The plaintiff in a product liability lawsuit has suffered $100 worth of damages from an
automobile accident. A defect in the manufacture of the plaintiff’s vehicle is found to be
70 percent responsible for the accident, while the plaintiff’s own negligence is 30
percent responsible. Under the doctrine of comparative negligence, how much would
the defendant”the manufacturer of the vehicle”have to pay the plaintiff in damages?
A) $70
B) $30
C) $100
D) $40
If a lessee makes full payment for goods before they are received and the lessor
becomes insolvent within 10 days after receiving the first payment, the lessee has
________.
A) the right to capture
B) the right to cure
C) the right to withhold delivery
D) the right to reclaim goods
The ________ Act is a federal act enacted in 1970 that promotes safety in the
workplace.
A) OSHA
B) FLSA
C) FMLA
D) ERISA
Which of the following is true of the Clean Air Act?
A) It is the only major state law regulating air pollution in the United States.
B) It fails to include air pollution caused by fuel and fuel additives in its purview.
C) It is only concerned with stationary sources of air pollution.
D) It requires air pollution controls to be installed on motor vehicles.
The ________ is a trilateral treaty that has removed or reduced tariffs, duties, quotas,
and other trade barriers between the United States, Canada, and Mexico.
A) Free Trade Area of the Americas Treaty
B) North American Free Trade Agreement
C) Central America Free Trade Agreement
D) General Agreement on Tariffs and Trade
LetsConnect is a three-month-old Internet service provider in the U.S.A. In the last two
months, it was discovered that several LetsConnect users exchanged online material
that is illegal in the United States. The ISP took no measures to investigate the matter or
prevent it. Which of the following holds true in this case?
A) The users of LetsConnect are not liable for the material they exchanged.
B) LetsConnect is not liable for the content transmitted over its network.
C) LetsConnect will be prosecuted for abusing the freedom of speech.
D) LetsConnect will be prosecuted for violating the Communications Decency Act.
Who receives the trust res upon the termination of a trust?
A) the heir
B) the trustor
C) the remainder beneficiary
D) the income beneficiary
When the government enters into a contract on behalf of a taxpayer, the taxpayer is
typically a(n) ________.
A) incidental beneficiary
B) promisee
C) donee beneficiary
D) promisor
The World Bank is ________.
A) an autonomous agency under the aegis of the European Union
B) an agency that monitors the financial collaborations taking place in the eurozone
C) primarily responsible for promoting sound monetary, fiscal, and macroeconomic
policies worldwide
D) primarily responsible for providing money to developing countries to fund projects
for humanitarian purposes
Which of the following is a lessee’s remedy?
A) right to withhold delivery
B) right to reclaim goods
C) right to obtain specific performance
D) right to stop delivery of goods in transit
Ryan executes a promissory note promising to pay Ruth the money that he owes her. He
does not specify the amount that he will repay. Is the promissory note valid? Discuss
other requirements that a negotiable instrument must fulfill in order to be negotiable as
per UCC 3-104(a).
Helen works as the vice president of Gotspeed Corporation, a company that develops
and sells sports shoes. Nestor, a home-based shoemaker, meets Helen privately in order
to present a model for a more cost-efficient and durable shoe. Instead of taking the idea
to Gotspeed’s board of directors, Helen pays Nestor’s asking price and purchases the
Anklator model for herself. Helen leaves Gotspeed Corporation and forms her own
company that manufactures and markets the Anklator shoe models. What breach of the
duty of loyalty has Helen committed here?
A) piercing the corporate veil
B) usurping a corporate opportunity
C) breaching the business judgment rule
D) denial of right to first refusal
The ________ is a federal statute, enacted in 1914, that regulates mergers and prohibits
certain exclusive dealing arrangements.
A) Sherman Act
B) Celler-Kefauver Act
C) Robinson-Patman Act
D) Clayton Act
In which of the following conditions is a drawee primarily liable to a draft?
A) when the instrument is issued
B) when the instrument is dishonored
C) when the instrument is presented for payment
D) when the drawee is an acceptor to the instrument
Which of the following statements is true of the Treaty Clause?
A) It provides that the president can make treaties on his own accord autonomously.
B) It provides that the president can enter into treaties with senate approval.
C) It provides that the states have exclusive power to regulate internal and foreign
affairs.
D) It provides that the federal government has supremacy over the state in matters of
international trade.
The ________ recognizes electronic contracts as meeting the writing requirement of the
Statute of Frauds for most contracts.
A) Uniform Commercial Code
B) Uniform Computer Information Transactions Act
C) E-SIGN Act
D) Communications Decency Act
Instead of depositing an “on them” check for collection, a depositor can physically
submit the check for payment at the payer bank. This is called ________.
A) provisional credit
B) indorsement of the check
C) presentment across the counter
D) final settlement
Intrepid Creations is a product design institute which provides educational courses in
package design. It manages to acquire the right to use simulation software from Marco
Software for a payment of $2,000 a year. There is no clause of expiration on this
arrangement and the right to access the software is renewed annually. Which of the
following kinds of business arrangements does the aforementioned scenario indicate?
A) a licensing arrangement
B) a general partnership
C) a limited partnership
D) a franchise
A ________ relationship is created if the deposit is a check that the bank must collect
for the customer or the customer writes a check against his or her account.
A) push-pull
B) creditor-debtor
C) principal-agent
D) payee-cashier
A nonbreaching party may recover damages from the breaching party in the event of a
________.
A) wrongful termination
B) termination of an agency by an act of the parties
C) termination of an agency by operation of law
D) termination of an agency by impossibility of performance
In a lease transaction, the title to the goods ________.
A) changes when the goods are identified
B) changes when the goods are delivered
C) does not remain with the lessor
D) does not pass to the lessee
________ damages are usually awarded in a small amount.
A) Consequential
B) Compensatory
C) Nominal
D) Liquidated
Which of the following statements is true about the freedom of religion under the U.S.
Constitution?
A) It gives practitioners absolute rights to take part in actions which are religious-based.
B) It permits the government to either establish a government-sponsored religion or
promote one religion over another.
C) It permits the government from enacting laws that either prohibit or inhibit
individuals from participating in or practicing their chosen religions.
D) It requires federal, state, and local governments to be neutral toward religion and
thus guarantee that there will be no state-sponsored religion.
A(n) ________ issued by a court authorizes the police to search a designated place for
prohibited items.
A) arrest warrant
B) information document
C) indictment
D) search warrant
A tenant’s interest in the real property is called a(n) ________.
A) easement estate
B) free simple absolute estate
C) gifted estate
D) leasehold estate
Damages that will be paid upon a breach of contract, but that are established in advance
are defined as ________ damages.
A) punitive
B) actual
C) incidental
D) liquidated
Imposing a ban on public smoking can serve as an example of a law that adheres to the
________ School of jurisprudence.
A) Command
B) Sociological
C) Law and Economics
D) Analytical
Franchisors charge a monthly or annual ________ fee for having experts from the
franchisor help the franchisee better conduct business.
A) lease
B) consulting
C) assessment
D) royalty
Proponents of the ________ School of jurisprudence emphasize a moral theory of law,
where law is based on morality and ethics, and is discovered by human reasoning and
making choices between good and evil.
A) Sociological
B) Analytical
C) Historical
D) Natural Law
Intoxicated persons are liable in a(n) ________ to pay the reasonable value for
necessaries they receive.
A) void contract
B) unconscionable contract
C) quasi-contract
D) pseudo-contract
An acceptance for a bilateral contract is effective when it is ________.
A) dispatched by the offeree
B) dispatched by the offeror
C) received by the offeree
D) received by the offeror