A sales contract evidenced by writing cannot be contradicted by a prior oral or written
agreement.
A landlord owes a duty to deliver possession of the leased premises to the lessee.
A principal owes a duty to indemnify an agent for any losses the agent suffers because
of the principal’s conduct.
A corporation that uses subsidiary corporations to operate in more than one country
cannot be termed as a multinational corporation.
A member of a manager-managed LLC (limited liability company) who is not a
manager owes no fiduciary duty of loyalty or care to the LLC or its other members.
Kantian ethics is also known as duty ethics.
An employer is permitted to bar off-duty employees from union solicitation on
company premises.
The Biosafety Protocol label is used to identify certain food products that have been
genetically modified.
State administrative agencies are created by the legislative branch of the federal
government.
The nonissuer exemption 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 fully disclosed agencyresults if a third party entering into a contract knows the actual
identity of the principal.
Only purchasers and sellers of securities can sue under Section 10(b) and Rule 10b-5.
Which of the following would constitute an implied warranty?
A) affirmation of the facts of the goods
B) description of the goods
C) model or sample of the goods
D) adequate packaging and labeling of the goods
During a ________, the defendant’s attorney can call additional witnesses and introduce
other evidence to counter the rebuttal.
A) closing argument
B) rejoinder
C) cross-examination
D) re-direct examination
Which of the following statements is true of signature on a written contract?
A) The contract should be signed by the party who seeks enforcement.
B) The signature of the person who is enforcing the contract is not necessary.
C) The signature must appear at the end of the writing.
D) A person’s nickname or initials are not binding legal signatures.
________ is a type of personal defense when a wrongdoer makes a false statement to
another person to lead them to enter into a contract and issue a negotiable instrument.
A) Forgery
B) Discharge in bankruptcy
C) Fraud in the inducement
D) Extreme duress
Which of the following statements is true of a guaranty contract?
A) The guaranty contract is between the guarantor and the debtor.
B) A guaranty contract need not be in writing.
C) The guarantor’s liability is secondary.
D) The original contract is between the creditor and the guarantor.
Alice offers Richard a chance to work in her affiliate marketing program which, she
claims, will make him a millionaire in three months. Richard makes the “mandatory
investment” of $12,000 and becomes an affiliate. Soon, he realizes that such a program
does not exist and that Alice has disappeared with the money. This is an instance of
________.
A) misrepresentation of law
B) fraud in the factum
C) fraud in inducement
D) duress
Which of the following statements is true of the canons of Christian faith?
A) The Code of Canon Law produced in 1917 is followed by all sects of Christianity
today.
B) The Code of Canon Law regulates the conduct of the Church but fails to govern the
actions of individual Catholics.
C) The Orthodox churches treat their canons more as guidelines than as laws.
D) The canons remain silent on the legal measures guiding marriage or inheritance.
________ Act is a federal statute that permits private parties to sue companies for fraud
on behalf of the government and share in any monetary recovery.
A) Business Norms
B) Sarbanes-Oxley
C) Glass-Steagall
D) False Claims
Which of the following statements is true about the strict liability doctrine?
A) Privity of contract between the injured party and defendant is mandatory.
B) Injured bystanders cannot recover damages under the strict liability doctrine.
C) Parties in the chain of distribution are strictly liable only to the customer who buys
the product.
D) Injured bystanders are entitled to the same protection as the consumer or user.
A(n) ________ is a special form of partnership in which all partners are limited
partners, and there are no general partners.
A) domestic LLC
B) proprietorship
C) LLC (limited liability company)
D) LLP (limited liability partnership)
Limonelle Corporation owns the secret formula for a popular beverage brand
Limonelle. The corporation operates through franchises in over 50 countries. It uses a
secret formula to prepare the drink concentrate which is dispatched to the franchises
world over. These franchises then prepare and bottle the beverage for distribution.
Which of these types of franchises has Limonelle adopted?
A) chain-style franchise
B) processing plant franchise
C) distributorship franchise
D) area franchise