The check collection process, which may involve multiple banks, is governed by
Revised Article 3 of the UCC.
Most Statutes of Frauds permit lease contracts that last for less than five years to be
orally contracted.
Instruments that are payable on demand are called order instruments.
The term ‘sales proceeds” refers to the resulting assets from the sale, exchange, or
disposal of collateral subject to a security agreement.
The end of the life of the limited partnership, as specified in the certificate of limited
partnership, causes the dissolution of a limited partnership.
Material alteration consists of adding to any part of a signed instrument, removing any
part of a signed instrument, or making changes to the dollar amount of the instrument.
Under the common law, a written contract must be signed by the party against whom
enforcement is sought.
If the assignee fails to provide notice of assignment to the obligor and the obligor
continues to render performance to the assignor, the assignee can sue the obligor.
Under this arrangement, ________ is obligated to pay rent to Chad.
A) Donald
B) Dave
C) Pam
D) Chris
A famous actor signs a contract with a movie studio where she agrees to star in a
comedy. Which of the following is true of assignment of such a contract?
A) The movie studio can assign the contract to another movie studio.
B) The movie studio is at liberty to include the actor in a different movie.
C) If the actor is injured, she can assign the contract to another popular actor.
D) Both the actor and the studio can agree that their contract can be assigned.
The ________ doctrine says that if the property a testator leaves is insufficient to satisfy
all the beneficiaries named in a will and there are both general and residuary bequests,
the residuary bequest is paid last.
A) ademption
B) inter vivos
C) abatement
D) adjournment
Property that an owner has discarded with the intent to relinquish his or her rights in it
is known as ________.
A) real
B) lost
C) mislaid
D) abandoned
Stare decisis is the doctrine of ________.
A) providing proof to assert a fact in court
B) adhering to legal precedent
C) separating powers between state and religion
D) ensuring all legal rights are provided to a person when otherwise deprived of them
The ________ requirement of negotiable instruments says that negotiable instruments
must be able to be easily transported between areas.
A) portability
B) permanence
C) signature
D) transparency
The party to whom a duty is owed is the ________.
A) delegator
B) delegatee
C) obligor
D) obligee
A landlord-tenant relationship is characterized by the ________.
A) transfer of title to the tenant
B) receipt of a nonfreehold estate by the tenant
C) creation of a future interest for the tenant
D) free simple absolute ownership of the tenant
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 ________ is a federal statute that permits the SEC to obtain a civil penalty of up to
three times the illegal benefits received from insider trading.
A) Securities Act
B) Securities Exchange Act
C) Insider Trading Sanctions Act
D) SEC Rule 506
Sue, a resident of the state of New York, is visiting her aunt in Iowa. On her way, her
car is hit by Jerry, a resident of the state of Iowa who is drunk. Sue is injured in the
accident. Which of the following actions is Sue allowed to take?
A) Sue can sue Jerry and bring the case to Iowa state court provided that the dollar
amount of the controversy exceeds $75,000.
B) Sue can file a case against Jerry in the New York state court as she is a resident of
that state.
C) Sue can file a case against Jerry only in the Iowa state court as this is a matter that
involves state negligence law.
D) Sue can sue Jerry and bring the case to Iowa federal court as this is a case that
involves diversity of citizenship.
Uploading copyrighted material to an unauthorized web site by a non-copyright holder
would count as an act of copyright infringement under the ________.
A) Digital Millennium Copyright Act
B) Berne Convention Act
C) Sonny Bono Copyright Term Extension Act
D) No Electronic Theft Act
Which of the following statements is true of reciprocal wills?
A) They can be held invalid as to one testator but not the other.
B) They are to be executed as one will with mutual terms.
C) Any will that is executed by two or more testators is a reciprocal will.
D) They cannot be unilaterally revoked after one of the parties has died.
Minksine Corporation employs Sandy as its marketing manager. Sandy is driving her
sedan to attend a meeting with a client on behalf of her employer. On her way to the
meeting, Sandy is involved in an automobile accident that is caused by her negligence.
Several people are seriously injured in the accident. Which of the following is true of
this case?
A) Sandy is solely liable for damages caused by the accident.
B) The injured people cannot recover damages from Sandy.
C) Minksine Corporation is liable for the injuries caused by Sandy.
D) The injured people can only claim medical reimbursement from Minksine
Corporation.
A crime that is committed using computers, e-mail, the Internet, or other electronic
means is commonly referred to as ________.
A) larceny
B) cybercrime
C) forgery
D) mail fraud and wire fraud
Which of the following is true for a “perfect tender rule” delivery?
A) The seller can reject delivery of certain parts of the goods.
B) The buyer can only reject parts of the goods and not the whole shipment.
C) The buyer can seek remedies for accepting nonconforming goods.
D) The seller can seek remedies for noncorforming goods that were accepted by the
buyer.