Federal statutes are organized by topic into code books.
The death of one of the parties of a tenancy at will does not terminate the contract.
Comparative negligence is a doctrine that says a plaintiff who is partially at fault for his
or her own injury cannot recover against the negligent defendant.
The implied warranty of fitness for a particular purpose applies only to merchants.
If a nurse administers CPR to save the life of a dying man and negligently injures the
man’s arm in the process, the nurse cannot be sued as he or she is protected by Good
Samaritan statutes.
Provisions concerning the limitation or regulation of powers of the corporation cannot
be included in the articles of incorporation.
Tangible personal property includes securities, patents, trademarks, and copyrights.
Intermediate appellate courts review new evidence or testimony that was not seen or
heard in the lower courts.
In the U.S. Circuit Courts of Appeals, an en banc review refers to an appeal heard by a
three-judge panel.
Under the mailbox rule, an acceptance is only effective when it is received.
A tipper cannot be held liable for the profits made by the tippee.
A limited liability partnership has no general partner.
The Racketeer Influenced and Corrupt Organizations Act (RICO) applies only to
organized crime.
A unilateral refusal to deal is a violation of Section 1 of the Sherman Act because there
is a concerted action with others.
Vertical mergers create an increase in market share because the merging firms serve
similar markets.
Title VII of the Civil Rights Act of 1964 applies to employers with any number of
employees.
Under the doctrine of strict liability, bystanders who are injured by a defective product
are entitled to the same protection as the product’s consumers.
An entrepreneuris a person who forms and operates a business.
Article 2 of the Uniform Commercial Code is also applied by federal courts to sales
contracts governed by federal law.
An operating agreement can be amended orally.
The measure of damages awarded to an innocent party for fraud is the difference
between the value of the property as represented and the actual value of the property.
The Consumer Product Safety Commission, created in 1972, has the authority to
require a manufacturer to recall unsafe toys.
The European Union (EU) treaty creates open borders for trade by providing for the
free flow of capital, labor, goods, and services among member nations.
A depositionis oral testimony given by a party or witness during the trial.
A crime is the violation of a statute for which the government imposes a punishment.
According to ethical relativism, an action that is usually thought to be unethical would
not be considered unethical if the perpetrator thought it was ethical.
The creation of a limited partnership is formal and requires public disclosure.
Human beings are protected by the secondary level of the NAAQS.
A defendant who has not been negligent but who is made to pay a strict liability
judgment can bring a separate action against the negligent party in the chain of
distribution to recover its losses.
A limited liability company is an incorporated business entity.
An investment contract is a flexible standard for defining a security.
Casual sales and transactions are not covered under the strict liability doctrine.
The general duty standard requires an employer to provide a work environment that
does not result in its employees’ mental stress.
No new evidence or testimony is heard in the state supreme courts.
If a person holds an interest in another person’s property without actually owning any
part of the property, this is known as a ________.
A) present possessory interest
B) future interest
C) reversion
D) nonpossessory interest
Which of the following is considered an invalid antitrust injury?
A) lost profits
B) an increase in the cost of doing business
C) injury resulting from higher prices being “passed on”
D) a decrease in the value of tangible or intangible property caused by the antitrust
violation
Canton has listed his house for sale but cannot be present to take care of the sale, as he
needs to go out of town. He intends to give his brother Stratham the power of attorney
to just make decisions regarding the selling of his house while he is gone. What kind of
power of attorney should Canton execute?
A) a general power of attorney
B) a special power of attorney
C) an unlimited power of attorney
D) an implied power of attorney
Biosafety Protocol is a United Nations-sponsored protocol that requires signatory
countries to place the label ________ on all genetically engineered foods.
A) “Warningunnatural food particles”
B) “May contain living modified organisms”
C) “FDA tested and approved food”
D) “WHO tested and approved food”
Which of the following is true of exempt securities?
A) Only the federal government can issue exempt securities.
B) Once a security is exempt, it is exempt forever.
C) An exemption notice must be filed with SEC each time the exempt security is
transferred.
D) Exempt securities cannot be traded publicly.
Section 4205 of the Patient Protection and Affordable Health Care Act requires
restaurants and retail food establishments with 20 or more locations to disclose calorie
counts of their food items and supply information on how many calories a healthy
person should eat in a day. The provisions of this legislation are enforced by the
________.
A) U.S. Food and Drug Administration
B) United Nations
C) Federal Trade Commission
D) Consumer Product Safety Commission
What is meant by “causation in fact”?
A) the facts stated by a plaintiff during trial
B) a defendant’s negligent act that caused the plaintiff’s injuries
C) a defendant’s defense against a case of negligence
D) a defendant’s plea of guilt due to negligence
Portman, who runs a computer hardware store, had signed a contract with Stewie Inc. to
deliver 125 computer monitors. He was to deliver it by the 5th of August, but by the 3rd
of August, Portman could not arrange for the monitors, as his regular supplier was not
available. He then decided to go to another supplier who had a higher selling price for
monitors rather than cancelling the contract with Stewie Inc., as he believed it was his
duty to do so. Which of the following moral theories matches Portman’s behavior?
A) Kantian ethics
B) utilitarianism
C) Rawls’s social justice theory
D) ethical fundamentalism
When is the annual shareholders’ meeting held?
A) according to the date fixed in the bylaws
B) at the discretion of the board of directors
C) only if and when there is an organizational crisis
D) only when necessary to elect a new board of members
Under the Federal Unemployment Tax Act (FUTA), employers are exempted from
paying unemployment taxes.
Proponents of the Command School of jurisprudence will assert that the law is
________.
A) developed, communicated, and enforced by the ruling party
B) a means to achieve and advance sociological goals
C) a collection of a society’s traditions and customs that has developed over the
centuries
D) based on human reasoning, and humans’ choosing power between what is good and
evil
The Food, Drug, and Cosmetic Act is a federal statute that ________.
A) covers all food products including poultry and processed meat
B) regulates the sale of food additives, drugs, cosmetics, and medicinal devices
C) implements the Federal Meat Inspection Act, enacted in 1906
D) protects the public by providing greater medical coverage from food-related
illnesses
LetsConnect is a three-month-old Internet service provider in the United States of
America. In the last two months, it was discovered that several LetsConnect users
exchanged online material that is illegal in the United States. The ISP took no measures
to investigate the matter or prevent it. Which of the following is true of this case?
A) The users of LetsConnect are not liable for the material they exchanged.
B) The ISP is not liable for the content transmitted over its network.
C) The ISP will be prosecuted for abusing the freedom of speech.
D) The ISP will be prosecuted for violating the Communications Decency Act.
What is considered as the supreme law of the land in the United States?
A) judicial decisions issued by the state courts
B) the Constitution of the United States of America
C) the federal statutes passed by the United States Congress
D) executive orders passed by the president
Which of the following is acceptable consideration for a contract?
A) a penalty
B) an arrest
C) a sentence
D) money
A(n) ________ is a term for a mark that has become a common term for a product line
or type of service and therefore has lost its trademark protection.
A) private brand
B) service mark
C) obsequious work
D) generic name
Jessica wants to buy a laptop from the website of CloudFive Computers. Before
confirming the purchase, the website asks her to provide biometric identification using
an electronic scanner. This is an example of a(n) ________.
A) e-license
B) e-signature
C) exclusive license
D) conditional license
The Patient Protection and Affordable Care Act (PPACA) was amended by the Health
Care and Education Reconciliation Act. The amended act is commonly referred to as
the ________ Act of 2010. The goal of this act was to increase the number of persons
who have health care insurance in the United States.
What is an executory contract?
A) a contract that cannot be discharged under Chapter 13
B) a contract that the debtor is obligated to perform despite filing for bankruptcy
C) a contract between several creditors and a single debtor which stipulates equitable
division of the debtor’s property
D) a contract that has not been fully performed
A jury that cannot come to a unanimous decision about the defendant’s guilt is called
a(n) ________ jury.
A) grand
B) open
C) struck
D) hung
To which of the following type of mortgages does the antideficiency statute apply?
A) foreign currency mortgages
B) home improvement mortgages
C) first purchase money mortgages
D) second purchase money mortgages
Ajax, a pharmaceutical company, has designed a new medicine for morning sickness
among pregnant women. Testing at their R&D center showed the drug to be highly
reliable. Ajax has to approach a U.S. federal administrative agency called the ________
for the drug to be deemed legal for sale to the public.
A) Medicines and Healthcare Products Regulatory Agency
B) Consumer Product Safety Commission
C) Federal Trade Commission
D) Food and Drug Administration
In which of the following cases is a default judgment entered?
A) A defendant admits all the allegations in the complaint.
B) There is insufficient evidence to resolve the dispute.
C) The court believes that the lawsuit can be settled before/without trial.
D) A defendant does not file a written response to a plaintiff’s complaint.
Utilities Inc. decided to go public by an initial public offering. It sold securities, some
of which were bought by James Jefferson. Six months later, Mr. Jefferson sold the
Utilities shares he had purchased to Martha Graham and Mark Franco. Two years later,
Mr. Jefferson bought back the Utilities shares from Ms. Graham and Mr. Franco and
made a profit out of both transactions. Identify the issuer in this scenario.
A) Utilities Inc.
B) James Jefferson
C) Martha Graham
D) Mark Franco
Which of the following would come under the purview of the Medicinal Device
Amendment to the FDCA?
A) a new oral medication for depression
B) a new range of cosmetics to reduce signs of aging
C) a new and compact heart pacemaker
D) a revolutionary drug therapy for cancer
The Dominican Republic-Central America Free Trade Agreement (DR-CAFTA)
prohibits its member nations from entering into treaties with countries in Central
America that are not part of the DR-CAFTA.
An oral agreement to purchase a neighbor’s bicycle for $250 is a(n) ________ contract.
A) void
B) voidable
C) implied
D) express
What is a tenancy at will?
A) a tenancy created when a lease specifies intervals at which payments are due but
does not specify the duration of the lease
B) a tenancy created by a lease that may be terminated at any time by either party
C) a tenancy created when a tenant retains possession of property after the expiration of
another tenancy
D) a tenancy created when a landlord and a tenant agree on a specific duration for a
lease
The ________ Act of 2003 permits consumers to place fraud alerts on their credit files.
A) Fair Debt Collection Practices
B) Fair Credit Billing
C) Fair and Accurate Credit Transactions
D) Fair Credit Reporting
Which of the following businesses or activities enjoys an implied exemption from
antitrust laws?
A) railroads
B) agricultural cooperatives
C) airlines
D) labor unions
A(n) ________ is a contract a principal and agent enter into that says the principal
cannot employ another agent other than the one stated.
The ________ doctrine allows for certain limited unauthorized use of copyrighted
materials.
Under the ________ Clause of the Constitution, treaties become part of the “law of the
land,” and conflicting state or local law is void.
The ________ refers to a federal statute that establishes procedures for federal
administrative agencies to follow while conducting their affairs.
________ is a federal act that provides for both criminal and civil penalties for
racketeering.
In community property, property that is acquired through gift or inheritance either
before or during marriage is considered ________.
A(n) ________ is an agreement in which the accused admits to a lesser crime than
charged, and in return, the government agrees to impose a lesser sentence than might
have been obtained had the case gone to trial.
The willful or malicious burning of a building is called ________.
Unauthorized and harmful or offensive physical contact with another person is called
________.
List the advantages and disadvantages of a sole proprietorship.
The Clean Air Act directs the EPA to establish ________ standards for certain
pollutants. These standards are set at two different levels: primaryto protect human
beings, and secondaryto protect vegetation, matter, climate, visibility, and economic
values.
Certain personal property is so closely associated with real property that it becomes part
of the realty. Such items are called ________.
________ is a doctrine that says a person is liable for harm that is the foreseeable
consequence of his or her actions.
The ________ is responsible for making federal law.
The ________ gives an e-signature the same force and effect as a pen-inscribed
signature on paper.
Enacted in 1932, the ________ is a federal statute which stipulates that it is legal for
employees to organize.
________ 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(n) ________ is a long-term unsecured debt instrument that is based on a
corporation’s general credit standing.
A(n) ________ is a person or a corporation that is empowered to accept service of
process on behalf of a corporation and is identified in the articles of incorporation.