A unilateral mistake occurs when only one party is mistaken about a material fact
regarding the subject matter of the contract.
The existence of an LLC begins when the articles of organization are delivered to the
office of the secretary of state.
In a fully disclosed agency, an agent is fully liable on the contract with the third party.
Nonconforming goods must be rejected within a reasonable time after their delivery for
a successful exercise of the right to reject nonconforming goods.
While conducting an audit, an auditor must verify information from third parties.
A registered agent is a person or corporation that is empowered to accept service of
process on behalf of a corporation.
Adopting rules that further the purpose of the federal securities statutes is a
responsibility of the Securities and Exchange Commission.
A nolo contendere plea involves the accused admitting guilt to all charges.
A shareholder’s only management duty is to vote on matters like the election of
directors and the approval of fundamental changes in the corporation.
For a bailment to be effective, the bailee must knowingly accept the personal property.
The First Amendment protects oral, written, and symbolic speech.
A seller’s “puffing” creates an express warranty.
The number of representatives to the U.S. House of Representatives is determined
according to the population of each state.
An agent is a person who is in possession of a negotiable instrument that is drawn,
issued, or indorsed to him or to his order, or to bearer, or in blank.
The 12th circuit court, located in Washington DC, is called the District of Columbia
circuit.
The living will should state which lifesaving measures the signor does and does not
want.
Foreign nationals employed in foreign countries by U.S.-controlled companies are
covered by Title VII.
A reply by a plaintiff to a cross-complaint can include affirmative defenses.
Violations are the least serious of crimes, and they are generally punishable by fines.
The UCC provides that a buyer must accept accommodation sent by the seller if the
goods under the contract are not available.
Unless otherwise agreed, indorsers are liable to each other in the order in which they
indorsed the instrument.
Mutual assent is not required for a contract to exist.
A court may resort to the application of equitable principles when an award of money
damages “at law” would not be the proper remedy.
Nonintent crimes are often imposed for reckless or grossly negligent conduct that
causes injury to another person.
There is no cap on the recovery of compensatory or punitive damages under Section
1981 of Title VII.
An area franchisee is also called a subfranchisor.
As of 2013, the federal minimum wage is set at $5 per hour.
Subjects that are severable from real estate may be classified as goods subject to Article
2 of the UCC.
Repurchased shares are commonly called treasury shares.
Juries do not preside over administrative proceedings.
The drawer of the check is the bank on which a check is drawn.
The right to recover the goods from the insolvent seller is often referred to as capture.
A state court administering judgment based on the precedent established by the
Supreme Court is an example of the ________ School of jurisprudential thought.
A) Command
B) Critical Legal Studies
C) Historical
D) Analytical
Disputes under contracts containing arbitration clauses ________.
A) are heard by a judge or a jury
B) cannot be appealed to the courts
C) are resolved in public forums
D) cannot involve federal or state laws
________ is a nonjudicial, private resolution of a contract dispute.
A) Arbitration
B) Reformation
C) Injunction
D) Rescission
Paul is an independent auditor who has been hired to audit Pattorna, Inc.’s financial
records. He finds that there is insufficient information about the financial records to
draw a conclusion about their accuracy. Which of the following would Paul issue?
A) an unqualified opinion
B) a qualified opinion
C) an adverse opinion
D) a disclaimer of opinion
Which of the following statements is true of the Genetic Information Nondiscrimination
Act (GINA)?
A) Inadvertent discovery of genetic information violates the act.
B) An employer may use genetic information when providing benefits.
C) Voluntary submission of genetic information to an employer violates the act.
D) Individuals have a right to pursue private lawsuits to seek hiring and reinstatement
damages.
The act of other interested parties joining as parties to an existing lawsuit is termed as
________.
A) intervention
B) consolidation
C) class action
D) arbitration
Most states that have adopted e-commerce and licensing statutes similar to the UCITA,
________.
A) will continue using the laws displaced by the enactment of the UCITA
B) will use the provisions of the UCITA that are preempted by the federal law
C) use UCITA as the basis for discussing state laws that affect licensing contracts
D) use UCITA to supplement the state laws
Which of the following is true of the equity doctrine?
A) Equity is resorted to when an award of money damages would not be the proper
remedy.
B) In an equitable action, the jury decides on the issue.
C) An equitable action could be tried with a judge or a jury.
D) The doctrine of equity cannot be applied in contract cases.
When is the course of performance considered in a written contract?
A) when oral modification is required for a written contract
B) when a sale or lease contract is not evidenced by writing
C) when the express terms of a written contract are not clear
D) when there is a prior oral or written agreement statement contradicting the written
agreement
Vanessa was born to American parents from a minority group in Miami. She applies to
a public university which offers scholarships only to students from minority groups.
Which of the following standards of review is used to decide if the university violates
the Equal Protection Clause by offering Vanessa the scholarship?
A) rational basis
B) intermediate scrutiny
C) strict scrutiny
D) cogent basis
Susan purchases goods by telephone from Parker. Susan has never met Parker. Brenton
goes to Susan and pretends to be Parker. Susan draws a check payable to the order of
Parker and gives the check to Brenton, believing him to be Parker. Brenton forges
Parker’s indorsement and indorses the check to his brother, William, with the term
“without recourse.” William then cashes the check at a liquor store. Under the imposter
rule, who is liable on the check?
A) Brenton
B) the liquor store
C) Susan
D) William
Which of the following is a similarity between a partially disclosed and an undisclosed
agency?
A) The principal and the agent are jointly liable to the third party.
B) The principal’s identity is disclosed to the third party.
C) The agent’s identity is disclosed to the third party.
D) The method of payment by the third party is the same.
Those who disclaim liability and are not secondarily liable on instruments they endorse
are referred to as ________.
A) unqualified indorsers
B) qualified indorsers
C) agents
D) accommodation parties
Under the theory of ________, if a business corrects the social injury it causes, it has
met its duty of social responsibility.
A) moral minimum
B) maximizing profits
C) corporate citizenship
D) stakeholder interest
In common law, burglary is defined as the ________.
A) breaking and entering a property with the intent to commit felony
B) taking of another’s personal property other than from his or her building
C) intent to commit any larceny or robbery
D) wilful burning of a building of another person
The usual measure of damages for a breach of sales contracts is the difference between
the contract price and the ________.
A) current market price of the goods
B) market price at the time of contract
C) market price at the time of breach
D) current cost price of the goods
A ________ is made by an acquirer directly to a target corporation’s shareholder,
without the knowledge of the board of directors, in an effort to acquire the target
corporation.
A) share exchange
B) tender offer
C) proxy
D) shareholder resolution
________ is a symbol that designates an owner’s legal claim to an unregistered mark
that is associated with a product.
A) SM
B) TM
C) ®
D) ©
Which of the following is true of the government’s power of eminent domain?
A) It does not allow the owner of the property to make a case for keeping the property.
B) It requires payment of compensation by the government to the owner of the property.
C) It does not apply to state and local governments.
D) It allows the government to set up zoning areas.
A ________ is a contract that provides that a seller of a business or an employee will
not engage in a similar business or occupation within a specified geographical area for a
specified time following the sale of the business or termination of employment.
A) quasi-contract
B) contract in restraint of trade
C) covenant not to compete
D) contract of adhesion
With regard to unenforceable contracts, an extortion call in which a man agrees to pay
money in return for his family’s safety would be considered as a(n) ________.
A) preexisting duty
B) illusory promise
C) illegal consideration
D) past consideration
________ refers to an agent’s duty to meet the standards of reasonable care, skill, and
diligence implicit in all contracts.
A) Duty to notify
B) Duty to perform
C) Duty to account
D) Duty of loyalty
When a bank pays the holder of a properly drawn check, it is said to have ________ the
check.
A) certified
B) indorsed
C) honored
D) collected
What does “course of dealing” refer to when interpreting the express terms of a written
statement?
A) the previous conduct of the parties regarding the contract in question
B) the conduct of the parties in prior transactions and contracts
C) the conduct of contractual parties with parties not involved in the contract
D) any practice of dealing that is regularly observed or adhered to in an industry
Which of the following can be used by an accountant to counter liability imposed under
Section 11(a) of the Securities Act of 1933?
A) exclusionaryrule
B) due diligence defense
C) the Ultramares doctrine
D) the foreseeability standard
Which of the following is true of straight voting?
A) It gives a minority shareholder the advantage in electing the entire board of
directors.
B) It allows shareholders to cast as many votes as the number of shares they own.
C) It requires a greater than majority of the shares to constitute a quorum of the vote of
the shareholders.
D) It permits voters to procure votes equal to the product of the shares they own and the
number of directors to be elected.
The parties must appear individually and cannot have lawyers represent them for
lawsuits filed in the ________.
A) U.S. district courts
B) intermediate appellate courts
C) special federal courts
D) small claims courts
Jason orders 100 remote-controlled toy cars from Ryby Toys. In the contract, it is
stipulated that RyBy Toys would transport the toy cars via FlyByNight, a national
carrier service. RyBy Toys makes the arrangements and hands over the toys, minus the
remote-controllers, to FlyByNight, to be delivered to Jason. What was the nature of the
contract between Jason and RyBy Toys?
A) lease contract
B) destination contract
C) option contract
D) shipment contract
If a federal statute does not expressly provide for exclusive jurisdiction, state and local
governments have ________ jurisdiction to regulate an area or activity.
A) exclusive
B) concurrent
C) concordant
D) discordant
Which article of the Uniform Commercial Code governs secured transactions in
personal property?
A) Article 8
B) Article 9
C) Article 18
D) Article 19
The transfer of contractual rights by an obligee to another party is known as a(n)
________.
A) assignment
B) accommodation
C) delegation
D) substitution
Explain the effect of the Sarbanes-Oxley Act on corporate governance.
Discuss briefly how an issuer’s rights to offer and sell securities differ through different
time periods during a registration process.
How does a court obtain an in personam jurisdiction over the parties to a lawsuit?
Discuss the endemic nature of copyright infringement in today’s digital world.
When is a check said to be finally paid?
Contrast the roles played by shareholders and directors. Which role is more significant
with respect to a corporation?
Discuss the importance of the delegation doctrine to administrative agencies.
Differentiate between Kantian ethics and Rawls’ social justice theory.
Provide reasons why investors may show more interest in bonds over debentures as
debt securities.
Define the merchant protection statutes, and discuss their positive and negative effects.
Explain, in brief, the concept of “necessaries of life.”
Differentiate between the statute of limitations and the statute of repose.
Discuss the advantages of Chapter 13 over Chapter 7 for debtors and creditors.
“Contract disputes can be resolved only through a judicial process.” Discuss arguments
against this notion.
When goods are in the possession of a holder who is neither the seller nor the buyer, the
risk of loss can be passed on to the buyer or retained by the seller. Explain how.
Discuss the advantages of using a living trust instead of a will to distribute properties
after a person’s death.
How has the Internet revolutionized the way lawyers and courts operate?
What responsibility do banks and checking account customers have with respect to
examining bank statements?
Compare and contrast the liability of an incoming partner and the liability of an
outgoing partner.
Define preemptive rights and identify their uses.