The ________ branch of the federal government has the power to enact laws.
A) legislative
B) judiciary
C) consulate
D) executive
Securities coming under the small offering exemptions ________.
A) cannot be advertised to the public
B) can only be sold to accredited investors
C) can only be bought by non-accredited investors
D) have no resale restrictions imposed on them
An agreement whereby parties agree to accept something different in satisfaction of the
original contract is called a(n) ________.
A) accord
B) discharge
C) novation
D) accommodation
A contract is created when ________.
A) the acceptance has been received by the offeror
B) an acknowledgement is sent by the offeror to the offeree of receiving an acceptance
C) the offeree dispatches the acceptance
D) a sale of goods has been performed under the contract
Which of the following is a form of co-ownership that disallows the right of
survivorship and allows unilateral transfer of interest?
A) a tenancy in common
B) a joint tenancy
C) a cooperative
D) a tenancy by the entirety
The legality of nonprice vertical restraints of trade under Section 1 of the Sherman Act
is examined by applying the ________.
A) Colgate doctrine
B) Noerr doctrine
C) per se rule
D) rule of reason
________ corporations are also known as public corporations.
A) Professional
B) Profit
C) Government-owned
D) Nonprofit
In the case of a shipment contract, delivery occurs when ________.
A) the buyer receives the shipment
B) the seller puts the goods in the carrier’s possession
C) the shipment reaches the destination that the buyer specified
D) the shipment is allowed to be transported by transport customs
If the parties to a contract do not set a specific time of performance for any obligation
under the contract, the contract ________.
A) must be performed within a reasonable time
B) is considered to be unenforceable under the UCC
C) can be satisfied at a time the offeree insists upon
D) is not created at that time
Which of the following is true of a criminal trial?
A) The government must prove that the accused is guilty beyond a reasonable doubt.
B) The accused is presumed guilty once an indictment has been issued.
C) The government has the right to appeal in higher courts if the defendant is found not
guilty.
D) The grand jury listens to evidence to determine guilt or innocence.
The lawfulness of government classifications based on a protected class is examined
using a(n) ________ test.
A) strict scrutiny
B) intermediate scrutiny
C) rational basis
D) cogent basis
If the lessor’s tender of delivery fails to conform to a lease contract in any way, the
lessee has the right to ________.
A) reject improperly tendered goods
B) recover the purchase price
C) withhold tendered goods
D) stop delivery of goods in transit
Which of the following is true of the United States criminal law system?
A) Criminal defendants are presumed guilty until they are proven innocent.
B) The burden of proof in a criminal case is on the government.
C) At least half the jurors have to find the defendant guilty of the crime.
D) Once there has been an arraignment, most of a defendant’s constitutional rights are
no longer applicable.
Which of the following best describes bailment at will?
A) bailment for a period of one year
B) bailment for a period not less than two years
C) bailment that cannot be terminated by the bailor
D) bailment without a fixed term
________ occurs where an owner sells land that he or she owns to another party but
reserves an easement on the sold land.
A) Easement by grant
B) Easement by implication
C) Easement by necessity
D) Easement by reservation
An association of two or more persons to carry on as co-owners of a business for profit
is known as a ________.
A) limited partnership
B) sole proprietorship
C) corporation
D) general partnership
Certain topics are considered ________ subjects of collective bargaining and therefore
cannot be subjects of negotiation or agreement.
A) permissive
B) illegal
C) alternative
D) compulsory
The most common form of the alternative dispute resolution is ________.
A) arbitration
B) mediation
C) litigation
D) negotiation
The ________ Clause prevents the government from enacting laws that either prohibit
or inhibit individuals from participating in or practicing their chosen religions.
A) Due Process
B) Privileges
C) Establishment
D) Free Exercise
A geographical area that does not meet established air quality standards is designated as
a ________.
A) limited pollution area
B) nonattainment area
C) zoned ordinance area
D) federal regulation area
Which of the following is true of “facilitating planning” as a function served by the
law?
A) It refers to laws that prohibit discrimination in employment.
B) It refers to commercial laws that allow businesses to carry out their operations.
C) It refers to laws enacted after careful study, debate, and public input.
D) It refers to laws that allow for the settlement of cases even before they go to trial.
Which of the following is an advantage to operating a business as a sole proprietorship?
A) right to receive all of the business’s profits
B) unlimited access to the capital market
C) limited liability
D) exemption from tax
Which of the following is true about dividends?
A) Cash or property dividends, once declared, can be revoked.
B) Officers of the corporation may opt to retain profits for corporate purposes instead of
as dividends.
C) Shareholders can sue to recover undeclared and paid dividends.
D) Dividends are paid at the discretion of the board of directors.
The financial statement prepared by an accountant is considered an expertised portion
of the registration statement only if the accountant is a CPA.
Which of the following is an example of duress?
A) a plaintiff threatening the defendant that he will not drop the lawsuit until the
defendant pays him a certain amount of money
B) a teacher threatening a student that he will be expelled if he is found with cigarettes
again
C) a wife threatening to commit suicide if her abusive husband does not stop beating
her
D) a father using his dominant and fiduciary position to unduly influence his son into
committing a crime
Which of the following is true of an ordinary merger?
A) The recommendation of the board of directors of each corporation is not required.
B) The articles of merger must be filed with the secretary of state of the surviving
corporation.
C) The approval of the surviving corporation’s shareholders is required if the total
voting share increases by 20 percent.
D) The affirmative vote of the majority of shares of only the surviving corporation is
required.
________ refers to a condition whose occurrence or nonoccurrence of a specific event
automatically excuses the performance of an existing contractual duty to perform.
A) Condition precedent
B) Condition subsequent
C) Concurrent condition
D) Implied condition
What function of the law is being served when passing laws that protect the U.S.
government from the risk of being forcefully overthrown?
A) maintaining the status quo
B) shaping moral standards
C) facilitating orderly change
D) promoting social justice
In a sale on approval, the risk of loss and title to the goods pass to the buyer when the
________.
A) seller receives notification of the rejection of goods within reasonable time
B) buyer uses the goods consistently with the purpose of trial
C) seller ships the goods to the buyer’s destination
D) buyer accepts the goods under the contract
What is a homestead exemption?
A) investment in realty that a debtor must forfeit
B) equity in a home that a debtor is permitted to retain
C) remainder of the debtor’s interest in commercial property that is returned to him after
fulfilling creditors’ claims
D) all of the debtor’s assets converted to cash
________ is a clause in an international contract that designates which nation’s laws
will be applied in deciding a dispute arising out of the contract.
A) Equal protection clause
B) Supremacy clause
C) Forum-selection clause
D) Choice of law clause