________ is a subjective test that applies to contracts involving individual taste and
comfort.
A) Reasonable person test
B) Personal satisfaction test
C) Express condition test
D) Cognitive inventory test
Kelly borrows $12,000 from Terry Oswald to pay for her mother’s surgery. The
debt-repayment period is 15 months but Kelly manages to repay it in 11 months. Which
of the following must be filed by Oswald after receiving the final installment of his
money?
A) a financing statement
B) a statement of collateral claim
C) a termination statement
D) a continuation statement
After the defendant’s attorney has finished calling witnesses, the plaintiff’s attorney can
call witnesses and put forth evidence to disprove the defendant’s case. This is called a
________.
A) rebuttal
B) rejoinder
C) closing argument
D) deliberation
The ________ requires certain contracts to be in writing and signed by the party against
whom enforcement was sought.
A) part performance exception
B) common law of contracts
C) equal dignity rule
D) Statute of Frauds
Which of the following statements is true of collision insurance?
A) It covers the insured’s vehicle against damages caused by another vehicle.
B) It covers damages and losses the injured causes to third parties.
C) It gives protection from car thefts, natural calamities, vandalism, and riots.
D) It protects the driver and passengers of a vehicle who are injured by an uninsured
motorist.
A(n) ________ is a partnership created with no fixed duration.
A) partnership for a term
B) partnership at will
C) ordinary partnership
D) limited partnership
A merger where a chain of coffeehouse stores acquires a coffee plantation is an example
of a ________.
A) backward vertical merger
B) forward vertical merger
C) market extension merger
D) conglomerate merger
An installment contract is a type of contract that requires ________.
A) the seller to deliver the goods to the buyer’s place of business destination
B) goods to be delivered and accepted in separate lots
C) the seller to send the goods to the buyer but not to a specifically named destination
D) goods to be delivered and accepted in one single transaction
During a ________, the defendant’s attorney can call additional witnesses and introduce
other evidence to counter the rebuttal.
A) closing argument
B) rejoinder
C) cross-examination
D) re-direct examination
Which of the following is true of Good Samaritan laws?
A) They relieve doctors from liability for ordinary negligence when they render aid to
victims in emergency situations.
B) They exempt doctors from liability for gross negligence when they render aid to
victims in emergency situations.
C) They absolve doctors from liability for injuries caused by reckless conduct when
they render aid to victims in emergency situations.
D) They free doctors from liability for injuries caused by intentional conduct when they
render aid to victims in emergency situations.
________ are empowered to issue an executive order.
A) State governors
B) State Supreme Court judges
C) Appellate court judges
D) Senators
A(n) ________ is a fiduciary relationship which results from the manifestation of
consent by one person to another that the other shall act in his behalf and subject to his
control, and consent by the other so to act.
A) assignment
B) garnishment
C) accommodation
D) agency
Which of the following Amendments protects criminal defendants from cruel and
unusual punishment, and also protects criminals from torture?
A) Fifth Amendment
B) Fourth Amendment
C) Eighth Amendment
D) Fourteenth Amendment
Which of the following is the only act that includes criminal sanctions for the usage of
unfair trade practices?
A) the Clayton Act
B) the Sherman Act
C) the Robinson-Patman Act
D) the Federal Trade Commission Act
The Whistleblower Statute is also known as the ________.
A) Sarbanes-Oxley Act
B) Lanham Act
C) False Claims Act
D) Glass-Steagall Act
Which of the following is true of specific performance?
A) Specific performance of personal service contracts is not granted.
B) Specific performance is not awarded if the subject matter of the contract is unique.
C) Works of art, antiques, and heirlooms are exempted as subject matter for specific
performance.
D) Specific performance is not available to enforce land contracts.
The ________ is a federal law that mandates the president of the United States to
suspend the acquisition of U.S. businesses by foreign investors if there is credible
evidence that the foreign investor might take action that threatens to impair the
“national security.”
A) Williams Act
B) Securities Exchange Act of 1934
C) Investment Company Act of 1940
D) Exon-Florio Foreign Investment Provision
If an auditor makes a disclaimer of opinion, this means that the auditor ________.
A) is of the opinion that the company’s financial statement matches its performance but
notes a few departures from GAAPs
B) is of the opinion that the company’s financial statement does not accurately reflect
the company’s financial position
C) is unable to draw a conclusion about the accuracy of the company’s financial records
owing to lack of information
D) finds that the company’s financial statements fairly represent the company’s financial
position
Roger Ray runs a motel in a rented property and sublets a part of its garage to the owner
of a nearby fuel station. Three months later, the motel catches fire from a fuel leak in
the garage and Roger’s motel suffers severe damages. If Roger owns a standard fire
insurance policy for years, the insurer can use the ________ to refuse covering the
damage caused by the fire.
A) deductible clause
B) exclusions from coverage clause
C) incontestability clause
D) copay clause
Reserved powers are given to the ________ by the Constitution.
A) federal government
B) judiciary
C) state governments
D) U.S. Congress
In a survey of the nonattainment areas in a particular state, the agency found Helmont
to be the district that exceeded the ozone standard by the largest margin. Helmont is
most likely to be categorized as a ________ nonattainment area.
A) severe
B) extreme
C) marginal
D) serious
Jeffrey became a victim of fraud when he entered a pyramid scheme which turned out
to be a scam. In order to claim damages, Jeffrey has to prove which of the following?
A) good faith on part of the fraudster
B) motive of the fraudster
C) economic injury
D) involvement in the pyramid scheme
Which of the following is true of an Environmental Impact Statement (EIS)?
A) It is required only by federal law, not by state or local laws.
B) It can be challenged in court by environmentalists or other interested parties.
C) It can only be accepted after Congress passes a bill adopting the EIS.
D) It is not required for projects undertaken by private parties.
Which of the following is a requirement for trademark laws to be applied against
cybersquatting?
A) the domain name must be famous
B) the domain name must not be trademarked
C) the domain name must be used to distribute goods or services
D) the domain name must be registered in bad faith
Sue, a resident of the state of New York, is visiting her aunt in Iowa. While there, her
car is hit by a drunk driver named Jerry, a resident of the state of Iowa. Sue is injured in
the accident. Which of the following actions is Sue allowed to take?
A) Sue can sue Jerry and bring the case to Iowa state court provided that the dollar
amount of the controversy exceeds $75,000.
B) Sue can file a case against Jerry in the New York state court as she is a resident of
that state.
C) Sue can file a case against Jerry only in the Iowa state court as this is a matter that
involves state negligence law.
D) Sue can sue Jerry and bring the case to Iowa federal court as this is a case that
involves diversity of citizenship.
The ________ is the right of a seller to demand the return of merchandises from the
buyer under specified situations.
A) right to recover the purchase price or rent
B) right to withhold delivery
C) right to reclaim goods
D) right to cure
Which of the following statements is true of the Bureau of Consumer Financial
Protection?
A) It does not have the authority to supervise debt collectors and debt buyers.
B) It has a special wing that only supervises the automobile industry.
C) It lacks investigative and subpoena powers.
D) It supervises depository institutions such as commercial and savings banks.
Sam expresses interest in buying a motorbike from Jake, a salesman. In an attempt to
force a sale, Jake promises Sam that the motorbike in question is capable of providing a
mileage of 70 miles for every gallon of gas in its tank. Jake’s promise is an example of
________.
A) a disclaimer
B) puffing
C) an express warranty
D) slander
Which of the following statements is true about treaties?
A) The U.S. Constitution provides that the president, with the advice and consent of
one-half of the Senate, may enter into treaties with foreign governments.
B) The U.S. Constitution provides that the president may enter into treaties with foreign
governments even without the consent of the Senate.
C) The U.S. Constitution provides that the president, with the advice and consent of
two-thirds of the Senate, may enter into treaties with foreign governments.
D) The U.S. Constitution provides that the president, with the advice and consent of
one-third of the Senate, may enter into treaties with foreign governments.
The ________ prohibits deficiency judgments regarding certain types of mortgages,
such as those on residential property.
A) foreclosure statute
B) mortgage statute
C) recording statute
D) antideficiency statute
Regulation Z, an administrative agency regulation, sets forth detailed rules for
compliance with the ________.
A) Equal Credit Opportunity Act
B) Consumer Leasing Act
C) Truth-in-Lending Act
D) Fair Debt Collection Practices Act
Which of the following is an interest in real property given to a lender as security for
the repayment of a loan?
A) lease
B) mortgage
C) life estate
D) easement
________ is a symbol that designates an owner’s legal claim to an unregistered mark
that is associated with a service.
A) SM
B) TM
C) ©
D) ®
Which of the following best describes violations?
A) They are the least serious of crimes generally punishable by fines.
B) They are the least serious of crimes generally punishable by long-term
imprisonment.
C) They are the most serious of crimes generally punishable by imprisonment.
D) They are crimes that are considered to be mala in se.