A manager of a manager-managed LLC is appointed by ________.
A) the secretary of state
B) a vote of a majority of the members
C) a unanimous vote of the members
D) a unanimous vote of the shareholders
________ is a rule that states that a minor is obligated only to return the goods or
property he or she has received from the adult in the condition it is in at the time of
disaffirmance.
A) Duty of restoration
B) Duty of restitution
C) Infancy doctrine
D) Emancipation doctrine
An agreement that requires selling shareholders to sell their shares to the other
shareholders or to the corporation at the price specified in the agreement is referred to
as ________.
A) right of refusal
B) voting trust
C) buy-and-sell agreement
D) proxy
________ is a licensing statute with the primary purpose of increasing earnings for the
government.
A) Usury statute
B) Ratification statute
C) Regulatory-licensing statute
D) Revenue-raising statute
A(n) ________ is a person who discloses material nonpublic information to another
person.
A) issuer
B) tippee
C) grantor
D) tipper
Under the ________, a plaintiff must be less than 50 percent responsible for causing his
or her own injuries.
A) contributory negligence
B) merchant protection statute
C) attractive nuisance doctrine
D) partial comparative negligence doctrine
________ are companies that provide consumers and businesses with access to the
Internet.
A) ISPs
B) BPOs
C) DSLs
D) IPOs
What is a similarity between a branch office and a subsidiary of a multinational
corporation?
A) Both are considered as separate legal entities by the laws of the countries involved.
B) Both have liability shields present between them and the parent company.
C) Both can be setup in a foreign land to run the parent company’s business.
D) Both are wholly liable for their torts.
According to the 2005 bankruptcy act, when is a debtor granted Chapter 7 relief?
A) six years following Chapter 11 relief
B) four years following Chapter 11 relief
C) six years following Chapter 12 relief
D) three years following Chapter 13 relief
The threat of immediate harm or offensive contact is termed as ________.
A) battery
B) assault
C) disparagement
D) libel
Which of the following contracts is required to be in writing under the Statute of
Frauds?
A) a guaranty contract
B) a sale of goods for $200
C) a lease of goods with payments of $100
D) an executed oral contract
When shareholders of a company wish to meet for the sole purpose of electing a board
of directors, they will tend to hold a(n) ________ shareholders’ meeting.
A) annual
B) special
C) emergency
D) extraordinary
Payments made by one divorced spouse to the other divorced spouse are collectively
referred to as ________.
A) debt money
B) trust
C) estate
D) alimony
Which of the following elements constitutes an affirmative defense by an employer
whose employee has suffered sexual harassment at the workplace?
A) The plaintiff-employee was harassed by other employees who are no longer
employed by the employer.
B) The employer had no knowledge about the sexual harassment faced by the
plaintiff-employee until a court notice was served on the employer.
C) The plaintiff-employee failed to take advantage of any preventive or corrective
opportunities provided by the employer.
D) The plaintiff-employee misinterpreted words or actions by the employer or his
employees which were not intended to cause sexual harassment.
What is the role of a financing statement in a consignment if the consignor files it?
A) It protects the consignor from bearing a risk of loss for the goods.
B) It protects the consignor from possible payment revocation by the consignee.
C) It gives the buyer’s creditors claim over the goods.
D) It gives the seller’s creditors claim over the goods.
Stock that permits a corporation to buy back the preferred stock at some future date is
known as ________ stock.
A) cumulative preferred
B) participating preferred
C) convertible preferred
D) redeemable preferred
During an arraignment proceeding, the accused is informed of the charges and asked to
enter a plea.
Which of the following is true of plea bargain process?
A) A defendant waives the right to a jury trial and the judge determines guilt or
innocence.
B) A defendant convicted of a crime pleads for a lighter sentence in exchange for good
behavior and community service.
C) A defendant pleads guilty to a lesser offense than charged in exchange for receiving
a lighter sentence.
D) A defendant waives certain constitutional rights in exchange for a lighter sentence.
Which of the following is true of financing statements?
A) They cannot be electronically filed.
B) They are effective for one year from the date of filing.
C) They cannot be extended for another term before expiry.
D) They are available for review by the public.
Which of the following is true of antitrust laws?
A) Antitrust laws are fixed and unchangeable.
B) Each new administration adopts a different policy for enforcing antitrust laws.
C) Federal antitrust laws provide for government lawsuits and exclude private lawsuits
from their purview.
D) Treble damages cannot be sought in antitrust lawsuits.
In which of the following types of franchise does a franchisor provide a secret formula
or process to the franchisee?
A) chain-style franchise
B) area franchise
C) distributorship franchise
D) processing plant franchise
The ________ is a rule which states that judges of one country cannot question the
validity of an act committed by another country within that other country’s borders.
A) doctrine of sovereign immunity
B) act of state doctrine
C) Colgate Doctrine
D) Noerr Doctrine
Article 2 (Sales) and Article 2A (Leases) of the ________ are intended to provide clear,
easy-to-apply rules that place the risk of loss of the goods on the party most able to
either bear the risk or insure against it.
A) Law Merchant
B) Uniform Sales Act
C) Uniform Commercial Code
D) common law
Which of the following is true of trade secrets?
A) They are used by their owners to set themselves apart from their competitors.
B) They are widely known and are considered common knowledge in the market.
C) They are suspect to lawful appropriation through the use of industrial espionage.
D) They are vulnerable to unlawful misappropriation through the use of reverse
engineering.
According to the Statute of Wills, which of the following is a requirement for making a
valid will?
A) A will cannot be handwritten.
B) A will must be in writing.
C) The testator’s signature must appear at the beginning of the will.
D) The witness to a will must reside in the same jurisdiction as the testator.
Which of the following statements is true of a limited partnership?
A) The creation of a limited partnership involves an informal procedure.
B) The creation of a limited partnership should be kept confidential and not disclosed to
the public.
C) A person cannot be both a general partner and a limited partner in the same limited
partnership.
D) A limited partnership agreement cannot waive the right of partners to approve the
admission of new general partners.
A(n) ________ defense is a type of defense that can be raised against enforcement of a
negotiable instrument by an ordinary holder, but not against an HDC.
A) discharge in bankruptcy
B) extreme duress
C) personal
D) universal
Which of the following is true of registration statements?
A) A registration statement must be accompanied by financial statements certified by
certified public accountants.
B) A registration statement once submitted cannot be amended.
C) The SEC judges the merits of the securities based on the registration statement.
D) The registration statement need not reveal how a company plans on using the
proceeds from the offering.
Which of the following best describes arraignment?
A) It is a document issued by a grand jury for the charge of having committed a crime.
B) It is a document issued by a magistrate for the charge of having committed a crime.
C) It is a proceeding in which the accused is informed of the charges and asked to enter
a plea.
D) It is a proceeding in which the accused enters into negotiations with the government
prior to trial.
What was the doctrine of caveat emptor in sales or lease contracts?
A) It was a law that balanced risk of loss between seller and buyer.
B) It was a law that stated the risk of loss was completely on the buyer.
C) It was a law that stated the risk of loss was completely on the seller.
D) It was a law that required no risk of loss between seller and buyer.
Synesia Infotech acquires Nialand Microchips by absorbing the company and acquiring
its title to property. As a result, Nialand ceases to exist as a legal company. This
combination is an example of a ________.
A) supramajority
B) merger
C) share exchange
D) proxy
If a drawer and a payee or holder have accounts at different banks, the payer bank and
depository bank are not the same bank. In this case, the check is called a(n) ________.
A) non-negotiable instrument
B) presentment warranty
C) stale check
D) on them item