Which of the following is true of a contract with an adjudged insane person?
A) The adjudged insane person is bound by the terms of the contract.
B) Such a contract is void.
C) Only the competent party can enforce the contract.
D) The competent party is legally obligated to uphold the contract.
A large multinational organization discontinues its clothing manufacturing business and
subsequently lowers the prices of all clothing goods manufactured by it. In this
instance, the organization can claim the ________ defense to price discrimination.
A) cost justification
B) changing conditions
C) meeting the competition
D) implied exemptions
A(n) ________ is a document filed by the original plaintiff to answer the defendant’s
cross-complaint.
A) rejoinder
B) answer
C) reply
D) plea
Which of the following is true of a living trust?
A) It comes in to effect after the death of the grantor.
B) It helps reduce the income tax for the grantor.
C) It can be revoked during the grantor’s lifetime.
D) It is considered a public record subject to probate.
Charles executes a note payable to Hilarie for $1,000 for goods she purchased from
him. Hilarie transfers the note to Lucas, who pays $850 for the note. By doing this,
which requirement for acquiring the holder in due course status does Lucas meet?
A) taking for value
B) taking in good faith
C) taking without notice
D) taking where there is no evidence of forgery, alteration, or irregularity
Which of the following is true of priority of claims?
A) If two or more secured parties claim an interest in the same collateral but only one
has perfected his or her security interest, the perfected security interest has priority.
B) Although one of the parties to claim an interest in the collateral has perfected his or
her security interest, all the parties are given fair and equal priority over the collateral.
C) If two or more secured parties claim an interest in the same collateral but neither has
a perfected claim, they are given equal priority irrespective of attachments.
D) If two or more secured parties claim an interest in the same collateral but neither has
a perfected claim, the first to claim has priority.
Which of the following is true about a substituted contract?
A) The prior contract can be enforced against a breaching party of a substituted
contract.
B) A nonbreaching party can sue to enforce its terms against the breaching party.
C) Parties in the contract are not liable for nonperformance.
D) The contract substitutes a third party for one of the original parties.
The ________ is a state law that provides that an accountant’s work papers cannot be
used against a client in a court action.
A) work product immunity
B) accountant-client privilege
C) fair use doctrine
D) Noerr Doctrine
________ property may be retained by a debtor pursuant to federal and state law that
does not become part of the bankruptcy estate.
A) Secured
B) Unsecured
C) Exempt
D) Collateral
The rejection of an offer is effective when it is ________.
A) dispatched by the offeree
B) dispatched by the offeror
C) received by the offeree
D) received by the offeror
A commendation of goods, made by a seller or lessor that does not create an express
warranty is referred to as a(n) ________.
A) statement of opinion
B) implied warranty
C) guarantee
D) express warranty
________ is any trade name, symbol, word, logo, design, or device used to identify and
distinguish goods of a manufacturer or seller or services of a provider from those of
other manufacturers, sellers, or providers.
A) Trade secret
B) Trademark
C) Patent
D) Copyright
In which of the following accommodations is an accommodation party primarily liable?
A) in a guarantee of payment
B) in a guarantee of collection
C) in a guarantee of demand
D) in a guarantee of promise
Which of the following is a legislative power granted to an administrative agency?
A) the power to adopt a rule or regulation
B) the power to adjudicate a dispute
C) the power to issue an interpretive rule
D) the power to issue a substantive rule
Which of the following is a criticism of ethical relativism theory?
A) It treats morality as if it were an impersonal mathematical calculation.
B) It doesn’t set any universal rules to guide a person’s conduct.
C) It doesn’t consider the fact that people would not want to maximize benefits for the
least advantaged persons.
D) It only assigns people in advantageous positions with the responsibility of setting up
rules on morality.
Darren is a certified interior designer with a lucrative client list in the city of Kelsa,
situated in the state of Touslon. His business affords him a substantial amount of
goodwill from his clients. Darren sells his accounting interior designing business to
Glenda. When he sells his business to Glenda, Darren agrees not to open another
interior designing firm in the city of Kelsa for a 25-year period. What kind of agreement
exists between Darren and Glenda in this case?
A) contract in restraint of trade
B) covenant not to compete
C) unconscionable contract
D) quasi-contract
The ________ policy protects real and personal property against loss resulting from
lightning, smoke, water damage, and related perils.
A) health insurance
B) standard fire insurance
C) disability insurance
D) life insurance
A lessor, in his exercise of the right to stop goods in transit, is legally authorized to stop
a shipment of any size if ________.
A) the lessor is insolvent and the lessee is solvent
B) both the lessor and the lessee are solvent
C) the lessor is solvent and the lessee is insolvent
D) both the lessor and the lessee are creditworthy
The ________ is a staff of persons that administers the day-to-day operations of the
UN.
A) Council of Ministers
B) Security Council
C) General Assembly
D) Secretariat
Which of the following terms refers to a theory of social responsibility of business?
A) moral minimum
B) ethical fundamentalism
C) utilitarianism
D) moral relativism
Which of the following is true of warrantless arrests?
A) It is not permitted in the United States criminal law system.
B) It can be made when the police get suspicious of an individual.
C) It can be made when a judge refuses to issue an arrest warrant against a perpetrator.
D) It is permitted when a perpetrator is fleeing from a crime scene.
The ________ is the basic governing documents of a corporation that must be filed with
the secretary of state of the state of incorporation.
A) debt security
B) debenture
C) certificate of authority
D) articles of incorporation