If an insured person tells her current husband that she is going to name him as
beneficiary of her life insurance in place of her former husband and dies a year later
without having taken any further steps with respect to the change of the policy
beneficiary, the insurance company must pay the proceeds of the policy to:
a. the former husband.
b. the current husband.
c. the children by the first marriage.
d. the children by the second marriage.
When an employee alleges religious discrimination because of an employee-observed
religious practice:
a. the employer must bypass seniority rules to accommodate the employee.
b. the employee must honor all bona fide religious practices.
c. the employer must make reasonable efforts to accommodate religious beliefs.
d. the employer must call in a substitute worker at additional cost.
Tying:
a. is a violation of the Sherman Act.
b. occurs when sellers require buyers to purchase an unwanted product to get a wanted
one.
c. both of the above.
d. none of the above.
Bribery is defined as:
a. giving money, property, or any benefit to a person to influence that person’s
judgment.
b. using one’s position as a public official to make an illegal demand.
c. using one’s position as a nonpublic official to make an illegal demand.
d. exerting improper political influence.
NAFTA seeks to eliminate tariffs among which countries?
a. all members of the United Nations
b. United States, Canada, and Mexico
c. United States and Japan
d. members of the common market
The power to tax income:
a. is possessed only by the federal government.
b. is possessed only by state governments.
c. may be exercised concurrently by both state and federal governments.
d. is controlled exactly like the power to wage war.
If a contract is ambiguous regarding whether the agent has signed in a representative or
an individual capacity:
a. there is a presumption that the agent signed in a representative capacity.
b. there is a presumption that the agent signed in an individual capacity.
c. the agent and the principal will both be liable on the contract.
d. parol evidence is admissible to establish the character in which the agent was acting.
Title passes to the buyer at delivery:
a. in all situations
b. when goods are shipped FOB place of destination
c. when goods are shipped FOB shipment
d. never
Judicial Triage:
a. is a court management tool.
b. results in some cases being expedited.
c. results in some cases being postponed.
d. all of the above.
A writing that satisfies the requirement of a writing under the statute of frauds could be
evidenced by:
a. a note.
b. a memorandum.
c. a contract.
d. all of the above.
Which of the following is not a correct statement concerning wills?
a. Attestation is the act of witnessing the execution of a will.
b. Most states require two (2) witnesses to the execution of the will.
c. A will must be dated.
d. Self-proved wills are wills that carry a presumption that they are valid if executed
according to the requirements set forth by statute.
When money is loaned at a greater rate of interest than is allowed by law, __________
is committed.
a. Usury
b. credit misfeasance
c. petty theft
d. credit malfeasance
Unless statutory requirements are met, a will is invalid and the testator:
a. is considered to have died testate.
b. is considered to have died intestate.
c. is subject to federal law.
d. has provided guidelines of distribution.
A landlord is most likely liable to a tenant who is injured by:
a. a defective condition of the leased premises that is under the control of the tenant.
b. an obvious condition of the leased premises known to the tenant at the time the lease
was made.
c. an unforeseeable criminal act of a third person.
d. the criminal act of a third person, when such conduct was reasonably foreseeable.
A transferor may be able to set aside a negotiation obtained by fraud or duress unless:
a. a minor is involved.
b. the negotiation was part of an illegal transaction.
c. the negotiation was beyond the powers of the corporation.
d. the instrument has been acquired in the meantime by a holder in due course who did
not know of the misconduct.
A guarantee that the grantor owns the estate conveyed is called a covenant:
a. of right to convey.
b. against encumbrances.
c. of quiet enjoyment.
d. of seisin.
A major disadvantage of the sole proprietorship is:
a. no organizational fees.
b. the sole proprietor obtains all of the profits.
c. the sole proprietor is personally liable for the debts of the sole proprietorship.
d. the sole proprietor is free to make all business decisions concerning operation of the
sole proprietorship.
A business formula, information compilation, or device that provides an advantage over
competitors that do not have it is known as a:
a. competitive advantage.
b. strategic advantage.
c. trade secret.
d. restraint of trade.
Which is not a correct statement about deeds?
a. The grantor must sign the deed.
b. A deed must be recorded to effectively pass title.
c. The fact that a deed is recorded provides notice to the world about who holds title.
d. A deed must be delivered to be effective.
Barry and Eldridge owned Blueacre as tenants in common. Eldridge died. Blueacre is
owned:
a. solely by Barry because of the survivorship feature.
b. jointly by Barry and the state because of escheat.
c. by Barry and Eldridge’s heirs.
d. solely by Eldridge’s heirs.
When a partnership is dissolved by the act of a partner, notice:
a. is not required.
b. must be given to the other partners only.
c. must be given to third persons only.
d. must be given to both other partners and third persons.
A seniority system is unlawful if:
a. workers with longer years of service are laid off last.
b. a union did not agree to the policy.
c. it results from an intention to discriminate.
d. workers with longer years of service are predominantly from one race.
The relationship between a corporation and its agents is governed by the:
a. statute under which the corporation was formed.
b. corporate charter.
c. corporate bylaws.
d. same rules as are applicable when the principal is a natural person.
A durable power of attorney may be terminated by:
a. revocation by a competent principal.
b. the death of the principal.
c. revocation by a competent principal or by the death of the principal.
d. none of the above, since a “durable” power of attorney is designed by law to be
irrevocable under all circumstances.
If no time period for performance is specified in a contract:
a. the contract is unenforceable.
b. time shall be of the essence.
c. a reasonable time for performance will be implied.
d. the time for performance will be ignored by the courts.
After a corporate charter has been forfeited, the owners and officers of the dissolved
corporation are __________ shielded from personal liability by using the corporate
name when making contracts.
a. still
b. conditionally
c. not
d. retroactively
Roberts leased a duplex from Hughes. Later, without Hughes’ knowledge, Roberts
sublet half of the duplex to Carrera. Carrera did not take proper care of the premises and
her part of the duplex was substantially damaged as a result of her negligent use and
abuse. Upon discovering the situation, Hughes notified Roberts that he was holding him
responsible for any and all damages to Carrera’s portion of the duplex, and that Roberts
was to bear the costs of returning the premises to the original state of repair. Roberts
replied that he had sublet to Carrera in good faith, had no further dealings with Carrera
after the sublet agreement, had no knowledge of negligence, and could not be held
liable for damages caused by another. Can Roberts be held liable?
Trespass to personal property requires:
a. the personal property to be connected to real property.
b. destroying the personal property.
c. the invasion of personal property regardless of whether the owner grants permission.
d. the invasion of personal property without the permission of the owner.
A right of __________ refusal is the right of a party to meet the terms of a proposed
contract before it is executed, such as a real estate purchase agreement.
a. concomitant
b. conditional
c. formal
d. first
Computer crimes include:
a. theft of hardware.
b. theft of software.
c. intentional damage to information stored on a computer.
d. all of the above.
If the insured lives to the end of the policy period of an endowment insurance policy,
the policy pays:
a. nothing.
b. one-half of the face amount of the policy.
c. the face amount of the policy.
d. double the face amount of the policy.
Which of the following is NOT a nontariff barrier?
a. government subsidies
b. import quotas
c. complex custom procedures
d. an import or export duty or tax placed on goods as they move in or out of a country
Valid restrictive covenants will bind future owners of the land if:
a. they are published in the Federal Register.
b. there is a notation in the deed referencing the restrictive covenants.
c. they are published in a newspaper of general circulation.
d. they are filed with the attorney general of the state in which the land is located.
Once goods in a contract have been identified the buyer holds an insurable interest in
them.
A computer crime generally can only be committed by a person having some
knowledge of the operation of a computer.
A contract of insurance is to be interpreted as it would be understood by a person with
technical knowledge of the law or of insurance.
Rights guaranteed in the United States Constitution are accompanied by duties.
Time honored rules of the community are called the common law.
Personal property is lost when an owner does not know where it is located but intends
to retain title or ownership to it.
A check that is postdated ceases to be order paper.
In older cases, the employer-employee relationship was referred to as the
master-servant relationship.
Claim in a changing or shifting stock of the buyer’s goods is known as a floating lien.
In a non-shipment contract risk of loss passes to the buyer when the merchant seller
makes the goods available to said buyer.
An accountant may be liable for malpractice if the accountant fails to detect signs that
an employee of the client is embezzling.
State governments may regulate business in all of its aspects, even if such regulation
imposes a burden on interstate commerce.
The powers given by the federal government to the states are described as delegated
powers.
Contractual capacity can exist even though a party does not understand every provision
of the contract.
To correctly transfer shares of stock, a delivery from the owner of the shares directly to
the transferee is required.
To be lawful, affirmative action must be time-limited .
The Federal Trade Commission suspects Billy Williams of unlawful trade activities and
has obtained evidence, claimed to be proof of unlawful activity, by way of aerial
photography. The FTC is also currently seeking the submission of various documents,
within Williams’ place of business, for additional evidence. Williams refuses to submit
to the demands to produce the documents and claims that this demand and the aerial
photos are direct violations of his constitutional rights. Williams also demands a jury
trial to clear him of charges levied. Comment on Williams’ claims.
Until a transfer is recorded on its books, a corporation is entitled to treat the person
whose name is on its books as the owner of its stock.
When a party waives compliance with one provision of a contract, the other party may
thereafter ignore other provisions of that contract.
A consumer who notifies the issuer of an EFT card within two (2) days after learning of
a loss or theft of the card can be held to a maximum liability of $500 for unauthorized
use of the card; failure to notify within this time will increase the consumer’s liability
for losses to a maximum of $5,000.