A corporation has the same basic rights to perform acts and enter into contracts as a
physical person.
The income and losses of partnership flow onto and have to be reported on the
individual partners’ personal income tax returns.
The law consists of rules that regulate the conduct of individuals, businesses, and other
organizations in society.
Where an enabling statute does not provide for judicial review of administrative agency
actions, the Administrative Procedure Act authorizes judicial review of federal
administrative agency actions.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 is considered
to be “debtor friendly.”
Contracts are either bilateral or unilateral, depending on what the offeree must do to
accept the offeror’s offer.
Sales contracts can authorize goods to be delivered without requiring the seller to move
them.
A sale, or conveyance, is the most common method for transferring ownership rights in
real property.
The insurgent shareholders of a corporation support the current or incumbent directors
of a corporation.
The 2005 bankruptcy act requires that before an individual debtor receives a discharge
in a Chapter 7 or Chapter 13 bankruptcy, the debtor must attend a personal financial
management course approved by the U.S. Trustee.
The government has the right to reopen a trial against an acquitted defendant if more
evidence surfaces later.
The Nuclear Waste Policy Act mandates that the federal government select a permanent
site for the disposal of nuclear wastes.
A promise must be supported by a bargained-for consideration that is legally sufficient.
Fraud by concealment occurs when one party takes specific action to conceal a material
fact from another party.
Trade secrets qualify for copyright protection.
An LLC is not obligated to reimburse members and managers for payments made on
behalf of the LLC.
Prior to the 1920s and 1930s, the securities markets in this country were regulated by
the federal government.
People who do not want their life prolonged indefinitely by artificial means are not
allowed to make a living will.
Proof of fiduciary or confidential relationship is not required to prove undue influence.
States usually require employers to purchase workers’ compensation insurance from
private insurance companies or state funds to cover workers’ compensation claims.
Transfer to subsequent parties by negotiation is accomplished by placing an
indorsement on the instrument.
When a supervisor harasses an employee by causing a tangible employment action, the
employer can raise a defense to avoid liability.
A promise based on the past performance of the promisee lacks consideration.
Under the doctrine of unintentional tort, a person is liable for harm that is the
unforeseeable consequence of his or her actions.
Under the 2010 Health Care Reform Act, persons who do not obtain health insurance
coverage will be required to pay a tax penalty to the federal government.
The rule of equitable exception states that an executory contract that cannot be
performed by its own terms within one year of its formation must be in writing.
If a landowner believes that a zoning ordinance is illegal or that it has been unlawfully
applied to his or her property, he or she may institute a court proceeding seeking
judicial review of the ordinance or its application.
If the parties do not have a specific agreement concerning the assessment of the risk of
loss, the Uniform Commercial Code (UCC) has the power to mandate who will bear the
risk of loss when goods are lost or damaged.
According to the E-SIGN Act, consumers must consent to receiving electronic records
and contracts.
A replevin is defined as an action by a lessee to recover scarce goods wrongfully
withheld by a lessor.
When an appellate court receives a case appealed to it, it will ________.
A) retry the case with the appellate court judge acting as the jury
B) review the record to see if it would have made the same decision as the jury
C) review the record of the trial court to see if there were any errors of law made by the
judge
D) review the jury’s verdict to see if the appellate court judges would have reached the
same result
The term ________ refers to a mode of acceptance that is indicated from what is
customary in similar transactions, usage of trade, or prior dealings between the parties.
A) express authorization
B) implied authorization
C) option contract
D) unequivocal acceptance
The ________ specifically imposes penalties and fines for the willful understatement of
a client’s tax liability.
A) Tax Reform Act of 1976
B) Racketeer Influenced and Corrupt Organizations Act
C) Private Taxation Litigation Reform Act
D) Uniform Securities Act
Which of the following statements is true of the FDA?
A) It places a complete ban on animal testing.
B) It allows animal testing for only certain kinds of cosmetics like household soaps.
C) It provides tax exemptions to companies that avoid animal testing.
D) It recommends animal testing only if it increases product safety.
Which of the following gives the Securities and Exchange Commission the authority to
regulate the solicitation of proxies?
A) Section 11 of the Securities Act of 1933
B) Section 14(a) of the Securities and Exchange Act of 1934
C) Section 13(d) of the Securities and Exchange Act of 1934
D) Section 12 of the Securities Act of 1933
Intentional misrepresentation occurs when a seller ________.
A) fails to warn customers about the dangerous propensities of a product
B) shows negligence in product design
C) fails to assemble a product carefully
D) conceals a defect in a product
Which of the following intellectual properties is protected by the Lanham Act?
A) trademark
B) trade secret
C) copyright
D) patent
Which of the following statements is true of Rule 10b-5?
A) Privity of contract is a necessity for bringing a lawsuit under this rule.
B) Civil private lawsuits are not permitted under this rule.
C) Only purchasers and sellers of securities can sue accountants under this rule.
D) Ordinary negligence imposes liability on the accountant under this rule.
A contract is ________ if the offeror’s offer can be accepted only by the performance of
an act by the offeree.
A) unilateral
B) bilateral
C) implied-in-law
D) executory
According to the gap-filling rule, if a sales contract does not contain a specific price,
________.
A) the contract has to be redrafted to include a price
B) the contract is considered void due to indefiniteness
C) the contract can be enforced by either party by fixing an open term price
D) the contract cannot be enforced upon the buyee
Which of the following elements has to be proved for a contract to be deemed
unconscionable?
A) that the weaker party did not enter the contract under duress
B) that the parties had equal bargaining power
C) that the dominant party justly used its bargaining power
D) that the adhering party had no reasonable alternative
A(n) ________ is a flexible standard for defining a security.
A) red herring prospectus
B) investment contract
C) certificate of interest
D) debenture
Which of the following can be patented as a utility patent?
A) a lithograph of a court proceeding
B) a theory involving intangible abstractions
C) a sound recording of an opera
D) a schematic depiction of a motor
The ________ is a uniform disclosure document that requires a franchisor to make
specific presale disclosures to prospective franchisees.
A) UFOC
B) UCC
C) UCITA
D) SEA
Which of the following is true of Chapter 11 discharge of debts?
A) Equal amounts of secured and unsecured debt can be discharged based on a debtor’s
proposal.
B) The entire unsecured debt can be discharged based on a debtor’s proposal.
C) Discharge of a portion of unsecured debt by a debtor is permitted to make its plan of
organization feasible.
D) Discharged debt need to be repaid from the postpetition income of a debtor.
The party to whom a check is written is called the ________.
A) drawer
B) drawee
C) payee
D) indorser
A primary function of a negotiable instrument is that it acts as a substitute for
________.
A) money
B) goods sold
C) services rendered
D) the assets held by the drawer
________ protects both sexes from pay discrimination based on sex.
A) The Lilly Ledbetter Fair Pay Act
B) Title VII of Civil Rights Act
C) The Fair Employment Practices Act
D) The Equal Pay Act
Chan, Yuvi, Betty, and Bob form a member-managed LLC that sells antique
commodities online. Betty secretly starts a competing business and makes secret profits
through the business. Which of the following is true of the given scenario?
A) All the members can be held liable for breaching their duty.
B) Betty is liable for breaching her duty of care to the LLC.
C) Betty is liable for breaching her duty of loyalty to the LLC.
D) Betty can compete with the LLC without any legal liability.
Which of the following can be claimed by merely having possession of the instrument?
A) a certificate of deposit
B) an allonge
C) an order instrument
D) a bearer instrument
Which of the following statements best describe an agency by estoppel?
A) It refers to an agency that arises when a principal ratifies a contract created by an
unauthorized agent.
B) It refers to an agency created when a principal and an agent expressly agree to enter
into an agency agreement.
C) It refers to an agency that is not expressly stated but is implied and inferred in the
conduct of the parties.
D) It refers to an agency that arises when a principal creates the appearance of an
agency that in actuality does not exist.
________ occurs when a famous mark is linked to products of inferior quality or is
portrayed in an unflattering context.
A) Blurring
B) Tarnishment
C) Basic dilution
D) Astroturfing
Which of the following is an example of ethical relativism?
A) a person basing his actions on the teachings of a religious figure
B) a person basing her actions on her own feelings
C) a person basing his moral duties on a political treatise
D) a person basing her moral duties on an implied social contract
________ refers to a statute that limits the seller’s liability to a certain number of years
from the date when the product was first sold.
A) Statute of limitations
B) Statute of frauds
C) Statute of general application
D) Statute of repose
An actual contract may be either ________.
A) quasi-contractual or implied-in-law
B) quasi-contractual or implied-in-equity
C) express or implied-in-fact
D) express or implied-in-law
A(n) ________ is a compact made between two or more nations.
A) amendment
B) treaty
C) charter
D) statute
An exculpatory clause is one that prevents the employees of an organization from
engaging in a similar business or occupation within a specified geographic area.
Which of the following is true of a bailment?
A) Only personal property can be used in a bailment.
B) Intangible property cannot be used in a bailment.
C) Only physical deliveries can become a bailment.
D) All bailments must be expressed in writing to be effective.
Scissorwire, Inc. sells shares of its stock to the public, with each share valued at $16.
After a year, the company incurs a loss and the price of the stock drops to $5. The
company reveals that it had deliberately not registered with the SEC before going
public and that it has no money to pay the investors. Which of the following scenarios
is likely to occur?
A) Scissorwire, Inc. can register with the SEC at any point after the dip in shares.
B) The U.S. government can file a criminal lawsuit against Scissorwire, Inc. to seek
criminal penalties.
C) The investors have been negligent in not verifying registration before purchase of
shares and cannot rescind their purchase.
D) Scissorwire, Inc. is liable for the violation of the Securities Exchange Act of 1934.
The wrongful or fraudulent taking of another’s personal property other than from his or
her person or building is considered as ________.
A) larceny
B) robbery
C) aggravated burglary
D) aggravated robbery
Which of the following statements best describes cross-examination?
A) It involves inspection of evidence by the trier of facts.
B) It involves questioning of the prospective jurors by the judge or lawyers of each
party.
C) It involves questioning of the witnesses by the plaintiff’s attorney.
D) It involves questioning of the witnesses by the defendant’s attorney.
Which of the following is true of disposition of collateral?
A) Disposition of collateral must be a public proceeding.
B) The debtor is entitled to receive any surplus collateral that remains after disposition.
C) The debtor need not be notified of the disposition as the creditor has complete claim
on the collateral.
D) Disposition of collateral occurs when the default is by the creditor.
Which of the following is an example of Web-browsing software?
A) Microsoft Internet Explorer
B) Adobe Acrobat Reader
C) Outlook Express
D) BitTorrent
Which of the following refers to a limited liability company that has no specified term
of duration?
A) S corporation
B) C corporation
C) term LLC
D) at-will LLC
The agreement of a tender offeror to abandon its tender offer and not purchase any
additional stock is called a(n) ________ agreement.
A) plea bargaining
B) standstill
C) settlement
D) operating
Explain the duties of a tenant toward the landlord. Also, discuss the drawbacks of
failing to discharge these duties.
Analyze the importance of the recording statute in a mortgage transaction.
Explain mortgage with an example.
Explain the difference between voluntary petition and involuntary petition with an
example.
Why is a principal not liable for injuries caused by its agents and employees while they
are on their way to or from work? Discuss with an example.
Explain with an example the circumstances under which a seller is in breach of a sales
contract.
Compare and contrast licensing and joint ventures as two forms of business
arrangements.
Discuss how the Just Compensation Clause of the Fifth Amendment to the U.S.
Constitution proves to be beneficial to private property holders.
Compare and contrast between reasonable person standard and reasonable professional
standard.
Explain intrastate offering exemption and the requirements that need to be met for it to
occur.
Differentiate between the right to replevy goods and the right to obtain specific
performance with examples.
Explain how the doctrine of stare decisis brings stability to the legal system.
Explain foreclosure sale with an example.
“An aggrieved party can bring to suit a breach of contract any time after the breach has
been made.” Discuss an argument for or against this statement with an example.
Explain felony murder rule with an example.
Provide reasons why a franchisor may not be vicariously liable for the negligence of a
franchisee.
Explain, in brief, the Uniform Commercial Code and a few of its articles related to
financial transfers and the banking system.
Discuss the business arrangements of a strategic alliance. How does it differ from the
other forms of business arrangements?