If no beneficiary is mentioned in a life insurance, then the proceeds of the insurance go
to the insured’s estate.
A properly executed subsequent will revokes a prior will.
If a bank does not honor a check when there are sufficient funds in the drawer’s account
to pay a properly payable check, it is liable for wrongful dishonor.
An inference of the existence of a general partnership is drawn in cases where profits
are received in payment of wages owed to an employee.
Scienter means knowledge that a representation is false or that it was made without
sufficient knowledge of the truth.
In an F.O.B. place of destination, the buyer has to bear the expense and risk of loss until
the goods are tendered at the place of destination.
A competitor can lawfully discover a trade secret by performing reverse engineering.
An agent given a power of attorney is known as an attorney-in-fact.
An independent contractor cannot represent more than one principal at a time.
The relevant geographical market is always considered state-wide.
An obligee who transfers the right to receive performance is called an assignor.
Personal property that is permanently affixed to land or buildings is referred to as
chattel.
In which of the following circumstances is a decree of judicial dissolution granted to a
partner?
A) A partner is rendered incapacitated to perform his or her duties.
B) The partners do not have sufficient funds to repay debts.
C) It is not reasonably practical to carry on the business in conformity with the limited
partnership agreement.
D) All limited partners have withdrawn but the general partners want to continue with
the partnership.
In which of the following cases does a class action occur?
A) There are no factual disputes to be decided by the jury.
B) The defendant has multiple grounds for appeal.
C) A group of plaintiffs collectively bring a lawsuit against a defendant.
D) The plaintiff does not reply to the defender’s cross-complaint.
Jason orders one hundred remote-controlled toy cars from RyBy Toys. In the contract, it
is stipulated that RyBy Toys will transport the toy cars via FlyByNight, a national
carrier service. RyBy Toys makes the arrangements and hands over the toys to
FlyByNight without the remote-controllers. What was the nature of the contract
between Jason and RyBy Toys?
A) lease contract
B) destination contract
C) option contract
D) shipment contract
Which of the following is true of a trade acceptance?
A) The buyer is the payee.
B) The seller is both the drawer and payee.
C) The draft is countersigned by the drawee’s bank.
D) The draft is only as good as the drawer’s creditworthiness.
“Just Do It” is a famous tagline used by the Nike Corporation. Which of the following
types of intellectual property would this tagline come under?
A) patent
B) trade secret
C) trademark
D) copyright
Overtime pay is paid for each hour worked in excess of ________ hours that work
week.
A) 35
B) 40
C) 45
D) 50
Under the common law, innkeepers owe a duty of ________ regarding loss caused to
the personal property of transient guests.
A) negligible care
B) slight care
C) strict liability
D) ordinary care
Section 14(a) of the Securities Exchange Act of 1934 requires the disclosure of the
identities of the parties involved in a tender offer.
Which of the following actions is prohibited under the Clean Water Act?
A) inhabitation on inland areas in the vicinity of wetlands and marshes
B) chemical treatment of wastes to reduce toxicity before discharge into wetlands
C) construction of residences by filling qualified wetlands
D) creation of artificial lakes and waterways for recreation
Which of the following is true of an employer-employee relationship?
A) An employee has implied power of attorney towards the principal.
B) An employee has authority to act on behalf of the principal.
C) An employee can enter into contracts on behalf of the employer.
D) An employee is hired to perform a physical task or service.
Who among the following get first priority in the distribution of assets upon the
dissolution of a partnership?
A) investors
B) limited partners
C) general partners
D) creditors
If an auditor makes a disclaimer of opinion, this means that the auditor is ________.
A) favorable to the company’s financial statement matching its performance but notes a
few departures from Generally Accepted Accounting Principles (GAAPs)
B) unfavorable about the financial statement representing the company’s position
C) unable to draw a conclusion about the accuracy of the company’s financial records
owing to lack of information
D) favorable of the company’s financial statements representing its performance
Which of the following is true of the Nutrition Labeling and Education Act?
A) The NLEA is a state law, and its implementation is not federally regulated.
B) The NLEA applies to packaged foods and other foods regulated by the Food and
Drug Administration.
C) The NLEA mandates compulsory labeling for all kinds of raw and processed food
without any exceptions.
D) The NLEA specifically eliminates the practice of providing point-of-purchase
nutrition information by sellers.
________ is a situation in which one party threatens to do a wrongful act unless the
other party enters into a contract.
A) Scienter
B) Duress
C) Battery
D) Assault
How is a relevant market identified by Section 2 of the Sherman Act?
Compare and contrast between in rem and quasi in rem jurisdiction.
Give an account of the social responsibility of businesses and list its four main theories.
Explain how a sole proprietorship is taxed.
How is the general public protected from harassment by administrative agencies?
How has the U.S. government regulated commerce with Native Americans?