When a debtor no longer has an obligation to pay a debt, that debt has been
a. terminated.
b. revoked.
c. completed.
d. discharged.
The Electronic Communications Privacy Act of 1986 is a federal statute that regulates
email.
a. True
b. False
Andy’s business is not able to pay its debts, and the prospects for its finances to improve
are slim. Andy decides not to continue the business. In this case, Andy should file a
voluntary petition for which type of bankruptcy?
a. Chapter
b. Chapter
c. Chapter
d. Chapter
Angela uses fraudulent means to induce Walter to enter a sales contract. Angela obtains
a voidable title to the goods.
a. True
b. False
We Care, a nonprofit environmental organization, believes that Quanaco is violating the
Clean Air Act. The EPA has not taken any action against Quanaco. We Care can file a
citizens suit against the EPA.
a. True
b. False
The police have a right to search any area in which the defendant does not have a
reasonable expectation of privacy. Which of the following, however, requires the police
to obtain a search warrant?
a. using a cotton swab to take a DNA sample of a person under arrest
b. looking at photos on a digital camera that was found while searching an arrested
suspect
c. listening in on a telephone conversation or searching the digital contents of a
cellphone
d. finding out what websites you have visited on your computer
In the absence of a specific law to the contrary, employers have the right to fire workers
for off-duty conduct.
a. True
b. False
The correct order of payment of claims from the debtor’s estate would be
a. secured claims, priority claims, unsecured claims.
b. secured claims, unsecured claims, priority claims.
c. priority claims, secured claims, unsecured claims.
d. priority claims, unsecured claims, secured claims.
Tess, a tenant, moves from her apartment in breach of the lease agreement. The
landlord, Lenny, may not attempt to rent the apartment until the date of the lease
expiration, and so has no recourse to minimize damages.
a. True
b. False
In determining if a partnership exists, the courts will consider all of the following
factors EXCEPT
a. management of the business.
b. actions of the persons involved.
c. the nature of the business.
d. profit.
Most, but not all, contract rights are assignable.
a. True
b. False
There are four types of illegal activity under Title VII of the Civil Rights Act of 1964.
Which of the following is NOT one of them?
a. Disparate treatment
b. Retaliation
c. Unattactiveness discrimination
d. Hostile environment
Regarding Title VII, the Supreme Court ruled that an employer may only discriminate
against a woman if the position she is seeking has been historically occupied by a male
more than 75 percent of the time.
a. True
b. False
Harold and Zack have pooled their money together to buy real estate but have filed no
formal papers to form a business. Harold, a lawyer, handles all the legal matters and
Zack, a real estate broker, finds buyers for the property they have subdivided. Harold
and Zack are engaged in a
a. partnership.
b. close corporation.
c. limited liability company.
d. professional corporation.
There are four elements to a defamation case and the plaintiff in any kind of lawsuit
must prove one of the four elements to prevail.
a. True
b. False
Under a contract, Danielle is required to paint a room with paint chosen by the
homeowners, the Flynns. After Danielle paints the room according to the contract
requirements, her duties under the contract are discharged.
a. True
b. False
If partners wish to maintain having protection against personal liability, it is essential to
comply with all the technicalities of a limited liability partnership statute.
a. True
b. False
Heather applied for a promotion, but her manager promoted a co-worker because the
manager knew Heather was seven months pregnant. The manager did not want to
promote someone who would probably be taking time off of work for childbirth and
child care. The manager has acted legally and reasonably to protect her companys
interests.
a. True
b. False
Which of the following is the MOST accurate statement regarding economic duress?
a. It is never grounds for rescission.
b. It is always grounds for rescission.
c. It is a UCC concept only.
d. It may be grounds for rescission.
Rudolph overhears Macy’s plans to go skydiving over spring break. Not really knowing
Macy, but figuring it’s worth a chance, Rudolph rushes out and buys an insurance policy
for $100,000 on Macy’s life. Macy does in fact meet her demise jumping out of the
airplane. Rudolph can collect the $100,000.
a. True
b. False
In the case of Panavision Int’l v. Toeppen, the Ninth Circuit Court of Appeals affirmed
the district court’s decision. This means that the Ninth Circuit Court of
Appealsapproved the district court’s decision and upheld the outcome in the case.
a. True
b. False
Alicia and Ted have a written agreement wherein they will share the losses of their joint
business. This agreement is strong evidence they are partners.
a. True
b. False
An employment contract is an example of a personal satisfaction contract.
a. True
b. False
John is a CPA in charge of auditing his client, McMillen & Co. John’s duty of care to
McMillen will most likelybe breached if John
a. gives his client an oral report instead of a written report.
b. gives his client incorrect advice based on an honest error in judgment.
c. fails to give tax advice that would save his client money.
d. fails to follow generally accepted auditing standards (GAAS).
SharCo and Blyron Productions are each applying for a television license. In deciding
which applicant is better qualified, the FCC will hold an initial hearing before
a. the OSHA.
b. an administrative law judge.
c. an administrative mediator.
d. a House-Senate Conference Committee.
Under the Truth In Lending Act, a lender must disclose all of the following EXCEPT
a. the average percentage rate charged by competitors.
b. the amount financed.
c. the annual percentage rate (APR).
d. the finance charge.
Reformation is
a. a type of restitution.
b. the most common of all remedies.
c. a form of quasi-contract.
d. the least common of all remedies.
Even if a statutes words have ordinary, everyday significance, the court will look at the
legislative history of the law and public policy in order to interpret the statute.
a. True
b. False
Before filing a derivative lawsuit, shareholders must
a. notify the board that the corporation has been wronged and ask the board to bring suit
in the name of the corporation directly.
b. notify the Secretary of State that the corporation has been wronged and ask the
Attorney General to file the lawsuit on behalf of the corporation.
c. hold a special meeting, and a majority of the shareholders must vote to file the
lawsuit.
d. place the lawsuit on the company’s proxy statement, and the proposal must receive a
majority vote.
When one person agrees to pay the debt of another as a favor to that debtor, it is called
a. promisory representation.
b. a mutual promise.
c. promisory estoppel.
d. a collateral promise.
If Walter becomes incompetent to manage his affairs,
a. his chosen attorney-in-fact can make decisions for him if he appointed the person in a
durable power of attorney with a springing power to become effective upon Walters
incompetence.
b. a court will allow an immediate family member to manage his affairs.
c. his will becomes effective, and his executor or executrix will manage his business
and personal decisions.
d. his property will be placed in a trust until such time as he is able to manage his affairs
himself.
Denton agreed to build a cedar deck for the Thrashers for $7,000. After he began the
work, the Thrashers asked him to add cedar flower boxes at one side. Denton replied he
would, but it would cost an additional $600. The Thrashers would not be obligated to
pay the additional sum because the original agreement already obligated Denton to
complete the deck for $7,000.
a. True
b. False
What prevents the market system from achieving a clean environment on its own?
a. Externalities.
b. Inefficiently managed business.
c. Remainders.
d. SIPs.