In a lease agreement, the person who owns the real property and permits the occupation
of the premises is known as the __________, and the person who occupies the property
is known as the __________.
a. lessor; lessee
b. lessee; lessor
c. grantor; grantee
d. grantee; grantor
An assignment:
a. is a contract.
b. requires consideration.
c. is a transfer of rights.
d. is not enforceable.
An employer may be justified in discharging an employee because of the employee’s:
a. nonperformance of duties.
b. incompetency.
c. serious misconduct.
d. all of the above.
State statutes designed to protect the public from the sale of worthless stocks and bonds
are called:
a. antifraud acts.
b. blue sky laws.
c. clear sky laws.
d. none of the above.
Concerning torts and crimes, choose the correct statement:
a. Every tort is a crime.
b. Every crime is a tort.
c. No crime is a tort.
d. A crime may also be a tort.
Advertising regulations are designed to:
a. give the consumer an accurate description of the product.
b. punish sellers who knowingly make false statements about the product offered for
sale.
c. punish sellers who state a false opinion about the product.
d. give the consumer information about other similar products that are available.
Sylvia and Morris were married and owned their home as tenants by the entirety. When
Morris died, his will said that he left his half of his home to his brother Tim. Sylvia
objects to this. The ownership of the home:
a. belongs solely to Sylvia by survivorship.
b. is now a joint tenancy between Sylvia and Tim.
c. is now a tenancy in common between Sylvia and Tim.
d. belongs to Sylvia and the state, in equal and divisible shares.
The bailor must both inform the bailee of known defects and make a reasonable
investigation to discover defects in a:
a. mutual benefit bailment.
b. Bailment for the sole benefit of the bailee.
c. both a. and b.
d. neither a. nor b.
The Litigation Reform Act of 1995 was passed because of:
a. congressional concern over an excess of frivolous private securities lawsuits.
b. the financial burdens placed on accountants and other professional advisors due to an
excess of frivolous private securities lawsuits.
c. concern that the investors in a class action lawsuit have their interests fairly
represented.
d. all of the above.
The frustration of purpose doctrine:
a. is based on common law.
b. requires that both parties were aware of the purpose.
c. temporarily suspends contract performance.
d. all of the above.
Which of the following does not describe the European Union (EU)?
a. It was formerly known as the European Economic Community.
b. It had ten members sign on in 2004.
c. It eliminated internal barriers to the free movement of goods, persons, services, and
capital between member countries.
d. It is administered solely by the heads of state of the member countries.
An express promise by a landlord to not disturb the tenant€s possession of the land is
known as the covenant of:
a. domesticity.
b. tranquil possession.
c. quiet enjoyment.
d. unfettered use.
In addition to the corporation itself, which of the following parties are ordinarily
responsible for corporate debts?
a. directors
b. officers
c. directors and officers
d. none of the above
Under the Sarbanes-Oxley (SOX) obstruction of justice provision, auditors must retain
working papers related to a client€s audit for at least:
a. 3 years.
b. 5 years.
c. 10 years.
d. 20 years.
Upon acceptance of a subscription after incorporation, the subscriber immediately
attains the rights, privileges, and liabilities of a shareholder, even though the subscriber
has not paid any of the purchase price.
Peter applied for a loan at three banks. Peter’s application was denied at the first two
banks but finally was approved by the third institution. Peter believes that the first two
banks denied his application because of his minority status. No explanation ever was
provided by the banks denying Peter’s request for funds. After obtaining the loan, Peter
soon found himself unable to make the prescribed payments. Peter went into default,
causing the bank to turn his case over to a collection agency. The collection agency
called him €night and day€ and were very abusive in their collection practices.
Peter became quite distraught and unable to function at his job. As a result, Peter was
soon fired. Peter asks for your advice regarding his legal rights. What is your response?
In a complex funds transfer, an intermediary bank may receive and transmit the
payment order.
Some courts have rejected the requirement of privity for malpractice and instead
approach each situation on a case-by-case basis.
Future goods can be identified before they are manufactured.
Securities acquired under Rules 506, 505 and 404 exemption from registration are
considered restricted securities, and their resale may require registration.
Bribery requires the use of violence.
Sarbanes-Oxley (SOX) allows whistleblowers who are retaliated against an immediate
lawsuit in federal district court.