It is essential for new domain name registrants to verify whether the name is already
registered by another individual or business.
Only the Federal Trade Commission (FTC) can obtain an injunction under the FTC Act.
The Americans with Disabilities Act prohibits preemployment medical examinations
before a job offer for disabled applicants.
The Bureau of Consumer Financial Protection does not have to investigative or
subpoena powers.
For a contract to rescind, the parties to the contract must restitute the considerations
received under the contract.
The time period to bring suit for breach of contract remains constant across all states.
Two of the world’s largest countries, Japan and China, do not officially belong to any
significant economic community.
Profit corporations are private corporations that are created to conduct a business for
profit and can distribute profits to shareholders in the form of dividends.
All defendants except the issuer may assert a due diligence defense against the
imposition of Section 11 liability.
The doctrine of equitable estoppel is an equitable exception to the strict application of
the Statute of Frauds.
An insurance contract can be enforced even if the insured does not have an insurable
interest in the property being insured.
The Equal Employment Opportunity Commission does not justify the usage of the
English-only rule under any circumstances.
The president appoints two chief justices to the U.S. Supreme Court, who are
responsible for the administration of the Court.
If a partnership agreement provides for the sharing of losses but is silent as to how
profits are to be shared, profits are shared in the same proportion as losses.
An H4 visa holder is not eligible to work in the United States.
All federal and state courts in the U.S. must follow the precedents established by U.S.
Supreme Court decisions.
To require a bank to abide by a postdated check, the drawer must give a separate written
notice to the bank, describing the check with reasonable certainty.
Lease fees are payments for any land or equipment leased from the franchisor, billed
either as a flat monthly or an annual fee.
Replevin actions can only be claimed on goods that are unique.
Share exchanges are used to create holding company arrangements.
Under the Sarbanes-Oxley Act, the chief executive officer (CEO) and chief financial
officer (CFO) of a public company must file a statement accompanying each annual and
quarterly report.
Corporation codes are state statutes that regulate the formation, operation, and
dissolution of corporations.
The original owners of trademarked names can recover the domain names registered by
cybersquatters.
Jenny owns a computer on which she sends and receives email. Leonard learns Jenny’s
access code to her email account. Leonard opens Jenny’s email and reads her emails.
Leonard has violated the Electronic Communications Privacy Act.
The registration of a top-level domain name is subject to the process and investigations
by the ICANN.
The doctrine of promissory estoppel estops (prevents) the promisor from revoking his
or her promise based on lack of consideration.
The EU’s Council of Ministers is composed of representatives from each member
country.
Strategic alliances have the same protection as mergers, joint ventures, or franchising.
Article 4A of the UCC applies only to consumer electronic funds transfers.
The Resource Conservation and Recovery Act regulates the disposal of new hazardous
wastes.
Financing statement refers to a document filed by a secured party that ends a secured
interest because the debt has been paid.
An employee stock ownership plan (ESOP) is expected to ________.
A) vote the shares it possesses against a potential acquirer in a proxy contest
B) help shareholders of the target corporation convert their shares for a greater number
of shares of the acquiring corporation
C) aid shareholders of the target corporation convert their shares for a greater number of
debt securities of the target corporation
D) sell the crown jewels it owns to friendly parties in order to distract a potential
acquirer
A(n) ________ is a voluntary exchange of promises between two or more legally
competent persons to do, or refrain from doing, an act.
A) offer
B) advertisement
C) agreement
D) proposal
Jonathan Lopez wants to be his own boss and ventures into retailing fruit in the
neighborhood after borrowing some money from his mother. While obtaining a license
to carry out business in his city, Jonathan mentions the money he borrowed but forgets
to specify what type of business undertaking his store will be. Under which of the
following major forms of business is Jonathan’s store listed by default?
A) a general partnership
B) a sole proprietorship
C) a limited partnership
D) a limited liability corporation
A defendant who believes that he or she has been injured by the plaintiff can file
a(n)________ against the plaintiff.
A) injunction
B) cross-complaint
C) rejoinder
D) rebuttal
What is nolo contendere in legal proceedings?
A) a plea by which the defense attorney sets out reasons as to why the case should not
go to trial
B) a guilty plea where the defendant does not admit the act and asserts innocence
though there is sufficient evidence against the defendant
C) a plea where the accused agrees to the imposition of a penalty but does not admit
guilt
D) a plea by which the defense attorney exhibits evidences that the defendant is not fit
to stand for trial
Sam owns a record store that buys and sells old vinyl records. Sam sells some records
to Tammy through an online shop. Sam is considered a merchant. Sam ships the records
to Tammy. When Tammy receives the records they are broken. In this case, ________
bears the risk of loss.
A) Sam
B) Tammy
C) the carrier
D) the online shop
Dorothy is a nonmanager member of a 15-person manager-managed LLC that is
engaged in selling media spaces to advertising agencies. Dorothy secretly purchases
some media spaces that are in high demand from a few clients without telling the others
in the LLC, sells it to a few agencies, and gains huge profits for herself in the process.
Which of the following is true of the given scenario?
A) All the members can be held liable for breaching their duty.
B) Dorothy is liable for breaching her duty of care to the LLC.
C) Dorothy is liable for breaching her duty of loyalty to the LLC.
D) Dorothy is not violating any duty to the LLC.
Why was the Court of Appeals for the Federal Circuit created?
A) It was created to exercise appellate jurisdiction over members of the armed services.
B) It was created to hear cases that involve federal tax laws.
C) It was created to provide uniformity in the application of federal law in certain areas,
particularly patent law.
D) It was created to hear appeals from intermediate appellate state courts and certain
trial courts.
What is a holographic will?
A) a will that is revoked on behalf of a testator by a legal attorney
B) a will that requires the beneficiary to be the witness of the will
C) a will that is entirely handwritten and signed by the testator
D) a will that is orally declared at a testator’s deathbed
In which of the following cases do additional terms contained in an acceptance become
part of the contract as per the battle of the forms rule?
A) if the additional terms materially alter the original contract
B) if the sale is between two nonmerchants
C) if the additional terms expressly limit the acceptance to the terms of the offer
D) if the offeror notifies the offeree that he or she does not object to the additional terms
Where there has been a breach of warranty, the buyer or lessee may sue the seller or
lessor to recover ________ damages.
A) compensatory
B) exemplary
C) punitive
D) incidental
Which of the following is true of a contract with the no-arrival, no-sale term?
A) The buyer bears shipping costs and the risk of loss during transport.
B) The seller does not have to deliver replacement goods to the buyer in case of
damages during shipment.
C) The seller does not have to bear the expense and risk of loss of the goods during
transportation.
D) The buyer has to arrange for the shipment to be handed over to a carrier.
The consent of the parties to create a valid contract must be obtained by ________.
A) duress
B) undue influence
C) fraud
D) genuine means
Mrs. Dawson wrote a check to Kevin for $50 on New Year’s Day for clearing the snow
from her driveway on Christmas Eve. When Kevin tries to cash the check at Mrs.
Dawson’s bank, however, he is told that the check is stale. Which of the following is the
most likely reason for Mrs. Dawson’s check being dishonored by the bank?
A) Mrs. Dawson did not have enough funds in her checking account.
B) Mrs. Dawson had dated the check for the previous year instead of the current year.
C) Mrs. Dawson had not identified Kevin as the payee while writing out the check.
D) Mrs. Dawson had given Kevin a check which was dated more than six months ahead
of the date of issue.
In 1978, the ________ which prohibits employment discrimination because of
pregnancy, childbirth, or related medical conditions was enacted as an amendment to
Title VII of the Civil Rights Act.
A) Pregnancy Discrimination Act
B) Sex Discrimination Act
C) Gender Discrimination Act
D) Sexual Harassment Act
Which of the following is true about domain name extensions?
A) Domain name extensions that don’t have sales of goods and services are protected by
the trademark law.
B) The commercial use of domain name extensions is prohibited.
C) Domain name extensions cannot be made available for private purchase.
D) Country-specific extensions can be used as domain names.
The ________ Clause in the Constitution collectively prohibit states from enacting laws
that unduly discriminate in favor of their residents.
A) Due Process
B) Equal Protection
C) Establishment
D) Privileges and Immunities
Extortion of private persons is commonly referred to as ________.
A) blackmail
B) embezzlement
C) deceit
D) bribery
Which of the following statements is true of accountants’ liability to clients in breach of
contract suits?
A) Courts consider damages to include expenses incurred by the client in securing
another accountant to perform the needed services.
B) Courts usually award punitive damages if the auditor provides a disclaimer of
opinion after auditing clients’ financial statements.
C) An accountant who fails to perform the terms specified in an engagement can be
sued for damages only if the accountant displayed reckless regard.
D) Penalties incurred by the client for missed deadlines or lost opportunities are not
considered by courts while awarding damages.
Which of the following is a common misconception of a common law marriage?
A) the parties have to voluntarily intend to be husband and wife in order to establish a
common law marriage
B) only parties who have a marriage license can establish a common law marriage
C) living together is necessary to establish a common law marriage
D) cohabitation is sufficient in and of itself to establish a common law marriage
A person who is in possession of a negotiable instrument that is drawn, issued, or
indorsed to him or to his order, or to bearer, or in blank is referred to as a(n) ________.
A) holder
B) holder in due course
C) assignor
D) assignee
Which of the following is true of a bearer paper?
A) It is payable to a specific person who is named in the instrument.
B) It is payable to the person in possession of the instrument.
C) It is a promise to pay a specific sum of money to a specific payee.
D) It is promise to pay an additional undertaking other than money.
Which of the following is true of a branch office of a multinational corporation?
A) The branch office can be setup in a foreign country separate from the corporation.
B) The corporation and the branch office are considered to be separate legal entities by
law.
C) The branch office and the corporation are separated by a liability shield that exists
between them.
D) The corporation is liable for contracts of the branch office.
Which of the following theories of morality is Rawls’s Social Justice Theory
fundamentally derived from?
A) the theory of utilitarianism
B) the theory of ethical fundamentalism
C) the social contract theory
D) the moral relativism theory
The ________ is a federal statute, enacted in 1890, that makes certain restraints of trade
and monopolistic acts illegal.
A) Federal Trade Commission Act
B) Robinson-Patman Act
C) Clayton Act
D) Sherman Act
Which of the following statements is true of child labor regulations adopted by the
Department of Labor?
A) Children between the ages of 14 and 15 may work unlimited hours in nonhazardous
jobs.
B) Children between the ages of 16 and 17 may work limited hours in hazardous jobs.
C) Children under the age of 14 may work limited hours in nonhazardous jobs.
D) Children employed in agriculture have no time or work restriction.
________ is a situation in which a partner withdraws from a partnership without having
the right to do so at that time.
A) Winding up
B) Indemnification
C) Wrongful dissolution
D) Proliferation
Natura Cosmetics produces a hair color product and discloses its dangerous side effects
on the packaging along with the instructions. Natalie purchases the product and follows
the instructions of its use correctly after having read about the side effects. She is later
injured by the product due to the side effects described by the packaging. She files a
strict liability lawsuit against Natura Cosmetics. Which of the following defenses can
Natura Cosmetics successfully use against Angela?
A) generally known dangers
B) assumption of the risk
C) foreseeable event
D) crashworthiness
What are surface rights in real property?
A) the right to possess the earth beneath the land
B) the right to occupy the land
C) the right to possess personal property
D) the right to convert personal property to negotiable instruments
Preferred stock is an example of ________.
A) implicit securities
B) statutorily defined securities
C) common securities
D) investment contracts
________ is a clause in an international contract that designates which nation’s court
has jurisdiction to hear a case arising out of the contract.
A) Equal protection clause
B) Supremacy clause
C) Forum-selection clause
D) Choice of law clause
The U.S. Department of Agriculture (USDA) is the federal administrative agency that is
primarily responsible for regulating food products.
What is the statutory period of redemption?
A) The time limit that a trustee can claim legal title to the real property.
B) The time allotted to a mortgagor to redeem the property even after foreclosure.
C) The time by which the mortgagor has to pay his debts before foreclosure.
D) The time allotted by which a mortgagee must start legal proceedings against a
defaulter.
How can a corporation incorporated in one state conduct interstate commerce?
How has the Internet revolutionized commerce? Discuss its impact on the Constitution.
Discuss plea bargain procedure with an example.
Given that shareholder resolutions have a slim chance of being adopted, explain why
such resolutions are sponsored and submitted despite their low success rates.
Is it mandatory for union members to take part in a strike? How can a management
continue operations during a strike period?
Analyze the federal government’s division of powers between its three branches.
Discuss the need for outside directors in the board of directors of a company.
How does a court determine whether a person has been influenced by another in
making a will? Is such a will enforceable?
A person is tried for murder in front of 14 jurors. The jurors appear to be split in their
decision with 10 jurors voting guilty and 4 jurors voting not guilty. What is the best way
for the government to approach this case?
Are franchise agreements inclusive of counteroffers or additional terms to a contract?
Analyze the business environment that led to the enactment of the Sarbanes-Oxley Act.
Why is a sole proprietorship considered to be the simplest form of business
organization? Discuss the advantages and disadvantages of a sole proprietorship.
Analyze the circumstances that can be considered as a breach of loyalty.
Discuss whether the application of strict liability is fair to someone adjudged to be
liable for the same.
Discuss the criticism of Kantian ethics with an example.
Explain how the liability to a promoter’s contract is assumed between the promoters and
the corporation subject to that contract.
Explain the circumstances under which the Department of Labor defines child labor as
not violating any law.
Discuss the provisions under the Uniform Commercial Code (UCC) that mandates the
passage of the risk of loss when a buyer is to pick up the goods at a specified location.