__________ of the federal environmental laws carry criminal penalties for violations.
a. All
b. Most
c. Very few
d. None
In which of the following scenarios is the agent exposed to the greatest risk of liability?
a. disclosed principal and authorized contract
b. undisclosed principal and authorized contract
c. partially disclosed principal and authorized contract
d. authorized receipt of money from third person remitted to disclosed principal
Substantive law:
a. specifies the steps to follow to enforce legal rights.
b. concerns equitable relief only.
c. creates, defines, and regulates rights and liabilities.
d. draws solely on English legal principles.
The most recent addition to the American governmental structure is the:
a. executive branch.
b. administrative agency.
c. judicial branch.
d. legislative branch.
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.
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.
In general, a mortgagor is under a duty to:
a. make improvements to the mortgaged property.
b. insure the property.
c. pay taxes and assessments on the property.
d. reimburse the mortgagee for expenditures made by the mortgagee for valuable and
lasting improvements.
Disclaimers of liability are valid when the circumstances are such that it is not
reasonable to expect the accountant to stand behind certain data.
Consumer protection statutes and regulations do not protect against:
a. deceptive advertising.
b. the consumer’s own negligence.
c. unsolicited credit cards sent to creditworthy consumers.
d. unreasonable methods of debt collection by debt collection agencies.
Plaintiffs can successfully subpoena Internet Service Providers (ISPs) to obtain the
identify of individuals who make defamatory remarks:
a. in all cases.
b. only when the information posted is false.
c. only when the information posted is true.
d. ISPs are never required to disclose identity.
The principal must:
a. perform the contract according to its terms.
b. compensate the agent for services.
c. indemnify the agent for loss in some circumstances.
d. all of the above.
Due process rights apply to:
a. individuals only.
b. corporations only.
c. both individuals and corporations.
d. individuals, but only in their official capacity within a business.
Before an agency can begin rulemaking proceedings it must be given jurisdiction:
a. by congressional enactment in the form of a statute.
b. granted by an executive order of the President of the United States.
c. from the United States Supreme Court.
d. none of the above.
A hotelkeeper’s lien on the baggage of a guest is terminated when:
a. the guest checks out of the hotel.
b. the guest pays the hotel bill in full.
c. the hotelkeeper posts a notice to limit liability.
d. all of the above.
A copyright bestows upon the creator of an artistic or literary work a federal statutory
right to exclusively:
a. use the work.
b. reproduce the work.
c. display the work.
d. all of the above.
In order to obtain a court order enjoining a competitor from using your trademark, it is
necessary to show that:
a. you invested a certain level of resources to develop the mark.
b. the competitor is making unfair profits from use of the mark.
c. the competitor’s use of the mark risks confusing the public.
d. all of the above.
Which of the following statements is true?
a. Auditors are always eligible for whistleblower awards.
b. Auditors are only eligible for whistleblower awards if they report information to the
board of
directors and the board fails to take action.
c. Auditors are only eligible for whistleblower awards if they report conduct by a
company that is
intended to inhibit an SEC investigation.
d. Auditors are never eligible for whistleblower awards.
Slander of title and trade libel are collectively known as product __________.
a. Divestiture
b. Disparagement
c. Dilution
d. Diversion
Professionals who fail to exercise normal care and skill in the performance of a contract
for their services may be sued for a special type of breach described as:
a. sub par performance.
b. illegal practice.
c. malpractice.
d. competence reservation.
Which of the following is not a third-partybeneficiary contract?
a. a contract in which A hires B to give A’s niece piano lessons
b. a contract to repair sewers in front of Macy’s Department Store
c. a life insurance contract with a named beneficiary
d. a contract between X and Y for Y to install a new door on Z’s home
Odometer fraud laws:
a. impose the same standards on both private sellers and auto dealers.
b. allows the buyer to collect twice the actual loss from the fraud.
c. limits the total loss the buyer can collect to $1,500.
d. all of the above.
Crimes are generally defined and their punishments specified by:
a. trial court judges.
b. appellate judges.
c. codes and statutes.
d. the United States Constitution.
A __________ is a combination of co-ownership and individual ownership.
a. cooperative
b. residential lease
c. commercial lease
d. condominium
The contact rule applies in which of the following states?
a. Alabama
b. Indiana
c. New York
d. All of the above
__________reserve auctions are those that give the auctioneer the right to withdraw the
goods from the sale process if the bids are not high enough.
a. Qualified
b. Restricted
c. With
d. Without
Under the Revised Uniform Limited Partnership Act, a limited partner may contribute:
a. cash only.
b. property only.
c. services only.
d. cash, property, and services.
Racketeering is defined as:
a. using money to influence public officials.
b. using money to influence employees of competitors.
c. using money derived from illegal activities to invest in legitimate businesses.
d. using money to influence foreign officials.
If a check is made payable to Paolo, and Paolo signs on the back of the check, Paolo is:
a. the payee and the indorser.
b. the drawee and the indorser.
c. the payee and the endorsee.
d. only the indorser.
The registration process under Section 5 of the 1933 act is divided into three time
periods. In order, they are:
a. waiting, prefiling, and posteffective.
b. waiting, prefiling, and executory.
c. prefiling, waiting, and posteffective.
d. prefiling, executory, and posteffective.
When a carrier accepts goods for land shipment, it ordinarily issues to the shipper a(n):
a. bill of lading.
b. intent to transport memorandum.
c. warehouse receipt.
d. trust receipt.
Under Title VII, whites are not protected against discrimination because of race and
color.
When improper collection methods are used, it is no defense to the creditor that the
improper acts were performed by an agent, an employee, or any other person acting on
behalf of the creditor.
When property is transferred to a trust, the trustee has legal title and the beneficiary has
equitable title.
Tom was a tall man who operated a successful restaurant that he owned. He believed
that tall people commanded more respect in a restaurant. Accordingly, he never hired a
waiter or waitress who was less than six feet tall. Because of this, he had seventeen
waiters and no waitresses working at the restaurant. Lucinda, a woman less than six feet
tall, applied for a job as a waitress and was not hired. Later, Lucinda learned that a man
who was over six feet in height was hired to fill the position. After a few inquiries, she
learned of Tom’s height requirements and alleged that she was the victim of illegal
discrimination. Decide.
A crime consists of three elements: the mental state, the intent, and the act.
A person may be held criminally liable for acts committed by another.
Having a large percentage of the market is not necessarily a monopoly.
A bill of lading will be negotiable if its terms are that the goods are to be delivered to
“bearer” or to “the order of” a named person.
Under the General Agreement on Tariffs and Trade (GATT), the principle of trade
without discrimination is embodied in the most favored nation clause.
To make a valid will, the testator must have testamentary capacity.
A seller’s inability to obtain from any supplier the goods called for by the contract
generally discharges the contract for impossibility of performance.
Libel is the printed equivalent of the spoken form of defamation known as slander.
An auto dealer who does not actually know of a roll-back can use lack of knowledge as
a defense against odometer fraud, regardless of the condition of the car.
Real property includes land and all rights in land.
Women who are unable to work as a result of pregnancy, childbirth, or related medical
conditions must be provided the same benefits as all other workers. Such benefits
include temporary disability insurance, long-term disability insurance, and sick leave.
Small children are afforded additional protection against the trespass rule through the
“attractive nuisance” doctrine.
A contract obtained by physical duress is void.
“Permissive” subjects of bargaining include seniority provisions, promotions, layoff and
recall provisions, no-strike no-lockout clauses, and grievance procedures.