For the long-arm statute to be effective, the nonresident defendant in a civil lawsuit
must have had some minimum contact with the state such that the maintenance of that
lawsuit in that state does not offend traditional notions of fair play and substantial
justice.
Purchase is the least common method of acquiring title to personal property in today’s
world.
The duties for which an obligee has a substantial interest in having an obligor perform
cannot be transferred to a third party.
The Department of Agriculture adopted consistent and compulsory labeling
requirements for raw fruits and vegetables and raw seafood.
Utility patents for inventions are valid for 5 years.
The Supremacy Clause is intended to foster the development of a national market and
free trade among the states.
Larceny is defined as the wrongful and fraudulent taking of another person’s personal
property other than from his or her person or building.
The bank where the drawer has a checking account and on which a check is drawn is
called a depository bank.
Congress enacted the Securities Exchange Act in 2002 to bring more transparency to
securities markets and to eliminate conflicts of interests that previously existed in the
securities industry.
In the case of a mutual benefit bailment, the bailee owes a duty of reasonable care to
protect the bailed goods.
The prohibition against sex discrimination under Title VII applies equally to men and
women.
A corporation that operates in more than one country is called a transnational
corporation.
A contract is an agreement that is enforceable by a court of law or equity.
Class members do not have the right to opt out of the class action and pursue their own
legal process against the defendant.
The mailbox rule is a rule which states that for an acceptance to exist, the offeree must
accept the terms as stated in the offer.
The law permits no more than 75 nonaccredited investors to purchase securities
pursuant to a private placement exemption.
A writ of execution is a prejudgment court order that permits the seizure of a debtor’s
property that is in possession of third parties.
After becoming sober, an intoxicated person can ratify the contracts he or she entered
into while intoxicated.
If the value of the collateral securing the secured loan exceeds the secured interest, the
secured creditor is referred to as an undersecured creditor.
The Anticybersquatting Consumer Protection Act was enacted to protect consumers
from unsolicited commercial advertising mails.
Officers are liable on an unauthorized contract if the corporation does not ratify it.
The location of the signature on an instrument generally determines the signer’s
capacity.
Possession occurs when the value of personal property increases by natural or
manufactured means.
The drawback of wire transfers is the lack of speed.
If two or more secured parties have perfected security interests in the same collateral,
the last to perfect has priority.
In a vicarious liability, a principal is liable owing to his or her employment contract
with the negligent agent because the principal was personally at fault.
If a minor does not disaffirm a contract either during the period of minority or within a
reasonable time after reaching the age of majority, the contract is considered ratified.
An obligor has the rights to receive the performance under a contract.
Early English law courts emphasized the merit of a case over the legal procedures.
Abstractions and scientific principles cannot be patented unless they are part of the
tangible environment.
Franchisees and franchisors are always liable for the contracts or torts of each other.
Title to property owned by the merged corporation transfers to the surviving
corporation, without formality or deeds.
Any provisions of the UCITA that are preempted by federal law are enforceable by the
state law.
Kant’s philosophy and ethics is based on the premise that people should avoid reasoning
when arriving at ethical decisions.
Because the Supreme Court issues only about 100 opinions each year, writs are usually
granted only in cases involving constitutional and other important issues.
Intangible writings are subject to copyright registration and protection.
Weakness of intellect constitutes legal insanity.
Inference of the existence of a general partnership is drawn only if profits are received
as ________.
A) share in partnership
B) payment of wages
C) interest owed on a loan
D) a debt owed to a creditor
________ are the most serious of crimes, and are considered to be inherently evil.
A) Infractions
B) Misdemeanors
C) Felonies
D) Summary offences
________ refers to jurisdiction to hear a case because of jurisdiction over the property
of the lawsuit.
A) In rem jurisdiction
B) Quasi in rem jurisdiction
C) Private jurisdiction
D) In personam jurisdiction
Harvey and Raymond did not get along well at their college reunion. Offended by
something Raymond mentioned, Harvey punched him in the face and broke his jaw.
Harvey is liable for ________.
A) negligence
B) disparagement
C) battery
D) embezzlement
Suppose a state has set a usurious rate of interest as any interest rate above 25 percent.
Samuel borrows $1,000 from Clara. Clara can demand a maximum of ________
without violating the usury law.
A) $1,000
B) $25
C) $1,250
D) $750
Jintopia is a country in which the federal government and the twelve state governments
share powers. The form of government in Jintopia is ________.
A) sovereignty
B) federalism
C) unitarianism
D) libertarianism
Approval clauses require that the ________ approve any assignment of a contract.
A) obligee
B) obligor
C) assignor
D) assignee
Archman Stationeries is looking to takeover Linegraph Pens. In its bid to make a tender
offer, it begins acquiring stock from Linegraph. While purchasing the shares, Archman
realizes that the shares tendered are far too many in number. However, it illicitly does
not purchase the shares on a pro rata basis. This is a violation as defined by the
________.
A) Williams Act
B) Lanham Act
C) Investment Company Act of 1940
D) Exon-Florio Foreign Investment Provision
Ram receives a check for $100 from Sharon. He signs the back of the check and turns it
over to Luke to pay off the $100 he owed Luke. The check is now said to be ________.
A) certified
B) indorsed
C) drawn
D) stale
According to the provisions set forth by the Sarbanes-Oxley Act, the ________ may
issue an order prohibiting any person who has committed securities fraud from acting as
an officer or a director of a public company.
A) United States International Trade Commission
B) Federal Reserve System
C) Federal Communications Commission
D) Securities and Exchange Commission
Which of the following is true about a promissory estoppel?
A) It is invoked in cases having option contract infringements.
B) It permits a court to order enforcement of a contract that lacks consideration.
C) It allows for a party to claim goods, which were revoked, for which it has already
paid consideration.
D) It is invoked in cases that involve a promissory note to pay considerations at a later
time.
Which of the following is true of the notice of a shareholders’ meeting?
A) Lack of such a notice voids any action taken during the meeting.
B) The notice may be given to a shareholder less than 10 days before the date of the
meeting.
C) Matters that are absent in the notice can be considered in the meeting.
D) The purpose of the meeting is excluded from the notice in case of special meetings.
Which of the following is true of the national ambient air quality standards (NAAQS)?
A) The federal government has the right to enforce these air pollution standards if the
states fail to do so.
B) The state governments are responsible for setting standards for air quality in their
respective state.
C) Human beings are protected under the secondary level of the NAAQS.
D) Only standards for oxides of elements and particulate matter are evaluated under the
NAAQS.
Which of the following is true of how legal precedent is used between the U.S.
Supreme Court and state courts?
A) State courts are not required to follow the legal precedent established by the
Supreme Court.
B) State courts can use the legal precedent established by the Supreme Court as
guidance but are not bound to follow.
C) The Supreme Court must follow the legal precedent established by state courts.
D) State courts must follow the legal precedent established by the Supreme Court.
Unless terms are staggered, the term of a director’s office expires at the next ________
shareholders’ meeting following his or her election.
A) annual
B) special
C) emergency
D) extraordinary
The rights to the earth located beneath the surface of the land are known as ________.
A) chattel rights
B) air rights
C) mineral rights
D) joint rights
Which of the following actions requires voting of all the members of a
manager-managed LLC?
A) expanding operations to another state
B) admitting new members
C) signing agreements with other businesses
D) expanding operations to another country
The U.S. Supreme Court is composed of ________ justices.
A) nine
B) six
C) ten
D) three
Kate is granted a Chapter 7 discharge after filing for bankruptcy. However, she still has
about $20,000 of unsecured debt in the form of credit card debt. Which of the following
is true in this case?
A) Kate is liable to pay the debt with her exempt property.
B) Kate is liable to pay the money with her postpetition income.
C) Kate is legally relieved of this debt.
D) Kate is liable to pay the debt with her future earnings.
________ are courts that hear cases of a general nature that are not within the
jurisdiction of limited-jurisdiction trial courts.
A) Courts of record
B) Intermediate appellate courts
C) Inferior trial courts
D) State supreme courts
Which of the following is a perceived disadvantage of Rawls’s social justice theory?
A) It allows for those in advantageous positions to suppress people in least
advantageous positions.
B) It doesn’t consider the fact that people would not want to maximize benefits for the
least advantaged persons.
C) It only allocates people in advantageous positions to set up rules on morality.
D) It postulates that there are no universal ethical rules to guide a person’s conduct.
What is the period of copyright protection provided for individuals?
A) Individuals are granted 95 years copyright protection from the year of creation of the
work.
B) Businesses are granted 120 years copyright protection from the year of first
publication of the work.
C) Individuals are granted copyright protection for their lifetime plus 70 years.
D) Individuals are granted 120 years of copyright protection from the year of first
publication of the work.
Which of the following statements is true about the Uniform Partnership Act?
A) A partnership agreement is generally enforceable, except in situations where its
terms differ from the provisions of the act.
B) The act can be thought of as a “gap-filling” statute that applies when a partnership
has no partnership agreement provision addressing a particular issue.
C) The act requires that partnership agreements be in writing in order to be enforceable.
D) The act prohibits individuals from varying its terms in partnership agreements.
An oral stop-payment order is binding on the bank for ________.
A) 14 calendar days
B) 12 calendar weeks
C) 14 calendar months
D) 12 calendar years
Which of the following is true of the recording statute?
A) It affects the legality of the instrument between the mortgagor and the mortgagee.
B) The mortgagor is not obligated to pay the amount if the document is not recorded.
C) The mortgagor is obligated to pay even if the document is not recorded.
D) An improperly recorded document is still effective against other mortgagees and
purchasers.
The passing of title from a seller to a buyer for a price is known as a(n) ________.
A) license
B) easement
C) lease
D) conveyance
Rudy was working as an applications developer in a software firm in San Jose. His
employment contract was for three years at $100,000 a year. Two years into the
contract, Rudy’s employer fired him as a part of downsizing. Which of the following
jobs could Rudy take in order to mitigate damages?
A) Any job that offers $100,000 or more a year.
B) Another software applications developer job, irrespective of the salary.
C) A job in any software firm in any part of the country.
D) An applications developer job in San Jose for $100,000 a year or more.
Stock for which any missed dividend payments must be paid in the future to the
preferred shareholders before the common shareholders can receive any dividends are
known as ________.
A) cumulative preferred stocks
B) noncumulative preferred stocks
C) common stocks
D) participating preferred stock
The WaterGlove Corporation issues ________ preferred stock that requires the payment
of a quarterly dividend of $5.00 per share. The WaterGlove Corporation falls behind
with four quarterly payments, i.e., $20.00 per share of preferred stock. The next quarter,
the corporation makes a profit of $25.00 per share. The corporation must pay the $20.00
per share of arrearages to the preferred shareholders plus this quarter’s payment of
$5.00 per share.
A) convertible
B) redeemable
C) cumulative
D) participating
Which of the following statements is true of the equal protection clause?
A) It expressly applies to state and local government actions only.
B) It is designed to make the classification of individuals unlawful per se.
C) It is designed to prohibit invidious discrimination.
D) It fails to protect artificial persons such as corporations.