OSHA is empowered to inspect places of employment for health hazards and safety
violations.
The statute of limitations limits the seller’s liability to a certain number of years from
the date when the product was first sold.
For trademark laws to be enforced, the cybersquatters have to distribute goods and
services under the trademark name.
A shareholder resolution may exceed 500 words.
The Uniform Commercial Code became quickly outdated as mass production and
distribution of goods developed in the twentieth century.
Design patents protect the functionality of the item.
The maker or drawer of an instrument is considered liable even if there is no signature
on the instrument.
The Helping Families Save Their Homes Act of 2009 was enacted to provide ways for
some homeowners to easily retain their homes and prevent foreclosure.
Personal property that is permanently affixed to land or buildings is called a fixture.
A trade secret is a product formula, pattern, or design of a company that the company
publishes openly to the market.
Privity of contract is irrelevant in lawsuits based on Section 10(b) and Rule 10b-5 of the
Securities Exchange Act of 1934.
Many states have created small claims courts to hear civil cases involving small dollar
amounts.
If there is a breach of contract, the negotiable instrument may be deemed unenforceable
by a holder but enforceable by an HDC.
The right to redemption allows mortgagors to pay partial interest on the mortgage
amount after default.
The exercise of long-arm jurisdiction is generally permitted over nonresidents who have
committed torts within the state.
It is the agent’s actions, not the principal’s actions, which create an apparent agency.
If a case involving concurrent jurisdiction does not qualify to be brought in federal
court, it must be brought in the appropriate state court.
In order for an agreement to be valid, there must be mutual assent by the parties.
Employers are not liable to pay punitive damages under Title VII of the Civil Rights
Act.
All manufacturers, distributors, wholesalers, retailers, lessors, and subcomponent
manufacturers involved in a transaction constitute the chain of distribution in a strict
liability claim.
Punitive damages are generally not recoverable for breach of contract except for certain
tortious conduct.
The CAN-SPAM Act allows businesses to use spam and restricts the consumers from
opting out of receiving such emails.
States are free to define what constitutes obscene speech.
Any contract entered into by a person who has been adjudged insane is void.
The dissolution of a general partnership discharges the liability of an outgoing partner
for existing partnership debts and obligations.
A general partnership need not file a fictitious business name statement to operate under
a trade name.
A will that is informal and handwritten can be legally enforced.
Goods sold pursuant to a sale or return contract are subject to the claims of the buyer’s
creditors while the goods are in the seller’s possession.
Ethical relativism theory holds that individuals must follow an outside source for
ethical rules or commands.
The act or process of a minor voluntarily leaving home and living apart from his or her
parents is referred to as ratification.
In sparsely populated states that do not have an intermediate appellate court, trial court
decisions can be appealed directly to the state’s highest court.
A lessor cannot acquire title to goods that it does not select, manufacture, or supply.
The “facilitating orderly change” function of the law refers to laws enacted after
considerable study, debate, and public input.
The reversal of a buyer’s acceptance is defined as revocation.
All parties in the chain of distribution of a defective product are strictly liable for the
injuries caused by that product.
A creditor who extends credit for the purchase of a consumer good under a written
security agreement does not have to file a financing statement or take possession of the
goods to perfect security interest.
Most government laws are considered not to violate substantive due process.
The permanency requirement of negotiable instruments says that they must be written
or printed on ordinary paper.
Price fixing includes stabilizing the price of a commodity or service.
________ crimes require that the perpetrator either knew or should have known that his
or her actions would lead to harmful results.
A) General intent
B) Nonintent
C) Specific intent
D) Explicit intent
________ is a type of personal defense where a person is wrongfully influenced or
threatened to enter into a negotiable instrument.
A) Forgery
B) Discharge in bankruptcy
C) Fraud in the inducement
D) Ordinary duress
The Eurozone comprises of ________.
A) all the members of the EU
B) EU countries that have voted to use the euro
C) all countries of the continent of Europe
D) EU countries that have eliminated custom tariffs on trade with each other
________ is a moral theory which holds that individuals must decide what is ethical
based on their own feelings about what is right and wrong.
A) Ethical relativism
B) Kantian ethics
C) Utilitarianism
D) Rawls’s social justice theory
Bankruptcy proceedings are commenced under ________.
A) state law
B) federal law
C) county law
D) state or federal law, at the option of the debtor
Jason orders 100 remote-controlled toy cars from RyBy Toys. In the contract, it is
stipulated that RyBy Toys would transport the toy cars via FlyByNight, a national
carrier service. RyBy Toys makes the arrangements and hands over the toys, minus the
remote-controllers, to FlyByNight, to be delivered to Jason. In the event that the goods
are destroyed in transit, which of the following parties would bear the risk of loss as per
the sales contract?
A) Jason would bear the risk of loss irrespective of the fate of the goods.
B) FlyByNight would bear the risk of loss as they had the responsibility to deliver the
goods.
C) RyBy Toys would bear the risk as they shipped nonconforming goods.
D) The risk of loss would be shared between RyBy Toys and Jason.
George, John, Paul, Ringo, and Brian are five friends from Iowa. George owes John
$100, John owes Paul $200, Paul owes Ringo $300, and Ringo owes Brian $400. John
and Paul find a check belonging to George. John names himself as the payee on the
check, fills in $200 as the amount, and forges George’s signature on it. He indorses the
check to Paul and asks him to consider his debt repaid, while keeping the knowledge of
the forgery to himself. Paul, in turn, indorses the check to Ringo and pays Ringo the
remaining $100 in cash. Ringo indorses the check to Brian, who presents the check to
George’s bank and receives payment. Who among the following can the bank recover
the money from, once the forgery is detected?
A) George
B) Paul
C) Brian
D) Ringo
Issued shares that have been repurchased by the corporation are referred to as
________.
A) outstanding shares
B) liquidated shares
C) unissued shares
D) treasury shares
Jennifer had put up a reward offer, in the local newspaper, for her lost watch for two
weeks now. But after buying a new watch, Jennifer decided to not pursue her old watch,
and so decided not to put up the reward offer in the third week. Betty, who found the
watch, and saw the reward offer, returned the watch to Jennifer during the third week.
Which of the following would be true about Betty receiving chances of receiving the
reward?
A) Betty will not receive the reward as Jennifer had already revoked it.
B) Betty will not receive the reward as Jennifer had stopped publishing the reward
offer.
C) Betty cannot claim the reward because she had not performed all the requested acts.
D) Betty can claim the reward because Jennifer had not published a notice of
revocation.
Gary Govetty is a famous movie star. A tabloid published an interview with his
ex-girlfriend in which she falsely claimed that Gary was completely bald and had been
wearing a wig for several years. Gary can sue his ex-girlfriend for ________.
A) libel
B) invasion of the right to privacy
C) tort of appropriation
D) negligence
What is an executory contract?
A) a contract that cannot be rejected under Chapter 11
B) a contract that the debtor is obliged to perform despite filing for bankruptcy
C) an agreement between several creditors and a single debtor, dividing the debtor’s
property
D) a contract that has not been fully performed
As defined by the Magnuson-Moss Warranty Act, a warranty that covers the costs of
parts, but not the labor, to fix a defective product is defined as a(n) ________.
A) full warranty
B) implied warranty
C) limited warranty
D) warranty disclaimer
The state of Carterbridge in the United States passes a statute that grants all residents
who purchase a brand new automobile made in Carterbridge a $2,000 credit on state
sales tax. Such a statute would be ________.
A) a violation of the Due Process Clause in the Fifth Amendment
B) a procedural due process violation
C) a First Amendment violation
D) a violation of the Commerce Clause exists
A(n) ________ is an arrangement in which a third party promises to be secondarily
liable for the payment of another’s debt.
A) insolvency arrangement
B) surety arrangement
C) guaranty arrangement
D) accommodation
A ________ is a two-party negotiable instrument that is an unconditional written pledge
by one party to pay money to another party.
A) bill of exchange
B) check
C) certificate of deposit
D) promissory note
A(n) ________ is a person or persons who organize and start a corporation, negotiate
and enter into contracts in advance of its formation, find the initial investors to finance
the corporation, and so forth.
A) incorporator
B) promoter
C) articles drafter
D) negotiator
Limited partnerships are also referred to as ________ partnerships.
A) special
B) ordinary
C) qualified
D) equitable
An ________ refers to an agency that arises when a franchisor creates the image that a
franchisee is its agent when in fact an actual agency does not exist.
A) apparent agency
B) implicit agency
C) agency by ratification
D) implied agency
A person can purchase a(n) ________ from a bank by paying the bank the amount of
the check plus a fee for issuing the check.
A) indorsed check
B) ordinary check
C) blank check
D) cashier’s check
To meet contractual legality, considerations must be ________.
A) beneficial to both parties involved
B) detrimental to both parties involved
C) mentioned in writing in the contract
D) bargained-for exchange of promise for performance
________ corporations are for-profit corporations that have hundreds or thousands of
shareholders, and their shares are traded on organized securities markets.
A) Privately held
B) Professional
C) Publicly held
D) Service
If a company does not hire certain employees because of their accents, it has carried out
________ discrimination.
A) genetic information
B) race
C) color
D) national origin
Ahmed agrees to trade his copy of the collector’s edition “Initial Fantasy VI” for a new
copy of “Phobiaman: The Journey Beyond Fear.” He then finds out that the
“Phobiaman” series has been banned due to objectionable content. The offer is
automatically terminated due to ________.
A) supervening illegality
B) lapse of time
C) death or incompetency
D) destruction of the subject matter
An ________ refers to a third party who acquires rights under other people’s contracts.
A) obligee
B) obligor
C) assignee
D) incidental beneficiary
Jeremy crashes his friend John’s car because he is an incompetent driver. Emily, John’s
sister, is outraged and wants John to sue his friend. John refuses to file a case against his
long-time friend. Which of the following is Emily allowed to do in this situation?
A) She can sue Jeremy on John’s behalf, as she has standing to sue.
B) She can sue Jeremy, provided that John gives his consent.
C) She can file a case in the state court where she will have standing to sue.
D) She cannot sue Jeremy as she has no stake in the outcome of the case.
A shareholder’s authorization of another person to vote the shareholder’s shares at the
shareholders’ meetings in the event of the shareholder’s absence is called a ________.
A) liability
B) dividend
C) proxy
D) quorum
Libel is defined as ________.
A) the unauthorized use of harmful force on a person to effect physical injury
B) a false statement that appears in writing or any other fixed medium
C) the intentional confinement of a person without authority or without the person’s
consent
D) an oral defamation of a person’s character
Which of the following is true of consideration for modifying a sales or lease contract
under the UCC?
A) An agreement modifying a contract needs no consideration to be binding.
B) Modifying a contract requires consideration from the offeree’s side.
C) An offeror who modifies a contract must do so by providing reasonable
consideration.
D) The party providing the consideration must complete it within three months of
acceptance.
________ fees are payments for any land or equipment leased from the franchisor,
billed either as a flat monthly or an annual fee.
A) Lease
B) Royalty
C) Assessment
D) Contingency
Which of the following is a provision of Section 8(a) of the NLRA?
A) It prohibits unions from engaging in unfair labor practices that interfere with a union
election.
B) It makes it an unfair labor practice for an employer to restrain employees from
forming and joining unions.
C) It enables employees to opt out of unions by organizing a decertification election.
D) It permits employees and union officials to engage in union solicitation on company
property.
________ prohibits unfair methods of competition and unfair or deceptive acts or
practices in or affecting commerce.
A) Section 2(b) of the Robinson-Patman Act
B) Section 5 of the Federal Trade Commission Act
C) Section 3 of the Clayton Act
D) Section 2 of the Clayton Act
The ________ is an institution of the EU that has the authority to enact legislation and
to take enforcement actions to ensure member compliance with the treaty.
A) European Union Commission
B) European Parliament
C) European Council
D) European Court of Auditors
Areas that are inundated or saturated by surface water or ground water that support
vegetation typically adapted for life in such conditions are called ________.
A) lagoons
B) gullies
C) wetlands
D) reservoirs
Sally, who has been married to Colton for five years, is seeking a divorce. Colton has a
drinking problem, and he has been physically abusing Sally for the past two years.
Upon receiving Sally’s petition for divorce, Colton threatened Sally with dire
consequences. At the court hearing, Sally and Colton decided to represent themselves,
as they could not afford to hire a lawyer. Sally should typically seek a(n) ________.
A) emancipation
B) annulment
C) at-fault divorce
D) no-fault divorce
Ecuador, Algeria, and the United Arab Emirates are members of the ________.
A) North American Free Trade Agreement
B) Dominican RepublicCentral America Free Trade Agreement
C) Association of Southeast Asian Nations
D) Organization of the Petroleum Exporting Countries
Why is it a good practice for partners to put their partnership agreement in writing?
Explain, in brief, express terms and their significance.
How does the FDA define and regulate cosmetics?
Frank and Melanie enter into a sales contract for a period of six months. After three
months, Frank and Melanie agree to extend the contract for an additional 12 months. In
the context of this scenario, discuss the rule that requires this contract to be in writing at
the time of modification of the contract.
How does the forum-selection clause of an international contract differ from a choice of
law clause?
Define intellectual property and elaborate on its significance and vulnerabilities.
Why are general partners liable for the debts and obligations of the partnership?
Samuel and his friends form an LLC. Samuel, through an agreement, promises to
contribute a personal property to the LLC within a year of the LLC’s operation. Samuel
passes away in an accident a few days after signing the agreement. Will the agreement
still hold? Give reasons in support of your answer.
Compare and contrast mergers and share exchanges and examine the benefits and
drawbacks of each.
Discuss the role of insolvency in contract law with respect to the rights of buyers and
sellers.
What effect can a government judgment have on an antitrust violation case?
What constitutes as just cause for the termination of franchisees? How can such causes
be held unconscionable?
Describe the fair use doctrine and analyze the ambiguities that arise due to its content.
What are the protections offered to an accountant and his or her work papers when the
accountant’s client is facing a court action?
Discuss the legal issues surrounding making a statement of opinion.
Why must a 60-day notice be given to an employer before a strike? How can an
employer prevent an impending strike?
Mary purchases a skirt thinking that it is a silk skirt. In truth, however, it is a satin skirt.
When she discovers that it is not a silk skirt, she tries to return it and get her money
back. What kind of mistake has Mary committed? Can she be excused from the
contract?
What are the three major sources of contract law and how do they affect contract law?