State usury laws set a lower limit on the annual interest rate that can be charged on
certain types of loans.
Since a court reporter is necessary to transcribe deposition testimony, most depositions
are taken in court.
A thirty-five-year-old employee who is fired because his employer incorrectly believes
he is too old to do his job does not have a valid age discrimination claim under the Age
Discrimination in Employment Act.
Compliance with GAAPs and GAASs automatically relieve accountants of negligence
liability.
The “frolic and detour” rule states that an agent is liable to the principal for damages
resulting from the agent going on a frolic and detour.
In order for a common law marriage to be recognized, the parties must voluntarily
intend to be husband and wife.
The doctrine of reformation is a legal doctrine.
Tangible property represents rights that cannot be reduced to physical form, such as
stock certificates, certificates of deposit, bonds, and copyrights.
A voluntary bankruptcy proceeding is initiated by the creditor or creditors, and forces
the debtor into bankruptcy.
Administrative law judges interpret state limited liability statutes to decide disputes
between limited liability companies and their members.
Personal property consists of everything that is not real property.
Under the Revised Model Business Corporation Act, all corporate directors’ terms are
fixed at one year in length.
Some antitakeover statutes have been challenged as being unconstitutional for allegedly
violating the Fifth Amendment to the United States Constitution.
Females can propose marriage.
A state may not enter into a treaty with a foreign nation, even if the treaty does not
conflict with any other treaties, and even if it does not interfere with foreign commerce.
Improper delivery of goods does not affect who bears the risk of loss in a lease contract.
RICO stands for the Racketeer Influenced and Corrupt Organizations Act.
The power of the President to issue an executive order is derived from an express
delegation of power from the Constitution.
A sales contract that requires the seller to deliver the goods to the buyer’s place of
business or another specified destination is a destination contract.
Contracting parties may agree to exclude or modify the application of the United
Nations Convention on Contracts for the International Sale of Goods (CISG).
As established by the United States Constitution, the judicial branch of government
(consisting of the courts) has the power to interpret and determine the validity of the
law.
A mistake will never affect whether assent to a contract is genuine.
A “closely held,” or “close”, corporation is a corporation that operates only within its
state of incorporation.
UCC Article 2 defines a good as tangible things that are movable.
Because strict liability is a tort doctrine, privity does not apply so in most jurisdictions
even bystanders can recover under strict liability.
If the object of a contract becomes illegal after the contract is entered into because the
government has enacted a statute that makes it unlawful, the parties must still perform
their contractual obligations pursuant to the grandfather clause.
Under the UCC, if payment terms are not agreed on, then payment is due within 30
days of delivery of the goods.
Principals are bound by the unauthorized contracts of their independent contractors.
Business owners considering a strategic alliance should not be concerned that a
strategic alliance partner is a potential competitor, because that would breach the duty
of loyalty.
Securities issued by non-profit issuers are exempt from registration with the SEC.
Over one-half of the largest corporations in the United States have their articles of
incorporation filed in the state of Delaware.
The Equal Pay Act provides protection against discrimination based on sex.
Commercial impracticability allows discharge of a contract only if it is actually
impossible to perform.
Fixtures are the most common form of real property.
Express warranties must be in writing.
Revised Articles 2 and 2A now include provisions regarding electronic contracting.
Generally an offeree must accept an offer by an authorized means of communication.
Which of the following would not be an example of ethical fundamentalism?
A) basing your actions on the speeches made by Martin Luther King
B) modeling your life on the Boy Scout Code and Oath
C) looking to the Bible for advice when making a decision
D) reading five books on ethics and deciding to follow your heart and instincts because
you are confused and disappointed by what you read
E) forming your opinions based on parts of the Bible, the Torah and the Koran
What was the result in National Association for the Advancement of Colored People,
Newark Branch v. Town of Harrison, New Jersey, involving a claim that a residency
requirement for employment violated Title VII, in that it had a disparate impact on
African-Americans?
A) The Court ruled that a residency requirement can never have a disparate impact on a
protected category.
B) The Court ruled that the plaintiffs lacked evidence that the residency requirement
had a disparate impact on African-Americans.
C) The Court ruled that a socially-neutral rule was in place that did not violate Title VII.
D) The Court ruled that the plaintiffs had established that the residency requirement
constituted disparate impact race discrimination in violation of Title VII, and issued an
injunction against enforcement of the rule.
E) The Court ruled that the plaintiffs had established that the residency requirement
constituted disparate impact race discrimination, but refused to issue an injunction
against enforcement of the rule.
Which is true about how courts address equal protection cases?
A) If a law treats different groups differently, the court determines whether the
difference in treatment is justified using one of three different levels of scrutiny.
B) If a law treats different groups differently, the law will be invalidated.
C) If a law treats different groups differently, it will be acceptable so long as there is
adequate notice to the persons affected.
D) Laws that affect persons differently based on race, gender, or age will be invalidated,
while laws that affect persons differently based on other factors will be deemed
acceptable.
E) If a law treats a particular group more favorably than others, it will be acceptable,
but if a law treats a particular group less favorably than others, it will be invalidated.
Which of the following is one of the primary types of contractual conditions?
A) precedent
B) antecedent
C) conjectural
D) determinative
E) collateral
What was the result in Shoshone Coca-Cola Bottling Company v. Dolinski, in which the
plaintiff became ill after consuming a soft drink with a dead mouse in it and sued the
manufacturer of the drink?
A) The defendant won because the plaintiff could not explain how the mouse got in the
drink.
B) The defendant won because it had been as careful as possible in bottling the drink.
C) The defendant won because the plaintiff’s drink was the only drink in the applicable
lot or batch that was defective.
D) The plaintiff won because he could prove negligence on the part of the defendant.
E) The plaintiff won because the defendant was held liable under the doctrine of strict
liability in tort.
Which of the following is characteristic of both cashier’s checks and traveler’s checks?
A) requirement of a countersignature when used
B) usually available only in certain fixed denominations
C) must be certified before they can be negotiated
D) They are frequently issued by companies other than banks.
E) The same party serves as both the drawee and the drawer.
The ________ Act of 2002 was enacted by the United States Congress to bring more
transparency to securities markets and to eliminate conflicts of interests that previously
existed in the securities industry.
A) Sarbanes-Dodd
B) Sarbanes-Frank
C) Sarbanes-Oxley
D) Dodd-Frank
E) Dodd-Oxley
The doctrine by which a court can disregard the corporate entity and hold shareholders
personally liable for the corporation’s debts and obligations is called:
A) “piercing the corporate façade.”
B) “bursting the corporate veil.”
C) “rejecting corporate formalities.”
D) “piercing corporate formalities.”
E) “piercing the corporate veil.”
In Wells Fargo Credit Corporation v. Martin, what was the result when a paralegal
misread her instructions and bid lower on some foreclosed property than she was
supposed to bid, and someone else bought the property at auction?
A) The paralegal was allowed to bid again for her company.
B) The paralegal was allowed to take title to the land only if she matched the bid of the
highest bidder.
C) The person who made the highest bid, not the paralegal, was allowed to keep the
land.
D) The auction was voided and conducted again because of the unilateral mistake of the
paralegal.
E) The paralegal was allowed to bid again only because she presented proof by a
disinterested witness of her unilateral mistake.
The doctrine that would allow a party to rescind a contract because the other party used
force or threats in order to form the contract is:
A) duress.
B) fraud in the inducement.
C) undue influence.
D) the parol evidence rule.
E) fraud in the inception.
Influential Civil Codes include the following except:
A) the Napoleonic Code.
B) the Roman Corpus Juris Civilis.
C) the Mexican Civil Code of 1898.
D) the German Civil Code of 1896.
E) the French Civil Code of 1804.
As applied to a contract, the terms “bilateral” and “unilateral” are based on:
A) the number of parties in a contract.
B) the number of attempts made to form a contract.
C) the number of parties who make a promise in the formation of a contract.
D) the number of promises that are made in connection with a contract.
E) the number of attempts it took for a contract to be successfully performed.
There is an existing contract calling for Seller to deliver 1,000 widgets to Buyer. Buyer
says to Seller, “I would like to buy 100 additional units at the same price.” Seller
responds, “We promise to sell you the 100 extra units if we decide not to sell them to
other customers.” What is true regarding only the sale of the extra 100 units?
A) There is no consideration due to an illusory promise.
B) There is no consideration due to a preexisting duty.
C) There is no consideration due to a past consideration.
D) There is consideration due to promissory estoppel.
E) There is consideration due to a legal detriment on both sides.
Which of the following is true regarding obscene speech?
A) It cannot be prevented, but can be subject to time, place or manner restrictions.
B) Because the definition of obscene is so subjective, it cannot be restricted or
prevented.
C) Even though the definition of obscene speech is subjective, if speech is determined
to be obscene, it loses all constitutional protection.
D) Obscene speech and offensive speech receive the same degree of protection.
E) The U.S. Supreme Court has set out a clear definition of what speech is defined as
obscene and therefore unprotected.
Negotiators from which nations signed the North American Free Trade Agreement in
1992?
A) the United States and Canada
B) the United States and Mexico
C) the United States, Canada and Mexico
D) the United States, Mexico and Panama
E) the United States, Canada, Mexico, Guatemala and Panama
The Constitution reserves the right of the federal government to regulate interstate
commerce. This is an example of:
A) federalism.
B) an enumerated power.
C) a Supremacy Clause application.
D) equal protection.
E) nationalism.
The court may overturn the jury’s verdict if it finds jury bias or misconduct. This is
called a judgment ________.
A) n.o.t.
B) n.o.v.
C) n.a.v.
D) n.a.t.
E) n.a.y.
The term “GAAPs” stands for:
A) generally accepted auditing principles.
B) generally approved auditing principles.
C) generally acknowledged appraisal principles.
D) generally accepted accounting principles.
E) generally accredited assessment principles.
Betty issues a note payable to the order of John for $2,000. John properly indorses the
note, but raises the amount to $20,000, and negotiates it to Mary. On the due date, Mary
attempts to collect $20,000 from Betty. Betty refuses to pay. Assuming that Mary is a
holder in due course, which parties can Mary recover from in a lawsuit?
A) $20,000 from Betty, but nothing from anyone else
B) $2,000 form Betty, but nothing from anyone else
C) $2,000 from Betty, and $18,000 from John
D) $20,000 from John, but nothing from anyone else
E) nothing from anyone
In a mutual rescission, the parties to a contract:
A) agree to new terms.
B) involve a third party in the contract.
C) agree to undo and cancel a contract.
D) agree to perform a contract a second time under the same terms as the original.
E) agree to a set amount as damages.
Under the UCC, if an offer is received by mail, the acceptance:
A) must also be made by mail.
B) can be made by another means, but only if the offer so states.
C) is effective only once it is received by the offeror.
D) can be canceled by the offeree at any time during the period of a firm offer.
E) can be made in any commercially reasonable manner.
Which of the following is false regarding the National Labor Relations Board?
A) It is an administrative body.
B) It is comprised of five (5) members.
C) Members are appointed by the president of the United States and approved by the
United States House of Representatives.
D) It prevents employers and unions form engaging in illegal and unfair labor
practices.
E) It enforces and interprets certain federal labor laws.
A holder cannot qualify as a holder in due course if he or she has notice that the
instrument contains an unauthorized signature or has been altered or that there is any
adverse claim against or defense to its payment. This rule is commonly referred to as
the ________ doctrine.
A) promissory estoppel
B) due diligence
C) blue light
D) red light
E) learned intermediary
What is the purpose of a “choice of law” clause in an international contract?
A) to allow the plaintiff to choose which nation’s law will be applied to a dispute
B) to allow the defendant to choose which nation’s law will be applied to a dispute
C) to give the parties a chance to decide in which nation the lawsuit must be brought
D) to determine which nation’s law will apply in settling disputes that arise under the
contract
E) to determine whether a party must sue on the basis of law, or on the basis of equity
A government agency has been called in to interrogate prisoners in an attempt to stop
future terrorist attacks on the United States and her allies. If the use of unapproved or
unconstitutional methods is used to obtain information that may prove to save lives, the
government agencies actions best correspond to which school of jurisprudential
thought?
A) Analytical School
B) Law and Economics School
C) Command School
D) Historical School
E) Sociological School
Under the UCC, a contract is created when acceptance of the offer is ________.
A) when the offeree receives the acceptance
B) when the offeror receives the acceptance
C) when the offeror sends the acceptance
D) when the offeree sends the acceptance.
E) when the post office postmarks the acceptance
Peter paints Stephanie’s house by accident while Stephanie watches. She could easily
stop him but does not. Which of the following is correct?
A) A unilateral contract has been formed.
B) An implied contract has been formed.
C) A quasi-contract has been formed.
D) A formal contract has been formed.
E) No contract has been formed.
Officers of a corporation typically can have which types of agency authority?
A) express only
B) express and apparent only
C) express and implied only
D) implied and apparent only
E) express, implied and apparent
What is the chronological order for the major phases of the pretrial litigation process?
A) pleadings, discovery, dismissals and pretrial judgments, settlement conference
B) discovery, pleadings, settlement conference, dismissals and pretrial judgments
C) dismissals and pretrial judgments, pleadings, discovery, settlement conference
D) settlement conference, pleadings, discovery, dismissals and pretrial judgments
E) pleadings, settlement conference, dismissals and pretrial judgments, discovery
Which of the following is not one of the aspects of the implied warranty of
merchantability?
A) The goods are fit for the ordinary purposes for which they are used.
B) The goods are adequately contained, packaged, and labeled.
C) The goods are priced fairly, taking into account all relevant market conditions.
D) The goods are of such quality that they pass without objection in the trade.
E) The goods within each unit are of an even quality.