In case a corporation’s assets are liquidated, the preferred stockholders are paid before
common stockholders.
Rubber-stamps are not recognized as signing instruments under the Uniform
Commercial Code (UCC).
An insurer will issue an umbrella policy only if a stipulated minimum amount of basic
coverage on other insurance policies has been purchased by the insured.
Under the Magnuson-Moss Warranty Act, aggrieved consumers must assert their
warranty breach claims through the informal dispute-resolution procedure before taking
legal action.
In accordance to the stakeholder interest theory, a corporation must view employees
solely as a means of maximizing shareholder wealth.
An order paper that is indorsed in blank becomes bearer paper.
The statute of limitations begins to run when a product is first sold.
The trademark symbols “TM” and “SM” can be used with marks that have not been
registered.
________ occurs where a principal is liable for an agent’s tortious conduct because of
the employment contract between the principal and agent, not because the principal was
personally at fault.
A) Vicarious liability
B) Negligence
C) Liability with fault
D) Misrepresentation
Which of the following is true of consideration for modifying a sales or lease contract
under the Uniform Commercial Code?
A) An agreement modifying a contract needs no consideration to be binding.
B) Modifying a contract requires consideration from the offeree’s side.
C) An offeror who modifies a contract must do so by providing reasonable
consideration.
D) The party providing the consideration must complete it within three months of
acceptance.
The doctrine of ________ allows the court to order an oral contract for the sale of land
or transfer of another interest in real property to be specifically performed if it has been
partially performed and performance is necessary to avoid injustice.
A) part performance
B) undue performance
C) equitable performance
D) promissory estoppel
________ hears appeals from trial courts.
A) The highest state court
B) A court of record
C) An inferior trial court
D) An intermediate appellate court
Which of the following legislations prevents all protected classes from discrimination in
accommodation?
A) the Rent Stabilization Law of 1969
B) the Americans with Disabilities Act of 1990
C) the Fair Housing Act of 1968
D) the Civil Rights Act of 1866
A ________ is created when a person deposits money in a bank account in his or her
own name and holds it as a trustee for the benefit of another person.
A) resulting trust
B) Totten trust
C) spendthrift trust
D) testamentary trust
The ________ is a federal statute, enacted in 1914, that regulates mergers and prohibits
certain exclusive dealing arrangements.
A) Sherman Act
B) Celler-Kefauver Act
C) Robinson-Patman Act
D) Clayton Act
Marshall is the purchasing agent for DigitoolArt Corporation. His job requires him to
negotiate and execute contracts for purchasing office supplies and equipment for the
corporation. Assume that Bronson, a computer salesperson, pays Marshall a $20,000
kickback to purchase from him computers needed by DigitoolArt Corporation. Which
of the following duties of loyalty has Marshall breached in this scenario?
A) competing with the corporation
B) making a secret profit
C) self-dealing
D) usurping a corporate opportunity
Steve brings his watch to Knell Watches to be repaired. Knell Watches sells and repairs
watches. Steve entrusts his watch at Knell’s until it is repaired. The watch store repairs
the watch, but then sells it to Kevin, who buys the watch with a fraudulent check that
bounced. Kevin then resells the watch to his friend Jonathan, who is unaware of the
stolen nature of the watch. What kind of title did Kevin hold over the watch when he
fraudulently bought the watch?
A) an unequivocal title
B) a conditional title
C) a voidable title
D) a void title
A term in a contract that can reasonably be supplied by the courts is referred to as a(n)
________.
A) intent term
B) unconditional term
C) objective term
D) implied term
Which of the following is true of output contracts?
A) It cannot contain the best-efforts clause.
B) It provides the seller with reduced selling costs.
C) It assures the purchaser that the seller will use his or her best efforts to achieve the
contract’s objective.
D) It assures the seller of a purchaser for all its outputs.
An indorsement whereby the indorser promises to pay the holder or any subsequent
indorser the amount of the instrument if the maker, drawer, or acceptor defaults is
referred to as a(n) ________.
A) competent indorsement
B) promissory indorsement
C) unqualified indorsement
D) qualified indorsement
________ refers to a statute that limits the seller’s liability to a certain number of years
from the date when the product was first sold.
A) Statute of limitations
B) Statute of frauds
C) Statute of general application
D) Statute of repose
QuickMoney LLC is looking to fill its chief executive officer position, as the current
CEO is retiring soon. QuickMoney receives applications for this position from many
persons, including Joe Thomas, an African-American. Mr. Thomas is the best-qualified
applicant for the job. If QuickMoney does not hire Mr. Thomas because he is
African-American, the company has engaged in ________ discrimination.
A) genetic information
B) race
C) color
D) national origin
A(n) ________ requires the respondent to be given proper and timely notice of the
allegations or charges against him or her and an opportunity to present evidence on the
matter.
A) interpretive rule
B) substantive due process
C) procedural due process
D) code of operation
A(n) ________ is the obligation partners owe to use the same level of care and skill that
a reasonable person in the same position would use in the same circumstances.
A) duty to perform
B) duty of care
C) duty to inform
D) duty of obedience
Which of the following would constitute the creation of an express warranty for goods?
A) description of the goods
B) commendation of the goods
C) prior experience with the goods
D) affirmation of the value of the goods
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
Why have checks and balances been built into the U.S. Constitution?
A) to keep a check on the number and frequency of amendments made to the
Constitution
B) to ensure that the judiciary is not biased or corrupt
C) to prevent any one of the three branches of the government from becoming too
powerful
D) to ensure that people of all races and ethnicities are uniformly represented