Trademarks or service marks may be registered if they utilize terms that are:
a. suggestive of characteristics of the product or service to which they relate.
b. fanciful, arbitrary, or coined.
c. descriptive and have acquired a known secondary meaning linked to a product.
d. all of the above.
Part of every whole life insurance premium covers the cost of insurance. The remainder
of the premium is devoted to the investment component of the policy, which builds up
over time to its:
a. reimbursement point.
b. cash surrender value.
c. culmination value.
d. return point.
Which of the following is a permissive subject of bargaining as opposed to a mandatory
subject of bargaining?
a. wages
b. hours
c. benefits for already retired workers
d. no-strike no-lockout clauses
Which of the following factors do not affect negotiability of an instrument?
a. A provision specifying the collateral that secures the debt.
b. The antedating of the instrument..
c. The omission of a date of execution.
d. None of the above affect negotiability.
To be eligible for FMLA leave, an employee must have been employed by a covered
employer for at least __________ months and have worked at least __________ hours
during the 12-month period preceding the leave.
a. 6; 1,250
b. 6; 1,500
c. 12; 1,250
d. 12; 1,500
A contract under which one or both parties have not yet fully performed is termed a(n):
a. void agreement.
b. executory contract.
c. executive contract.
d. executed contract.
An insured person is generally allowed, by policy provision or statute, a grace period of
what length of time in which to make the payment of a premium due on a life insurance
policy?
a. 14 to 15 days
b. 30 to 31 days
c. 60 to 61 days
d. 90 days
Which of the following is not illegal?
a. an office football “pool” with a cash entry fee and cash prize
b. a raffle with an entry fee to win a car
c. a “giveaway” to every tenth person who buys meat at a butcher shop
d. a “giveaway” to every tenth person entering a department store
The validity of a contract is not affected by:
a. the effect of the contract on the community.
b. unconscionability.
c. the absence of good faith.
d. the fact that the contract turned out to be a bad bargain for one of the parties.
A landlord has the right to enter a leased premises without notice:
a. for emergency purposes.
b. for repairs and evaluations.
c. both a. and b.
d. none of the above.
A payee has no rights in an instrument until:
a. the drawer or the maker has delivered the instrument to the payee.
b. an acceptor has been established.
c. an accommodation party has signed the instrument.
d. a guarantor has signed the instrument.
A said to B, “I’ll give you $100 for that bracelet.” B replied, “$135.” A said, “No
thanks.” B then said that B accepted the $100, but A was no longer interested and said
there was no contract. B insists there is a contract. Result?
a. A’s offer of $100 was open and accepted by B, thereby forming a contract.
b. B’s counteroffer of $135 terminated A’s offer of $100.
c. B’s statement, “$135” was a negotiating statement that did not terminate A’s original
offer of $100.
d. A’s offer of $100 was irrevocable.
If a provision in an insurance policy is ambiguous:
a. it is interpreted in favor of the insurer because the insured could have rejected the
policy.
b. it is interpreted against the insurer.
c. parol evidence is admitted to show what was intended.
d. the policy is declared void and the insurer is required to return all premiums to the
insured.
State statutes designed to protect the public from the sale of worthless stocks and bonds
are called:
a. antifraud acts.
b. blue sky laws.
c. clear sky laws.
d. none 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.
The order or bearer character of the paper determines how it may be:
a. assigned.
b. sold.
c. negotiated.
d. all of the above.
When the filing of a financing statement is defective:
a. the security interest is lost.
b. the filing fails to perfect the security interest.
c. the security interest is perfected through the court’s application of equitable
principles.
d. the public notice of the creditor’s interest is still effective.
Comparative negligence:
a. has been rejected by most of the states.
b. allows a comparison of negligence between plaintiff and defendant.
c. only applies when the plaintiff has signed a release.
d. is a bar to recovery under common law.
A bill of lading that consigns the goods “to bearer” is called a:
a. nonnegotiable bill of lading.
b. straight bill of lading.
c. negotiable bill of lading.
d. common bill of lading.
Federal law __________ conflicting state regulation when a federal law regulates that
particular subject.
a. coincides with
b. is subordinate to
c. parallels
d. preempts
Statements or declarations of an agent:
a. will not bind the principal.
b. will bind the principal if the statements were made by an agent while transacting
business within the scope of agency authority.
c. will not bind the principal if made after performance of the transaction concerned.
d. none of the above.
The type of patent that may be granted to developers of new and non-obvious
ornamental features of manufactured articles is called a(n):
a. design patent.
b. functional or utility patent.
c. improvement patent.
d. plant patent.
A taker of an instrument who is a holder in due course at the time of the transfer but
who thereafter learns of a defense:
a. becomes a holder through a holder in due course.
b. becomes an ordinary holder.
c. remains a holder in due course.
d. becomes an assignee.
A letter of credit:
a. is an advance arrangement for financing.
b. is used only in domestic sales.
c. involves only two parties.
d. all of the above.
Cumulative voting:
a. decreases the voting power of minority shareholders.
b. is the normal method for shareholder voting on corporate matters.
c. generally is required or allowed in the election of corporate directors.
d. is a right given to participating preferred shareholders.
Holders of automobile dealership franchises are protected from bad faith termination of
their dealerships by the:
a. Sherman Antitrust Act.
b. Robinson-Patman Franchise Act.
c. Automobile Dealers’ Day in Court Act.
d. Franchise Holder Protection Act.
The concept of equal protection of the law:
a. applies to both state and federal governments.
b. prohibits any classifications whatsoever.
c. applies only to conduct by private parties.
d. does not permit reasonable classifications.
In order to establish the tort of false imprisonment, a person must show imprisonment
for:
a. any amount of time.
b. at least one minute.
c. at least ten minutes
d. at least one hour.
An offer is terminated upon rejection by the offeree unless:
a. the period of time for which the offeror agreed to keep the offer open has not yet
expired.
b. the offeror renews the offer.
c. the offeree revokes the rejection.
d. the offeree makes a counteroffer.
A limited liability partnership must include which of the following terms in its name?
a. LLP
b. limited liability partnership
c. either a. or b.
d. neither a. nor b.
A covenant that passes with the land so that whoever owns the land is bound by or
entitled to the benefit of the covenant
a. is a covenant of seisin.
b. is a covenant of further assurances.
c. is a covenant of quiet enjoyment.
d. is said to run with the land.
A showing that an invention as a whole would have been obvious to a person of
ordinary skill in the art when the invention was patented is called subsequent art.
The Export-Import Bank (EX-IM Bank) is an international agency.
All courts have original jurisdiction.
The Foreign Corrupt Practices Act applies to businesses with their principal offices
located in the United States.
A condominium is a combination of co-ownership and individual ownership.
Debtor’s exemptions are provided under federal law and thus are the same in each state.
When a sales contract is broken by the buyer, the seller has only the remedies of lien
and resale available.
A writing required by the statute of frauds may be a signed note or memorandum.
A corporation may be an incorporator of another corporation.
The warranty liability of a qualified indorser is the same as that of an unqualified
indorser.
An administrative agency is barred from examining the records of a business enterprise
by the constitutional guarantee against unreasonable searches and seizures.
A holder having the rights of a holder in due course is subject to the defense of fraud in
the inducement.
The intention to ratify an unauthorized act may be expressed by words or conduct.
Self-help repossession of collateral upon a buyer’s default is contrary to public policy
and never is allowed.
Offers, acceptances of offers, and revocations of offers are all effective when mailed in
a properly-addressed envelope bearing the proper amount of postage.