Every indorsement is either blank or special.
a. True
b. False
All methods of alternative dispute resolution, such as arbitration, mediation,
conciliation, and negotiation, involve a third party to help resolve the dispute.
a. True
b. False
Regarding drug and alcohol testing of employees by employers:
a. the NLRB makes it a mandatory subject of collective bargaining in a union setting.
b. the constitutional protection from unwarranted search and seizure protects private
sector employees from the practice.
c. the Constitution prohibits any public sector employer from testing its employees
under any circumstances without a warrant.
d. federal legislation sets forth comprehensive guidelines for the practice.
Which of the following is NOT a way in which a case can reach the United States
Supreme Court?
a. Appeal by right.
b. Stare decisis.
c. Writ of certiorari.
d. All of these are ways for a case to reach the U.S. Supreme Court.
An ordinary contract between the debtor and his creditors whereby the creditors receive
pro rata a part of their claims and the debtor is discharged from the balance of the
claims is:
a. a non-statutory composition.
b. a statutory assignment.
c. an equity receivership.
d. an automatic stay.
Another term for personal property is:
a. patent.
b. chattel.
c. realty.
d. fixtures.
In the Ed Nowogroski Insurance, Inc. v. Rucker case, the court found that:
a. all former employees have an obligation to refrain from using the general knowledge,
skills, and experience acquired under the former employer.
b. customer lists are always protected as trade secrets.
c. where a former employee seeks to use trade secrets of the former employer to obtain
a competitive advantage, the competitive activity can be enjoined.
d. the Uniform Trade Secrets Act distinguishes between written and memorized
information in determining whether the information is entitled to trade secret
protection.
Megan, who has no heirs or next of kin, makes a will leaving her estate to her best
friend, Pat. If Megans will is witnessed by only two instead of three people as required
by her state statute, upon her death her estate will:
a. go to Pat without court involvement.
b. escheat to the state.
c. go through probate, at which time the court will try to determine Megans intent as to
disposition and follow that intent.
d. be given to a charity as determined by the probate court.
A check drawn on a bank is an order to pay a sum of money and an authorization to
charge the amount to the drawer’s account. The drawer may countermand this order by
which of the following?
a. A canceled check.
b. A stop payment order.
c. A banker’s acceptance.
d. A time draft.
Which of the following is true regarding identification of the goods under Article 2?
a. Only the buyer can identify the goods.
b. Identification of existing goods gives the buyer a special property right.
c. Identification of fungible goods occurs when the seller separates the contracted units
from the whole.
d. All of these are correct.
Formal rulemaking differs from informal rulemaking in that with formal rulemaking:
a. the procedures are governed by the same APA provisions that govern an adjudication.
b. an agency must give prior notice of a proposed rule, usually by publication in the
Federal Register.
c. an opportunity must be given for interested parties to participate in the rulemaking.
d. publication of a final draft of the rule, along with a statement of the rules purpose,
must be given at least fourteen days before its effective date.
In which of the following ways does a state constitution differ from the U.S.
Constitution?
a. State constitutions are often more restrictive of rights than the U.S. Constitution.
b. A state constitution can guarantee rights beyond those provided in the U.S.
Constitution.
c. A state constitution is generally amended less frequently than the U.S. Constitution.
d. State constitutions tend to be more general than the U.S. Constitution.
A counteroffer operates as a rejection of the original offer.
a. True
b. False
The part performance exception to the land contract provision of the statute of frauds in
many states requires both that the transferee has paid a portion of the purchase price and
has either taken possession of the real estate or has started to make valuable
improvements on it.
a. True
b. False
The 2002 Sarbanes-Oxley Act forbids use of an audit committee by the board of a
publicly held corporation; the full board must oversee the work of the public accounting
firm employed to audit the corporate books.
a. True
b. False
Directors are elected at the annual meeting of shareholders.
a. True
b. False
In choosing the form in which to conduct business, if ease of formation is the primary
concern, the owners would choose a:
a. corporation.
b. limited liability partnership.
c. limited partnership.
d. general partnership.
To avoid a contract, an intoxicated person must have been so intoxicated as to be unable
to understand the consequences of his actions or unable to act in a reasonable manner.
a. True
b. False
Under the CISG, if the buyer fails to perform any obligations, the seller may either
require the buyer to pay the price or fix an additional period of time for the buyer to
perform.
a. True
b. False
Bill would like to propose to the board of directors of Bizmarc, Inc., that the
corporation distribute one percent of its pre-tax yearly income to feed the poor. To
Milton Friedman and others, Bill’s proposal might be considered unethical, because it
violates the purpose for which the corporation was established.
a. True
b. False
The actual express authority of partners must be specifically set forth in the partnership
agreement.
a. True
b. False
In the In Re L. B. Trucking, Inc. case:
a. warranty provisions of the UCC did not apply because the sale of goods was merely
incidental to the service aspect of the contract.
b. Thomass statements were found by the court to be mere puffing or sales talk.
c. Southern States was found to have breached both express and implied warranties.
d. Durham did not rely on Thomass statements, so they could not be considered
warranties.
UCC Article 9 requires certain assignments to be in writing.
a. True
b. False
Under the UPA, after dissolution:
a. the partnership must be liquidated.
b. the remaining partners have the right to continue the partnership if the majority of
them agree.
c. the remaining partners have the right to continue the partnership if the partnership
was dissolved in contravention of the partnership agreement.
d. the partnership must be liquidated only if the dissolution was caused by the expulsion
of a partner in accordance with the partnership agreement.
Which of the following is NOT an example of concurrent ownership?
a. A joint tenancy.
b. A tenancy by the entireties.
c. A tenancy in common.
d. A lease between a landlord and a tenant.
Jack moved from New Hampshire to Florida and decided to have an air conditioner
installed in his car. After it was installed, Jack received a bill for $1,200. Jack called the
dealer and told him he’d never heard of this service costing more than $500. They
argued, but the dealer finally agreed to take $900. Is the agreement enforceable?
a. Yes, there is no way for the dealer to get the extra money anyway.
b. Yes, there is consideration for the modified amount.
c. No, there is no consideration and the dealer can sue for the extra $300.
d. No, there is an implied contract to pay the dealer whatever he billed Jack.
Discharge applies to the individual, not to the instrument, and a persons liability may be
discharged with regard to one party but not to another.
a. True
b. False
Carelessness or negligence is a form of subjective fault.
a. True
b. False
The statute of frauds applies to executory contracts only.
a. True
b. False
A fraudulent transfer made more than one year prior to filing cannot be avoided by the
trustee.
a. True
b. False