A legal right that arises out of a breach of contract may be assigned.
A private plaintiff can bring an action of employment discrimination under Section
1981 of the Civil Rights Act of 1866 without going through the procedural requirements
of Title VII.
For a gift to be considered valid, the donor must be shown to have a donative intent.
All administrative proceedings are presided by a select jury of laymen, who then
question the functionality of the new, proposed law.
The theory of maximizing profits holds that the interests of constituencies other than the
business itself are not important in and of themselves.
A decree of divorce is only granted after division of property and other settlements are
finalized.
A director who personally competes with the corporation he or she is employed in is
said to have breached the duty of obedience.
An incidental beneficiary has no rights to enforce or sue under other people’s contracts.
The doctrine of strict liability applies to sellers and lessors of products who are engaged
in the business of selling and leasing products.
Restraints that are not characterized as per se violations are not further examined using
the rule of reason.
Decisions of highest state courts are final unless a question of law is involved that is
appealable to the U.S. Supreme Court.
The change in the relationship of partners in a partnership caused by any partner
ceasing to be associated in the carrying on of the business is known as ________.
A) action for an accounting
B) indemnification
C) winding up
D) dissolution
Which of the following is true of the Health Care Reform Act?
A) Excise taxes for pharmaceuticals are reduced.
B) Employers of big corporations are given subsidies for providing health insurance to
their employees.
C) All employers are mandatorily required to provide health insurance coverage to their
employees.
D) Persons who do not obtain coverage will be required to pay a tax penalty to the
federal government.
A certain organization’s employees want a union to represent them, a request that has
been approved by the employer. All the employees live in the employees’ quarters in the
building adjacent to the place of work. In order for a union to be established,
solicitation must be carried out by these employees. Which of the following is true of
this situation?
A) Union solicitation must be carried out only during work hours.
B) Union solicitation must be carried out only at work premises, under the employer’s
supervision.
C) Union solicitation cannot be carried out by the managerial department of the
corporation.
D) Union solicitation activities are prohibited during employees’ personal time.
John was on his way home when an assailant stopped his car and threatened to
physically harm him if he ever saw him drive on that street again. John can sue the
assailant to recover damages for ________.
A) assault
B) battery
C) libel
D) disparagement
Under the Uniform Commercial Code’s ________ requirement, a person cannot qualify
as a holder in due course (HDC) if he or she has noticed that the instrument is overdue.
A) no evidence of forgery, alteration, or irregularity
B) taking in good faith
C) taking without notice of defect
D) taking for value
Which of the following opinions would an auditor make for a company that, he or she
feels, has materially misstated certain items on its financial statements?
A) an unqualified opinion
B) an adverse opinion
C) a qualified opinion
D) a disclaimer of opinion
If they filed for divorce in a state that recognizes community property, what would be
the separate property owned by Jonas at the end of their marriage?
A) $1 million of real estate and $1.5 million in securities
B) $500,000 of real estate and $2.5 million in securities
C) $1.5 million of real estate and $3 million in securities
D) $2.5 million of real estate and $2 million securities
________ is a situation in which one person takes advantage of another person’s mental,
emotional, or physical weakness and unduly persuades that person to enter into a
contract.
A) Duress
B) Undue influence
C) Fraud
D) Scienter
A lawsuit a shareholder brings against an offending party on behalf of a corporation
when the corporation itself fails to bring the lawsuit is known as a ________.
A) notice of the shareholder
B) derivative action
C) class action suit
D) contract action
A(n) ________ is a sales contract that requires the seller to deliver goods to the buyer’s
place of business or another specified location.
A) consignment contract
B) option contract
C) shipment contract
D) destination contract
A(n) ________ statute permits a finder of mislaid or lost property to clear title to the
property if certain prescribed legal formalities are met.
A) estate
B) estray
C) lading
D) recording
A ________ is a special type of limited partnership that has both general partners and
limited partners, where both the general and limited partners have limited liability and
are not personally liable for its debts.
A) limited liability limited partnership
B) master limited partnership
C) sole proprietorship
D) foreign limited partnership
Which of the following is a characteristic of a presentment warranty on an instrument
presented for payment?
A) The transferor has no knowledge of any insolvency.
B) The transferor has good title to the instrument.
C) No defenses of any party are good against the transferor.
D) The instrument has not been materially altered.
Merrick and Stanley Corporation has 28,000 outstanding shares. During a proposal for
a merger, the shareholders decide to increase the quorum of the vote of shareholders to
75 percent using the supramajority voting rule. How many minimum affirmative votes
are needed to pass the supramajority voting requirement?
A) 14,001
B) 21,280
C) 21,000
D) 28,000
A ________ mark is a mark that confirms that a seller of a product or service has met
certain geographical location requirements, quality standards, material standards, or
mode of manufacturing standards established by the owner of the mark.
A) guarantee
B) certification
C) service
D) collective membership
Which of the following is an intentional tort?
A) negligence
B) innocent misrepresentation
C) fraud
D) dual-purpose mission
Which of the following is true of a destination contract containing a “no-arrival,
no-sale” clause?
A) The seller is required to bear the expense and risk during transportation.
B) The seller is required to replace any goods lost in transit.
C) The buyer does not have to pay for destroyed goods.
D) The risk of loss passes once the shipping has been arranged.
Under which of the following conditions does a promissory estoppel provide for the
enforceability of an oral contract?
A) when the promise induces action or forbearance of action by another
B) when the reliance on the oral promise was unforeseeable
C) when enforcing the oral promise provides for faster resolution of the case
D) when the oral promise provides for reduced damages to the defendant
Which of the following actions would make Sarah liable for battery?
A) She publishes an article asking the current U.S. President to quit because she thinks
he is not doing a good job.
B) She extends her backyard fence, encroaching on two feet of her neighbor’s land.
C) She smuggles marijuana into the country.
D) She slaps her ex-husband because he denied her alimony.