A no-fault insurance assures an insured party that coverage is available if they are
injured in an automobile accident.
Members of LLCs (limited liability companies) are not personally liable for the LLCs’
debts, obligations, and liabilities.
Chattel paper is considered tangible personal property.
Under Chapter 13, a debtor retains more property than is exempt under Chapter 7
liquidation.
A royalty fee is an amount paid by the franchisor to the franchisee for the continuous
use of its trademarks and maintenance of quality.
A franchisee subject to wrongful termination can only recover damages, and not the
franchise.
A bailment at will can be terminated at any time by either party.
The Uniform Commercial Code places the risk of loss of an incomplete item on the
drawee.
The antitrust laws were enacted to promote anticompetitive behavior in commerce and
industry.
General partnerships do not pay federal income taxes.
All state regulatory laws are drafted by the federal government and then adopted by the
state.
An association of two or more persons to carry on as co-owners of a business for profit
is known as a(n) ________.
A) limited partnership
B) sole proprietorship
C) corporation
D) general partnership
Roland and Kelly were involved in a car accident in which Kelly was badly injured and
had to be hospitalized. After investigation, it was found that Roland’s negligence was
the cause of the accident. He was duly charged with reckless driving, which is classified
as a crime. What action should Roland take to avoid being sued by Kelly, who held him
liable for her injuries and subsequent hospital bills?
A) enter into a plea of nolo contendere
B) plead not guilty and go to trial
C) enter into a plea bargain with the government and pay a nominal penalty set by the
government
D) plead guilty and serve the punishment set by the government as it will serve as the
all-binding punishment for the crime
Sending an objectionable e-mail to a third party and signing another’s name constitute
the tort of ________.
A) invasion of the right to privacy
B) defamation of character
C) battery
D) intentional misrepresentation
Which of the following types of insurances provides replacement cost insurance?
A) health insurance
B) standard fire insurance
C) disability insurance
D) life insurance
Which of the following is classified under “common securities”?
A) real estate
B) bullion
C) debenture
D) bank deposit
In 1978, the ________ which prohibits employment discrimination because of
pregnancy, childbirth, or related medical conditions was enacted as an amendment to
Title VII of the Civil Rights Act.
A) Pregnancy Discrimination Act
B) Sex Discrimination Act
C) Gender Discrimination Act
D) Sexual Harassment Act
Which of the following is an example of a contract contrary to statutes by its very
existence?
A) a usurious loan contract
B) a contract between two minors
C) a contract where one party is insane but not adjudged insane
D) a contract of adhesion
Vanessa is born to American parents from a minority group in Miami. She applies to a
public university that offers scholarships only to students from minority groups. Which
of the following standards of review is used to decide if the university violates the
Equal Protection Clause by offering Vanessa the scholarship?
A) rational basis
B) intermediate scrutiny
C) strict scrutiny
D) cogent basis
Which of the following types of clauses, in a franchise agreement, provides that any
claim or controversy arising from the franchise agreement or an alleged breach thereof
will be settled outside the courts?
A) reserve clause
B) arbitration clause
C) integration clause
D) covenant not to compete
The ________ Act of 1976 specifically imposes penalties and fines for the willful
understatement of a client’s tax liability.
A) Tax Reform
B) Racketeer Influenced and Corrupt Organizations
C) Private Taxation Litigation Reform
D) Uniform Securities
An implied warranty of ________ is a warranty that applies to food or drink consumed
on or off the premises of restaurants, grocery stores, fast-food outlets, and vending
machines.
A) statement of opinion
B) express warranty
C) stamp of approval
D) fitness for human consumption
Which of the following best describes a partially disclosed agency?
A) an agent with multiple principals who do not know each other’s identities
B) a transaction in which the third party does not know the identity of the agent
C) a transaction in which the third party knows the agent, not the principal
D) an agent who discloses only the name of his or her principal in a transaction
Lila Miller who works for a large software firm is four months pregnant and is due for a
promotion. However, her employer offers the promotion to Harry Oswald, a
less-experienced candidate, as Lila would go on maternity leave soon and would be
unable to perform her duties. Which of the following is true of this scenario?
A) Lila’s employer is not liable for disparate-treatment discrimination.
B) Lila’s employer is liable for disparate-impact discrimination.
C) The employer was justified in denying Lila the promotion.
D) Lila’s employer may have violated Title VII of the Civil Rights Act of 1964.
Which of the following occurs when one party intentionally hides a material fact from
another party?
A) fraud in the inducement
B) fraud in concealment
C) silence as misrepresentation
D) misrepresentation of law
The legal power to accept an offer belongs to the ________.
A) offeror
B) offeree
C) agent
D) seller
The National Environmental Policy Act (NEPA) and Environmental Protection Agency
(EPA) regulations require that an environmental impact statement (EIS) be prepared by
the state government.
A(n) ________ is an indorsement that states that it is for the benefit or use of the
indorser or another person.
A) indorsement in trust
B) indorsement for deposit
C) indorsement prohibiting further indorsement
D) indorsement for collection
An employer pays higher wages to Shelly—who has worked with the company for six
years—than Samuel, who holds a similar position to Shelly and performs the same
functions as her and has worked with the company for only five and a half years. Which
of the following is true of this case?
A) The employer has violated the Fair Employment Practices Act.
B) The employer is liable for disparaged-treatment discrimination.
C) The employer is liable for disparaged-impact discrimination.
D) The employer may not have violated the Equal Pay Act.