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The Racketeer Influenced and Corrupt Organizations Act (RICO) applies only to
organized crime.
The Miranda rights must be read to a suspect before he or she is detained by the police
or other government officials.
A threat of future harm or moral pressure is not considered false imprisonment.
Limited partners have unlimited personal liability for the debts and obligations of the
limited partnership.
The legality of nonprice vertical restraints of trade under Section 1 of the Sherman Act
is examined by using the rule of reason.
Duress occurs when one person takes advantage of another person's mental, emotional,
or physical weakness and unduly persuades that person to enter into a contract.
A person who practices as an accountant but is not certified is referred to as a public
accountant.
Copyright registration permits a holder to obtain statutory damages for copyright
infringement, which may be greater than actual damages, and attorney's fees.
The Treaty Clause of the U.S. Constitution designates the president of the United States
as its agent to deal with foreign affairs.
Accountants can be held liable for negligence in preparing unaudited financial
statements.
A person who disaffirms a contract based on intoxication is not legally obligated to
return the consideration he or she received under the contract to the other party.
In a destination contract, the seller is required to replace any goods lost in transit.
The Do-Not-Call Registry allows consumers to designate specific companies not to call
them.
An issuer who plans on raising $1 million or less from the public must answer the
questions on Form U-7, which doubles as a prospectus and must be made available to
prospective investors.
Past consideration is sufficient consideration to support a new contract.
A choice of law clause is a clause in an international contract that designates which
nation's equity principles will be applied in mediating a dispute arising out of a contract.
A formal entrance into a contract between a client and an accountant is called an
abatement.
The goal of the Health Care Reform Act is to increase the number of persons who have
health care insurance in the United States.
A lien release can be used by the property owner to defeat a statutory lienholder's
attempt to obtain payment.
Senior professors and physicists in research laboratories are entitled to federal overtime
pay.
An act of performance is necessary to create a bilateral contract.
If the "as is" type of disclaimer is not used, a disclaimer of the implied warranty of
merchantability must specifically mention the term merchantability for the implied
warranty of merchantability to be disclaimed.
Constructive fraud is defined as the intentional misrepresentation or omission of a
material fact that is relied on by the client and causes the client damage.
In a manager-managed LLC, it is necessary that the manager is a member of that LLC.
Only purchasers and sellers of securities can sue under Section 10(b) and Rule 10b-5 of
the Securities Exchange Act of 1934.
An employer threatening to close an organization because employees of an organization
formed a union is considered an unfair labor practice.
The .org domain name extension represents a resource website.
If an employer denies a salary increase to an employee because she is a woman, the
employer is liable for sexual harassment.
An offer to create a unilateral contract can be revoked by the offeror any time prior to
the offeree's performance of the requested act.
The Fair and Accurate Credit Transactions Act permits consumers to place fraud alerts
on their credit files.
The Historical School of jurisprudence believes that changes in the norms of society
will gradually be reflected in the law.
The UCITA makes it illegal to access another person's stored e-mail.
The Biosafety Protocol label is used to identify certain food products that have been
genetically modified.
State governments do not have the power to regulate commerce with foreign nations.
The Private Securities Litigation Reform Act of 1995 replaced proportionate liability of
the defendant with joint and several liability.
Persons injured by a RICO violation can bring a private civil action against the violator
and recover treble damages.
In 1978, the ________, which prohibits employment discrimination because of
pregnancy, childbirth, or related medical conditions, was enacted as an amendment to
Title VII of the Civil Rights Act of 1964.
A) Pregnancy Discrimination Act
B) Sex Discrimination Act
C) Gender Discrimination Act
D) Sexual Harassment Act
Which of the following gives employees the right to join together to form a union?
A) The Wagner Act
B) Section 3 of the Landrum-Griffin Act
C) Section 7 of the NLRA
D) Section 1 of the Taft-Hartley Act
Elizabeth signs a contract to purchase a new car from Quickcash Motors. She has not
yet paid for the car, and Quickcash Motors has not yet delivered the car to Elizabeth.
This is an example of a(n) ________ contract.
A) unenforceable
B) executory
C) void
D) executed
The party to whom a license is granted is known as the ________.
A) licensee
B) licensor
C) grantee
D) grantor
Give an account of the Economic Espionage Act (EEA) and its importance in
combating cyber piracy.
Which of the following would constitute the creation of an express warranty for goods?
A) a description of the goods
B) a commendation of the goods
C) prior experience with the goods
D) affirmation of the value of the goods
________ are a panel of decision makers who are elected by the shareholders.
A) Registered agents
B) Corporate officers
C) Stakeholders
D) Board of directors
Which of the following is true of Chapter 7 liquidation?
A) The debtor is not permitted to keep any of his or her assets.
B) The 2005 bankruptcy act has eased the process of applying for Chapter 7
bankruptcy.
C) The debtor's future income cannot be reached to pay the discharged debt.
D) Petitioning for Chapter 7 liquidation does not permit the debtor to petition for
bankruptcy under any other chapter.
Stock for which any missed dividend payments must be paid in the future to the
preferred shareholders before the common shareholders can receive any dividends is
known as ________ stock.
A) cumulative preferred
B) noncumulative preferred
C) common
D) participating preferred
________ refers to an attempt by another person to take over a living person's name or
identity for commercial purposes.
A) Invasion of the right to privacy
B) The tort of appropriation
C) Defamation of character
D) Disparagement
Which of the following legislation provides for both criminal and civil penalties
(including treble damages) for securities fraud by accountants and other professionals?
A) the Private Securities Litigation Reform Act of 1995
B) Section 32(a) of the Securities Exchange Act of 1934
C) the Tax Reform Act of 1976
D) the Racketeer Influenced and Corrupt Organizations Act
In which of the following situations can an employee sue an employer in civil court to
recover damages for employment-related injuries?
A) The employer is self-insured.
B) The employer unintentionally injures an employee covered under workers'
compensation.
C) The employee suffers an injury on work premises that is not work-related.
D) The employer intentionally injures an employee covered under workers'
compensation.
Which of the following describes a mixed sale?
A) a sale that involves two or more intangible goods
B) a sale that involves the passing of title of goods from a seller to a buyer for a price
C) a sale that involves the possession and use of named goods for a set price
D) a sale that involves the provision of a service and a good in the same transaction
Which of the following is an instance of an area franchise?
A) McDonald's franchises an independently owned restaurant to make and sell its
products in Pennsylvania.
B) Pepsi Co. ships Pepsi in the form of a drink concentrate that is prepared and bottled
locally in Canada.
C) Nokia licenses a retail dealer to retail its products in Jacksonville.
D) Burger King wants to start operating in Mexico and hires a Mexican subfranchisor to
sell the franchise on behalf of Burger King.
Which of the following statements is true of the International Court of Justice (ICJ)?
A) It is the executive branch of the United Nations (UN) that helps interpret
international law.
B) It only hears cases of nations, not of individuals or businesses.
C) It does not have the authority to hear cases involving treaties.
D) It is headed by the secretary-general of the United Nations (UN).
Which of the following opinions would an auditor make for a company that has
materially misstated certain items on its financial statements?
A) an unqualified opinion
B) an adverse opinion
C) a qualified opinion
D) a disclaimer of opinion
The ________ states that the intent to contract is judged by the reasonable person
standard and not by the subjective intent of the parties.
A) objective theory of contracts
B) common law of contracts
C) Restatement of the Law of Contracts
D) Restatement (Second) of Contracts
If a light-skinned member of a race refuses to hire a dark-skinned member of the same
race, this will constitute discrimination in violation of ________.
A) Title I of the ADA
B) Title II of the GINA
C) Title VII of the Civil Rights Act of 1964
D) Title IV of the GINA
Which of the following statements is true about international law?
A) All legal matters of international importance are prosecuted by a single world court
that is responsible for interpreting international law.
B) The enforcement of all international laws is regulated by a unitary world executive
branch.
C) There is no single legislative source from which all international laws are created.
D) All countries have to follow the international laws enacted by other countries.
Which of the following actions would make Sarah liable for battery?
A) She publishes an article which calls for the current U.S. president to quit because she
thinks he is not doing a good job.
B) She extends the boundary of her plot of land encroaching two feet of her neighbor's
plot.
C) She smuggles marijuana into the country.
D) She slaps her ex-husband because he denied her alimony.
________ specify the methods and procedures that are to be used by public accountants
when conducting external audits of company financial statements.
A) Generally accepted accounting principles
B) Generally accepted auditing standards
C) Auditors' expert opinions
D) General engagements and agreements
A person or corporation that is empowered to accept service of process on behalf of a
corporation is referred to as a(n) ________.
A) promoter
B) shareholder
C) registered agent
D) incorporator
________ is a set of moral principles or values that governs the conduct of an
individual or a group.
A) Rationality
B) Evolution
C) Ethics
D) Reason
Marlon intends to sell a piece of real estate he owns and contracts Nita, a real estate
broker, to make the sale. In the contract, Marlon authorizes Nita to make the sale at or
above a minimum price he wants and the date by which he wants the sale to be
completed. The contract also stipulates that Marlon must not hire another broker to sell
that piece of land until the expiration of the contract period. Nita finds a suitable buyer,
makes the sale in time, and is paid by Marlon for her services. What kind of contract
existed between Marlon and Nita?
A) an apparent agency contract
B) a ratified contract
C) an exclusive agency contract
D) an exclusive principal contract
"Just Do It" is a famous tagline used by the Nike Corporation. Which of the following
types of intellectual property would this tagline come under?
A) trademark
B) patent
C) trade secret
D) copyright
Klint Microsystems, a microprocessor manufacturer, was contracted by Zeitar Studios
to manufacture specially designed microchips to be used in an audio engineering
process. Zeitar was to pay Klint $300,000 as per the contract. Klint decided to redesign
its existing microchips and make them suitable for Zeitar. While the finished
microchips were being shipped via a carrier, Klint was informed of Zeitar's insolvency.
Klint cancelled the shipment before it was delivered. Klint then resold the chips to
another studio where it had to settle for $150,000, as the chips were now suitable for
specific audio engineering processes only. What remedy did Klint exercise when it
stopped shipment to Zeitar?
A) remedy to dispose of goods
B) remedy to stop goods in transit
C) remedy to obtain specific performance
D) remedy to recover purchase rent
A deed in which the grantor of real property transfers whatever interest he or she has in
the property to the grantee is known as a ________ deed.
A) quitclaim
B) general warranty
C) grand
D) special warranty
Kyle goes to a used automobile dealership to buy a truck. He signs an agreement with
the dealership that includes a description of the truck, its price, and other details. This is
an example of a(n) ________ contract.
A) express
B) unilateral
C) implied-in-law
D) implied-in-fact
Marlon intends to sell a piece of real estate he owns and contracts Nita, a real estate
broker, to make the sale. In the contract, Marlon authorizes Nita to make the sale at or
above a minimum price he wants and the date by which he wants the sale to be
completed. The contract also stipulates that Marlon must not hire another broker to sell
that piece of land until the expiration of the contract period. Nita finds a suitable buyer,
makes the sale in time, and Marlon pays for her services. Which of the following types
of agencies had Marlon and Nita entered into?
A) apparent agency
B) agency by ratification
C) implied agency
D) express agency
A duty that requires directors and officers to not act adversely to the interests of the
corporation and to subordinate their personal interests to those of the corporation and its
shareholders is known as ________.
A) the duty of care
B) the duty of loyalty
C) the duty of obedience
D) self-dealing
Who among the following is a good faith purchaser?
A) a person who buys goods from a person with a voidable title
B) a person who buys stolen goods without being aware of it
C) a buyer who agrees to hold goods for a person until the delivery of the goods is
made
D) a buyer to whom goods are delivered by a seller to sell on the seller's behalf
Donald, a resident of Louisiana, is robbed in Oklahoma County, Oklahoma. The robber,
a resident of the state of Texas, is soon apprehended. Which of the following is the
proper venue to hear this case?
A) state court in Louisiana because the plaintiff is from Louisiana
B) state court in Texas because the defendant is from Texas
C) Oklahoma federal court because the robber has committed a federal crime
D) Oklahoma county court because it is nearest in location to the scene of the crime
A person who transfers the right of possession and use of goods under a lease is known
as the ________.
A) lessor
B) lessee
C) seller
D) consignee
Gregory Aimes, who is being tried for murder, has retained Linda Steve as an attorney
for his defense. While questioning Gregory about the case, Linda receives a confession
of murder from Gregory. Under which of the following conditions can Linda lawfully
ignore the attorney-client privilege and report Gregory to the proper authorities?
A) if Gregory discloses to Linda that he plans to murder a specific person in the future
B) if Linda voluntarily resigns as Gregory's attorney
C) if Gregory asks that Linda be replaced as his attorney
D) if Gregory is acquitted in the case
Which of the following is an intentional tort?
A) breach of the duty of care
B) defect in product manufacture
C) disparagement
D) negligence
What are the provisions for contracts with services under Article 2 of the UCC?
Offensive speech is a form of ________ speech according to the First Amendment.
Why can't an agent take an opportunity meant for the principal? When is an agent
permitted to take such an opportunity? Give an illustration of an agent's violation of his
or her duty of loyalty.
How is a relevant market identified by Section 2 of the Sherman Act?
________ are created by legislative branches of states to administer state regulatory
laws.
What is cybersquatting? Can trademark owners recover domain names registered in bad
faith?
________ is speech that the government cannot prohibit or regulate.
To assist workers who are temporarily unemployed, the ________ Act requires
employers to pay unemployment contributions.
In 1997, Congress enacted the ________ Act, a federal statute that criminalizes certain
copyright infringement.
In legal terminology, evil intent is also known as ________.
A(n) ________ is a response by an offeree that contains terms and conditions different
from or in addition to those of the offer.
The act of a court combining two or more separate lawsuits into one lawsuit is called
________.
Describe the Racketeer Influenced and Corrupt Organizations Act (RICO).
The legality of nonprice vertical restraints of trade under Section 1 of the Sherman Act
is examined by using the ________.
________ is a key function of the law, which includes laws that prevent the violent
overthrow of governments.
The process whereby the judge and attorneys ask prospective jurors questions to
determine whether they would be biased in their decisions is called ________.
A(n) ________ is an agreement in which the accused admits to a lesser crime than
charged, and in return, the government agrees to impose a lesser sentence than might
have been obtained had the case gone to trial.
Under the moral theory of ________, a person looks to an outside source for ethical
rules or commands.
