A(n) ________ contract refers to a contract that is entered into by the parties by use of
e-mail.
A) web
B) online
C) e-mail
D) ISP
Which of the following is true of child labor regulations adopted by the U.S.
Department of Labor?
A) Children between the ages of 14 and 15 may work unlimited hours in nonhazardous
jobs.
B) Children between the ages of 16 and 17 may work limited hours in hazardous jobs.
C) Children under the age of 14 may work limited hours in nonhazardous jobs.
D) Children employed in agriculture are exempt from the regulations.
Child actors and performers are exempt from the child labor restrictions of the FLSA.
Which of the following leads to the termination of an agency by operation of law?
A) loss or destruction of the subject matter of the agency
B) death of either the principal or agent
C) loss of a required qualification
D) a change in the law
Which of the following statements is true of Generally Accepted Accounting Principles
(GAAP)?
A) They are used by auditors as a guide, but only for non-audit services.
B) They are accepted and applied by accounting firms globally.
C) They cannot be modified once initially established by the American Institute of
Certified Public Accountants.
D) They establish rules for how corporations and accounting firms prepare financial
statements.
The computers that constitute the World Wide Web use a standard set of rules known as
________ for the exchange of information.
A) POP
B) POP3
C) HTTP
D) IMAP
A given or required right to make limited use of someone else’s land without owning or
leasing it is called a(n) ________.
A) zoning ordinance
B) title insurance
C) easement
D) abstract of title
Each state is required to prepare a ________ that sets out how the state plans to meet
the federal standards set by NAAQS.
A) strategic environmental assessment (SEA)
B) comprehensive protection assessment (CPA)
C) state assessment plan (SAP)
D) state implementation plan (SIP)
Which of the following is true of the Colgate doctrine?
A) It is not a violation of Section 1 of the Sherman Act.
B) It is an example of a horizontal restraint of trade.
C) It is a per se violation of Section 1 of the Sherman Act.
D) It is a rule of reason violation of Section 1 of the Sherman Act.
Which of the following statements best describes the moral theory of utilitarianism?
A) People must choose the action or follow the rule that provides the greatest good to
society.
B) People must perform actions that are in accordance with a specific moral rule or
principle from a religious text.
C) People must choose to follow the actions of a virtuous person.
D) People must perform actions that are based on moral duties imparted by one’s
community.
Martin, who wants to sell his house, authorizes his concierge, William, to find a
potential buyer and finalize a deal above a stipulated price. William contracts Chris, a
real estate broker, and intends him to only find a potential buyer and send him or her
over to William for the sale. Martin then contracts ReNowait Goodhouses, a home
improvement company, to renovate the house. ReNowait completes its work and Martin
pays it. Chris then searches for a suitable buyer and finds one in George. George buys
the house and Chris is paid for his services. In this scenario, what role does Chris
perform?
A) independent contractor
B) agent
C) principal
D) trustee
Which of the following is true of a life tenant?
A) A life tenant has the right to sell the life estate at will.
B) A person who gives a life estate to another is called a life tenant.
C) A life tenant can possess the life estate to the point of rendering it worthless by
permanent damage.
D) A life tenant is treated as the owner of the property for the duration of the life estate.
Which of the following is true of a principal-independent contractor relationship?
A) Principals are bound by the authorized contracts of their independent contractors.
B) Independent contractors cannot be authorized by principals.
C) Independent contractors are employees of the principals.
D) Principals cannot directly employ independent contractors.
An association of two or more persons to carry on as co-owners of a business for profit
is known as a ________.
A) limited partnership
B) sole proprietorship
C) corporation
D) general partnership
The Uniform Partnership Act (UPA) is a model act that codifies sole proprietorship law.
A formal entrance into a contract between a client and an accountant is known as an
________.
A) abatement
B) arraignment
C) easement
D) engagement
Which of the following phrases explains the term covenant?
A) an unconditional promise to perform
B) a breach of contract
C) mutual rescission of a contract
D) successive assignments of a right
Santo belongs to the Eliok tribe in an Indian reservation in southern Nevada. He wants
to open a casino on the reservation. However, the state authority denies the tribe
permission to open a casino in its own territory. Which of the following permits the
tribe to bring suit in federal court and force the state to comply?
A) Establishment Clause
B) Indian Gaming Regulatory Act
C) Dormant Commerce Clause
D) Indian Reorganization Act
A private plaintiff has ________ years from the date on which an antitrust injury
occurred to bring a private civil treble-damages action because only damages incurred
during this period are recoverable.
A) three
B) two
C) five
D) four
Alan tells Sherry that he will pay her $5,000 if she runs the Boston Marathon. Once
Sherry starts running the marathon, Alan ________.
A) can revoke the contract, as an informal verbal agreement is not legally binding
B) can revoke the contract, provided he does so before she completes the marathon
C) can reduce the amount of money he offered her, provided he does so before she
completes the marathon
D) cannot revoke the contract
Philip and Deborah form an LLC. Philip contributes $50,000 capital and Deborah
contributes $75,000 capital. They do not have an agreement as to how profits are to be
shared. If the LLC makes $100,000 profit in its first year, how will the profit be divided
among the members?
A) Philip gets $30,000 and Deborah gets $70,000.
B) Philip gets $50,000 and Deborah gets $50,000.
C) Philip gets $25,000 and Deborah gets $75,000.
D) Philip gets $35,000 and Deborah gets $65,000.
Which of the following is a document required by the National Environmental Policy
Act (NEPA) that must be prepared for any proposed legislation or major federal action
that significantly affects the quality of the human environment?
A) environmental influence abstract (EIA)
B) environmental impact statement (EIS)
C) environmental imprimatur declaration (EID)
D) strategic environmental assessment (SEA)
Carmen, Westbrook, and Ashton are concurrent owners of a large commercial building.
Ashton executes a will that leaves all his property to his son in the event of his death.
But after Ashton passes away, his ownership interest in the building is acquired by the
two remaining tenants of the building. Which of the following kinds of concurrent
ownership would allow such a passage of title?
A) a tenancy by the entirety
B) a community property
C) a joint tenancy
D) a tenancy in common
Which of the following is true of the Superfund?
A) It gives a mandate to the state government to deal with hazardous wastes that have
been spilled, stored, or abandoned.
B) It identifies sites in the United States where hazardous wastes have been disposed of,
stored, abandoned, or spilled.
C) It levies extra tax on the people of a state where hazardous wastes have been
improperly disposed.
D) It does not permit states and private parties who clean up hazardous waste sites to
seek reimbursement from the fund.
Bill is trying to sell his house in Oklahoma City, Oklahoma to George, who lives in
Little Rock, Arkansas. They have a dispute over the terms of the contract, and Bill
decides to sue George. Which of the following statements is true in this scenario?
A) The Arkansas state court must hear this case as it has in personam jurisdiction over
George.
B) The Arkansas state court has in rem jurisdiction to hear this case.
C) The Oklahoma state court has in rem jurisdiction to hear this case.
D) The Oklahoma state court does not have jurisdiction to hear this case as the
defendant is from another state.
Jonas is a successful investment banker who earns $400,000 per year. He marries
Penny, a nurse at a county hospital. At the time of their marriage, Jonas owns real estate
worth $1 million and securities worth $1.5 million, while Penny has no savings or
property. After four years, Jonas and Penny opt for a divorce. Over the four years of
their marriage, Jonas earns $400,000 in the first two years and $500,000 in the
remaining two. Penny earns $25,000 in the first three years and $150,000 in the final
year of their marriage. Their living expenses were $130,000 per year, and they have
$1,450,000 of their earnings saved in a bank account. During the marriage, Jonas’s real
estate increases in value to $1.5 million, and his securities increase in value to $3
million. If they file for divorce in a state that recognizes community property, what
amount would each receive?
A) $1,300,000
B) $2,297,500
C) $725,000
D) $1,050,000
Jameson works for Fishy-Mart Corporation, a chain of superstores that sells large
quantities of seafood. His job is to locate future sites for Fishy-Mart stores. Jameson
finds a piece of real estate near a coastline that would make a great site for a Fishy-Mart
store. He asks his friend to purchase the property from its current owner and has a
secret agreement with his friend to split the profits when he sells the property to
Fishy-Mart. Jameson, without disclosing his interest in the property, recommends the
site to Fishy-Mart, which then purchases the property from Jameson’s friend. The friend
splits the profits with Jameson. What breach of the duty of loyalty has Jameson
committed?
A) usurping a corporate opportunity
B) self-dealing
C) competing with the corporation
D) proxy
The Consolidated Omnibus Budget Reconciliation Act (COBRA) is an act designed to
prevent fraud and other abuses associated with private pension funds.
A tenant’s interest in real property is called a ________ estate.
A) fee tail
B) free simple absolute
C) gifted
D) leasehold
At what stage of the criminal procedure is the accused asked to enter a plea?
A) when the accused is taken to an arraignment
B) while an indictment or information statement is being issued
C) when the accused is being booked
D) when the accused is being arrested
Which of the following is true of a guarantor in a guaranty arrangement?
A) The guarantor is secondarily liable on the debt.
B) The guarantor must pay the debt even if the principal debtor is not in default.
C) The creditor can first seek legal remedy from the guarantor.
D) The guarantor has full legal rights to possession of the real property in this type of
arrangement.
What is a judicial decision?
A) a decision issued by the executive branch in a state of emergency
B) a decision about an individual lawsuit issued by a federal or state court
C) a codified law passed by the state legislature
D) a decision issued by the legislative branch to establish courses of conduct to which
covered parties must adhere
Explain the events that cause the dissolution of a limited partnership under the RULPA.
Which of the following is a course of action for a principal if an agent is found
competing with him or her?
A) The principal can recover damages from the agent if the competition continues after
the agency has ended.
B) The principal can recover profits made by the agent in the competing venture.
C) The principal has the option of buying the agent’s competing venture.
D) The principal is not allowed to recover lost sales due to the agent’s competing
venture.