Lila, a newspaper columnist from Chicago, is unhappy with the soaring price of fuel in
the U.S. She publishes an article that criticizes the government’s refusal to offer
gasoline at a subsidized price. This is an example of fully protected speech.
In a finance lease, the lessor manufactures and supplies the goods of the contract.
The trademark symbol “SM” is used to indicate a mark associated with a product.
Foreclosure sales are permitted only in select states.
It is legal for a company employee to make a profit by personally purchasing shares of
the corporation prior to public release of favorable information.
A distributorship franchisee is called a subfranchisor.
A court action is necessary for a power of sale foreclosure to be considered valid.
A misrepresentation is considered fraud even if it is made without intent to deceive
another party.
The UCC does not allow for open terms to be read into a sales or lease contract.
Assent of a party to a contract may be manifested in any manner sufficient to show
agreement, including conduct.
If a modification of the lease contract increases the lease payment to $1,000 or more,
the modification has to be in writing to be enforceable.
Authorized shares that have been sold by the corporation are called issued shares.
The Fair Labor Standards Act makes it unlawful to ship goods produced by businesses
that use oppressive child labor.
Implied terms in a contract can be supplied by the courts.
________ discrimination occurs when an employer treats a specific individualless
favorably than others because of that person’s race, color, national origin, sex, or
religion.
A) Disparate-treatment
B) Disparate-impact
C) Favored-treatment
D) Unfair-impact
A bailment without a fixed term is called a ________.
A) bailment for the sole benefit of the bailee
B) bailment for the sole benefit of the bailor
C) bailment for a for mutual benefit
D) bailment at will
Kevin goes to the store to purchase a fully-automatic washing machine. He browses
through several models of washing machines, but does not let the salesperson know that
he wants a fully-automatic model. While signing the sales contract, he does not notice
that the model he is purchasing is a semi-automatic machine. After purchase, which of
the following options does Kyle have?
A) Exchange the machine with a fully-automatic one and sue the store if its does not
accept it.
B) Demand a full cash refund from the store for fraud in concealment.
C) Sue the store for its innocent misrepresentation.
D) Keep the semi-automatic washing machine as he made a unilateral mistake.
Decisions of the ________ are final unless a question of law is involved that is
appealable to the U.S. Supreme Court.
A) courts of appeals
B) courts of records
C) highest state courts
D) general-jurisdiction trial courts
General partners have ________ for the debts and obligations of the partnership.
A) limited exemption
B) conditional exemption
C) limited organizational liability
D) unlimited personal liability
The Islamic law (or Shari’a) encourages levying interest on loans.
Which of the following is a major form of conducting a business?
A) institution
B) charity
C) corporation
D) trust
________ is an antitrust principle which says that two or more persons can petition the
executive, legislative, or judicial branch of the government or administrative agencies
to enact laws or take other action without violating antitrust laws.
A) Noerr doctrine
B) Colgate doctrine
C) Nolo contendere
D) Small company doctrine
The ________ includes keeping records of all property and money received and
expended during the course of an agency.
A) duty of accountability
B) duty of termination
C) duty to reimburse
D) duty to notify
________ is a state law that provides that an accountant’s work papers cannot be used
against a client in a court action.
A) Work product immunity
B) Accountant-client privilege
C) Foreseeability standard
D) NoerrDoctrine
________ is a stipulation in an offer that says the acceptance must be by a specified
means of communication.
A) An option contract
B) The mirror image rule
C) Implied authorization
D) Express authorization
Which of the following is used to resolve a case where the obligee fraudulently makes
successive assignments of the same right to a number of assignees?
A) the English rule
B) an approval clause
C) an anti-assignment clause
D) a novation agreement
Mark goes to Tony’s Lumber Yard to buy some lumber to build a new roof for his cabin.
Mark tells Tony, the lumber yard owner, to provide him an exact type of wood that can
resist the wood decay caused due to the damp environment around the cabin. Mark buys
the lumber after Tony assures him that the wood is exactly what Mark is looking for.
But then the dampness affects the wood and it caves in. Which of the following
warranties has Tony explicitly breached by not providing Mark the lumber he needed?
A) express warranty
B) statement of opinion
C) implied warranty of fitness for human consumption
D) implied warranty of fitness for a particular purpose
Advertising is categorized as ________ speech.
A) fully protected
B) limited protected
C) uncensored
D) unprotected
When and how can a plaintiff claim damages if the defendant has breached a duty of
care?
What are the different terms used in electronic contracting?
Explain the requirement for a fixed amount in negotiable instruments?
How can an offeror revoke an offer?
Compare the tort doctrines of negligence and misrepresentation.
Does an agent competing with the principal breach his or her duty of loyalty? What is
the proper course of action for the principal in such a case?
How does the UCC deal with issues that are not present in the express terms of a
contract?