In most states, contracts for the sale of goods for $900 do not require to be in writing.
The United States follows the principle of restricted immunity for suits against foreign
nations.
A participant in an activity covered by strict liability laws will be held liable for any
injuries caused by the activity, even if he or she was not negligent.
The International Monetary Fund is an exclusive organization set up to primarily help
the member nations of the Security Council.
Antitakeover statutes are model acts and do not become laws until a state legislature
adopts them.
Corporation codes regulate the formation, operation, and dissolution of corporations.
A collection action against a debtor who is judgment proof is not likely to be successful.
Transfer warranties cannot be disclaimed with respect to checks.
Articles of organization are documents that are an evidence of a member’s ownership
interest in a Limited liability company (LLC).
The European Union was created by a multilateral treaty.
An easement appurtenant cannot be terminated upon change in ownership title of the
dominant estate.
General partners owe a duty to inform their partners of all information they possess that
is relevant to the affairs of the partnership.
Sellers and lessors are not required to make express warranties.
Restitution is an action to undo a contract.
________ refers to an alteration or a modification of a product by a party in the chain of
distribution that absolves all prior sellers from strict liability.
A) Generally known danger
B) Assumption of the risk
C) Abnormal misuse
D) Supervening event
________ is a rule that states that if a minor has transferred money, property, or other
valuables to the competent party before disaffirming the contract, that party must place
the minor in status quo.
A) Emancipation doctrine
B) Infancy doctrine
C) Duty of restitution
D) Duty of restoration
Which of the following is true of antitrust laws?
A) Antitrust laws are fixed and unchangeable.
B) Each new administration adopts a different policy for enforcing antitrust laws.
C) Federal antitrust laws provide for government lawsuits and exclude private lawsuits
from their purview.
D) Treble damages cannot be sought in antitrust lawsuits.
Joe buys a trailer from a used-car dealership. On enquiry, the dealer tells him that the
trailer is in great condition. However, three days later, the trailer breaks down.
Investigation by Joe reveals that the trailer had seven previous owners and that the
engine has been replaced thrice. An automobile expert tells Joe that the trailer is
dangerous. Which of the following frauds would the dealer be liable for?
A) fraud in the factum
B) fraud in the inducement
C) fraud by concealment
D) misrepresentation of law
A man tries to swallow a pen as part of a circus act. The pen gets lodged in his throat,
and he is taken to a hospital for immediate medical attention. The man sues the
company that manufactured the pen. Which of the following would be the best defense
for the pen manufacturer in this lawsuit?
A) It can claim that the product carried generally known dangers.
B) It can claim that the product was abnormally misused.
C) It can claim that the injury was caused by a supervening event.
D) It can claim that the plaintiff had assumed the risk when buying the product.
A(n) ________ LLC (limited liability company) has no specified term of duration.
A) short-form
B) general
C) term
D) at-will
A commendation of goods made by a seller or lessor that does not create an express
warranty is referred to as a(n) ________.
A) statement of opinion
B) implied warranty
C) guarantee
D) caveat emptor
________ is an act that requires certain firms to notify the Federal Trade Commission
and the Justice Department in advance of a proposed merger and comply with a
thirty-day waiting period before the merger is approved.
A) Celler-Kefauver Act
B) Hart-Scott-Rodino Antitrust Improvement Act
C) Robinson-Patman Act
D) Sherman Act
The Supreme Court case decision on the case of Brown v. Board of Education was
important because it exhibited ________.
A) the use of the affirmative action policy
B) the scope of flexibility of the law
C) the state’s supremacy over federal rulings
D) the importance of following precedence
To assert ________ as a defense, the defendant must prove that the plaintiff knew and
appreciated the risk of the product.
A) supervening event
B) assumption of the risk
C) generally known dangers
D) abnormal misuse
Elizabeth signs a contract to purchase a new car from Spadace Motors. She is yet to pay
for the car and thus Spadace Motors has not delivered the car to Elizabeth. This is an
example of a(n) ________ contract.
A) void
B) unenforceable
C) executed
D) executory
Which of the following would be considered goods?
A) company shares
B) crops
C) trade secrets
D) money
Section 14(a) of the Securities Exchange Act of 1934 is a(n) ________.
A) investment provision
B) antifraud provision
C) share exchange provision
D) antitakeover statute
The threat of immediate harm or offensive contact is termed as ________.
A) battery
B) assault
C) disparagement
D) libel
Ashley owns a piece of vacant real estate through which a small river runs. Ashley hires
Warren, a licensed real estate broker, to list the property for sale and help sell the
property. While inquiring in the neighborhood, Ashley’s neighbor Lenny tells Warren
that a chemical plant upstream has polluted his property and that Warren should have
environmental engineers test Ashley’s property as well. Warren does not tell Ashley
about Lenny’s suggestion. Warren manages to find a buyer for Ashley’s property in
Martha. It is later discovered that the property Martha bought from Ashley is polluted.
What important agent’s duty has Warren failed to perform?
A) duty to indemnify
B) duty to account
C) duty to reimburse
D) duty to notify