Under the rational basis test, the courts will uphold government regulation as long as
there is a justifiable reason for the law.
If an accord is not satisfied, the other party can sue to enforce the accord.
According to the Historical School of jurisprudential thought, the law is an evolutionary
process.
Chapter 7 liquidation bankruptcy requires debtors to pay some of their future income to
pay off prepetition debts.
Under Article 2A of the Uniform Commercial Code (UCC), parties to the lease contract
have the right to insure their goods against losses.
A general-purpose clause stipulates the specific purposes and activities that the
corporation can engage in.
Fraud in the inception occurs if a person is deceived as to the nature of his or her act
and does not know what he or she is signing.
The NLRB is an administrative body composed of five members appointed by the
president and approved by the Senate.
Product liability is defined as the liability of manufacturers, sellers, and others for the
injuries caused by defective products.
A promise exhibits consideration if a person promises to perform an act or do
something he is already under an obligation to do.
A shareholder’s resolution must discuss day-to-day operations of a corporation.
A check that has been outstanding for less than three months is called a stale check.
Chapter 7 liquidation bankruptcy is also known as straight bankruptcy.
Ross makes an offer to Elizabeth to sell his automobile to her for $10,000. In this case,
Ross is the offeree and Elizabeth is the offeror.
Failure of a party to perform a duty in a sales or lease contract is defined as obligation.
Independent contractors are personally liable for their own torts.
The secretary of commerce is empowered to enforce the provisions of the Endangered
Species Act to marine species.
Under the federal Oil Pollution Act, a tanker owner-operator must prove that it is fully
insured to cover any liability that may occur from an oil spill.
Federal proxy rules require proxies to be confidential documents.
Genuineness of assent means that either party’s consent is obtained by duress.
The mirror image rule is a rule which states that an acceptance is effective when it is
dispatched, even if it is lost in transmission.
In a share exchange, the subsidiary corporation becomes the sole shareholder of the
parent corporation.
According to the FLSA, children aged 14 and 15 can only work as newspaper
deliverers.
A counteroffer by the offeree simultaneously terminates the offeror’s offer and creates a
new offer.
Financing statements are effective for one year from the date of filing.
First-degree murder is the unintentional and unlawful killing of a person due to a
negligent act.
Which of the following procedures permits foreclosure without court proceedings and
sale of the property through an auction?
A) deficiency sale
B) remortgage
C) power of sale
D) refinancing sale
A promise lacks consideration if a person promises to perform an act or do something
he is already under an obligation to do. This is called a(n) ________.
A) illegal consideration
B) preexisting duty
C) gift promise
D) illusory promise
The earnings and losses from a sole proprietorship are reported on ________.
A) the federal income tax filing document
B) the business license that is renewed each year
C) the proprietor’s personal income tax filing
D) the state income tax filing document
Rachel, who owes Sam $500, draws a check payable to Sam on her checking account at
City Bank. Rachel signs the check but leaves the amount blank. Sam fraudulently fills
in $10,000 and presents the check to City Bank, which pays it. In this case, ________.
A) City Bank can charge Rachel’s account $ 10,000
B) City Bank cannot pay Sam the full amount
C) City Bank must charge Sam’s account $10,000
D) City Bank must immediately contact Rachel
Which of the following statements best defines a partially disclosed agency?
A) It refers to an agency in which a contracting third party does not know of either the
existence of the agency or the principal’s identity.
B) It refers to an agency in which a contracting third party knows that the agent is
acting for a principal but does not know the identity of the principal.
C) It refers to an agency in which a contracting third party does not know the identity of
the principal.
D) It refers to an agency in which a contracting third party knows that the agent is
acting for a principal.
Chapter 7 of the Bankruptcy Code of the bankruptcy act of 2005 primarily deals with
________.
A) reorganization
B) adjustment of debts of a family farmer or fisherman with regular income
C) adjustment of debts of an individual with regular income
D) liquidation
A(n) ________ is considered a less serious crime; not inherently evil but prohibited by
society; and is punishable by fines or imprisonment for one year or less.
A) indictable offence
B) violation
C) felony
D) misdemeanor
What of the following is true of an “as is” disclaimer?
A) It limits all implied warranties.
B) It limits all express warranties.
C) It is a type of implied warranty.
D) It is a type of express warranty.
Which of the following is true of legally claiming a reward?
A) A promise of completing the requested act is sufficient for a claimant to claim the
reward.
B) The offeree must perform the requested act to claim the reward.
C) The claimant can claim the reward even if he or she came to know of the reward
subsequent to completing the act.
D) The offeror cannot withdraw the reward once the offer has been placed in the public
domain.
By allowing U.S. citizens to practice any religion of their choice, what essential
function of the law does the U.S. Constitution serve?
A) facilitating orderly change
B) maintaining the status quo
C) maximizing individual freedom
D) facilitating planning
Absolute liability to pay a negotiable instrument, subject to certain universal or real
defenses is known as ________.
A) primary liability
B) secondary liability
C) warranty liability
D) signature liability
Martha is walking along a street with her son when he is hit by a passing car just as he
steps off the pavement. He dies in his mother’s arms, leaving her traumatized. The court
hearing the case rules that Martha’s son was “not responsible for the accident.” Martha
can sue the person who killed her son to recover damages for ________.
A) misappropriation of the right to publicity
B) invasion of the right to privacy
C) negligent infliction of emotional distress
D) malicious prosecution
A(n) ________ occurs when an agent negligently makes a falsification to a third party.
A) intentional misrepresentation
B) fraud
C) deceit
D) innocent misrepresentation
Which of the following replaced the General Agreement on Tariffs and Trade (GATT)?
A) World Bank
B) World Trade Organization
C) International Monetary Fund
D) North American Free Trade Commission
Steve Templeton, the CEO of Rolland Motor Company, is contemplating the shutdown
of a plant in Kantron. The plant has been unprofitable for some time now, and there is
increasing pressure from shareholders to shut it down so as to balance the loss being
incurred by the shareholders. But closing the plant would be a blow to the employees as
they will lose their jobs, and the local suppliers will lose a major buyer. There is also
fear that the sudden closing of the plant will have an adverse effect on the community
of Kantron, as the plant is one of the main sources of employment for the locals. Steve
Templeton considered all these factors before making a decision on the fate of the plant.
If Steve Templeton decides to close the plant in Kantron, what important business social
responsibility will Steve Templeton accomplish?
A) moral minimum
B) corporate citizenship
C) maximizing profits
D) stakeholder interest
The obligation of a seller to transfer and deliver goods to the buyer or lessee in
accordance with a sales or lease contract is defined as ________.
A) the right of capture
B) breach
C) anticipatory repudiation
D) tender of delivery
In which of the following cases is a default judgment entered?
A) when a defendant admits all the allegations in the complaint
B) when there is insufficient evidence to resolve the dispute
C) when the court believes that the lawsuit can be settled before/without trial
D) when a defendant does not file a written response to a plaintiff’s complaint
Which of the following is true about accord and satisfaction?
A) It usually arises in settlement of a dispute under the original contract.
B) It brings a new third party into the contract.
C) It discharges the original contract’s duties upon reaching the accord.
D) It cannot be enforced by a party in the contract.
________ are often used to create holding company arrangements.
A) Acquisitions
B) Mergers
C) Share exchanges
D) Takeovers
Which of the following is the difference between Kantian ethics and ethical relativism?
A) Kantian ethics is based on rules that require consistency and reversibility, while
ethical relativism suggests decisions based on individual feelings.
B) Kantian ethics is based on rules that provide the greatest good to the society, while
ethical relativism suggests rules based on an implied social contract.
C) Kantian ethics is based on rules from an outside source, while ethical relativism is
based on rules that require consistency and reversibility.
D) Kantian ethics suggests rules based on an implied social contract, while ethical
relativism is based on rules from an outside source.
The concept of concurrent jurisdiction refers to ________.
A) cases where an appeal is heard by the same court that tried the case
B) cases that can be heard in either a state or a federal court
C) separate legal actions that arise out of a common set of facts and circumstances
D) criminal cases in which the same court determines guilt and also decides the penalty
Steve brings his watch to Knell Watches to be repaired. Knell Watches sells and repairs
watches. Steve entrusts his watch at Knells’ until it is repaired. The watch store repairs
the watch, but then sells it to Kevin, who buys the watch with a fraudulent check that
bounced. Kevin then resells the watch to his friend Jonathan, who is unaware of the
stolen nature of the watch. According to the entrustment rule, what legal recourse does
Steve have to reclaim the watch or collect damages?
A) Steve can sue Kevin for damages.
B) Steve can sue Knell Watches for damages.
C) Steve can reclaim the watch from Jonathan.
D) Steve cannot reclaim the watch but can sue Jonathan for damages.
A major source of contract law is the ________, which developed from early court
decisions that became precedent for later decisions.
A) civil law
B) theRestatement of the Law of Contracts
C) Uniform Commercial Code
D) common law of contracts
A member of a minority race applies for a position for which he is well-qualified.
However, the company rejects him and hires a nonminority applicant for the position.
The minority applicant can sue under ________.
A) Title I of ADA
B) Title II of GINA
C) Title VII of the Civil Rights Act
D) the Lilly Ledbetter Fair Pay Act
________ is a form of co-ownership that includes the right of survivorship.
A) Tenancy in common
B) Joint tenancy
C) Cooperatives
D) Tenancy by the entirety
In a ________, a target corporation is acquired by a friendly party that promises to
leave the target corporation or its management intact.
A) flip-in rights plan
B) flip-over rights plan
C) reverse tender offer
D) white knight merger
Intentionally creating a false fire alarm in a hospital is an example of ________.
A) tort appropriation
B) a breach of Good Samaritan laws
C) a breach of duty of care
D) tort of res ipsa loquitur
Which of the following is a feature of the Anticybersquatting Consumer Protection Act?
A) allowing cybersquatters to use trademarked domain names
B) issuing an injunction against a domain name registrant
C) ordering the trademark owner to turn over the domain name to the domain name
registrant
D) penalizing famous person’s for failing to trademark their names
A ________ is an example of an order to pay.
A) lease
B) certificate of deposit
C) promissory note
D) check
Which of the following is true of the doctrine of contributory negligence?
A) It states that a plaintiff and a defendant must share damages according to the fraction
of fault assigned to each of them.
B) It states that a plaintiff who is partially at fault for his or her own injury cannot
recover against the negligent defendant.
C) It states that a plaintiff must be less than 50 percent responsible for causing his or
her own injuries to recover under contributory negligence.
D) It states that a plaintiff must be more than 50 percent responsible for causing his or
her own injuries to recover under contributory negligence.
A director or corporate officer who does not attend board meetings regularly would be
in violation of ________.
A) self-dealing
B) duty of care
C) the business judgment rule
D) the alter ego doctrine
________ rights are the rights of shareholders who object to a proposed merger to have
their shares valued by the court and receive cash payment of this value from the
corporation.
A) Subscription
B) Liquidation
C) Preemptive
D) Appraisal
The primary level of the national ambient air quality standards (NAAQS) protects
________.
A) flora
B) human beings
C) water bodies
D) climate
Who among the following can be considered a statutory insider?
A) Sharon Muller, an editor who was tipped by her friend to buy shares of KYU Corp.
B) Robert Morgan, a government employee who owns ten percent of all equity security
of KYU Corp.
C) Jim Downey, a graphics engineer who quit KYU Corp. after five years of service.
D) Kate Harris, a legal consultant to KYU Corp.
Which of the following contracts is an example of future goods?
A) an option contract for a lessor’s real estate property
B) a contract to buy growing crops
C) a preordered video game
D) a contract to sell a newborn animal