If Owen refused to testify on the premise that the information he would divulge would
self-incriminate him, he can legally do so under the Fifth Amendment.
Under the doctrine of contributory negligence, injured parties are not prevented from
recovering damages even if they were partly at fault.
The law dealing with warranties is intended to protect the general public, but it has also
has the effect of limiting the seller’s obligations and responsibilities.
If a case of sexual harassment winds up in court, an employer can attempt to defend
against the lawsuit by demonstrating that there was an effective sexual harassment
program was in force.
Arson includes the various forms of theft, robbery, hijacking, embezzlement, and
shoplifting.
Administrative agencies rarely regulate economic matters.
Sulfur emissions cause pollutants to be discharged into bodies of water.
Items of personal property added to real property are fixtures.
Conditions in a lease may specify certain restrictions on how property may be used.
An individual or business that owes money is said to be a creditor.
Disaffirmance may be implied by the acts of the person who has reached legal age and
wishes to disaffirm.
Employers need not exercise care when asked to provide references for employees who
are currently working for them or who have worked for them in the past.
Persons of unsound mind are considered emancipated.
An enforceable contract results from an agreement that imposes a legal obligation.
Many legal obligations are based on moral obligations, but not all moral obligations are
legally enforceable.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 does not allow
the bankruptcy court to disallow a petition for a Chapter 7 bankruptcy if the individual
filing for bankruptcy earns an income that is too high to meet the standards of the
means test.
Mistakes relating to contracts may be concerned with the nature of the subject matter or
the quality of the subject matter.
In order to ensure the negotiability of commercial paper, the UCC assumes as one of the
warranties in every endorsement that all prior parties were qualified to enter into a
legally binding contract.
One factor in the Internal Revenue Services factors test for determining whether a
worker fits the status of an employee or an independent contractor is the workers title.
When a partner acts with either actual or apparent authority, all other partners are not
liable for his or her acts.
Unreasonable risk of injury and death associated with consumer products cannot be
achieved by governments’ providing safety information to the public or developing
voluntary or mandatory standards.
Both architects and engineers are subject to lawsuits for negligence if their work results
in injury to parties with whom they have contracted or to third parties.
It is not a crime under the ECPA to disclose to a third party the contents of stored
computer information that has been obtained without permission.
A number of critics allege that certain administrative agencies have been “captured” by
the enterprises they were created to regulate.
Computer programs and computer games may not be copyrighted under existing law.
The Uniform Commercial Code has been adopted, at least partly, by all 50 states.
Duty of care means that a director has a legal and ethical obligation to act diligently and
prudently in conducting the affairs of the corporation.
Chapter 15 provides a framework for bankruptcy cases in which foreign countries are
involved.
Private franchises are another form of legal monopoly which are sometimes called
natural monopolies.
In a product liability case, retailers, wholesalers, and manufacturers of component parts
in the distribution channel cannot be liable for product related injury.
Acceptance of a public offer by anyone, as indicated by the performance of the act,
does not result in an enforceable contract.
A divisible contract is made up of two or more parts, each part being independent of the
others.
The duty of loyalty means that a director has no legal or ethical obligation to administer
to the affairs of the corporation with personal integrity, honesty, and candor.
According to the doctrine of employment at will, only the employer, and not the
employee, may choose to terminate the employment relationship at any time.
Insurance policies are exempt from standard principles of contract law.
The Uniform Commercial Code states that the seller must use formal words such as
“warrant” or “guarantee” in order to create an express warranty.
A secured debt is a loan for which a specific asset is used as collateral, or pledged.
Under the Securities Act of 1933, the issuing company may not provide prospective
investors with a prospectus.
The supremacy clause is a provision of the United States Constitution that_____.
A.grants Congress the power to regulate trade with foreign nations, and among the
several states, and with the Indian tribes.
B.mandates that each state respect and enforce both the judgments awarded by courts in
other states, and the statutes and case law of other states.
C.requires state judges to follow federal law in the event of a conflict with state law.
D. prohibits the states from discriminating on the basis of race or national origin.
One of the benefits of a trust is that it allows the legal title of property to be separated
from the benefits of:
A.partnership.
B.ownership.
C.revocation.
D.enjoyment.
If a drawer of a check has the bank certify it, he or she remains _________for payment
of the check until the holder can reasonably present it for payment.
A.partially liable
B.totally liable
C.not liable
D.conditionally liable
The major advantage of a corporation is the fact of ____________to shareholders.
A.restricted authority
B.unlimited credibility
C.limited liability
D.unrestrained reliability
The act of signing another person’s name to a credit card charge slip without his
permission is an example of:
A.perjury.
B.forgery.
C.false pretenses.
D.robbery.
In an effort to ensure that the federal government itself does not contribute to the
destruction of the environment, Congress passed the:
A.Clean Air Act.
B.Environmental Protection Agency Act.
C.National Environmental Policy Act.
D.Clean Water Act.
All of the following are personal defenses against payment of commercial paper,
EXCEPT:
A.lack of consideration.
B.fraud, duress, and undue influence.
C.material alteration.
D.non-delivery of an executed instrument.
Jack promised to pay his nineteen year-old nephew $300 on the nephews twenty-second
birthday if the nephew refrained from smoking cigarettes until he graduated from
Western State College. This contract is legal and illustrates the promise of:
A.pledge or subscription.
B.forbearance as consideration.
C.general release.
D.implied contract.
A promise to repay someone for a benefit after the benefit has been received is known
as:
A.a pre-ordained contract.
B.a pre-meditated contract.
C.prior consideration.
D.past consideration.
The element of consideration in a contract refers to the:
A.competence of the parties.
B.purpose of the contract.
C.parties’ exchange of promises.
D.form of the contract.
A codicil is prepared to:
A.execute a warranty deed.
B.execute a quit claim deed.
C.revoke, alter, or revise a will.
D.revoke, alter, or revise a gift causa mortis.
There are ________ general patterns in the executive organization of an administrative
agency.
A.one
B.two
C.three
D.four
When commercial paper on which the signature of the maker or drawer has been
forged, the person liable is the:
A.acceptor.
B.holder in due course.
C.drawer.
D. endorser.
The legal term used in a case where a contract has largely been completed, and only
small details remain unfinished, is:
A.substantially performed.
B.mostly performed.
C.performed by tender.
D.performed by mutual agreement.
The monetary currency of the European Union is the:
A.pound.
B.dollar.
C.krone.
D.euro.
An agreement in which the employee agrees not to work in similar employment is
known as a:
A.debt covenant.
B.silent covenant.
C.restrictive covenant.
D.heritage covenant.
In the case of minors’ contracts, silence or inaction is the basis for a(n) ________
contract becoming a valid, enforceable contract through ratification.
A.void
B.illegal
C.legal
D.voidable
An endorsement to which words have been added that limit the further endorsement of
the instrument, such as “for deposit only,” is a:
A.blank endorsement.
B.special endorsement.
C.restrictive endorsement.
D.qualified endorsement.
An injured party who can successfully prove misrepresentation only has the remedy to:
A.claim specific performance.
B.cancel the contract.
C.accept the contract.
D.bring suit for damages.
The federal government and many states have statutes that protect whistleblowers from:
A.retaliation.
B.rebuke.
C.appraisal.
D.indictments.
An endorsement where the name of the payee is written by the payee on the back of a
negotiable instrument is a:
A.blank endorsement.
B.special endorsement.
C.restrictive endorsement.
D.qualified endorsement.
If a completed negotiable instrument comes into the possession of an immediate party
(the payee indicated on the instrument) before the maker or drawer has delivered it,
then the:
A.payee cannot collect on the instrument.
B.payee can collect on the instrument.
C.payer only can collect on the instrument.
D.drawer only can collect on the instrument.
To avoid legal action either as an individual or as an employee, each person must
exercise reasonable care and good judgment to avoid:
A.causing injury to others.
B.curtailing others’ rights.
C.breaching duties.
D.payment of compensation.
Under federal law, employees have the right to form, join, and assist a labor union
through representatives of their own choosing and the right to bargain:
A.immediately.
B.advertently.
C.individually.
D.collectively.
The whistleblower may be confronted with an ethical:
A.practice.
B.observation.
C.quantum.
D.dilemma.
Decisions made by the U.S. Supreme Court must ______ by other courts.
A.not be followed
B.be followed
C.not be referred to
D.be reviewed
The laws passed by Congress and by state legislatures are called ______.
A.statutes
B.executive orders
C.stare decisis
D.notices
If an advertisement offers a reward for information that might lead to the arrest of a
criminal or to the return of a lost article, it is regarded as a:
A.request for an offer.
B.reward offer.
C.public offer.
D.call for a bid.
Larceny is often classified as petty or grand, depending upon the:
A.time when the crime was committed.
B.person from whom the property was stolen.
C.value of the stolen property.
D.court to which the case was referred.
Once a minor reaches the legal age of majority, if he or she disagrees with the terms of
a contract and thereafter expresses his or her unwillingness to be bound by the contract
within a reasonable time, then the contract is said to be:
A.stamped.
B.attested.
C.disaffirmed.
D.approved.
A minor can be held liable if he or she makes damaging statements in writing for the act
of:
A.libel.
B.slander.
C.conversion.
D.nuisance.
At times, the parties to a contract include a statement right in their contract wherein
damages are explicitly set in the event one of the parties breaches the agreement. Such a
statement is called a(n):
A.loss payable clause.
B.exclusion clause.
C.integration clause.
D.liquidated damages clause.
When an offer of sale does not specify a price, it is assumed that the parties intended:
A.an implied contract.
B.not to enter a contract
C.a reasonable price.
D.a minimal price.