Under the European Union, customs duties have been eliminated among member
nations.
In an auction with reserve, the seller retains the right to refuse the highest bidder.
A sole proprietor has limited personal liability.
A special power of attorney empowers the agent to act in any matters on the principal’s
behalf without limitation.
An accredited investor is defined as a person who does not understand the risks
involved in securities investment and will suffer considerable financial damage if the
investment fails.
Contracts under seal are thus named because they are highly confidential, and the
parties to these contracts are not allowed to talk about their terms.
A tenant at sufferance is liable for the payment of rent during the period of sufferance.
A system in which each shareholder votes the number of shares he or she owns on
candidates for each of the positions open is known as cumulative voting.
The UCITA makes it illegal to access another person’s stored e-mail only.
Unless otherwise stated, the franchisor is liable for the torts of its franchisee.
In a gross lease, the landlord is responsible for paying the property taxes and
assessments on the property.
If a virgule is used, both parties are necessary to negotiate the instrument.
Gifts that a debtor is entitled to receive within 180 days after a bankruptcy petition is
filed are part of the debtor’s bankruptcy estate.
The Magnuson-Moss Warranty Act does not require a seller or lessor to make an
express written warranty.
Statute of Frauds is a state statute that requires certain types of contracts to be in
writing.
Judicial dissolution of a corporation can be instituted by the attorney general of the state
of incorporation if the corporation ________.
A) procured its articles of incorporation through fraud
B) did not pay its franchise fee
C) failed to file an annual report
D) failed for 60 days to maintain a registered agent in the state
Which of the following is a similarity between a living trust and an inter vivos trust?
A) both of them are subject to probate
B) both of them require the beneficiaries to be present during the time of creation of the
trust
C) both of them are created while the settlor is still alive
D) both of them are free from changes resulting from operations of law like annulment
If they filed for divorce in a state that recognizes community property, what amount
would each receive?
A) $1,300,000
B) $2,297,500
C) $725,000
D) $1,050,000
The ________ states that a merchant who offers to buy, sell, or lease goods and gives a
written and signed assurance on a separate form that the offer will be held open cannot
revoke the offer for the time stated or, if no time is stated, for a reasonable time.
A) gap-filling rule
B) firm offer rule
C) mirror image rule
D) open term rule
An arrangement in which the owner of real property sells property to a purchaser and
extends credit to the purchaser is known as ________.
A) a lien release
B) a credit release
C) accommodation
D) land sales contract
Which of the following would constitute a false advertising according to the Federal
Trade Commission?
A) sales talk
B) unsubstantiated claims
C) minimal commercial speech
D) statements of opinion
Which of the following statements is true of e-mail contracts?
A) All e-mail contracts require consideration, capacity, and lawful object.
B) E-mail contracts are exempted from the requirements of the Statute of Frauds.
C) All e-mail contracts are enforceable even if they don’t meet the requirements of a
traditional contract.
D) Several e-mails cannot be integrated to determine the parties’ agreement.
The Association of Southeast Asian Nations (ASEAN) was created as a treaty among
the oil-producing countries of Asia.
The ________ guarantees workers unpaid time off from work for family and medical
emergencies and other specified situations.
A) Fair Labor Standards Act
B) Occupational Safety and Health Act
C) Family and Medical Leave Act
D) Employee Retirement Income Security Act
What is a warehouse receipt?
A) a receipt received by a warehouse after the bailor has retrieved the bailed goods and
payment has been made
B) a document of title issued by a warehouse company stating that the bailor has title to
the bailed goods
C) a certificate of authenticity issued by a warehouse stating that it is certified to hold
bailed goods
D) an inventory list provided to the warehouse company by the bailor of the bailed
goods
Which of the following is true of dual agency?
A) An undisclosed dual agent is allowed to retain compensations of the transaction
provided he or she discontinues the dual agency.
B) Examples of dual agents are finders and middlemen.
C) Dual agency is permitted if all parties in the transaction agree to it.
D) Dual agency is permitted as long as the interests of both principals are similar.
________ is a licensing statute with the primary purpose of increasing earnings for the
government.
A) Usury statute
B) Ratification statute
C) Regulatory licensing statute
D) Revenue raising statute
The ________ is a doctrine that says a holder who does not qualify as a holder in due
course in his or her own right becomes a holder in due course if he or she acquires an
instrument through a holder in due course.
A) exclusionary rule
B) acceleration clause
C) shelter principle
D) good faith principle