If an invention is obvious, then it does not qualify for a patent.
If a light-skinned member of a race refuses to hire a dark-skinned member of the same
race, this constitutes racial discrimination.
An adverse opinion is usually issued when an auditor determines that a company has
materially misstated certain items on its financial statements.
The U.S. Department of Labor permits employers to pay less than the minimum wage
to students and apprentices.
General partnerships do not pay federal income taxes.
A deceased joint tenant’s will is effective over the right to survivorship.
Section 5 of the Securities Act of 1933 requires an issuer to register its securities with
the SEC prior to selling them to the public.
A deficiency judgment prevents a secured lender from recovering other property or
income from a defaulting debtor if the collateral is insufficient to repay the unpaid loan.
A unilateral mistake is a mistake in which only one party is mistaken about a material
fact regarding the subject matter of a contract.
The first 12 circuits of the U.S. courts of appeals are geographical.
Violation of the Money Laundering Control Act subjects any property involved in or
traceable to the offense to forfeiture to the government.
The right to enforce air pollution standards is an exclusive prerogative of the federal
government.
The Tax Reform Act of 1976 created the Public Company Accounting Oversight Board
(PCAOB).
A license is a contract that transfers complete rights in intellectual property and
informational rights.
The Superfund is financed through taxes on products that contain hazardous substances.
Under ethical fundamentalism, a person looks to an outside source for ethical rules or
commands.
An accountant’s failure to follow GAASs when conducting audits constitutes
negligence.
The Equal Credit Opportunity Act does not have provisions for consumers to recover
damages against the creditor.
The law courts of the English common law could only provide monetary awards for
damages.
Defendants cannot assert a due diligence defense against liabilities arising from the
violation of Section 11 of the Securities Act of
Bankruptcy courts are part of the state court system.
A lawyer who fails to file a document with the court on time, causing the client’s case to
be dismissed, is liable for legal malpractice.
Civil liability under Section 11 is imposed on those who are negligent in not
discovering fraud in their security offerings.
If a shoplifting suspect is detained for an unreasonably long time and is found to be
innocent, the merchant is liable for the tort of malicious prosecution.
A decertification election is held when an employer does not want the presence of
multiple unions in the organization.
Corporations cannot provide their articles of incorporation online.
The Marine Protection, Research, and Sanctuaries Act, enacted in 1972, extends
environmental protection to the oceans.
A principal who authorizes an agent to enter into a contract with a third party is liable
on the contract.
The House of Representatives has the power to impeach the President for certain
activities, such as treason, bribery, and other crimes.
A floating lien is a security interest in property that was not in the possession of the
debtor when the security agreement was executed.
The FLSA makes it unlawful to ship goods produced by businesses that use oppressive
child labor.
Pollard enters 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.
Which of the following remedy can Pollard exercise to retrieve the painting from
Jenson?
A) remedy to cover
B) remedy to recover damages for nondelivery
C) remedy to obtain specific performance
D) remedy to cancel the contract
The ________ is a federal statute that makes it illegal for an employer to discriminate
against job applicants and employees based on genetic information.
A) ADA
B) GINA
C) ADAAA
D) OWBPA
A ________ is defined as the passing of title of goods from a seller to a buyer for a
price.
A) lease
B) sale
C) loan
D) gift
Which of the following is required to bring a civil action for securities fraud against a
violator of RICO?
A) The accountant must not be a third-party independent contractor.
B) The defendant must first be criminally convicted in connection with the securities
fraud.
C) The plaintiff must file the civil case before the government initiates a criminal
action.
D) The defendant must first be tried for violation of Section 32(a) of the Securities
Exchange Act of 1934.
The laborers at Lillon Fabrics are paid on a daily-wage basis. When the employee union
announces a strike that involves a cessation of work, one of the employees, Lina, is
hesitant to participate in it as it would mean her employer withholding her pay. Which
of the following is true of this case?
A) Lina must participate in the strike, as participation in all union activities is
mandatory for employees.
B) Lina cannot be compelled by the union to participate in the strike.
C) Lina’s employer is obligated to pay her even if she ceases to work and joins the
strike.
D) Lina must find a replacement employee before joining the strike.
Which of the following is true of general and limited partners in a limited partnership?
A) Limited partners are exempt from annual capital investment and need only
participate in management functions.
B) General partners are not personally liable for partnership debts.
C) General partners are required to invest capital and refrain from managerial activities.
D) Limited partners are not personally liable for partnership debts beyond their capital
contributions.
If a competitor reverse-engineers a trade secret, then the competitor is ________.
A) allowed co-ownership of the trade secret and its original trademark
B) allowed to use the trade secret but not its original trademark
C) not allowed to gain commercially from the trade secret
D) obliged to inform the original owner of the trade secret
The ________ is a trilateral treaty that has removed or reduced tariffs, duties, quotas,
and other trade barriers between the United States, Canada, and Mexico.
A) Western Hemispheric Bloc
B) North American Free Trade Agreement (NAFTA)
C) Central America Free Trade Agreement (CAFTA)
D) General Agreement on Tariffs and Trade (GATT)
Once a complaint has been filed with the court, the court will issue a(n) ________,
directing the defendant to appear in court.
A) answer
B) rejoinder
C) summons
D) judicial restraint
Which of the following acts is particularly designed to regulate the home loan market
and put the burden on lenders to verify that a borrower can afford to repay the loan for
which he or she has applied?
A) Fair Credit Reporting Act
B) Consumer Financial Protection Act of 2010
C) Truth-in-Lending Act
D) Mortgage Reform and Anti-Predatory Lending Act
Which of the following types of deeds only protects the buyer from defects in title
caused by the seller?
A) a general warranty deed
B) a quitclaim deed
C) a grand deed
D) a special warranty deed
Which of the following theories of ethics is also referred to as duty ethics?
A) Rawl’s social justice theory
B) utilitarianism
C) Kantian ethics
D) ethical fundamentalism
The ________, an organization created by the accounting profession, issues new GAAP
rules and amends existing rules.
A) Financial Accounting Standards Board (FASB)
B) International Accounting Standards Board (IASB)
C) International Financial Reporting Board (IFRB)
D) American Institute of Certified Public Accountants (AICPA)
Which of the following is true of religious discrimination?
A) Only monotheistic religions are covered under Title VII of the Civil Rights Act of
1964.
B) Employers need not accommodate religious observances or practices of their
employees at the workplace.
C) An employee who claims religious discrimination cannot sue the employer for any
other violation of Title VII.
D) Religious organizations can give preference in employment to individuals of a
particular religion.
What is vicarious liability?
A) non-liability
B) liability for multiple torts
C) liability without knowledge
D) liability without fault
Barney wants to rent an apartment and posts an advertisement in a classifieds website.
Two days later, Michael, who wants to rent out his apartment, e-mails Barney and they
finalize the deal over the Internet. Barney pays Michael through an online transfer. This
is an instance of ________.
A) e-licensing
B) e-commerce
C) cybersquatting
D) information licensing
M’ore Mining Company’s employees want a union to represent their rights. All of the
employees live in company-owned employee housing adjacent to their place of work. In
order for a union to be established, solicitation must be carried out by pro-union
employees. Which of the following rules may assist those employees in their union
solicitation efforts on M’ore Mining Company property?
A) the incompatibility caveat
B) the incontestability exclusion
C) the inaccessibility exception
D) the insubordination proviso
Conscious parallelism occurs when ________.
A) parties at different levels enter into an agreement to adhere to a price schedule that
stabilizes prices
B) one party makes an independent choice not to deal with another
C) two or more firms act the same but no concerted action is shown
D) a party’s anticompetitive effects outweigh its procompetitive effects
The Fair Labor Standards Act (FLSA) is enforced by the ________.
The term ________ refers to a defense that says a person who is injured by a defective
product but has been negligent and is partially responsible for his or her own injuries
cannot recover from the defendant.
A) comparative negligence
B) contributory negligence
C) assumption of the risk
D) negligence per se
What is the Family and Medical Leave Act (FMLA)? How is an employee covered
under it?
A ________ alleges that if all the facts presented in the paperwork filed with the court
to initiate or respond to the lawsuit are true, the party making the motion would win the
lawsuit when the proper law is applied to these facts.
A) motion for judgment on the pleadings
B) motion for summary judgment
C) motion for judgment notwithstanding the verdict
D) motion to set aside judgment
Poole Contractors makes a contract with Delta Resources to pay $50,000 for the supply
of 500 truckloads of sand within a week. Delta Resources delivers the sand in two days
after the contract was made. Poole Contractors pays the $50,000 promised in the
contract. This is an instance of ________.
A) substantial performance
B) a material breach
C) a minor breach
D) strict performance
Which of the following is an apparent disadvantage of utilitarianism?
A) It does not allow people to have subjective notions of right and wrong.
B) It is based on moral duties derived from universal rules.
C) It overemphasizes one book or theory.
D) It treats morality as if it were an impersonal mathematical calculation.
Issued shares that have been repurchased by the corporation are referred to as ________
shares.
A) outstanding
B) liquidated
C) unissued
D) treasury
In which of the following cases does a seller have the right to stop delivery of goods in
transit, regardless of the size of the shipment?
A) if the buyer repudiates the contract
B) if the buyer has payments due
C) if the seller learns of the buyer’s insolvency
D) if the seller has been ordered for specific performance
The Consumer Product Safety Commission (CPSC) is ________.
A) a communion of two state-funded regulatory bodies working together to ensure
consumer safety
B) a federal body created to ensure the safety of few consumer products like motor
vehicles, boats, aircraft, and firearms
C) an independent federal administrative agency that regulates potentially dangerous
consumer products
D) a federal agency working to ensure product safety standards for food, poultry,
medicines, and medicinal devices
What is a patent number?
A) a number assigned to a patent when it comes under investigation
B) a number assigned to a patent when the patent is pending
C) a number assigned to a patent during application
D) a number assigned to a patent once the patent is granted
QuickMoney LLC is looking to fill its chief executive officer position, as the current
CEO is retiring soon. QuickMoney receives applications for this position from many
persons, including Joe Thomas, an African-American. Joe is the best-qualified applicant
for the job. If QuickMoney does not hire Joe because he is an African-American, the
company has engaged in ________ discrimination.
A) genetic information
B) race
C) color
D) national origin
Which of the following statements is true about a counteroffer?
A) An offeree who makes a counteroffer is still considered the offeree.
B) A counteroffer terminates the existing offer.
C) A counteroffer can only be made by the original offeror.
D) A counteroffer is effective even before it has been received by the original offeror.
Jonathan Lopez wants to be his own boss and ventures into retailing fruit in the
neighborhood after borrowing some money from his mother. While obtaining a license
to carry out business in his city, Jonathan mentions the money he borrowed but forgets
to specify what type of business undertaking his store will be. Under which of the
following major forms of business is Jonathan’s store listed by default?
A) a general partnership
B) a sole proprietorship
C) a limited partnership
D) a limited liability corporation
A complainant cannot file his or her claim of discrimination with the Fair Employment
Practices Agency (FEPA) instead of the EEOC.
The ________ own(s) a corporation.
A) shareholders
B) board of directors
C) CEO
D) corporate officers
The Double Jeopardy Clause of the Fifth Amendment protects persons from ________.
A) evidence procured through unreasonable search and seizures
B) being tried twice for the same crime
C) confessions obtained through physical force during an interrogation
D) being subjected to a heavier penalty or longer imprisonment
Which of the following replaced the General Agreement on Tariffs and Trade (GATT)
in 1995?
A) the World Bank
B) the World Trade Organization (WTO)
C) the International Monetary Fund (IMF)
D) the North American Free Trade Agreement (NAFTA)
Contracts, combinations, and conspiracies in restraint of trade are outlawed by Section
1 of the ________ Act.
Only the ________ can appeal in a criminal case.
How does Section 16(b) of the Securities Exchange Act of 1934 protect the interests of
a corporation? Explain with an example.
Explain what a generic name is with reference to trademarks.
The Fifth Amendment to the U.S. Constitution provides that no person ‘shall be
compelled in any criminal case to be a witness against himself.” This right is referred to
as the ________.
________ is a form of credit that does not require any security to protect the payment of
the debt.
Discuss mail fraud and wire fraud.
________ is a type of trademark dilution where a party uses another party’s famous
mark to designate a product or service in another market so that the unique significance
of the famous mark is weakened.
What is the United Nation’s Biosafety Protocol for genetically altered food?
The ________ is a rule which provides that upon the death of a general partner, the
deceased partner’s right in specific partnership property vests in the remaining partner
or partners; it does not pass to his or her heirs or next of kin.
Under ERISA, ________ occurs when an employee has a nonforfeitable right to receive
pension benefits.
________ is defined as the substantial likelihood that a person either committed or is
about to commit a crime.
________ are treaties that are sponsored by international organizations, such as the
United Nations (UN).
SEC Rule 506known as the private placement exemptionallows issuers to raise capital
from an unlimited number of ________ without having to register the offering with the
SEC.