The first 12 circuits in the federal court system are geographical.
Unilateral rescission of a contract by one of the parties without the other’s consent is
enough to discharge an agreement.
A valuable asset of a target corporation that the tender offeror particularly wants to
acquire in a tender offer is defined as a proxy.
The Helping Families Save Their Homes Act of 2009 doesn’t permit debtors to seek
mortgage modification while in an active bankruptcy case.
There is no dollar-amount limit on federal question cases that can be brought in federal
court.
Articles of incorporation must include the name and address of each promoter.
In all criminal cases, if the jury finds the defendant guilty, the judge decides the
penalties on the defendant in all jurisdictions or cases.
If an employer refuses to hire or promote all persons of a racial class, then the company
has engaged in employment discrimination in violation of Title VII.
A sales contract that requires the seller to deliver the goods to the buyer’s place of
business or another specified location is defined as a destination contract.
Agreements in the form of tape recordings and video recordings are considered
negotiable instruments.
The corporate officers appoint directors to run the corporation’s day-to-day operations.
Common stockholders are issued common stock certificates to evidence their
ownership interest in the corporation.
Courts have held that sex-plus discrimination violates Title VII of the Civil Rights Act
of 1964.
Under the fair use doctrine, a comedy television show is allowed to perform parodies
and satires involving famous celebrities.
Chancery courts emphasized the merits of a case rather than the legal procedures.
The Federal Communications Commission (FCC) is a federal government agency that
is empowered to enforce federal franchising rules.
After-acquired property refers to a property that a debtor acquires after a security
agreement is executed.
Shareholders of a corporation are personally liable for the debts and obligations of the
corporation.
Under the UCC, an offeree’s acceptance must be on the same terms as the offer.
Title VII of the Civil Rights Act of 1964 provides that employers may differentiate
regarding the payment of compensation provided to employees on the basis of an
employee’s national origin.
The U.S. Supreme Court has held that there is no accountant-client privilege under
federal law.
The fair use doctrine prevents any unauthorized use of copyrighted materials.
Licensing statutes cannot be enacted with the purpose of raising money for the
government.
Intangible property is not considered personal property.
Subsurface rights may be sold separately from surface rights.
The provisions of the Article 2A of the UCC are by no means similar to the provisions
of Article 2.
The doctrine of quasi-contract is intended to prevent unjust enrichment but not unjust
detriment.
The moral minimum theory argues that a corporation’s duty is to make a profit even at
the cost of causing harm to others.
Only purchasers and sellers of securities can sue under Section 10(b) and Rule 10b-5 of
the Securities Exchange Act of 1934.
Silence is not a misrepresentation unless nondisclosure would cause bodily injury or
death.
The right to dispose of goods arises if the lessor has reacquired the goods after stopping
them in transit.
Service of process is permitted when a party who disputes the jurisdiction of a court
makes a special appearance in that court to argue against imposition of jurisdiction.
In the occurrence of a substantial performance, the breaching party can correct the
breach to complete performance.
In a pro se divorce, the parties must hire lawyers to represent them.
The test of whether procedural due process is met is whether a “reasonable person”
could understand the law to be able to comply with it.
A liquidation preference is the right to receive a fixed dividend at set periods during the
year.
A firm polluting the environment and compensating those affected is an example of
corporate citizenship theory.
The Dodd-Frank Wall Street Reform and Consumer Protection Act created the Bureau
of Consumer Financial Protection.
The publication of an untrue statement of fact is equivalent to the publication of an
opinion.
A promissory note is a three-party instrument.
What does the Uniform Transfers to Minors Act establish?
A) rights for what a minor is allowed in case of inheritances without involving
custodians
B) rights for what a minor can accept from an adult
C) procedures for adults to make gifts of money and securities to minors
D) procedures for making gifts of money and securities between minors
The ________ requirement of negotiable instruments says that negotiable instruments
must be able to be easily transported between areas.
A) portability
B) permanency
C) signature
D) transparency
The term ________ refers to the doctrine which applies to strict liability actions that
says a plaintiff who is contributorily negligent for his or her injuries is responsible for a
proportional share of the damages.
A) strict liability
B) crashworthiness
C) comparative fault
D) contributory negligence
Which of the following is true of ownership rights of an abandoned property?
A) The finder and owner must share ownership of the property.
B) The finder acquires title to the property, even against its original owner.
C) The owner can reclaim his or her property completely from the finder.
D) The owner of the premises where property is abandoned is entitled to possession but
does not acquire title.
Which of the following is true of the suicide clause in a life insurance policy?
A) The beneficiary can claim the proceeds if the insured commits suicide within a
certain period and not after that.
B) The suicide clause assigns no validity period on the life insurance policy.
C) The beneficiary can claim the proceeds only if the insured commits suicide after the
validity period set forth by the insurer.
D) The beneficiary cannot claim the insurance proceeds if the insured commits suicide
after the validity period set forth by the insurer.
Which of the following types of relationship exists when a person hires another person
to perform some form of physical service but does not authorize that person to enter
into contracts on behalf his or her behalf?
A) employer-employee relationship
B) employer-agent relationship
C) principal-third party relationship
D) principal-agent relationship
Which of the following statements is true about a majority decision reached by the U.S.
Supreme Court?
A) All the judges agree as to the outcome and reasoning used to decide a case.
B) A majority of the judges agree as to the outcome but not the reasoning used to decide
a case.
C) A majority of the justices agree as to the outcome and reasoning used to decide a
case.
D) An equal number of judges vote for and against the petitioner and case remains
undecided.
Marshall asked his father, Rick, a rich investor, for money to help get out of some
financial trouble. When Rick refused, Marshall imitated his father’s signature on a
check and withdrew some money. Which of the following crimes did Marshall commit?
A) forgery
B) larceny
C) extortion
D) bribery
The ________ is a federal statute that prohibits age discrimination regarding employee
benefits.
A) FEPA
B) OWBPA
C) ADEA
D) EEOC
Which of the following phrases describes the term “covenant”?
A) an unconditional promise to perform
B) a breach of contract
C) mutual rescission of a contract
D) successive assignments of a right
With respect to the Williams Act, the pro rata rule holds that ________.
A) a parent company must purchase shares from its subsidies on a pro rata basis if there
are too many subsidies involved
B) a target company must sell its crown jewels to multiple friendly parties on a pro rata
basis if too many crown jewels are owned by it
C) stock holders of a company must be apportioned voting power on a pro rata basis if
there are too many candidates to choose
D) a target company’s shares must be purchased by an acquiring company on a pro rata
basis if too many shares are tendered
What kinds of goods are termed as future goods?
A) goods that exist but are to be sold at a future date
B) goods that are not yet in existence
C) goods that can be sold partly in the present and partly at a later date
D) goods that exist without a title
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires an
individual filing for bankruptcy to receive ________.
A) prepetition counseling
B) postpetition counseling
C) prepetition or postpetition counseling
D) prepetition and postpetition counseling
Shawn draws a bearer check that is payable on January 2, 2014. This check is an
example of a(n) ________ instrument.
A) order
B) time
C) demand
D) indorsed
How does the doctrine of stare decisis help in creating stability in a legal system?
A) by ensuring that witnesses of a case will be protected by the state
B) by ensuring that the legal rights of a defendant are preserved
C) by allowing the use of precedence in deciding future cases
D) by allowing the use of writs
Which of the following is an example of delivery of goods without moving them?
A) a contract requiring a document of title
B) a shipment contract
C) a destination contract
D) a contract with the term ex-ship
Which of the following is true when an indorsee’s name is misspelled in a negotiable
instrument?
A) The instrument can be indorsed.
B) The instrument becomes invalid.
C) The instrument cannot be indorsed and must be executed again.
D) The instrument becomes nonnegotiable.
Which of the following statements is true with regard to international law?
A) All legal matters of international importance are prosecuted by a single world court
that is responsible for interpreting international law.
B) The enforcement of all international laws is regulated by a unitary world executive
branch.
C) There is no single legislative source from which all international laws are created.
D) All countries have to follow the international laws enacted by other countries.
Which of the following federal laws allows debtors who are subject to a writ of
garnishment to retain 75 percent of their weekly disposable earnings?
A) Title III of the Consumer Credit Protection Act
B) Title II of Fair Credit Billing Act
C) Title III of Fair Credit Reporting Act
D) Title IV of Fair Debt Collection Practices Act
“Probable cause” is most directly associated with which step of the criminal process?
A) arrest
B) indictment
C) plea bargaining
D) arraignment
A ________ program allows a person who provides information that leads to a
successful SEC action in which more than $1 million is recovered to receive 10 percent
to 30 percent of the money collected.
A) whistleblower bounty
B) security bounty
C) surveillance bounty
D) defense bounty
Which of the following best defines a proof of claim?
A) a statement by the debtor that states that he or she has debts
B) a document required to be filed by a debtor stating the property that is exempted
from constituting the bankruptcy estate
C) a document required to be filed by a creditor that states the amount of his or her
claim against the debtor
D) a statement by creditors alleging that the debtor is not paying his or her debts as they
become due
A publishing house is charging customers a lesser price for its products owing to an
extensive warehouse network and reduced overhead costs. Would this constitute a
violation of Section 2(a) of the Robinson-Patman Act?
Land, buildings, trees, soil, minerals, timber, plants, and other things permanently
affixed to the land are known as ________.
A) oversees property
B) intangible property
C) personal property
D) real property
A Form 10-Q is a(n) ________ report that has to be filed by a reporting company as
required by the Securities Exchange Act of 1934.
A) weekly
B) annual
C) monthly
D) quarterly
Peter borrowed Carl’s car, as his own car had broken down, and he needed to go to the
city, urgently. While in the city he parked the car in a clearway zone, from where it was
towed away by the authorities. In such a bailment agreement, Peter is negligent of
________.
A) duty of great care
B) duty of slight care
C) duty of reasonable care
D) duty of ordinary care
________ voting is a system in which each shareholder votes the number of shares he
or she owns on candidates for each of the positions open.
A) Cumulative
B) Straight
C) Accumulation
D) Weighted
Symmetry, Inc. is a general partnership with five partners. On July 1, James is admitted
as a new general partner by investing a $200,000 capital contribution. As of July 1,
Symmetry, Inc. owes $600,000 of preexisting debt. After James becomes a partner, the
general partnership borrows $2 million of new debt. If the general partnership goes
bankrupt, then James is ________.
A) personally liable for the preexisting debt of $600,000
B) personally liable for the unpaid debt of $2 million
C) not required to pay out his capital contribution toward the preexisting debt
D) not liable for any debt whether preexisting or borrowed after he joins the partnership
Which of the following is true of the meeting of the creditors?
A) A meeting of the creditors is called before the court grants an order for relief.
B) The bankruptcy judge cannot attend the meeting of the creditors.
C) In the first meeting of the creditors, a debtor is questioned by a jury constituted for
the purpose.
D) Questions regarding the debtor’s possible concealment of assets are not permitted
during the meeting of the creditors.
Which of the following statements is true of the European Union?
A) The European Union was formerly called the European Council.
B) Every country in the European Union has adopted the euro as its monetary unit.
C) Custom duties have been removed among member nations of the European Union.
D) A majority vote of existing EU members is needed to admit a new member country.
A member of the board who is also an officer of the corporation is known as a(n)
________.
A) ombudsman
B) non-executive director
C) inside director
D) shareholder
Which of the following statements is true regarding the liability of the partners in a
limited partnership?
A) Both the limited and general partners have unlimited liability for partnership debts.
B) The limited partners have limited liability and the general partners have unlimited
liability for partnership debts.
C) The limited partners have unlimited liability, and the general partners have limited
liability, for partnership debts.
D) If a corporation is a partner, its shareholders have unlimited liability for partnership
debts.
Analyze the effect of the Dodd-Frank Wall Street Reform and Consumer Protection Act
on lending regulations.
Who gets the engagement ring if the engagement is broken off prior to the wedding?
Discuss rules supporting the claims of both the parties.
According to early English common law, how did chancery courts provide equitable
remedies?
A landowner constructs a multi-floor building where the zoning ordinance permits only
a single-floor house. The ordinance does not cause the owner any hardship; however,
the owner insists on obtaining a variance. What challenges would the owner face in this
situation?
Discuss the feasibility of a successful termination of counterfeiting and trademark
dilution.
Bill executes a negotiable instrument that is drawn on Kay Bank, payable to Beth.
Which negotiable instrument has Bill executed? Explain the different parties involved
in the instrument.
Discuss the need and significance of the U.S. courts of appeals.
Explain how the treatment of corporations as a separate legal entity frees shareholders
from a liability to the organization’s debts and obligations.
What is a vertical merger? With the help of an example, illustrate the difference
between backward and forward vertical mergers.
Differentiate between assumption of risk and intervening events with an example.
How do parties resolve disputes pertaining to jurisdiction court and laws to be applied
to a case?
A person enters into a contract with another by writing the terms of the contract on a
notepad. Is this a valid contract? Does the law accept writing on the notepad as a proof
of that contract?
Elaborate on the lessor’s right to cure with an example.
What is meant by “insane but not adjudged insane?” What are its consequences?
Where an indorsement on an instrument has been forged or is unauthorized, the loss
falls on the party who first takes the forged instrument after the forgery. Discuss, with
an example, a circumstance when this rule is not applicable.
Differentiate between defect in design and defect in manufacture with regard to strict
liability.
What are the strengths of operating a business as an LLC?