A divorce is the only method for legally terminating a marriage.
The Due Process Clause of the U.S. Constitution grants Congress the power “to
regulate commerce with foreign nations, and among the several states, and with Indian
tribes.”
The primary function of collateral is to secure payment of the loan.
Limited partners are not liable for the debts and obligations of the partnership if they
participate in the management of the limited partnership, without being employed as a
manager or an executive.
Kant believed that people owe moral duties that are based on universal rules.
A floating lien is a security interest in property that was not in the possession of the
debtor when the security agreement was executed.
The power to investigate and prosecute possible violations of statutes, administrative
rules, and administrative orders is the judicial power granted to administrative agencies.
A person selling stolen property would be breaching the warranty of good title.
Article 5 of the UCC governs letter of credit.
The European Union Commission has negligible authority to enact legislations and take
enforcement actions compared to the European Union (EU).
The Treaty Clause of the U.S. Constitution designates the president of the United States
as its agent to deal with foreign affairs.
The secret profits obtained by a director or officer cannot be recovered by a
corporation.
If a contract that was lacking in consideration is performed by the parties, the parties
cannot subsequently assert lack of consideration to undo the performed contract.
The dissolution of a general partnership discharges the liability of an outgoing partner
for existing partnership debts and obligations.
If a minor does not disaffirm a contract upon reaching the age of majority, the contract
is considered as ratified.
Damien, a first-year law student, offers his services to Mr. Jenkins to help draft his will.
Mr. Jenkins agrees to Damien’s offer, and promises to pay him $400 for his services.
Damien completes the draft of the will. But when Damien goes to collect his payment,
Mr. Jenkins refuses payment. Damien knew that he had no legal recourse to enforce the
contract. What statute had Damien violated in his contract with Mr. Jenkins?
A) revenue-raising statute
B) regulatory licensing statute
C) usury statute
D) ratification statute
The ________ is an assurance that provides that leased premises must be fit, safe, and
suitable for ordinary residential use.
A) implied warranty to pay rent
B) implied warranty of habitability
C) duty to deliver possession
D) duty not to use leased premises for illegal or nonstipulated purposes
Which of the following is true for goods under the purview of Article 2 of the Uniform
Commercial Code?
A) Goods can be replaced by money.
B) Intangible goods must be exchanged for other intangible goods.
C) Goods in the contract must be movable.
D) Immovable goods like real estate must have provisions of service attached to their
contracts.
Which of the following is true of Section 10A of the Securities Exchange Act of 1934?
A) It prohibits any manipulative or deceptive practice in connection with the process of
the probate.
B) It serves as a defense an accountant can assert by claiming due diligence to avoid
civil liability.
C) It enforces a duty on auditors to detect and report illegal acts committed by their
clients.
D) It imposes a criminal liability on accountants for making misstatements or omissions
in nonaudit services.
Kimberly borrows $50,000 from a bank. She gives the bank a security interest in her
________ inventory. This implies that if Kimberly does not repay the loan in the
stipulated period, the bank can claim any assets she purchased after signing the security
agreement.
A) floating lien
B) future advance
C) attached
D) after-acquired
Which of the following replaced the General Agreement on Tariffs and Trade (GATT)?
A) the World Bank
B) the World Trade Organization
C) the International Monetary Fund
D) the North American Free Trade Agreement
Under which of the following conditions can one convert a gift promise into an
enforceable promise?
A) if the promisee offers a consideration
B) if the promisor offers a consideration
C) if the promisee receives a legal benefit
D) if the promisor suffers a legal detriment
________ crimesrequire that the perpetrator either knew or should have known that his
or her actions would lead to harmful results.
A) General intent
B) Nonintent
C) Specific intent
D) Explicit intent
Which of the following statements is true of a breach of contract?
A) Strict performance by a party discharges that party’s duties under the contract.
B) Inferior performance constitutes a minor breach of contract.
C) Substantial performance constitutes a material breach.
D) The most common remedy for a breach of contract is an award of equitable
remedies.
According to ________, keeping a promise to abide by a contract is a moral duty even
if that contract turns out to be detrimental to the obligated party.
A) utilitarianism
B) Kantian ethics
C) Rawls’s social justice theory
D) moral relativism
If a state enacts a law that increases its tax on imported automobiles but not on
American-made automobiles, the tax violates the ________ of the U.S. Constitution.
A) Equal Protection Clause
B) Foreign Commerce Clause
C) Supremacy Clause
D) Due Process Clause
A(n) ________ is an exemption from registration that permits local businesses to raise
capital from local investors to be used in the local economy without the need to register
with the SEC.
A) intrastate offering exemption
B) regulation A offering
C) private placement exemption
D) nonissuer exemption
Issued shares that have been repurchased by the corporation are referred to as
________.
A) outstanding shares
B) liquidated shares
C) unissued shares
D) treasury shares
Jack Mendez, owner of a car remodeling company, needed a temporary place to store
some heavy machinery for a day. Finding no other option, he decided to store the
machinery at his rented apartment. When Jack kept the machinery in the living room,
the floor beneath the spot developed cracks. Which of the following duties of a tenant
did Jack breach by bringing the machinery into his home?
A) duty to deliver possession
B) duty not to commit waste
C) duty to pay rent
D) duty not to use leased premises for illegal or nonstipulated purposes