In a case of personal injury due to an accident, the statute of limitations begins to “run”
at the time the accident occurs.
Shareholder resolutions are usually made when the corporation is soliciting proxies
from its shareholders.
The U.S. Supreme Court has deemed the Do-Not-Call Registry service as an
unconstitutional violation of commercial speech.
An e-contract is made when the offeree sends an e-mail or another electronic document
to the offeror.
An investor who has purchased an unregistered security can rescind their purchase, but
not recover damages.
The Clear Water Act authorizes the EPA to establish national primary drinking water
standards.
Workers who quit work without just cause can claim unemployment benefits.
A distributional interest refers to a member’s ownership interest in an LLC.
The doctrine of part performance allows the court to order an oral contract for the sale
of land or transfer of another interest in real property to be specifically performed if
performance is necessary to avoid injustice.
The act of state doctrine is based on the principle that a country has limited authority
over what transpires within its own territory.
In a secured credit transaction, the creditor cannot recover the collateral despite the
debtor’s defaults on the loan.
George, Jerry, and Harry are passengers on a flight from Chicago to New York. They
injure their legs when their seatbelts do not fasten during take-off. The airline is sued by
all three together for injuries caused, and the airline is found to be negligent and is
directed by the court to pay damages to the injured parties. Which of the following
parties is entitled to recover maximum damages?
A) George, a retired professor who gets a pension of $50,000 a year
B) Jerry, a football player who earns $2 million a year
C) Harry, a chartered accountant who earns $200,000 a year
D) All the men recover the same amount of damages, irrespective of their income or
profession.
A(n) ________ opinion is an auditor’s opinion that the company’s financial statements
fairly represent the company’s financial position, the results of its operations, and the
change in cash flows for the period under audit, in conformity with generally accepted
accounting principles.
A) disclaimer of
B) adverse
C) qualified
D) unqualified
The ________ Act enacted by Congress in 2002 requires public companies to adopt
codes of ethics and establishes criminal penalties for companies that partake in
violations.
A) Glass-Steagall
B) Sarbanes-Oxley
C) False Claims
D) Business Norms
An automatic stay provides for which of the following?
A) the automatic discharge of secured debts
B) the suspension of certain legal actions against the debtor
C) a creditor’s foreclosure on an asset pledged as collateral for a loan
D) the automatic discharge of unsecured debts
Frank Carpenter, who runs a charity organization, has been faking his father’s signature
on his father’s personal checks and writing them in favor of the charity as donations. He
gets hold of the checks from his father’s personal assistant, Rhonda Mason, who is also
Frank’s friend and the charity’s trustee. After faking the signature, Frank gives the
checks to Rhonda to deposit in the bank. But unbeknownst to Frank, Rhonda routes
some of the check money into her own savings account. Frank’s father, Dawson,
realizes that money is being withdrawn from his account without his consent. He
suspects his estranged son, Frank, and in order to find out if Frank is involved, Dawson
secretly offers money to the financial accountant of the charity to divulge the charity
organization’s financial dealings. The accountant accepts the money and gives access to
the account books. After scrutinizing the financial records, Dawson realizes that Frank
has been swindling him of his money, and the charity itself was being swindled by
somebody from within. With this information, Dawson proceeds to file a suit against his
son. In the above scenario, of which illegal activity are Rhonda and Frank guilty when
it came to using Dawson’s money for the charity?
A) bribery
B) criminal conspiracy
C) extortion
D) forgery
Which of the following is true of the liability of an incoming partner?
A) An incoming partner is liable for the antecedent debts of the partnership.
B) An incoming partner has joint and several liability with existing partners for the
antecedent debts of the partnership.
C) An incoming partner is liable for the existing debts of the partnership only to the
extent of his or her capital contribution.
D) An incoming partner is not liable for the future debts of the partnership.
What was the key reason for the creation of law courts during the early development of
the English common law?
A) to administer law in a uniform manner
B) to help merchants form a standardized set of commercial laws
C) to increase the power of the king in law-making
D) to facilitate legal disputes for the wealthy and influential
________ are the most serious crimes, including crimes that are mala in se.
A) Felonies
B) Infractions
C) Misdemeanors
D) Summary offenses
What is direct examination?
A) inspection and verification of all documents related to a trial by the judge
B) inspection and verification of all documents related to a trial by the jurors
C) witnesses being questioned by the plaintiff’s attorney
D) prospective jurors being questioned by the judge or lawyers of each party
A ________ is a legal right that gives the author of qualifying subject matter the
exclusive right to publish, produce, sell, license, and distribute the work.
A) patent
B) copyright
C) trademark
D) trade secret
The ________ is the federal administrative agency empowered to enforce the FDCA.
Which of the following is true of an “as is” disclaimer?
A) It disclaims all implied warranties.
B) It disclaims all express warranties.
C) It is a type of implied warranty.
D) It cannot be replaced by another warranty.
The ________ is a model act that provides comprehensive and uniform laws for the
formation, operation, and dissolution of LLCs.
A) Williams Act
B) Securities Exchange Act
C) ULLCA
D) ULPA
A(n) ________ is a special form of partnership in which all partners are limited
partners, and there are no general partners.
A) domestic LLC
B) proprietorship
C) LLC
D) LLP
A(n) ________ is an instrument that evidences a borrower’s debt to the lender for a real
property.
A) note
B) consignment
C) accommodation
D) deed of trust
Who among the following gets first priority in the distribution of assets upon the
dissolution of a partnership?
A) investors
B) limited partners
C) general partners
D) creditors
The ________ branch of the U.S. government is responsible for making federal law.
A) executive
B) judicial
C) legislative
D) fourth
KnockKnock, Inc. is a manufacturer of stainless steel locks which are well known for
their durability. The company contacts a new supplier and forms a supply contract. The
contract states that KnockKnock, Inc. will only purchase steel from the supplier if the
material supplied is high grade Type 102 stainless steel. This is an instance of a
________.
A) condition subsequent
B) concurrent condition
C) covenant
D) condition precedent
The Inkilwas Corporation has 30,000 shares outstanding. A shareholders’ meeting is
duly called to amend the articles of incorporation, and 17,501 shares are represented at
the meeting. According to the Revised Model Business Corporation Act (RMBCA),
what is the minimum number of outstanding shares that must be represented in this case
to have a quorum?
A) 12,001
B) 18,501
C) 15,001
D) 17,501
A future interest in real property refers to ________.
A) an interest in real property that involves actual and current possession
B) an interest in an estate that represents the highest form of ownership
C) an interest in real property that has been sold or permanently transferred to a third
party
D) an interest in real property that a grantor retains for himself or herself or a third party
The Fair Labor Standards Act (FLSA) guarantees workers unpaid time off from work
for family and medical emergencies and other specified situations.
Which of the following is true of sexual harassment?
A) Same-sex harassment is not covered under Title VII.
B) An employee being harassed at the workplace is not obligated to report it to the
employer.
C) Sending offensive e-mail is considered sexual harassment.
D) Absence of a complaint policy makes an employer liable for disparate-impact
discrimination.
Which of the following moral theories represents the dictum “I will keep the rules if
everyone else does”?
A) perspectivism
B) social contract
C) ethical fundamentalism
D) utilitarianism
Which of the following is true of a majority decision made by the U.S. Supreme Court?
A) All the judges agree as to the outcome and reasoning used to decide a case.
B) A majority of the judges agree as to the outcome but not the reasoning used to decide
a case.
C) A majority of the justices agree as to the outcome and reasoning used to decide a
case.
D) An equal number of justices vote for and against the petitioner, and the case remains
undecided.
The World Bank ________.
A) is an autonomous agency under the organizational framework of the European
Union
B) is an agency that monitors the financial partnerships taking place in the eurozone
C) is primarily responsible for promoting sound monetary, fiscal, and macroeconomic
policies in developed countries
D) provides money to developing countries to fund projects for humanitarian purposes
and to relieve poverty
If a state enacts a law that increases its tax on imported automobiles but not on
American-made automobiles, it violates the ________ Clause of the U.S. Constitution.
A) Equal Protection
B) Foreign Commerce
C) Privileges and Immunities
D) Due Process
The North American Free Trade Agreement (NAFTA) is a bilateral treaty between the
United States and Mexico.
In terms of the doctrine of quasi-contract, which of the following statements is true?
A) The agreement between the parties to a quasi-contract is inferred from their conduct.
B) It is an equitable doctrine intended to prevent unjust enrichment.
C) It only applies to situations involving an enforceable contract between the parties.
D) It allows a court to award damages to the defendant even though no actual contract
existed between the parties.
A(n) ________ is an event that occurs when one person consciously decides to induce
another person to rely and act on a misrepresentation.
A) fraudulent misrepresentation
B) unilateral mistake
C) bilateral mistake
D) erroneous misrepresentation
Which of the following is a function that the Consumer Product Safety Commission is
empowered to execute?
A) collecting data regarding injuries caused by consumer products
B) regulating the distribution of genetically modified food products
C) recalling drugs that have been found to be harmful from the market
D) accepting petitions from consumers on wrongly labeled food products
Tim Talon engaged in reckless driving and killed a pedestrian. His defense is that he
was driving under the influence of alcohol and lost control of his automobile. How
would a court classify Tim Talon’s intent?
A) general intent crime
B) criminal intent crime
C) specific intent crime
D) nonintent crime
According to ethical relativism, ________.
A) ethics rely on duties based on universal rules that one is morally bound to follow
B) each person is presumed to have entered into a social contract with all others in
society to obey moral rules
C) there are no universal ethical rules to guide a person’s conduct
D) people must choose an action or follow a rule that provides the greatest good to
society
What prohibition does the Sarbanes-Oxley Act impose on an accounting firm providing
audit and nonaudit services to the same company?
What is the accountant-client privilege?
In a(n) ________ LLC, the managers have authority to bind the LLC to contracts, but
nonmanager members cannot bind the LLC to contracts.
What is the jurisdiction of the U.S. Supreme Court?
If the grand jury determines that there is sufficient evidence to hold the accused for
trial, it issues a(n) ________.
Compare in rem and quasi in rem jurisdiction.
Describe the Racketeer Influenced and Corrupt Organizations Act (RICO).
The ________ Amendment to the U.S. Constitution guarantees that a criminal
defendant has the right to a public jury trial.
The power of a firm to control prices or exclude competition, measured by the market
share the defendant possesses in the relevant market, is known as ________.
What is an easement and how is it created?
Sometimes, principals request that agents run errands or conduct other acts on their
behalf while the agent or employee is on personal business. This is an instance of
________ for the agent.
A right of possession that returns to the grantor after the expiration of a limited or
contingent estate is known as a(n) ________.
The ________ doctrine states that a firm can unilaterally choose not to deal with
another party without being liable under Section 1 of the Sherman Act.
A contract into which parties enter but in which one or both of the parties can choose
not to perform their contractual obligations is said to involve ________ promises.