A contract is considered to be supported by legal value if the promisor suffers a legal
detriment.
If a delegatee has not assumed the duties under a contract, the delegatee is not liable to
the obligee for nonperformance.
A defendant is protected by the Double Jeopardy Clause if his case reaches a hung jury.
The Federal Trade Commission (FTC) can sue in either the state or federal courts to
obtain compensation on behalf of consumers.
A joint venture resembles a conglomeration, with a parent company and subsidiaries.
An automatic stay refers to the suspension of certain legal actions by creditors against a
debtor or the debtor’s property.
An indictment is a charge of guilt against the defendant.
A(n) ________ refers to an order that directs the subject who has been summoned to
disclose the requested information.
A) administrative subpoena
B) substantive due process
C) procedural due process
D) statement of policy
________ permits issuers to sell up to $5 million of securities to the public during a
12-month period, pursuant to a simplified registration with the SEC.
A) SEC Rule 506
B) Section 12 of the Securities Act of 1933
C) Section 5 of the Securities Act of 1934
D) Regulation A
Kidney dialysis machines are scrutinized for attainment of quality standards under the
Drug Amendment to the FDCA.
Which of the following is considered a real property?
A) a fixture permanently affixed to a building
B) fifty-one percent partnership in a firm
C) a club membership
D) diamond jewelry
Which of the following is enough to prove a violation of Section 10(b) and Rule 10b-5?
A) nonexemption status
B) scienter
C) aiding and abetting
D) negligent conduct
What is imputed knowledge?
A) information collected by a principal prior to engaging in an agency
B) information collected by a principal on an agency
C) information learned by an agent that is attributed to the principal
D) information learned by a principal that is attributed to an agent
An agency by ratification occurs when the principal ________.
A) accepts an unauthorized act created by an unauthorized agent
B) accepts an authorized act created by an authorized agent
C) creates the appearance of an agency that in actuality does not exist
D) accepts an act carried out under the implied authority of an agent
In the context of instruments that are merely promises to pay, which of the following
has primary liability?
A) the person in physical possession of the instrument
B) the drawer of the instrument
C) the drawee of the instrument
D) the payee of the instrument
________ is a rule that limits a defendant’s accountability to his or her equivalent
degree of fault.
A) Privity of contract
B) Due diligence defense
C) Proportionate liability
D) Ultramares doctrine
The bank where the payee or holder of a check has an account is known as the
________.
A) payer bank
B) depository bank
C) intermediary bank
D) private bank
A(n) ________ is a contractual provision that relieves one or both of the parties to a
contract from tort liability.
A) contract of adhesion
B) exculpatory clause
C) duty of restitution
D) fundamental breach
Which of the following legislations was designed primarily to prevent noncustodial
parents from failing to pay required support payments?
A) the Defense of Marriage Act
B) the Family Support Act
C) the Equal Protection Clause
D) the Marriage Protection Act
Under this arrangement, Pam has to pay rent to ________.
A) Donald
B) Chris
C) Dave
D) Chad
In states where an LLC (limited liability company) may be organized by only one
member, ________ can obtain the benefit of the limited liability shield of an LLC.
A) corporations
B) sole proprietors
C) LLPs (limited liability partnerships)
D) general partnerships
A member of the board of directors who is also an officer of the corporation is known
as a(n) ________.
A) inside director
B) ombudsman
C) registered agent
D) shareholder
Harold borrows $20,000 from Alex and signs a note promising to pay Alex this amount
plus interest in one year. Alex negotiates the note to Reese, an HDC. Before the note is
due, Harold declares bankruptcy. According to the discharge in bankruptcy defense,
which of the following is true?
A) Reese can recover from Harold.
B) Reese can recover from Alex.
C) Alex can recover from Harold.
D) Reese cannot enforce the instrument.