A whistleblower bounty program allows a person who provides information that leads
to a successful SEC action in which more than $1 million is recovered to receive 65
percent to 80 percent of the money collected.
Chapter 7 discharge is granted quite soon after the bankruptcy petition is filed.
The parties who sign the articles of incorporation are called promoters.
A virtual courthouse refers to a court that either mandates or permits the electronic
filing of pleadings, briefs, and other documents related to a lawsuit.
The intentional confinement of another person without justification and without that
person’s consent is defined as false imprisonment.
Individuals cannot register personalized domain names for their websites.
If a contract authorizes goods to be delivered without requiring the seller to move them
and a document of title is needed for delivery, the title passes from a seller to a buyer at
the time of contracting.
A check is an order from a drawer to a drawee to pay the instrument to a payee
according to its terms.
The courts generally encourage forum shopping.
A legally binding signature in cyberspace should be created using only those
technologies as defined by the E-SIGN Act.
In case of a condition precedent, if the event does not occur, no duty to perform the
contract arises.
Both personal property and real property can be bailed.
An implied-in-law contract is one based on the conduct of the parties.
A breach of contract is said to have occurred only if both the parties do not perform
their duties as specified in the contract.
Under the exercise of the right to dispose of goods, any profit made on the resale of the
goods reverts to the original lessee if the lessor disposes of the goods at a higher price
than the lessee contracted to pay.
A decision of the FTC cannot be appealed to federal court.
Typically, goods that are sent via carrier are considered to be sent in pursuant to a
shipment or a destination contract.
The LLC law of the state governs the operation of an LLC in that state.
According to the doctrine of stare decisis, state courts are bound by the legal precedent
established by the courts of another state.
A consumer expectation test requires a showing that the product is more dangerous than
the ordinary consumer would expect.
The choice of forum clause is a clause that designates the law to be applied by the court
or arbitrator in deciding a case.
Under the Toxic Substances Control Act, pesticides must be registered with the EPA
before they can be sold.
The Analytical School of jurisprudence believes that law is shaped by logic.
Insurgent directors are the current directors of a corporation.
For a warranty to qualify as a full warranty, the warrantor must guarantee that a
defective product will be repaired or replaced free during the warranty period.
Third parties usually cannot sue accountants for breach of contract.
Plurality decisions by Supreme Court justices are precedent for later cases.
Commingle of personal and corporate assets is allowed under the alter ego doctrine.
The UCC does not apply the parol evidence rule for lease contracts.
The Restatement (Second) of Contracts eliminates the distinction between conditions
precedent and conditions subsequent.
A bank in the collection process that is not the depository bank or the payer bank is
called an intermediary bank.
When an anticipatory breach of a contract occurs, the nonbreaching party must wait
until the performance is due to sue the repudiating party.
State courts have exclusive jurisdiction to hear cases involving patent and copyright
cases.
The highly compensated employee exemption applies to employees who are paid total
annual compensation of $50,000 or more.
The Sarbanes-Oxley Act requires a public company to disclose whether it has adopted a
code of ethics for senior financial officers.
A subsidiary corporation operating in a foreign country is organized under the laws of
the foreign country.
A government or political party that strictly derives its ethics and laws based on a
specific religious book is an example of ________.
A) utilitarianism
B) ethical fundamentalism
C) ethical relativism
D) Kantian ethics
A ________ is a three-party instrument that is an unconditional written order by one
party that orders a second party to pay money to a third party.
A) draft
B) promissory note
C) certificate of deposit
D) lease
Which of the following best defines parol evidence rule?
A) It states that contracts for the sale of goods priced at $500 or more must be in
writing to be enforceable.
B) It requires that all contracts should be written, whatever their form, and be signed by
the party against whom enforcement is sought.
C) It states that any oral or written words outside of the four corners of a written
contract are inadmissible in court regarding a dispute over a contract.
D) It requires that a contract entered into by parties prior to marriage that defines their
ownership rights in each other’s property must be in writing.
Which of the following is true of the per se rule in restraint of trade?
A) It does not permit any defenses and justifications to save the restraint of trade.
B) It applies only to restraints that are found to be unreasonable with certain evidentiary
standards being met.
C) It applies to restraints that are based primarily on the firm’s market share and power.
D) It requires a balancing of the positive and negative effects of the challenged
restraint.
What would be an example of codified law in the United States?
A) judicial rulings
B) federal statutes
C) treaties
D) executive orders
Which of the following is true of a subsidiary of a multinational corporation present in a
foreign country?
A) The subsidiary corporation is organized under the laws of the home country where
the corporation is located.
B) There is a liability shield between the parent company and the subsidiary.
C) The parent company is liable for torts committed by the subsidiary.
D) The subsidiary corporation along with its parent corporation is considered a single
legal entity.
States usually require employers to purchase ________ from private insurance
companies or state funds to cover workers’ compensation claims.
A) employee insurance
B) relief fund insurance
C) provident fund insurance
D) workers’ compensation insurance
An estate where the tenant has a right to possess the real property but does not own title
to the property is called ________.
A) free simple absolute estate
B) gifted estate
C) nonfreehold estate
D) easement estate
Which of the following opinions would an auditor render about a company that has
materially misstated certain items on its financial statements?
A) an unqualified opinion
B) an adverse opinion
C) a qualified opinion
D) a disclaimer of opinion
The two tests the U.S. Supreme Court has developed for determining the lawfulness of
a restraint under Section 1 of the Sherman Act are the rule of reason and the ________.
A) Noerr doctrine
B) per se rule
C) nolo contendere rule
D) Colgate doctrine
A party to whom a tenant transfers all of his or her rights under a lease is known as a(n)
________.
A) lessee
B) assignee
C) consignee
D) licensee
Property is considered ________ property when its owner negligently, carelessly, or
inadvertently leaves it somewhere.
A) lost
B) real
C) vanished
D) mislaid
Which of the following statements is true about a counteroffer?
A) An offeree that makes the counteroffer is still considered the offeree.
B) A counteroffer terminates the existing offer.
C) A counteroffer can only be made by the offeror.
D) A counteroffer need not be communicated to the offeror.
Usually, the ________ is the income beneficiary, who receives income from a living
trust during the trustor’s lifetime.
A) witness
B) grantor
C) attorney
D) designated beneficiary
Which of the following statements is true about how courts address equal protection
cases?
A) If a law treats different groups differently, the court determines whether the
difference in treatment is justified using one of three different levels of scrutiny.
B) If a law treats different groups differently, it will be acceptable so long as there is
adequate notice to the persons affected.
C) Laws that affect persons differently based on race, gender, or age will be invalidated,
while laws that affect persons differently based on other factors will be deemed
acceptable.
D) If a law treats a particular group more favorably than others, it will be acceptable,
but if a law treats a particular group less favorably than others, it will be invalidated.
A member’s distributional interest in an LLC is ________ and may be transferred in
whole or in part.
A) state property
B) the LLC’s property
C) personal property
D) federal property
The revocation of an offer is effective when it is ________.
A) dispatched by the offeree
B) dispatched by the offeror
C) received by the offeree
D) received by the offeror
A ________ of a manager-managed LLC owes no fiduciary duty of loyalty or care to
the LLC or its other members and is treated equally to a shareholder in a corporation.
A) newly-appointed manager
B) nonmember manager
C) manager member
D) nonmanager member
A ________ is a mark that confirms that a seller of a product or service has met certain
requirements and standards established by the owner of the mark.
A) trademark
B) certification mark
C) wordmark
D) hallmark
A ________ is a document that is issued by a bank on behalf of a buyer who purchases
goods on credit from a seller that guarantees that if the buyer does not pay for the
goods, then the bank will pay the seller.
A) remittance advice
B) certified check
C) cashier’s check
D) letter of credit
________ occurs if two or more persons commingle fungible goods.
A) Confusion
B) Accession
C) Bailment
D) Easement
Bill is trying to sell his house in Oklahoma City to George who lives in Arkansas. They
have a dispute over the terms of the contract and Bill decides to sue George. Which of
the following statements is true in this situation?
A) The Arkansas state court will hear this case as it has in personam jurisdiction over
George.
B) The Arkansas state court has in rem jurisdiction to hear this case.
C) The Oklahoma state court has in rem jurisdiction to hear this case.
D) The Oklahoma state court does not have jurisdiction to hear this case as the
defendant is from another state.
________ refers to the document a plaintiff files with the court that serves on the
defendant to initiate a lawsuit.
A) Complaint
B) Order
C) Appeal
D) Rejoinder
A(n) ________ involves the seller entrusting possession of goods to a buyer on a trial
basis.
A) destination contract
B) option contract
C) finance lease
D) conditional sale
The ________ states that the intent to enter into a contract is judged by the reasonable
person standard and not by the subjective intent of the parties.
A) objective theory of contracts
B) Restatement (Second) of Contracts
C) Restatement of the Law of Contracts
D) common law of contracts
Which of the following is true of bankruptcy laws in the United States?
A) The U.S. Securities and Exchange Commission has the power to establish uniform
bankruptcy laws.
B) The bankruptcy law in the United States differs from state to state.
C) The original federal Bankruptcy Act was enacted in 1878.
D) The states have the right to amend bankruptcy laws whenever they want.
________ prohibits unions from engaging in unfair labor practices that interfere with a
union election.
A) The Wagner Act
B) Section 7 of the NLRA
C) Section 8(a) of the NLRA
D) Section 8(b) of the NLRA
In which of the following situations would the effect of illegality be an exception?
A) when both parties of an illegal contract execute their agreements
B) when both parties of an illegal contract are considered in pari delicto
C) when a party is justifiably ignorant of the law or fact that made the contract illegal
D) when a party completes his act of an illegal contract but has not received
consideration
A seller’s opportunity to repair or replace defective or nonconforming goods is termed
as ________.
A) right to cure
B) right to inspect
C) right to cover
D) right to cancel a contract
A(n) ________ is submitted along with the registration statement to the SEC, and also
used as a selling tool to help prospective investors evaluate the financial risk of an
investment.
A) organization document
B) final prospectus
C) preliminary prospectus
D) operation agreement
Alimony that is ordered by the court to be paid by one divorcing spouse to the other
divorcing spouse for a limited period of time is known as ________.
A) rehabilitation alimony
B) lifetime alimony
C) life estate
D) intestacy allowance
Which of the following is one of the provisions of Article 4 of the Uniform Commercial
Code?
A) establishing the requirements for negotiable instruments, such as checks
B) establishing the rules and principles that regulate bank deposit procedures for
checking accounts offered by commercial banks
C) stipulating the rules that regulate the creation and collection of and liability for wire
transfers
D) reviewing and revising guidelines for ownership of securities by investors
Discuss the provisions under the National Labor Relations Act (NLRA) that prohibit
employers and labor unions from engaging in unfair labor practices.
Intellectual property falls into a category of property known as ________ property.
A) moveable
B) real
C) tangible
D) intangible
Which of the following is true of third-party beneficiaries?
A) A creditor beneficiary is considered an unintended beneficiary.
B) An intended third-party beneficiary cannot enforce the contract against the promisor.
C) An incidental beneficiary cannot sue under other people’s contracts.
D) An incidental beneficiary is a third party who is benefitted intentionally.
Discuss the methods of transferring checks.
Compare and contrast the two rules developed by the U.S. Supreme Court for
determining the lawfulness of a restraint under Section 1 of the Sherman Act.
Analyze derivative lawsuits and their purpose.
When does a doctrine of abatement apply to a will? Explain with examples.
Discuss the effects of liquidated damage on contracts.
Can a risk of loss pass from a seller to a buyer under a sale on approval contract? If so,
how?
What is parol evidence? Discuss the parol evidence rule and its exceptions.
State the requirements for obtaining a patent and justify each requirement with an
example.
Elaborate on the reason for the existence of the doctrine of proximate cause.
How do elected unions use union security agreements to attain maximum power?
Examine, with an example, the modification in the perfect tender rule when applied to
installment contracts.
How and why does the Clean Water Act regulate the discharge of heated water or
materials into the nation’s waterways?
Analyze how facts pertaining to a case are uncovered in the process of discovery.
Compare and contrast contributory negligence and comparative negligence.
How is a revocation similar to a counteroffer? Explain both.
Examine the concept of reverse engineering with regard to trade secrets and
differentiate it from misappropriation.