A person who did not necessarily commit the crime can still be held criminally
responsible for acts committed by others __________.
a. only for non-business crimes
b. only for business crimes
c. both a. and b.
d. neither a. nor b.
Under which circumstance will an employee not be entitled to Workers’ Compensation
benefits for an on-the-job injury?
a. an injury that is the result of an employee’s own negligence
b. an injury that is the result of an employee’s own gross negligence
c. an injury that is caused by a fellow employee
d. an injury that is the result of an employee’s intoxication
A __________ indorsement consists of the signature of the indorser and words
specifying the person to whom the indorser makes the instrument payable.
a. qualified
b. restrictive
c. special
d. blank
Voluntary improvements in the fairness and ethics of business behavior are:
a. less effective than those brought about by government regulation.
b. less costly and intrusive than those brought about by government regulation.
c. virtually nonexistent in corporate America.
d. more common in third-world countries than in the United States.
In a minitrial:
a. only three jurors are used.
b. the trial addresses only portions of the case or certain issues related to the case.
c. the decision is always fully binding on the parties.
d. none of the above.
A sales contract must be evidenced by a writing if the sales price of goods is equal to or
more than:
a. $100.
b. $1,000.
c. $500.
d. $5,000.
The concept of perfection concerns:
a. the creation of the security interest.
b. protection against the claims of others to the collateral.
c. the rights of the creditor against the debtor.
d. converting unsecured creditors into secured creditors.
A violator of the Sherman Act may be subject to:
a. fine only.
b. imprisonment only.
c. both fine and imprisonment.
d. neither fine nor imprisonment.
At an auction sale, each bid is:
a. a counteroffer to the auctioneer’s offer of the merchandise.
b. an acceptance of the auctioneer’s offer.
c. an invitation to negotiate.
d. an offer.
Under the 2005 reforms:
a. it is easier for creditors to show they did not receive a voidable preference.
b. nonconsumer debt payments of less than $7,500 are not subject to the voidable
preference standards .
c. both a. and b.
d. none of the above.
If appropriate assurance is not given in response to a demand for assurance of
performance, the demanding party may:
a. treat the contract as repudiated.
b. sue for libel.
c. file for an insurance payment.
d. not replace the repudiated contract.
The ethical category of integrity and truthfulness is best expressed as maintaining one’s
values and principles:
a. so long as profits can be maintained.
b. so long as the costs are not great.
c. unless deviating will go unnoticed.
d. despite the consequences or costs.
Which form of business entity was created primarily to shield innocent owners,
particularly those in professions, from malpractice liability generated from other owners
in the firm?
a. the limited partnership
b. the limited liability partnership
c. the limited liability company
d. none of the above
A limited partnership can be formed by one (1) or more __________ partners and one
(1) or more __________ partners.
a. unreserved; reserved
b. active; silent
c. licensed; unlicensed
d. general; limited
An examination of goods excludes any implied warranty with respect to a defect that:
a. is apparent after a reasonable examination is made.
b. will not be apparent without chemical analysis.
c. will not be apparent until the goods are processed or used in manufacturing.
d. is unknown to all parties and is not detectable by reasonable examination.
Will the law enforce every promise?
a. Yes, in all cases.
b. Yes, with or without consideration.
c. Generally yes, if consideration is given for the promise.
d. Yes, but only if there is no consideration.
Who is entitled to file a motion to dismiss?
a. defendant only
b. plaintiff only
c. both plaintiff and defendant
d. none of the above
An offer that is indefinite may be clarified by reference to another writing through:
a. incorporation.
b. reference.
c. annotation.
d. indexing.
If a bank pays a check whose face has been altered to increase the amount above that
which the drawer intended to pay, the bank:
a. is liable to the drawer for the amount of the increase.
b. is liable to the drawer for the full amount of the check.
c. incurs liability only if it failed to examine the check before payment.
d. incurs liability only if the drawer made the alteration.
The first action generally attempted by the EEOC is:
a. litigation.
b. conciliation.
c. mediation.
d. arbitration.
A holder through a holder in due course:
a. has greater rights than a holder in due course.
b. has fewer rights than a holder in due course.
c. has the same rights as a holder in due course.
d. must meet the requirements for becoming a holder in due course in order to achieve
holder in due course status.
When a debtor makes a payment to a creditor specifying how it should be applied, the
creditor must apply the payment:
a. as directed by the debtor.
b. to the oldest outstanding debt.
c. to the most recent outstanding debt.
d. to the largest outstanding debt.
An incontestability clause ordinarily bars contest of the validity of a life insurance
policy by the insurer after the lapse of:
a. sixty (60) days.
b. one (1) year.
c. two (2) years.
d. ninety (90) days.
If taxes or assessments on leased premises are increased because of improvements
made by the tenant the:
a. landlord is only liable for such increases if the improvements stay with the property.
b. landlord is liable for such increases whether or not the improvements stay with the
property.
c. landlord is liable for such increases only to the extent that the improvements actually
increase the fair market value of the property.
d. tenant is always liable for such increases.
__________ is a federal law that recognizes digital signatures as authentic for purposes
of contract formation.
a. Cyber-sign
b. We-sign
c. Electra-sign
d. E-sign
Consumer defenses:
a. are preserved by a FTC regulation.
b. are provided for by the CISG.
c. are contained in UCC Article 2.
d. none of the above.
A bilateral contract consists of a:
a. promise for an act.
b. promise for refraining from acting.
c. promise for a promise.
d. promise to contract.
A bond:
a. that is unsecured is called a debenture bond.
b. is a negotiable security
c. generally has a life of five years or longer.
d. all of the above.
__________ property means land and things embedded in the land.
a. Real
b. Personal
c. Intangible
d. Tangible
Which is not an element of attachment?
a. the filing of a financing statement
b. a security agreement
c. value received by the debtor
d. the debtor has rights in the collateral
An employer may be liable on the theory of negligent hiring:
a. when it is shown the employer knew the employee would create an undue risk of
harm in carrying out job responsibilities.
b. by hiring an individual with a criminal record.
c. whether or not prospective employees fill out applications forms and are subject to
pre-employment background checks and character qualifications.
d. all of the above.
An automatic stay:
a. arises only upon the filing of a voluntary petition.
b. prevents any further interest from accruing on a debtor’s outstanding debts.
c. prevents creditors from taking action outside of the bankruptcy proceeding against a
debtor.
d. ends if a debtor attempts to incur additional debt after a petition has been filed.
The Racketeer Influenced and Corrupt Organizations (RICO) Act authorizes both
criminal and civil actions.
An antimodification clause specifies that a waiver to any breach automatically modifies
the contract .
Creditors receive an automatic 30-day temporary perfection in negotiable instruments
taken as collateral.
Ethics is a philosophical concept that deals with values related to the nature of human
conduct.
The storage of goods in a warehouse and the shipment of goods by a common carrier
are examples of special bailments.
Instruments may not be negotiated if they have been dishonored by non-acceptance.
Beth Roberts purchased a “new” car from Honest John’s Car Lot six months ago. The
sales agreement expressly described the vehicle as a new car, and all usual factory
papers accompanied the sale. However, Beth discovered that the car actually was
acquired by Honest John’s from another dealer who had used it as a demonstrator and
loaned it to business friends on a regular basis. The car had more than 10,000 miles on
it, a fact that had been concealed by turning back the odometer. Beth also discovered
that Honest John’s apparently had engaged in this practice before. Beth is suing for
breach of contract. She is asking for compensatory damages equal to the difference
between the new car price she paid and the average price the vehicle would have
brought as a used car. In addition, she is asking for damages in the amount of $5,000.
Honest John’s attorney has told Beth that she will fight both claims and has advised
Beth that the court will not award $5,000 as punitive damages for such a suit. What do
you think?
A lessor can always refuse to renew the lease of a tenant who reports the landlord to the
fire department for violation of fire safety laws.
Franchise disclosures are not required under federal law.
The greatest risk to purchasing online is providing your credit card information to the
seller.
The NLRA prohibits discrimination against employees for engaging in union activities
even if they are warned of the possible consequences of their union activities.
Only the parties who signed the original contract can have rights with respect to that
contract.
The law requires parties to be fair and reasonable in the making of a contract.
When a nationally-known neurosurgeon in Chicago, Illinois sells her practice, the
contract may specify that the seller will not practice within a 100-mile radius of
Chicago for one year.
If a contract calls for both rendering services and supplying materials to be used in
performing the services, the contract is classified according to its dominant element.
Grievance procedures established in most collective bargaining agreements provide a
means by which persons claiming the contract has been violated may have their cases
decided by impartial third parties.
A party to a sales contract may demand at any time that the other party provide
adequate assurance of performance.
The holder of a claim that is the subject of a bona fide dispute may be counted as a
petitioning creditor.