Under the Consumer Product Safety Act, a private party can sue for an injunction to
prevent violations of the act or of CPSC rules and regulations.
Point sources are sources of pollution that are fixed and stationary.
An annual shareholders’ meeting is held to elect new shareholders.
Trademarks that have become generic names are protected under federal trademark law.
Motions for summary judgment are supported by evidence outside of the pleadings.
A person is permitted to assign a currently nonexistent right that he or she expects to
have in the future.
An agent who has negligently or intentionally failed to perform his express duties is
liable under tort law.
A Totten trust is considered a tentative trust because a trustee can add or withdraw
funds from the trustee’s account.
Competitors who agree that each will serve only a designated portion of the market are
deemed to be engaging in a group boycott.
The party that employs an independent contractor is called an agent.
Section 14(e) of the Williams Act is a(n) ________ regarding tender offers.
A) antifraud provision
B) shareholders rights provision
C) merger provision
D) acquisition provision
The ________ Act of 2010 is a federal statute that requires increased disclosure of
credit information and terms to consumers and regulates consumer credit providers and
others.
A) Fair Credit Billing
B) Consumer Leasing
C) Mortgage Reform and Anti-Predatory Lending
D) Consumer Financial Protection
Ruggers Corp. is a maker of a range of highly popular cruise motorcycles. Tim buys a
Ruggers motorcycle from a dealership and suffers an accident. While recuperating from
his injuries, he learns that Ruggers has recalled all motorcycles it had manufactured and
sold in the previous two years, owing to a previously-unknown defect in their braking
systems. Tim brings a product liability lawsuit against the motorcycle manufacturer and
claims $50,000 in damages. The defect in the motorcycle is found to be half responsible
for the accident, while Tim’s own negligence of traffic rules contributed to the rest.
Under the doctrine of contributory negligence, what would be the ruling of the court
hearing this case?
A) Tim can recover $25,000 worth of damages from Ruggers and the rest from the
dealership from which he purchased the motorcycle.
B) Tim can recover $50,000 worth of damages from the motorcycle manufacturer.
C) Tim can recover $50,000 worth of damages, plus any punitive damages that may be
awarded by the jury.
D) Tim cannot recover any damages from the motorcycle manufacturer.
Which of the following is considered to be a primary defense against Section 7 of the
Clayton Act?
A) Noerr doctrine
B) Colgate doctrine
C) the failing company doctrine
D) conscious parallelism doctrine
Which of the following federal agencies is empowered to enforce federal franchising
rules?
A) the Federal Trade Commission (FTC).
B) the Securities and Exchange Commission (SEC).
C) the Federal Communications Commission (FCC).
D) the Commodity Futures Trading Commission (CFTC).
Which of the following governs a limited partnership, its internal affairs, and the
liability of its limited partners?
A) the federal government
B) all states in which the business operates
C) the articles of limited partnership
D) the law of the state in which it is organized
Which of the following is true of the median income test?
A) If a family has median family income equal to the state’s median family income, the
debtor does not qualify for a Chapter 7 bankruptcy.
B) If a family has median family income below the state’s median family income, the
debtor is subject to the “means” test.
C) If a family has median family income below the state’s median family income, the
debtor automatically qualifies for a Chapter 7 bankruptcy.
D) A debtor’s debts are not discharged if the family median income is more than the
state’s median family income.
Jennifer signs a promissory note to pay $2,500 to Clara. Clara negotiates the instrument
and indorses it to Anthony. Anthony alters the note to make the payment amount
$25,000 and negotiates the note to Nicholas. Nicholas indorses the note and negotiates
it to Mack. Nicholas and Mack are both unaware of Anthony’s alteration. If Mack
presents the note to Jennifer for payment, how much, if anything is Jennifer obligated to
pay?
A) $25,000
B) $22,500
C) $2,500
D) Jennifer is not obliged to pay Mack
Which of the following is true of the right to sue letter issued by the Equal Employment
Opportunity Commission (EEOC)?
A) It is issued when the Equal Employment Opportunity Commission (EEOC) chooses
to bring suit.
B) It is issued when the Equal Employment Opportunity Commission (EEOC) does not
find a violation.
C) It is issued when the complainant is found guilty.
D) It is issued only when the discrimination is racial in nature.
Which of the following duties is owed by the parties in a mutual benefit bailment?
A) duty of great care
B) duty of slight care
C) duty of ordinary care
D) duty of utmost care
Guarantees that establish a debtor-creditor relationship in which the corporation
borrows money from the investor to whom a debt security is issued are known as
________.
A) authorized shares
B) preferred stocks
C) common stocks
D) fixed income securities
Raj is making a wire transfer for a sum of $1,600 to his friend’s checking account. If
Raj fails to comply with the rules of the transaction, he would be violating ________ of
the Uniform Commercial Code (UCC).
A) Article 3
B) Article 3A
C) Article 4
D) Article 4A
Unless properly disclaimed, a warranty is implied that sold or leased goods are fit for
the ordinary purpose for which they are sold or leased, as well as other assurances,
known as the implied warranty of ________.
A) volatility
B) cause of action
C) assertion
D) merchantability
Which of the following is primarily responsible for enforcing the provisions of the
Clean Water Act?
A) the federal government
B) independent agencies
C) the state government
D) nonprofit organizations
Property that the owner leaves somewhere due to negligence, carelessness, or
inadvertence is referred to as ________ property.
A) abandoned
B) real
C) lost
D) mislaid