An order of the court that declares that a marriage did not exist is known as a(n)
________.
A) divorce
B) arraignment
C) abatement
D) annulment
Which of the following is a corporation’s defense against a hostile takeover?
A) proxy statement
B) poison pill
C) shareholder resolution
D) lien
Kimberley, a merchant-seller in Kansas, had an oral contract to sell goods to Jane, a
merchant-buyer in Memphis for $100,000. Two days after contracting, Kimberley sends
a sufficient written confirmation of the agreed-upon transaction to Jane. Jane, who has
reason to know the contents of the written confirmation, fails to object to the contents
of the confirmation immediately. Two weeks after receiving the written confirmation,
Jane receives a delivery of the goods from Kimberley. Jane immediately sends an
objection to the confirmation to Kimberley. Which of the following is true of the
contract between Kimberley and Jane?
A) The Statute of Frauds can be raised against the contract because a letter of objection
was sent to the offeror.
B) The offer is valid as the offeree knew the contents of the confirmation and did not
object within 10 days.
C) The contract is void as the offeror did not receive a letter of confirmation from the
offeree for delivery.
D) The Statute of Frauds can be raised because the offeree did not sign the contract.
Which of the following is true of the Nutrition Labeling and Education Act (NLEA)?
A) The NLEA is a state law and its implementation is not federally regulated.
B) The NLEA applies to packaged foods and other foods regulated by the Food and
Drug Administration.
C) The NLEA mandates compulsory labeling for all kinds of raw and processed food
with any exceptions.
D) The NLEA specifically eliminates the practice of providing point-of-purchase
nutrition information by sellers.
Which of the following is true of undue influence in entering into contracts?
A) Undue influence need not require the overcoming of the innocent party’s free will.
B) Undue influence is not grounds for prosecution, as the innocent party has complete
freedom to evaluate the terms of the contract.
C) A contract that is entered into because of undue influence is not voidable.
D) A fiduciary or confidential relationship must have existed between the parties for
undue influence to be proven.
________ is a doctrine that raises a presumption of negligence and switches the burden
to the defendant to prove that he or she was not negligent.
A) Res ipsa loquitur
B) Negligence per se
C) Doctrine of proximate cause
D) Doctrine of comparative negligence
Jenson and Thomas enter into a contract that involves Thomas paying Jenson $1,000 for
shoveling the snow from his driveway throughout winter. Jenson, who was paid before
work commenced, breached the contract on the very first day. He should refund $1,000
to Thomas as ________.
A) compensatory damages
B) restitution
C) liquidated damages
D) consequential damages
Nebula Crystals, a firm in New York that manufactures crystal figurines, was contracted
by Ruth from Florida to deliver a thousand such crystal figurines. The contract required
the firm to deliver and tender the goods alongside the vessel SS Dew Express at the
New York harbor. Which of the following shipment term expresses such conditions?
A) no-arrival, no-sale
B) Ex-ship
C) F.A.S. port of shipment
D) C.I.F.
Which of the following is true of exempt securities?
A) Only the federal government can issue exempt securities.
B) Once a security is exempt, it is exempt forever.
C) An exemption notice must be filed with the SEC every time the exempt security is
transferred.
D) Exempt securities cannot be traded publicly.
Which of the following is true of a deed of trust?
A) The legal right of the property is with the creditor until payment.
B) The legal rights to possession of real property lie with a trustee.
C) The trustor has full legal rights to possession of the real property.
D) The deed of trust is a two-party instrument.
Pursuant to obtaining a bank loan, Artcross, Inc. appointed William, an accountant, to
prepare audited financial statements. William was made aware of the use of the
financial statements. Upon inspection by the bank, the financial statements were found
to be negligently prepared. Which of the following would be true in this scenario?
A) According to the foreseeability standard, William is liable to the bank for negligence
only if he was aware that the financial statements were going to be used to obtain a
loan.
B) According to Section 552 of the Restatement (Second) of Torts, William is not liable
to the bank, as he did not know the identity of the third party.
C) William cannot be held liable for negligence if the foreseeability standard is applied.
D) William cannot be held liable for negligence if the Ultramares doctrine is applied.
________ is a restraint of trade in which competitors agree that each will serve only a
designated portion of the market.
A) Resale market price maintenance
B) Profit-sharing
C) Market sharing
D) Gainsharing
Indonesia, Vietnam, Thailand, and the Philippines are members of the ________.
A) Organization of the Petroleum Exporting Countries
B) Association of Southeast Asian Nations
C) Dominican RepublicCentral America Free Trade Agreement
D) North American Free Trade Agreement
Rienhardt Manufacturers contracts Shillingworth Mining to purchase quartz ores. Upon
inspection of a particular shipment, Rienhardt discovers that most of the ores are of
substantially lesser quality than the average quality standard of that grade.
Shillingworth Mining has breached the ________.
A) implied warranty of merchantability
B) implied warranty of fitness for human consumption
C) statute of limitations of strict liability
D) statute of repose of strict liability
Which of the following is a personal defense?
A) extreme duress
B) fraud in inception
C) forgery
D) breach of contract
Which of the following is enough to prove a violation of Section 10(b) and Rule 10b-5?
A) non-exemption status
B) scienter
C) aiding and abetting
D) negligent conduct
Which of the following is a difference between acceptance and revocation?
A) Revocation is valid only if the offeree receives it, while an offeree’s acceptance is
valid when dispatched.
B) Revocation can be done by the offeror or offeree, while an acceptance can only be
done by the offeree.
C) An acceptance must be received by the offeror to be valid, while a revocation need
not be received by the offeree.
D) A revocation can be made after acceptance, while an acceptance cannot be made
after revocation.
After the termination of a marriage, each spouse is ________.
A) free from a liability to pay back the debts incurred during the marriage
B) individually responsible for marital debts
C) personally liable for his or her premarital debts
D) liable for the debts incurred by the other spouse during his or her lifetime
A transfer of contractual duties by an obligor to another party for performance is called
a(n) ________.
A) accord
B) assignment
C) delegation
D) satisfaction
The unfair advantage theory applies to ________ mergers.
A) horizontal
B) market extension
C) conglomerate
D) vertical
A(n) ________ provides that certain job preferences will be given to members of
minority racial and ethnic groups, females, and other protected-class applicants when
making employment decisions.
A) retaliation plan
B) affirmative defense
C) affirmative action plan
D) reasonable accommodation plan
The ________ promotes the arbitration of disputes at the state level.
A) Uniform Arbitration Act
B) Federal Arbitration Act
C) Collaborative States Arbitration Act
D) Binding Arbitration Act
A ________ is a transfer of the right to the possession and use of named goods for a set
term in return for certain consideration.
A) trade
B) gift
C) lease
D) sale
The ________ Act establishes a uniform and comprehensive set of rules that govern the
creation, performance, and enforcement for computer information transactions.
A) CAN-SPAM
B) UCITA
C) ECPA
D) ACPA
According to the regulatory licensing statute, ________.
A) unlicensed persons can recover payment for services
B) only licensed persons can recover payment for services
C) persons breaching a revenue-raising statute cannot recover payment for services
D) all government-licensed persons have to pay an annual fee to renew their licenses
Which of the following statements is true about class actions?
A) A class will not be certified if there is not sufficient commonality among the
plaintiffs’ claims.
B) A class can be certified if the legal and factual claims of all of the parties are
different.
C) A class can only be certified by a federal court.
D) A class, once certified, cannot be published to its class members.
Which of the following is true of additional terms being added under the UCC?
A) They are considered to be counteroffers.
B) The contract is automatically terminated if both the parties are merchants.
C) It can be added into the contract without the consent of the offeror.
D) It can be added in a sale that involves one or both parties being a nonmerchant.
Termination of an agency by ________ is a situation where the parties to an agency
contract terminate their contract by mutual agreement or when a previously agreed
upon event occurs.
A) an act of the parties
B) an unusual change in circumstances
C) impossibility of performance
D) operation of law
Which of the following motions asserts that there are no factual disputes to be decided
by the jury, and that the judge can apply the proper law to the undisputed facts and
decide the case without a jury?
A) motion for summary judgment
B) motion for judgment on the pleadings
C) motion for a directed verdict
D) motion for judgment notwithstanding the verdict
A justice who does not agree with a decision can file a ________ opinion that sets forth
the reasons for his or her lack of agreement.
A) unanimous
B) plurality
C) concurring
D) dissenting
Which of the following statements is true of a personal articles floater?
A) The insured can insure specific body parts using this policy.
B) The coverage includes insurance of intangible properties.
C) The coverage does not include loss or damage cause during travel.
D) The coverage includes specific valuable items.
Which of the following is true about a promissory note?
A) It is always a three-party transaction.
B) It is a promise to pay.
C) The party who makes the promise is the lender.
D) The payee cannot transfer the note to a third party.
The holder of an instrument wants the instrument to be paid to a specific person, ensure
that the amount mentioned on the instrument is deposited in that person’s account. The
holder does not want to be liable to that person in the event that the instrument is not
paid. In this scenario, the holder should most likely execute a ________.
A) blank, qualified, restrictive indorsement
B) special, qualified, restrictive indorsement
C) special, qualified, unrestrictive indorsement
D) blank, qualified, unrestrictive indorsement
Which of the following has a fixed maturity date?
A) bonds
B) common stock
C) cumulative preferred stock
D) participating preferred stock