NAFTA seeks to eliminate tariffs among which countries?
a. all members of the United Nations
b. United States, Canada, and Mexico
c. United States and Japan
d. members of the common market
The Pregnancy Discrimination Act does not:
a. require employers to treat pregnancy as other disabilities are treated.
b. require women disabled by pregnancy to be provided with the same benefits as other
disabled workers.
c. require an employer to provide paid sick leave benefits to pregnant women if it does
not provide them to other disabled workers.
d. prevent termination because of pregnancy
The principal forms of business organization are:
a. sole proprietorships, joint ventures, and corporations.
b. unincorporated associations, partnerships, and corporations.
c. unincorporated associations, limited partnerships, and corporations.
d. sole proprietorships, partnerships, and corporations.
Consumer leases:
a. must always be evidenced by a writing.
b. are always three- party transactions.
c. require the lessor to make all usual warranties made by a seller in a sale of goods..
d. all of the above.
A partner’s authority to act for the partnership is similar to the authority of a(n):
a. agent to act for a principal.
b. independent contractor to act for an employer.
c. shareholder to act for a corporation.
d. employee to act for another employee.
A provision in a residential lease excusing a landlord from liability for damage caused
by water, snow, or ice is __________.
a. enforceable
b. enforceable, but only in those areas of the United States that are unusually exposed to
adverse weather conditions
c. void
d. voidable
An absolute privilege is available as a defense to slander liability when:
a. the statement is made to only a few people.
b. libel exists.
c. a witness testifies in a court proceeding.
d. no intent to harm is present.
An agreement to pay reasonable additional compensation to a contractor for the
performance of a pre-existing contract when the contractor faces extraordinary
circumstances caused by unforeseen difficulties is called a:
a. good-faith adjustment.
b. bribe.
c. compensatory allowance.
d. relief payment.
Failure to mitigate damages limits recovery to:
a. damages that would have been sustained had the plaintiff mitigated the damages
where it was possible to do so.
b. nominal damages and punitive damages.
c. damages for consequential loss.
d. exemplary damages.
Which of the following groups may legally be paid less than minimum wage?
a. Full time college students
b. Individuals with impaired productive capacity due to mental disability
c. Both a. and b.
d. Neither a. nor b.
Under what type of warranty is the seller obligated to fix or replace a defective product
within a reasonable time at no cost to the buyer?
a. full
b. express
c. limited
d. implied
When an offer has been accepted:
a. a subsequent revocation of the offer may serve to nullify the resulting contract.
b. a contract is formed, assuming that all of the other elements of a contract are present.
c. either party may withdraw from the resulting contract without consent.
d. the acceptance is executory.
Which of the following is NOT a nontariff barrier?
a. government subsidies
b. import quotas
c. complex custom procedures
d. an import or export duty or tax placed on goods as they move in or out of a country
Which of the following is an incorrect statement concerning trusts?
a. The trustee has legal title to the corpus.
b. The beneficiary has equitable title to or beneficial interest in the corpus.
c. Generally, a beneficiary may not transfer his or her interest in the trust.
d. A trustee cannot delegate the performance of personal duties.
Generally, it is easiest to assign:
a. credit.
b. personal services.
c. money.
d. all of the above.
In the case of a check, when the impostor rule applies:
a. the drawer of the check can successfully raise the defense of the forged indorsement.
b. the forged indorsement is effective to negotiate the instrument.
c. the forged indorsement is ineffective to negotiate the instrument.
d. the instrument becomes nonnegotiable.
A __________ is a condition that must occur before a party to a contract has an
obligation to perform under a contract.
a. condition precedent
b. condition subsequent
c. concurrent condition
d. none of the above
The death or disability of a party to a contract discharges the contract when:
a. personal services requiring peculiar skill are involved.
b. the payment of money is involved.
c. a house is to be painted.
d. all of the above.
If a plaintiff seeking damages in a breach of contract action receives $1 in damages, the
damages would most likely be classified as:
a. punitive damages.
b. exemplary damages.
c. nominal damages.
d. compensatory damages.
The process by which the buyer conducts a thorough investigation of the property and
its current and former uses to determine whether there are any problems with respect to
environmental law or nuisance is called:
a. continuing the nuisance.
b. due diligence.
c. nuisance per se.
d. nuisance per fact.
Examples of illusory promises include:
a. cancellation provisions.
b. apparent promises.
c. conditional obligations.
d. real obligations.
What is a correct statement concerning burden of proof?
a. The insured has the burden of proving that the loss was a covered loss.
b. The insurer has the burden of proving that the loss was not covered.
c. Exceptions to coverage are liberally interpreted in favor of the insurer.
d. Exceptions to coverage are disregarded in life insurance matters.
Action taken by one on behalf of another is:
a. agency.
b. negotiability.
c. representative capacity.
d. Identification of principal.
Which of the following powers is not available to the SEC pursuant to the Remedies
Act?
a. The SEC may start administrative proceedings against any person or entity regulated
by the SEC.
b. The SEC may start administrative proceedings against any person or entity not
regulated by the SEC.
c. The SEC may order an accounting and disgorgement of ill-gotten gains.
d. All of the above powers are available to the SEC under the Remedies Act.
Under which of the following doctrines is it held that a foreign sovereign cannot be
sued unless it engages in illegal commercial conduct?
a. act-of-state
b. sovereign compliance
c. Timberlane
d. sovereign immunity
Meetings are to be open to the public under:
a. the Administrative Protection Act.
b. the Sunshine Act.
c. the Freedom of Information Act.
d. none of the above.
Price regulations:
a. may be imposed by the national government.
b. may be imposed by state governments.
c. include rules regarding credit terms and other charges.
d. all of the above.
If you allow another person to use your credit card but the person uses the card for a
purpose other than the one you specified:
a. an unauthorized usage has occurred.
b. an authorized usage has occurred.
c. you will not be responsible for more than $50 of the amount charged.
d. both a and c.
A bailee’s __________ gives the bailee the right to maintain possession of the bailed
property until reasonable storage and/or repair charges are paid.
a. reversionary interest
b. Lien
c. remainder interest
d. Mortgage
The owner of a lost credit card is:
a. liable for all purchases made by its finder if the card was lost through negligence.
b. not liable for any purchases if the card was lost despite the exercise of reasonable
care by the cardholder.
c. liable for all purchases if the card originally had been sent to the cardholder without
any prior request and never was used by such holder.
d. not liable for more than $50 for the unauthorized use of the card.
The RMBCA provides that shareholders:
a. have no preemptive rights unless the articles of incorporation so provide.
b. have preemptive rights regardless of what the articles of incorporation provide.
c. cannot have preemptive rights.
d. only have preemptive rights with respect to the transfer of a block of stock as
consideration.
The Sunshine Act requires most meetings of major administrative agencies to be open
to the public.
A family law court is an example of a specialty court.
Manis owns 100 shares of stock of the Linquist Corporation. She sells her stock to
Sosnik and delivers to him: (1) her stock certificate for 100 shares and (2) a written,
signed assignment of the 100 shares to Sosnik. The assignment form printed on the
back of the share certificate is left blank and is not signed. Sosnik refuses to take the
certificate and the assignment on the ground that Manis must fill in and sign the
assignment form on the stock certificate to make the transfer of stock effective. Is he
correct?
Sharing of gross returns, as compared to the sharing of profits, is strong evidence of a
partnership.
Those who are liable for violations of consumer protection situations are persons or
enterprises that regularly enter into the type of transaction in which the injured
consumer was involved.
Documents filed by both parties at the beginning of a lawsuit are called the pleadings.
“Without reserve” auctions give the auctioneer the right to withdraw the goods from the
sale process if the bids are not high enough.
In a negotiable instrument, the promise or order to pay must be unconditional.
The rights and duties of the landlord and tenant are based on principles of real estate
law and contract law.
Unless otherwise agreed by the parties, payment by a buyer requires payment either in
cash or by certified check.
All federal courts are expressly created by the United States Constitution.
The order or bearer character of a paper is determined as of the time when the
negotiation is about to take place.
Every limited partnership must have at least one general partner.
If a common carrier delivers goods to the wrong person, the carrier is liable for breach
of contract and for the tort of conversion.
Order paper is negotiated by the indorsement of the holder and delivery.
In order for a work to be copyrightable, it must possess a significant amount of
creativity.
Until proven valid, a rule adopted by an administrative agency is considered invalid by
the courts.