A security interest is perfected when the secured party has a legally enforceable right to
take the property and sell it to satisfy the debt.
_____ consist of rules of conduct established by the government of a society to
maintain harmony, stability, and justice.
A. Morals
B. Ethics
C. Laws
D. Values
The most-favored nation principle allows:
A. economically developing nations to receive special treatment.
B. the developed nations to obtain economic advantages.
C. all member nations to have similar treatment regarding similar imports.
D. poor nations to receive financial payments from wealthy nations.
__________________ is the process by which the courts decide that a federal statute
must take precedence over a state statute.
A. Devolution
B. Revision
C. Uniformity
D. Preemption
Which legislation specifically addresses promotional allowances?
A. Clayton Act
B. Robinson-Patman Act
C. Federal Trade Commission Act
D. Sherman Act
Jamie authorizes Amy to sell his house, but does not clarify about the compensation
payable to Amy. What amount should be paid to Amy when she sells Jamie’s house?
A. Nothing, since agency relationships are assumed to be gratuitous unless an
agreement specifies compensation.
B. An amount to be determined by arbitration.
C. A fair value for the service performed.
D. Ten percent of the sales price.
The Dispute Settlement Board allows:
A. retaliatory measures.
B. imposition of tariff for no more than 10 months.
C. a ban on the imports of the offending nation for no more than 5 months.
D. a boycott.
ADR is most likely to be useful in cases involving _______________.
A. constitutional law
B. civil rights
C. contracts
D. criminal law
When merchants bought goods, instead of paying for them with gold or silver, they
simply filled in a piece of paper called the ____, which ordered the goldsmith or
silversmith to give a certain amount of the precious metal to the person who sold the
goods.
A. demand note
B. promissory note
C. bill of exchange
D. certificate of deposit
Jack has an auto accident while on business for Small Enterprises, an RLLP consisting
of Jack and Alex. Who is liable for damages resulting from the auto accident?
A. Small Enterprises only
B. Jack only
C. Jack and Alex only
D. Small, Jack, and Alex
Carl finds a lost dog and returns it to its owner, Betty. Betty gives Carl a check for $50
for his efforts, but later stops payment on the check. Carl cashed the check at
Cash-All-Checks, who now seeks to recover from Betty. Will Cash-All-Checks be
successful?
A. Betty has a real defense against Carl and Cash-All-Checks.
B. Betty has no defense against Cash-All-Checks, hence the latter will be successful.
C. Betty has a personal defense that allows Cash-All-Checks to be successful.
D. Betty has a defense against Cash-All-Checks since the check is less than $100.
While living in Oregon, Lillian was accused of molesting several children in Idaho five
years earlier, where she had worked as a social worker. Lillian could be brought back to
Idaho for trial:
A. under the Uniform Commercial Code.
B. through persuasive precedent.
C. under the Third Amendment to the U.S. Constitution.
D. under Article IV of the U.S. Constitution.
Which of the following statements holds true for a patent?
A. A patent application cannot be accessed by the general public.
B. A patent expires at the end of a 20-year period.
C. A patent is subject to “first-to-invent” patent process rather than the “first-to-file”
process.
D. A patent is a process used in a business and disclosed only to those employees who
need to know it to do their jobs.
Tammy’s ATM card is stolen. If she notifies the issuer of the card of the theft within two
business days of theft, Tammy will be liable for:
A. $50 of unauthorized use.
B. $100 of unauthorized use.
C. $500 of unauthorized use.
D. $1000 of unauthorized use.
Nodest Co., a Delaware corporation, wants to do business in California. Nodest:
A. does not need to take any particular action.
B. must incorporate in California.
C. must obtain a certificate of authority from California.
D. must obtain certificates of authority from both California and Delaware.
Mathew made his will leaving his estate to his only son, Andrew. Two years later, he
felt inclined to leave $100,000 toward a new old age home under construction in his
locality. Mathew may make this bequest:
A. by executing a codicil.
B. by adding the bequest to the original will and initialing it.
C. by writing the bequest on a separate sheet and affixing it to the original.
D. by executing a durable power of attorney.
Which of the following can be used as a personal defense?
A. Infancy
B. Illegality and duress
C. Bankruptcy
D. Payment
Typically, if a decision is made by the Florida Supreme Court, it would be:
A. persuasive in some Florida states courts.
B. binding in all Florida state courts.
C. binding in all other state courts.
D. persuasive in all Florida states courts.
A robber kills a convenience store clerk and escapes with just $5. Which of the
following types of homicide best fits the facts?
A. Second-degree murder
B. First-degree murder
C. Voluntary manslaughter
D. Involuntary manslaughter
Which of the following is true of survival statute?
A. It allows suits to be brought for libel after the death of a defamed person.
B. It preserves the right to bring a lawsuit only if the death is caused by negligence of
the defendant.
C. It can only be brought by family members who have lost the support of the
deceased.
D. It preserves the right to bring a lawsuit for personal injuries, no matter what caused
the death(s).
When a buyer has a right to inspect the goods, the right usually must be exercised:
A. before the goods are shipped.
B. after the goods are shipped but before delivery.
C. before accepting the goods.
D. within ten days of accepting the goods.
A check for which the issuing financial institution is both the drawer and the drawee is
called a ____.
A. bank draft.
B. cashier’s check
C. certified check
D. traveler’s check
Aspen assigns his right to receive payment from Donna to Henry. Later Aspen assigns
this same right to Doris. Doris gives notice to Donna on May 1 and Henry gives notice
to Donna on May 2. Which of the following is most likely to be the court’s ruling?
A. Since Henry was the first assignee, he will be given the superior right to claim
Aspen’s benefits.
B. Since Doris was the first to notify Donna, she will be given the right to claim the
assigned benefits.
C. Henry and Doris are joint assignees and will be given equal rights to claim the
assigned benefits from Donna.
D. Donna will be required to pay to Aspen, who in turn will be asked to make
respective payments to Doris and Henry.
_____ refers to the actual document that is used to request the right to vote the other
shareholders’ votes.
A. Proxy solicitation
B. Pooling agreement
C. Cumulative voting
D. Voting trust
Which of the following is true of fair courts?
A. They were tribunals set up in seaport towns to handle disputes involving maritime
law.
B. They heard cases that involved only a certain set of commodities.
C. They applied common law to all commercial cases.
D. They heard cases involving commercial disputes.
A case that undergoes a summary jury trial must:
A. deal with questions of criminal law rather than civil law.
B. have previously undergone mediation and arbitration proceedings.
C. involve a bona fide dispute as to the authentic questions of law.
D. be resolved in a settlement discussion rather than a trial.
A new administrative regulation allowed the Social Security Administration to charge
women for Social Security cards yet enabled men to obtain the cards for free. This
regulation was contradictory to the constitution. Hence the U.S. Supreme Court is likely
to:
A. review common law to see whether a precedent exists.
B. use statutory interpretation to clarify the law.
C. rule the regulation as unconstitutional.
D. let the regulation stand.
Which of the following is true of time for performance?
A. When there is nothing to indicate in the contract that time is of importance, the court
will allow additional time.
B. Time period cannot be enforced simply by including the phrase “time is of the
essence” written contract.
C. When the time for performance is not stated in the contract, the contract must be
performed within a reasonable time.
D. When there is something special about the contract that indicates time is essential,
additional time is allowed.
_______________ is a non-binding process where neutral third party works with the
parties to reach a mutually agreeable settlement.
A. Negotiation
B. Mediation
C. Litigation
D. Partnering
Which of the following statements about “the wage and hour provisions of the FLSA” is
true?
A. Full-time students cannot be employed.
B. They apply to all people employed in an administrative capacity.
C. Exempt workers are generally identified as those who manage other employees.
D. They permit the employment of apprentices at the minimum wage.
Joe signed a promissory note for $5,000 to cover the cost of roofing repairs by Acme
Roofing Company. Acme transferred the note to Big Bank who sued Joe when he failed
to pay the note. Joe believes that Acme did not do the repairs properly. If Joe wants to
bring Acme into court, then Joe’s answer should contain a:
A. counterclaim against Acme.
B. cross-claim against Acme.
C. third-party complaint against Acme.
D. new lawsuit against Acme.
A(n) _____ is an amount of any loss that is to be paid by the insured and can be a
specified dollar amount, a percentage of the claim amount, or a specified amount of
time that must elapse before benefits are paid.
A. loan value
B. deductible
C. annuity
D. cash surrender value
Fraser entered into a written contract with the Plastica Company to purchase 100 plastic
black bats for a Halloween party he was hosting. The terms of the contract called for
Plastica to deliver all 100 bats by October 25. On October 20, Fraser received from
Plastica 85 plastic bats and 15 paper red bats. A letter accompanying the shipment
stated, “We no longer make plastic black bats. For the inconvenience, we will charge
you 15 percent less than the price we originally agreed upon.” Was the contract between
Fraser and Plastica an executed contract? Explain.
