A ________ is an interest in real property that lasts for a specified person’s lifetime.
A) life estate
B) fee simple absolute
C) life insurance
D) fee simple defeasible
In a shipment contract, when is the title to the goods considered to have passed to the
buyer?
A) when the seller makes the offer to the buyer
B) when the goods are handed over to a common carrier
C) when the seller tenders delivery of the goods at the specified destination
D) when the goods are at the time and place of the shipment
What is the function of the gap-filling rule used under the UCC?
A) It helps open terms be read into a contract.
B) It helps a merchant revoke his offer even after acceptance.
C) It assures the offeree that goods will be held open for a reasonable time.
D) It protects the offeror from additional terms that may be added by the offeree.
A person filing for bankruptcy under Chapter 11 and left in place to operate the
business during the reorganization proceeding is known as the ________.
A) trustee-in-possession
B) debtor-in-possession
C) consignor
D) regent
The ECPA provides that injured parties may sue for civil damages over violations of the
ECPA.
A response by an offeree that contains terms and conditions different from or in
addition to those of the offer is called a(n) ________.
A) rejection
B) counteroffer
C) revocation
D) acceptance
In a(n) ________ franchise, the franchisor manufactures a product and licenses a retail
dealer to sell the product to the public.
A) area
B) distributorship
C) processing plant
D) chain-style
Which of the following is true of the Health Care Reform Act?
A) Employers of big corporations are given subsidies for providing health insurance to
their employees.
B) All employers are mandatorily required to provide health insurance coverage to their
employees.
C) Persons who do not obtain coverage are required to pay a tax penalty to the federal
government.
D) Insurers can establish an annual spending cap for benefit payments.
When John Lacey’s car was stolen, he lodged a complaint with the police. After a while,
the police were able to trace the car to a professional auto thief and return it to John.
When John got his car back, he realized that the thief had installed a new engine,
changed the upholstery, and put in a new stereo player in his car. Which of the
following is true with regard to the new engine, upholstery, and stereo player the thief
installed in John’s car?
A) These improvements have to be returned to the thief.
B) These improvements now rightfully belong to John.
C) The improvements have to be paid for by John if he wants to retain them.
D) The improvements will be confiscated by the police.
Which of the following statements is true about federal appellate court proceedings?
A) The appeals can come only from a U.S. district court.
B) The appeals can only come from state supreme courts.
C) Appeals are usually heard by a three-judge panel rather than by all the judges of the
court.
D) New evidence can be introduced, so long as it relates to the evidence introduced in
the original trial.
Which of the following is a benefit of a living trust?
A) It helps reduce estate taxes more than a will does.
B) It helps avoid probate on the property.
C) It is not subject to property division upon divorce.
D) It does not allow creditors to obtain liens against the property.
Libel and slander constitute ________.
A) negligence
B) defamation of character
C) the tort of appropriation
D) professional malpractice
If the parties to a contract do not agree as to who will bear the risk of losses, the risk of
loss remains with the lessor or supplier ________.
A) if the goods fail to conform to the lease contract
B) until the lessee provides a written confirmation of acceptance
C) if the goods under the contract are in the lessee’s possession
D) after the lessee receives the goods
Which of the following defenses to monopolization can an electricity supplier to a small
town, that can support only one competitor, claim?
A) relevant market
B) willful monopolizing
C) innocent acquisition
D) natural monopoly
The ________ hears cases brought against the United States.
A) U.S. Supreme Court
B) U.S. Tax Court
C) U.S. Court of Federal Claims
D) U.S. District Court
According to ethical relativism, ________.
A) ethics fundamentally rely on duties based around universal rules which one is
morally bound to follow
B) each person is presumed to have entered into a social contract with all others in
society to obey moral rules
C) there are no universal ethical rules to guide a person’s conduct
D) people must always choose an action or follow a rule that provides the greatest good
to society
An arrangement in which the shareholders transfer their stock certificates to a trustee is
known as ________ trust.
A) purpose
B) voting
C) honorary
D) charitable
Which of the following qualifications renders a person as a holder in due course of a
negotiable instrument?
A) if he takes the negotiable instrument for value
B) if he is subject to claims and defenses against the transferor
C) if he is in possession of an instrument issued in his name
D) if he is in possession of an instrument issued in another’s name
Property owned by a spouse prior to marriage, as well as inheritances and gifts received
by a spouse during the marriage are referred to as ________.
A) separate property
B) marital property
C) community property
D) alimony
The crucial factor in determining whether someone is an independent contractor or an
employee is the ________.
A) amount of time the worker has been associated with the principal
B) degree of control the principal has over the worker
C) degree of skill necessary to complete the assigned task
D) job title the principal assigns to the worker
Plant life and vegetation growing on the surface of land are considered to be ________.
A) intangible property
B) real property
C) personal property
D) public property
Which of the following describes the “deferred posting rule”?
A) Banks can fix an afternoon hour of 2:00 or later as a cutoff hour for the purpose of
processing checks and deposits.
B) When a customer deposits a check for collection, the depository bank does not have
to pay the customer until the check clears.
C) Banks have to mail their checking account customers monthly statements of their
accounts and any canceled checks should accompany this statement.
D) A customer is liable for payment to his bank if he fails to report any unauthorized
transactions within 30 days from the receipt of the account statement.
Which of the following gives employees the right to join together to form a union?
A) The Wagner Act
B) Section 3 of the Landrum-Griffin Act
C) Section 7 of the NLRA
D) Section 1 of the Taft-Hartley Act
________ discrimination occurs when an employer discriminates against an entire
protected class.
A) Disparate-treatment
B) Disparate-impact
C) Favored-treatment
D) Unfair-impact
According to the priority of law in the United States, which of the following statements
is true?
A) State regulations take precedence over state statutes.
B) Valid state laws take precedence over any conflicting federal laws.
C) Valid state laws take precedence over local laws.
D) State laws take precedence over the U.S. Constitution within that state.
In the context of trademarks, when does secondary meaning arise in a mark?
A) when a mark that resembles a mark already registered with the federal PTO is used
for a new product or service
B) when descriptive words independent of the product are used to identify the product
itself
C) when ordinary words establish new meaning due to its attachment to a product or
service
D) when a distinctive mark or design is created for a new product or service
Poole Contractors makes a contract with Delta Resources to pay $50,000 for the supply
of 500 truckloads of sand within next week. Delta Resources delivers the sand in two
days after the contract was made. Poole Contractors pays the $50,000 promised in the
contract. This is an instance of ________.
A) substantial performance
B) material breach
C) minor breach
D) strict performance
Which of the following terms refers to the overturn of verdict when jury misconduct is
detected?
A) remittitur
B) judgment notwithstanding the verdict
C) motion for judgment on the pleadings
D) motion for summary judgment
Diane bought an action figure for her son David from Terrence’s Toy Shop. The
packaging did not mention that the toy contained small detachable parts. David
accidentally swallowed and choked on one of the detachable parts and had to be taken
to the hospital. On which of the following product liability charges can Diane sue
Terrence’s Toy Shop for damages?
A) negligence
B) deceit
C) fraud
D) disparagement
The original tenor is the ________.
A) original amount for which the drawer wrote a check
B) original amount in the bank account before the check was honored
C) amount in the bank after the check was honored
D) original amount the drawee intended to be paid
Which of the following statements is true about the articles of limited partnership?
A) The articles must be filed along with the certificate of limited partnership.
B) The articles of limited partnership apply only to the general partners.
C) Without articles of limited partnership, the partnership will be treated as a general
partnership.
D) Without articles of limited partnership, the certificate of limited partnership will
serve as the articles.
Which of the following statements is true of a joint venture?
A) The parties to a joint venture are considered as limited partners.
B) Both parties to a joint venture have equal rights to manage the venture.
C) A joint venture is a partnership that lasts for multiple projects.
D) Parties to a joint venture are exempt from fiduciary duties to each other.
Yvonne finds a carpenter to do some repairs for her house and tells him that if he
finishes the job within Saturday, she would pay him $1,000. This offer creates a(n)
________ contract.
A) executed
B) executory
C) unilateral
D) bilateral
A mark that indicates that a person has met the standards set by an organization and is a
part of that organization is known as a ________.
A) collective membership mark
B) trademark
C) service mark
D) hallmark