The U.S. Constitution has been amended:
a. only expressly.
b. only by interpretation.
c. only by practice.
d. by all of the ways listed above.
Title VII protects members of which racial grouping(s)?
a. black only
b. black, Native American, and Asian-Pacific
c. white only
d. all racial groupings
The theories of product liability
a. are mutually exclusive.
b. are not mutually exclusive.
c. are set forth exclusively in the UCC.
d. are set forth exclusively in the common law.
Damages in excess of actual loss are called:
a. punitive damages.
b. compensatory damages.
c. restitution.
d. nominal damages.
When an enterprise has made false and deceptive statements in advertising, the FTC
may require new advertising to correct the former statement so that consumers are
aware of the truth. This corrective advertising required by the FTC is also called
__________ advertising.
a. retractive
b. redactive
c. retroactive
d. refractive
The power given to courts to hear certain types of cases is called:
a. jurisdiction.
b. mediation.
c. arbitration.
d. summary judgment.
The Americans With Disabilities Act applies to private employers when:
a. they have federal contracts.
b. they have demonstrated past practices of discrimination.
c. they have fifteen (15) or more employees.
d. they have state contracts.
Laws that prohibit theft, operation of a factory in areas zoned residential, and copyright
infringement exist primarily:
a. for protection of the person.
b. for protection of public health, safety, and morals.
c. for protection of property.
d. for protection of the state.
Between experienced businesspersons, exculpatory clauses are generally:
a. voidable.
b. void.
c. valid.
d. unenforceable.
Testing of prospective employees:
a. cannot have been developed by one employer and applied by another.
b. can be adjusted to favor members of a particular race.
c. must bear a relationship to job performance.
d. all of the above.
The degree of care required of a person is:
a. that degree of care the person exercised in the situation at hand.
b. that degree of care an extraordinary person would exercise under similar
circumstances.
c. that degree of care an ordinarily prudent person would exercise under similar
circumstances.
d. none of the above.
An agent has implied __________ authority to do any act that usually accompanies the
transaction for which the agent is authorized to act.
a. express
b. apparent
c. customary
d. incidental
To revoke acceptance of goods:
a. any defect or nonconformity must be discovered.
b. the goods must be dangerously defective.
c. the nonconformity must substantially impair the value of the goods.
d. action must be taken by the buyer within 60 days of delivery.
A warranty is limited if:
a. only the original buyer is covered by the warranty.
b. the buyer must pay any cost for repair or replacement of a defective product.
c. it covers only part of the product purchased.
d. all of the above.
Conspiracy means ____ committing a criminal act.
a. thinking about
b. an agreement aimed at
c. thinking with others about
d. all of the above
The CISG:
a. governs all contracts between parties in countries that have ratified it.
b. applies only to goods bought for personal, family or household uses.
c. applies to contracts in which the predominant part of the obligation is the supply of
labor or other services.
d. none of the above.
An agreement not to compete is enforceable:
a. in the sale of a business.
b. between competitors.
c. in contracts for the sale of goods.
d. in contracts for the sale of securities.
A limited liability partnership:
a. is taxed like a corporation.
b. provides limited liability for all partners.
c. shields innocent partners from personal liability beyond their investment.
d. All of the above.
Personal property that is attached to the earth or placed in a building in such a way or
under such circumstances that it is deemed part of the real property is called a(n):
a. asset.
b. estate.
c. easement.
d. fixture.
If a breach of the peace might occur:
a. self-help repossession is the only option available to obtain the collateral.
b. the creditor must use court action to obtain the collateral.
c. the creditor is barred from repossessing the collateral.
d. the collateral reverts to the debtor.
Government grants create:
a. sole proprietorships.
b. corporations.
c. partnerships.
d. unincorporated associations.
An individual who receives information from an insider or temporary insider is called a:
a. tippee.
b. tipper.
c. de facto insider.
d. virtual insider.
The America Invents Act:
a. amended federal patent law.
b. replaced the “first to file system” with a “first to invent” system.
c. speeds up the application process for energy conservation inventions for a $4,800 fee.
d. all of the above.
Torts arise from a violation of a ____ duty.
a. public
b. private
c. contractual
d. criminal
A person who attempts to monopolize any part of the trade or commerce among the
states:
a. is guilty of a misdemeanor.
b. is guilty of a felony.
c. can be fined up to $500,000.
d. none of the above.
Which of the following situations reflects a possible conflict of interest?
a. You offer a company contract to a friend without checking competing bids.
b. You hire a relative for a company position although another candidate is more
qualified.
c. You buy a piece of realty that would be suitable for a planned company project.
d. All of the above.
Characteristics of the fee simple estate include all of the following except:
a. it is alienable during life.
b. it is not subject to rights of the owner’s surviving spouse.
c. it is alienable by will.
d. it can be attached or used to satisfy the owner’s debts before or after the owner’s
death.
The remedy of specific performance will most likely be granted in the case of a(n):
a. employment contract.
b. contract to buy shares of publicly-traded stock.
c. contract for the sale of a business.
d. contract for the sale of Florida oranges.
Ownership of shares of stock may be transferred by any of the following methods
except:
a. delivery of the stock endorsed by its owner in blank.
b. delivery of a notice of intent to transfer.
c. delivery of the stock endorsed by its owner to a specified person.
d. delivery of the certificate and a separate power of attorney executed by the owner.
The Electronic Fund Transfers Act (EFTA) does not cover transactions originated by
commercial paper.
Which is a correct statement about arbitration of contractual disputes regarding
international trade?
a. It is done in court.
b. There is extensive judicial review of the decision.
c. Parties frequently arbitrate in neutral countries.
d. It is not available in disputes of more than $1 million.
In a partnership of four physicians, a decision to buy an office copier for the partnership
must be approved by:
a. all of the partners.
b. at least three of the partners.
c. at least two of the partners.
d. one partner.
A person becomes a(n) __________ at the moment of taking possession of abandoned
personal property.
a. Bailor
b. Bailee
c. constructive bailee
d. Owner
Bailment given as security for the payment of a debt is a(n):
a. pledge
b. contribution
c. guaranty
d. indemnity
The Sunshine Act requires most meetings of major administrative agencies to be open
to the public.
The filing of an involuntary bankruptcy case petition results in an order of relief.
An implied warranty arises automatically from the fact a sale has been made.
If a limited partnership certificate is never filed, all partners are treated as limited
partners.
An oral contract to sell custom-made goods to a buyer is binding if the goods are not
suitable for sale to anyone else in the ordinary course of the seller’s business, and the
seller has made a substantial beginning in manufacturing or procuring the goods.
The creditors of Sara Delano have petitioned for involuntary bankruptcy proceedings
against her. Delano has been consistently late in paying her obligations for the past year.
Two months before the petition was filed, a custodian was appointed to protect Delano’s
property. In her statement contesting the bankruptcy petition, Delano pointed out that
she had dealt in good faith and could not be shown to be guilty of any act of
misconduct. In addition, she cited her willingness to allow a custodian to be appointed
as an indication of her intention to avoid bankruptcy and honor her obligations. Can she
prevail?
Certain persons cannot make contracts that will bind them.
“Mental state” does not require an awareness of guilt.
When a minor avoids contracts, the minor always must return the other contracting
parties to their original financial positions.
Field warehousing is the storage of farm crops in the field where they have been grown.
Under the UCC, an assignment of all the assignor’s rights under a contract generally is
held to be both an assignment of rights and a delegation of duties.
If a trust is created to take effect within the lifetime of the settlor, it is a testamentary
trust.
If there is a joint venture, the fault or negligence of one venturer will not be imputed to
the other venturers.
A contract is essentially an agreement that creates an obligation.
A holder of a negotiable instrument cannot be a holder in due course when the holder
learns of a defense to payment after the acquisition of the instrument.
Joe Swartz, an employee of Acme Company, worked for months during company time
and used Acme’s equipment to develop an idea that he had been nurturing. Finally, the
idea came to fruition. Swartz’s employer laid claim to the invention on the grounds that
the firm’s equipment had been utilized on company time. Swartz had obtained a patent
on the invention and claimed that his employer had no rights to the invention at all.
Who is right? How could an employer guard against such arguments in the future?
Cybersquatters are individuals who register and set up domain names on the Internet
that are identical or confusingly similar to existing trademarks in the hopes they can sell
the name to the trademark owner.