Lou writes a check to Bud but leaves out some essential components that are required
on the check. This check would be described as ________.
A) valid
B) executed
C) executory
D) unenforceable
The Uniform Limited Liability Company Act (ULLCA) is not law unless a state adopts
it as its LLC statute.
Norwing LLC is looking to fill its chief executive officer position as its current CEO
will soon be retiring. Norwing receives applications for this position from many
persons, including Henry, an African-American. Henry is the best-qualified applicant
for the job. If Norwing does not hire him because he is an African-American, the
company has engaged in ________ discrimination.
A) age
B) race
C) color
D) gender
________ is a rule that says that an accountant is liable only for negligence to third
parties who are in privity of contract or in a privity-like relationship with the
accountant.
A) The foreseeability standard
B) The Ultramares doctrine
C) Due diligence defense
D) Disclaimer of opinion
A title for goods obtained by a seller through fraud, impersonation, or a dishonored
check is referred to as a(n) ________.
A) unenforceable title
B) voidable title
C) conditional title
D) unequivocal title
In a creditor beneficiary contract, if the new debtor fails to perform according to the
new contract, the creditor beneficiary can ________.
A) enforce the original contract against the original debtor
B) sue the original promisor on the second contract
C) hold both the new and the original debtors liable for nonperformance
D) benefit from imposing the new contract on the original debtor
A(n) ________ is used if the obligor does not want to deal with or render performance
to an unknown third party.
A) anti-assignment clause
B) approval clause
C) novation agreement
D) anti-delegation clause
________ refers to an arrangement in which a seller delivers goods to a buyer to sell on
his or her behalf.
A) Consignment
B) Void entitlement
C) Entrustment
D) Leasing
Which of the following is true of compensation offered by an LLC?
A) Managers of an LLC are entitled to compensation but not benefits.
B) Members are not entitled to compensation for their services toward the LLC.
C) Members are not indemnified for liabilities in the ordinary course of business.
D) Nonmanager members are not entitled to remuneration for services toward the LLC.
When is credit said to have occurred?
A) when one party reclaims money lent to another party
B) when one party sells goods to another party for cash
C) when one party gives a loan to another party
D) when one party pays back money that he owes to another party
A(n) ________ is an exemption from registration that permits local businesses to raise
capital from local investors to be used in the local economy without the need to register
with the SEC.
A) intrastate offering exemption
B) private placement exemption
C) Regulation A offering
D) nonissuer exemption
Which of the following is true of strict liability?
A) Strict liability is liability with fault.
B) Only the manufacturer of a defective product is strictly liable for the injuries caused
by that product.
C) Strict liability does not require the injured person to prove that the defendant
breached a duty of care.
D) Defendants cannot claim monetary recovery in cases of strict liability.
Which of the following rights is generally assignable in the United States?
A) personal service contract
B) a future right
C) legal action
D) recovery of debt
The act or process of a minor voluntarily leaving home and living apart from his or her
parents is referred to as ________.
A) restitution
B) emancipation
C) restoration
D) adhesion
Which of the following is true of an equitable estoppel?
A) It contains provisions to exempt the party that has misrepresented the facts from
being sued.
B) It states that any oral or written words outside of the four corners of a written
contract are inadmissible in court regarding a dispute over a contract.
C) It contains a detailed definition section”usually called a glossary”that defines many
of the words and terms used in a contract.
D) It prevents the promisor from raising the Statute of Frauds as a defense to the
enforcement of an oral contract.
Interests or instruments that are expressly mentioned in securities acts are known as
________.
A) common securities
B) implicit securities
C) investment contracts
D) statutorily defined securities
________ refer to cases arising under the U.S. Constitution, treaties, or federal statutes
and regulations.
A) Federal question cases
B) Diversity of citizenship cases
C) Federal crimes cases
D) Copyrights and trademarks cases
A(n) ________ is filed by the appellant’s attorney with the court that sets forth legal
research and other information to support his or her contentions on appeal.
A) opening brief
B) responding brief
C) sequester
D) remittitur
________ constitutes legal insanity.
A) Weakness of intellect
B) Mild delusion
C) Mild emotional instability
D) Brain damage
Which of the following is true of Section 11 of the Securities Act of 1933?
A) It permits injured private parties to bring criminal action against fraudulent
registration statements filed by issuers.
B) It imposes liability on those who are negligent in not discovering the fraud.
C) It allows an issuer to assert a due diligence defense against the imposition of Section
11 liability.
D) It cannot be imposed on cases involving negligent omission of a material fact in a
registration statement.
Which of the following is the difference between ethical fundamentalism and
utilitarianism?
A) Ethical fundamentalism focuses on outside source for ethical rules, while
utilitarianism focuses on rules that provide greatest good to society.
B) Ethical fundamentalism focuses on moral rules based on a social contract, while
utilitarianism focuses on universal rules based on consistency and reversibility.
C) Ethical fundamentalism focuses on rules that provide greatest good, while
utilitarianism focuses on outside source for rules.
D) Ethical fundamentalism focuses on rules based on individual feelings, while
utilitarianism focuses on outside source for rules.
Most union elections are contested by the employer. The ________ is required to
supervise all contested elections where a simple majority vote wins the election.
A) Congress of Industrial Organizations
B) American Federation of Labor
C) National Labor Relations Board
D) Election Assistance Commission
Alan tells Sherry that he will pay her $5,000 if she runs the Boston Marathon. Once
Sherry starts running the marathon, Alan ________.
A) can revoke the contract as informal verbal agreements are not binding
B) cannot revoke the contract
C) can reduce the money on offer
D) can only increase the money on offer
A collection of criminal statutes is referred to as a________.
A) constitution
B) bill
C) charter
D) penal code
Jean says to Joan, “If you promise to feed my dog each day while I am out of town next
week, I’ll pay you $100.” Joan replies, “I’ll absolutely do that, I hope you have a nice
trip.” Joan then feeds the dog, after which Jean paid her. At what point did a contract
come into existence?
A) when Jean made the offer to Joan
B) when Joan said that she would feed Jean’s dog
C) when Joan completed the final feeding of Jean’s dog
D) when Jean paid the $100 to Joan
Which of the following is true of the Bankruptcy Abuse Prevention and Consumer
Protection Act of 2005?
A) It made it easier for debtors to be relieved of much of their debt.
B) It made it much more difficult for debtors to escape with their debts.
C) It was criticized for being too debtor friendly.
D) It was enacted as a result of lobbying by consumer groups and home owners.
The ________ Act of 2002 is a federal statute that establishes rules to improve
corporate governance, prevent fraud, and add transparency to corporate operations.
A) Sarbanes-Oxley
B) False Claims
C) Glass-Steagall
D) Lanham
Which of the following similarities is observed between tie and plurality decisions
reached by the U.S. Supreme Court?
A) the decisions can be appealed against in the U.S. courts of appeals
B) the decisions do not set precedent for later cases
C) the decision of the lower court is affirmed
D) new evidence and testimony is heard before reaching decisions
________ are standards for the preparation and presentation of financial statements.
A) ISO 1:2002
B) General technical delivery conditions
C) Generally accepted accounting principles
D) Generally accepted auditing standards
The bankruptcy estate is created upon the ________ of a bankruptcy case.
A) commencement
B) continuance
C) termination
D) discharge