Greenmart Retailers contracts Wilson’s Foodstuff to purchase biscuit packets in bulk.
Greenmart Retailers fulfills its side of the contract by making a complete payment to
Wilson’s Foodstuff before the delivery. A week after the payment, Wilson’s Foodstuff
becomes insolvent. Which of the following rights can Greenmart Retailers exercise to
recover its goods from Wilson’s Foodstuff?
A) right to capture
B) right to cure
C) right to withhold delivery
D) right to dispose of goods
Gary and Mary are siblings involved in a legal tangle over who gets possession of their
ancestral home. Gary threatens to kill Mary’s husband if she does not sign papers
declaring Gary’s sole ownership of their home. This is an instance of ________.
A) scienter
B) battery
C) misrepresentation of law
D) duress
Which of the following closely resembles a joint venture?
A) a conglomerate
B) a merged company
C) a franchise
D) a partnership
Which of the following is true about domain name registration?
A) A single domain name can be registered with multiple users at the same time.
B) Domain names can be registered online through the Internet.
C) Domain name registration is typically an expensive process.
D) A company cannot register its own name as its domain name.
________ is a provision of the Securities Act of 1933 that imposes civil liability on
persons who intentionally defraud investors by making misrepresentations or omissions
of material facts in the registration statement.
A) Section 24
B) Section 12
C) Section 11
D) SEC Rule 506
In which of the following ways does the FDA regulate cosmetics?
A) by adding warnings for potential carcinogens
B) by regulating the sale of cosmetics through exclusive FDA-approved stores
C) by placing a complete ban on animal testing in the cosmetic industry
D) by autonomously undertaking criminal proceedings against nonconforming cosmetic
companies
The written document submitted by a person who has been authorized by a shareholder
to vote the shareholder’s shares at the shareholders’ meetings in the event of the
shareholder’s absence is known as ________.
A) proxy
B) derivative
C) scienter
D) quorum
A(n) ________ is a document of title issued by a common carrier stating that the bailor
has title to the bailed goods.
A) bill of lading
B) accession
C) delivery order
D) freight forwarder
Which of the following statements is true of general partnership?
A) A business should make a profit in order to qualify as a general partnership.
B) The general partners need not be the co-owners of the business.
C) Charity organizations and schools are mostly formed from general partnerships.
D) A general partnership can be either oral or implied from the conduct of the parties.
Which of the following statements is true about the arbitration procedure?
A) When one party seeks to enforce an arbitration clause, it must give notice to the
other party.
B) In the event of nonbinding arbitration, the decision and award of the arbitrator
cannot be appealed to the courts.
C) In the event of binding arbitration, the decision and award of the arbitrator can be
appealed to the courts.
D) No new evidence, witness, or testimony can be introduced during the arbitration
procedure.
Article III of the Constitution establishes the ________ of the federal government.
A) executive branch
B) electoral branch
C) judicial branch
D) legislative branch
As defined by the Magnuson-Moss Warranty Act, a warranty which guarantees that a
defective product will be repaired or replaced free during the warranty period is known
as a(n) ________.
A) “as is” disclaimer
B) full warranty
C) warranty disclaimer
D) limited warranty
________ is described as the theory or philosophy of law.
A) Morality
B) Ethics
C) Natural law
D) Jurisprudence
According to the ULPA, which of the following is first in the order of distribution of
partnership assets upon the winding up of a general partnership?
A) creditors
B) creditor-partners
C) partner’s capital contributions
D) remainder of the proceeds
Which of the following statements is true of a negotiable instrument?
A) It should be signed by the payee.
B) It can be either written or oral.
C) It should not require any undertaking other than the payment of money.
D) It need not state a fixed amount of money and can include a service that needs to be
rendered.
A(n) ________ occurs when one person agrees to answer for the debts or duties of
another person.
A) main purpose exception
B) mortgage
C) guaranty contract
D) implied integration
Joe buys a trailer from a used-car dealership. During the sale, the dealer tells him that
the trailer is in great condition. However, three days later, the trailer breaks down.
Investigation by Joe reveals that the trailer had seven previous owners and that the
engine has been replaced thrice. An automobile expert tells Joe that the trailer is in a
dangerous state. Which of the following frauds would the dealer be liable for?
A) fraud in the factum
B) fraud in the inducement
C) silence as misrepresentation
D) misrepresentation of law
The primary responsibility for enforcing the provisions of the Clean Water Act falls to
________.
A) the federal government
B) independent agencies
C) the state government
D) nonprofit organizations
In which of the following can the Statute of Frauds be raised under common law of
contract?
A) when a seller of specially manufactured goods has made commitments for
procurement for an oral agreement
B) when the party against whom enforcement of an oral sales or lease contract is sought
admits of such a contract in court
C) when the writing must be signed by the party against whom enforcement is sought
D) when there has been no written confirmation of a contract between two merchants
Which of the following clauses protects the insurers from intentional or unintentional
material or informative misrepresentation from an insurance applicant?
A) exclusions from coverage clause
B) incontestability clause
C) deductible clause
D) coinsurance clause
Which of the following is true of misrepresentation of law not involving professional?
A) The aggrieved party can sue for damages.
B) The two parties can sue each other for fraud.
C) The aggrieved party may rescind the contract but cannot sue for damages.
D) The innocent party cannot generally rescind a contract.
Why do courts need to accomplish a service of process?
A) to obtain personal jurisdiction over the plaintiff in a lawsuit
B) to obtain personal jurisdiction over the defendant in a lawsuit
C) to obtain jurisdiction to hear a case where the court has jurisdiction over the property
in the lawsuit
D) to obtain jurisdiction over nonresidents who were not served summons within the
state
The ________ is a federal statute that makes it illegal for an employer to discriminate
against job applicants and employees based on genetic information.
A) ADA
B) GINA
C) ADAAA
D) OWBPA
An agency by ratification occurs when the principal ________.
A) accepts an unauthorized act created by an unauthorized agent
B) accepts an authorized act created by an authorized agent
C) creates the appearance of an agency that in actuality does not exist
D) accepts an act carried out under the implied authority of an agent
Which of the following forms of tenancy involves the possession of property without
right?
A) tenancy at sufferance
B) periodic tenancy
C) tenancy for years
D) tenancy at will
The parental duty of support terminates if a minor becomes ________.
A) poor
B) emancipated
C) diseased
D) intoxicated
Cameron, a purported agent, signs a contract and promissory note to purchase a
building for Burnstar Constructions, a purported principal. Though Cameron is an
unauthorized representative, Burnstar Constructions likes the deal and accepts it. Which
of the following is true of the deal ratified by Burnstar Constructions?
A) The deal is invalid due to the fraud in the inducement rule.
B) The deal is invalid due to the fraud in the inception rule.
C) Burnstar Constructions is liable on the note.
D) Cameron is liable on the note.
Dissolution of a corporation that has begun business or issued shares upon
recommendation of the board of directors and a majority vote of the shares entitled to
vote is known as ________.
A) liquidation
B) judicial dissolution
C) administrative dissolution
D) voluntary dissolution
The Age Discrimination in Employment Act (ADEA) permits age discrimination when
________.
A) it does not require a bona fide occupational qualification (BFOQ)
B) it is a necessary qualification for a job
C) it is a traditional practice within an organization
D) it creates a hostile work environment
Quentin is a member of the Album of the Month Club and receives a new music CD
every month without fail. The Club usually gives its members a time period within
which they can reject the selection and stop shipment of the CD, failing which the CD
will be shipped. Last month, Quentin received a CD from the Club, a copy of which a
friend had already gifted him. He had not found time to reject the offer as he was busy.
Quentin could not reject the CD and had to buy it. What kind of an offer-acceptance is
exemplified in this scenario?
A) mirror image rule acceptance
B) silence as acceptance
C) acceptance-upon-dispatch
D) unequivocal acceptance