The Equal Pay Act:
a. does not allow variances in wages pursuant to a seniority system.
b. generally requires that members of both sexes be paid equally for equal work.
c. generally requires a system that measures earnings by quantity of work performed.
d. generally requires a system that measures earnings by quality of work performed.
Slander of title and trade libel are collectively known as product __________.
a. divestiture
b. disparagement
c. dilution
d. diversion
A person becomes a(n) __________ at the moment of taking possession of abandoned
personal property.
a. bailor
b. bailee
c. constructive bailee
d. owner
Under which of the following doctrines is it held that a foreign sovereign cannot be
sued unless it engages in illegal commercial conduct?
a. act-of-state
b. sovereign compliance
c. Timberlane
d. sovereign immunity
An unqualified indorser who receives consideration for the indorsement impliedly
warrants that:
a. the warrantor is a person entitled to enforce the instrument.
b. all signatures on the instrument are authentic and authorized.
c. the instrument has not been altered.
d. all of the above.
Today, what is an important element in determining the validity of a contract?
a. the Uniform Contract Code
b. whether the agreement might harm the public welfare
c. whether the contract is wise or foolish
d. whether the contract operates unequally between the parties
Most limited liability company statutes provide that a LLC will dissolve:
a. by the consent of the members.
b. upon the death of a member.
c. upon the expulsion of a member.
d. all of the above.
Abraco International provides servers and related services to many customers.
Accusations of defamation have arisen involving a customer of Abraco. Which of the
following is a correct statement?
a. Abraco is prohibited from revealing information about the identity of its customers to
anyone who asks.
b. Abraco must reveal information about the identity of its customers to anyone who
asks.
c. Abraco must reveal information about the identity of its customers to private entities,
but not to the government.
d. Abraco must reveal information about the identity of its customers in response to law
enforcement’s presentment of a valid warrant.
When a defendant is convicted of a crime, the court may also declare that the
defendant’s rights in any property used or gained from the crime be confiscated. This is
known as __________.
a. forfeiture
b. reversion
c. subversion
d. divestiture
A seller may not sue the buyer for the full purchase price if:
a. the goods are resold at one-third of the contract price.
b. the goods cannot be resold.
c. the goods have been accepted.
d. the goods have been damaged after the risk of loss passed to the buyer.
The relatives of an individual who dies without a valid will may acquire title to the
decedent’s property through:
a. intestate succession.
b. the right of replevin.
c. testate succession.
d. the right of acquisition.
The Americans With Disabilities Act applies to private employers when:
a. they have federal contracts.
b. they have demonstrated past practices of discrimination.
c. they have fifteen (15) or more employees.
d. they have state contracts.
What is the purpose of a financing statement?
a. to meet UCC accounting requirements under Article 9
b. to create a security interest
c. to amend a security agreement
d. to alert third persons that a creditor has a security interest in the collateral described
The obligations of the parties to a sales contract include:
a. the seller’s duty to deliver the goods to the buyer’s place of business.
b. the buyer’s duty to always accept the goods.
c. the seller’s duty to arrange for appropriate transport.
d. the buyer’s duty to pay for the goods.
When the statute of frauds applies and there is no written proof of the contract, the
contract is:
a. void.
b. enforceable if there are two credible witnesses.
c. voidable by a party who has not signed.
d. illegal.
The elements of a contract include all of the following except:
a. an agreement.
b. two or more competent parties.
c. consideration.
d. an illegal purpose.
A transfer of possession, but not title, is called:
a. a bailment.
b. an option to purchase.
c. a gift
d. all of the above.
To revoke acceptance of goods:
a. any defect or nonconformity must be discovered.
b. the goods must be dangerously defective.
c. the nonconformity must substantially impair the value of the goods.
d. action must be taken by the buyer within 60 days of delivery.
The widest range of tort liability arises in the area of:
a. negligence.
b. absolute liability.
c. violation of statute.
d. assumption of risk.
Nonconsensual interception of your e-mail by someone other than your employer is:
a. acceptable.
b. acceptable, but only if the e-mail is “live.”
c. generally illegal.
d. illegal, unless your employer approves of the interception.
In a limited partnership, the most limited partners can lose is:
a. their preferred (not common) stock shares.
b. $1,000,000.
c. their investment in the limited partnership.
d. their investment in the limited partnership, as well as all of their personal assets,
since the term “limited” refers to the limited partners’ managerial obligations, rather
than to their liability exposure.
If a negotiable order instrument is transferred to another party without an endorsement,
the instrument has been:
a. assigned.
b. negotiated.
c. obtained by fraud, and is therefore invalid.
d. obtained by fraud, but may be ratified.
Joan brought her car into Ace Service Station for a tune-up. After tuning up the car, Ace
(the owner of the service station) decided to visit his mother. Ace drove Joan’s car. Ace
was following all safety precautions when a negligent driver without insurance struck
Joan’s car. Joan sued Ace for the damages to her car. The probable result is:
a. Ace will win, since he was taking reasonable care of the bailed goods.
b. Ace will win, since the bailee has the right to use the bailed goods.
c. Joan will win, since the harm was sustained during the bailee’s unauthorized use of
the property.
d. Joan will win, since bailees are absolutely liable for bailed goods in their possession
and control.
The taking of an image off someone’s web site and using it for commercial advantage is
called:
a. appropriation.
b. defamation.
c. gleaning.
d. subordination.
A summarized report of title to property is called:
a. title protection insurance.
b. title assessment insurance.
c. an abstract of title.
d. an instrument of title.
When goods are delivered to a common carrier for immediate shipment and while they
are in transit, who is normally liable for any loss or damage to the goods?
a. the shipper
b. the consignee
c. the carrier
d. the individual designated as responsible in the bill of lading
A corporate officer, while still employed by his or her firm, may be in breach of the
officer’s fiduciary duty of __________ by recruiting key management employees to join
a competing company.
a. obedience
b. loyalty
c. conflict of interest
d. confidentiality
In an auction __________, the auctioneer takes bids as agent for the seller with the
understanding that no contract is formed until the seller accepts the transaction.
a. without reserve
b. with reserve
c. without preserve
d. with preserve
In a lease agreement, the person who owns the real property and permits the occupation
of the premises is known as the __________, and the person who occupies the property
is known as the __________.
a. lessor; lessee
b. lessee; lessor
c. grantor; grantee
d. grantee; grantor
Partners hold title to firm property by:
a. tenancy in partnership.
b. tenancy in common.
c. joint tenancy.
d. none of the above.
When particular goods have been selected by either the buyer or the seller, or both, as
being the goods called for by the sales contract, the goods are said to be
a. identified.
b. actualized.
c. realized.
d. materialized.
Who may bring an action for relief under consumer protection legislation?
a. the Federal Trade Commission
b. a state attorney general
c. the consumer
d. all of the above
Truth in advertising legislation is fundamentally designed to:
a. give the consumer an accurate description of the product.
b. punish sellers who knowingly make false statements about the product offered for
sale.
c. punish sellers who state a false opinion about the product.
d. give the consumer information about other similar products that are available.
It is the duty of an agent to act with the care that:
a. the principal would exercise under the circumstances.
b. a reasonable principal would exercise under the circumstances.
c. a reasonable juror would exercise under the circumstances.
d. a reasonable person would exercise under the circumstances.
What is not a correct statement concerning promoters?
a. Promoters are generally active before the corporation is formed.
b. Two (2) or more promoters are required to form a corporation.
c. Promoters are fiduciaries with respect to the corporation and its shareholders.
d. Promoters are liable for any torts that they commit while promoting the corporation.
A principal may ratify an unauthorized contract of an agent.
A corporation may be an incorporator of another corporation.
An express warranty can be made orally or in writing.
The Fourth Amendment protection applies to homes, but not to information stored on
computers.
Revised UCC Article 3 refers to drawers, indorsers, and accommodation parties as
‘secondary obligors.”
A registration certificate for a partnership’s fictitious name contained the names of
Barry, Boyd, and Swartz. Cruise extended credit to the firm in reliance in part on the
certificate that named Swartz as a partner. Swartz, in fact, had no knowledge of the
certificate and never had agreed to be a partner. Because of Cruise’s reliance on the
certificate and the statement that Swartz was a partner, Swartz has a partner’s liability
insofar as Cruise is concerned.
The NLRA does not prohibit discrimination against employees for engaging in union
activities, provided that employees are warned of the possible consequences of their
union activities.
The Semiconductor Chip Protection Act provides the owner of a mask work fixed in
semiconductor chip products the exclusive right for twenty (20) years to reproduce and
distribute the products in the United States and to import them into the United States.
Within each state in the United States, only one constitution is in force.
Whether there has been a waiver is a question of fact.
A motion for a directed verdict occurs immediately after the last pleading is filed.
A partnership involves partners’ contributions of capital, services, or a combination of
these.
Under no-fault insurance, an insurer is obligated to pay an injured person without
regard to whose fault caused the harm.
The Freezo Refrigeration Company entered into agreements with retail store owners.
The agreements provided that the store owners would not sell Freezo’s refrigerators
below Freezo’s suggested minimum retail price and that, in return, Freezo would not
sell its refrigerators at retail in the store owners’ respective territories. Are these
agreements valid?
When a court decides a new question or problem, the decision is called a precedent.