Setting of minimum resale prices is a rule of reason violation of Section 1 of the
Sherman Act.
The World Trade Organization (WTO) was created as a successor to the General
Agreement on Tariffs and Trade (GATT).
An agent does not owe a duty to notify the principal of important information he learns
concerning the agency.
In secured credit, the creditor cannot recover the collateral despite the debtor’s defaults
on the loan.
An issuer is permitted to assert a due diligence defense against the imposition of
Section 11 liability.
Promises to pay and orders to pay must be unconditional in order to be negotiable.
In an anticipatory breach, the nonbreaching party does not have the right to sue the
breaching party until performance is due.
The power to regulate interstate commerce lies exclusively with the federal
government.
A(n) ________ is a statutory lien given to workers who furnish services or materials for
personal property in the ordinary course of business.
A) super-priority lien
B) floating lien
C) artisan’s lien
D) judgment lien
Which of the following is true of a principal-independent contractor relationship?
A) Principals are bound by the authorized contracts of their independent contractors.
B) Independent contractors cannot be authorized by principals.
C) Independent contractors are employees of the principals.
D) Principals cannot directly employ independent contractors.
In a survey of the nonattainment areas in the state, the agency found Helmont to be the
district that exceeded the ozone standard by the largest margin. Helmont is most likely
to be categorized as a(n) ________ nonattainment area.
A) severe
B) extreme
C) marginal
D) serious
What is a trust corpus?
A) property and assets that are claimed in case of intestacy
B) property and assets that the trustee has an equitable right to
C) property and assets escheated to the government in the absence of a trustee
D) property and assets held in trust to be used for the benefit of a third person
________ is a law in which the court orders a fair sharing of marital property to the
divorcing spouses and the fair share need not be an equal share.
A) Community property distribution
B) Equitable distribution
C) Equal asset distribution
D) Marital distribution
The ________ is an amendment to the Securities Exchange Act of 1934 that specifically
regulates tender offers.
A) Gramm-Leach-Bliley Act
B) Financial Services Modernization Act
C) Williams Act
D) Exon-Florio Foreign Investment Provision Act
Which of the following is true of an assignment of a right?
A) Unconditional assignment of a contract right retains all the assignor’s rights.
B) The obligor is entitled to performance from the assignor.
C) The assignor loses the right to sue the obligor directly for nonperformance in an
unconditional assignment.
D) The obligor cannot raise personal defenses against the assignee.
Which of the following is true of an auditor of a corporation?
A) The auditor must be an independent certified public accountant.
B) The auditor cannot use information about the corporation from third parties.
C) The auditor cannot inspect the corporation’s real property unless he is closely
associated with the company.
D) The auditor must provide a qualified opinion wherever possible since it helps the
company in business.
Which of the following is true of the admission of a new general partner to an existing
limited partnership?
A) Only limited partners can be admitted to an existing partnership.
B) A limited partnership agreement cannot waive the right of partners to approve the
admission of new general partners.
C) The oral consent of all partners is enough for admission of a general partner.
D) Consent of all general partners is sufficient for the admission of a new limited
partner.
________ is a demand for acceptance or payment of an instrument made upon the
maker, acceptor, drawee, or other payer by or on behalf of the holder.
A) Accommodation
B) Duress
C) Presentment
D) Allonge
In which of the following types of offers does the seller offer the goods for sale?
A) a revocation
B) a reward
C) an auction with reserve
D) an auction without reserve
The ________ is a federal statute that permits a complainant to file an employment
discrimination claim against an employer within 180 days of the most recent paycheck
violation.
A) Civil Rights Act of 1968
B) Title II of Genetic Information Nondiscrimination Act
C) Civil Rights Act of 1866
D) Lilly Ledbetter Fair Pay Act
According to the theory of ________, if a business corrects the social injury it causes, it
has met its duty of social responsibility.
A) moral minimum
B) maximizing profits
C) corporate citizenship
D) stakeholder interest