Advertising is categorized as limited protected speech.
Based on the doctrine of respondeat superior, principals are liable for the negligent
conduct of agents acting within the scope of their employment.
In terms of compliance with the Statute of Frauds and the Uniform Commercial Code,
the signature of the person who is enforcing the contract is required.
There is no cap on the recovery of compensatory or punitive damages under Section
1981 of the Civil Rights Act of 1866.
An operating agreement is a document that states the terms for converting an existing
business to an LLC.
Article 2A of the UCC deals with lessors and lessees.
The decisions handed down by the general jurisdiction trial courts are appealable to an
intermediate appellate court or the state supreme court.
Dual agency is permitted if all parties in a transaction agree to it.
Limited partners are personally liable for the debts and obligations of the limited
liability partnership.
The CAN-SPAM Act does not regulate spam sent to Americans from other countries.
Article 2 of the UCC applies to sales contracts for the sale of intangible goods.
The mislabeling of medicinal devices is prohibited under the Nutrition Labeling and
Education Act.
A union is allowed to discipline members for working for wages below union scale.
The Ultramares doctrine is the broadest standard for holding accountants liable to third
parties for negligence.
The Miranda rights must be read to a suspect before he or she is detained by the police
or other government officials.
E-mail contracts need not meet the Statute of Frauds requirements as long as they meet
UCITA guidelines.
Reversion occurs when the rights of possession return to a third party upon the
expiration of a limited estate.
Only price fixing conducted by sellers is considered a violation of Section 1 of the
Sherman Act.
Treble damages cannot be sought for the violation of antitrust laws.
All laws are framed to meet the highest ethical standards.
U.S. citizens employed by U.S. companies located in foreign countries are not covered
by Title VII of the Civil Rights Act of 1964.
For an injury to be compensable under workers’ compensation, the claimant must prove
that he or she was harmed by an employment-related injury.
Any statements or confessions obtained from a suspect before he or she has been read
the Miranda rights can be excluded from evidence at trial.
Section 1 of the Sherman Act allows for intangible properties to be sold in tying
arrangements.
Substantive due process requires that the government give a person proper notice and
hearing of legal action before that person is deprived of his or her life, liberty, or
property.
Once a quorum is present, the withdrawal of shares does not affect the quorum of the
meeting.
The federal government is primarily responsible for the implementation of the Clean
Water Act in all states.
A nonattainment area is classified into one of five categories: marginal, moderate,
serious, severe, or extreme.
Treasury shares cannot be reissued by a corporation.
The outbreak of a war between the principal’s country and the agent’s country is
grounds for terminating an agency.
A(n) ________ uniquely identifies an individual’s or company’s website.
A) e-signature
B) digital footprint
C) e-mail address
D) domain name
Which of the following is true of the FDA’s role in the introduction of a new drug in the
market?
A) The FDA bases its approval of a new drug on the rule of caveat emptor.
B) The FDA limits itself to providing relevant suggestions to improve the drug.
C) The FDA has the power to implement a complete ban on a questionable drug.
D) The FDA prosecutes producers of questionable medicines directly by the powers
vested in it by the U.S. Department of Justice.
Mary, Harold, Harvey, and William form an LLC by contributing $20,000, $50,000,
$55,000, and $150,000, respectively. The LLC is designated to be member-managed.
When a decision is put to vote, Mary, Harvey, and Harold vote “yes,” whereas William
votes “no.” Which of the following is true in this context?
A) William’s decision prevails as he has invested the maximum capital.
B) No conclusion can be derived as the vote is not unanimous.
C) Mary, Harvey, and Harold’s decision prevails due to simple majority.
D) The decision is put to vote among employees of the company.
Why do courts need to accomplish a service of process?
A) to obtain personal jurisdiction over the plaintiff in a lawsuit
B) to obtain personal jurisdiction over the defendant in a lawsuit
C) to obtain jurisdiction to hear a case where the court has jurisdiction over the property
in the lawsuit
D) to obtain jurisdiction over nonresidents who were not served summons within the
state
What does “maximizing profits” as a social responsibility theory in business imply?
A) A corporation must consider the effects of its actions on persons other than its
shareholders.
B) A corporation’s duty is to make a profit while avoiding causing harm to others.
C) A corporation owes a duty to take actions that increase profits for its shareholders.
D) A corporation has the prime responsibility of increasing its profits in order to benefit
the society at large.
Which of the following is true of e-commerce?
A) Lessors cannot use web addresses to lease goods.
B) Intellectual property cannot be explicitly listed for sale on a website.
C) An e-mail contract is not binding.
D) Services can be listed for sale on websites.
Sending an objectionable telegram to a third party and signing another’s name
constitutes the tort of ________.
A) invasion of the right to privacy
B) defamation of character
C) battery
D) intentional misrepresentation
According to the ________, evidence obtained from an unreasonable search and seizure
can generally be prohibited from introduction at a trial or an administrative proceeding
against the person searched.
A) Miranda rights
B) exclusionary rule
C) presumption of innocence doctrine
D) double jeopardy rule
A life estate that is measured by the life of a third party is referred to as ________.
A) an estate pour autre vie
B) a servient estate
C) community property
D) a quid pro quo
Which of the following has the highest priority claim?
A) the first party to secure the interest
B) the first party to attach the interest
C) the first party to possess the interest
D) the first party to file a financing statement
What function of the law is being served when passing laws that protect the U.S.
government from the risk of being forcefully overthrown?
A) maintaining the status quo
B) shaping moral standards
C) facilitating orderly change
D) promoting social justice
Under the ________ test, debtors who earn a median family income equal to or below
the state’s median family income for the size of the debtor’s family qualify for Chapter 7
bankruptcy.
A) liquid assets
B) tangible holdings
C) median income
D) propensity to repay
The ________ is a federal law that permits employees and their beneficiaries to
continue their group health insurance after an employee’s employment has ended.
A) FLSA
B) FMLA
C) ERISA
D) COBRA
________ is a business arrangement that occurs when the owner of intellectual property
contracts to permit another party to use the intellectual property.
A) A general partnership
B) Leasing
C) Licensing
D) A joint venture
Areas that are inundated or saturated by surface water or groundwater that support
vegetation typically adapted for life in such conditions are called ________.
A) marine reefs
B) aquifers
C) wetlands
D) reservoirs
In which of the following methods of alternative dispute resolution must parties to a
case employ a neutral third party to settle their dispute?
A) negotiation
B) mini-trial
C) e-court
D) mediation
According to the Revised Model Business Corporation Act (RMBCA), what establishes
a quorum to hold a meeting of the shareholders?
A) a majority of the outstanding shares
B) a majority of the unissued shares
C) a majority of the treasury shares
D) a majority of the liquidated shares
Which of the following is true of cumulative voting?
A) Each shareholder votes the number of shares he or she owns on candidates for each
of the positions open for election.
B) A majority shareholder always elects the entire board of directors.
C) The cumulative voting method always applies to elections for the board of directors.
D) A minority shareholder has a better opportunity to elect someone to the board of
directors.
Why does a sole proprietorship not pay taxes at the business level?
A) It does not have a separate legal existence.
B) It is a small business that is exempted from taxation.
C) It is a non-profit organization.
D) It is generally an institution with no business dealings.
The U.S. Patent and Trademark Office (PTO) grants approximately how many patents
each year?
A) 250,000
B) 500,000
C) 675,000
D) 775,000
________ is the fraudulent conversion of property by a person to whom that property
was entrusted.
A) Embezzlement
B) Bribery
C) Forgery
D) Extortion
Which of the following is true of an LLC?
A) An LLC is a creature of federal law.
B) An LLC is regarded as a separate legal entity.
C) An LLC cannot hold title to property.
D) The owners of an LLC are called general partners or specific partners.
Which of the following acts regulates internal union affairs and establishes the rights of
union members?
A) Landrum-Griffin Act
B) Gompers-Lewis Act
C) Taft-Hartley Act
D) Wagner Act
How is a copyright different from a patent?
A) Federal law applies to a copyright, while individual state law applies to a patent.
B) A copyright, not a patent, must be novel and useful.
C) A copyright protects an invention, while a patent protects a tangible writing.
D) The period of protection for a copyright is longer than the period of protection for a
patent.
The ________ Clause of the U.S. Constitution prohibits the government from
promoting one religion over another.
A) Due Process
B) Privileges and Immunities
C) Establishment
D) Free Exercise
________ is a doctrine that says a person is liable for harm that is the foreseeable
consequence of his or her actions.
A) The tort of outrage
B) The tort of misappropriation
C) Disparagement
D) Unintentional tort
Which of the following is headed by the secretary-general of the United Nations (UN)?
A) the International Court of Justice (ICJ)
B) the Secretariat
C) the Security Council
D) the General Assembly
________ occurs when an employee has a nonforfeitable right to receive pension
benefits.
A) Vesting
B) Easement
C) Anti-lapse
D) Reconciliation
Frank Hannigan sees a grand piano that his musician friend Scott Kristoff had been
looking for in an antique store. Frank enters into a contract to purchase the grand piano
from the antique seller and signs the contract, “Frank Hannigan, agent for Scott
Kristoff.” As Frank is not Scott’s agent, Scott is not bound by the contract. If Scott
decides to accept the contract, what kind of agency would be created?
A) express agency
B) implied agency
C) agency by ratification
D) power of attorney
A(n) ________ is a document for a person’s detainment that is based on a showing of
probable cause that the person committed a crime.
A) arrest warrant
B) possessory warrant
C) no-knock warrant
D) execution warrant
A(n) ________ is a compact made between two or more nations.
A) amendment
B) treaty
C) charter
D) statute
What is an exclusive license?
A) a license that grants access to exclusive information for a limited period
B) a license that restricts the licensee to some information only
C) a license that is granted to only one party for a specific period
D) a license that grants access to exclusive intellectual property
Which of the following is the rationale behind the Noerr doctrine?
A) state statutory law
B) the Uniform Commercial Code (UCC)
C) Article I of the U.S. Constitution
D) the Bill of Rights
Libel and slander constitute ________.
A) the tort of outrage
B) defamation of character
C) the tort of appropriation
D) intentional misrepresentation
Which of the following statements is true of accountants?
A) Accountants who pass the CPA examination are called private noncertified
accountants.
B) Accountants cannot be held liable by provisions of common law.
C) Accountants cannot be held liable to clients and third parties.
D) Accountants who lack CPA certification are called public accountants.
The ________ theory of social responsibility compels a corporation to correct the social
injury it causes.
Uses for real estate and buildings that already exist in a zoned area that are permitted to
continue even though they do not fit within a new zoning use established for the area
are known as ________.
________ is defined as credit extended to natural persons for personal, family, or
household purposes.
When and how can a plaintiff claim damages if the defendant has breached a duty of
care?
________ refers to a concept that requires lawsuits to be heard by the court with
jurisdiction that is nearest to the location where the incident occurred or where the
parties reside.
The infancy doctrine allows minors to ________ most contracts they have entered into
with adults.
In a(n) ________ LLC, each member has equal rights in the management of the
business of the LLC, regardless of the size of his or her capital contribution.
________ crimes require that the perpetrator intended to achieve a specific result from
his illegal act.
The ________ Act authorizes the U.S. government to clean up oil spills and spills of
other hazardous substances in ocean waters within 12 miles of the shore and on the
continental shelf and to recover the cleanup costs from responsible parties.
The ________ rule permits certain open terms to be “read into” a sales or lease contract.
The ________ Act sets the terms of casino gambling and other gaming activities on
tribal land.
If the grand jury determines that there is sufficient evidence to hold the accused for
trial, it issues a(n) ________.
________ is a moral theory with origins in the works of Jeremy Bentham and John
Stuart.
A(n) ________ grants the licensee exclusive rights to use information rights for a
specified duration.
Describe the measures taken by the U.S. Department of Labor against oppressive child
labor.
What is a distributional interest? Explain the terms of its transfer.
Discriminating against a possible job applicant because of his or her family history of
heart ailments is forbidden under ________.
The ________ is a federal agency that can initiate judicial proceedings in court against
suspected violators of federal environmental laws.