If a minor makes a contract with an adult, and the minor does not disaffirm the contract
either during the period of minority or within a reasonable time after reaching the age of
majority, ________.
A) the adult is no longer obligated to the contract
B) the minor can disaffirm it later and obtain full restitution
C) the contract is considered ratified
D) the minor is no longer obligated to the contract
Jerry is employed by U.S.-based Iconic Systems. His work hours per week for the
month of January were 40 hours the first week, 30 hours the second week, 50 hours the
third week, and 45 hours the fourth week. According to the FSLA, how many hours of
overtime pay is Jerry entitled to at the end of January?
A) 5
B) 10
C) 15
D) 40
Which of the following is true of the right to sue letter issued by the EEOC?
A) It is issued when the EEOC chooses to bring suit.
B) It is issued when the EEOC does not find a violation.
C) It is issued when the complainant is found guilty.
D) It is issued only when the discrimination is racial in nature.
How is a copyright different from a patent?
A) Copyrights are applied for mechanical inventions, while a patent is applied for
tangible writings.
B) Patents have a limited term period, while copyrights carry lifelong terms.
C) Patents fall under the state law, while copyrights fall under federal law.
D) Copyrights should be novel, and useful, while patents need not be so.
The Consumer Product Safety Commission is a(n) ________.
A) communion of two state-funded regulatory bodies working together to ensure
consumer safety
B) federal body created to ensure the safety of certain consumer products like motor
vehicles, boats, aircraft, and firearms
C) independent federal administrative agency that regulates potentially dangerous
consumer products
D) federal agency working to ensure product safety standards for food, poultry,
medicines, and medical devices
Which of the following methods of acquiring ownership is least in use today?
A) purchase
B) capture
C) gift
D) production
________ damages are the only damages that may be recovered for violations of the
FTC Act.
A) Treble
B) Double
C) Potential
D) Actual
Which of the following statements is true about strict liability?
A) It applies liability to all parties in the chain of distribution.
B) It consists of liability with fault.
C) It requires privity of contract between the plaintiff and the defendant.
D) It covers casual sales and transactions by nonmerchants.
When a person dies, a(n) ________ is the person appointed to administer an estate
during its settlement phase.
A) settlor
B) executor
C) testator
D) beneficiary
________ is a rehabilitation form of bankruptcy for individuals.
A) Chapter 7
B) Chapter 11
C) Chapter 13
D) Chapter 12
A(n) ________ is a situation in which a person who wrongfully possesses someone
else’s real property obtains title to that property if certain statutory requirements are
met.
A) adverse possession
B) reversion
C) nonpossessory interest
D) future interest
A(n) ________ refers to a document that evidences a member’s ownership interest in an
LLC.
A) certificate of interest
B) article of organization
C) statement of interest
D) article of amendment
Under the common law, innkeepers owe a ________ regarding loss caused to the
personal property of transient guests.
A) duty of negligible care
B) duty of slight care
C) duty of strict liability
D) duty of ordinary care
Wilson, a plumber working for Fastfix Repairs, is hired by John to install a radiator
manufactured by Multilever Machines. After the installation, the radiator fails to work
due to a defective internal component. Under the doctrine of comparative negligence,
which of the following parties is liable for the radiator’s failure?
A) Wilson
B) John
C) Multilever Machines
D) Fastfix Repairs
The lawfulness of all government classifications that do not involve suspect or
protected classes is examined using a(n) ________.
A) strict scrutiny test
B) intermediate basis test
C) due process test
D) rational basis test
The United Nations is headquartered in ________.
A) Washington, DC
B) Paris
C) New York City
D) The Hague
________ occurs if a person is deceived as to the nature of his or her act and does not
know what he or she is signing.
A) Fraud in the inducement
B) Fraud in the factum
C) Fraud by concealment
D) Fraud by suppression
The Rosberg family had asked their neighbors, the Lowells, to feed their cat while they
were away on a vacation. The Lowells fed the cat as they had been asked to but
eventually, the cat ran away and never returned. Which of the following is true in this
case of bailment agreement?
A) The Lowells are solely liable for the loss of the cat.
B) The Lowells are not liable for the loss of the cat.
C) The Lowells are partially liable for the loss of the cat.
D) The Lowells can be sued for negligence of duty.
________ is an equity doctrine that permits a court to order enforcement of a contract
that lacks consideration.
A) Illusory promise
B) Gift promise
C) Promissory estoppel
D) Option contract
Which of the following best describes penal code?
A) It is a document issued by magistrate for a person’s arrest.
B) It is a series of statutes that define federal crimes.
C) It is a document obtained before searching an individual’s property.
D) It is an unwritten code of conduct among prison personnel.
The Nutrition Labeling and Education Act (NLEA) applies to packaged foods and other
foods regulated by the ________.
A) U.S. Department of Agriculture
B) Consumer Product Safety Commission
C) Patient Protection and Affordable Care Act
D) Food and Drug Administration
Kenneth purchased a car from his local dealership, Quartent Cars. However, since the
car was not available in the color that Kenneth favored, the sales contract stipulated that
Kenneth could immediately pick up the car from a nearby warehouse it was housed in.
The warehouse was owned by Mr. Henderson. Kenneth received the document of title
for the car upon payment and presented it to Mr. Henderson around a week later. But
Mr. Henderson informed Kenneth that the car was damaged during a fire in the
warehouse. According to the UCC, which of the following parties holds the risk of loss
for the damage caused to the car?
A) The risk is to be borne by Kenneth.
B) Mr. Henderson has to take up the loss.
C) Quartent Cars must take the risk of loss.
D) The risk is to be borne jointly by Mr. Henderson and Quartent Cars.
The intentional confinement of another person without authority and without that
person’s consent is termed ________.
A) extortion
B) false imprisonment
C) assault
D) embezzlement
Which of the following is the correct order of prioritizing the external sources used to
interpret the terms of a written contract?
A) course of dealing, usage of trade, and course of performance
B) usage of trade, course of performance, and course of dealing
C) course of performance, course of dealing, and usage of trade
D) course of dealing, course of performance, and usage of trade
Which of the following statements is true of the NAFTA?
A) It allows a member country to reimpose tariffs if imports are hurting that country’s
economy or its workers.
B) It disallows any special protection being extended to specific industries.
C) It disallows NAFTA members from trading with other countries unless a unanimous
permission is obtained.
D) It has been hailed by economists to be a perfect example of a free trade pact.
Which of the following statements is true in the creation of a general partnership?
A) The business name has to have the names of all the partners.
B) The business name cannot be a fictitious name.
C) The name selected by the partnership cannot indicate that it is a corporation.
D) The business cannot operate under a trade name.
Raj receives a check for $100 from Sheldon. He signs the back of the check and turns it
over to Leo to pay off the $100 he owed Leo. In this case, Raj is the ________.
A) drawer
B) drawee
C) indorser
D) indorsee
Which of the following is true of stock dividends?
A) They refer to the redistribution of corporate assets as shares.
B) They are used to increase an existing shareholder’s proportionate ownership interest.
C) They refer to additional stocks distributed as dividends.
D) They are distributed according to existing ownership interest of the agents of the
corporation.
A ________ refers to an arrangement between two or more companies whereby they
agree to ally themselves and work together to accomplish a designated objective.
A) limited partnership
B) strategic alliance
C) sole proprietorship
D) franchise
A term LLC can be continued after the expiration of its term if a(n) ________.
A) majority of the members of the LLC vote to continue the LLC as an at-will LLC
B) majority of the members of the LLC vote prior to the expiration date to continue the
LLC for an additional specified term
C) amendment to the articles of organization is filed with the United States Secretary of
Labor
D) amendment to the operating agreement is filed with the secretary of state
ULab, Inc., a biotechnology firm, recently had a fire in one of their offices which
resulted in the office building being gutted. The employees were not trained for a fire
drill, and the 10-storey building had no fire escape route which resulted in many
employees being hospitalized for physical injuries, burns, and toxic smoke inhalation.
What important social responsibility theory was ULab negligent of by not training their
employees in case of a fire and not installing a fire exit?
A) corporate citizenship
B) moral minimum
C) stakeholder interest
D) maximizing profits
Which of the following is true about email harassment?
A) It is a subtle and insidious form of harassment.
B) It can consist of isolated incidents.
C) It cannot lead to a hostile work environment.
D) It must be blunt to be considered offensive.
Which of the following is true of corporate bylaws?
A) They only contain rules on how the corporation can deal with the government.
B) They are only adopted by the shareholders of the corporation.
C) They are not binding on the directors, or shareholders of the corporation.
D) They do not have to be filed with any government official.
The Ross’s Choice Corporation franchises independently owned restaurant franchises to
make and sell burgers and pizzas to the public under the Ross’s brand name. This is a
form of a(n)________ franchise.
A) processing plant
B) chain-style
C) area
D) distributorship