A decree of specific performance orders the lessor to perform the contract.
The right to capture allows a buyer to stop goods while in transit.
Shareholders of a corporation generally have limited liability.
Antideficiency statutes are used to prohibit deficiency judgments on second mortgages.
An H-1B visa is a visa that allows U.S. employers to employ in the United States
foreign nationals who possess extraordinary ability for certain types of employment.
An individual cannot renounce an inheritance if the mortgages against that property
exceed the value of the property.
A reaffirmation agreement must be entered into after discharge is granted.
The Uniform Franchise Offering Circular (UFOC) is used in conjunction with state
laws regarding franchises.
The recovery for breach of contract is not limited to contract damages if a
contract-related tort can be proved.
The E-SIGN Act recognizes electronic contracts as meeting the writing requirement of
the Statute of Frauds for most contracts.
Small corporations generally opt to incorporate in the state with the laws that are most
favorable to the corporation’s internal operations.
An insurance broker is an independent contractor who represents a number of insurance
companies.
Ordinances refer to the laws enacted by local government bodies.
Intentional misrepresentation is commonly referred to as fraudulent misrepresentation,
or fraud.
A shipment contract requires the buyer to make all the necessary shipping
arrangements.
Money laundering refers to the process of legitimizing money obtained through illegal
activities.
Where an indorsement on an instrument has been forged or is unauthorized, the loss
falls on the party who first takes the forged instrument after the forgery.
Under the common law, an innkeeper owes no liability regarding loss caused to the
personal property of transient guests.
Making a secret profit on corporate transactions is considered a breach of duty of
loyalty.
A cashier’s check is a single-party check.
The failure of an LLC to observe the usual company formalities acts as grounds for
imposing personal liability on the members of the LLC.
Offers for both bilateral and unilateral contracts involve a promise by the offeror.
Antitrust laws are enacted to limit anticompetitive behavior.
Ordinary negligence by accountants violates Section 10(b) and Rule 10b-5 of the
Securities Exchange Act of 1934.
If a builder breaches a construction contract before construction, he is not liable for
nonperformance under the contract.
An appellate court will reverse a lower court decision if it finds an error of law in the
record.
State patent law is exclusive; there are no federal patent laws.
A lawsuit a shareholder brings against an offending party on behalf of a corporation
when the corporation fails to bring the lawsuit is known as a derivative action.
If a patent is denied, the invention is assigned a patent number.
In case of a violation of the Age Discrimination in Employment Act, an employer must
pay for damages but is not liable to increase the wages of the discriminated-against
employee.
Offensive speech is considered to be the same as obscene speech.
Under the E-SIGN Act, electronically signed contracts can be denied effect because
they are delivered electronically.
A drawee that refuses to pay a draft or a check is liable to the payee or holder.
A separate piece of paper in which an indorsement is written when there is no room in
an instrument is known as a(n) ________.
A) bill of exchange
B) allonge
C) supplement
D) appendage
A ________ is a legal right that gives the author of qualifying subject matter, and who
meets other requirements established by law, the exclusive right to publish, produce,
sell, license, and distribute the work.
A) trade secret
B) trademark
C) copyright
D) service mark
The statute of limitations establishes the period within which ________.
A) a plaintiff must bring a lawsuit against a defendant
B) a defendant must file a written answer against a plaintiff’s complaint
C) a defendant can file a cross-complaint against the plaintiff
D) a motion for judgment on the pleadings can be made by either party
Which of the following is true of discharge of performance by agreement?
A) A partially executed contract cannot be rescinded.
B) Mutual rescission requires parties to enter into a second agreement that expressly
terminates the first one.
C) A party is allowed to rescind a contract without the consent of the other party.
D) Unilateral rescission is not regarded as breach of contract.
Zumania is a country where the government has installed a one-party rule. Most of the
properties in the country are nationalized and the government has enforced a set of laws
to be followed by the citizens of Zumania. Zumania’s politics and law adheres to the
________ School of jurisprudential thought.
A) Natural Law
B) Command
C) Historical
D) Sociological
Which of the following is true of the fair use doctrine?
A) It advocates the idea that a copyright holder’s right in a work is absolute by law.
B) It forbids the use of copyrighted material in a satire or parody.
C) It helps copyright holders recover for copyright infringement where fair use is
found.
D) It permits lawyers to use copyrighted material in a court proceeding.
A person or corporation that is empowered to accept service of process on behalf of a
corporation is referred to as a(n) ________.
A) promoter
B) shareholder
C) registered agent
D) incorporator
When a party commits an anticipatory breach, the nonbreaching party ________.
A) must wait until the performance was due before suing
B) is immediately discharged from his or her own duties
C) cannot seek damages because he or she received advance notice of the breach
D) loses his or her right to sue after the due-date for performance is reached
Ashley owns a piece of vacant real estate through which a small river runs. Ashley hires
Warren, a licensed real estate broker, to list the property for sale and help sell the
property. While inquiring in the neighborhood, Ashley’s neighbor Lenny tells Warren
that a chemical plant upstream has polluted his property and that Warren should have
environmental engineers test the soil on Ashley’s property as well. Warren does not tell
Ashley about Lenny’s suggestion. Warren manages to find a buyer for Ashley’s property
in Martha. It is later discovered that the property Martha bought from Ashley is also
polluted. Which of the following agent duties has Warren failed to perform?
A) duty to indemnify
B) duty to account
C) duty to reimburse
D) duty to notify
Which of the following is a right to which every general partner is entitled?
A) right to remuneration
B) right to free and open speech
C) right to return of capital
D) right to legal action
Minewell Publishers contracts with Inkhome Paper to purchase large quantities of bond
paper. Minewell accepts the shipment supplied by Inkhome but fails to pay for it when
the payment is due. Which of the following rights can be exercised by Inkhome Paper
to reclaim their payment?
A) right to recover the purchase price
B) right to replevy goods
C) right to obtain specific performance
D) right to cure
Antarez Jewelers contracts RTR Mining to purchase rare polished diamonds. RTR fails
to deliver the goods on the scheduled date. Antarez attempts to procure the diamonds
from other sources but is unsuccessful in its pursuit due to the scarcity of polished
diamonds. Which of the following rights can Antarez exercise in order to recover its
goods from RTR?
A) right to stop delivery of goods in transit
B) right to withhold delivery
C) right to replevy goods
D) right to cure
Which of the following is true of the registration of copyrights?
A) Registered works are not covered under the Copyright Term Extension Act of 1998.
B) Registration permits a holder to obtain statutory damages for copyright
infringement.
C) Only published works can be registered at the U.S. Copyright Office.
D) All registered copyright materials must mandatorily place the word “copyright” on
their copyrighted works.
Which of the following would be considered to be a part of intellectual property?
A) buildings
B) vehicles
C) mortgage contracts
D) patents
Which of the following is true of a common law marriage?
A) Both parties enjoy relaxations in the eligibility criteria in terms of minimum age and
emancipation when they marry.
B) All the rights and duties of a normal licensed marriage apply to a common law
marriage.
C) A court decree of divorce is not required to end a common law marriage as there is
no marriage license or ceremony.
D) The parties involved need not provide proof of cohabitation to create a common law
marriage.
If the federal government has chosen not to regulate an area of interstate commerce that
it has the power to regulate under its Commerce Clause powers, this area of commerce
is subject to the ________.
A) Free Exercise Clause
B) Dormant Commerce Clause
C) Due Process Clause
D) Privileges and Immunities Clause
An indorsement that contains the signature of an indorser and specifies a person to
whom the indorser intends the instrument to be payable is known as a(n) ________.
A) qualified indorsement
B) unqualified indorsement
C) blank indorsement
D) special indorsement
Which of the following is an informal contract?
A) contract under seal
B) recognizance
C) negotiable instrument
D) purchase contract
Upon the death of a partner, the deceased partner’s right in specific partnership property
________.
A) vests in the remaining partner or partners
B) vests in his or her heirs or next of kin
C) is held in trust for the deceased’s heirs or next of kin until the last remaining partner
dies
D) is forfeited upon his or her death
A ________ is a document that states which life-saving measures the signor does and
does not want along with specifying that he or she wants such treatments withdrawn if
doctors determine that there is no hope of a meaningful recovery.
A) living will
B) health care directive
C) health care proxy
D) living trust
Which of the following is true of a unilateral mistake?
A) Only one mistake or ambiguity is present in the subject matter of the entire contract.
B) Out of several contracts drafted simultaneously between two parties, one has a
mistake in its subject matter that does not concern the other contracts.
C) Only one party is mistaken about a material fact regarding the subject matter of a
contract.
D) A single mistake about a material fact in the subject matter of a contract appears
several times in the contract.
Brewer Refineries enters into a written contract to employ Joe Mohr as the Chief
Operations Officer at a salary of $40,000 per month for a period of three years.
However, Brewer Refineries fires Joe before he can start work. If Joe cannot find a
comparable job, how much can Joe recover as compensatory damages from Brewer
Refineries?
A) $1,440,000
B) $2,880,000
C) only $1
D) only $40,000
Mr. Davidson, who owns 17 percent of his company’s shares, is displeased with the six
incumbent directors of the corporation. He proposes a slate of directors consisting of
five other persons and himself to become members of the board of directors of the
corporation and replace the incumbent directors. In the proxy contest, Mr. Davidson
manages to acquire proxies from shareholders who control only 35 percent of the
company’s shares. Which of the following is true in this context?
A) The shareholders who voted for Mr. Davidson’s slate of directors will constitute 35
percent of the new board of directors.
B) The incumbent directors will continue to form the board of directors.
C) Since a clear majority was not established by the proxy contest, another proxy
contest must be held.
D) The slate of directors proposed by Mr. Davidson will form the new board of
directors.
Which of the following is a difference between indictments and information
statements?
A) Indictments are issued by a grand jury, while information statements are issued by a
magistrate.
B) Indictments are issued before a trial, while information statements are issued after a
trial.
C) Information statements are issued without determining guilt, while indictments are
issued where guilt is evident.
D) Information statements are issued to dismiss a case before it goes to trial, while
indictments are issued to bring a case to trial.
Which of the following states has enacted right-to-work laws?
A) Oregon
B) New Jersey
C) Washington
D) Florida
Mislaid property refers to property that is ________.
A) involuntarily misplaced somewhere and then forgotten by an owner
B) taken away from an owner without his or her knowledge
C) voluntarily placed somewhere by the owner and then inadvertently forgotten
D) voluntarily placed by an owner somewhere with the intention of discarding it
completely
An exclusive license is defined as ________.
A) a license that grants access to exclusive information for a limited period
B) a license that restricts the licensee to some information only
C) a license that is granted to only one party for a specific period
D) a license that grants licensees only a few rights in intellectual property
Which of the following is a similarity between a merger and a share exchange?
A) Both involve the splitting of a single company into multiple smaller companies.
B) Both require the complete absorption of one company and the sacrifice of its legal
existence.
C) Both involve the continued legal existence of every company involved in the
processes.
D) Both require the recommendation of the board of directors of the companies
involved.
Which of the following is true about the auditor verifying a corporation’s financial
statements?
A) The auditor must be an independent certified public accountant.
B) The auditor cannot use information about the corporation from third parties.
C) The auditor cannot inspect the corporation’s real property unless he is closely
associated with the company.
D) The auditor must render a qualified opinion after the audit is complete.
________ is a form of bankruptcy that permits bankruptcy courts to supervise the
debtor’s plan for the payment of unpaid debts in installments over the plan period.
A) Chapter 7
B) Chapter 13
C) Chapter 11
D) Chapter 12
According to the Economic Espionage Act, ________.
A) persons who have reverse engineered a trade secret can use that trade secret and the
related trademark
B) the rights to a trade secret will have to be renewed after a specified period of time
C) trade secrets can be shared for a limited amount of time
D) it is a federal crime to convert another’s trade secret for commercial benefit
Which of the following is an example of stakeholder interest theory?
A) A company decides to continue operations in its unprofitable factory for the benefit
of its employees.
B) A leather company minimizes its toxic output to counter complaints of
environmental damage from local residents.
C) A company decides to increase the price of its products in order to maximize the
profit for its shareholders.
D) A company donates 20 percent of its quarterly profits to flood victims in another
country.
Which of the following is a similarity between Section 14(a) of the Securities and
Exchange Act and the Williams Act?
A) Both allow the president of the United States to suspend the acquisition of U.S.
businesses by a foreign investor.
B) Both prohibit material misrepresentations of material facts in proxy materials.
C) Both establish antifraud provisions for certain corporate actions that prevent
fraudulent actions.
D) Both specifically regulate tender offers made by a company to a target company.
Which of the following statements is true about partners in a limited partnership?
A) Limited partners actively participate in the management of the partnership concern.
B) General partners are personally liable for debts in the partnership concern.
C) General partners cannot assume the role of limited partners in the partnership
concern.
D) Limited partners are restricted to not more than thirty in a partnership concern.
Explain the concept of an exculpatory clause with an example.
Discuss in detail about the categories of employees that are exempt from the federal
minimum wage and overtime pay requirements.
Why is the exclusionary rule controversial?
Analyze the effects of a minor’s duty of restoration.
What is the difference between the Fair Credit Billing Act and the Fair Credit Reporting
Act?
Discuss the need for a transfer of title to fund a living trust. Can a living trust be
revoked?
Carl, a certified public accountant, prepares a registration statement for Blue Scales,
Inc. He discovers that some of the financial information provided by Blue Scales is
inaccurate and discusses this with his point of contact in the company. Carl conceals
this and includes misstatements of material fact in his registration statement. Blue
Scales files this registration statement with the Securities and Exchange Commission
(SEC). If these misstatements are discovered by an investor, what is Carl’s liability
under securities laws?
Discuss the circumstances under which certain speech would not be protected by the
First Amendment and be totally forbidden by the government.
How can the Statute of Frauds writing requirements be satisfied under the written
confirmation rule if both the parties to a contract are merchants?
How can an individual assert that he or she has been discriminated with disparate
treatment by an employer?
One of the member nations of the WTO believes that another member nation has
breached one of the trade agreements between them. What course of action is the WTO
likely to take?
“A nonbreaching party can sue the breaching party without making efforts to reduce the
damages caused by the breach of contract.” Discuss this statement with an example.
When does a corporation perform an ultra vires act? How are corporations held liable if
such acts are prohibited by the law?
Jeeves, the member of an LLC with three other members, injures a pedestrian while
driving to work at a speed above the highway speed limit. Can the pedestrian sue the
LLC for his negligence? Give reasons to support your answer.
Compare the lessee’s right to cancel a contract with the lessor’s right to cancel a
contract.
Explain bailment with an example.