In a contract between a minor and an adult, the duty of restoration lies with the
________.
A) adult
B) minor
C) competent party
D) judiciary
A(n) ________ is a judgment of a court that permits a secured lender to recover other
property or income from a defaulting debtor if the collateral is insufficient to repay the
unpaid loan.
A) deficiency judgment
B) summary judgment
C) lien release
D) in rem judgment
Darrel, Smith, Keith and Aaron are claimants to a collateral interest. All four have
secured their interests on the collateral. Aaron takes physical possession of the
collateral. Keith files a financing statement some time later. Who among the four would
have highest priority of claim to the collateral?
A) Darrel
B) Smith
C) Keith
D) Aaron
The suspension of certain legal actions by creditors against a debtor or the debtor’s
property is known as a(n) ________.
A) discharge of debt
B) composition
C) automatic stay
D) order for relief
________ damages are awarded when the nonbreaching party sues the breaching party
even though no financial loss has resulted from the breach.
A) Consequential
B) Compensatory
C) Nominal
D) Liquidated
What happens to the life insurance proceeds upon the death of the insured who has not
named a beneficiary?
A) The proceeds are given to the state.
B) The proceeds remain with the insurer for the full-term of the insurance.
C) The proceeds are given to charitable organizations.
D) The proceeds go to the insured’s estate.
Luminax Electric, in its bid to take over Greenwave Electric, buys a block of stock from
Greenwave before making a tender offer. After a month, Luminax decides to give up its
tender offer and agrees not to purchase any further shares if Greenwave agrees to buy
back the stock at a premium over fair market value. Luminax’s agreement is an example
of a(n) ________ agreement.
A) plea bargaining
B) operating
C) standstill
D) settlement
Which of the following statements is true regarding the relationship between law and
ethics?
A) All ethical standards have been enacted as law.
B) Ethics establish a minimum degree of conduct while the law demands more.
C) Ethics and the law are completely unrelated to each other.
D) Law establishes a minimum degree of conduct while ethics demand more.
The tort of defamation of character requires a plaintiff to prove that the defendant
________.
A) assaulted the plaintiff while threatening to cause unauthorized physical harm
B) impersonated the plaintiff for commercial purposes
C) published an untrue statement of fact about the plaintiff to a third party
D) made one or more financial deals with the plaintiff under a false identity
The ________ states that a drawer or maker is liable on a forged or unauthorized
indorsement if the person signing as or on behalf of a drawer or maker intends the
named payee to have no interest in the instrument or when the person identified as the
payee is a fabricated person.
A) imposter rule
B) fictitious payee rule
C) fraud in the inception rule
D) fraud in the inducement rule
Which of the following is regulated by the Securities Act of 1933?
A) fraud in the purchase and sale of securities
B) hedge funds and derivatives
C) investor reports
D) online issuance of securities
Tina Harley was on her way home when an assailant stopped her car and threatened to
physically harm her if he ever saw her drive on that street again. Tina can sue the
assailant to recover damages for ________.
A) assault
B) slander
C) libel
D) disparagement
The power of the federal government to make treaties with Native American nations
regarding land use is derived from the ________.
A) Commerce Clause
B) Equal Protection Clause
C) Privileges and Immunities Clause
D) Supremacy Clause
Sending an objectionable telegram to a third party under the false pretenses of another
person is an example of ________.
A) invasion of the right to privacy
B) assault
C) battery
D) intentional misrepresentation
The ________ refers to the duty of the insurer to protect the insured against lawsuits or
legal proceedings that involve a claim within the coverage of the insurance policy.
A) duty of strict liability
B) duty to pay
C) duty of reasonable care
D) duty to defend
The ________ authorizes the U.S. government to clean up oil spills and spills of other
hazardous substances in ocean waters within 12 miles of the shore and on the
continental shelf and to recover the cleanup costs from responsible parties.
A) Clear Water Act
B) Comprehensive Environmental Response, Compensation, and Liability Act
C) Federal Water Pollution Control Act
D) Marine Protection, Research, and Sanctuaries Act
Which of the following statements best describes imputed knowledge?
A) It refers to information collected by a principal prior to engaging in an agency.
B) It refers to information collected by a principal on an agency.
C) It refers to information learned by an agent that is attributed to the principal.
D) It refers to information learned by a principal that is attributed to an agent.
Which school of jurisprudence views law as a sort of evolutionary process, where
changing norms of society will be reflected in the law?
A) the Natural Law School of jurisprudence
B) the Sociological School of jurisprudence
C) the Analytical School of jurisprudence
D) the Historical School of jurisprudence
A ________ refers to a contract that transfers limited rights in intellectual property and
informational rights.
A) lien
B) tender
C) license
D) trademark
The Pittsburgh Peelers are a professional soccer team playing in the national league.
They recently approached Darth Water, a leading sports-drink manufacturer, to sponsor
their team for the upcoming season. Darth Water agrees to sponsor the team for an
amount of $1 million, to be paid in installments over the course of the season. Darth
Water instructs its bank, Orange County Bank, to wire the funds to Pittsburgh Peelers’
bank, the Jersey Shore Bank, with instructions to credit Pittsburgh Peelers’ account.
Which of the following parties is the originator of the wire transfer in the above case?
A) Pittsburgh Peelers
B) Jersey Shore Bank
C) Darth Water
D) Orange County Bank
The ________ is a federal statute that permits private parties to sue companies for fraud
on behalf of the government and share in any monetary recovery.
A) Business Norms Act
B) Sarbanes-Oxley Act
C) Glass-Steagall Act
D) False Claims Act
________ is a social responsibility theory of business which says that a corporation
must consider the effects its actions have on persons other than its shareholders.
A) Corporate citizenship
B) Maximizing profits
C) Moral minimum
D) Stakeholder interest
Which of the following is true of Chapter 13 plan of payment?
A) It does not require a debtor to disclose his or her estimated income during their
period of plan.
B) It must be filed not later than 90 days after the order for relief.
C) The plan of payment is summarily rejected if a secured creditor does not accept the
plan.
D) The plan of payment is summarily rejected if an unsecured creditor does not accept
the plan.
Which of the following torts constitutes battery?
A) trespassing into private property
B) hacking into an individual’s personal computer
C) embezzling funds in a company
D) punching a person in the abdomen
Which of the following statements is true about an audit?
A) Only an independent CPA must perform an audit.
B) An auditor may use the accounting standards defined by his or her accounting firm
to perform an audit.
C) Verifying information from third parties is not a necessary step in an audit.
D) The process of preparing a company’s annual financial statements is called auditing.
A ________ is a will in which two or more testators execute separate wills that leave
their property to each other on the condition that the survivor leave the remaining
property on his or her death as agreed by the testators.
A) nuncupative will
B) mutual will
C) joint will
D) living will
A situation in which both parties are equally at fault in an illegal contract is termed
________.
A) suo moto
B) in pari delicto
C) corpus juris
D) habeus corpus
Which of the following is an example of an order paper?
A) a check indorsed “pay to Josh”
B) a check payable to the order of Josh and indorsed in blank
C) a note payable to Josh and indorsed in blank
D) a note payable to bearer
If the lease is a finance lease and the supplier is a merchant, the risk of loss passes to
the ________ on the receipt of the goods.
A) lessee
B) lessor
C) supplier
D) financer
Which of the following interests in real property transfers to another person after the
present holder’s death?
A) easement
B) mortgage
C) accommodation
D) life estate
Which of the following statements is true of email contracts?
A) All email contracts require consideration, capacity, and lawful object.
B) Email contracts are exempted from the requirements of the Statute of Frauds.
C) Email contracts are enforceable even if they don’t meet the requirements of a
traditional contract.
D) Several emails cannot be integrated to determine the parties’ agreement.
Section 8(a) of the NLRA prohibits unions from engaging in unfair labor practices that
interfere with a union election.
Which of the following is true of bribery?
A) The offeror is guilty only when the offeree accepts the bribe.
B) The offeree is guilty even if he/she rejects the bribe offer.
C) The offeror is guilty even if the offeree rejects the bribe.
D) The offeror is not guilty when a bribe is tendered.