Who amongst the following is an “expert” under Section 11 of the Securities Act of
1933?
A. A consultant who is an independent director of a company making a public
distribution of securities.
B. An auditor who issues an opinion regarding financial statements of a company
making a public distribution of securities.
C. An accountant in the accounts division of a publicly traded company which is issuing
new securities to the public.
D. An underwriter who is involved in issuance of new securities to the public by a
publicly traded company.
The buyer usually can inspect goods before payment except:
A. where payment is made by check.
B. when the goods are perishable.
C. where the goods are shipped COD.
D. when the buyer pays in a foreign currency.
An order charging all or part of the partner’s transferable partnership interest with
payment of the unsatisfied amount of the judgment is called a(n) _____.
A. interim charge
B. redeeming order
C. charging order
D. redeeming the charge order
Which of the following is an exception to a consideration requirement?
A. Bargained-for exchange
B. Charitable subscription
C. Nominal consideration
D. Adequacy of consideration
Which of the following grants a person unconditional power to dispose of the property
during her lifetime or upon her death?
A. License
B. Easement
C. Fee simple absolute
D. Profit
Leases are regulated by what government entity/laws?
A. International treaties and International Organizations
B. Federal government and U.S. Constitution
C. State and Local
D. Native American tribal governments
Which of the following is true of patents?
A. Patents fall under the jurisdiction of state laws.
B. Naturally occurring things are patentable.
C. Abstract ideas are not patentable.
D. U.S. patent laws have changed since the mid-1990s.
For a proposal to be considered a contractual offer then the offeror must have what type
of intent?
A. Present intent to contract
B. Future intent to contract
C. No intent to contract
D. Past intent to contract
The Statutory Close Corporation Supplement to the MBCA permits a corporation with
_____ shareholders to elect to become a close corporation.
A. fewer than 100
B. 50 to 75
C. 75 to 100
D. fewer than 50
Stella, Bob, and Chris are partners in Sole Services, a general partnership that operates
a shoe store. One day Stella’s ex-husband Dan comes into the store to buy shoes. Stella
is still angry over the divorce. While Dan’s back is turned to Stella, she stabs him with a
knife, inflicting serious injuries. Dan wants to sue Stella, the partnership, and each
partner. Who could be required to pay for Dan’s injuries?
A. Stella only
B. Stella and the partnership only
C. Stella and each partner
D. Stella, the partnership, and each partner
Which of the following are also called special damages?
A. Nominal damages
B. Liquidated damages
C. Punitive damages
D. Consequential damages
Certified checks must be made available by:
A. the next day after the day of deposit.
B. within four days.
C. on the same day.
D. any business day.
Melanie owes $250 to Jessica. Jessica gifts the right to receive the money from Melanie
to her daughter Kelly in writing. This assignment is:
A. unenforceable since a beneficiary modification is prohibited.
B. enforceable despite the lack of consideration.
C. unenforceable because contractual rights cannot be assigned.
D. enforceable because the gift is made in writing.
What agency regulates underground waste disposal units in the United States?
A. EPA
B. IRS
C. SEC
D. FTC
When an agency is asked to release documents that are exempted from disclosure under
the Freedom of Information Act, the agency:
A. has a statutory obligation to refuse disclosure of the exempted documents.
B. may refuse disclosure but does not have an affirmative duty to do so.
C. can be compelled by individuals named in exempted documents to deny a request of
disclosure of those documents.
D. is liable for punitive damages if it discloses the exempted documents.
A clause in a mortgage specifies that “if the mortgaged property is sold, then the
remaining balance becomes immediately due and payable.” This clause is called:
A. action and sale clause.
B. strict foreclosure clause.
C. due on sale clause.
D. subrogation clause.
The judicial branch of the SEC:
A. promulgates rules and regulations.
B. decides whether a person has violated the securities laws.
C. makes new laws regulating securities.
D. brings enforcement actions against alleged violators.
Agencies that invoke a power to search and seize evidence as part of an effort to prove
a regulatory violation are subject to what constitutional prohibitions?
A. First Amendment Freedom of Press
B. Fourth Amendment Protection against Unreasonable Searches
C. Tenth Amendment State Powers
D. Second Amendment Right to Bear Arms
Under the _____ system, the subcontractors or materialmen have direct liens and are
entitled to liens for the value of labor and materials furnished, irrespective of the
amount due from the owner to the contractor.
A. strict foreclosure
B. New York
C. conditional foreclosure
D. Pennsylvania
Any of the managers in a manager-managed LLC may be removed at any time by a
vote of:
A. one third of all LLC members.
B. two-thirds of all LLC members.
C. a majority of LLC members.
D. the board of directors.
Administrative agencies are what kind of bodies?
A. Commercial
B. Government
C. International
D. Corporate
Which of the following augments the powers of Congress by permitting it to enact laws
that are useful or conducive to the exercise of those enumerated powers?
A. The Commerce Clause
B. The taxing power
C. The spending power
D. The Necessary and Proper Clause
In his April 2011 credit card bill, Shawn noticed an entry for $1,179 paid by him to a
resort on the west coast. Shawn lives in Montpelier, VT and claims he last traveled to
the west coast almost two years back. In May 2011, he gave a written notice of the
alleged error in the billing statement to his credit card issuer. Assume that the credit
card issuer has failed to comply with the rules of the Fair Credit Billing Act. Under this
Act, how much of the disputed amount can the issuer collect from Shawn?
A. $1,179
B. $1,079
C. $1,229
D. $1,129
Mr. Green enters into a contract with Mr. Blue who is a crab fisherman. Mr. Green and
Mr. Blue know that Mr. Blue has already caught the number of crabs allowed for the
season. But Mr. Green and Mr. Blue agree to a contract to exceed the quota. What is the
status of the contract between Mr. Green and Mr. Blue?
A. The contract is voidable, and is enforceable till Mr. Blue cancels it
B. The contract is void since it attempts to contract for services that are illegal
C. The contract is valid and enforceable
D. The contract will be valid if registered with the Secretary of State
Identify the type of employers covered by Title VII of the Civil Rights Act of 1964.
A. Employers with 3 employees or more and engaged in an industry affecting intrastate
commerce.
B. Employers with 15 employees or more and engaged in an industry affecting
interstate commerce.
C. Employers with 30 employees or more and engaged in an industry affecting
intrastate commerce.
D. All employers engaged in industries affecting interstate commerce.
Which of the following is a characteristic of the doctrine of constructive eviction?
A. It aids landlords to evict tenants who default on rents.
B. It aids tenants to vacate property that is unsuitable.
C. It requires no legal notice, either before or after eviction.
D. It applies only to residential property.
The ____ Amendment forbids cruel and unusual punishments.
A. First
B. Eighth
C. Fourteenth
D. Fifteenth
The _____ that the plaintiff is required to prove are his usual—and typically his only—
remedy in injurious falsehood cases.
A. special damages
B. statutory damages
C. compensatory damages
D. punitive damages
What type of damages can a plaintiff recover under Title VII when the defendant
discriminated with malice or with reckless indifference to the plaintiff’s rights?
A. Compensatory damages
B. Nominal damages
C. Punitive damages
D. Contemptuous damages
Ads that limit the power of acceptance to one offeree or a small number of offerees, are
highly specific about the nature and number of items offered for sale and what is
requested in return is considered to be _____.
A. offers
B. invitations to negotiate
C. invitations to offer
D. obligations