Nonnegotiable instruments are negotiated by holders in due course.
Only movable goods come under the scope of Article 2 of the UCC.
If a shoplifting suspect is detained for an unreasonably long time and is found to be
innocent, the merchant is liable for the tort of malicious prosecution.
As a part of the Marine Protection, Research, and Sanctuaries Act, dumping wastes and
other foreign materials into ocean waters are statutorily prohibited with no alternatives
like permits, licenses, and mandatory checks.
The bankruptcy of a principal is not a valid reason to terminate an agency.
Lucas, a car salesperson, has to sell John’s car. John informs Lucas that the car was
repaired after it was involved in a major accident. If Lucas intentionally tells the buyer
of the car that the car was never involved in an accident, he has committed the tort of
________.
A) substantial frolic and detour
B) intentional misrepresentation
C) self-dealing
D) competing with the principal
Stocks for which any missed dividend payments must be paid in the future to the
preferred shareholders before the common shareholders can receive any dividends are
known as ________.
A) cumulative preferred stocks
B) noncumulative preferred stocks
C) common stocks
D) participating preferred stocks
In the United States, what recourse does an accused person have in case he or she
cannot afford a private defense lawyer?
A) The government will provide an attorney to the accused free of charge.
B) The accused will have to spend his or her time in jail until he or she can obtain
enough money to afford an attorney.
C) A public defender will be appointed to the accused by the government for a nominal
fee.
D) He or she will have to defend himself or herself when the trial starts.
Greg, who wants to sell a car he owns, authorizes his concierge, Walter, to find a
potential buyer, and finalize a deal above a stipulated price. Walter contracts Jacob, an
independent car sales broker, and instructs him to only find a potential buyer and send
them over to Walter for the sale. Greg then contracts CarWreckers, an automobile
modification company to renovate his car. CarWreckers completes its work and Greg
pays them. Jacob then searches for a suitable buyer and finds one in Carl. Carl buys the
car and Jacob is paid for his services. Who is the principal during the car sale
transaction?
A) CarWreckers
B) Carl
C) Greg
D) Walter
Martin, who wants to sell a house he owns, authorizes his concierge, Wilhelm, to find a
potential buyer, and finalize a deal above a stipulated price. Wilhelm contracts Chris, a
real estate broker, and instructs him to only find a potential buyer and send them over to
Wilhelm for the sale. Martin then contracts ReNowait Goodhouses, a home
improvement company to renovate the house. ReNowait completes its work and Martin
pays them. Chris then searches for a suitable buyer and finds one in George. George
buys the house and Chris is paid for his services. What role does ReNowait Goodhouses
perform?
A) agent
B) independent contractor
C) principal
D) trustee
A(n) ________ refers to a document that demonstrates evidences of a member’s
ownership interest in an LLC (limited liability company).
A) certificate of interest
B) article of organization
C) operating agreement
D) agreement of conversion
Esteos is a country in which the federal government and the twelve state governments
share powers. The form of government in Esteos is called ________.
A) authoritarianism
B) federalism
C) unitarianism
D) democracy
Which of the following is true of a common law marriage?
A) Both parties enjoy relaxations in the eligibility criteria in terms of minimum age and
emancipation when they marry.
B) All the rights and duties of a normal licensed marriage apply to a common law
marriage.
C) A court decree of divorce is not required to end a common law marriage as there is
no marriage license or ceremony.
D) The parties involved need not provide proof of cohabitation to establish a common
law marriage.
Which of the following is true of third-party beneficiaries?
A) A creditor beneficiary is an unintended beneficiary.
B) An intended third-party beneficiary cannot enforce the contract against the promisor.
C) An incidental beneficiary cannot sue under other people’s contracts.
D) Incidental beneficiary is a third party who is benefitted intentionally.
A(n) ________ is a partnership created with no fixed duration.
A) partnership for a term
B) partnership at will
C) ordinary partnership
D) limited partnership
Which of the following must a promissory note contain to make it negotiable?
A) an acknowledgement of debt
B) an implied promise to pay
C) an unconditional promise to pay
D) a promise to negotiate
________ is a statute that relieves medical professionals from liability for ordinary
negligence when they stop and render aid to victims in emergency situations.
A) Good Samaritan law
B) Assumption of the risk
C) Duty of care
D) Res ipsa loquitur
Which of the following is a true statement about independent contractors?
A) The principal asserts substantial control over the independent contractor.
B) The principal-independent contractor relationship doesn’t involve exchange of
money.
C) The principal asserts little control over the independent contractor.
D) The principal is liable for the torts of his or her independent contractors.
Which of the following is considered real property?
A) a plantation
B) a car
C) a piece of furniture
D) a copyrighted song
Which of the following is a valid tender offer rule?
A) The offer cannot be closed after 20 business days after the commencement of the
tender offer.
B) The offer cannot be extended if the tender offeror increases the number of shares it
will take or the price it will pay for the shares.
C) Any increase in price paid for shares tendered must be offered to all shareholders,
including those who have previously tendered their shares.
D) A shareholder who tenders his or her shares loses the right to withdraw them prior to
the closing of the tender offer.
A(n) ________ occurs when there is a transfer of both rights and duties under a
contract.
A) assignment and delegation
B) declaration of duties
C) assumption of duties
D) discharge