A patent generally is effective for 10 years from the date of filing.
Answer:
The courts have no power over unconscionable contracts.
Answer:
In a COD contract, the buyer may fully inspect the goods before accepting them.
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An indorsement cannot incur the indorser’s liability on the instrument.
Answer:
The intent to deceive is also known as capacity.
Answer:
Both nonprofit corporations and nontaxing governmental corporations are similar in
that they are formed and operated by private persons.
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A valid surrender discharges the tenant from further liability under the lease.
Answer:
Under the UCC, some of the benefits of warranties extend to persons who did not
themselves purchase the particular defective goods.
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An acceptance sent by stipulated means is effective when dispatched.
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Federal laws often regulate lease terms.
Answer:
Substantive law comprises rules as to what cases a court can decide, how a trial is
conducted, and how a judgment by a court is to be enforced.
Answer:
Which article of the Uniform Commercial Code covers electronic funds transfers
between businesses and financial institutions?
A. Article 1A
B. Article 4A
C. Article 3A
D. Article 2A
Answer:
Those who have an insurable interest in property must have that interest:
A. before the loss occurs.
B. at the time the loss occurs.
C. within 30 days after the loss occurs.
D. throughout the term of the policy.
Answer:
“Piercing the corporate veil” implies that:
A. a corporation is held liable for money laundering.
B. corporate shareholders are stripped of their limited liability to prevent unfair results.
C. shareholders have no liability to prevent unfair results.
D. members will not be personally liable for the debts.
Answer:
Jo & Co. Dresses is a partnership firm dealing in the manufacture of casual clothes.
One of the partners of Jo & Co. thinks that they should clear the old stock during
Thanksgiving. For this purpose:
A. he requires unanimous agreement of all the partners.
B. he requires unanimous agreement of the general partners only.
C. he has the express authority to act.
D. he requires his decision to be ratified by any two general partners.
Answer:
A party which enters into an illegal contract may recover any consideration given
when:
A. the illegal act has been performed and the party has reported the illegality to law
enforcement.
B. the party rescinds the contract before any illegal act has been performed.
C. the illegal act has been performed and the party demonstrates an unequal bargain
thereof.
D. the party rescinds the contract immediately after the illegal act has been performed.
Answer:
Which of the following statements is TRUE about blue-sky laws?
A. They are state laws that provide penalties for fraudulent sales and permit the
issuance of injunctions to protect investors from anticipated fraudulent acts.
B. They are state laws that give investors the information they need to make intelligent
decisions about whether to purchase securities.
C. All blue sky statutes provide civil penalties for selling fraudulent securities and
conducting fraudulent transactions.
D. They give the bidder and the target company equal opportunities to present their
cases to the shareholders.
Answer:
To avoid being bound by the acts of the agent after the agency has ended, the
principal:
A. should give actual notice to those who have dealt with the former agent.
B. should give constructive notice to those who have dealt with the former agent.
C. should give verbal notice if the termination is due to loss of legal capacity by the
principal.
D. should give actual notice if the termination is due to impossibility of performance.
Answer:
The Consumer Product Safety Commission:
A. may file suit in federal court against manufacturers of imminently hazardous
consumer products in an effort to eliminate the danger posed by such products.
B. has authority to issue product safety standards, but does not have the authority to file
suit in federal court against manufacturers of imminently hazardous consumer products.
C. has authority to issue product safety standards, but does not have the authority to
order a manufacturer to submit a plan for corrective action with regard to a product that
poses a substantial hazard to the public.
D. has authority to issue product safety standards, but does not require manufacturers,
distributors, and retailers to notify the CPSC if they have reason to know that their
products present a substantial product hazard.
Answer:
The legal concept of unconscionability:
A. is a part of the doctrine of freedom of contract.
B. establishes that certain classes of contracts are voidable.
C. pertains to unequal bargains.
D. is only present in contracts between consumers and large companies.
Answer:
Quid pro quo harassment involves:
A. insulting an employee by calling names or playing jokes to degrade someone that
can take place at even those places where you least expect them to take place.
B. demeaning, offensive, and inappropriate conduct against an employee based on their
racial identification.
C. some express or implied connection between the employee’s submission to sexually
oriented behavior and job benefits.
D. an employee being subjected to demeaning and inappropriate conduct based on their
religious practices or a disability.
Answer:
Assignees:
A. cannot enforce any rights of assignor against obligator.
B. cannot be liable for duties impliedly delegated with the assignment.
C. can sue the promisor for nonperformance.
D. can acquire greater rights than the assignor has.
Answer:
On the first day of class, Jane’s history professor passes around a blank sheet of paper
claiming that she had not yet received the official class roster. All 21 students in the
room sign it. That night, she types on the bottom of the roster sheet, “We, the
above-signed parties, hereby promise to pay to the order of professor, $50,000 on
demand.” A month later, when the class pools their money and buys a winning lottery
ticket worth $100,000, the professor presents the instrument and demands her money.
Which of the following statements is TRUE?
A. The professor is guilty of a misrepresentation because she knowingly said it was a
roster sheet, not a potential negotiable instrument.
B. The professor is guilty of undue influence because she induced the students to sign
the sheet by virtue of her superior position as the professor.
C. The professor is guilty of a fraud in the execution because she took advantage of her
students’ trust in her and intentionally said it was a roster sheet.
D. The professor is guilty of causing economic duress because she could have had any
student who failed to sign the sheet removed from the class with tuition and other
monetary implications arising; so students were forced to sign.
Answer:
A prisoner seeks injunctive relief to improve prison conditions. However, while the case
is still pending, the prisoner’s sentence ends and he is released. On the date of deciding
the case, the American Federal Court could:
A. choose not to decide the case stating the case was moot.
B. ask the ex-prisoner to appeal to the Supreme Court.
C. ask the prisoner to apply for a new trial.
D. ask the prisoner to appeal to the court of appeals.
Answer:
In which of the following ways can insanity affect a criminal trial?
A. The trial may be delayed until the defendant regains sanity.
B. A defendant who becomes insane before sentencing can be sentenced.
C. Insanity at the time of the criminal act will not absolve the defendant of criminal
liability.
D. The defendant will be acquitted but will have to undergo treatment.
Answer:
Which of the following statements is TRUE of the registration system for trademarks?
A. In the United States, a trademark is eligible for registration in the absence of prior
commercial use.
B. U.S. trademarks are generally registered for 20-year terms and the holder may renew
the registration only twice.
C. The registration of a trademark must contain a clear description of what is being
protected and must be available to the public.
D. Registration is not mandatory for service marks and geographical indications to be
protected.
Answer:
Which of the following statements is TRUE of a life estate?
A. It is the right to have someone who owns an adjoining piece of property refrain from
making certain uses of his or her land.
B. A person owning a life estate cannot be held liable if he commits acts that will result
in permanent injury to the property.
C. It gives a person the right to use property for an indefinite period.
D. It gives a person the right to use property only for his own lifetime or for a time that
is measured by the lifetime of somebody else.
Answer:
Jane tells Mark, she would pay him $50 if Mark finds her lost bag. This is an example
of a:
A. bilateral contract.
B. unilateral contract.
C. contingent contract.
D. multilateral contract.
Answer:
Average investors who can offer and sell the securities they own, and yet avoid the
need to have the issuer register the securities are called ____.
A. nonissuers
B. issuers
C. dealers
D. brokers
Answer:
The duty not to commit waste means:
A. the landlord has a duty not to do any act that would harm the property.
B. the tenant is responsible for the care and upkeep of the property.
C. the tenant has a duty to protect the property and take reasonable care to protect it
from other’s criminal conduct.
D. the tenant has the duty to make repairs irrespective of whether the damage was
caused by his negligence or not.
Answer:
A U.S. court of appeals is empowered to:
A. find new facts for the case.
B. review legal conclusions reached by lower federal courts and administrative
agencies.
C. hear only patent, copyright and trademark appeals.
D. hear witnesses and determine facts.
Answer:
In which of the following ways can a seller breach a contract?
A. By entrusting goods are in buyer’s possession.
B. By delivering goods that do not conform to the contract.
C. By repudiating a contract.
D. By indicating an intention to fulfill the obligations under the contract.
Answer:
A codicil is a(n):
A. amendment to a will.
B. automatic revocation of a will.
C. trust.
D. creditor’s claim against the estate.
Answer: