H-1B visa holders are allowed to bring their immediate family members to the United
States under the H4 visa category.
The Health Care Reform Act prohibits insurers from establishing an annual spending
cap for benefit payments.
A “whistleblower bounty program” allows a person who provides information that leads
to a successful SEC action in which more than $1 million is recovered to receive 10
percent to 30 percent of the money collected.
The per se rule is applicable to restraints of trade that are considered inherently
anticompetitive.
Corporations are not allowed to enter into contracts in their own name.
A principal owes a duty to indemnify the agent for any losses the agent suffers because
of the principal’s conduct.
The articles of incorporation must contain the name and address of every incorporator.
Executive orders are an example of codified law.
Living wage laws are minimum wage laws enacted by cities.
Blue-sky laws are state laws that regulate the issuance and trading of securities.
Government enforcement of federal antitrust laws is divided between the Antitrust
Division of the Department of Justice and the Bureau of Competition of the Federal
Trade Commission.
Joint venturers do not have equal rights to manage a joint venture.
A party that employs an independent contractor is called an agent.
Pursuant to the power given to it by Article III of the U.S. Constitution, Congress has
established the U.S. district courts.
Ordinary words or symbols that have taken on a secondary meaning can qualify as
marks.
The primary level of the NAAQS protects vegetation.
.bz is a restricted domain extension and can only be used by businesses or organizations
in Brazil.
Under common law, employees who were injured on the job could not sue their
employers for negligence.
Disparate-impact discrimination occurs when an employer adopts a work rule that is
neutral on its face but is shown to cause an adverse impact on a protected class.
Receipt of a share of business profits is prima facie evidence of a general partnership.
The EEOC and a complainant can jointly sue an employer who discriminated against
the complainant.
Under a special warranty deed, the seller is liable for defects in title that existed before
the seller obtained the property.
A doctor driving on the wrong side of the road crashes into an eight-year-old boy riding
a bicycle. Fearing the consequences, the doctor flees without reporting the accident or
giving first-aid to the boy. The doctor is liable for professional malpractice.
The decisions of the U.S. Supreme Court can be appealed to higher courts.
The Fair Housing Act specifically prohibits discrimination against disabled individuals
in employment, public services, public accommodations, and services.
A certification mark is usually owned by a for-profit corporation.
The doctrine of adverse possession requires the delivery of the deed for the transfer of
property to be valid.
Members of LLCs are not personally liable for the LLC’s debts, obligations, and
liabilities.
An S corporation cannot have more than 100 shareholders.
FDA approval is not mandatory for medicinal devices to be legally sold in the United
States.
Res ipsa loquitur switches the burden to the plaintiff to prove that the defendant was
negligent.
A material fact is a fact that is irrelevant to the subject matter of a contract but pertains
to the conduct of the parties.
A force majeure clause usually excuses nonperformance caused by natural disasters
such as floods, tornadoes, and earthquakes.
Partners of LLPs are personally liable for the LLPs’ debts, obligations, and liabilities.
An implied-in-fact contract is a contract in which agreement between parties has been
inferred from their conduct.
The Islamic law of Shari’a encourages levying interest on loan payments.
Usurping a corporate opportunity is a breach of the duty of loyalty that can only be
committed by a shareholder.
A system in which each shareholder votes the number of shares he or she owns on
candidates for each of the positions open is known as cumulative voting.
Larry, a merchant seller, had contracted with Simon to buy welding equipment. The
contract stipulated that Larry would pick up the equipment from Simon’s warehouse on
the 14th day from the date of the contract. Larry could not make the pick-up on the
stipulated date and before he could do so on the 15th day, the warehouse and its contents
were destroyed by arsonists. In this situation, who bears the risk of loss for the goods
that were to be received by Larry?
A) The risk of loss lies with Larry for delaying the pick-up.
B) The risk of loss lies with Simon for not protecting the goods from the arsonists.
C) The risk of loss is equally shared by Larry and Simon.
D) The risk of loss is shifted to the persons responsible for the fire.
According to the objective theory of contracts, the intent to enter into a contract is
judged by the ________.
A) doctrine of equity
B) legality of the contract
C) reasonable person standard
D) common law of contracts
Ashton borrows $25,000 from Amanda, who lends the money without taking an interest
in collateral for the loan. Amanda is relying on Ashton’s credit standing when she made
the loan. In this case, what kind of creditor is Amanda?
A) an unsecured creditor
B) a secured creditor
C) an administrative claim creditor
D) a post-petition creditor
The statute of limitations establishes the period within which a ________.
A) plaintiff must bring a lawsuit against a defendant
B) defendant must file a written answer against a plaintiff’s complaint
C) defendant can file a cross-complaint against the plaintiff
D) motion for judgment on the pleadingscan be made by either party
An organization provides six months of maternity leave to its female employees,
whereas its male employees can avail paternity leave for a maximum of two weeks.
Which of the following tests is used to examine the lawfulness of this classification?
A) rational basis
B) intermediate scrutiny
C) strict scrutiny
D) cogent basis
Martin, who wants to sell his house, authorizes his concierge, William, to find a
potential buyer and finalize a deal above a stipulated price. William contracts Chris, a
real estate broker, and intends him to only find a potential buyer and send him or her
over to William for the sale. Martin then contracts ReNowait Goodhouses, a home
improvement company, to renovate the house. ReNowait completes its work and Martin
pays the company. Chris then searches for a suitable buyer and finds one in George.
George buys the house and Chris is paid for his services. In this scenario, what type of
commercial relationship exists between Martin and William?
A) an employer-employee relationship
B) an agent-agent relationship
C) an agent-independent contractor relationship
D) a principal-agent relationship
Under the ________ test, if the agent committed an intentional tort to promote the
principal’s business, the principal is liable for any injury caused by the tort.
A) work-related
B) motivation
C) promotional
D) dual agency
Under which of the following circumstances is a warrantless search permitted?
A) if there is no probable cause
B) if the suspect has been previously convicted
C) if evidence is not in plain view
D) if evidence is likely to be destroyed
When a creditor extends credit to a debtor and takes a security interest in some personal
property of the debtor, it is called a ________.
A) super-priority lien
B) collateral claim
C) collateral disposition
D) secured transaction
Intrepid Creations is a product design institute that provides educational courses in
package design. It manages to acquire the right to use simulation software from Marco
Software for a payment of $2,000 a year. There is no clause of expiration on this
arrangement and the right to access the software is renewed annually. Which of the
following business arrangements does the aforementioned scenario indicate?
A) a licensing arrangement
B) a general partnership
C) a limited partnership
D) a franchise
What type of transactions are covered under the Magnuson-Moss Warranty Act?
A) consumer transactions
B) commercial transactions
C) industrial transactions
D) governmental transactions
A person driving over the prescribed speed limit in a suburban area hits and injures a
pedestrian jaywalking against a red “Do Not Walk” sign. The jury finds that the driver
was 80 percent responsible for the accident and the jaywalker was 20 percent
responsible. The pedestrian suffered $100,000 in injuries. If the state in which this case
is heard adopts the doctrine of contributory negligence to interpret such cases, the
pedestrian is entitled to recover ________.
A) no damages from the driver
B) $100,000 from the driver
C) $20,000 from the driver
D) $80,000 from the driver
The ________ is a defense in a Section 2(a) action which provides that a seller’s price
discrimination is not unlawful if the price differential is due to “differences in the cost
of manufacture, sale, or delivery” of the product.
A) natural monopoly defense
B) meeting the competition defense
C) changing conditions defense
D) cost justification defense
________ imposes civil liability on accountants and others for making misstatements or
omissions of material facts in a registration statement or failing to find such
misstatements or omissions.
A) Section 11(a) of the Securities Act of 1933
B) Section 10A of the Securities Exchange Act of 1934
C) Section 101 of the Uniform Securities Act
D) Section 18(a) of the Securities Exchange Act of 1934
Which of the following is an accurate statement regarding the Berne Convention, an
international copyright treaty?
A) The treaty eliminates the need to place the copyright symbol or the word “copyright”
on a copyrighted work.
B) The treaty makes it mandatory to place the copyright symbol on all copyrighted
works.
C) The treaty stipulates the time period a copyright can be retained by the copyright
holder before it enters the public domain.
D) The treaty sets the rules for how copyright can be dealt with when sharing
copyrighted work between governments.
Peter, Preston, and Penny organize an LLC in January. While composing the operating
agreement, they forget to include an amendment clause. Six months later, the situation
demands an amendment to the operating agreement. Which of the following would best
apply in this scenario?
A) The operating agreement can be amended if all three members approve.
B) The operating agreement cannot be amended as it contains no amendment provision.
C) The operating agreement can be amended with the affirmative majority of all
shareholders.
D) The operating agreement can be amended only 60 days after a new amendment
provision is included.
________ refers to a contract provision that designates a certain state’s law or country’s
law that will be applied in any dispute concerning nonperformance of the contract.
A) Choice of law clause
B) Forum-shopping
C) Arbitration clause
D) Forum selection clause
Which of the following is classified under “common securities”?
A) real estate
B) bullion
C) a debenture
D) a bank deposit account
________ refers to an official notice that the Supreme Court will review a case.
A) Writ of certiorari
B) Stare decisis
C) En banc review
D) Sua sponte
An express agency agreement that is often used to give an agent the power to sign legal
documents on behalf of the principal is known as a(n) ________.
A) assignment
B) accommodation
C) power of attorney
D) letter of credit
Which of the following motions asserts that based on supporting evidence outside the
pleadings, there are no factual disputes to be decided by the jury, and the judge can
apply the proper law to the undisputed facts and decide the case without a jury?
A) motion for summary judgment
B) motion for judgment on the pleadings
C) motion for a directed verdict
D) motion for judgment notwithstanding the verdict
The ________ is a federal law that gives the FDA broad powers to license new drugs in
the United States.
A) Drug Amendment to the FDCA
B) Food Labeling and Education Act
C) Health Care Reform Act
D) Patient Protection and Affordable Health Care Act
Which of the following is considered a primary defense against Section 7 of the
Clayton Act?
A) the Noerr doctrine
B) the Colgate doctrine
C) the failing company doctrine
D) conscious parallelism
Which of the following torts committed by an agent is the liability of the principal?
A) substantial frolic and detour
B) accidents caused by an agent on the way to work
C) accidents caused by an agent on the way from work
D) negligence
Which of the following best defines an initial public offering (IPO)?
A) the issuance of an offering statement to the public prior to purchase
B) the filing of a registration statement by an issuer
C) the disclosure document released for public scrutiny
D) the issuance of securities by an issuer to the public
Which of the following types of relationships exists when a person hires another person
to perform some form of physical service but does not authorize that person to enter
into contracts on his or her behalf?
A) employer-employee relationship
B) employer-agent relationship
C) principal-third party relationship
D) principal-agent relationship
Which of the following articles in the UCC deals with the sale of goods?
A) Article 2
B) Article 4
C) Article 5
D) Article 8
________ laws are federal and state statutes and regulations that promote product safety
and prohibit abusive, unfair, and deceptive business practices.
A) Profit-à-prendre
B) Canon
C) Consumer protection
D) Caveat emptor
Which of the following statements is true of the patent period in the United States?
A) It follows the first-to-file rule.
B) The patent term begins to run from the date the patent application is filed.
C) The patent term begins to run from the date the patent is issued.
D) The patent period for an invention is 17 years.
Which of the following is copyrightable?
A) a building
B) a business method
C) a musical composition
D) a product logo
Distinguish between the nonissuer exemption, the intrastate offering exemption, and the
private placement exemption.
When individual union members go on strike without proper authorization from the
union, it is referred to as a(n) ________ strike.
The ________ Act contains a general duty standard that imposes on an employer a duty
to provide employment and a work environment that is free from recognized hazards
that are causing or are likely to cause death or serious physical harm to its employees.
A(n) ________ refers to a contract whereby the owner of a software or a digital
application grants limited rights to the owner of a computer or digital device to use the
software or digital application for a limited period and under specified conditions.
Debentures are an example of ________ securities.
________ are state laws that require certain types of contracts to be in writing.
A party may enter a plea of ________, whereby the accused agrees to the imposition of
a penalty but does not admit guilt.
The ________ is an electronic connection of millions of computers that support a
standard set of rules for the exchange of information.
A party may enter a plea of ________, whereby the accused agrees to the imposition of
a penalty but does not admit guilt.
A transfer of the right to the possession and use of named goods for a set term in return
for certain consideration is known as ________.
The sources of water pollution that are fixed and stationary are known as ________
sources of water pollution.
The creation of an LLC is pursuant to laws stated by the ________ government.
Decertification elections must be supervised by the ________.
In a mediation, the neutral third party is called a(n) ________.
A(n) ________ exists if both parties know the object of the contract but are mistaken as
to its value.
A person who intentionally or unintentionally (negligently) causes injury or death to
another person is called a(n) ________.
________ crimes require that the perpetrator intended to achieve a specific result from
his illegal act.
A(n) ________ is an unconditional promise to perform.