The United States considers Native American tribes as “domestic dependent” nations
with limited sovereignty.
The Clean Air Act does not apply to stationary sources of pollution.
If the parties to a sales contract do not agree to the time, place, and manner of delivery
of the goods, the place for delivery is the seller’s place of business.
According to Regulation A, securities of up to $50 million can only be sold to
accredited investors.
The trademark symbol SM is used to indicate a mark associated with a product.
The OSHA serves only as a model act and employers who violate its rules are not liable
for penalties.
Under Title VII of the Civil Rights Act of 1964, the right of an employee to practice his
or her religion is absolute.
A contract is a bilateral contract if the offeror’s promise is answered with the offeree’s
promise of acceptance.
Liquidation is a form of bankruptcy in which the debtor’s exempt property is auctioned.
An environmental impact statement (EIS) must contain a cost-benefit analysis of the
proposed action and alternative actions.
The U.S. Congress gives the Supreme Court discretion to decide what cases it will hear.
If an agency terminates by operation of law, there is no duty to notify third parties about
the termination.
A pretrial motion is made to try and dispose of all or part of a lawsuit prior to trial.
Administrative agencies are created by the judicial branch of government.
If a franchise is properly organized and operated, the franchisor and franchisee are
separate legal entities.
The coming and going rule says that a principal is generally not liable for injuries
caused by its agents and employees while they are on their way to or from work.
If a limited partner personally guarantees a loan made to the limited partnership by a
creditor, he or she is not personally responsible for the loan if the partnership defaults,
since limited partners are liable for the debts of the limited partnership only up to their
capital contributions.
Federal workers are not covered under the Equal Pay Act.
Disparagement refers to the liability of a professional who breaches his or her duty of
ordinary care.
Persons injured by a RICO violation can bring a private civil RICO action against the
violator.
The Supreme Court has held that the content of offensive speech may not be forbidden
but that it may be restricted by the government.
A franchise is an example of a license.
According to the Statute of Frauds, all contracts for the sale of goods costing $500 or
more must be in writing.
A crime is the violation of a statute for which the government imposes a punishment.
Violations of GAAPs or GAASs, or IFRSs, if applicable, are prima facie evidence of
negligence, although compliance does not automatically relieve the accountant of such
liability.
A nolo contendere plea can be used as evidence of liability against the accused at a
subsequent civil trial.
The U.S. Supreme Court has held that there is an accountant-client privilege under
federal law.
A franchisee is established when parties of a general partnership conduct business
outside the state of their incorporation.
Section 2 of the Sherman Act prohibits the act of monopolization.
Title VII of the Civil Rights Act of 1964 does not apply to labor unions.
The Code of Canon Law of 1983 stipulates the code of conduct to be followed by all
Christians around the world.
An agency by ratification occurs when a principal ratifies an authorized act.
States are allowed to enact minimum wage laws that set minimum wages higher than
the federal level.
The principal is liable for the tortious conduct of an agent who is acting within the
scope of his or her authority.
Undisclosed agencies are not lawful in the United States.
Warrantless searches are permitted when it is likely that evidence will be destroyed.
A qualified opinion is the most favorable opinion that an accountant can render.
A corporation is dissolved upon the effective date of the articles of dissolution.
An EIS can be challenged in court by environmentalists and other interested parties.
If a lawyer fails to file a document with the court on time, causing his client’s case to be
dismissed, he would be liable for ________.
A) professional malpractice
B) intentional misrepresentation
C) tort of appropriation
D) breach of the duty of care
Which of the following can be filed by the defendant in a lawsuit?
A) complaint
B) answer
C) reply
D) injunction
A tenancy created when a landlord and a tenant agree on a specific duration for a lease
is known as a ________.
A) tenancy for years
B) tenancy for life
C) tenancy by the entirety
D) tenancy at sufferance
Which of the following types of liability does a general partner of a limited partnership
have for the debts and obligations of the limited partnership?
A) unlimited personal liability
B) limited capital liability
C) liability of termination as partner
D) limited personal liability
Which of the following statements best indicates how chancery courts were different
from law courts?
A) Chancery courts emphasized developing merchant laws rather than laws for the
common citizen.
B) Chancery courts inquired into the merits of a case rather than emphasize legal
procedures.
C) Chancery courts emphasized a standard set of remedies across different cases rather
than provide equitable remedies.
D) Chancery courts had lower precedence level over legal decisions than the law courts.
The Foreign Sovereign Immunities Act (FSIA) ________.
A) stipulates the rules for conflict resolution among the DR-CAFTA members
B) endows the president with powers to enter into treaties with foreign nations
C) governs exclusively suits against foreign nations in the United States
D) regulates commerce between the United States and foreign nations
Which of the following forms of co-ownership of real property applies only to married
couples?
A) joint tenancy
B) community property
C) tenancy in common
D) condominium
The Food and Drug Administration is empowered to ________.
A) recall unsafe toys, appliances, and other consumer products which are harmful to
users
B) regulate the safety of meat, poultry, and other food products
C) prosecute violators directly by imposing fines and pronouncing sentences
D) obtain orders for the seizure, recall, and condemnation of harmful products
A merger between two or more companies that compete in the same business and
geographical market is known as ________.
A) a horizontal merger
B) a vertical merger
C) a unilateral refusal to deal
D) conscious parallelism
A ________ is an exception that permits a type of building or use in an area that would
not otherwise be allowed by a zoning ordinance.
A) variance
B) fixture
C) dominant estate
D) servient estate
Which of the following is true of workers’ compensation?
A) A worker must file a complaint with the police before claiming workers’
compensation benefits.
B) Workers’ compensation is a provisional remedy, not an equitable remedy.
C) A worker who receives workers’ compensation cannot sue his or her employer in
civil court.
D) Workers’ compensation is generally awarded as punitive damages in a civil lawsuit
initiated by the injured employee.
Which of the following must be in writing under the Statute of Frauds?
A) a business that has more than one commercial venture
B) a partnership that is authorized to deal in real estate
C) a business that is authorized to lend money
D) an enterprise that deals in health and medicine
Which of the following is an instance of misuse of confidential information?
A) An agent gives the seller the principal’s name and phone number in a fully disclosed
transaction.
B) A principal gives the contact details of an agent to a third-party without the agent’s
knowledge.
C) An agent withholds critical information from the principal about the agency.
D) An agent divulges details of his past employer to the principal.
Which of the following is true of the Small Company Offering Registration (SCOR)
form?
A) A SCOR form can only be used for raising more than $1 million through the sale of
securities.
B) A SCOR form can be used by both domestic and foreign companies.
C) A SCOR form doubles as a prospectus for potential investors.
D) A SCOR form must be completed by the issuee before purchasing securities.
A contract is created when ________.
A) the acceptance has been received by the offeror
B) an acknowledgement is sent by the offeror to the offeree of receiving an acceptance
C) the offeree mails the acceptance
D) a written acceptance has been passed between the offeror and the offeree
Which of the following is true of liabilities of LLCs?
A) Members of the LLC are liable to the extent of their capital contribution.
B) Managers of LLCs are personally liable for the debts, obligations, and liabilities of
the LLC.
C) LLCs are not liable for any loss or injury caused by their employees.
D) LLCs are not liable for losses caused due to negligence of their managers during the
ordinary course of business.
There are no resale restrictions on securities that come under Regulation A.
Casual leases between consumers are subject to the Consumer Leasing Act (CLA).
Which of the following is an illegal strike?
A) a sit-down strike at the employer’s premises
B) a work absence
C) the cessation of work
D) an employer lockout
Which of the following is an instance of a decision involving the Equal Protection
Clause being made on the basis of the rational basis test?
A) The government requires only men above the age of 18 to volunteer for military
service.
B) The government establishes a trust fund to provide financial aid to minority groups.
C) A state government employs measures to improve living conditions on Native
American reservations.
D) The government provides subsidies to farmers, but not to carpenters or lumberjacks.
What is the necessary condition for an accused person to be found guilty by a jury?
A) The jury’s guilty verdict has to be approved by the presiding judge.
B) At least half the jurors have to find the defendant guilty of the crime.
C) More than 50 percent of the jurors have to find the defendant guilty of the crime.
D) All the jurors have to unanimously agree that the defendant is guilty of the crime.
An LLC is a(n) ________.
A) unincorporated business entity
B) incorporated business entity
C) cooperative entity
D) proprietorship
Which of the following statements best represents the distinction between binding and
nonbinding arbitration?
A) Unlike nonbinding arbitration, binding arbitration takes place at a court, in the
presence of a judge.
B) If the arbitration is nonbinding, the decision and award of the arbitrator can be
appealed to the courts.
C) A nonbinding arbitration takes place at a court, in the presence of the jury.
D) A nonbinding arbitration implies that the arbitrator’s decision must be reinforced by
the courts.
Which of the following is an example of a horizontal restraint of trade?
A) resale price maintenance
B) division of markets
C) unilateral refusal to deal
D) conscious parallelism
In a(n) ________ franchise, the franchisor licenses the franchisee to make and sell its
products or services to the public from a retail outlet serving an exclusive geographical
territory.
A) chain-style
B) area
C) distributorship
D) processing plant
Which of the following is true of LLC taxation?
A) An LLC is taxed as a corporation in all general cases.
B) Income or losses of an LLC do not flow through to the members’ individual income
tax returns.
C) Members of an LLC are subject to double taxation.
D) An LLC is not taxed at the entity level.
The ________ authorizes the U.S. government to clean up oil spills and spills of other
hazardous substances in ocean waters within 12 miles of the shore and on the
continental shelf and to recover the cleanup costs from responsible parties.
A) Clean Water Act
B) Comprehensive Environmental Response, Compensation, and Liability Act
(CERCLA)
C) Federal Water Pollution Control Act (FWPCA)
D) Marine Protection, Research, and Sanctuaries Act
Lila Miller, who works for a large software firm, is four months pregnant and is due for
a promotion. However, her employer offers the promotion to Harry Oswald, a
less-experienced candidate, as Lila would go on maternity leave soon and would be
unable to perform her duties. Which of the following is true of this scenario?
A) Lila’s employer is liable for quid pro quo sex discrimination.
B) Lila’s employer is liable for hostile work environment sex discrimination.
C) Lila’s employer was lawful in denying her the promotion.
D) Lila’s employer has violated Title VII of the Civil Rights Act of
Taylor gives a power of attorney to his twin brother Corey, permitting Corey to make all
decisions on his behalf while he is abroad. As per the terms of the power of attorney,
Corey is allowed to make decisions to purchase or sell stocks on Taylor’s behalf, sell
Taylor’s real estate if he deems it to be in Taylor’s best interest, pursue or defend
lawsuits on Taylor’s behalf, and make all other relevant decisions for Taylor. What kind
of power of attorney confers such powers to Corey?
A) a special power of attorney
B) a limited power of attorney
C) an implied power of attorney
D) a general power of attorney
Which of the following statements is true of a court trial?
A) All civil cases are tried with a jury.
B) The judge is the trier of fact in a jury trial.
C) A jury is not required in a trial unless both parties request one.
D) Prospective jurors are questioned by lawyers for each party.
Differentiate between trials with and without jury.
The term ________ refers to a situation in which a thief acquires no title to goods he or
she steals.
The sole proprietor has ________ liability.
Discuss the need for and significance of a long-arm statute.
In pursuing a joint venture, many joint venturers form a corporation to operate the joint
venture. This is called a(n) ________.
A contract in which an agreement between the parties is inferred from their conduct is
known as a(n) ________ contract.
The ________ Statute is a federal statute that permits private parties to sue companies
for fraud on behalf of the government.
Outline the minimum wage requirement established by the Fair Labor Standards Act.
How are wages paid to a tipped employee?
What does the act of state doctrine assert?
A director or corporate officer who usurps a corporate opportunity would be violating
the director’s fiduciary duty called the ________.
The ________ is a board composed of one representative from each WTO member
nation that reviews panel reports.
Under a(n) ________ agreement, an employer agrees to hire only employees who are
already members of a union.
The ________ Act is a uniform act that regulates the formation, operation, and
termination of limited partnerships.
A(n) ________ is a statute that relieves medical professionals from liability for ordinary
negligence when they stop and render aid to victims in emergency situations.
Explain the Treaty Clause of the U.S. Constitution.
What is ethical relativism?
Decisions of administrative law judges are subject to ________.
“Workers’ compensation is an exclusive remedy.” Elaborate on this statement with an
example.
The articles of incorporation is also known as the ________.
Distinguish between sex-plus discrimination and gender identity discrimination.