Regulatory statutes are designed primarily to:
A. raise money.
B. protect the public.
C. define a public employee’s personal interests and public duties.
D. provide the legal system with a degree of healthy flexibility.
Answer:
Which of the following statements is TRUE?
A. Minors who have lied about their age can disaffirm their contracts.
B. A comatosed person is regarded as legally having the capacity to contract.
C. For a person adjudicated insane, his/her personal representatives cannot ratify the
contract.
D. People who regain their mental capacity can ratify their contracts.
Answer:
_____ means that a general hearing was held on the person’s mental competency, and
the court determined that the person was of unsound mind and appointed a guardian or
conservator of the person’s estate.
A. Emancipation
B. Adjudication
C. Incapacitation
D. Ratification
Answer:
Under the UCC, if the parties are both merchants, additional terms in the offeree’s form
may be included in the agreement unless:
A. the offer expressly limited acceptance to its own terms.
B. the new terms materially abide the offer.
C. the offeror gives notice of objection to the new terms without considering time limit.
D. the offeree clearly makes a counteroffer by expressly rejecting the offer.
Answer:
A straight bankruptcy is brought under _____ of the Bankruptcy Code.
A. Chapter 7
B. Chapter 11
C. Chapter 13
D. Chapter 15
A liquidation proceeding, traditionally called straight bankruptcy, is brought under
Chapter 7 of the Bankruptcy Code. Individuals, as well as businesses, may file under
Chapter 7.
Answer:
A charter option statute authorizes a corporation to adopt a specific amendment to its
articles of incorporation to:
A. grant directors and officers blanket immunity.
B. remove breach of duty as a cause of action for monetary damages against directors.
C. limit director liability without the approval of the board of directors and the
shareholders.
D. limit the maximum liability that may be imposed on directors to the sum of
$100,000.
Answer:
Which of the following is not covered by property insurance contracts?
A. Overflows from burst pipes.
B. Loss from vandalism.
C. Loss from hostile fire.
D. Nuclear contamination.
Answer:
Which of the following will destroy the negotiability of an instrument?
A. Postdating it
B. Conditioning payment on the payee’s performance
C. Permitting the holder to extend the payment date
D. Antedating it
Answer:
A distinctive word, name, symbol, or device used by a business to distinguish its goods
from those of its competitors is called a ____
A. service name.
B. service mark.
C. trade name.
D. trademark.
Answer:
Under both the UCC and the common law, the acceptance cannot materially vary from
the offer:
A. only in the sale of real estate and services.
B. only in sale of goods when the contract is made by the exchange of forms.
C. in the sale of real estate, services, and in sale of goods when forms are not
exchanged.
D. when silence is the mode of acceptance.
Answer:
Under which of the following situations can a person suffering from mental
impairment have the legal capacity to contract?
A. If the contract is for necessaries provided by parents.
B. If the person is married.
C. If the person is intoxicated from drugs or alcohol, but is not mentally retarded.
D. If the person entered a binding contract during a lucid moment.
Answer:
The elements of an intentional tort are:
A. harm to another person/property and intent.
B. harm to person or property, violation of a statute, and intent.
C. violation of a statute and intent.
D. harm to person or property and violation of a statute.
Answer:
Phoebe rented a safe deposit box in a bank to keep her valuables. In this case:
A. Phoebe is the bailee.
B. the bank is the bailor.
C. the bank is not an insurer of the contents of the box.
D. the bank is liable only for the box and not the content.
Answer:
A written stop-payment order:
A. is valid for only 14 days and cannot be extended further even if written instructions
are given to the bank by the customer.
B. is valid for only six months unless confirmed in writing.
C. is invalid.
D. is valid for six months, and can be extended for another six months if written
instructions are given by the customer.
Answer:
Which of the following is TRUE of an LLC?
A. It cannot sue or be sued in its own name.
B. Members of an LLC often share management power.
C. Members are personally liable for the wrongful acts of other members.
D. It cannot have more than 120 members.
Unlike limited partnerships, all of the investors in an LLC are able to share in
management and, unlike S corporations, there are no restrictions on the number of
members an LLC can have.
Answer:
To which of the following antitrust violations do federal antitrust laws apply?
A. Behavior that affects only intrastate (purely local) commerce.
B. Behavior that substantially affects interstate commerce or international trade.
C. Behavior that affects external economies other than the U.S.
D. Any type of nonimport trade.
Answer:
The court orders relief only if:
A. the debtor is generally not paying his/her debts as they become due.
B. a custodian takes possession of the debtor’s property within six months of the filing
of the petition.
C. the debtor is involved in a case to establish paternity.
D. the creditor wants to enforce a lien against the debtor’s property.
Answer:
“Domicile” refers to a person’s:
A. permanent home.
B. permanent and temporary residences.
C. state, where he probates his will.
D. a person’s necessity to make a particular state, home.
Answer:
The FLSA requires:
A. covered employers to pay their professional staff time and a half for hours worked in
excess of 45 in one week.
B. covered employers to pay their employees a minimum hourly wage.
C. covered employers to pay their employees double time.
D. covered employers to pay employees of both sexes equally for jobs that require
equal skill, effort, and responsibility.
In 1938, Congress passed the Fair Labor Standards Act (FLSA), which requires covered
employers to pay their employees a minimum hourly wage and to pay time and a half
for hours worked in excess of 40 in one week. Generally, employers are covered if they
are engaged in interstate commerce or if their annual gross sales exceed $500,000 and
their business affects interstate commerce.
Answer:
Which of the following statements is TRUE for the dissolution of a corporation by
agreement?
A. It doesn’t require the state’s consent to dissolve.
B. A corporation can be dissolved by oral consent of all shareholders.
C. If two corporations consolidate into a new corporation, only the old one with major
shareholders is dissolved.
D. A corporation that merges into another is dissolved.
Answer:
A person who is secondarily liable is like a(n):
A. guarantor on a contract.
B. assignor.
C. assignee.
D. drawer.
Answer: