Which of the following statements is true of the Labor Management Reporting and
Disclosure Act of 1959?
A) The act establishes the right of employees to form and join labor organizations.
B) The act establishes the right of employees to bargain collectively with employers.
C) The act gives employers the right to engage in free-speech efforts against unions
prior to a union election.
D) The act regulates internal union affairs and establishes the rights of union members.
Fraud in the inception is also known as fraud in the ________.
A) factum
B) inducement
C) concealment
D) writing
A person found speeding is considered to have committed a(n) ________.
A) indictable offence
B) violation
C) felony
D) misdemeanor
________ is a rule that says an employer is liable for the tortious conduct of its
employees or agents while they are acting within the scope of the employer’s authority.
A) Restatement
B) Vicious rule
C) Respondeat superior
D) Coming and going rule
Which of the following statements is true of certified checks?
A) Banks are obligated to certify checks that are for amounts greater than $10,000.
B) Certified checks are payable at any time from the date they are issued.
C) A drawer can stop payment on a certified check if it is indorsed.
D) Banks can charge a fraction of the check value as a fee for certifying it.
Which of the following is true of anticipatory breach?
A) It occurs when a contracting party fails to inform the other party in advance about
non-performance of his or her contractual duties when due.
B) In case of anticipatory breach, nonbreaching party’s obligations under the contract
are not discharged.
C) The nonbreaching party must wait till performance is due to sue the breaching party.
D) It can be derived from the conduct of the breaching party without being expressly
stated by that party.
Which of the following is true of patents?
A) For an invention to be patented, it has to be novel, useful, and obvious.
B) A patent number is assigned to a patent that is granted.
C) Patents last for an indefinite period of time and are the sole property of the inventor.
D) The patent term for a given patent begins to run from the date the patent is granted.
Which of the following is a country-specific domain name?
A) .ca
B) .com
C) .net
D) .info
Silvar, a chain of automotive showrooms, charges its franchisees approximately four
percent of new sales and puts this money in a special fund to pay for advertising and
promotion. In this instance, the franchisees are paying ________ fees.
A) royalty
B) contingency
C) assessment
D) lease
________ is the act of a minor after he or she has reached the age of majority, by which
he or she accepts a contract entered into when he or she was a minor.
A) Exculpation
B) Restitution
C) Ratification
D) Emancipation
When an indorser includes some specific instruction in an indorsement, it is known as
a(n) ________ indorsement.
A) blank
B) institutional
C) restrictive
D) qualified
By showing that the defendant acted negligently, a plaintiff can win a lawsuit filed
under Section 18(a) of the Securities Exchange Act of
Failure of a corporate director or officer to exercise the duty of care while conducting
the corporation’s business is called ________.
A) defamation
B) negligence
C) extortion
D) embezzlement
A motion for a change of venue would typically be granted where ________.
A) a court does not have personal jurisdiction over the plaintiff
B) selection of an impartial jury would be unlikely at the original venue location
C) the party losing a case would like a retrial in another location
D) a court does not have subject matter jurisdiction
What school of jurisprudential thought emphasizes using law as a tool for market
efficiency while solving legal disputes?
A) the Critical Legal Studies School of jurisprudence
B) the Command School of jurisprudence
C) the Sociological School of jurisprudence
D) the Law and Economics School of jurisprudence
Which of the following holds true in case of liquidated damages?
A) For liquidated damages to be lawful, the actual damages must be precisely
determined.
B) Liquidated damages are enforceable even if actual damages are later determined to
be different.
C) A liquidated damages clause is considered a penalty if actual damages are not
determinable in advance.
D) If a liquidated damages clause is found to be a penalty, it continues to be
enforceable.
In a Chapter 11 bankruptcy, the creditors’ committee is usually composed of ________.
A) all unsecured creditors and the three largest secured creditors
B) the seven largest unsecured creditors
C) the seven largest unsecured creditors, and all secured creditors
D) the three largest secured creditors and the three largest unsecured creditors
________ is a moral theory which says that people owe moral duties that are based on
universal rules.
A) Rawls’s social justice theory
B) Kantian ethics
C) Utilitarianism
D) Moral relativism
The secretary-general of the UN Secretariat is elected by ________.
A) the permanent members of the UN Security Council
B) all members of the UN Security Council
C) the judges of the International Court of Justice
D) the General Assembly
The OSHA guidelines that set safety rules for specific equipment, procedures, types of
work, unique work conditions, and the like are known as ________.
A) standard of wellness
B) specific duty standards
C) code of direction
D) general standard of work
Under the UCC, if the time, place, and manner of delivery of goods are not mentioned
in a contract, ________.
A) the place of delivery is the buyer’s place of business
B) the contract is void for lack of definiteness
C) the place of delivery is the seller’s place of business
D) the seller is obligated to pay for shipping to the buyer’s place of business
Altonvista, Inc., a company based in California, is sued by a plaintiff from the state of
Texas. Which of the following statements would apply to this situation?
A) The case must be heard in the California federal court as this is a subject matter in
which federal courts have exclusive jurisdiction.
B) If the plaintiff chooses to bring the case to the California federal court, it would stay
in the federal court.
C) If the plaintiff decides to bring the case to the California federal court, Altonvista
Inc. can have the case moved to a California state court.
D) The case can only be heard in a California state court as the matter is not subject to
federal jurisdiction.
According to the Department of Labor, children under the age of 14 can only be
employed as ________.
A) stocking staff at stores
B) newspaper deliverers
C) waiters
D) store assistants
A ________ is an agreement that requires a selling shareholder to offer his or her shares
for sale to the other parties to the agreement before selling them to anyone else.
A) proxy
B) buy-and-sell agreement
C) voting trust
D) right of right refusal
The filing of either a voluntary petition or an unchallenged involuntary petition
constitutes a(n) ________.
A) prayer for relief
B) discharge
C) order for relief
D) composition
Which of the following statements best describes an agent’s duty of loyalty?
A) It refers to a fiduciary duty an agent owes not to act adversely to the interests of the
principal.
B) It refers to a duty that an agent has to maintain an accurate accounting of all
transactions undertaken on the principal’s behalf.
C) It refers to a duty that an agent owes to notify the principal of important information
concerning the agency.
D) It refers to a duty that an agent owes to meet the standards of reasonable care, skill,
and diligence implicit in all contracts.
A ________ refers to a document filed by a secured creditor with the appropriate
government office that constructively notifies the world of his or her security interest in
personal property.
A) security disclosure
B) financing statement
C) possession statement
D) custodial statement
The ________ states that agents’ contracts to sell property covered by the Statute of
Frauds must be in writing to be enforceable.
A) merger clause
B) common law of contracts
C) doctrine of equity
D) equal dignity rule
Arnault Automobiles contracts with Glennworth Machines to purchase car engines for
their new line of sports cars. After the engines are delivered by Glennworth, Arnault
pays its contractual partner with a check that bounces. Which of the following rights
can Glennworth Machines exercise in order to recover its engines?
A) right to replevy goods
B) right to reclaim goods
C) right to obtain specific performance
D) right to capture
In which of the following cases does a class action occur?
A) when there are no factual disputes to be decided by the jury
B) when the defendant has multiple grounds for appeal
C) when a group of plaintiffs collectively bring a lawsuit against a defendant
D) when the plaintiff does not reply to the defender’s cross-complaint
Bartie’s, Inc. sells watercolors and pastels that are marketed as safe for use by children.
However, several accounts of lead poisoning were reported in children who used the
products. An investigation revealed that the company was knowingly manufacturing
colors that contained toxic amounts of the heavy metal. Which of the following torts
has Bartie’s, Inc. committed?
A) battery
B) disparagement
C) deceit
D) professional malpractice
Which of the following statements is true of a principal-independent contractor
relationship?
A) Principals are bound by the authorized contracts of their independent contractors.
B) Independent contractors cannot be authorized by principals.
C) Independent contractors are employees of the principals.
D) Principals cannot directly employ independent contractors.
The ________ is often referred to as a “living document” because it is so adaptable.
A) Articles of Confederation
B) Lee Resolution
C) Declaration of Independence
D) U.S. Constitution
Which of the following is true about the United States law today?
A) The state courts are not bound to follow the legal precedents established by the
Supreme Court.
B) The law of all states in the U.S. except Louisiana is based on English common law.
C) The law and equity courts remain separate in most states today.
D) The U.S. Congress mandates that all 50 states follow the same law.
Which of the following is true about electronic commerce?
A) The use of e-commerce is restricted to the large organizations.
B) The traditional rules of contract law adequately meet the needs of Internet
transactions.
C) It is regulated by several federal statutes enacted by the government.
D) It is not protected from infringement.