In an effort to ensure that the federal government itself does not contribute to the
destruction of the environment, Congress passed the Clear Air Act of 1970.
Under the Robinson-Patman Act a seller of goods may not legally charge a certain
customer a lower price even if the seller can prove that the lower price is a result of
savings due to large-quantity sales to that customer.
In a common carrier bailment, the consignor, or shipper, turns over goods to a common
carrier and a mutual-benefit bailment is created that is terminated only when the
common carrier delivers the goods to the consignee.
When the agency is established, the executive branch usually specifies the purpose of
the agency, the powers of the agency, and the actions the agency may take in carrying
out the intentions of the law.
Words like e-business, e-tailing, e-marketing, and e-contracts found their way into the
English vocabulary, and companies started taking the Internet seriously as an important
new means of doing business.
The law gives a tenant the right to make reasonable modifications to the leased
property.
A salesperson need not have the express or implied permission of the titleholder of the
merchandise to sell it.
Federal law allows advertising of cigarettes and other tobacco products on the
television and radio.
With regard to pledges and subscriptions, some courts have held that the consideration
given by a charitable institution is the promise to use the money for the purpose for
which it was donated.
It is not a requirement for the plaintiff to show that the defendant owed him or her a
duty to either perform an action or not perform an action.
Most firms that have registered trademarks spend considerable amounts of money to
research, design, register, and advertise their trademarks.
The Fourteenth Amendment applies to actions of the federal government.
Use taxes are extremely difficult to collect on small items sold on the Web, and most
states do not make efforts to collect use taxes.
A contract termination should be provided when a contract is fulfilled.
An attorney is not liable to a client if he or she fails to exercise due care in handling a
client’s affairs.
Monopoly power is the term used to describe a situation in which one or more people or
firms control the market in a particular area or for a certain product.
The strict scrutiny test is a standard that measures whether the legislature had a
compelling interest for enacting a particular statute.
Same-sex harassment is not considered illegal.
A testamentary trust is created by an injunction issued by a court.
In general in a bailment, the bailee must return the identical goods.
If a person dies intestate leaving a spouse but no children, the surviving spouse usually
receives the entire estate.
A person who finds property has no legal responsibility to make an effort to return the
property to its rightful owner.
In any state a minor may disaffirm any contract, including contracts for necessaries,
such as food, shelter, clothing, employment, and medical care.
The State of Louisiana had earlier been a Spanish territory, and therefore, has greatly
been influenced by the Spanish civil laws.
Forged checks are illegal, whereas raised checks are not.
Puffing is considered a mere expression of opinion that refers to generalities.
A tender of performance is an offer to perform and is considered evidence of
willingness to fulfill the terms of a contract.
States have enacted statutes that enforce advance directives, documents that express the
wishes of individuals regarding their health care in the event that they become
incapacitated.
The courts at the federal level are district courts, appeals courts, and the U.S. Supreme
Court.
The legal principles governing the relationship of principal and agent and of employer
and employee are entirely different from each other.
It is usually advisable to put a contract in writing if the transaction is important,
complicated, involves a large amount of money, or will extend over a long period of
time.
The general rule of contract law provides that the acceptance of an offer must be the
same as the offer.
Burglary is defined as the taking of property in the possession of another person against
that person’s will and without the threat of bodily harm.
Even after an offer is rejected by the offeree, it can be revived or made into a
counteroffer once the communication of the rejection has been received by the offeror.
It is wise for a person concerned about a check being lost or stolen to use a blank
endorsement.
The “take-it-or-leave-it” contracts, known as contracts of adhesion, are quite common
and are normally unenforceable.
Persons attempting to influence the public officials, but not the public officials, are
exposed and prosecuted every year.
If a buyer refuses to accept delivery of goods, the seller can store the goods for the
buyer and sue to recover the sales price if the goods are not readily resalable to another
customer.
When a person dies without a will, or had a will that failed to meet the requirements of
the law, he or she is said to have died:
A.without heirs.
B.without distribution.
C.insolvent.
D.intestate.
A person or firm that performs services for another is known as a(n):
A.independent contractor.
B.agent.
C.principal.
D.seller.
Which of the following contracts can be assigned?
A.Contracts that include assignment restrictions.
B.Assignments prohibited by law.
C.Contracts that cannot be performed within one year.
D.Contracts that require personal service.
The U.S. Office of Government Ethics is concerned with all of the following topics,
except:
A.conflicting financial interests.
B.misuse of position.
C.financial Disclosure.
D.consumer Protection.
Important federal legislation aimed at protecting the environment includes the Clean Air
Act; the Clean Water Act; and the Comprehensive Environmental Response,
Compensation, and Liability Act, also known as:
A.Environmental Protection Act.
B.Environmental Impact Statement.
C.Primary Standard Statement.
D.Superfund.
A simple contract is not:
A.written.
B.oral.
C.implied.
D.formal
To use any device that is part of an electronic transfer mechanism to steal money,
goods, or services or to alter data, interrupt wire transmissions, or use stolen codes or
passwords, when the purpose of such activity is to obtain something of value
unlawfully, is a federal offense under the:
A.Can-Spam Act.
B.Electronic Communications Privacy Act.
C.Computer Fraud and Abuse Act.
D.Electronic Funds Transfer Act.
A form of personal property, which includes knowledge, ways of doing things, and
expressions of ideas is known as:
A.intellectual property.
B.tangible property.
C.real property.
D.mixed property.
A gambling agreement is one in which performance by one party depends on the
occurrence of a(n):
A.uncertain event.
B.unrequited event.
C.terminated agreement.
D.confirm event.
A party to a contract will not be obligated by an assignment made by the other party
without his or her knowledge until
A.recorded.
B.stamped.
C.notified.
D.rejected.
Third parties to a contract are affected by the contract if they:
A.are witnesses to the contract.
B.sign the contract.
C.arethird-party beneficiaries or incidental beneficiaries.
D.have rights under the contract.
A promise that consists of an indefinite, open-ended statement purporting to be an
agreement is known as a(n):
A.illusory promise.
B.gratuitous promise.
C.preexisting duty.
D.barren promise.
A type of umbrella health insurance policy that covers serious illnesses and lengthy
hospitalizations is ______________.
A. medicare
B. a health maintenance organization.
C. a community based health insurance policy.
D.a major medical health insurance policy.
The National Environmental Policy Act of 1970 (NEPA) requires that any project with
significant federal involvement must have an approved:
A.authorized statement of law.
B.environmental impact statement.
C.clean water protection statement.
D.primary standards statement.
Nearly all restrictive covenants are enforceable; the most important factor is whether
the covenant is:
A.feasible.
B.ratified.
C.assigned.
D.reasonable.
A bank employee who programs the bank’s computer to make deductions from one or
several accounts, and to deposit the funds to an account set up and controlled by the
employee, could be prosecuted for ______________even though he or she had not
touched actual currency.
A.counterfeiting
B.embezzlement
C.robbery
D.fraud
All contracts are agreements, but not all agreements are contracts. The PRIMARY
reason is that:
A.certain agreements cannot be enforced by law.
B.certain agreements cannot be licensed under law.
C.agreements do not fall under any classification of contracts.
D.terms of an agreement usually are different from those of a contract.
A contract that gives the buyer title to goods and the opportunity to return them to the
seller at a later time is a:
A.contract for sale with the right of return.
B.sale on approval of the buyer.
C.contract to sell.
D.trial contract.
In 1947, an international agreement entered into by a multitude of nations was called
the:
A.North American Free Trade Agreement.
B.World Trade Organization.
C.General Agreement on Tariffs and Trade.
D.International Monetary Fund Agreement.
The law gives a tenant the right to make reasonable modifications to the leased property
in order to make it suitable:
A.for sale.
B.for use.
C.to sublet.
D.to gift.
The Securities Act of 1933 covers the sale of securities (stock, bonds, and other forms
of investments) in the:
A.primary market.
B.secondary market.
C.consumer market.
D.labor market.
It is important to recognize the importance of employee and independent contractor
distinctions because in order to apply the applicable law, a court first needs to determine
whether or not the employer-employee relationship :
A.has ceased.
B.has been ratified.
C.has been negated.
D.existed.
A trust is a device or mechanism that permits personal or real property to be held by one
party, the trustee, for the benefit of another, the:
A.administrator.
B.executor.
C.testator.
D.beneficiary.
Randolf, a wealthy connoisseur of arts, was invited to an art exhibition. He became very
interested in one of the showcased art exhibits, and approached the manager to buy the
piece. While he was interested in the painting of the catalogue number 1201, the art
gallery’s manager mistakenly assumed he was interested in another piece. When it was
the time to complete the transaction, the manager realized that he had instead sold and
delivered the wrong painting, and immediately clarified this with Randolf. In this
instance, the contract can be canceled by either party for:
A.mutual mistake.
B.unilateral mistake.
C.negligence.
D.misrepresentation.
The beneficiary named in the insurance policy is legally a(n):
A.substantial beneficiary.
B.material beneficiary.
C.incidental beneficiary.
D.third-party beneficiary.
The UCC provides that, in the absence of negligence or fraud, legal action to remedy a
breach of sales contract must be started within ________from the breach.
A.four years
B.two years
C.five years
D.eight years
Which legal term is used for a person who is appointed as an agent?
A.Special Attorney
B.Attorney at Law
C.Attorney in Fact
D.Apparent Attorney
The following are subject to lawsuits for negligence when they fail to perform
according to the standards expected of them, EXCEPT:
A.directors and officers of corporations.
B.educators.
C.travel agents.
D.consumers.
The ______________ Amendment granted the federal government the power to impose
and collect a tax on individuals’ incomes.
A.Fourth
B.Eighth
C.Fourteenth
D.Sixteenth
A person who finds property has a(n) _________ responsibility to make reasonable
efforts to return the property to its rightful owner.
A.ethical
B.moral
C.religious
D.legal
Even if a person’s intent is good and his or her conduct accidentally causes damage,
then he or she may be prosecuted for a federal crime under the:
A.Can-Spam Act.
B.Electronic Communications Privacy Act.
C.Computer Fraud and Abuse Act.
D.Electronic Funds Transfer Act.