A presentment is a demand for the acceptance of a dishonored instrument.
The delivery term “no-arrival, no-sale” can be added to a shipment contract.
If a seller is a merchant with respect to certain goods, there is an implied warranty that
the quality of the goods must pass without objection in the trade.
Dividends are a distribution of corporate profits to shareholders.
A general power of attorney limits the agent to those acts enumerated by the agreement.
An easement in gross does not create a dominant estate.
An investment contract is a flexible standard for defining a security.
Section 2A-201(1) of the Uniform Commercial Code (UCC) states that lease contracts
involving payments of $1,000 or more must be in writing.
An entrepreneuris a person who forms and operates a business.
A deed of trust is a two-party instrument.
What is the right to cure in sales or lease contracts?
A) The right of the buyer to ask for a replacement of nonconforming goods.
B) The right of the seller to ship nonconforming goods on grounds of prior acceptance.
C) The right of the seller to fix nonconforming goods.
D) The right of the buyer to reject shipment of conforming goods.
Which of the following statements is true of the U.S. Supreme Court?
A) The U.S. Supreme Court’s decisions are appealable.
B) The U.S. Supreme Court hears appeals only from the federal circuit courts of
appeals.
C) The U.S. Supreme Court does not hear any new evidence or testimony in reviewed
cases.
D) The U.S. Supreme Court does not grant any oral hearings to the parties.
A(n) ________ is defined as intentional misrepresentation or omission of a material fact
that is relied on by the client and causes the client damage.
A) unqualified opinion
B) actual fraud
C) disclaimer of opinion
D) constructive fraud
A person who is in possession of a negotiable instrument that is drawn, issued, or
indorsed to him or to his order, or to bearer, or in blank is referred to as a(n) ________.
A) holder
B) holder in due course
C) assignor
D) assignee
Sylvester, acting as a representative agent for Jerry, signs a negotiable instrument with
the signature€Jerry, by Sylvester, agent. What kind of liability does Sylvester have for
this type of signature?
A) He is not liable on the instrument.
B) He is liable to the payee.
C) He is liable to Jerry.
D) He is liable to the HDC of the instrument.
Which of the following is true of the bankruptcy procedure?
A) A driven petition is a petition filed by a debtor that states that he or she has debts.
B) A debtor must receive prepetition credit counseling within 180 days prior to filing
his or her petition for bankruptcy.
C) A voluntary petition is filed by creditors of a debtor, alleging that the debtor is not
paying his or her debts as they become due.
D) A complaint is a document filed with a bankruptcy court that starts a bankruptcy
proceeding.
Blue Rorschach Inc. has an immediate requirement for 80 laptops and contracts with
Zenzo Electronics for 80 Dell laptops at $550 each. However, Zenzo Electronics
breaches the contract and fails to deliver the laptops. Blue Rorschach then immediately
contracts Dell Computers, buys 100 laptops at $600 per laptop and then sues Zenzo
Electronics for the breach of contract.
What legal right to remedy did Blue Rorschach exercise when contracting Dell
Computers and suing Zenzo for failure of delivery of goods?
A) right to replevy goods
B) right to cover
C) right to recover damages for accepted nonconforming goods
D) right to obtain specific performance
A ________ is a judgment of a court that permits a secured lender to recover other
property or income from a defaulting debtor if the collateral is insufficient to repay the
unpaid loan.
A) deficiency judgment
B) garnishment
C) lien release
D) foreclosure judgement
Which of the following kinds of lease agreements exists between Chris and Dave?
A) an accommodation
B) a gross lease
C) an assignment
D) an easement
Which of the following describes an agency by estoppel?
A) an agency that arises when a principal ratifies a contract created by an unauthorized
agent
B) an agency created when a principal and an agent expressly agree to enter into an
agency agreement
C) an agency that is not expressly stated but is implied and inferred in the conduct of
the parties
D) an agency that arises when a principal creates the appearance of an agency that in
actuality does not exist
Which of the following constitutes a case of anticipatory breach?
A) It occurs when a contracting party fails to inform the other party in advance about
nonperformance of his or her contractual duties when due.
B) In case of anticipatory breach, nonbreaching party’s obligations under the contract
are not discharged.
C) The nonbreaching party must wait until performance is due to sue the breaching
party.
D) Anticipatory breach can be derived from the conduct of the breaching party without
being expressly stated by that party.
Which of the following is true of misrepresentation?
A) Innocent misrepresentation is grounds for the aggrieved party to sue for damages.
B) Misrepresentation of law is not actionable as fraud.
C) Innocent misrepresentation cannot be treated as a mutual mistake.
D) Misrepresentation of law can never be grounds for rescission of the contract.
According to the Economic Espionage Act, ________.
A) persons who have reverse engineered a trade secret can use that trade secret, and the
related trademark
B) the rights to a trade secret will have to be renewed after a specified period of time
C) trade secrets can be shared for a limited amount of time
D) it is a federal crime to steal another’s trade secret
Stanley lost a court case and was ordered to pay $50,000 to Wade. The day after the
judgment, Stanley went missing, leaving Wade with no direct contact to recover the
money. Wade then obtained a writ ordering the bank with Stanley’s savings account to
pay Wade. Which of the following writs did Wade use?
A) writ of garnishment
B) writ of attachment
C) writ of prohibition
D) writ of exigent
The General Assembly of the United Nations (UN) is ________.
A) a collection of autonomous agencies that deals with the socio-economic problems of
the United States
B) the legislative body of the United Nations that is composed of all UN member
nations
C) a group of 15 member nations that is primarily responsible for maintaining
international peace and security
D) the staff of persons that administers the day-to-day operations of the UN
According to the public use doctrine for patents, ________.
A) a patent will not be granted if the invention was already in public use for more than
a year prior to the filing of the patent application
B) an invention cannot be used in the public domain prior to it being granted a patent
C) the inventor has to test his invention in the public domain, to measure its validity,
before being granted a patent
D) the invention will come into the public domain once its term period has expired