A subpoena to testify or to produce records:
a. is prohibited by the constitutional guarantee against unreasonable searches and
seizures.
b. is an illegal attempt to gain information by compulsion.
c. cannot be opposed on the grounds that such a request constitutes an unreasonable
search and seizure.
d. must be approved by corporate officers to be effective.
Letters testamentary:
a. are given to an administrator.
b. are given to an executor.
c. require a bond to be filed by the person to whom they are given if the will exempts
the requirement.
d. none of the above.
Sally operates a large manufacturing firm near a federal land preserve known for its
waterfowl and fauna. The federal government has just filed suit against Sally and her
corporation, charging them with criminal violations of various environmental protection
statutes. What rights do Sally and her corporation have that are guaranteed under the
United States Constitution?
Winona was a person of average intelligence, education, and experience in business.
She negotiated for the purchase of insurance and paid the premium. The policy was
mailed to her, but before it arrived a loss was suffered. When the policy was read,
Winona could not determine whether the loss was covered because the policy was too
difficult to understand. The loss is:
a. not covered unless expressly stated to be covered.
b. covered because the insurer had an obligation to word the policy in an
understandable way.
c. not covered unless stated to be so in a rider.
d. covered if included in an express exception to the policy.
An oral contract can be enforced when it relates to:
a. the purchase of a television set for $200.
b. the sale of an interest in land for $400.
c. managing a factory for five years.
d. a promise to answer for the debt of another.
Most courts hold that when a customer takes an item from the shelf in a self-service
store, there is:
a. no sale.
b. a sale.
c. a contract to sell.
d. a conditional sale.
A holder may:
a. demand payment.
b. bring suit for the collection of an instrument.
c. give a discharge or release from liability on the instrument.
d. all of the above.
In a __________, no sale takes place (meaning there is no transfer of title) until the
buyer accepts the goods.
a. conditional sale
b. contingency sale
c. sale or return
d. sale on approval
The answer to the complaint is filed by the:
a. defendant.
b. prosecutor .
c. plaintiff.
d. judge.
Which of the following statements is incorrect about fixtures?
a. Personal property may become a fixture by annexation to the realty.
b. Personal property may become a fixture by adaptation to the realty.
c. Personal property may become a fixture based on the intent of the person affixing the
personal property to the realty.
d. Personal property that is readily removable from the realty is generally a fixture.
When ambiguous language exists:
a. words control figures if a conflict exists.
b. handwriting supersedes typewritten words or terms.
c. typewritten terms supersede preprinted terms.
d. all of the above.
The person to whom an insurance promise is made is called:
a. the insured.
b. the insurer.
c. the policyholder.
d. both a. and c.
In a bilateral contract, each party will be a promisor and, therefore, each party will:
a. be an obligor.
b. be able to avoid the contract.
c. not be in privity of contract.
d. be an agent for the other side.
Sources of American law include:
a. state constitutions.
b. statutes enacted by state legislatures.
c. court decisions.
d. all of the above.
If there is a time limitation or any other restriction in a contract, a third-party
beneficiary:
a. may ignore it.
b. may void it.
c. is bound thereby.
d. must consent to be bound thereby before it is effective.
The right of an employee to pension benefits paid into a pension plan in the employee’s
name by the employer is referred to by the term:
a. venue.
b. accrual.
c. vesting.
d. investing.
An illegal provision in a contract:
a. causes the entire contract to be voidable.
b. causes the entire contract to be rescinded.
c. can be ignored by the parties in their performance of the remaining provisions of the
contract, assuming that the remaining portions of the contract can stand on their own.
d. can be ignored by the parties, because an illegal provision in a contract is not deemed
substantial.
The Ex-IM Bank:
a. helps U.S. manufacturers export goods by provides loan guarantees.
b. receives funding from the U.S. Treasury to help sustain its operations.
c. has a financing cap of $100 billion.
d. all of the above.
Defamation of a public figure requires what additional element?
a. Intent
b. Malice
c. Causation
d. none of the above
In order for a trust to be created, who must be able to hold legal title?
a. the beneficiary only
b. the trustee only
c. either the beneficiary or the trustee
d. both the beneficiary and the trustee
A partner may withdraw from the partnership without liability:
a. unless the withdrawal violates the partnership agreement.
b. when the partnership is not for a definite purpose.
c. when the partnership is not for a definite time.
d. all of the above.
When the president negotiates a treaty with a foreign country and submits it to the
Senate for approval, the president’s action is:
a. an express Constitutional amendment.
b. an amendment by judicial interpretation.
c. an amendment by practice.
d. the power of manifest destiny.
A __________ is a completed sale with an option for the buyer to return the goods.
a. conditional sale
b. contingency sale
c. sale or return
d. sale on approval
If an offeree dies before the offer has been accepted, the offer:
a. may be rejected by the surviving spouse of the offeree.
b. may be accepted by the surviving spouse of the offeree.
c. is automatically revoked by the death of the offeree.
d. may be accepted by the guardian appointed for any minor children of the offeree.
A security interest that is effective against third persons as well as against the buyer is
called a:
a. universal security interest.
b. prohibitive security interest.
c. perfected security interest.
d. protective security interest.
If an owner has acted in a way that misleads others, the owner may be __________from
asserting ownership.
a. estopped
b. voided
c. breached
d. identified
Negotiation of order paper requires:
a. delivery only.
b. indorsement only.
c. both indorsement and delivery.
d. neither indorsement nor delivery.
An administrative agency:
a. is not empowered to act as a court with regard to its own regulations.
b. acts as a specialized court of limited jurisdiction.
c. can hear complaints only in the presence of a jury.
d. cannot impose penalties for violation of its regulations.
The policing of fraudulent advertising is entrusted to which of the following
administrative agencies?
a. IRS
b. FTC
c. UCCC
d. FDA
Property may be taken from its private owner and the title acquired by the taking
government or public authority under the power of:
a. a restrictive covenant.
b. eminent domain.
c. an affirmative covenant.
d. restraint.
If the plaintiff has either engaged in or refrained from actions that are at least partially
to blame for the injuries received, what negligence has occurred?
a. criminal
b. contributory
c. personal
d. prejudicial
A limited liability company:
a. must have at least one member that is subject to unlimited liability.
b. member may actively participate in control of the business without losing limited
liability status.
c. both a. and b.
d. neither a. nor b.
Failure to mitigate damages limits recovery to:
a. damages that would have been sustained had the plaintiff mitigated the damages
where it was possible to do so.
b. nominal damages and punitive damages.
c. damages for consequential loss.
d. exemplary damages.
Voir dire examination is used in connection with:
a. determining whether the pleadings are valid.
b. jury selection.
c. deciding whether to appeal a trial court decision.
d. none of the above.
A cancellation provision:
a. makes a promise illusory.
b. gives a person a free way out.
c. is limited to the terms set forth by the provision.
d. none of the above.
The right of privacy does not apply to intrusions into our privacy by means of new
technology.
A payee is not liable on an instrument until the payee transfers the instrument to
someone else.
Whenever a sale of goods is made, certain warranties are implied unless they are
expressly excluded.
Details of performance of a contract not expressly stated in a contract will often be
implied by the court.
Managers of an LLC have the same fiduciary duties to the entity as corporate officers
have to a corporation.
Recognizing that an ethical dilemma exists is usually far more difficult than resolving
the dilemma once its existence is recognized.
Ordinarily contracts for the performance of personal services are specifically ordered.
Payment by check is a conditional payment.
If a seller under a shipment contract sends nonconforming goods, the risk of loss in
transit is on the buyer.
A universal defense will defeat a holder in due course and a holder through a holder in
due course.
The rights and duties of the landlord and tenant are based on principles of real estate
law and contract law.
Social invitations can be offers.
State laws designed to protect the public from the sale of worthless stocks and bonds
are known as “clear sky” laws.
An assignee’s rights are the same as those that had been possessed by the assignor.
An administrative agency is a governmental body charged with administering and
implementing legislation.