If the goods are delivered in a credit sale and the seller then discovers that the buyer
was insolvent, the seller has 10 days to demand that the goods be returned.
When the parties have not agreed in advance, courts must make the decision about
which court has jurisdiction and what law applies.
The Age Discrimination in Employment Act protects employees who are 40 and older
from age discrimination.
Usually, the grantor of a living trust is the income beneficiary to that trust.
A stipulation in an offer that says the acceptance must be by a specified means of
communication is known as an express authorization.
Amanda says to Josh, “I’ll pay you $30 if you mow my lawn tomorrow.” Josh says
nothing. If Josh doesn’t mow her lawn, Amanda can sue Josh for breach of contract.
A life tenant is treated as the owner of the property during the duration of the life estate.
Primary liability refers to the liability on a negotiable instrument that is imposed on a
party only when the party primarily liable on the instrument defaults and fails to pay the
instrument when due.
The doctrine of strict liability applies to sellers and lessors of products who are engaged
in the business of selling and leasing products.
Goods are considered to be in transit while they are in possession of carriers or bailees.
At least half of the jurors must agree before the accused is found guilty of the crime
charged.
Ethical fundamentalism dictates that people must choose the action or follow the rule
that provides the greatest good to society.
A licensee is the party to whom a license is granted.
The offeror is the party to whom the offer is made.
At the time of trial, each party submits to the judge a deposition that contains physical
evidence to support its side of the case.
The Supreme Court has applied the incorporation doctrine and held that most of the
fundamental guarantees contained in the Bill of Rights are applicable to state and local
government action.
Kantian ethics is also known as moral relativism.
Every party that signs a negotiable instrument is primarily liable on the instrument.
The IMF comprises more than 180 countries, of which 50 countries are elected and
represented on the board of directors.
If two products are substitutes for each other, they are not considered part of the same
line of commerce.
The burden of proof in a criminal trial is on the government to prove that the accused is
guilty of the crime.
Intellectual property rights are more subject to misappropriation than is tangible
property.
Individuals are restricted from registering domain names to use on the Internet.
The UCC provides that a contract is created when the offeror receives the acceptance.
The principal is not liable for tortious conduct of its employees committed while acting
within the scope of their employment as the employee may not have contracting
authority.
Even if the corporation agrees to be bound to the contract, the promoter remains liable
on the contract unless the parties enter into a novation.
The standard definition of what is a necessary of life does not include medical care.
The unconditional assignment of a contract right extinguishes all of the assignee’s rights
from the contract.
An anticipatory breach of contract excuses the nonbreaching party from mitigating
damages.
Employers must obtain a completed Form I-9 for employees based on specific
citizenship and national origin only.
Material alteration, extreme duress, forgery, and mental incapacity are examples of
personal defenses.
One of the benefits of a negotiable instrument is that it can be used as a substitute for
the assets owned by the drawer of the instrument.
A bank that pays a stale check in good faith is not allowed to charge the drawer’s
account.
In the United States, commercial disputes between U.S. companies and foreign
governments or parties can be brought only in the U.S. Supreme Court.
The attorney representing a debtor is subject to monetary fines and sanctions if there are
any factual discrepancies found in the debtor’s information.
A promise to refrain from doing an illegal act can support a contract.
On the international level, the U.S. Constitution gives more power to the state
governments than the federal government.
Strict liability is liability with fault.
Intellectual property is a term that describes property that is developed through an
intellectual and creative process.
Under the effects on interstate commerce test, the regulated activity does not itself have
to be in interstate commerce.
A justice who agrees with the outcome of a case but not the reason proffered by other
justices can issue a ________ opinion that sets forth his or her reasons for deciding the
case.
A) concurring
B) dissenting
C) unanimous
D) plurality
Which of the following Articles of the Constitution establishes the executive branch of
the federal government?
A) Article II
B) Article IV
C) Article III
D) Article I
Which of the following courts are the federal court system’s trial courts of general
jurisdiction?
A) U.S. district courts
B) U.S. Tax Courts
C) U.S. courts of appeals
D) U.S. courts of federal claims
Which of the following types of protection does the Fourth Amendment provide to U.S.
citizens?
A) protection against self-incrimination
B) protection against being tried for the same case twice
C) protection from unreasonable search and seizure by the government
D) protection from cruel and unusual punishment for a criminal defendant
Competing with the partnership without the permission of other partners violates a
general partner’s ________.
A) duty to inform
B) duty of loyalty
C) duty of care
D) duty of obedience
________ are the documents that are filed with the secretary of state to wind up an LLC
as of the date of filing or upon a later effective date specified in the articles.
A) Articles of limited liability partnership
B) Articles of termination
C) Articles of amendment
D) Articles of organization
Which of the following statements is true of nominal damages?
A) They are also known as compensatory damages.
B) Only damages above $1,000 can qualify as nominal damages.
C) Most courts favor nominal damages lawsuits.
D) Cases involving nominal damages are usually brought on principle.
Ordinances are codified laws that are issued by ________.
A) the President of the United States
B) the state legislature
C) Supreme Court judges
D) local government bodies
A ________ is a record that evidences both a monetary obligation and a security
interest in specific goods and software used in the goods.
A) chattel paper
B) citation
C) financing statement
D) document of possession
Which of the following is true of sex discrimination?
A) It is not the same as gender discrimination.
B) Sex discrimination applies only to women, not men.
C) Employment discrimination because of pregnancy is sex discrimination.
D) Sex discrimination is covered by Title II of GINA.
A group of students organizing a protest march would be an instance of ________
speech.
A) limited protected
B) prohibited
C) unprotected
D) fully protected
Anne, a shareholder of an insurance company, is unable to attend the shareholders’
meeting held by the board of directors of the company. In order to make her vote count,
she appoints Dexter, a friend, to attend the meeting and cast a vote in her name. This is
an example of a ________.
A) liability
B) proxy
C) dividend
D) scienter
________ is a type of personal defense where a wrongdoer makes a false statement or
misrepresentation to another person to lead that person to enter into a contract with the
wrongdoer.
A) Forgery
B) Discharge in bankruptcy
C) Fraud in the inducement
D) Extreme duress
Kenneth purchased a car from his local dealership, Quartent Cars. However, since the
car was not available in the color that Kenneth favored, the sales contract stipulated that
Kenneth could immediately pick up the car from a nearby warehouse it was housed in.
The warehouse was owned by Mr. Henderson. Kenneth received the document of title
for the car upon payment and presented it to Mr. Henderson around a week later. But
Mr. Henderson informed Kenneth that the car was damaged during a fire in the
warehouse. What role does Mr. Henderson fulfill in the contract?
A) the seller
B) the consignee
C) the bailee
D) the supplier
The WTO is headquartered in ________.
A) Paris
B) The Hague
C) New York City
D) Geneva
Which of the following statements is true of a testator’s signature on a will?
A) The testator’s signature must be obtained in the presence of the sole beneficiary as
the principal witness.
B) The will need not be signed by the testator if it was already attested by witnesses.
C) The use of nicknames and honorary titles to sign a will render it unenforceable and
invalid.
D) The testator’s signature must appear at the end of the will to prevent chances of any
fraud.
Bobby voluntarily enrolls in a skydiving course at OpenSkies, Inc., an adventure firm.
He signs a contract that relieves OpenSkies of liability. After receiving proper
instruction, he jumps from an airplane. Unfortunately, Bobby is injured when he could
not steer his parachute toward the target area while landing. He sues the parachute
center for damages. But the court found that the contract protected OpenSkies from
damages, as Bobby had voluntarily joined the course knowing all the risks involved.
What kind of contractual provision protected OpenSkies from having to pay Bobby
damages?
A) noncompete clause
B) exculpatory clause
C) duty of restitution
D) disaffirmance
Which of the following statements is true of a union shop agreement while hiring an
employee?
A) The employee must join the union within a certain time after employment.
B) The employee does not join the union but pays an agency fee.
C) The employee must be a skilled worker represented by more than one union.
D) The employee must be represented by more than one union.
The ________ oversees union elections, prevents employers and unions from engaging
in illegal and unfair labor practices, and enforces and interprets certain federal labor
laws.
A) NLRA
B) NLRB
C) AFL
D) CIO
Martha is about to indorse an instrument for transfer. However, she finds that there is
not enough room on the instrument for her to indorse. In this situation, Martha should
use a(n) ________ for the indorsement.
A) addendum
B) exhibit
C) allonge
D) codicil
Who is a beneficiary of a will?
A) a person assigned in a will to create a trust
B) a person allowed to transfer the testator’s legal title property to another person
C) a person designated in the will to receive the testator’s property
D) a person nominated in a living will to make all health care decisions in accordance
with the testator’s wishes
Which of the following statements is true about appellate courts?
A) Appellate courts cannot reverse a finding of fact made by the judge even if the
evidence contradicts it.
B) Appellate courts cannot reverse a finding of fact made by the jury even if the
evidence contradicts it.
C) Appellate courts permit brief oral arguments between attorneys.
D) Appellate courts cannot reverse the decision of a lower court.
Which of the following moral theories will help an anthropologist study ancient
societies with an impartial and unprejudiced mindset, especially when it relates to ethics
and customs followed by ancient societies to that being followed in present societies?
A) Rawls’s social justice theory
B) utilitarianism
C) Kantian ethics
D) ethical relativism
QuickClicks, an online advertising company makes a contract to purchase six
computers from Comptail, a local retailer, for $20,000. However, Comptail breaches the
contract by not delivering the computers on time. The next day, QuickClicks manages
to purchase six computers from another retailer for $18,000 and receives immediate
delivery. QuickClicks can bring a lawsuit against Comptail and recover ________
damages.
A) consequential
B) compensatory
C) nominal
D) liquidated
A court order that prohibits a person from doing a certain act is termed as a(n)
________.
A) rescission
B) reformation
C) injunction
D) restitution
Concreate Development requires architects to design its latest venture”a 64-storeyed
skyscraper. It makes a business arrangement with Excellent Architecture and acquires
four architects on contract for the ongoing project. This is an instance of ________.
A) licensing arrangement
B) franchise
C) limited partnership
D) joint venture
To which of the following placements of a negotiable instrument would transfer
warranties be applicable?
A) indorsement of the instrument
B) issuance of the instrument
C) presentment of the instrument
D) accommodation of the instrument
Calibrato Instruments contracts Stronghold Metals to purchase stainless steel in bulk to
manufacture tachometers. Stronghold Metals fails to transport the goods to Calibrato
Instruments on the delivery date. Which of the following rights can Calibrato
Instruments exercise in order to gain legal recourse?
A) right to recover purchase price
B) right to recover damages for nondelivery
C) right to recover any lost profits
D) right to reclaim goods
Which of the following actions renders all parties as discharged from liability to a
negotiable instrument?
A) when the instrument is presented for payment
B) when the signature of the indorser is intentionally struck out
C) when the instrument is accidentally destroyed or mutilated
D) when a drawee in good faith pays an unaccepted instrument in full to the holder
Mark and Jack work as clerks at the New Bank of North America, which they plan to
rob. In order to plan and execute the robbery, they procure the bank’s floor plans and
study the security arrangements. They also obtain weapons, in case force is required.
However, the police get information about the plan and arrest Mark and Jack before the
robbery is actually committed. Which of the following crimes have Mark and Jack
committed?
A) criminal conspiracy
B) extortion
C) money laundering
D) larceny
A religious organization employing members for its association requires its applicants
to be of the same religion, and modest in dress and grooming. Does the organization’s
requirement discriminate applicants of other religions?
Explain coinsurance clause in insurance policies with an example.
Describe the different effective dates of communication.
Compare and contrast the general warranty deed and the special warranty deed, and
discuss which deed offers a greater degree of protection to grantees.
Explain cumulative voting and its differences from noncumulative voting.
Explain Chapter 11 plan of reorganization.
A professional baseball player signs a three-year contract with a baseball team. Six
months into the contract, the player breaches the contract. Sighting this opportunity,
another team induces the player to join them. Under these circumstances, is the new
team liable to the first team for the tort that arises?
Analyze a principal’s duties toward an agent.
Discuss arguments for and against a delegatee’s liability to an obligee for
nonperformance or negligent performance.
Can a person with a voidable title transfer a good title to a buyer? If so, explain with an
example.
Describe the role of a corporate officer and its relation to the board of directors and the
corporation.
How is a jury selected for a trial?
Describe the parties to an ordinary check with the help of an example.
Explain the accession method of acquiring ownership with an example.
How can one determine whether a person is an independent contractor or an employee?
The Statute of Frauds require that any contract that transfers an ownership interest in
real property must be in writing to be enforceable. Discuss some other contracts that
transfer an ownership interest in land and must be in writing under the Statute of
Frauds.
Naomi and Melanie form an LLC. They contribute equal amounts as capital. However,
when the LLC makes $100,000 in profits, Naomi receives $25,000 and Melanie
receives $75,000. When the company incurs a loss of $20,000 the next year, they share
the losses equally. Under what circumstances can such inequitable distribution of the
profits and losses be made?
How are the assets of a partnership concern distributed upon its dissolution and winding
up?
How can a court declare a marriage with a valid license nonexistent? What happens to
the children born of such a marriage?