A person having origins in any of the original peoples of the Middle East belongs to the
Caucasian racial group.
The agent is not liable on the contract in a fully disclosed agency.
Cabinet members of cabinet-level federal departments are chosen directly by the
president.
An offering statement requires less disclosure compared to a registration statement.
A negotiable instrument must be in writing in order to be considered valid.
Incorporators cannot become shareholders of the corporation they are associated with.
The warranty of no interference warrants that goods sold are free from any third-party
security interests, or encumbrances that are unknown to the buyer.
A new owner of a servient estate cannot inherit the appurtenant easement.
The implied warranty of merchantability does not apply to sales or leases by
nonmerchants or casual sellers.
A general partnership agreement must always be in writing to be considered legal.
Insurgent shareholders are shareholders who propose a slate of directors to replace the
incumbent directors.
The Fair Housing Act specifically prohibits discrimination against disabled individuals
in employment, public services, and public accommodations and services.
________ is a situation in which a creditor agrees to extend credit only if the purchaser
pledges some personal property as collateral for the loan.
A) Floating lien
B) Attachment
C) Mortgage
D) Secured credit
Which of the following best defines a surviving corporation?
A) a corporation that continues its operations after filing for bankruptcy
B) a corporation that has been in existence for at least 50 years
C) a proprietorship or partnership that evolved into a corporation
D) a corporation that continues to exist after a merger
Which of the following is true of a subsidiary of a multinational corporation present in a
foreign country?
A) The subsidiary corporation is organized under the laws of the foreign country.
B) There is no liability shield between the parent company and the subsidiary.
C) The parent company is wholly responsible for torts committed by the subsidiary.
D) The subsidiary corporation is not considered a separate legal entity.
Under the 2005 bankruptcy act, if non-exempt personal property of an individual debtor
secures a claim or is subject to an unexpired lease, the debtor ________.
A) must surrender the property
B) can appeal for exemption of the property
C) must terminate the lease with immediate effect
D) cannot redeem the property
If an independent contractor enters into a contract with a third party on behalf of the
principal without express or implied authority from the principal to do so, who among
the following is liable on the contract?
A) the principal
B) the independent contractor
C) the third party
D) both the principal and independent contractor
Which of the following is true of the Do-Not-Call Registry for consumers?
A) The registration is valid for the lifetime of the customer who opted for it.
B) Telemarketers have three days to remove the customer’s name upon registry.
C) Charitable and political organizations are exempted from the registry.
D) Customers cannot choose the companies that they do not wish to receive calls from.
Which of the following best describes the tort of battery?
A) unauthorized and harmful or offensive physical contact with another person that
causes injury
B) an action that arouses reasonable apprehension of imminent harm
C) oral or written defamation of another person’s character
D) intentional confinement or restraint of another person without that person’s consent
________ is an action to undo a contract.
A) Rescission
B) Recession
C) Restitution
D) Retribution
The Miranda rights refer to the ________ provision of the Fifth Amendment of the U.S.
Constitution.
A) double jeopardy
B) unreasonable searches and seizures
C) privilege against self-incrimination
D) parole eligibility
The ________ has jurisdiction to enforce the most important and comprehensive trade
agreements in the world among its 160 member nations and customs territories.
A) World Trade Organization
B) International Monetary Fund
C) North American Free Trade Agreement
D) General Agreement on Tariffs and Trade
My-Wear Inc. is an apparel retailer based in San Francisco. It operates through a
franchise named KL Apparels in Santa Clara. After about six years of operation,
My-Wear Inc. cancelled the franchise with KL Apparels without any notification. The
franchise period specified in the contract had not expired and the franchisee had met all
standards stated by the franchisor. This constitutes a ________.
A) termination at will
B) termination for cause
C) contractual termination
D) suspension by franchisor
Which of the following statements is true about the freedom of speech guaranteed by
the Bill of Rights?
A) The Freedom of Speech Clause was added to the Constitution in the Third
Amendment.
B) The Freedom of Speech Clause protects speech only, not conduct.
C) There is no provision for fully protected speech in the Constitution.
D) Burning the American flag in protest to a federal government military action is in
violation of the Freedom of Speech Clause.
Under the E-SIGN Act, an e-signature can be verified by using ________.
A) a smart card
B) a domain name
C) HTTP
D) an ISP
The ________ has special appellate jurisdiction to review the decisions of the Court of
Federal Claims, the Patent and Trademark Office, and the Court of International Trade.
A) U.S. District Court
B) U.S. Court of Appeals for the Federal Circuit
C) First Circuit Court
D) District of Columbia Circuit
A person who signs an instrument and lends his or her name, and credit to another party
to the instrument is referred to as a(n) ________.
A) agent
B) qualified indorser
C) unqualified indorser
D) accommodation party
Which of the following is true of a buyer with an output contract?
A) The buyer cannot sue the seller in case the seller plans to share its output with
another buyer.
B) The buyer can choose to buy when and what he wants from the seller.
C) The buyer is obliged to buy all the goods sold by the seller.
D) The buyer cannot enforce the best-efforts clause in the output contract.
A(n) ________ is an action a party to a sales or lease contract is required by law to
carry out.
A) obligation
B) breach
C) capture
D) revocation
Briefly explain the formation of a general partnership.
Discuss mail fraud and wire fraud.