner’s risk”. Which of the
following is true if Marjorie tries to recover damages from the hotel?
A. She will be unsuccessful because there was no bailment.
B. She will be unsuccessful because the sign clearly says that goods are not the hotel’s
responsibility.
C. She will be successful because the attendant did not inform her of the policy earlier.
D. She will be successful because guests can claim any damages from the hotel they are
staying in.
Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 was
enacted to regulate:
A. personal unsolicited calls.
B. personal e-mail messages.
C. commercial e-mail messages.
D. commercial unsolicited calls.
The sale of a partner’s transferable interest in a business entitles the buyer to what
rights?
A. Distributions, like profit, that the selling partner was entitled to.
B. The right to inspect the partnership’s accounting books.
C. The right to manage the partnership.
D. The right to represent the partnership in a legal proceeding.
Together, express and implied authority constitute _____.
A. fixed authority
B. actual authority
C. apparent authority
D. traditional authority
Repurchase of _____ shares by a corporation is involuntary on the shareholder’s part.
A. split
B. fractional
C. outstanding
D. preferred
Patent cases being litigated in the federal system are an example of:
A. concurrent jurisdiction.
B. original jurisdiction.
C. exclusive jurisdiction.
D. certiorari jurisdiction.
An ambiguous offer may be accepted in any manner that is _____ in light of the
circumstances.
A. stipulated
B. authorized
C. recognizable
D. reasonable
A copyright comes into existence upon the:
A. creation and fixing of a protected work.
B. creation of an idea.
C. creation of a protected work.
D. creation of a message.
What is the term for a publicly held corporation a raider attempts to take over through
tender offer?
A. The target
B. The enemy
C. The bylaw
D. The liquidation
As per the 1934 Act, Section 16(a) prohibits statutory insiders from disclosing their
ownership of their company’s securities for the first 10 days of ownership.
Under Chapter 7, a debtor is denied discharge of all debts when:
A. the debtor has transferred property in order to defraud creditors.
B. the debtor has unpaid tax liabilities.
C. the debtor has made a preferential transfer to a creditor.
D. the debtor has made a fraudulent transfer.
What is the usual UCC time limitation for claiming express and implied warranty after
the sale of a product?
A. 12 months
B. 2 years
C. 4 years
D. 5 years
A principal need not compensate his agent if:
A. there was no agreement on the amount of compensation the agent was to receive.
B. the agent has committed a breach of a fiduciary duty.
C. there is no market price for the agent’s services.
D. the agent is a special agent.