If the landlord recovers from the assignor, the assignor has no course of action to
recover from the assignee.
A trademark is only issued if the registrant proves he has used the mark in commerce.
In a draft transaction, the payee or the drawer is allowed to freely transfer drafts as a
negotiable instrument to another party.
In a contingent fee contract, the principal must pay the agent prior to the completion of
the agency.
The court-appointed guardian is the only person who has the legal authority to enter
into contracts on behalf of a person who has been adjudged insane.
To recover for strict liability, the injured party need not show that a product was
defective.
The UCITA provides rules for contracts involving computer information transactions
and software and information licenses.
The median income test is a bankruptcy rule that states that if a debtor’s median family
income is at or below the state’s median family income for a family the same size as the
debtor’s family, the debtor can receive Chapter 7 relief.
A corporation in the United States that has been incorporated in another country is
referred to as a(n) ________ corporation.
A) foreign
B) domestic
C) onshore
D) alien
Which of the following partners in a limited partnership invest capital, manage the
business, and are personally liable for partnership debts?
A) specific partners
B) limited partners
C) general partners
D) sole proprietors
What is “course of dealing” when interpreting the express terms of a written statement?
A) the previous conduct of the parties regarding the contract in question
B) the conduct of the parties in prior transactions and contracts
C) the conduct of contractual parties with parties not involved in the contract
D) any practice of dealing that is regularly observed or adhered to in an industry
Which of the following is true of shareholders?
A) They cannot enter into contracts that bind the corporation.
B) They cannot vote to elect the board of directors.
C) They cannot take active charge in deciding fundamental changes in the corporation.
D) They are considered agents of the corporation.
A(n) ________ is a manifestation of assent by the offeree to the terms of the offer in a
manner invited or required by the offer as measured by the objective theory of
contracts.
A) acceptance
B) revocation
C) proposal
D) counteroffer
Which of the following clauses protects the insurers from intentional or unintentional
material or informative misrepresentation from an insurance applicant?
A) exclusions from coverage clause
B) incontestability clause
C) deductible clause
D) coinsurance clause
What does the Uniform Transfers to Minors Act establish?
A) rights for what a minor is allowed in case of inheritances without involving
custodians
B) rights for what a minor can accept from an adult
C) procedures for adults to make irrevocable gifts of money and securities to minors
D) procedures for minors making gifts of money and securities to minors
Which of the following is a form of co-ownership that disallows the right of
survivorship and allows unilateral transfer of interest?
A) tenancy in common
B) joint tenancy
C) cooperatives
D) tenancy by the entirety
Tom is a famous athlete. A magazine published an interview with his ex-girlfriend in
which she falsely claimed that Tom took performance enhancing drugs for several
years. Tom can sue his ex-girlfriend for ________.
A) slander
B) invasion of the right to privacy
C) tort of appropriation
D) negligent infliction of emotional distress
The act of negotiating contract terms between an employer and the members of a union
is known as ________.
A) mediation
B) arbitration
C) collective bargaining
D) enterprise bargaining
The ________ imposes obligations on employers and providers of public transportation,
telecommunications, and public accommodations to accommodate disabled individuals.
A) Age Discrimination in Employment Act (AEDA)
B) Older Workers Benefit Protection Act (OWBPA)
C) Americans with Disabilities Act (ADA)
D) Fair Employment Practices Agency (FEPA)
Article 3 of the Uniform Commercial Code establishes the ________.
A) requirements for negotiable instruments, such as checks
B) rules that regulate bank deposit procedures for checking accounts
C) rules that regulate the creation and collection of and liability for wire transfers
D) guidelines for ownership of securities by investors
Andrew is employed as a chief financial officer of EasyMoney in New York City, for a
salary of $200,000 per year on a three-year contract. His employer terminates Andrew
with two years left on the contract. Andrew accepts employment as a financial analyst
at a different firm that pays $150,000 per year. Which of the following hold true in this
scenario?
A) Andrew cannot take any legal action against his prior employer after accepting
another job.
B) Andrew’s prior employer must pay Andrew two years’ worth of his previous salary.
C) Andrew can only sue to receive nominal damages.
D) Andrew can sue his prior employer and recover $100,000.
Which of the following is an instance of misuse of confidential information?
A) An agent gives the seller the principal’s name and phone number in a fully disclosed
transaction.
B) A principal gives the contact details of an agent to a third-party without the agent’s
knowledge.
C) An agent withholds critical information from the principal about the agency.
D) An agent divulges private details of his past employer to his principal.
A detailed set of rules adopted by the board of directors after a corporation is
incorporated that contains provisions for managing a corporation are referred to as
________.
A) ultra vires rules
B) articles of incorporation
C) bylaws
D) corporation codes
A ________ refers to an arrangement between two or more companies whereby they
agree to ally themselves and work together to accomplish a designated objective.
A) limited partnership
B) strategic alliance
C) joint venture
D) franchise
Which of the following is a prejudgment writ?
A) writ of garnishment
B) writ of execution
C) writ of attachment
D) writ of exigent
Which of the following businesses and activities enjoys a statutory exemption from
antitrust laws?
A) airlines
B) professional baseball
C) agricultural cooperatives
D) all professional sports and games
________ is a set of moral principles or values that governs the conduct of an
individual or a group.
A) Rationality
B) Evolution
C) Ethics
D) Reason
The ________ is a legal principle that allows minors to cancel most contracts they have
entered into with adults.
A) duty of restoration
B) duty of restitution
C) contract of adhesion
D) infancy doctrine
How does an LLC (limited liability company) acquire capital? What are the obligations
involved in a member’s contribution of capital?
Describe the need for forum-selection and choice-of-law clauses.
How does a company sell its shares to the public for the first time? Explain the contents
of a registration statement.
Distinguish minor breach from material breach.
How are contract words and terms interpreted?
How are disputes settled in the World Trade Organization (WTO)? What are the
different WTO bodies that handle disputes?
What is the supramajority voting requirement for shareholders?
Briefly outline and explain the process of collective bargaining.
Briefly explain the key features of the Consumer Financial Protection Act of 2010.