If a franchisor makes sales or earnings projections based on hypothetical examples, the
franchisor must ________.
A) display a cautionary statement that warns against misuse of the franchisor’s
intellectual properties
B) disclose the assumptions underlying the estimates
C) register the disclosure document with the FTC prior to its use
D) state that all data disclosed is only hypothetical and that actual data will be made
available at the earliest
If an agreement does not contain an arbitration clause, the parties may nevertheless
agree to arbitration by entering into a ________ agreement.
A) compliance
B) capitulation
C) deference
D) submission
An arrangement where an owner of real property borrows money from a lender and
pledges the real property as collateral to secure the repayment of the loan is known as
a(n) ________.
A) consignment
B) foreclosure
C) mortgage
D) assignment
Pollard entered into a sales contract to purchase a specific Picasso painting from Jenson
for $15 million. When Pollard tenders payment, Jenson refuses to sell the painting to
the buyer. Which of the following legal rights to remedy can Pollard exercise to retrieve
the Picasso painting from Jenson?
A) right to cover
B) right to cure
C) right to obtain specific performance
D) right to withhold delivery
Under the ________ doctrine, damages are apportioned according to fault.
A) contributory negligence
B) comparative fault
C) transferred intent
D) attractive nuisance
Which of the following is an executive power granted to an administrative agency?
A) the power to adjudicate a case through an administrative proceeding
B) the power to prosecute a violation of a statute or administrative rule
C) the power to issue an interpretive rule
D) the power to issue a substantive rule
The general form for registering with the SEC is called ________.
A) Form 10-K
B) Form 8-K
C) Form 10-Q
D) Form S-1
In order for two people older than 18 years of age to be legally married, state law
requires ________.
A) that the parties obtain a marriage license
B) some sort of marriage ceremony
C) the parties to be emancipated from their parents
D) the consent of the couple’s parents
If a franchisor terminates a franchise agreement without just cause, the franchisee can
sue the franchisor for ________ termination.
A) rightful
B) illegal
C) legal
D) wrongful
Which of the following is true of a Regulation A offering?
A) It imposes resale restrictions on the securities it offers.
B) It necessitates the issuers to prepare a registration statement for offers exceeding
$100,000.
C) It requires the most disclosure of information to investors at the time of the issuance
of the securities.
D) It mandates that an offering circular be provided to the investors prior to the
purchase of securities.
The RMBCA establishes a majority of ________ as a quorum to hold a meeting of the
shareholders.
A) outstanding shares
B) treasury stock
C) treasury shares
D) reacquired stock
Utilities Ltd. decided to go public by an initial public offering. It sold securities, some
of which were bought by James Jefferson. Six months later, Mr. Jefferson sold the
Utilities shares he had purchased to Martha Graham and Mark Franco. Two years later,
Mr. Jefferson bought back the Utilities shares from Ms. Graham and Mr. Franco and
made a profit out of both transactions. Who is the issuer in this scenario?
A) Utilities Ltd.
B) James Jefferson
C) Martha Graham
D) Mark Franco
Which of the following beneficiaries is considered a lineal descendant of the testator?
A) a parent
B) a child
C) a spouse
D) a sibling
The regulation of ________ come under the purview of the Medicinal Device
Amendment to the Food, Drug, and Cosmetic Act.
A) hand creams
B) novel vaccinations
C) defibrillators
D) vitamin supplements
A contract is said to have legal value if ________.
A) both the promisor and the promisee receive a legal benefit
B) the promisor suffers a legal detriment
C) the promisee suffers a legal detriment
D) the promisee receives a legal benefit
The ________ is a regional international organization that comprises many countries of
Western and Eastern Europe and was created to promote peace and security as well as
economic, social, and cultural development.
A) Eurosphere
B) European Parliament
C) Euratom
D) European Union
Which of the following best describes criminal conspiracy?
A) It refers to the use of mail or wires to defraud a person.
B) It refers to cooking up records to legitimize money gained through crime.
C) It refers to obtaining a property from a person through wrongful use of violence and
intimidation.
D) It refers to an agreement entered between two or more persons to commit a crime.
Which of the following best describes a profit-à-prendre?
A) a document that grants a person the right to remove something from another’s real
property
B) a form of insurance obtained for losses caused by undiscovered defects in real
property title
C) a judicial proceeding where a certificate of title is awarded to the real owner to
property
D) a type of easement that grants a person the right to use another’s land but disallows
the usage of any personal property
Which of the following crimes is an example of a white-collar crime?
A) larceny
B) arson
C) forgery
D) battery
Which of the following is considered a constructive delivery of a gift?
A) giving the key to a safe-deposit box where the gift is kept
B) paying for the total value of the good being gifted in cash
C) contracting a third-party to deliver goods to the donee
D) gifting someone in person to ensure acceptance of the gift
Which of the following is true of an implied warranty of merchantability?
A) It is made by the buyer or lessee.
B) It is implied by law if the seller or lessor is a nonmerchant.
C) It is implied by law if the seller or lessor is a merchant.
D) It has to be explicitly expressed in the contract.
Sylvester, acting as a representative agent for Jerry, signs a negotiable instrument with
the signature”Sylvester, by Jerry, agent. What kind of liability does Sylvester have for
this type of signature?
A) he is not liable to the instrument
B) he is liable to the payee
C) he is liable to Jerry
D) he is liable to the HDC of the instrument
Which of the following statements is true of the audit committee mandated by the
Sarbanes-Oxley Act?
A) The members of the audit committee are appointed by the SEC.
B) A person who receives compensation for any duties from a public corporation cannot
be appointed as a member of its audit committee.
C) All the members of the audit committee must be financial experts by either
education or experience.
D) The audit company is responsible for the appointment of accounting firms to audit
the company.
Alan won a $50,000 judgment against Henderson. However, Henderson refused to pay
the amount to Alan. To counter Henderson, Alan obtained a postjudgment writ from the
court whereby the court directed the town sheriff to seize Henderson’s automobile and
other property and have them publicly auctioned off to cover the amount owed to Alan.
Which of the following writs did Alan motion the court to seize Henderson’s property?
A) writ of attachment
B) writ of garnishment
C) writ of execution
D) writ of repossession
Which of the following statements is true about the formation of a general partnership?
A) The most important factor in determining coownership is whether the parties share
the business’s profits and management responsibility.
B) Nonpartners of a partnership concern are usually given the right to share in a
business’s profits.
C) The right to participate in the management of a business is conclusive evidence of
the existence of a general partnership.
D) An agreement to share losses of a business is not a compelling evidence of the
existence of a general partnership.
Lila, who works for a large software firm, is four-months pregnant and is also due for a
promotion. However, her employer offers the promotion to Harry, a less-experienced
candidate, as Lila would go on maternity leave soon and would be unable to perform
her duties. Which of the following is true of this scenario?
A) Lila’s employer is liable for disparate-treatment discrimination.
B) Lila’s employer is liable for disparate-impact discrimination.
C) The employer was lawful in denying Lila the promotion.
D) Lila’s employer has violated Title VII of the Civil Rights Act of
Which of the following is true of the Historical School of jurisprudence?
A) It postulates that law is based on morality and ethics.
B) It asserts that law is an aggregate of social traditions and customs.
C) It asserts that the purpose of law is to shape social behavior.
D) It lays emphasis on the logic of the result rather than how the result is reached.
The U.S. Coast Guard administers the Oil Pollution Act which requires the oil industry
to ________.
A) obtain a permit for dumping wastes and other foreign materials into ocean waters
B) implement measures to avoid dumping of wastes into wells used for drinking water
C) adopt procedures and contingency plans to readily respond to and clean up oil spills
D) establish marine sanctuaries in ocean waters as far seaward as the edge of the
continental shelf
The ________ is a model act that codifies general partnership law.
A) Uniform Partnership Act
B) Uniform Limited Partnership Act
C) Revised Uniform Limited Partnership Act
D) Model Partnership Act
Tendon Car Parts sells car spare parts through an e-commerce website. The spare parts
are stored at Pickins Warehouse, from where it is delivered to customers. Linda bought
an item from Tendon through the e-commerce website. In this scenario, who is
considered the bailee of the goods?
A) Linda
B) Tendon Car Parts
C) Pickins Warehouse
D) the e-commerce website
________ is a situation that occurs when a principal requests an employee or agent to
run an errand or do another act for the principal while the agent is on his or her own
personal business.
A) Coming and going rule
B) Frolic and detour
C) Vicarious mission
D) Dual-purpose mission
In which of the following cases is a bank considered liable for unauthorized payments?
A) if the bank does not attach canceled checks to the monthly statements of account
B) if the bank does not provide images of paid checks online
C) if the bank destroys original copies of canceled checks not sent to customers after
seven years from the date of the check
D) if the bank does not provide sufficient information on checks paid to customers in
their monthly account statements
A right to use someone else’s land without owning or leasing it is called ________.
A) mortgage
B) easement
C) life estate
D) leasehold
Which of the following domain extensions signifies a resource website, and is an
unrestricted global name that may be used by businesses, individuals, and
organizations?
A) .name
B) .coop
C) .mobi
D) .info