Juli types onto a computer what she intends to be “My Will and prints it out. Juli has
capacity. “My Will is
a. invalid.
b. valid if Juli signs it.
c. valid if Juli signs it and has three witnesses sign it.
d. valid if Juli signs it, has three witnesses sign it, and files it in a cer-tain state office.
Lacy is an accountant who prepares her clients tax returns. Muff is not an accountant,
but he also prepares tax returns for clients. Under the In-ternal Revenue Code, liability
for preparing a false return may be im-posed on
a. Lacy and Muff.
b. Lacy only.
c. Muff only.
d. neither Lacy nor Muff.
A minor may enter into a contract for the sale of alcoholic beverages if the other
contractual party is an adult.
a. True
b. False
A party is entitled to cancel a contract based on the other partys material breach.
a. True
b. False
The Class Action Fairness Act of 2005
a. shifted jurisdiction over certain class-action lawsuits from the state courts to the
federal courts.
b. shifted jurisdiction over certain class-action lawsuits from the federal courts to the
state courts.
c. made forum shopping punishable by large fines.
d. limited the amount of damages that could be awarded in a medical malpractice suit.
Nouveau Riche Corporations officers, directors, and sharehold-ers buy and sell
securities. SEC Rule 10b-5 applies to
a. only the purchase or sale of a security by a financial corporation.
b. only the purchase or sale of a security involving an officer or director.
c. only the purchase or sale of a security involving a shareholder.
d. the purchase or sale of any security.
ConnectWeb, Inc., an Internet service provider (ISP), supplies information to the
Federal Trade Commission concerning possible unfair or deceptive conduct in foreign
jurisdictions. For this disclosure, federal law gives ConnectWeb and other ISPs
immunity from liability. This is
a. goodwill.
b. fair use.
c. a safe harbor.
d. a license.
Misrepresentation can occur through conduct.
a. True
b. False
If a minor disaffirms a contract, he or she must disaffirm the entire contract.
a. True
b. False
Kathleen offers to buy Richards prize stallion for $10,000 only if a licensed veterinarian
certifies that the horse is sound for breeding. After inspecting the stallion, the
veterinarian concludes that the stallion is sterile and thus not fit for breeding. Kathleen
a. must still buy the stallion.
b. does not have to buy the stallion.
c. must still buy the stallion, but may pay a lower price.
d. does not have to buy the stallion, but must buy another horse of similar value from
Richard.
George is the founder of Excellent Exotics Corporation. Wilson is a shareholder and
director and Bill is an officer. The daily business operations of Excellent Exotics are
overseen by
a. Bill.
b. Wilson.
c. George.
d. George and Wilson.
Vested is the condition in which rights have taken effect and cannot be taken away.
a. True
b. False
A law that limits only some persons exercise of a fundamental right is valid under any
circumstances.
a. True
b. False
During the trial phase of Fuel Corporations suit against Gas Stations, Inc., their
attorneys engage in voir dire. This is
a. an assessment of the validity of the arguments for both parties.
b. a determination of the issues to be argued before the court.
c. the trial.
d. the selection of jurors.
A trademark doesnotneed to be registered to support a trademark infringement action.
a. True
b. False
Sweet Selections is a general partnership that sells candy, cards and flowers. Sweet
Selections has ten partners. Jill and Amy each have a 25 percent interest in the
partnership. All the other members have a 10 percent interest. To pass a management
decision
a. a majority of the partners must agree to the decision.
b. both Jill and Amy must agree to the decision.
c. Jill or Amy must agree to the decision.
d. 30 percent of the partners must agree to the decision.
Rowan registers a domain namesweetfriedpotatos.comthat is a misspelling of a popular
brandsweetfriedpotatoes.com. This is
a. cybersquatting.
b. typosquatting.
c. trademark infringement.
d. trademark dilution.
John is an art dealer with special expertise in modern art. Rachel comes to Johns gallery
to purchase a modern art painting as an investment. John showsher several paintings
that he says are high quality and will increase in value in the next ten years. Johns
statement is
a. an express warranty.
b. an implied warranty.
c. an opinion.
d. puffery.
One goal of bankruptcy law is to protect a debtor.
a. True
b. False
In a principal-agent relationship, the parties agree that the principal will act on behalf
and instead of the agent in negotiating and transacting business with third persons.
a. True
b. False
A mechanics lien can be enforced to obtain payment for work that adds value to real
property.
a. True
b. False
Big Dog Security Service, Inc. orally agrees to provide security services for NorthGate
Mall for as long as NorthGate Mall requires them. This contract is enforceable by
a. Big Dog Security only.
b. NorthGate Mall only.
c. either party.
d. neither party.
Julia, the head executive of Fine Woolen Sweaters, Inc., is a committed Christian who
strongly adheres to the Ten Commandments. One of Julias employees is found to be
stealing sweaters and giving them to a local homeless shelter. Julia is likely to
a. punish the employee for stealing even though the employees motive was benevolent.
b. view the employees actions as justified because the employee was clothing the poor.
c. contribute more sweaters to the homeless shelter.
d. gently reprimand the employee without suggesting that the employees actions were
unethical.
Ethics can be highly subjective and subject change over time.
a. True
b. False
Tech Outsourcing, Inc., registers a domain name that is the same as, or confusingly
similar to, the trademark of Tech Resourcing Corporation and then offers to sell the
domain name back to Tech Resourcing. This is
a. cybersquatting.
b. typosquatting.
c. trademark infringement.
d. trademark dilution.
Generally, an accountant must exercise the degree of care that an ordinarily prudent
accountant would exercise.
a. True
b. False
Creation Worx, Inc., develops, makes, and markets new computer programs for
businesses and consumers. Generally, copyright protection extends to
a. all aspects of the software.
b. the “look and feel of the software.
c. those parts of the software that can be read by humans.
d. all of the choices.
The payment of Pauls debt to Ryan is guaranteed by Pauls 2002 Honda Civic. Ryan
filed the financing statement on July 1, 2014. If Ryan does nothing else, the financing
statement will be effective until
a. July 1, 2015.
b. July 1, 2016.
c. July 1, 2019.
d. July 1, 2024.
Mariah takes off her ring and places it on her desk while she works. Without her
knowledge or consent, her coworker Nita picks up the ring, puts it on, and walks away.
Nita has likely committed
a. burglary.
b. forgery.
c. larceny.
d. no crime.
A common defense to intentional torts against persons is consent.
a. True
b. False
Jayne and Wilbur enter into an oral contract on May 1 under which Jayne agrees to
deliver a collection of exotic wines by April 30 of the following year. This contract is
enforceable by
a. Jayne only.
b. Wilbur only.
c. either party.
d. neither party.
In most bailments, the bailee can retain the goods given by the bailor and return
equivalent property.
a. True
b. False
A person who transfers an instrument for consideration makes certain warranties to the
transferee.
a. True
b. False