A letter of credit is considered an informal contract as it does not have a special method
of creation.
An offer to create a unilateral contract cannot be accepted by a promise to perform.
A contract is considered to be supported by legal value if the promisee receives a legal
benefit.
In federalism, the federal government and the state governments share powers.
The World Trade Organization (WTO) appellate body hears appeals that are limited to
issues of law, not fact.
In order to be considered valid, a negotiable instrument need not state a fixed amount of
money.
The legal theory that holds accountants liable to any member of a limited class of
intended users for whose benefit the accountant has been employed is the Section 552
of the Restatement (Second) of Torts.
The case against the accused is dismissed if neither an indictment nor an information
statement is issued.
A group of employees that a union is seeking to represent is known as a bargaining unit.
Treasury shares cannot be issued by the corporation.
A rejection of an offer is not effective until it is actually received by the offeror.
A party that does not register its brand name has no legal right over it.
If a buyer accepts nonconforming goods, the buyer may seek remedies against the
seller.
The doctrine of part performance allows the court to order an oral contract for the sale
of land or transfer of another interest in real property to be specifically performed if
performance is necessary to avoid injustice.
Modification to a sales or lease contract is binding even if it is made under duress.
Which of the following is true of a minor’s right to disaffirm a contract?
A) A minor must reach the age of majority to disaffirm a contract.
B) Contracts that come under the necessaries of life can be disaffirmed by minors.
C) Minors are exempt from duty of restoration during the period of minority.
D) A minor can expressly disaffirm a contract orally or in writing.
Which of the following benefits is a component of Social Security benefits?
A) workers’ compensation
B) legal assistance
C) unemployment compensation
D) disability benefits
The ________ requires that government statutes, ordinances, regulations, and other
laws be clear on their face and not overly broad in scope.
A) procedural due process
B) substantive due process
C) intermediate scrutiny test
D) rational scrutiny test
According to priority, which of the following claimants is the last to be paid after assets
have been liquidated of a corporation?
A) creditors
B) common stockholders
C) preferred shareholders
D) bond holders
A ________ is a merger between a parent corporation and a subsidiary corporation that
does not require the approval of the board of directors of the subsidiary corporation.
A) share exchange
B) short-form merger
C) short-term merger
D) reverse takeover
Which of the following protects consumers’ ability to challenge information contained
in a credit file?
A) Fair Credit Billing Act
B) Equal Credit Opportunity Act
C) Fair Debt Collection Practices Act
D) Fair Credit Reporting Act
A person who has been authorized to sign a negotiable instrument on behalf of another
person is known as a(n) ________.
A) holder in due course
B) accommodation party
C) agent
D) principal
Jeffrey became a victim of fraud when he entered a pyramid scheme which turned out
to be a scam. In order to claim damages, Jeffrey has to prove which of the following?
A) misrepresentation
B) motive of the fraudster
C) economic injury
D) involvement in the pyramid scheme
A distribution of an estate in which grandchildren and great-grandchildren of the
deceased inherit by representation of their parent is known as a(n) ________.
A) abatement
B) per stirpes distribution
C) per capita distribution
D) ademption
After the death of Horace, the remaining two joint tenants of the luxury restaurant
Rendezvous became the owners of Horace’s interest in the property automatically. This
feature of their concurrent ownership is called ________.
A) quiet title action
B) adverse possession
C) nonconforming use
D) right of survivorship
Stan and Stella had promised to marry each other and signed a written contract stating
their intentions. They planned to marry a year from the date of signing the contract.
After they signed the contract, Stan proposed to Stella and presented her with an
engagement ring. However, two months before the marriage, Stan called off the
engagement. Which of the following would be true if the state in which they reside
follows the fault rule?
A) The ring will remain with Stella.
B) The ring will be returned to Stan.
C) The ring will be auctioned and the proceeds will be shared between the couple.
D) The ring will be owned by whoever marries first after the engagement.
A sight draft that arises when a seller extends credit to a buyer with the sale of goods is
known as a ________.
A) check
B) time draft
C) trade acceptance
D) demand draft
________ is a form of bankruptcy in which the debtor’s nonexempt property is sold for
cash, the cash is distributed to the creditors, and any unpaid debts are discharged.
A) Abusive filing
B) Dissolution of debt
C) Liquidation
D) Reorganization
Jamie is a lawyer who runs her own law firm practicing in the area of real estate law.
Raymond, a real estate developer, hires Jamie to represent him in the purchase of land.
Jamie is a(n) ________.
A) principal
B) agent
C) third-party
D) independent contractor
Which of the following must be included in the registration statement?
A) judgments passed by the SEC on the merits of the securities offered
B) how proceeds from the offering will be used
C) date of termination of the initial public offering
D) maximum number of times a share can be sold post issue
________ is defined as the substantial likelihood that a person either committed or is
about to commit a crime.
A) Reasonable suspicion
B) Reasonable doubt
C) Probable cause
D) Preponderance of evidence