A pretrial hearing is also known as a settlement conference.
The U.S. Supreme Court recognizes an accountant-client privilege under federal law.
Private companies and nonprofit organizations are also influenced by the
Sarbanes-Oxley Act’s accounting and corporate governance rules.
In the United States, each state has only one district court.
The issuer is permitted to assert a due diligence defense against the imposition of
Section 11 liability.
A principal-agent relationship exists when an employer hires an employee to perform
some form of physical service.
The legal standard that holds an accountant liable for his or her negligence to any
member of a limited class of intended users for whose benefit the accountant has been
employed is Section 552 of the Restatement (Second) of Torts.
The exclusionary rule allows for evidence obtained from an unreasonable search and
seizure to be introduced at trial.
A forum-selection clause designates which nation’s court has jurisdiction to hear a case
arising out of a contract.
An S corporation election is made by filing a Form 2553 with the Federal Trade
Commission.
The doctrine of strict liability holds the manufacturers of a defective product solely
liable for injuries caused by that product.
After the copyright period runs out, the work enters the public domain.
Crimes committed by businesspersons are referred to as blue-collar crimes.
A company slogan is an example of a trademark.
Under the European Union (EU), customs duties have been eliminated among member
nations.
Complete performance occurs when a party to a contract renders performance exactly
as required by the contract.
A sales or lease contract is only created when the offeror receives the offeree’s
acceptance.
A deed can only be used to transfer a fee simple absolute interest in real property.
If a debtor is judgment-proof, the creditor may never collect the debt owed.
Separate property is included in community property.
Competitors who agree that each will serve only a designated portion of the market are
deemed to be engaging in a group boycott.
An executory contract refers to a contract or lease that has not been fully performed.
Straight voting gives a minority shareholder a better opportunity to elect someone to the
board of directors.
Agents of an LLC are not permitted to enter into contracts on behalf of the LLC.
Ethical relativism holds that moral standards ought to be based on an individual’s
feelings of what is right and what is wrong.
Pursuant to federal securities laws, an audit must be performed by a CPA who works as
the chief executive officer (CEO) or chief financial officer (CFO) of the company being
audited.
If the accused cannot afford a private defense lawyer, the government will provide one
free of charge.
A principal and an agent are each personally liable for their own tortious conduct.
A prospectus is a written disclosure provided with the registration statement that helps
the SEC to evaluate the financial risk of an investment.
Reserved powers are delegated to the judiciary by the President of the United States.
Overtime pay is given to nonexempt employees who work more than 40 hours per
week.
Only skilled craft workers such as silversmiths and artisans were allowed to belong to
the American Federation of Labor.
Improvements to existing machines, processes, or compositions of matter cannot be
patented.
Richard Bell, an organized crime boss and casino owner, has made a lot of money with
his illegal drug operations and illegal gambling. In order to make it look like he earned
the drug money legitimately, Richard has hired crooks to take the illegal money and
spend it in Richard’s casinos in discreet amounts. The crooks are supposed to lose the
money on purpose so that the casino can claim this as winnings. What crime is Richard
committing in converting his drug money to alleged legal money?
A) money laundering
B) misappropriation
C) extortion
D) embezzlement
Which of the following rights is set forth by the Sixth Amendment to the U.S.
Constitution?
A) protection against double jeopardy
B) right to due process
C) right to a public jury trial
D) privilege against self-incrimination
Which of the following is true of the minimum wage in the United States?
A) A state can enact a law that sets the minimum wage higher than the federal minimum
wage.
B) A city cannot set a minimum wage higher than the federal minimum wage.
C) A living wage law sets a lower minimum wage than the federal minimum wage.
D) For a tipped employee, if an employee’s tips and direct employer payment do not
equal the federal minimum wage, the employer is not required to make up the
difference.
Which of the following entities elects members of the board of directors for a
corporation?
A) the CEO
B) the corporate officers
C) the shareholders
D) the employees
The obligation people owe each other not to cause any unreasonable harm or risk of
harm is termed ________.
A) libel
B) res ipsa loquitur
C) Good Samaritan law
D) the duty of care
Martha contacts a bakery to get a cake for her son’s birthday party. She tells the baker
that she will pay him $150 for the cake if he delivers the cake on Friday evening. If the
baker does not deliver the cake on Friday evening, which of the following is accurate?
A) Martha can sue the baker but cannot recover damages.
B) Martha can sue the baker and recover $150 in damages.
C) Martha cannot sue the baker.
D) The baker must pay Martha $150 plus the cost of a replacement cake, as he entered
into a verbal contract with her and did not perform his legal obligation.
Which of the following is true of a plurality decision of the Supreme Court?
A) It settles the case but does not set the precedent for later cases.
B) It affirms the decision of the lower court.
C) It settles the case and sets the precedent for later cases.
D) It causes the case to be reviewed again at a later date.
An LLC is a ________ in the state in which it is organized.
A) sole proprietorship
B) domestic LLC
C) term LLC
D) general partnership
Ubiquitous Enterprises is a franchisee of the HotPan chain of restaurants. One afternoon
Linda, an employee of Ubiquitous Enterprises, is mopping the floor. Gary, a customer
who enters the restaurant, is talking on his cell phone and does not notice Linda
mopping the floor. He slips on the wet floor while walking to the counter and is injured.
Which of the following statements is accurate regarding liability for Gary’s injury?
A) HotPan is liable for not providing a “Caution: Wet Floor!” sign.
B) Ubiquitous Enterprises is liable for not having its own “Caution” sign.
C) Both HotPan and Ubiquitous Enterprises are jointly and severally liable.
D) Neither HotPan nor Ubiquitous Enterprises is liable.
Kate, Kelly, Rita, and Lucy own a large commercial building as joint tenants with a
right of survivorship. Kate sells her one-quarter interest in the building to Bao. After the
sale, Bao, Kelly, Rita, and Lucy are ________.
A) joint tenants, with a right of survivorship
B) tenants by the entirety, with no right of survivorship
C) tenants in common, with no right of survivorship
D) tenants by the entirety, with a right of survivorship
Which of the following statements is true of a deposition?
A) A deposition has to be a written statement.
B) A witness’s deposition is voluntary and not required pursuant to a court order.
C) A deposition is given post-trial.
D) A deponent is allowed to correct his or her answers before signing the deposition.
What led to the creation of the Chancery Courts?
A) the insistence for a court system that emphasized legal procedure rather than the
merits of a case
B) the law courts’ inability to hear all the cases presented to them
C) the increase in overseas trade and proliferation of piracy
D) the unfair results and limited remedies provided by the law courts
Which of the following constitutes an implied warranty?
A) affirmation of the facts of the goods
B) description of the goods
C) model or sample of the goods
D) adequate packaging and labeling of the goods
A warranty that is created when a seller or lessor makes an affirmation that the goods he
or she is selling or leasing meet certain standards of quality, description, performance,
or condition is known as a(n) ________ warranty.
A) implied
B) conditional
C) closed
D) express
YouKnow Inc. is a corporation that creates educational resources. It grants Middlewest
Public School the right to use its online encyclopedias for three years in return for a fee.
In this arrangement, YouKnow Inc. is the ________.
A) donor
B) trustee
C) grantor
D) licensor
Which one of the following types of protection does the Fourth Amendment provide to
U.S. citizens?
A) protection from cruel and unusual punishment for a criminal defendant
B) protection from unreasonable search and seizure by the government
C) protection against being tried for the same case twice
D) protection against self-incrimination
Which of the following constitutional amendments protects criminal defendants from
cruel and unusual punishment?
A) Fifth Amendment
B) Eighth Amendment
C) Fourth Amendment
D) Fourteenth Amendment
Which of the following is a necessary condition for a contract to be considered valid?
A) It can be voided by both parties.
B) It can be voided by one of the parties.
C) It is enforceable by both parties.
D) It is enforceable by at least one of the parties.
A ________ is a form of co-ownership that includes the right of survivorship.
A) tenancy in common
B) joint tenancy
C) cooperative
D) tenancy by the entirety
Which of the following provisions protects the interest of a joint tenancy upon the death
of a joint tenant?
A) the quiet title action
B) the estate in land
C) the right of survivorship
D) the quitclaim deed
The ________ is the party who employs another person to act on his or her behalf.
A) agent
B) principal
C) independent contractor
D) employee
Which of the following best describes quid pro quo sex discrimination?
A) employment discrimination because of pregnancy, childbirth, or related medical
conditions
B) discrimination where sexual favors are requested in order to obtain a job or be
promoted
C) discrimination in hiring or promotion based on the gender of the employee under
consideration
D) selective or partial treatment offered to an employee or a group of employees based
on their gender
The federal government’s Social Security program, which pays benefits to older
members of society but not to younger members of society, is lawful as examined by
a(n) ________ test.
A) rational basis
B) intermediate scrutiny
C) strict scrutiny
D) due process
________ is an antitrust principle which says that two or more persons can petition the
executive, legislative, or judicial branch of the government or administrative agencies
to enact laws or take other action without violating antitrust laws.
A) The Noerr doctrine
B) The Colgate doctrine
C) Nolo contendere
D) The de minimis exemption
Which of the following domain extensions signifies a resource website?
A) .com
B) .org
C) .edu
D) .info
In which of the following ways can an accountant avoid liability under Section 18(a) of
the Securities Exchange Act of 1934?
A) if the accountant can show that the misleading statement was made to protect the
company from Chapter 7 or Chapter 11 bankruptcy
B) if the accountant acted recklessly, rather than negligently
C) if the accountant had served as the plaintiff’s employee within 180 days before the
filing of the Section 18(a) action
D) if the accountant can show that the plaintiff had knowledge of the false statement
when the securities were purchased or sold
Which of the following is true of a corporation’s incorporation in a state?
A) Domestic corporations can incorporate in only one state.
B) Domestic corporations can incorporate in all states in which they conduct business.
C) Alien corporations can only incorporate in one state.
D) Foreign corporations can incorporate in more than one state.
The appealing party in an appeal is called a(n) ________.
A) appellate
B) appellee
C) respondent
D) petitioner
Which of the following is true about a durable power of attorney?
A) It is only effective for as long as the principal has contractual capacity.
B) It remains effective even though the principal is incapacitated.
C) It is effective even when the agency is based on an oral agreement.
D) It is only effective if the attorney-in-fact is a licensed attorney.
What is imputed knowledge?
A) information collected by a principal prior to engaging in an agency
B) information collected by a principal on an agency
C) information learned by an agent that is attributed to the principal
D) information learned by a principal that is attributed to an agent
Wages, hours, and other terms and conditions of employment are ________ of
collective bargaining.
Why are pretrial hearings necessary, especially if both parties have pursued the lawsuit
with full knowledge?
Predatory pricing, which is used to drive out competition, is in violation of the
________.
________ are created by the government to enforce regulatory statutes.
In early English common law, equitable remedies were provided by the ________
courts.
The adoption of the ________ law led to precedence being an important feature of the
American legal system.
________ is the taking of another’s personal property other than from his or her person
or building.
A contract is said to be ________ when one or both parties have the option to void the
contractual obligations.
Under the mailbox rule, an acceptance is effective when ________.
The ________ Act of 2009 is a federal statute that permits a complainant to file an
employment discrimination claim against an employer within 180 days of the most
recent paycheck violation.
The ________ administers the day-to-day operations of the United Nations (UN).
The deposition of a(n) ________ can be given voluntarily or pursuant to a court order.
The European Union’s (EU’s) ________ is composed of representatives from each
member country who meet periodically to coordinate efforts to fulfill the objectives of
the treaty.
The intentional confinement or restraint of another person without authority or
justification and without consent is called ________.