Under the Americans with Disabilities Act, a person with a disabling illness
a. is not considered disabled once the illness is being managed with medicines.
b. is not considered disabled unless there is no known cure.
c. is considered disabled, but only at times when hospitalization is required for
treatment.
d. is considered disabled, even if the illness is under control.
Buyer Bob breaches his contract for the sale of goods with Seller Suzie. Suzie still has
possession of the goods at the time of the breach. Suzie can refuse to deliver the goods
and
a. resell the goods and sue Bob for the total contract price.
b. either resell the goods or sue, but not both.
c. resell the goods and sue for any loss on the sale plus incidental damages less
expenses saved.
d. resell the goods and sue only for incidental damages.
Who owns and controls an accountant’s working papers?
a. The client, in practice
b. The IRS
c. The accountant, in theory and practice
d. The client, in theory
The advantage to an S corporation is
a. its offering of multiple classes of stock.
b. its treatment of shareholders for income taxation purposes.
c. its ability to attract an unlimited number of shareholders.
d. its ability to have partnerships and corporations invest as shareholders.
Judge Zellar was asked to decide if a plaintiff could see the interrogatories procured by
the defendant. The judge viewed the documents alone and decided that they should be
made available to the plaintiff. The judge made
a. an in camera inspection.
b. a motion to compel answers to interrogatories.
c. a request for admission.
d. a request for the production of documents.
The Federal Trade Commission promulgated Telemarketing Sales Rules regulating the
activities of telemarketers. One of the rules prohibits telemarketers from calling a
person’s residence at any time other than between 8:00 a.m. and 9:00 p.m. This
legislative rule has the effect of a statute.
a. True
b. False
Dan has a site on eBay where he sells various items. In order to get the most money for
the items he sells, Dan often bids on his own goods in order to drive up the price. Dan is
guilty of
a. phishing.
b. hacking.
c. shilling.
d. nothing; this is an acceptable practice.
The UCC is federal legislation enacted by Congress.
a. True
b. False
Assume that in December 2006, the Environmental Protection Agency (EPA) filed an
administrative complaint against Marlin Firearms Co. alleging that the company
exceeded chromium emissions limits. The EPA proposed a $257,162 fine. Which
statement is correct concerning the administrative agency adjudication?
a. A jury decides the matter.
b. The Federal Rules of Criminal Procedure govern the admissibility of evidence.
c. The losing party has a right to appeal.
d. The parties are not represented by attorneys.
If a person accepts the benefits of an unauthorized transaction, or fails to repudiate it,
then he is bound by the act as if he had originally authorized it.
a. True
b. False
What is the major distinction between executive and independent agencies?
a. Executive agencies govern business issues while independent agencies regulate
individual matters.
b. The President has greater control over executive agencies.
c. The Administrative Procedure Act regulates independent agencies but not executive
agencies.
d. Subpoenas may be issued by independent agencies; executive agencies do not have
subpoena power.
Which of the following is NOT a stakeholder?
a. a business competitor.
b. shareholders.
c. employees.
d. customers.
Luella just purchased 5 shares of common stock in TriColor, Inc. for $250. Luella has
the right to
a. manage the day-to-day business of the corporation.
b. set executive compensation.
c. require that a proposal be placed in the companys proxy statement to be voted on at
the shareholder meeting.
d. vote to elect directors.
Which of the following parties has primary liability on a draft?
a. The drawee
b. The maker
c. The drawer
d. The indorser
Article 9 of the UCC only applies to goods and does not include intangibles such as
accounts or chattel paper.
a. True
b. False
Adam decided to play a practical joke on Linda, a co-worker. As Linda was leaving the
office one night, Adam, wearing a mask, stepped out from behind some bushes. He
pointed a handgun made out of licorice at her and demanded her purse. He then pushed
the candy gun to her head and told her if she told anybody he’d kill her. Linda was very
scared during the whole incident. She did not think it was funny when Adam pulled the
mask off and took a bite out of the gun as he gave her the purse back. Did Adam
commit the tort of intentional infliction of emotional distress?
a. Yes, as his conduct was intentional.
b. Yes, but only if Adam intended to cause Linda serious emotional distress.
c. No, since he was only playing a practical joke.
d. No, since Linda was not physically hurt by Adam.
Eminent domain refers to the government’s ability to take private property for public
use.
a. True
b. False
If Jane persuades Linda to buy her horse by telling Linda that the horse runs “like the
wind,” then Jane’s statement is
a. fraud.
b. reckless misrepresentation.
c. a unilateral mistake.
d. puffery.
The Clayton Act prohibits anti-competitive mergers.
a. True
b. False
Conversion means that someone has stolen an instrument or a bank has paid a check
that has a forged indorsement.
a. True
b. False
Section 16 of the 1934 Act prohibits short-swing trading on the part of officers,
directors and controlling shareholders who
a. own more than twenty-five percent of the company.
b. are also on the board of directors of the company.
c. own more than ten percent of the company.
d. trade their shares in order to invest in another company.
Laurel Speckle received a check from State University. She indorsed the check as
follows: “For Deposit only, /s/ Laurel Speckle.” Laurel’s indorsement is a(n)
a. blank indorsement.
b. special indorsement.
c. restrictive indorsement.
d. improper indorsement.
Regarding contracts, in seeking to determine whether there is a meeting of the minds,
the courts look to how a reasonable person would objectively view the language or
actions of the parties.
a. True
b. False
Hayden owes Luther $5000. Hayden will only be able to pay this debt if he is able to
sell his one-year-old Harley motorcycle, valued at $20,000. Hayden writes a check to
Luther that reads, “Payable to the order of Luther the sum of $5000 as soon as my
Harley motorcycle sells for a reasonable amount.” This check is
a. negotiable, assuming Luther accepts delivery of the check.
b. negotiable if Hayden also includes a date that he expects the motorcycle to sell.
c. non-negotiable because it does not state a definite amount of money.
d. non-negotiable because the check is conditional.
Bob, a weak swimmer, ignored warning signs in a recreational swimming area and went
into deep water. He soon grew tired and realized that he could not make it back to
shore. Seeing Kelly, he cried out for help. Kelly, however, ignored the pleas. Bob was
finally saved by Dorothy, but suffered brain damage from being submerged during the
ordeal. Bob now sues Kelly for negligence for failing to try to save him. Bob will:
a. prevail because society places a duty on people to help each other and Kelly breached
this duty, resulting in Bob’s injury.
b. lose because Kelly had no legal duty to rescue him.
c. lose even though Kelly had a legal duty to save him, since Bob will not be able to
prove that Kelly’s failure to act was the proximate cause of his injuries.
d. lose because a reasonable person could not have foreseen that someone in a
recreation area could not swim well.
The Fourth Amendment to the Constitution provides Robert, an employee of Mattax
Paper Co., due process protection from being fired without a hearing by a neutral fact
finder.
a. True
b. False
Either party may demand rescission of a fully executed oral contract if it was required
to have been in writing under the statute of frauds.
a. True
b. False
Congresswoman Sloan introduced a bill in the House of Representatives. If the bill is
approved by the House committee specializing in that subject, the bill will go to
a. a Senate committee specializing in the subject matter of the proposed legislation.
b. the full House.
c. a Conference Committee made up of representatives of both the House and Senate.
d. the voters of her state for approval.
Laurie is incorporating her business. Lauries home state is Wisconsin. Business will be
conducted in California, Michigan, Pennsylvania, and Virginia. Laurie
a. must incorporate the business in Wisconsin, the home state.
b. must incorporate the business in Wisconsin, California, Michigan, Pennsylvania and
Virginia.
c. must incorporate in Delaware.
d. can incorporate the business in any state.
The concept of stare decisis focuses most on
a. predictability.
b. flexibility.
c. legislative intent.
d. change.
Francesca cannot serve as a trustee in a bankruptcy case because she is not a lawyer.
a. True
b. False
Ed was an independent owner of a chain of TV stores. He successfully got customers
into his store by cutting his prices on widely advertised name-brand products in order to
sell other products for which he received a bigger profit. When the manufacturers of
three of the name-brand products discovered Ed’s actions, they agreed secretly to stop
selling him their TVs. The three manufacturers
a. are doing nothing illegal, as they did not get Ed to agree to anything.
b. are free to agree not to deal with Ed since the public can go elsewhere and will not be
hurt economically.
c. can choose either as a group to deal or not to deal with any retailer they want.
d. are engaged in a rule of reason violation of the antitrust laws if their action harms
competition.
An executor who is related to the testator is not entitled to compensation.
a. True
b. False
Fraudulent, but not innocent, misrepresentation permits the injured party to rescind a
contract.
a. True
b. False