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Which of the following relieves an employee of the hassle of separately filing charges
under Title VII with the EEOC and with the state agency?
A. Featherbedding by the EEOC
B. Worksharing agreements of the EEOC
C. A "right-to-sue" letter by the EEOC
D. Yellow-dog contracts of the EEOC
The implied warranty of fitness for a particular purpose is violated when the goods are:
A. unfit for any use.
B. unfit for the ordinary use for which such goods are used.
C. unfit for the particular use that the buyer intends.
D. unfit for the particular use that the buyer intends, and the buyer is a merchant.
Goods are being sold by Anne in Seattle and shipped by ABC Railroad to Brian in
Portland, Oregon. In this situation, the term "FOB Seattle" means that the risk of loss
passes from the seller to the buyer when:
A. the goods are identified in Seattle.
B. the goods are placed at the seller's warehouse loading dock in Seattle.
C. the goods are delivered to ABC Railroad in Seattle.
D. the goods leave the city limits of Seattle.
Which of the following is most true about stop-payment orders?
A. Their validity is only for 14 days.
B. Their validity is only for six months.
C. They must give the bank 14 days to act on the order.
D. They can be oral or written.
Baronial Company plans to make a registered offering of its preferred shares pursuant
to the Securities Act of 1933. After filing a registration statement with the Securities
and Exchange Commission but prior to its effective date, which of the following will
violate Section 5 of the Securities Act of 1933?
A. Sending letters to 50 prospective investors noting that projected earnings are up 15
percent.
B. An oral offer at a sales meeting attended by 50 prospective investors.
C. An oral offer to sell the shares made by telephone to 50 prospective investors.
D. In-person oral offers to sell the shares to 50 prospective investors.
Winston contracts to sell a plot of land called Blackacre to Paris for $500,000. Winston
breaches the contract and Paris sues him. Blackacre's reasonable market value at the
time of the breach was $525,000. Paris can recover:
A. nothing, for he hasn't really suffered any harm.
B. nothing, because specific performance is his only remedy here.
C. only $25,000.
D. the entire $500,000.
An agreement in which a party promises to supply all the other party's needs for a
particular commodity is called a(n):
A. requirements contract.
B. composition agreement.
C. output contract.
D. nominal consideration.
In case of conflict of ownership between employee and employer over a trade secret,
the employer is normally held to be the owner when:
A. the employee agreed to divulge or use trade secrets.
B. other employees had no contribution in the work.
C. the employee was hired to do work related to it.
D. the employee was not given adequate compensation for the work.
If a client establishes fraud against a professional, he/she is more likely to receive:
A. compensatory and consequential damages.
B. punitive and consequential damages.
C. compensatory and punitive damages.
D. only consequential damages.
Which of the following distinguishes a copyright from a patent?
A. Copyrightable works need not be novel.
B. Copyright law gives exclusive rights to the creator of a work.
C. Copyright laws prevent others from using the work originally created by someone.
D. There are proper copyright laws in the U.S.
Under the Model Business Corporation Act (MBCA), a prospective shareholder may
not revoke a preincorporation subscription for a _____ period, in the absence of a
contrary provision in the subscription.
A. nine-month
B. one-year
C. two-year
D. six-month
Lara is a partner at Matador Services, a management consulting firm. She makes an
agreement with Regal InfoTech whereby Matador will provide management consulting
services for $75,000 to Regal, on the condition that Regal pays her $5,000 personally.
Which of the following is true of this situation?
A. Lara has placed her own interests above those of the partnership.
B. Lara has exceeded her actual authority.
C. Lara is competing against her partnership.
D. Lara has not exercised her duty to serve.
_____ allows individuals to inspect files that agencies maintain on them and to request
that erroneous or incomplete records be corrected.
A. The Privacy Act of 1974
B. The Disclosure act
C. The Government in the Sunshine Act of 1976
D. The Freedom of Information Act
In which of the following cases is it most likely that a plaintiff will only have to prove
negligence on the defendant's part to recover for defamation?
A. Statements that a U.S. Senator had someone killed while in office.
B. Statements that Madonna had someone killed.
C. A statement that you or I murdered an innocent person during a robbery.
D. A credit report on a construction contractor.
With regard to an LLLP, a _____ is conclusive proof that a limited partnership exists.
A. Domicile Certificate
B. Certificate of Authority
C. Certificate of Incorporation
D. Certificate of Existence
The permit program for any dredging or filling activity in a wetland is administered by
the:
A. Army Corps of Engineers.
B. Wetland Preservation Board.
C. Environmental Protection Agency.
D. National Institute of Health.
Which of the following is true about the Truth in Lending Act (TILA)?
A. Extending credit must be the creditor's primary business.
B. A creditor must require payment in more than two installments.
C. A debtor must be a natural person, not a business organization.
D. Consumer credit includes credit extended for agricultural purposes.
Gath Meat Packing Company is a meat processing business. To reduce costs and
increase profits, the president and CEO of Gath orders Gath's employees to violate
federal criminal meat processing laws. The United States Department of Justice
prosecutes Gath for criminal violations of the meat processing law. Has Gath committed
criminal violations?
A. Yes, because the president and CEO, a high-level administrator of Gath, authorized
the commissions of the crimes.
B. Yes, because a corporation is always liable for all the crimes committed by its agents.
C. No, because the board of directors did not authorize the president and CEO or the
other employees to violate federal law.
D. No, because a corporation is not liable for most crimes committed by its agents.
Carlita retires from Mortex Associates, a partnership. The business is continued by the
remaining partners. What is Carlita's liability on debts incurred while she was a partner?
A. Carlita has liability to the extent of her capital contribution.
B. Carlita is fully liable.
C. Carlita has no liability.
D. Carlita has liability to the extent of partnership assets at the time of dissociation.
If the seller has justifiably withheld delivery of the goods because of the buyer's breach,
the buyer may:
A. not recover any money nor goods he has delivered to the seller.
B. not recover the goods.
C. recover only goods which he has not delivered.
D. recover any money or goods he has delivered to the seller over and above the agreed
amount of liquidated damages.
A buyer is entitled to the remedy of specific performance when:
A. the contract is between merchants.
B. the contract is for unique goods.
C. the contract is for goods where the price is $500 or more.
D. the contract requires delivery in installments.
Three of the following render an instrument nonnegotiable; one does not affect
negotiability. Which of the following does NOT affect negotiability?
A. A draft that says: "Pay to the order of Sue Smith once she repairs my computer."
B. An instrument that says only: "This confirms my $1,000 debt to Sue Smith."
C. A note that says: "Payment is conditional upon the terms of the mortgage between
the parties dated June 1, 2000."
D. A notes that says: "This note is secured by the property described in the parties'
mortgage of June 1, 2000."
Which of the following is an exception to the general rule that rejections terminate
offers?
A. Unilateral contracts
B. Bilateral contracts
C. Firm offers
D. Option contracts
Abel hired Carr to restore Abel's vintage car for $800. The terms of their oral agreement
provided that Carr was to complete the work within 18 months. Actually, the work
could be completed within one year. Can Abel insist that the work be completed within
a year instead of the 18 months?
A. No, because the agreement covers services with a value in excess of $500.
B. No, because the agreement covers a time period in excess of one year.
C. Yes, because personal service contracts are exempt from the statute of frauds.
D. Yes, because the work can be completed within one year.
According to UCC section 3-401 which of the following does NOT constitute a valid
signature of a negotiable instrument?
A. A mark on the document
B. A word on the document
C. Leaving the document intentionally blank
D. Printing the name on the document
People who engage in abnormally dangerous activities:
A. are liable only if they are negligent.
B. are liable only if they intended to cause harm.
C. are liable only if they consciously disregard the risks inherent in that activity.
D. are liable even if they are not at fault.
Which of the following is most likely to be done by a court if it finds that a contract or a
term in a contract is unconscionable?
A. It will refuse to enforce the entire agreement.
B. It will impose punitive damages on the guilty party.
C. It will allow the injured party to recover damages.
D. It will ask for arbitration in the matter.
Which of the following is a principal's duty to his agent?
A. Duty of confidentiality
B. Duty not to receive a material benefit
C. Duty of segregation
D. Duty to reimburse
John received a check from his employer marked "pay to the order of John Jones." John
used this check to pay for groceries from ABC Foods. He wrote on the back of the
check: "pay to ABC Foods, for groceries." Was this check properly negotiated?
A. No, because the statement that the check was for payment to ABC Foods defeats this
negotiation.
B. No, because John did not indorse the check.
C. Yes, because John transferred possession of the check and ABC Foods acted in good
faith.
D. Yes, because a holder's signature is not always needed in order to negotiate a check.
A state law regulating the activities of a foreign corporation does not unduly burden
interstate commerce if:
A. the law serves both the state's and the foreign corporation's legitimate interest.
B. the foreign corporation has chosen the least burdensome means of promoting that
interest.
C. the legitimate state interest outweighs the statute's burden on interstate commerce.
D. a foreign corporation enters interstate commerce to do intrastate business in a state.
