The statute of repose begins to run when the plaintiff suffers injury.
Common carriers are held to a duty of strict liability.
A person who is insane but not adjudged insane cannot void a contract he or she has
entered into.
An operating agreement is a document that states the terms for converting an existing
business to a Limited liability company (LLC).
The financial institution upon which a check is written is the payee of a check.
The SEC is concerned with regulating issues and trading of securities alone and cannot
regulate the activities of securities brokers and advisors.
Common carriers are not liable for the loss, damage, or destruction of goods caused by
an act of God.
A plaintiff can appeal for the extension of the statute of limitations and sue the
defendant.
Most accounting firms in the U.S. operate as limited liability partnerships (LLPs).
The ECPA is a federal statute that makes it a crime to intercept an electronic
communication at the point of transmission, while in transit, when stored by a router or
server, or after receipt by the intended recipient.
The social contract theory is derived from Rawls’s social justice theory.
In a net lease arrangement, the tenant is responsible for paying rent and property taxes.
The World Wide Web consists of computers that support a standard set of rules for the
exchange of information called Hypertext Transfer Protocol.
A director or corporate officer who does not attend board meetings regularly would be
in violation of ________.
A) self-dealing
B) duty of care
C) duty of loyalty
D) duty of obedience
If an employee is injured in an automobile accident while she is driving to an
off-premises restaurant during her personal lunch hour, the injury is ________.
A) covered by workers’ compensation insurance
B) not covered by workers’ compensation
C) covered by workers’ compensation
D) not covered by employee’s medical insurance
Melissa owes her bank money for credit card bills. For the past two weeks, debt
collectors have been harassing her for bill payment by coming to her workplace. Her
boss tells her to not have such meetings at the workplace, and despite requesting the
collection agency not to do so, the collectors continue to visit her at her workplace.
Which of the following Acts would protect Melissa from such harassment?
A) Fair and Accurate Credit Transactions Act
B) Fair Credit Reporting Act
C) Fair Debt Collection Practices Act
D) Fair Credit and Charge Card Disclosure Act
Gem’s principal asked her to pick up his dry-cleaning on her way to work. After she had
picked up the dry-cleaning and was driving to work, Gem knocked over an old man
crossing the street because she did not apply the brakes in time. Under the theory of
________, Gem’s principal is liable to the injured man.
A) intentional tort
B) negligence
C) liability with fault
D) vicarious liability
Helen works as the vice president of Gotspeed Corporation, a company that
manufactures and markets sports shoes. Nestor, a private cobbler, designs a new model
of shoes that help a user’s feet grip the shoe better, and he calls it the Anklator. Nestor’s
friend fixes an appointment for him with Helen to present his shoe model for possible
adoption by Gotspeed. Instead of bringing the opportunity to Gotspeed’s board of
directors and the corporation, Helen pays Nestor’s asking price and purchases the
Anklator model herself. Helen leaves Gotspeed Corporation and forms her own
company that manufactures and markets the Anklator shoe models. Which of the
following is the the duty of loyalty breached by Helen?
A) self-dealing
B) usurping a corporate opportunity
C) making a secret profit
D) competing with the corporation
Who is the drawee of a check?
A) the drawer of the check
B) the financial institute where the drawer has an account
C) the party to whom a check is written
D) the financee to whom the check is drawn
Ethan purchases a house for $250,000. He borrows $200,000 from StarCross Bank and
gives the bank a mortgage on the house for this amount. StarCross Bank fails to record
the mortgage. Ethan then applies to borrow $200,000 from Pentalon Bank. Pentalon
Bank reviews the real estate recordings and finds no mortgage recorded against the
property, so it lends Ethan $200,000. Pentalon Bank records its mortgage. Later, Ethan
defaults on both loans. In this case, which of the following would be true in case of the
possible foreclosure on the collateral?
A) StarCross Bank can foreclose because they made the first loan.
B) Pentalon Bank can foreclose because they recorded of the mortgage.
C) The collateral has to be returned to Ethan since there is a violation of the recording
statute.
D) None of the parties involved can claim ownership of the collateral as it passes into
the public domain.
A ________ is a term for a mark that has become a common term for a product line or
type of service and therefore has lost its trademark protection.
A) service mark
B) orphan work
C) generic name
D) private brand
Which of the following is true about a surety’s liability to pay in a surety arrangement?
A) The surety is secondarily liable for payment.
B) The surety is primarily liable for payment.
C) The principal debtor must be in default before the surety can be approached.
D) The surety can only be approached as a last resort to the creditor.
The ________ is a federal statute that provides for the automatic wage withholding of
child support payments from a noncustodial parent’s income.
A) Marriage Protection Act
B) Equal Protection Clause
C) Family Support Act
D) Defense of Marriage Act
The ________ is a body that hears cases that nations refer to it as well as cases
involving treaties and the United Nations (UN) Charter.
A) Security Council
B) General Assembly
C) International Court of Justice
D) International Monetary Fund
A ________ is an instrument that evidences a borrower’s debt to the lender for a real
property.
A) note
B) consignment
C) collateral
D) deed of trust
Bobby voluntarily enrolls in a skydiving course at OpenSkies Pvt. Ltd., an adventure
firm. He signs a contract that relieves OpenSkies of liability. After receiving proper
instruction, he jumps from an airplane. Unfortunately, Bobby is injured when he could
not steer his parachute toward the target area while landing. He sues the parachute
center for damages. But the court found that the contract protected OpenSkies from
damages, as Bobby had voluntarily joined the course knowing all the risks involved.
What kind of contractual provision protected OpenSkies from having to pay Bobby
damages?
A) noncompete clause
B) exculpatory clause
C) duty of restitution
D) disaffirmance
Which of the following is true of workers’ compensation?
A) Families of workers cannot claim workers’ compensation despite the death of the
worker.
B) Workers’ compensation is only awarded for injuries resulting from the job.
C) The claim for workers’ compensation must be filed with the employer.
D) Workers’ compensation is a fixed amount throughout the country.
If a minor ratifies a contract while still being a minor, ________.
A) the contract can still be disaffirmed by the minor
B) the minor is bound by the terms of the contract
C) the minor is exempt from the duty of restitution
D) the minor has to hold the adult in status quo in case of disaffirmance
What is an abstract of title?
A) a recordation of a deed that gives constructive notice to the world of the owner’s
interest in a property
B) a judicial proceeding where a certificate of title is awarded to the real owner to
property
C) a form of insurance obtained for losses caused by undiscovered defects in title
D) a chronological history of the chain of title and encumbrances affecting a property
Kimberley, a merchant-seller in Kansas, had an oral contract to sell goods to Jane, a
merchant-buyer in Memphis for $100,000. Two days after contracting, Kimberley sends
a sufficient written confirmation to Jane of the agreed-upon transaction. Jane, who has
reason to know the contents of the written confirmation, fails to object to the contents
of the confirmation immediately. Two weeks after receiving the written confirmation,
Jane receives a delivery of the goods from Kimberley. Jane immediately sends an
objection to the confirmation to Kimberley. Which of the following is true of the
contract between Kimberley and Jane?
A) The Statute of Frauds can be raised against the contract because a letter of objection
was sent to the offeror.
B) The offer is valid as the offeree knew the contents of the confirmation and did not
object within 10 days.
C) The contract is void as the offeror did not receive a letter of confirmation from the
offeree for delivery.
D) The Statute of Frauds can be raised because the offeree did not sign the contract.
________ set an upper limit on the interest rate that can be charged on certain types of
loans.
A) Federal banking reforms
B) State usury laws
C) Congressional committees
D) Chambers of commerce
Which of the following is true about a special power of attorney?
A) It is an implied form of the power of attorney.
B) It limits the agents powers to those enumerated in the agreement.
C) It allows the agent to act in any matters on the principal’s behalf.
D) It only allows certified lawyers to be agents.
A(n) ________ defense is a type of defense that can be raised against enforcement of a
negotiable instrument by an ordinary holder but not against an HDC.
A) discharge in bankruptcy
B) extreme duress
C) personal
D) universal