A party who grants a license is called the licensee.
An arbitration agreement separate from the actual contract cannot be enforced on a
breach of contract.
A default judgment establishes the plaintiff’s liability.
If a patent application is filed but a patent has not yet been issued, the applicant usually
places the words “patent pending” on the article.
When land is sold, any plant life growing on the land is included, unless the parties
agree otherwise.
The judge sits as the trier of fact in jury trials.
Good faith refers to honesty in fact in the conduct or transaction concerned.
An LLC can amend its articles of organization at any time if the amendments have a
majority vote among the members of the LLC.
Only personal defenses and not universal defenses may be asserted against an HDC.
Article 2 of the UCC prescribes a set of uniform rules for the creation and enforcement
of contracts for the sale of goods.
The Uniform Partnership Act is a model act that codifies general partnership law.
If a buyer breaches a sales contract before the risk of loss would normally pass to him,
the risk of loss will remain with the seller.
The corporate citizenship theory contends that corporations owe a duty to promote the
same social goals as individual members of society.
If an instrument arises out of an illegal transaction, it is unenforceable.
A shareholder may not submit a resolution when it concerns the payment of dividends.
Many issuers of securities employ investment bankers, which are independent securities
companies, to sell their securities to the public.
Aiders and abettors are parties who unknowingly assist principal actors in the
commission of securities fraud.
Persons injured by a RICO violation can bring a private civil action against the violator
and recover treble (triple) damages.
An instrument is dishonored when it is presented for payment and payment is refused.
Preferred stock is a type of equity security that is given certain preferences and rights
over common stock.
The followers of Sociological School of jurisprudence are more likely to adhere to
precedents.
Cyber crime refers to crimes that are committed using computers, email, the Internet, or
other electronic means.
Spousal support payments typically terminate once the former spouse remarries and
becomes self-sufficient.
Gift promises lack consideration.
The “maintaining the status quo” function of the law prohibits drug abuse.
A sole proprietorship requires an approval from federal agencies to transfer or sell the
business.
A covenant not to compete is unenforceable, as written, if it is unreasonable.
In 2003, Congress enacted the Dodd-Frank Wall Street Reform and Consumer
Protection Act.
The rule of perfection by possession of collateral requires a financing statement to be
filed.
An auction without reserve is one in which the seller retains the right to refuse the
highest bid and withdraw the goods from sale.
Parties to a contract must have contractual capacity for the contract to be enforceable
against them.
Open terms are permitted into contracts if there is a reasonably certain basis for giving
an appropriate remedy and the parties intended to make a contract.
Which of the following can lead to an annulment?
A) if one of the parties has breached the promise to marry
B) if one or both parties were intoxicated at the time of the marriage
C) if one of the parties has children from a prior marriage that was legally terminated
D) if both parties failed to sign a prenuptial agreement in advance of their marriage
Which of the following is true of a merger?
A) It results in the continued legal existence of every corporation involved in the
process.
B) It occurs when one corporation is absorbed into another corporation.
C) It requires any transfer of title to property between corporations to be formally
conducted by drafting deeds.
D) It arises when one corporation splits into two sister corporations independent of each
other.
The outbreak of a war between the principal’s country and the agent’s country would
lead to a ________.
A) termination by an unusual change in circumstances
B) termination by operation of law
C) termination by impossibility of performance
D) wrongful termination
Three of the largest petroleum refineries in the country have come to an agreement
about what price they would pay to purchase crude oil from sellers. This is an example
of ________.
A) sellers’ illegal per se price fixing
B) sellers’ illegal group boycott
C) buyers’ illegal per se price fixing
D) buyers’ illegal market sharing
What is Chapter 7 discharge?
A) The termination of the legal duty of an individual debtor to pay both secured and
unsecured debts before he or she is granted a court trial.
B) The termination of the legal duty of an individual debtor to pay unsecured debts that
remain unpaid upon the completion of a Chapter 7 proceeding.
C) The cancellation of all debts of a debtor that remain unpaid upon the completion of a
Chapter 13 proceeding.
D) An instruction to the debtor to propose a plan to pay all or a portion of the debts he
or she owes in installments.
While dealing with lawsuits regarding the diversity of citizenship, federal courts should
________.
A) ensure that the dollar amount of the controversy is limited to the value of $75,000
B) ensure that the plaintiff does not transfer the case to a state court
C) ensure that the defendant does not transfer the case to a state court
D) ensure the application of the relevant state law in deciding the case
The computers that constitute the World Wide Web use a standard set of rules known as
________ for the exchange of information.
A) POP
B) POP3
C) HTTP
D) IMAP
Restraints of trade that are unlawful under Section 1 of the Sherman Act if their
anticompetitive effects outweigh their procompetitive effects are known as ________.
A) nonprice vertical restraints
B) group boycotts
C) division of markets
D) resale price maintenance measures
Most franchise agreements permit a franchisor to terminate the franchise ________.
A) at-will
B) after five years of franchising
C) for cause
D) without just cause
Martin, who wants to sell a house he owns, authorizes his concierge, Wilhelm, to find a
potential buyer, and finalize a deal above a stipulated price. Wilhelm contracts Chris, a
real estate broker, and intends him to only find a potential buyer and send them over to
Wilhelm for the sale. Martin then contracts ReNowait Goodhouses, a home
improvement company to renovate the house. ReNowait completes their work and
Martin pays them. Chris then searches for a suitable buyer and finds one in George.
George buys the house and Chris is paid for his services. Who among the following
perform the role of the principal during the land sale transaction?
A) ReNowait Goodhouses
B) George
C) Martin
D) William
Where there is a valid delegation of duties but the delegatee has not assumed the duties
under a contract, the delegation is called a(n) ________.
A) condition precedent
B) declaration of duties
C) express condition
D) discharge
Which of the following is true of utilitarianism?
A) It proposes rules that provide the greatest good for the greatest number of people.
B) It has been criticized for not providing universal ethical rules to guide a person’s
conduct.
C) It proposes universal ethical rules based on consistency and reversibility.
D) It proposes rules that provide the greatest good to society.
Which of the following is true of an unqualified indorsement?
A) The order and liability of the indorsers is presumed to be the order in which they
indorse the instrument, unless otherwise agreed.
B) The first indorser is presumed to be liable for the full amount in the instrument,
unless otherwise specifically agreed.
C) It guarantees payment of the instrument if the maker defaults.
D) It protects subsequent indorsees from liability.
Which of the following is true of an S corporation?
A) The corporation can have no more than 100 shareholders.
B) Only foreign corporations can be an S corporation.
C) They are taxed at the corporate level.
D) The corporation must be a member of an affiliated group of corporations.
Stanley, who owes Milton money, indorses a draft to him with the term “without
recourse.” The instrument later is dishonored. Which of the following types of indorser
is Stanley?
A) a holder
B) an agent
C) an unqualified indorser
D) a qualified indorser
Under the Treaty Clause, the ________ is seen as the agent of the United States in
dealing with foreign countries.
A) Secretariat
B) president
C) U.S. Supreme Court
D) U.S. Senate
The federal and state governments have enacted statutes that regulate the issuance and
trading of securities that are collectively referred to as ________ law.
A) civil
B) real property
C) securities
D) criminal
________ refers to the right of a partner to be reimbursed for expenditures incurred on
behalf of the partnership.
A) Indemnification
B) Proliferation
C) Lucubration
D) Fenestration
The ________ is an assurance that provides that leased premises must be fit, safe, and
suitable for ordinary residential use.
A) assignment of a lease
B) implied warranty of habitability
C) duty to deliver possession
D) zoning ordinance
”A Diamond is Forever” is a famous tagline used by The De Beers Diamond Company.
Which of the following types of intellectual property would this tagline come under?
A) patent
B) trade secret
C) trademark
D) copyright
Quasi in rem jurisdiction is also known as ________ jurisdiction.
A) attachment
B) concealment
C) in personam
D) detachment
Article I of the Constitution establishes the ________ of the federal government.
A) electoral branch
B) legislative branch
C) executive branch
D) judicial branch
Dorothy purchases a chair that was made by Woode Designs, Inc. While making the
chair, the legs were not fixed properly to the base. When Dorothy sits on the chair, it
breaks and she is injured. In a strict liability lawsuit, which of the following can
Dorothy cite as a defect in the chair?
A) failure to provide adequate instructions
B) defect in packaging
C) failure to warn
D) defect in manufacture
Which of the following is the default title conveyed to the buyer in a sale of real estate?
A) life estate
B) servient estate
C) fee simple absolute
D) fee simple defeasible
Which of the following statements is true about strict liability?
A) It is imposed for abnormally dangerous activities.
B) It exempts persons who have not been negligent during the covered activity.
C) It arises from a liability with fault.
D) It holds that the public can be protected from any risk of injury if reasonable care is
taken.
While measuring economic injury, the measure of damages recovered from a
misrepresentation is ________.
A) the actual value of the property
B) the represented value of the property
C) the difference between the value of the property as represented and the actual value
of the property
D) twice the actual value of the property which includes punitive damages
Which of the following is true of LLPs?
A) LLPs are creatures of federal law.
B) The state legislature does not have the authority to amend LLP statutes.
C) Articles of limited liability partnership are statutes that regulate the operation and
dissolution of LLPs.
D) Nonprofessionals cannot use the LLP form of partnership.
Which one of the following scenarios would entitle a reward?
A) a person buying a car after seeing an ad about it
B) a person returning a lost item after seeing an ad about it
C) a seller accepting a bid for an item
D) a seller making an invitation for offers
The ________ is an OSHA standard that requires an employer to provide a work
environment free from recognized hazards that are causing or are likely to cause death
or serious physical harm to employees.
A) general duty standard
B) specific duty standard
C) code of wellness
D) provision of nonhazardous work environment
The National Labor Relations Act of 1935 is also known as the ________ Act.
A) Landrum-Griffin
B) Gompers-Lewis
C) Taft-Hartley
D) Wagner
Explain the effect of Section 14(a) of the Securities Exchange Act of 1934 on proxies.
Which of the following statements best describes direct examination?
A) It involves inspection and verification of all documents related to a trial by the
judge.
B) It involves inspection and verification of all documents related to a trial by the
jurors.
C) It involves questioning of the witnesses by the plaintiff’s attorney.
D) It involves questioning of the prospective jurors by the judge or lawyers of each
party.