________ set an upper limit on the interest rate that can be charged on certain types of
loans.
A) Federal banking reforms
B) State usury laws
C) Congressional committees
D) Chambers of commerce
Which of the following is true of the Insecticide, Fungicide, and Rodenticide Act?
A) It only allows government-manufactured pesticides to be sold.
B) It requires all pesticides to be registered with the EPA.
C) It cannot suspend the registration of an already registered pesticide.
D) It allows non-registered pesticides to be sold only with the close monitoring by the
EPA.
A liquidated damage clause is unenforceable if ________.
A) the actual damages are impractical to determine
B) the liquidated damages clause is considered a penalty
C) the liquidated damages are conscionable
D) the liquidated damages do not result in a loss of money for the nonbreaching party
________ refers to a method that allows small companies to raise capital from many
small-dollar investors through Web-based platforms.
A) Canvassing
B) Hawking
C) Crowd funding
D) Door-to-door selling
Halfren, a county in the state of Halizona, is extremely earthquake-prone. A committee
set up by the governor to study the effects of past earthquakes found that a new
technique of using steel reinforcements in building columns would help reduce overall
damages. The findings were put to a debate at the local town hall, where it was accepted
by a majority of the residents of Halfren. The state government then passed a law
making it mandatory to use the new steel-reinforced columns while constructing new
buildings in Halfren. Which of the following function of the law did the state
government of Halizona exhibit in this case?
A) promoting social justice
B) maximizing individual freedom
C) shaping moral standards
D) facilitating orderly change
The ________ is a rule that permits employees and union officials to engage in union
solicitation on company property if the employees are beyond reach of reasonable
union efforts to communicate with them.
A) executive exemption
B) exclusionary rule
C) inaccessibility exception
D) administrative employee exemption
Leonard had incurred an injury due to a defective product on December 15, 2011. He
had purchased the defective product on December 15, 2010 from Astralibra Inc. The
state of his residence has enacted a statute of repose for strict liability to be three years
and enforced the doctrine of comparative fault. Leonard decides to sue Astralibra Inc.
for strict liability on December 15, 2016. Which of the following is true in this
scenario?
A) Leonard can only sue for contributory negligence against Astralibra Inc.
B) Leonard can only sue for comparative fault against Astralibra Inc.
C) Leonard can only sue for negligence against Astralibra Inc.
D) Leonard is denied the right to sue Astralibra Inc.
Which of the following is true of a Chapter 13 petition?
A) It can be filed by all individual debtors, irrespective of their income status.
B) The petitioner need not demand an extension or composition.
C) To qualify for Chapter 13, the debts must primarily be consumer debt.
D) Creditors can file a Chapter 13 petition claiming payment from a debtor.
Which of the following is an exception to the Foreign Sovereign Immunities Act?
A) sham exception
B) managed trade exception
C) diversity of citizenship exception
D) commercial activity exception
By default, a case involving an international dispute is prosecuted only in ________.
A) the International Court of Justice
B) a court in the defendant’s country
C) a court in the plaintiff’s country
D) a court in a neutral country
The original tenant who transfers some or all of his rights under a lease is known as a(n)
________.
A) sublessor
B) sublessee
C) assignor
D) assignee
Advertising is categorized as ________ speech.
A) fully protected
B) limited protected
C) uncensored
D) unprotected
In which of the following cases of consumer safety violations will the U.S. Department
of Agriculture be required to take action?
A) A new drug was released into the market without adequate testing and this lead to
adverse side effects among users.
B) A brand of soft toys for infants was produced with low grade foam and fabrics that
could prove harmful when ingested.
C) A batch of sausages and cold cuts from a particular vendor was found to have high
levels of salmonella and other pathogenic organisms.
D) A fleet of cars released into the market by a popular automobile manufacturer was
found to have a defective braking system which could prove fatal for owners.
________ are employees of a corporation who are appointed by the board of a
corporation to manage the day-to-day operations of the corporation.
A) Ombudsmen
B) Corporate officers
C) Outside directors
D) Non-executive directors
The ________ is a federal statute, passed in 1975, that regulates written warranties on
consumer products.
A) Purchaser’s Act
B) Industry Loss Warranty Act
C) Magnuson-Moss Warranty Act
D) Consumer Warranty Act
________ occurs when one contracting party informs the other that he or she will not
perform his or her contractual duties when due.
A) Restitution
B) Rescission
C) Anticipatory repudiation
D) Accommodation
The immigration laws of the United States are administered by the ________.
A) SSA
B) USCIS
C) IRS
D) OSHA
What is the purpose of a pretrial hearing?
A) requesting the other party to produce all documents relevant to the case
B) assessing the factual accuracy of the deposition of witnesses
C) instructing the judge to decide the case without a jury
D) facilitating the settlement of a case before it goes to trial
Exosoft Software contracts with Rensys Semiconductors to purchase electronic security
sensors in bulk. Both companies draft a carrier contract which specifies that the
shipment must be transferred in a single transaction to a specific port city where
Exosoft’s headquarters is located. The carrier contract in this scenario is an example of
a(n) ________.
A) destination contract
B) shipment contract
C) installment contract
D) implied contract
________ is a legitimate method to convert an order paper to a bearer paper.
A) Indorsing
B) Adding the term “pay to the order of”
C) Delivering the order paper
D) Specifying a payee
A(n) ________ is a relationship formed when an employer hires an employee and gives
that employee authority to act and enter into contracts on his or her behalf.
A) agent-independent contractor relationship
B) principal-agent relationship
C) employer-employee relationship
D) agent-agent relationship
A donee third-party beneficiary has the right to sue the ________ for nonperformance.
A) creditor beneficiary
B) promisor
C) promisee
D) incidental beneficiary
Which of the following defenses, if proven, may be deemed unenforceable by a holder
but enforceable by an HDC?
A) extreme duress
B) fraud in inception
C) forgery
D) breach of contract
In case of a breach in trade agreements of the World Trade Organization (WTO), which
of the following WTO bodies first hears the dispute?
A) the WTO panel
B) the WTO appellate body
C) the WTO dispute settlement body
D) the WTO General Council
________ are powers beyond express powers that allow a corporation to accomplish its
corporate purpose.
A) Cumulative powers
B) Corporation codes
C) Ultra vires acts
D) Implied powers
The ________ is the principal’s duty to cover the agent for any losses the agent suffers
because of the principal’s conduct.
A) duty to cooperate
B) duty to indemnify
C) duty to compensate
D) duty to reimburse
________ doctrine is a doctrine that says automobile manufacturers are under a duty to
design automobiles so they take into account the possibility of harm from a person’s
body striking something inside the automobile in the case of a car accident.
A) Strict liability
B) Crashworthiness
C) Transferred intent
D) Proximate cause
Which of the following best defines an initial public offering?
A) The issuance of an offering statement to the public prior to purchase.
B) The filing of a registration statement by an issuer.
C) The disclosure document released for public scrutiny.
D) The sale of securities by an issuer to the public.
In which of the following cases of assent is the rescission of a contract unenforceable?
A) mutual mistake of value
B) misrepresentation of a material fact
C) silence as misrepresentation
D) innocent misrepresentation
Which of the following must be in writing even if it is below the time stipulation of the
Statute of Frauds?
A) businesses that have more than one commercial venture
B) partnerships authorized to deal real estate
C) businesses that are authorized to lend money
D) enterprises which deal with health and medicine