One criticism of utilitarianism is that it treats morality as if it were an impersonal
mathematical calculation.
A noncustodial parent is obligated to contribute to the financial support of his or her
biological and adopted children.
According to the 2005 act, a debtor can be granted Chapter 7 relief only after four years
of following Chapter 7 relief.
The piercing the corporate veil doctrine is also called the alter ego doctrine because the
corporation becomes the alter ego of the shareholder.
The FTC requires the registration of the disclosure document with the Federal Trade
Commission prior to its use.
A strategic alliance allows the companies to reduce risks, share costs, combine
technologies, and extend their markets.
Accommodations are considered as acceptance rather than as a counteroffer.
The FTC may sue in a state or federal court to obtain compensation on behalf of
consumers.
A writ of attachment is a prejudgment court order that permits the seizure of a debtor’s
property that is in the debtor’s possession.
Under the intermediate scrutiny test, the government must have an exceptionally
important reason for treating persons differently because of their race in order for such
unequal treatment to be lawful.
UNICEF is funded by the monetary contributions of member nations, assessed based on
the size of each nation’s economy.
If an owner entrusts the possession of his or her goods to a merchant who deals in
goods of that kind, the merchant does not have the power to transfer all rights
(including title) in the goods to a buyer in the ordinary course of business.
Unlike a mediator, an arbitrator does not make a decision or an award.
The fictitious payee rule states that if an imposter forges the indorsement of the named
payee, the drawer or maker is liable on the instrument to any person who, in good faith,
pays the instrument or takes it for value or for collection.
A unilateral refusal to deal is a violation of Section 1 of the Sherman Act.
Businesses organized in the United States are not subject to laws of other countries in
which they operate.
A principal is not liable for the intentional and innocent misrepresentations made by an
agent acting within the scope of employment.
A person deriving his or her ethics from a religious book is an example of ethical
fundamentalism.
The courts have the discretion to award specific performance if the subject matter of the
contract is unique.
The common law of contracts allows the offeror to revoke the offer any time prior to its
acceptance.
Russia is a permanent member of the UN Security Council.
The Uniform Computer Information Transactions Act was passed by the U.S. Congress
and is the exclusive law in the area of electronic contracts and licenses, preempting
state law.
The U.S. law remains static despite the changes in society, technology, and the growth
of commerce.
An incidental beneficiary can hold the parties to a contract legally liable for not
rendering performance.
Personal property and the provision of services do not qualify as consideration.
A patent is a grant by the federal government upon the inventor of an invention for the
exclusive right to use, sell, or license the invention for a limited amount of time.
If an employee’s tips and direct employer payment does not equal the minimum wage,
the employer must make up the difference.
Firms that attempt or conspire to monopolize a relevant market may be found liable
under Section 2 of the Sherman Act.
A customer who has a checking account at a financial institution, and writes a check, is
the drawee of the check.
Corporate shares are freely transferable by a shareholder by sale, assignment, pledge, or
gift unless they are issued pursuant to certain exemptions from securities registration.
A utility patent is a patent that may be obtained for the ornamental nonfunctional design
of an item.
Privately held corporations are for-profit corporations that have hundreds or thousands
of shareholders, and their shares are traded on organized securities markets.
An employee who regularly performs at least one of the duties of an exempt executive,
an administrative, or a professional employee is known as a highly compensated
employee.
Recording statutes are intended to prevent fraud and to establish certainty in the
ownership and transfer of property.
A franchise agreement is an agreement that a franchisor and franchisee enter into that
sets forth the terms and conditions of a franchise.
It is illegal for a strike to begin during the mandatory 90-day cooling-off period.
The awarding of custody to a custodial parent is not permanent.
The right to dispose of goods allows lessors to replevy goods.
The modern rule and trend is to abandon the objective rule and adopt the fault rule.
A contract between a corporation and a holder that contains the terms of a debt security
is known as a(n) ________.
A) bond
B) indenture
C) debenture
D) liquidation
The destination contract differs from the shipment contract in that the destination
contract ________.
A) defines delivery to occur when the seller puts the goods in a carrier’s possession
B) is excluded from the purview of the perfect tender rule as legislated under the UCC
Statutes
C) applies to noncarrier cases of transactions between buyers and sellers
D) is said to be delivered when goods reach a specific destination
Which of the following is an example of corporate citizenship theory?
A) Milky Way Footwear donates shoes to underprivileged children in an orphanage in
its hometown.
B) Panorama Leathers pollutes a river with waste water from its tannery but
compensates the people affected by the polluted river.
C) Crimson, Inc. decides to keep running its unprofitable factory for the benefit of its
employees.
D) Amfin Pharmaceuticals increases the prices of its drugs to maximize its profits.
Which of the following is true for a minor under the infancy doctrine?
A) A minor is bound to the adult’s decisions in a contract between them.
B) A minor can disaffirm contracts he or she has entered into with adults.
C) A minor cannot enter into a legal contract with another minor.
D) A minor cannot choose to enforce a contract at his or her whim.
Under the written confirmation rule, the Statute of Frauds writing requirement can be
satisfied if ________.
A) a party to receive a confirmation does not know of its content
B) a party that receives the confirmation, signs it, and sends it back to the other
merchant within a reasonable time
C) a merchant does not give written notice of an objection to the contract within 10
days after receiving a confirmation
D) none of the parties to an agreement sends a written confirmation
Blue Rorschach, Inc. has an immediate requirement for laptops with bionic sensor
features. It contracts with Zenzo Computers and entrusts it with the delivery of such
laptops. However, the delivered laptops lacked the bionic sensors that Blue Rorschach
desired. Blue Rorschach immediately returns these laptops to Zenzo Computers. Which
of the following rights to remedy has Blue Rorschach, Inc. exercised in this scenario?
A) right to replevy goods
B) right to cure
C) right to reject nonconforming goods
D) right to obtain specific performance
Which of the following is enacted under state police power?
A) personal property laws
B) military laws
C) corporate governance laws
D) equal opportunity laws
Which of the following is true about an option contract?
A) If the offeree chooses not to buy the property, the money paid in consideration must
be returned.
B) If money is paid as consideration, then that is not applied to the sale price.
C) Death or incompetency of either party terminates an option contract.
D) The offer cannot be revoked during the option period.
________ are established by the legislative and executive branches of the federal
government to enforce and interpret statues enacted by the Congress and state
legislatures.
A) Commissaries
B) State courts
C) Administrative agencies
D) Councils
The ________ is a federal statute that provides for the automatic wage withholding of
child support payments from a noncustodial parent’s income.
A) Marriage Protection Act
B) Equal Protection Clause
C) Family Support Act
D) Defense of Marriage Act
Which of the following is true of the management of an LLC?
A) Members cannot become managers of an LLC.
B) A manager-managed LLC shares management powers between members and
managers.
C) A nonmember can become a manager of an LLC.
D) An LLC can be both member-managed and manager-managed simultaneously.
Alice offers Richard a chance to work in her affiliate marketing program which, she
claims, will make him a millionaire in three months. Richard makes the “mandatory
investment” of $12,000 and becomes an affiliate. Soon, he realizes that such a program
does not exist and that Alice has disappeared with the money. This is an instance of
________.
A) misrepresentation of law
B) fraud in the factum
C) fraud in the inducement
D) duress
A term in a contract that can reasonably be supplied by the courts is referred to as an
________.
A) intent term
B) unconditional term
C) objective term
D) implied term
Mr. Jacob, who is terminally ill, writes a will transferring all his assets to his daughter
Silvia, in the event of his death. The doctors say that Mr. Jacob will live for about six
months. The day after the will is written, Silvia wishes to transfer her expected
inheritance to her son, Jacob Jr. This assignment will be ________.
A) valid
B) conditionally valid
C) invalid
D) re-assignable by Jacob Jr.
________ is an antitrust principle which says that two or more persons can petition the
executive, legislative, or judicial branch of the government or administrative agencies
to enact laws or take other action without violating antitrust laws.
A) Noerr doctrine
B) Colgate doctrine
C) Nolo contendere
D) Small company doctrine
Which of the following legal documents establishes the U.S. federal government and
specifies its powers?
A) the Articles of Confederation
B) the U.S. Constitution
C) the combined list of state statutes
D) the set of codified laws called ordinances
The ________ says that when an administrative agency is created, it is given certain
powers; the agency can use only the legislative, judicial, and executive powers that are
given to it.
A) submission agreement
B) virtual courthouse
C) statute of limitations
D) delegation doctrine
Which of the following does Article 2A of the Uniform Commercial Code govern?
A) mixed sales
B) sale of goods
C) leases
D) letters of credit
Jennifer signs a promissory note to pay $2,500 to Clara. Clara negotiates the instrument
and indorses it to Anthony. Anthony alters the note to make the payment amount
$25,000 and negotiates the note to Nicholas. Nicholas indorses the note and negotiates
it to Mack. Nicholas and Mack are both unaware of the alteration done by Anthony. If
Mack presents the note to Jennifer for payment, how much, if anything is Jennifer
obligated to pay?
A) $25,000
B) $27,500
C) $2,500
D) Jennifer is not obliged to pay Mack.
A group of employees that a union is seeking to represent is known as a(n) ________.
A) combined conciliation unit
B) appropriate mediation unit
C) collective negotiation unit
D) appropriate bargaining unit
________ is one of the two important principles of Kantian ethics upon which its
universal laws are based.
A) Nihilism
B) Consistency
C) Egoism
D) Relativism
A unilateral contract is ________.
A) a promise for an act
B) a promise for a promise
C) an act for an act
D) an exchange of money
The ________ plan provides that existing shareholders of the target corporation may
convert their shares for a greater number of shares of the acquiring corporation.
A) employee stock ownership
B) flip-in rights
C) flip-over rights
D) voting rights
The general test of ________ is foreseeability.
A) legal cause
B) causation in fact
C) actual cause
D) direct cause
George made an offer to Jacob to sell his house for $1 million. The offer was received
by Jacob on the 1st of May, and he stipulated that he had 13 days to accept. But Jacob
could not arrange the money, and on 16th May, he made a counteroffer to George to
buy the house for $850,000. Which of the following is true about the original offer
made by George to Jacob?
A) It is terminated by the counteroffer.
B) It is still valid as the house has not been sold.
C) It is invalid due to lapse of the stated time.
D) It is invalid due to incompetency of the offeree.
A(n) ________ is negotiated by delivery, with the necessary indorsement.
A) bearer paper
B) order paper
C) promissory note
D) check
________ is an association of several Central American countries and the United States
designed to reduce tariffs and trade barriers among member nations.
A) NAFTA
B) ACFTA
C) DR-CAFTA
D) AKFTA
Nett Labs orders 30 desktop computers from iDeal, a local computer dealer. Nett Labs
requires that each computer has a 2.6 GHz processor, 500 GB hard disk, and Windows
operating system. iDeal supplies 30 desktop computers, each with a 2 GHz processor,
500 GB hard disk and Windows operating system. Which of the following terms hold
true for iDeal’s performance?
A) complete performance
B) material breach
C) substantial performance
D) anticipatory breach
What of the following is true about perfection by possession of collateral?
A) A creditor cannot take possession of the collateral until a financing statement is filed.
B) A creditor that has physical possession of the collateral does not have to file a
financing statement.
C) A creditor with financing statement has more privilege on the collateral than a
creditor with physical possession.
D) A financing statement can be filed only against intangible personal property placed
as collateral.
The purpose of the ________ is to make it easier for start-up companies to raise capital
through initial public offerings.
A) JOBS Act
B) STOCKS Act
C) Sarbanes-Oxley Act
D) Insider Trading Sanctions Act
Which of the following is a good faith purchaser?
A) a person who buys goods from a person with a voidable title
B) a person who buys stolen goods without being aware of it
C) a buyer who agrees to hold goods for a person till the delivery of the goods is made
D) a buyer to whom goods are delivered by a seller to sell on the seller’s behalf
Which of the following is true of a tender offer?
A) It can be closed before 20 days after the commencement of the tender offer.
B) It need not be notified to the management of the target company until the offer is
made.
C) It need not be extended if the tender offeror increases the number of shares it will
take.
D) It can be subjected to dissenting shareholder rights that are available to the
shareholders.
The lessor can exercise the ________ to claim damages that would have resulted from
the full performance of a breached contract plus an allowance for reasonable overhead
and incidental damages.
A) right to replevy goods
B) right to cover
C) right to cure
D) right to recover any lost profits
The ________ is a federal statute that makes it a crime to intercept an electronic
communication at the point of transmission, while in transit, when stored by a router or
server, or after receipt by intended recipient.
A) UCITA
B) ECPA
C) ACPA
D) ICANN
Why is maximize profits theory not acceptable in today’s business world?
What is the procedure to be adopted by a party to initiate a lawsuit?
Explain the origin of generic names with an example.
The state of Carterbridge regulates the sale of liquor within its boundaries. It passes a
statute permitting in-state liquor stores to sell liquor directly to customers and prohibits
out-of-state liquor houses from selling liquor directly to customers. Delightful Dreamz,
a liquor store from a neighboring state, challenges the statute passed by the state
legislation of Carterbridge, alleging violation of the Commerce Clause. Discuss the
outcome of the allegation made by Delightful Dreamz.
Evaluate the strengths and weaknesses of the rent-control ordinance.
Discuss arguments against Internet service providers being held liable for content
transmitted over their network by email users and websites.
Why is an agent not liable to the contracting party in a fully disclosed agency? Discuss
the significance of an agent’s signature.
How can a creditor perfect a security interest on collateral by physical possession?
Analyze and compare the types of decisions that justices of the Supreme Court can
reach.
How is a general partnership formed? Analyze the criteria for a business to qualify as a
general partnership under the Uniform Partnership Act.
Explain attorney-client privilege with an example.
Explain the circumstances under which email contracts are legally enforceable?
How does the community property theory differ from an equitable distribution theory in
dividing marital assets upon the termination of a marriage?
Travis mortgages his house to a financing firm called Smith & Sons for $200,000.
Smith & Sons fails to record the transaction in the local county office. However, it files
a financing statement to perfect its security interest on collateral. Without revealing the
details of his prior mortgage, Travis uses the same house to secure an additional
$150,000 from Cooper Associates one year later. Cooper Associates too files a
financing statement but it is a year later than that of Smith & Sons’ financing statement.
In this case, which creditor has the priority to claim interest in the collateral?
Taylor threatens Robin with physical harm if he fails to sign a real estate deal. Robin is
not interested in the deal as the property in question is a damaged property. However, he
ends up signing the contract in the fear of an attack. Is this contract enforceable against
Robin? Discuss the reasons.
How does the law maximize individual freedom?
What are the consequences of contracting while being intoxicated?
How is a sole proprietorship created? Analyze the personal liability of a sole proprietor
with an example.
Explain the different parties involved in a criminal action with examples.