A ________ is a grant by the federal government upon the inventor of an invention for
the exclusive right to use, sell, or license the invention for a limited amount of time.
A) geographical indication
B) patent
C) copyright
D) trademark
Who is the beneficiary in a deed of trust transaction?
A) the creditor
B) the debtor
C) the trustee
D) the trustor
A check that a drawer does not want cashed until sometime in the future is called a(n)
________ check.
A) ordinary
B) stale
C) certified
D) postdated
Which of the following is true of a promissory note?
A) It is an evidence of repayment of debt.
B) It is a note denying the credit.
C) It is an evidence of extension of credit.
D) It is a note of acknowledgement of debt.
The Public Company Accounting Oversight Board (PCAOB) was created by the
________.
A) Securities Exchange Act of 1934
B) Securities Act of 1933
C) Tax Reform Act of 1976
D) Sarbanes-Oxley Act of 2002
Harry orally promises to pay $7,543 that he owes to Rob. The next day, Rob wants the
promise to be written on paper. In this scenario, Rob wants the ________ requirement
to be fulfilled in order for the note to be binding.
A) portability
B) signatory
C) permanency
D) transparency
Which one of the following would constitute a copyright infringement?
A) a quotation of a copyrighted novel in a news report
B) use of copyrighted material from a soap opera in a spoof or satire
C) reuse of large amounts of copyrighted film in a documentary
D) reproduction of large amounts of copyrighted documents in a court proceeding
Which of the following statements is true about appeals?
A) Only the plaintiff can appeal the court’s decision in a civil case.
B) Only the defendant can appeal the court’s decision in a criminal case.
C) An appeal can be made before the trial court gives its final judgment.
D) An appellate court cannot reverse a lower court’s decision.
Which of the following is true of misrepresentation of a material fact?
A) It can occur only by the words of the wrongdoer.
B) A misrepresentation is actionable as fraud only if it is the sole factor in inducing the
innocent party to enter into the contract.
C) It is actionable as fraud if the misrepresentation is of a past or existing material fact.
D) Predictions about the future are considered basis for fraud.
Which of the following statements is true of the patent period in the United States?
A) After the patent period runs out, the patented invention is retracted from the public
domain.
B) After the patent period runs out, the patented invention enters the inventor’s private
domain.
C) The patent period begins to run from the date the patent application is filed.
D) The patent period begins to run from the date the patent is issued.
Katie owns 100 pairs of shoes. All of Katie’s shoes are present in a warehouse. Katie
sells her 100 pairs of shoes to Jane. Jane agrees to pick up the shoes from the
warehouse. Katie drives to Jane’s house and drops off a warehouse receipt for the shoes.
Jane then drives from her house to the warehouse to pick up the shoes. When does
passage of title occur?
A) when Jane enters into the contract to buy the shoes from Katie
B) when Jane pays Katie for the shoes
C) when Katie drops off the warehouse receipt to Jane
D) when Jane goes to the warehouse and picks up the shoes
A person who transfers the right of possession and use of goods under a lease is known
as the ________.
A) lessor
B) lessee
C) seller
D) consignee
Local government corporations are often called ________ corporations.
A) service
B) professional
C) municipal
D) profit
Lionel Richmond is a soccer player who has a six-year contract with the Christshire
United soccer team. Two years into the contract, he meets with an accident which
results in the complete amputation of his right leg. Richmond is discharged from further
performance of the contract by ________.
A) novation
B) substituted contract
C) accord and satisfaction
D) discharge by impossibility
The doctrine that shifts the burden of proof from the plaintiff to the defendant is the
________ doctrine.
A) negligence per se
B) res ipsa loquitur
C) Good Samaritan
D) professional malpractice
Which of the following would constitute legal insanity?
A) weakness of intellect
B) emotional problems
C) slight delusions
D) mental retardation
Steve Templeton, the CEO of Rolland Motor Company, is contemplating the shutdown
of a plant in Kantron. The plant has been unprofitable for some time now, and there is
increasing pressure from shareholders to shut it down so as to balance the loss being
incurred by the shareholders. But closing the plant would be a blow to the employees as
they will lose their jobs, and the local suppliers will lose a major buyer. There is also
fear that the sudden closing of the plant will have an adverse effect on the community
of Kantron, as the plant is one of the main sources of employment for the locals. Steve
Templeton considered all these factors before making a decision on the fate of the plant.
If Steve Templeton decides to not close the plant in Kantron, what business social
responsibility will Steve Templeton be achieving?
A) moral minimum
B) corporate citizenship
C) maximizing profits
D) stakeholder interest
Which of the following best describes a servient estate?
A) a piece of land that is being examined for an abstract of title
B) a piece of land over which an easement is granted
C) a piece of land which has concurrent owners
D) a piece of land that comes under a zoning ordinance
Which of the following represents the largest free trade area in the world in terms of
population?
A) NAFTA
B) ACFTA
C) ASEAN
D) AKFTA
Jorge, a fork-lift truck operator for retail chain Hansridges, was injured when the
fork-lift he was operating toppled over. The fork-lift truck was manufactured and
maintained by Ionic Machines, Inc. As he was covered by workers’ compensation
insurance, he could recover workers’ compensation benefits. However, it was later
found that the fork-lift truck was not designed to be used to lift as much weight as Ionic
Machines claimed it could. Which of the following statements is Jorge’s course of
action?
A) He can sue Hansridges for injuries suffered during employment.
B) He can sue Hansridges for hazardous work environment.
C) He can sue Ionic Machines for damages.
D) He cannot sue anyone as he has already received workers’ compensation.
Sometimes employers give employees the title of “manager” to avoid the minimum
wage and overtime pay requirements of the FLSA.
Which of the following is true about a marriage license?
A) It emancipates the couples from their respective parents.
B) It is a mandatory requirement for recognizing common law marriages.
C) It can be recorded after the completion of a wedding ceremony.
D) It cannot be made public.
A(n) ________ is an auditor’s opinion that states that the financial statements are fairly
represented except for, or subject to, a departure from GAAPs, a change in accounting
principles, or a material uncertainty.
A) unqualified opinion
B) qualified opinion
C) adverse opinion
D) disclaimer of opinion
A(n) ________ is a legal arrangement established when one person transfers title to
property to another person to be held and used for the benefit of a third person.
A) will
B) trust
C) escheatment
D) abatement
The certificate of interest acts the same as a(n) ________ issued by a corporation.
A) promissory note
B) stock certificate
C) deposit note
D) initial public offer
Which of the following is true of the liabilities of a franchisor and a franchisee?
A) The franchisor is not liable for any tort arising out of the franchise.
B) Both franchisee and franchisor are jointly liable for torts committed by either.
C) Franchisees are only liable on their own contracts.
D) Franchisors are always liable for the torts of the franchisees.
________ is a rule that says that if a written contract is a complete and final statement
of the parties’ agreement, any prior or contemporaneous oral or written statements that
alter, contradict, or are in addition to the terms of the written contract are inadmissible
in court regarding a dispute over the contract.
A) Parol evidence rule
B) Firm offer rule
C) Open terms rule
D) Gap-filling rule
Which of the following terms best defines discrimination based on information from
which it is possible to determine a person’s propensity to be stricken by diseases?
A) national origin discrimination
B) race discrimination
C) genetic information discrimination
D) color discrimination
Which of the following best defines the tort of battery?
A) unauthorized and harmful physical contact with another person that causes injury
B) attempt to appropriate another person’s identity for commercial purposes
C) oral or written defamation of another person’s character
D) intentional confinement or restraint of another person without that person’s consent
In the case of an ordinary lease, if the lessor is a merchant, the risk of loss passes to the
lessee ________.
A) after the inspection of the goods
B) after the acceptance of the goods
C) on the shipment of the goods
D) on the receipt of the goods
The Environmental Protection Agency (EPA) administers the National Environmental
Policy Act (NEPA) and has the authority to adopt regulations for the enforcement of the
act.
Which of the following would violate the Double Jeopardy Clause?
A) The criminal act violates more than one jurisdiction and each jurisdiction tries the
accused in turn.
B) A case reaches a hung jury in court and the government reopens the case with a new
jury.
C) A person is tried for a case similar to a case from which he was acquitted earlier.
D) The government reopens a case after new incriminating evidence is found against an
acquitted person.
A(n) ________ is a document for a person’s detainment, based on a showing of
probable cause that the person committed a crime.
A) no-knock warrant
B) possessory warrant
C) execution warrant
D) arrest warrant
A(n) ________ is a clause in a contract in which the parties specify certain events that
will excuse nonperformance.
A) approval clause
B) novation agreement
C) force majeure
D) implied-in-fact condition
An invitation to make an offer or an actual offer is referred to as a(n) ________.
A) sale
B) reward
C) advertisement
D) bid