The Worker Adjustment and Retraining Notification (WARN) Act is a federal act that
requires employers with 100 or more employees to give their employees 60 days’ notice
before engaging in certain plant closings or layoffs.
Objective theory of contracts states that the intent to contract is judged by the
reasonable person standard and not by the subjective intent of the parties.
Extortion of private persons is commonly referred to as blackmail.
A bailment for a fixed term cannot be terminated before the end of the term by either
party.
In an agency by ratification, the agent is relieved of any liability for misrepresentation.
In a fully disclosed agency, an agent is not liable on the contract if he or she guarantees
that the principal will perform the contract.
The primary purpose of using a living trust is to avoid probate associated with using a
will.
A sole proprietorship does not pay taxes at the business level.
If a person promises to perform but has not yet done so, no value has been given, and
that person is not an HDC.
In order to claim damages for negligence per se, the plaintiff need not prove that he or
she was within a class of persons meant to be protected by the statute.
Sally and Colton adopted a(n) ________ approach by choosing to represent themselves
in court.
A) settlement
B) pro se divorce
C) arraignment
D) annulment
________ is a mistake made by both parties concerning an object that is important to
the subject matter of a contract.
A) Mutual mistake of value
B) Mutual mistake of material fact
C) Elementary unilateral mistake
D) Fraud by concealment
In a(n) ________ franchise, the franchisor licenses the franchisee to make and sell its
products or services to the public from a retail outlet serving an exclusive geographical
territory.
A) chain-style
B) area
C) distributorship
D) processing plant
What is an executory contract?
A) a contract that cannot be discharged under Chapter 13
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
The ________ states that the intent to contract is judged by the reasonable person
standard and not by the subjective intent of the parties.
A) Restatement of the Law of Contracts
B) Restatement (Second) of Contracts
C) objective theory of contracts
D) common law of contracts
Which of the following is true about a majority decision reached by the U.S. Supreme
Court?
A) All the judges agree as to the outcome and reasoning used to decide a case.
B) A majority of the judges agree as to the outcome but not the reasoning used to decide
a case.
C) A majority of the justices agree as to the outcome and reasoning used to decide a
case.
D) An equal number of judges vote for and against the petitioner and the case remains
undecided.
Good Faith Consultants partnered with QuickFind IT Solutions for a period of six
months. After three months, they wanted to extend the contract by two years. According
to the Statute of Frauds, which of the following is true of the contract?
A) The modification to the duration of the contract should be in writing.
B) A new contract must be formed.
C) The contract can be oral both before and after modification.
D) Only the original contract should be in writing.
Which of the following is true of general partnership?
A) A business should make a profit in order to qualify as a general partnership.
B) The general partners need not be the co-owners of the business.
C) General partnerships can be oral or implied from the conduct of the parties.
D) Charity organizations and schools are mostly formed from general partnerships.
A(n) ________ provision is a provision whereby the court confirms a plan of
reorganization over an objecting class of creditors if certain requirements are met.
A) cram-down
B) acceptance
C) discharge
D) liquidation
________ is a point along a chain of events caused by a negligent party after which this
party is no longer legally responsible for the consequences of his or her actions.
A) Causation in fact
B) Point of reason
C) Point of appropriation
D) Proximate cause
Section 2A-201<1> of the Uniform Commercial Code (UCC) states which of the
following?
A) All lease contracts must be in writing.
B) Lease contracts involving payments of $1,000 or more must be in writing.
C) All sales contracts must be in writing.
D) Sales contracts involving payments of $500 or more must be in writing.
If an instrument is payable to multiple persons using the word “and,” then the
instrument ________.
A) cannot be negotiated any further
B) cannot be negotiated by either party individually
C) can only be further negotiated jointly
D) can only be further negotiated with the signature of the drawer
In which of the following cases is a motivation test used to establish the employee’s
motive?
A) An employee commits a tort to promote the principal’s business, outside work
premises.
B) An employee commits an intentional tort against another employee at work
premises.
C) An employee commits an unintentional tort that helps promote the principal’s
business.
D) An employee assaults another employee due to personal reasons.
________ courts were allowed to give equitable remedies under the English common
law.
A) Merchant
B) Law
C) Chancery
D) Appellate