Under the defense of contributory negligence, if Mary is partially responsible for her
injuries, then she can recover partial damages from the defendant.
In a spendthrift trust, all control over the trust is removed from the beneficiary.
A qualified indorser is only liable for secondary liability.
According to the doctrine of ademption, the lineal descendants inherit by representation
of their parent.
A promise is something of legal value given in exchange of a consideration.
The board of director’s right to inspection can be limited by bylaws.
A ________ is a specialized state court that supervises the administration and
settlement of estates.
A) small claims court
B) federal court
C) tort court
D) probate court
A franchisor discloses a cautionary statement that reads, “Caution: Some outlets have
sold this amount. There is no assurance you’ll do as well. If you rely upon our figures,
you must accept the risk of not doing so well.” This is an instance of ________.
A) disclosure of earning projections based on actual data
B) disclosure of sales projections based on hypothetical data
C) nondisclosure of sales or earnings projections
D) fraudulent disclosure by the franchisor
If the federal government has chosen not to regulate an area of interstate commerce that
it has the power to regulate under its Commerce Clause powers, this area of commerce
is subject to the ________.
A) Free Exercise Clause
B) Dormant Commerce Clause
C) Due Process Clause
D) Privileges and Immunities Clause
The ________ is a federal statute that makes it illegal for an employer to discriminate
against job applicants and employees based on genetic information.
A) Americans with Disabilities Act (ADA)
B) Genetic Information Nondiscrimination Act (GINA)
C) Americans with Disabilities Act (ADAAA)
D) Older Workers Benefit Protection Act (OWBPA)
Mike deposited $100,000 in a bank and procured a certificate of deposit on it, payable
to himself, for repayment in five years with a five percent interest rate. A year after that,
Mike borrowed $25,000 from Jill, and gave her a promissory note to repay it in one
year. As collateral, Mike gave Jill the certificate of deposit and asked to put in a
prepayment clause, to which Jill agreed. They agreed that Mike could repay in monthly
payments, as mentioned in the note. If Mike defaults on the payment even after one
year, which of the following is true of the foreclosure options Jill has with the
certificate of deposit Mike gave her?
A) The bank has to pay her only after the five-year period mentioned in the CD.
B) The bank does not have to pay her for the CD.
C) The bank has to pay her the difference of $75,000.
D) The bank has to pay her $25,000 with one year interest of 5 percent on demand.
Which of the following is true of the liabilities of a franchisor and a franchisee?
A) The franchisor is not liable for any tort arising out of the franchise.
B) Both franchisee and franchisor are jointly liable for torts committed by either.
C) Franchisees are only liable on their own contracts.
D) Franchisors are always liable for the torts of the franchisees.
Which of the following best defines a subsidiary corporation?
A) a corporation that is absorbed into a merger
B) a corporation that continues to exist after a merger
C) a corporation that has bought all the shares of another corporation
D) a corporation that is owned by the parent corporation in a share exchange
Concreate Development requires architects to design its latest venture—a 64-story
skyscraper. It makes a business arrangement with Excellent Architecture and acquires
four architects on contract for the ongoing project. This is an instance of a ________.
A) licensing arrangement
B) franchise
C) limited partnership
D) joint venture
An LLC (limited liability company) is a ________ in the state in which it is organized.
A) sole proprietorship
B) domestic LLC
C) term LLC
D) general partnership
A ________ refers to a contract that transfers limited rights in intellectual property and
informational rights.
A) lien
B) tender
C) license
D) trademark
Which of the following statements is true of contracts?
A) The offeror is the party to whom an offer to enter into a contract is made.
B) An offeree is the authority that supervises the signing of a contract.
C) A contract is created when the offer is made and before it is accepted.
D) To have an enforceable contract, there must be mutual assent by the parties.
When is a creditor a secured creditor?
A) the creditor has been guaranteed payment by a trustee
B) the creditor gives a loan without security
C) the creditor has been paid back his debt
D) the creditor has acquired collateral
Which of the following is an exception to the Foreign Sovereign Immunities Act?
A) the sham exception
B) the managed trade exception
C) the diversity of citizenship exception
D) the commercial activity exception
Payments made by one divorced spouse to the other divorced spouse are collectively
referred to as ________.
A) debt money
B) trust money
C) estate
D) alimony
What is the difference between a full warranty and a limited warranty?
What is a life estate?
Compare and contrast publicly held and closely held corporations.
List the major federal statutes that regulate the labor-management relationship, and
briefly summarize their provisions.
How is child custody after a divorce dealt in the United States?
Give an account of state antitrust laws.
Explain the doctrine of equity with reference to contracts.
Why can an agent generally not take an opportunity meant for the principal? Is an agent
ever permitted to take such an opportunity? Give an example of an agent’s violation of
the duty of loyalty.