The legal definition of a guest of a hotel requires that the person:
a. live at least five miles from the hotel.
b. is a guest of a registered occupant of the hotel.
c. is a transient.
d. stay at the hotel for at least 22 hours.
A business formula, information compilation, or device that provides an advantage over
competitors that do not have it is known as a:
a. competitive advantage.
b. strategic advantage.
c. trade secret.
d. restraint of trade.
To establish a gift, the party claiming to be the donee must prove:
a. delivery only.
b. intent only.
c. intent and a promise to deliver.
d. intent and delivery.
A tenant in possession has control of the property and is liable when his or her failure to
use due care under the circumstances causes harm to:
a. invitees.
b. licensees.
c. trespassers.
d. a. or b.
When a tenant remains in possession after the termination of the lease without
permission of the landlord, the landlord may treat the tenant as either a trespasser or a
tenant. Until the landlord elects to do one or the other, a tenancy __________ exists.
a. at sufferance
b. at will
c. for years
d. from year to year
An examination of goods excludes any implied warranty with respect to a defect that:
a. is apparent after a reasonable examination is made.
b. will not be apparent without chemical analysis.
c. will not be apparent until the goods are processed or used in manufacturing.
d. is unknown to all parties and is not detectable by reasonable examination.
A bailment:
a. cannot be based on an oral agreement.
b. can involve real or personal property.
c. requires that title be passed to the bailee.
d. transfers possession to the bailee.
A consumer may rescind a contract without liability when the contract is for:
a. the purchase of a new automobile.
b. the purchase of a used automobile.
c. a home-solicited sale of services for $50 that was made two (2) days earlier.
d. a home-solicited sale of goods for $25 that was made seven (7) days earlier.
An accountant guilty of malpractice can be sued:
a. for breach of contract only.
b. for negligence only.
c. for breach of contract or for tort liability.
d. in federal court only if the suit is brought by a third person.
Which of the following is not an example of incidental damages recoverable by a
seller?
a. expenses for the care of the goods after the buyer’s breach
b. expenses for transportation of the goods after the buyer’s breach
c. expenses for resale of the goods after the buyer’s breach
d. expenses for the attorney’s fees after the buyer’s breach
An offer of a reward for the arrest and conviction of a criminal is an example of a:
a. unilateral contract.
b. bilateral contract.
c. quasi contract.
d. formal contract.
Consumer protection statutes and regulations do not protect against:
a. deceptive advertising.
b. the consumer’s own negligence.
c. unsolicited credit cards sent to creditworthy consumers.
d. unreasonable methods of debt collection by debt collection agencies.
All negligence malpractice suits by third persons are prohibited by courts that follow
the:
a. contract rule.
b. contact rule.
c. privity rule.
d. direct parties rule.
A contract under which one or both parties have not yet fully performed is termed a(n):
a. void agreement.
b. executory contract.
c. executive contract.
d. executed contract.
If a buyer procures the same or similar goods as those involved in the sales contract
breached by the seller, the buyer:
a. loses all rights to prosecute for breach.
b. is said to have validated the seller’s action.
c. is said to have covered.
d. is also in breach.
Which of the following statements is true?
a. Felonies are less serious than misdemeanors.
b. Felonies involve white-collar crimes only.
c. Felonies are more serious than misdemeanors.
d. Felonies are federal crimes only.
Professionals have a duty to perform their jobs at the level of:
a. a reasonable person.
b. a reasonable professional in the same business.
c. an extraordinarily careful person.
d. none of the above.
The legislative branch of government has the function of:
a. making laws.
b. executing the laws.
c. interpreting the laws.
d. none of the above.
When a partnership is dissolved by the act of a partner, notice:
a. is not required.
b. must be given to the other partners only.
c. must be given to third persons only.
d. must be given to both other partners and third persons.
A gift causa mortis is revoked if:
a. the donor does not die.
b. the donor revokes the gift before dying
c. the donee dies before the donor.
d. all of the above.
Under which organizational structure would the death of the owner have no legal
effect?
a. a partnership
b. a corporation
c. a sole proprietorship
d. all of the above
In order for a bailment to be valid, the bailor must be the owner of the subject property.
It is possible for a limited partner to be subject to the debts of the firm if the limited
partner participates in the control of the business.
Sales law includes special rules that apply to merchants.
Ethical violations can cause lasting detriment to a company’s ability to do business
through impacts on the company’s reputation.
Before an appeal can be taken to a court concerning a determination of an agency, all
administrative remedies must be exhausted.
Self-help repossession of collateral upon a buyer’s default is contrary to public policy
and never is allowed.
Employment law is based on a combination of contract law and the law established by
courts, lawmakers, and administrative agencies.
Bankruptcy law does not regulate the manner in which the assets of the debtor are
distributed; instead, distribution of the debtor’s assets is solely within the discretion of
the trustee.
A tenant in possession has control of the property and is therefore liable when the
tenant’s failure to use due care under the circumstances causes harm to licensees or
invitees.
Generally, the EEOC attempts to remedy an unlawful practice through conciliation.
An unenforceable promise will constitute consideration as long as the parties to the
contract appear to be in agreement.
The distinction between offer and acceptance is no longer relevant in cyberlaw.
Goods are called identified goods when they have been selected as the goods called for
by a sales contract.
The media enjoy a qualified privilege for stories that turn out to be false.
Individuals who steal valuable nonpublic information in breach of a fiduciary duty to
their employers and trade in securities on that information are guilty of insider trading
as “misappropriators.”
Fraud as to the nature or essential terms of an instrument is a limited defense not
available against a holder in due course.
Extortion and blackmail are exactly the same.
In an emergency, an administrative agency can act beyond the scope of the statute that
created it.
Arthur sustained an injury to his back. Arthur claimed the injury was suffered at work
and filed a claim for workers’ compensation benefits. The employer opposed this claim,
saying the injury, if real, was the result of a congenital condition. In accordance with the
statute, a hearing was held before the Workers’ Compensation Board, which ruled
against Arthur. Arthur became disgusted with the hearing officer and the proceedings
because Arthur felt that the hearing officer did not like him. Arthur has consulted an
attorney seeking to sue for workers’ compensation benefits. An appeal is available
within the agency, but Arthur wants to go directly to court because he feels that the
agency appeal would be useless. Discuss the merits of this strategy.