If the object of a contract becomes illegal after the contract is entered into, the parties
are discharged from the contract.
To meet the mirror image rule, the offeree must accept the terms of the offer without
modification.
A buyer cannot revoke his acceptance if he or she has already accepted nonconforming
goods.
To qualify as a negotiable instrument, a promise cannot state any other undertaking by
the person promising other than the payment of money.
Local administrative agencies are agencies created by cities, municipalities, and
counties to administer local regulatory law.
Labor unions have the right to engage in picketing in support of their positions.
In the case of Ultramares Corporation vs. Touche, the defendant was found to be not
guilty of negligence due to lack of privity of contract.
A trade name statement refers to a document that is filed with the state that designates a
trade name of a business, the name and address of the applicant, and the address of the
business.
Partners in a limited partnership who invest capital and manage the business are called
general partners.
A personal articles floater provides coverage for loss or damage to the articles while
traveling.
In a mortgage transaction, the creditor is known as the mortgagee.
If two or more testators execute the same instrument as their will, the document is
called a reciprocal will.
Discrimination because of pregnancy, childbirth, or related medical conditions violates
the Civil Rights Act of 1866.
________ refers to an attempt by another person to take over a living person’s name or
identity for commercial purposes.
A) Invasion of the right to privacy
B) Tort of appropriation
C) Defamation of character
D) Disparagement
Henry is undergoing a surgery at Sacred Heart Hospital to insert an artificial pacemaker
that will keep his heartbeat regular. The pacemaker is manufactured by Benford Inc. In
this case, Dr. DeBenedetto, the surgeon, is considered as the dominant element. If the
pacemaker fails to function as expected after the surgery, who would be strictly liable
for its failure?
A) Benford Inc.
B) Dr. DeBenedetto
C) Henry
D) Sacred Heart Hospital
The party to whom a license is granted is known as the ________.
A) licensee
B) licensor
C) grantee
D) grantor
According to the gap-filling rule, if a sales contract does not contain a specific price,
________.
A) the contract has to be redrafted to include a price
B) the contract is considered void due to indefiniteness
C) the contract can be enforced by either party by fixing an open term price
D) the contract cannot be enforced upon the buyee
The Uniform Partnership Act (UPA) provides that all general partners are entitled to
remuneration for their performance in the partnership’s business.
A(n) ________ is a person who discloses material nonpublic information to another
person.
A) issuer
B) tippee
C) grantor
D) tipper
The ________ states that an acceptance is effective when it is dispatched, even if it is
lost in transmission.
A) rule of silence as acceptance
B) mirror image rule
C) mailbox rule
D) mutual assent rule
The ________ prohibits the government from promoting one religion over another.
A) Due Process Clause
B) Privileges Clause
C) Establishment Clause
D) Free Exercise Clause
Most union elections are contested by the employer. The ________ is required to
supervise all contested elections where a simple majority vote wins the election.
A) Congress of Industrial Organizations
B) American Federation of Labor
C) National Labor Relations Board
D) Election Assistance Commission
The North American Free Trade Agreement (NAFTA) is a bilateral treaty between the
United States and Mexico.
Which of the following parties to a shipment contract bears the risk of loss of goods
during transport?
A) the seller
B) the carrier
C) the buyer
D) the seller and the carrier
Kinderfelt Corporation has 15,000 outstanding shares of which Gordon owns 2,000.
Kinderfelt plans to raise more capital by issuing another 10,000 shares of stock. With
preemptive rights, how many of the new shares does Gordon have the right to buy
before they are sold to the public?
A) 10,000
B) 3,000
C) 5,000
D) 2,000
Which of the following is a default?
A) repaying a debt before it is due
B) bankruptcy of the debtor
C) increase of rate of interest by the creditor midway through debt repayment
D) theft of the collateral
If employees no longer want to be represented by a union, a(n) ________ electionis
held.
A) employer-contested
B) consent
C) decertification
D) management-contested
A prejudgment court order that permits the seizure of a debtor’s property while a lawsuit
is pending is known as a ________.
A) writ of exigent
B) writ of attachment
C) writ of execution
D) writ of garnishment