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Once the buyer has accepted goods, whether the goods are conforming or
nonconforming, that acceptance may not be revoked.
All negotiable instruments must be payable to order or to bearer.
The Uniform Commercial Code is a source of contract law that has been adopted by
only a minority of the states.
The World Bank is a United Nations agency that comprises eighteen (18.) member
nations.
When a customer opens a checking account at a bank, the customer impliedly agrees to
keep sufficient funds in the account to pay any checks written against it.
Most states require divorcing couples to pursue binding arbitration before allowing the
cases may to proceed to trial.
Many states have adopted rules that specifically regulate e-commerce transactions.
A sole proprietorship is a separate legal entity, so it pays taxes at the business level.
In a no-arrival, no-sale contract the seller has an obligation to replace goods which do
not arrive at the appoint destination.
A gift made during a person's lifetime that is a revocable future transfer of ownership is
a gift inter vivos.
The federal government can bring criminal charges against a person who commits
copyright infringement.
Foster care is usually a permanent arrangement.
The Equal Employment Opportunity Commission is empowered to conduct
investigations, interpret the antidiscrimination statutes, encourage conciliation between
employees and employers, and bring suits to enforce the law.
More than 90% of cases are settled prior to going to trial.
A couple wishing to marry must meet the legal requirements established by the federal
government.
Private corporations are formed by government entities to meet a specific governmental
or political purpose.
The damages recoverable in a strict liability action are governed by federal law.
Most states provide that contracts entered into by certain intoxicated persons are void.
The crime of commercial bribery is also referred to as corporate extortion.
Unsecured credit does not require any collateral to protect the payment of the debt.
Generally, time of performance cannot be implied.
Merchant protection statutes are also known as the 'shopkeeper's discretion."
During cross-examination, the defendant's attorney can ask questions only about the
subjects that were brought up during direct examination.
Any act that can be taken at a shareholders' meeting can be taken without a meeting if
all the corporate shareholders sign a written consent approving the action.
Most states use the subjective cognitive comprehension test to determine legal insanity.
Replevin actions are not available for goods identified in a lease contract.
Under common law's mirror image rule, the offeree's acceptance must be on the same
terms as the offer.
Examples of negotiable instruments include checks and promissory notes.
Contracts for the provision of personal services are generally not assignable without the
permission of the obligor.
A purchase money security interest takes priority over perfected security interests in
after-acquired property, even if the perfected interest predates the purchase money
security interest.
Rescission is not available for a contract involving undue influence.
Live testimony taken under oath before the trial is a discovery device known as a(n):
A) deposition.
B) interrogatory.
C) arbitration.
D) intervention.
E) production of evidence.
John and Alicia are neighbors in Cleveland. Alicia has been transferred in her job and is
moving to Portland. She and John enter into a contract for John to drive her car to
Portland for $200. John believed that she meant Portland, Maine when in fact she
intended that the car be driven to Portland, Oregon. There was no reason for John to
know which city she wanted the car shipped to. Which is true in this situation?
A) John can rescind this contract due to mutual mistake, but Alicia cannot.
B) This is a mutual mistake that would allow either party to rescind the contract.
C) Because each city is correctly called Portland, the only mistake relates to the value
of delivering the car to the proper city, and neither party can rescind.
D) John can rescind this contract due to unilateral mistake, but only if Alicia knew that
John had the wrong Portland in mind.
E) John can rescind the contract due to mutual mistake, but only if he can establish that
Alicia intentionally misled him.
A written agreement between partners is called:
A) a general partnership agreement.
B) articles of general partnership.
C) articles of partnership.
D) a general partnership compendium.
E) a general partnership agreement, articles of general partnership, or articles of
partnership.
Regarding the name of a corporation:
A) it may be the same as a federally-trademarked name, so long as the two
corporations operate exclusively in different states.
B) it can be similar to another corporation's name, so long as the existing corporation
has not trademarked the name.
C) it must contain a word or abbreviation that indicates corporate status.
D) it may contain a word or phrase that implicitly reserves the right of the corporate
owner to operate the business as a sole proprietorship or partnership.
E) The Revised Model Business Corporation Act removed all general restrictions
concerning corporate names; therefore, such names are not restricted, except that they
cannot constitute a "fraud on the public."
Which type of indorsement indicates that a specific person should be paid from the
instrument?
A) blank
B) restrictive
C) special
D) indicative
E) qualified
Once created, a negotiable instrument can be transferred to subsequent parties by:
A) mediation.
B) arbitration.
C) auction.
D) negotiation.
E) stipulation.
The Worker Adjustment and Retraining Notification Act requires notification to be
given:
A) six months in advance for any plant closing.
B) sixty days in advance for any plant closing.
C) sixty days in advance for plant closings resulting in the loss of fifty or more jobs, but
not for temporary layoffs.
D) sixty days in advance for plant closings resulting in the loss of fifty or more jobs,
and for layoffs of fifty employees or thirty-three percent of workers at a site for thirty
days or more.
E) sixty days in advance for plant closings resulting in the loss of fifty or more jobs,
and thirty days in advance for layoffs affecting more than thirty-three workers at the
site.
A contract is ________ if the offeror's promise is answered with the offeree's promise of
acceptance.
A) unilateral
B) bilateral
C) executory
D) executed
E) formal
In a product liability case, the tort theory of negligence requires the defendant to be
________ for causing the plaintiff's injuries.
A) strictly liable
B) unconditionally liable
C) at fault
D) wholly responsible
E) partially responsible
Under the Supremacy Clause of the U.S. Constitution, when Congress chooses to
regulate in an area:
A) it will automatically have exclusive jurisdiction to regulate in that area.
B) states will always remain able to freely regulate in that area.
C) states will always be able to regulate in that area, so long as the state law does not
directly and substantially conflict with the federal law.
D) whether the state has any authority to regulate in the area will depend on whether
Congress provides that the federal government has exclusive authority to regulate in
that area.
E) the state will be able to regulate in that area only with prior permission of the U.S.
Supreme Court.
An obligor who transfers his or her duty is called:
A) an assignor.
B) an assignee.
C) a delegator.
D) a delegatee.
E) both an assignor and a delegator.
In the case of In the Matter of the Marriage of Joyner, the court had to determine when
a divorce is actually finalized, in a situation where a husband purchased a winning
lottery ticket after the final hearing, but before the divorce decree was issued by the
court. The court said:
A) a divorce is not finalized until the decree is signed by the judge.
B) a divorce is not finalized until the decree is signed by the judge and recorded in the
appropriate public office.
C) a judgment declaring the divorce final may be made by oral announcement in open
court, even if the decree has not yet been signed.
D) a judgment declaring the divorce final may be made by oral announcement if made
in open court, and if the decree is immediately signed during the same hearing.
E) because a no-fault divorce was involved, the divorce became final upon the filing of
the petition, and statements made by the court had no bearing on the timing of the
finality of the proceedings.
Which of the following isnot part of the "fresh start" in bankruptcy?
A) protecting debtors from creditors' abusive actions in collecting past debts
B) preventing certain creditors from gaining an unfair advantage over other creditors in
the collection process
C) protecting creditors from debtor actions that would diminish the value of the
bankruptcy estate
D) preserving existing business relations
E) limiting the debtor's acquisition of new debt following the bankruptcy discharge
Mary owns her own business and has just attended a cash flow management seminar
where it was suggested the businesses should delay paying their suppliers as long as
absolutely possible even if doing so violates the stated payment terms. Mary decides to
continue paying her suppliers on time in accordance with their payment terms because
Mary would like her customers to pay her on time. Mary has reached her decision in
accordance with:
A) ethical relativism.
B) utilitarianism.
C) ethical fundamentalism.
D) Kantian ethics.
E) social contract theory.
Which of the following is not a recognized theory of the social responsibility of
business?
A) maximize profits
B) moral minimum
C) stakeholder interest
D) corporate citizenship
E) moral maximum
In real estate law, the distinguishing feature of a profit is that it represents the right:
A) to lease the property and keep the rent proceeds.
B) to remove something from the property of another.
C) to use the land of another.
D) of an owner to exclude others from the land.
E) to profit from renting the land to others.
A customer goes into a restaurant in Jackson, Wyoming. He sits down at a table and
finds a Wyoming state road map and four unused Jackson Hole lift tickets attached to
the map. These are sitting on the table where a previous customer has just sat. This is
most likely:
A) abandoned property, because it was left by the previous customer.
B) lost property, entitling the finder to keep it.
C) an uncompleted gift to the waitperson.
D) mislaid property that the finder should turn over to the restaurant.
E) the property of the Jackson Hole Ski area.
Regions that do not meet air quality standards are designated ________ areas.
A) nonattainment
B) noncompliance
C) nonconformity
D) offensive
E) noncooperation
When an animal owned by someone has offspring, the party who owns the mother has
acquired the offspring by:
A) gift.
B) production.
C) accession.
D) inheritance.
E) confusion.
A limited partnership is required to have at least:
A) two limited partners.
B) one general partner, and two limited partners.
C) one general partner, and one limited partner.
D) two general partners.
E) two partners, who can be any mix of limited and general partners.
On January 10, 2011, Jonathan writes a check, payable to Josh in the amount of
$500.00, drawn on Jonathan's account with MBNA bank. Josh, on the back of the
check, writes, "Pay to the order of Brandi" and leaves the check on his night stand.
Brandi comes to visit while Josh is not home (she has a key), sees the check, and takes
it believing that it was indorsed to her a repayment of a debt. Brandi then signs her
name on the back of the check and hands it to Lori as a birthday present.
A) The check has been negotiated to Brandi because it was indorsed to her.
B) The check has been negotiated to Brandi because it was indorsed to her and she truly
believed that it was meant for her because of the debt owed.
C) The indorsement Josh put on the check was a blank indorsement.
D) Brandi has no rights to the check because it was not delivered to her.
E) The indorsement is not valid because Jonathan intended the check to go to Josh and
never authorized Josh to transfer the check to anyone else.
Which of the following is generally true about federal appellate court proceedings?
A) The appeals can come only from a U.S. district court.
B) New evidence can be introduced, so long as it relates to the evidence introduced in
the original trial.
C) Appeals are usually heard by a three-judge panel rather than by all the judges of the
court.
D) To avoid being improperly influenced by the lower court decision, the appellate
court must make its own decision on the case without knowing the outcome in the
original trial.
E) The appeals can only come from state supreme courts.
A "right-to-work" law generally provides that:
A) employers must hire the first fully-qualified applicant for a position.
B) employees cannot be forced to join a union or to pay union dues.
C) union employees cannot be laid off.
D) union and non-union employees cannot be laid off.
E) employers cannot hire replacement workers in the event of a strike.
Generally, which of the following is true about the liability of a principal for the tort of
an agent, and the liability of an agent for the tort of a principal?
A) A principal is not liable for an agent's tort, and an agent is not liable for a principal's
tort.
B) A principal has greater liability for an agent's tort than an agent has for a principal's
tort.
C) An agent has greater liability for a principal's tort than a principal has for an agent's
tort.
D) A principal and an agent have approximately the same degree of liability for each
other's tort.
E) A principal is never liable for an agent's tort.
Which of the following is false regarding a "reversion" and a "remainder?"
A) A reversion is a right of possession that returns to the grantor after expiration of a
limited or contingent estate.
B) A reversion arises automatically by law.
C) If a right of possession returns to a third party upon the expiration of a limited or
contingent estate, it is called a remainder.
D) Both a reversion and a remainder are a form of future interest.
E) A reversion may apply to real property, while a remainder may not.
What best describes the one-year public use doctrine relative to patents?
A) Patent protection is lost if the patented item becomes used by the public after the
patent is granted.
B) Patents will not be granted for items that have been used by the public for more than
one year before the patent application was filed.
C) Patent protection will be lost if a member of the public successfully discovers how to
build the patented item through reverse engineering.
D) Once a patent is granted, it will be lost if the patented item is not made available to
the public within one year after the patent is granted.
E) The public is allowed to engage in limited use of a patented invention without being
held liable for damages.
In a consignment situation, when are goods subject to the claims of the buyer's
creditors?
A) when the seller files a financing statement
B) when the seller fails to file a financing statement
C) whenever the goods are in the buyer's place of business
D) only if there is a written agreement that the consigned goods are subject to the
claims of the buyer's creditors
E) only if the creditor seeks the consigned goods within 30 days of the time they are
placed in the buyer's place of business
The appellant is often required to post a ________ on appeal.
A) party-in-interest decree
B) certification letter
C) bond
D) right-to-sue letter
E) executory decree
When there is an accord and satisfaction, when are the duties under the original contract
discharged?
A) when the original contract is breached
B) when the accord is formed
C) when the duties of the original contract are fully performed by one of the parties
D) when the duties under the accord are fully performed by both parties
E) when the duties under both the original contract and the accord are fully performed
by both parties
If a tenant transfers only some of his rights under a lease to another party, it is called
a(n):
A) assignment.
B) sublease.
C) restrictive covenant.
D) lease renewal.
E) illegal action.
The United States is not a signatory to the Central America Free Trade Agreement
(CAFTA).
