The Uniform Limited Liability Company Act is a model act that provides
comprehensive and uniform laws for the formation, operation, and dissolution of LLCs.
Licensing refers to a business arrangement that occurs when the owner of intellectual
property contracts to permit another party to use the intellectual property.
Causation in fact refers to a point along a chain of events caused by a negligent party
after which this party is no longer legally responsible for the consequences of his or her
actions.
The primary purpose of the Constitutional Convention of 1787 was to limit the power
of the federal government and restrict it from levying or collecting taxes.
Discrimination because of pregnancy, childbirth, or related medical conditions violates
the Civil Rights Act of 1866.
The Securities Act of 1933 is a federal statute that primarily regulates the issue of
securities by companies and other businesses.
Decisions of highest state courts are final unless a question of law is involved that is
appealable to the U.S. Supreme Court.
A private plaintiff can bring an action for employment discrimination under Section
1981 of the Civil Rights Act of 1866 without going through the procedural requirements
of Title VII of the Civil Rights Act of 1964.
Recording a deed gives constructive notice to the world of the owner’s interest in the
property.
A sole proprietorship cannot be easily transferred when the owner desires to do so.
Under the Treaty Clause, both the federal government and state governments can enter
into treaties with foreign nations.
Data and software do not constitute intellectual property or information rights.
An express contract can be stated orally.
The Financial Accounting Standards Board (FASB) issues new GAAP rules and amends
existing ones.
If an agent reveals confidential information about a principal to a third party, the
principal’s course of action is to obtain an injunction against the third party.
Ratification of a contract is a situation in which a principal accepts an agent’s
unauthorized contract.
The Drug Amendment to the FDCA gives the FDA broad powers to license new drugs
in the United States.
A class actionis a court order directing the defendant to appear in court and answer the
complaint.
General partners are not permitted to sue the partnership or other partners at law.
Workers’ compensation insurance does not cover stress and mental illness that are
employment-related.
A sole proprietor is legally responsible for the business’s contracts.
A unilateral mistake occurs if both parties know the object of the contract but are
mistaken as to its value.
Strict liability applies to services but not products.
A rental agreement between a landlord and a tenant is called a lease.
The issuance of an unqualified opinion means that the company’s financial statements
are not in conformity with GAAPs.
A corporation is a foreign corporation in states other than the one in which it is
incorporated.
A life tenant is treated as the owner of the property even after the duration of the life
estate.
A unanimous vote of existing European Union (EU) members is needed to admit a new
member country.
Conscious parallelism occurs if two competing manufacturers of a similar product both
separately reach an independent decision not to deal with a retailer.
A principal works on behalf of an agent.
The duty of loyalty is a fiduciary duty owned by an agent not to act adversely to the
interests of the principal.
Any statements or confessions obtained from a suspect before he or she has been read
the Miranda rights can be excluded from evidence at trial.
To create an implied-in-fact contract, it must be established that the plaintiff provided
the property or services gratuitously.
A party that does not register its brand name has no legal right over it.
A tie decision by the U.S. Supreme Court sets a precedent for later cases.
Which of the following is an accurate statement regarding the risk of loss in a shipment
contract after the seller delivers conforming goods to the carrier?
A) The seller bears the risk of loss during transportation.
B) The buyer bears the risk of loss during transportation.
C) The seller and the buyer equally bear the risk of loss during transportation.
D) The seller bears one-third of the risk of loss and the buyer bears two-thirds of the
risk of loss during transportation.
The Occupational Safety and Health Administration (OSHA) is a federal administrative
agency within the Department of Labor that is empowered to enforce the Occupational
Safety and Health Act.
What is the importance of the Biosafety Protocol prescribed by the United Nations?
A) It dictates the terms and conditions for the production of genetically modified food.
B) It prevents people from differentiating between normal and organic food.
C) It notifies people of the presence of genetically modified food in the market.
D) It assures people of the quality of the food by providing details of its testing process.
Why have checks and balances been built into the U.S. Constitution?
A) to keep a check on the number and frequency of amendments made to the
Constitution
B) to ensure that the judiciary is not biased or corrupt
C) to prevent any one of the three branches of the government from becoming too
powerful
D) to ensure that people of all races and ethnicities are uniformly represented
________ protects both sexes from pay discrimination based on sex.
A) The Lilly Ledbetter Fair Pay Act
B) The Fair Employment Practices Act
C) Title VII of the Civil Rights Act of 1964
D) The Equal Pay Act
________ are the most common form of business organization in the United States.
A) General partnerships
B) Sole proprietorships
C) Limited liability companies
D) Limited partnerships
A relevant market is characterized by the presence of ________.
A) unique goods and services
B) reasonably interchangeable goods and services
C) highly differentiated goods and services
D) pure monopoly of the defendant’s goods and products
________ damages are the only damages that may be recovered for violations of the
Federal Trade Commission (FTC) Act.
A) Treble
B) Double
C) Potential
D) Actual
A(n) ________ is a document required to be filed by an equity security holder that
states the nature and amount of his or her interest against the debtor.
A) proof of claim
B) proof of interest
C) voluntary petition
D) involuntary petition
A ________ clause in an international contract designates which nation’s court has
jurisdiction to hear a case arising out of the contract.
A) forum-selection
B) treaty
C) foreign commerce
D) choice of law
In the United States, what recourse does an accused person have if he cannot afford a
private defense attorney?
A) He will have to spend his time in jail until he can collect enough money to afford
one.
B) A public defender will be appointed to the accused by the government for a nominal
fee.
C) He will have to defend himself when the trial starts.
D) The government will provide an attorney for the accused free of charge.
Which of the following is true of union security agreements?
A) Under a closed shop agreement, an employer hires workers who are not part of any
union.
B) Under an agency shop agreement, an employer only hires workers who agree to not
join any union.
C) An employee hired under a union shop agreement is represented by more than one
union.
D) Dues checkoff refers to the deduction of union dues and agency fees from
employees’ wages.
What is the period of copyright protection provided for individuals under the Copyright
Term Extension Act of 1998?
A) Individuals are granted 20 years of copyright protection, after which it has to be
renewed for a fee.
B) Individuals are granted copyright protection for their lifetime plus 70 years.
C) Individuals are granted 95 years copyright protection from the year of first
publication of the work.
D) Individuals are granted 120 years copyright protection from the year of creation of
the work.
________ is a type of ownership of real property that grants the owner the fullest
bundle of legal rights that a person can hold in real property.
A) Fee simple absolute
B) Life estate
C) Servient estate
D) Fee simple defeasible
Which of the following provisions is made by the Due Process Clauses?
A) No person shall be deprived of life, liberty, or property without due process of the
law.
B) No state can regulate foreign trade directly or indirectly without due process of the
law.
C) Motions for amendments to the constitution cannot be made without a majority in
the parliament.
D) Violation of freedom of speech makes the violator liable for immediate prosecution
with due process of the law.
A(n) ________ is a document filed by the original plaintiff to answer the defendant’s
cross-complaint.
A) rejoinder
B) answer
C) reply
D) plea
According to priority, which of the following claimants is the last to be paid after a
corporation’s assets have been liquidated?
A) creditors
B) common stockholders
C) preferred shareholders
D) bond holders
Which of the following best describes a partially disclosed agency?
A) an agent with multiple principals who do not know each other’s identities
B) a transaction in which the third party does not know the identity of the agent
C) a transaction in which the third party knows the agent, not the principal
D) an agent who discloses only the name of his or her principal in a transaction
Frank Carpenter, who runs a charity organization, has been faking his father’s signature
on his father’s personal checks and writing them in favor of the charity as donations. He
gets hold of the checks from his father’s personal assistant, Rhonda Mason, who is also
Frank’s friend and the charity’s trustee. After faking the signature, Frank gives the
checks to Rhonda to deposit in the bank. But unbeknownst to Frank, Rhonda routes
some of the check money into her own savings account. Frank’s father, Dawson,
realizes that money is being withdrawn from his account without his consent. He
suspects his estranged son, Frank, and in order to find out if Frank is involved, Dawson
secretly offers money to the financial accountant of the charity to divulge the charity
organization’s financial dealings. The accountant accepts the money and gives access to
the account books. After scrutinizing the financial records, Dawson realizes that Frank
has been swindling him of his money, and the charity itself was being swindled by
somebody from within. With this information, Dawson proceeds to file a suit against his
son. In the above scenario, what illegal activity did the financial accountant of the
charity partake in?
A) larceny
B) bribery
C) extortion
D) embezzlement
Where a partnership agreement provides for the sharing of profits but is silent as to how
losses are to be shared, ________.
A) losses are shared in the same proportion as profits
B) losses are shared in greater proportion than profits
C) profits are shared in greater proportion than losses
D) losses are absorbed by the partnership entity rather than borne by the individual
partners
In a(n) ________ franchise, the franchisor manufactures a product and licenses a retail
dealer to sell the product to the public.
A) processing plant
B) area
C) distributorship
D) chain-style
A dual-purpose mission is a situation that occurs when ________.
A) an agent works for two or more principals with conflicting interests
B) a principal requests an agent to run an errand when the agent is on his or her own
personal business
C) an agent works for more than two principals but has similar agency relationships
with all
D) an agent competes with the principal in a business with interests similar to the
principal’s business after their agency has ended
The act of negotiating contract terms between an employer and the members of a union
is known as ________.
A) mediation
B) arbitration
C) collective bargaining
D) litigation
What is nolo contendere in legal proceedings?
A) a plea by which the defense attorney sets out reasons as to why the case should not
go to trial
B) a plea where the accused agrees to the imposition of a penalty but does not admit
guilt
C) a plea by which the defense attorney exhibits evidences that the defendant is not fit
to stand for trial
D) a guilty plea where the defendant does not agree to the imposition of a penalty and
asserts innocence though there is sufficient evidence against the defendant
The process by which heated water or material is discharged into waterways, upsetting
the water’s ecological balance and decreasing its oxygen content as a result, is defined
as ________.
A) land pollution
B) radioactive pollution
C) air pollution
D) thermal pollution
Which of the following is an example of insider trading?
A) An employee uses material nonpublic information to make a profit by trading in the
securities of the company.
B) A manager purchases all the shares of a corporation available to the public.
C) A director purchases enough shares of a public company to gain a majority stake in
its management.
D) An employee sells his shares to another employee without notifying the company.
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
________ are employees of a corporation who are appointed by the board of directors
to manage the day-to-day operations of the corporation.
A) Corporate officers
B) Shareholders
C) Registered agents
D) Ombudsmen
Who is the plaintiff in a criminal lawsuit?
A) the government
B) the respondent
C) a private party
D) the victim
Throwing a lit match on the ground in the forest and causing a fire is a breach of
________.
A) appropriation
B) Good Samaritan law
C) the duty of care
D) res ipsa loquitur
Which of the following is an accurate statement regarding dissolution of a partnership?
A) A general partnership may be dissolved, while a limited partnership may not.
B) Just like a general partnership, a limited partnership may be dissolved and its affairs
wound up.
C) Dissolution of a general partnership is governed by federal law, while dissolution of
a limited partnership is governed by state law.
D) Dissolution of a limited partnership is governed by federal law, while dissolution of
a general partnership is governed by state law.
If a wage employee works 50 hours one week and 30 hours the next week, for how
many hours of overtime pay does the employer owe the employee?
A) 0
B) 10
C) 40
D) 80
The process by which the government can acquire private property for public use is
known as ________.
A) a remainder
B) constructive eviction
C) adverse possession
D) eminent domain
Uploading copyrighted material to an unauthorized website by a non-copyright holder
would constitute copyright infringement under the ________.
A) Digital Millennium Copyright Act
B) Berne Convention
C) No Electronic Theft Act
D) Copyright Term Extension Act
Intentional misrepresentation is commonly referred to as ________.
Outline the act of collective bargaining.
Monica told a prospective patient that a certain cosmetic surgeon had been banned from
practicing by the American Medical Council, but this is untrue. Is Monica liable for
prosecution? Why?
A tort in which the violation of a statute or an ordinance constitutes the breach of the
duty of care is ________.
What can a party to a lawsuit do if he or she is displeased with the trial court’s
judgment?
Distinguish between conditions and covenants.
Give an account of trademark dilution.
Administrative lawis a combination of substantive administrative lawand ________.
________ Act, also known as labor’s “bill of rights,” gives each union member equal
rights and privileges to nominate candidates for union office, vote in elections, and
participate in membership meetings.
A(n) ________ refers to a promise in which one person agrees to answer for the debts
or duties of another person.
Price fixing is a(n) ________ violation of Section 1 of the Sherman Act.
A(n) ________ is a member of a board of directors who is not an officer of the
corporation.
A(n) ________ is a clause in a contract which stipulates that the contract is a complete
integration and the exclusive expression of the parties’ agreement.
________ is a defense a defendant can use against a plaintiff who knowingly and
voluntarily enters into or participates in a risky activity that results in injury.
When the containers of a product are not tamperproof, this is a(n) ________.
An exemption from registration which states that securities transactions not made by an
issuer, an underwriter, or a dealer do not have to be registered with the Securities and
Exchange Commission (SEC) is known as a(n) ________ exemption.