Even non-employees can violate insider trading rules.
A contract that has not been performed by both sides is called an executed contract.
Shareholders may agree among themselves as to restrictions on the transfer of shares.
The supramajority voting requirement is often required to approve mergers,
consolidation, or the sale of substantially all the assets of a corporation.
A contract can be viewed as private law between the parties to the contract.
Forty-six (46) states recognize tenancy by the entirety.
The legality of defensive strategies in fighting a hostile takeover is examined using the
“business judgment” rule.
If the debtor challenges an involuntary petition, a trial is held to determine whether an
order for relief should be granted.
The “liquidation preference” of preferred stock means that preferred shareholders have
the right to be paid before common shareholders in the event of a corporation’s
dissolution and liquidation.
The goal of the UPA was to establish consistent partnership law throughout the United
States.
A party may not rescind a contract if there has been a mutual mistake of a past or
existing material fact.
The Electronic Communications Privacy Act provides that stored electronic
communications may be accessed without violating the law by the party or entity
providing the electronic communication service.
Often, disparate impact discrimination is proven through statistical data about the
employer’s employment practices.
Employees may only enter into contracts that are within the scope of their employment.
An administrative law judge’s decision is published in a pro forma decree.
Alimony and child support are not dischargeable under Chapter 13.
Very few trial court decisions are reversed, because most findings of fact are supported
by the evidence.
The “battle of the forms” refers to the situation where a merchant buyer and merchant
seller each use its own standard form contract in the contract formation process, and the
law must determine which, if either, controls.
Laws that prohibit discrimination in employment are examples of the “promoting social
justice” function of the law.
Joe and Mary are renting an apartment, and have six children. After three years they
move, and the landlord discovers that the rugs are worn out and that there are random
scuff marks on many walls, although there are no holes in the walls. The landlord can
replace the rugs and have the apartment painted and then force Joe and Mary to pay for
the repairs, due to a violation of their duty not to commit waste.
Generally, a will must be on approved legal paper to be valid.
Generally, when a sales contract has not been breached and it is a destination contract,
the seller is required to replace any goods lost in transit.
All classes of common stock must have voting rights.
Corporations can be created only pursuant to the laws of the state of incorporation.
A person injured by a Racketeer Influenced and Corrupt Organizations Act violation
can bring a civil action against the violator and recover treble damages, but only if the
defendant has already been criminally convicted in connection with the securities fraud.
If a seller or lessor of a good is a merchant with respect to goods of that kind, the sales
contract or lease contract contains an implied warranty of merchantability of the good,
unless this implied warranty is properly disclaimed.
Courts have held contracts to be contrary to public policy if they have a negative impact
on society or interfere with the public’s safety and welfare.
Each website has a unique online address.
Every corporation must have a registered office and registered agent, and both must be
identified in the articles of incorporation.
For their rulings to be valid, arbitrators must be members of the American Arbitration
Association.
A party who requests assurance of performance for a commercially reasonable reason
remains obligated to perform its own obligations even if adequate assurance is not
received from the other party.
Abstractions and scientific principles cannot be patented unless they are part of the
intangible environment.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 has been
praised by many businesses, banks, and credit card issuers.
The Securities and Exchange Commission was created as part of the Securities Act of
1933.
Written disclaimers must be ________ displayed to be valid.
A) innocuously
B) partially
C) prudently
D) inferentially
E) conspicuously
Which of the following is generally true about provisions in a contract under the UCC
that provide specific remedies?
A) These specific remedies are always in addition to those provided by the UCC.
B) These specific remedies are unenforceable because the UCC remedy provisions
control.
C) The general UCC remedies are also available unless the contract states that the
contract remedies are exclusive.
D) The specific contract remedies will be considered to be unconscionable.
E) Specific remedies are only available if nonmerchants are involved.
Which of the following is true regarding unemployment compensation?
A) Congress established an unemployment compensation program in 1920.
B) All unemployment compensation laws are federal laws.
C) Employees pay unemployment taxes.
D) Workers who have been fired because of inappropriate conduct may receive
unemployment benefits.
E) To collect benefits, applicants must be able and available for work, and actively
seeking employment.
Hubert U. Masterson, IV is the president of a Buzzer, Inc., an automobile manufacturer.
Hubert is concerned about the possibility of shareholders suing him for his executive
decision-making regarding the continued production of large sport-utility vehicles that
average ten miles per gallon, at a time when gasoline prices are at record highs. Hubert
urges the company to purchase insurance to guard against his potential personal liability
to shareholders in the context of his executive decision-making. If the company agrees
to purchase insurance for William, what type of policy should it consider?
A) business interruption insurance
B) directors’ and officers’ liability insurance
C) professional malpractice insurance
D) key-person insurance
E) product liability insurance
Which of the following is false regarding the Family and Medical Leave Act?
A) The act is not a federal law, but it has been adopted by over half of the states.
B) To be covered by the act, an employee must have worked for the covered employer
for at least one year, and he or she must have performed more than 1,250 hours of
service during the previous twelve-month period.
C) Employers are required to provide up to twelve weeks of leave for a covered
employee during any twelve-month period.
D) Leave under the act is unpaid leave.
E) Leave because of the birth of a child cannot be taken intermittently, unless the
employer agrees.
A ________ must be filed within a prescribed time after judgment is entered (usually
within 60 or 90 days).
A) directed verdict
B) declaratory verdict
C) summary judgment
D) notice of appeal
E) stay of execution
Which of the following is not one of a common carrier’s traditional exceptions to
liability for goods in its possession?
A) damage caused by an “act of God”
B) damage caused by the act of a “public enemy”
C) damage caused by an act of the shipper
D) damage caused by an act or event not foreseeable by the common carrier
E) damage caused by the inherent nature of the goods
You, your father and your sister are rock climbing when there is a accident. The three of
you are now dangling from a single rope attached by a single came to the rock face. The
cam is slipping due to the combined weight of the three of you. If nothing is done, all
three of you will die. You are in the middle and your sister is above you. If your father
doesn’t have a knife and begs you to cut the rope but you can’t because your religion
teaches you that taking a life for any reason is wrong, what ethical theory are you
exhibiting?
A) fundamentalism
B) moral minimum
C) social justice
D) duty ethics
E) utilitarianism
Sarah agrees to paint John’s house for $5,000. After Sarah finishes the job, John
complains that it was not done correctly. After much discussion, they agree that the
contract will be satisfied if John gives Sarah $4,000 and a certain diamond necklace.
Which of the following statements is true concerning this situation?
A) This is an accord and satisfaction; if John fails to perform, Sarah can sue only for the
$4,000 and the necklace.
B) This is an accord and satisfaction; if John fails to perform, Sarah can sue only for the
$5,000 originally promised.
C) This is an accord and satisfaction; if John fails to perform, Sarah can sue to enforce
either the original $5,000 or the $4,000 and the necklace.
D) This is a novation; if John fails to perform, Sarah can sue to enforce either promise.
E) This is a novation; only the last promise can be enforced.
Which of the following is true about statutes of limitation and statutes of repose?
A) Statutes of limitation, but not statutes of repose, set time limits on bringing legal
actions.
B) Neither type of statute applies in the event of serious injuries.
C) These statutes are federal law and apply nationwide even to state law actions.
D) A statute of repose requires that a claim be brought within the specified number of
years after the product was originally sold.
E) A statute of repose provides an unlimited statue of limitation.
Andre has made a statement that the average person would realize is puffery. Andre is
guilty of:
A) nothing.
B) innocent misrepresentation.
C) undue influence.
D) duress.
E) fraud.
When assets are left to a beneficiary who has died before the testator, and that
beneficiary’s share is given to the descendants of that deceased beneficiary, what type of
distribution is this?
A) per stirpes
B) contingent
C) per capita
D) intestate
E) per abatement
An express agency requires:
A) a written agreement between the principal and the agent.
B) an oral or written agreement between the principal and the agent.
C) no agreement, if the conduct indicates an implied agreement.
D) an ongoing arrangement for a reasonable period of time.
E) an agreement that the agent is exclusively responsible for the principal’s business
and/or personal affairs.
Evidence obtained as a result of an illegal or unreasonable search and seizure is
considered:
A) fire from the burning bush.
B) fire from the burning tree.
C) poison of the venomous snake.
D) fruit of the dying shrub.
E) fruit of the poisonous tree.
Which of the following best describes a will codicil?
A) A will codicil revokes an existing will.
B) A will codicil is a modification to a will that does not need all of the formalities of a
will, so long as the required formalities were followed in executing the original will.
C) A will codicil is an instrument that names the testator.
D) A will codicil is a modification to an existing will that must follow all of the
formalities of a will.
E) A will codicil is an order of a probate court to distribute the property of the testator.
In which of the following circumstances has acceptance NOT been made?
A) The delivery of the goods has been made and the buyer signifies the goods are
non-conforming, but states they will not return them.
B) An order is placed with the Seller and the Seller immediately ships the goods.
C) The delivery of the goods has been made and the buyer fails to reject the goods
within a reasonable time.
D) A seller sends an offer via e-mail and the buyer responds by mailing a letter of
acceptance.
E) A buyer places an order and the seller ships non-conforming goods.
If a farmer takes some grain to a storage facility and later returns to retrieve an equal
quantity of grain that is not the same grain placed in storage, the farmer has acquired
ownership of the retrieved grain by:
A) succession.
B) production.
C) accession.
D) mixture.
E) confusion.
Which of the following is true about the American with Disabilities Act?
A) It affects only the employment of persons with disabilities.
B) It clearly sets limits and requirements relevant to employers.
C) It not only prevents discrimination based on disabilities, but employers can be
required to incur costs in order to accommodate disabled individuals in their jobs.
D) It requires an employer to ask about an applicant’s disability, in order for the
employer to know whether the applicant is covered.
E) It requires employers to mandate physical examinations of job applicants, so that
employers will be aware of any physical limitations certain jobs could aggravate.
With regard to the elements of negligence, foreseeability is most directly related to
which of the following?
A) the duty of care
B) breach of the duty of care
C) the plaintiff’s injury
D) actual cause
E) proximate cause
An administrative agency can adopt a rule or regulation, a(n) ________ function,
prosecute a violation of the statute a(n) ________ function, and adjudicate the dispute
a(n) ________ function.
A) executive; legislative; judicial
B) judicial; executive; legislative
C) legislative; executive; judicial
D) judicial; legislative; executive
E) executive; judicial; legislative
Flexibility in the law most directly makes the law:
A) static.
B) consistent.
C) adaptable.
D) predictable.
E) accountable.
Which of the following requires the seller to arrange to ship the goods and put the
goods in the carrier’s possession and the seller bearing the expense and risk of loss until
the goods are placed in the carrier’s possession?
A) F.A.S.
B) C.I.F.
C) F.O.B. point of shipment
D) F.O.B. place of destination
E) S.H.P.
Under agency law, the legal significance of a “frolic and detour” is that:
A) an employee can be liable to an employer if the frolic and detour is not authorized.
B) it can determine if an employee is liable on a contract made on the employer’s
behalf.
C) it can determine whether someone working for a business is an employee or an
independent contractor.
D) it can determine whether an employer is liable for the negligence of an employee.
E) it can determine whether an employee is liable for torts he commits on the job.
In most cases, following a decision by the Circuit Court of Appeals:
A) the case cannot be appealed further.
B) either party has a right to have the Supreme Court review the merits of the case.
C) either party can request that the Supreme Court review the merits of the case, but the
Supreme Court denies this request in most cases.
D) either party can request that the Supreme Court review the merits of the case, with
the request being granted unless the Circuit Court of Appeals decision was clearly
correct.
E) the Circuit Court of Appeals decision must be reconfirmed by the District Court
where the case was originally tried.
Intellectual property falls into a category of property known as ________ rights.
A) tangible
B) intangible
C) tertiary
D) conditional
E) unconditional
When an appellate court receives a case appealed to it, it will:
A) retry the case with a new jury.
B) review the jury’s verdict to see if the appellate court judges would have reached the
same result.
C) retry the case with the appellate court judge acting as the jury.
D) review the record of the trial court so see if there were any errors of law made by the
judge.
E) review the record to see if it would have made the same decision as the jury.
What are the two general classifications of air pollution sources under the Clean Air
Act?
A) clean and dirty
B) point and nonpoint
C) mobile and stationary
D) attainment and nonattainment
E) thermal and non-thermal
Stop- payment orders:
A) must be in writing in order to be effective.
B) may be oral, but are effective for only fourteen days unless confirmed in writing
within the fourteen- day period, in which case they will be effective for six months.
C) are effective as long as the account remains open, if the order is in writing.
D) are effective for six months, whether oral or in writing.
E) are ineffective, unless the customer’s account with the bank specifically allows such
orders.
While attending a baseball game cheering for the home team, a fan of the other team
sneaks up behind Jack and hits Jack on the head with a hard piece of pizza crust,
injuring Jack. Jack has no idea he is about to be hit and is severely embarrassed when
his friends see that he was injured by a pizza crust. Which of the following torts has the
fan committed?
A) assault
B) battery
C) assault and battery
D) battery and negligent infliction of emotional distress
E) assault, battery, and negligent infliction of emotional distress
Which of the following is true about the par value of common stock?
A) It determines the market value of the shares.
B) It is usually the initial offering price of shares.
C) The Revised Model Business Corporation Act has eliminated the concept of par
value.
D) Corporations often set a high par value in order to increase the attractiveness of their
stock.
E) Par value represents the minimum price at which shares of stock can be traded after
they are initially issued.
In a patent infringement case, which of the following could not be obtained in a civil
lawsuit?
A) damages that are equal to a reasonable royalty rate on the sale of the infringed item
B) an injunction preventing the infringer from such action in the future
C) liquidation of the infringer’s business
D) an order requiring the destruction of the infringing articles
E) damages for loss of customers
The words “agreement” and “________ ” are often used interchangeably.
A) invitation to negotiate
B) offer
C) acceptance
D) contract
E) solicitation
Jane and Joan decide to open a plumbing business. Both contribute money to the
business, but because Jane has expertise in plumbing, Joan allows Jane to make all the
management decisions. Joan will not participate in much of the day-to-day operations,
but could do so if she wanted to. Jane and Joan will split net income equally. Jane and
Joan make no filings associated with this business. This enterprise is:
A) a general partnership.
B) not a general partnership, because there is no association of two or more people.
C) not a general partnership, because they are not carrying on a trade or business.
D) not a general partnership, because they do not co-own the business.
E) not a general partnership, because Joan does not have management responsibilities.