The Revised Article 9 of the Uniform Commercial Code governs unsecured transactions
in personal property.
The FDA may remove from commerce any cosmetics that contain unsubstantiated
claims of preserving youth or increasing virility.
A general partner who breaches the duty of loyalty must disgorge any profits made from
the breach to the partnership.
A promise to pay engraved on a rock fulfills the permanency requirement of negotiable
instruments and is considered as a valid instrument.
Usury laws set a lower limit on the interest rate that can be charged on certain types of
loans.
Excuse of nonperformance due to natural disasters is typically covered under a force
majeure clause.
The Fair and Accurate Credit Transactions Act is a federal statute that regulates credit
reporting agencies.
The Clean Water Act, which is administered by the U.S. Coast Guard, requires the oil
industry to adopt procedures and contingency plans to readily respond to and clean up
oil spills.
Immunity from prosecution refers to the government’s agreement to quash a trial owing
to the defendant’s physical health.
The right to dispose of goods is the right of a lessor to stop delivery of goods in transit
if he or she learns of the lessee’s insolvency.
A person who has dealt with an insane person need not place that insane person in
status quo if the contract is either void or voided by the insane person.
The Restatement of the Law of Contracts is the agreed upon federal law in the United
States.
GAAPs and GAASs are used to determine the conduct of a “reasonable accountant” in
negligence suits.
LLPs are governed by federal law.
If the sale agreement is silent as to whether an item is a fixture, the item is treated as a
fixture.
The corporate officers are elected by the board of directors at such time and by such
manner as prescribed in the corporation’s bylaws.
The SEC is an agency composed of twenty-five members who are appointed by the
president.
A party may not rescind a contract if there has been a mutual mistake of a material fact.
The corollary to the rule of right to information is that each partner has a duty to
provide such information upon the receipt of a reasonable demand.
The shipment of conforming goods signals an acceptance of a buyer’s offer.
Small Company Offering Registration is a method for small companies to sell up to $1
million of securities during a 12-month period to the public by using a
question-and-answer disclosure form called Form U-7.
A system in which a shareholder can accumulate all of his or her votes and vote them
all for one candidate or split them among several candidates is known as the straight
voting system.
Laws that impose penalties for drunk driving are examples of Sociological School of
jurisprudential thought.
The Digital Millennium Copyright Act is a federal statute that prohibits unauthorized
access to copyrighted digital works by circumventing encryption technology.
During a cross-examination, a defendant’s attorney can ask questions that were not part
of the direct examination.
The drawee is also called the acceptor of the draft.
Any property, money, or other benefit received by the agent in the course of an agency
belongs to the agent.
Professional corporations are also referred to as public corporations.
An ambiguity in a contract does not constitute a mutual mistake of a material fact.
An S corporation can be a member of an affiliated group of corporations.
A settlement agreement is only effective if all sides involved in the dispute sign it.
In criminal cases, a grand jury determines whether a person is guilty or innocent.
Duty of care by a member to an LLC is a limited duty because it does not include
ordinary negligence.
Stock dividends do not increase a shareholder’s proportionate ownership interest.
The Toxic Substances Control Act requires stationary sources to install equipment and
technology to control emissions of toxic substances.
A successful plaintiff in a Title VII action can recover back pay and reasonable
attorneys’ fees.
In addition to covering physical injuries, workers’ compensation insurance covers stress
and mental illness that are employment related.
Helga works as a nurse in a government-run hospital. She has to work 40 hours a week,
from 10 pm to 6 am every day. Which of the following is true of this scenario?
A) Helga is not entitled to receive overtime pay as medical staff does not qualify for it.
B) Helga can receive minimum wages and overtime pay only if she works more than 60
hours a week, as she is a government employee.
C) Helga cannot receive overtime pay as government employees are exempt from it.
D) Helga can receive overtime pay if she works more than 40 hours a week.
A patent number is a number assigned to a patent ________.
A) during its application process
B) when the patent is pending
C) once the patent is granted
D) when it comes under investigation
According to ICANN, a party that registers a domain name with new TLD suffixes
________.
A) is prohibited from using names of industries and professions
B) can register the domain name in languages other than English
C) should not use the names of cities as the domain name
D) can obtain the domain name at a low cost
A(n) ________ occurs when there is a transfer of both rights and duties under a
contract.
A) assignment and delegation
B) declaration of duties
C) assumption of duties
D) discharge
Price fixing ________.
A) is a reasonable violation of Section 1 of the Sherman Act
B) is a process seen exclusively among sellers of goods and services
C) is permissible as it helps consumers or protects competitors from ruinous
competition
D) also involves fixing the quantity of a product or service to be produced or provided
Chan, Yuvi, Betty, and Bob form a manager-managed LLC that sells antique
commodities online. Yuvi and Bob are named managers of the LLC. Betty secretly
starts a competing business to conduct online auctions over the Internet. Which of the
following is true of the given scenario?
A) All the members can be held liable for breaching their duty.
B) Betty is liable for breaching her duty of care to the LLC.
C) Betty is liable for breaching her duty of loyalty to the LLC.
D) Betty can compete with the LLC without any legal liability.
Which of the following branches of the United Nations is primarily responsible for
maintaining international peace and has authority to use armed force for this purpose?
A) the General Assembly
B) the Secretariat
C) the Security Council
D) the International Court of Justice
Which of the following is a distinct characteristic of a check?
A) It always draws its money from a financial institute.
B) It is created when credit is extended to a buyer by a seller.
C) It is a two-party instrument.
D) It is an unconditional written promise to pay.
Which of the following can be patented as a design patent?
A) an academic book on chemical engineering
B) a blueprint of a hood ornament of a car
C) a photograph of a rare comet sighting
D) a map excavated from an archaeological site
SEC Rule 506 is known as the ________.
A) nonissuer exemption
B) intrastate offering exemption
C) private placement exemption
D) interstate offering exemption
Martha draws a check payable to the order of Stella. Stella indorses the check to Karen.
But Leslie steals the check from Karen, forges Karen’s indorsement, and cashes the
check at a liquor store. Who is liable to the check?
A) the liquor store
B) Martha
C) Stella
D) Leslie
What is the similarity between the lessee’s rights of capture and replevy?
A) Both are invoked to obtain a decree of specific performance.
B) Both are invoked when a lessee wants to cancel a contract.
C) Both help the lessee in stopping shipments in transit.
D) Both help the lessee recover goods from the seller.
Stelwire LLC, a vintage car dealer, advertises the sale of a 1964 Ford Thunderbolt.
Ralph responds to the advertisement with an offer of $80,000 for the car. Stelwire signs
a written assurance to keep that offer open to Ralph for a fortnight. Five days before the
fortnight is up, Stelwire sells the car to another buyer. At the end of the fortnight period,
Ralph tenders $80,000 for the car, but the car has already been sold. Ralph then buys
the same model car from another dealer for $90,000 and sues Stelwire for breach of
contract. The court rules that Stelwire is liable to Ralph for breach of contract, and
orders Stelwire to pay Ralph the difference of $10,000 he paid extra to the second
dealer for the car. Which of the following rules governs the execution of this contract?
A) firm offer rule
B) mirror image rule
C) battle of the forms rule
D) gap-filling rule
________ is defined as the substantial likelihood that a person either committed or is
about to commit a crime.
A) Reasonable suspicion
B) Probable cause
C) Reasonable doubt
D) Preponderance of evidence
Which of the following is true of a surviving corporation?
A) It releases its title to property to the merged corporation.
B) It gains all the rights and privileges of the merged corporation.
C) It relieves itself of all its liabilities that are transferred to the merged corporation.
D) It survives during the merger and ceases to do so after the merger.
________ is a form of property insurance that insures an automobile from loss or
damage due to causes other than collision.
A) Omnibus insurance
B) Comprehensive insurance
C) Coinsurance
D) No-fault automobile insurance
The state of having died without leaving a will is known as ________.
A) ademption
B) intestate
C) abatement
D) escheatment
Chancery courts were also known as ________.
A) law courts
B) equity courts
C) criminal courts
D) merchant courts
Martha contacts a bakery to get a cake for her son’s birthday party. She tells the baker
that she will pay him $150 for the cake if he delivers the cake on Friday evening. If the
baker does not deliver the cake on Friday evening, which of the following will hold
true?
A) Martha can sue the baker to recover $150 in damages.
B) Martha can sue the baker but cannot recover damages.
C) The baker has to pay $150 plus cost of the replacement cake to Martha as he entered
into a verbal contract with her.
D) Martha cannot sue the baker.
Which of the following is true of a joint venture corporation?
A) The joint venturers are personally liable for debts of the joint venture corporation.
B) Joint venturers do not owe each other fiduciary duties as a venture is a single
business transaction.
C) The management rights of joint venturers in a joint venture are divided by the ratio
of their capital investment.
D) Each joint venture is liable for the debts and obligations of the joint venture.
The term ________ refers to a third party who is not in privity of contract but who has
rights under the contract and can enforce the contract against the promisor.
A) third-party contractor
B) third-party assignee
C) sub-assignee
D) intended third-party beneficiary
Stare decisis is the doctrine of ________.
A) providing proof to assert a fact in court
B) adhering to legal precedent
C) separating powers between state and religion
D) ensuring all legal rights are provided to a person when otherwise deprived of them
Which of the following rights was provided under the Sixth Amendment?
A) right against self-incrimination
B) right to public jury trial
C) right to due process
D) double jeopardy
Which of the following elements has to be proved for a contract to be deemed
unconscionable?
A) that the stronger party entered the contract under duress
B) that the parties had equal economic resources at their disposal
C) that the parties possessed severely unequal bargaining power
D) that the dominant part had justly used its economic resources
Which of the following best describes writ of attachment?
A) It is a prejudgment court order that permits the seizure of a debtor’s property that is
in the possession of third parties.
B) It is a postjudgment court order that permits the seizure of a debtor’s property that is
in the possession of third parties.
C) It is a postjudgment court order that permits the seizure of a debtor’s property that is
in the debtor’s possession.
D) It is a prejudgment court order that permits the seizure of a debtor’s property that is
in the debtor’s possession.
Which of the following is an example of an e-signature?
A) using a credit card at the supermarket to pay for groceries
B) using a debit card to fill gas as the local gas station
C) ordering food over the phone and paying with a credit card
D) paying the electric bill online using a smart card
________ corporations are private corporations that are formed for charitable,
educational, religious, or scientific purposes.
A) Privately held
B) Publicly held
C) Service
D) Nonprofit
Under negligence, a person is liable only for ________ events.
A) intervening
B) foreseeable
C) superseding
D) supervening
A ________ is a gratuitous bailment that arises when the bailee is requested to care for
the bailor’s property as a favor.
A) bailment for the partial benefit of the bailee
B) mutual benefit bailment
C) bailment for the sole benefit of the bailee
D) bailment for the sole benefit of the bailor
When one of the spouses owning a community property dies, and there is no will, the
surviving spouse automatically receives one-half of the community property; and the
other half passes to the heirs of the deceased spouse, according to a(n) ________.
A) intestate statute
B) zoning ordinance
C) express easement
D) nonconforming use
Which of the following isone of the four basic requirements for contract formation and
enforcement?
A) A promise must be supported by a signed written document and an advance
payment.
B) The parties must have contractual capacity.
C) The object of the contract must be ethical.
D) Both parties to the contract must be at least 21 years old.
________ is an ethical theory where a person adheres to rules or commands that are
from an outside source, like a book or a central figure.
A) Ethical fundamentalism
B) Utilitarianism
C) Ethical relativism
D) Rawls’s social justice theory
Which of the following must be included in an article of incorporation?
A) The minutes of the first organizational meeting of the board of directors.
B) The number of shares the corporation is authorized to issue.
C) The dissolution terms of the incorporation.
D) The corporate seal must be used in the articles of incorporation.
The electronic data and record system of the Securities and Exchange Commission is
known as ________.
A) EDGAR
B) NASDAQ
C) MICEX
D) SPSE
What are prepayment and acceleration clauses? How do these clauses help the
borrower?
Differentiate between insurgent and incumbent directors and discuss the benefits of a
proxy contest involving them.
Can an offer be accepted if it is not communicated to the offeree by the offeror? Explain
with an example.
Explain how the Uniform Commercial Code (UCC) mandates the identification of
goods when the parties to a contract do not agree on a time and manner to do the same.
Why did the Congress enact the federal Sarbanes-Oxley Act of 2002? What are the
goals of this act?
Discuss the procedures involved in Chapter 13 plan of payment.
Write a short note discussing partial comparative negligence and its suitability as a
middle ground between contributory and comparative negligence.
Explain how the RICO Act is used against organized crime.
What are the elements that must be shown in order to apply the doctrine of promissory
estoppel? Provide an example to illustrate them.
The city of Newvale removes a billboard on the highway that was put up by Fizzard,
Inc., a soft drink manufacturer, advertising the soft drink it had launched recently. The
city council removed the billboard as they feared that it would distract motorists and
other road users. Fizzard challenges the decision taken by the city council of Newvale.
Discuss if the city council of Newvale is justified in prohibiting billboards.
If a person were to get a speeding ticket despite him not knowing he was over speeding,
would the person be liable for negligence or intentional tort?
Discuss the significance of the Zippo Manufacturing Company v. Zippo Dot Com, Inc.
case in terms of jurisdiction in cyberspace.
Explain how divorce cases are settled between the parties prior to trial. Can such
arrangements inadequately lead to trial?
Explain the process involved in perfection by filing a financing statement.
Describe the structure of the federal government.
In what ways does the Williams Act affect tender offers and those involved in tender
offers?