An insurance broker is an agent of an insurer.
Foreign corporations can elect to be taxed as an S corporation.
An LLLP is a foreign limited liability limited partnership in the state in which it is
formed.
The outbreak of a war between the principal’s country and the agent’s country may be
grounds for terminating an agency.
An environmental impact statement (EIS) must contain a cost-benefit analysis of the
proposed action and alternative actions.
For an order paper to be negotiated there must be delivery and indorsement.
An express warranty can only be limited if the warranty disclaimer and the warranty
can be reasonably construed with each other.
Unpaid debts that the debtor incurred prior to the date of the order for relief are
discharged under Chapter 7.
Under the theory of ethical relativism, fairness is considered the essence of justice.
An assignee is obligated to perform the duties that the assignor had under the lease.
Employees who choose not to return to work after joining the strikers for a period of
time are known as crossover workers.
In debt securities, the corporation is the debtor and the holder is the creditor.
The federal court must apply federal laws in deciding diversity of citizenship cases.
Alan wins a $50,000 judgment against Henderson. But Henderson refuses to pay the
amount of the judgment to Alan. Alan obtains a postjudgment writ from the court
directing the sheriff to seize Henderson’s automobile and other property and have them
publicly auctioned off to satisfy the judgment. Which of the following writs did Alan
use?
A) writ of attachment
B) writ of garnishment
C) writ of execution
D) writ of exigent
Intrepid Creations is a product design institute which provides educational courses in
package design. It manages to acquire the right to use simulation software from Marco
Software for a payment of $2,000 a year. There is no clause of expiration on this
arrangement and the right to access the software is renewed annually. Which of the
following kinds of business arrangements does the aforementioned scenario indicate?
A) a licensing arrangement
B) a general partnership
C) a limited partnership
D) a franchise
Mary buys a new toaster for $500. The toaster’s label bears a disclaimer stating that the
manufacturer is not liable for consequential damages. One day, while Mary is using the
toaster, it starts emitting sparks and the electrical wiring of the kitchen gets damaged.
The electrician tells Mary that the toaster malfunctioned and that the cost of repairs
would be $2,000. What monetary damages can Mary recover from the manufacturer of
the toaster?
A) $500
B) $2,500
C) $2,000
D) damages cannot be recovered
What legal course of action is available to a corporation if its employees go on strike
without any notice?
A) warn the employees about closing the plant if they strike
B) dissolve the union in the company
C) dismiss the striking employees
D) solicit on behalf of a second union in the company
An arrangement where an owner of real property borrows money from a lender and
pledges the real property as collateral to secure the repayment of the loan is known as
a(n) ________.
A) consignment
B) foreclosure
C) mortgage
D) assignment
Which of the following is true of a business operating as a sole proprietorship?
A) It is not considered a separate legal entity from the owner.
B) It cannot be sold when the owner decides to do so.
C) It requires governmental approval when being transferred.
D) It has access to unrestricted capital by means of investments.
An implied warranty of ________ is a warranty that arises where a seller or lessor
warrants that the goods will meet the buyer’s or lessee’s expressed needs.
A) merchantability
B) fitness for a particular purpose
C) fitness for human consumption
D) good title
An ordinary partnership is also known as a ________.
A) sole proprietorship
B) general partnership
C) limited partnership
D) limited liability company
When the states ratified the Constitution, they delegated ________ powers to the
federal government.
A) enumerated
B) reserved
C) police
D) statutory
Which of the following legislations provides for both civil and criminal penalties,
including up to recovering treble damages, for securities fraud by accountants?
A) Private Securities Litigation Reform Act of 1995
B) Section 32(a) of the Securities Exchange Act of 1934
C) Tax Reform Act of 1976
D) Racketeer Influenced and Corrupt Organizations Act
Which of the following terms refers to a nonbreaching party’s legal duty to avoid or
reduce damages caused by a breach of contract?
A) tender of performance
B) mitigation of damages
C) liquidation of damages
D) disclaimer of consequential damages
________ is an equitable doctrine that permits enforcement of oral contracts that should
have been in writing.
A) Promissory estoppel
B) Merger clause
C) Main purpose exception
D) Leading object exception
The national ambient air quality standards (NAAQS) ________.
A) divide pollutants into five groups based on the risks they pose to humans
B) represent a set of standards for certain pollutants that have two levels
C) apply to all sources of pollution
D) are administered exclusively by the federal government
What is direct examination?
A) inspection and verification of all documents related to a trial by the judge
B) inspection and verification of all documents related to a trial by the jurors
C) witnesses being questioned by the plaintiff’s attorney
D) prospective jurors being questioned by the judge or lawyers of each party
How is a copyright different from a patent?
A) Copyrights are applied for inventions, while a patent is applied for tangible writings.
B) Patents have a limited term period, while copyrights carry lifelong terms.
C) Patents fall under the federal law, while copyrights fall under state law.
D) Copyrights should be novel and useful, while patents need not be so.
How is a cashier’s check different from an ordinary check?
A) Cashier’s checks can be postdated, but ordinary checks cannot be postdated.
B) Unlike ordinary checks, cashier’s checks do not require the purchaser to hold a
checking account at that bank.
C) Unlike ordinary checks, cashier’s checks are cancellable negotiable instruments upon
issue.
D) Cashier’s checks are three-party checks, while ordinary checks involve only two
parties.
Which of the following is true of employment discrimination as defined under Title VII
of the Civil Rights Act of 1964?
A) Disparate-treatment discrimination can be proven through statistical data about an
employer’s employment practices.
B) Disparate-impact discrimination occurs when an employer adopts a work rule that is
neutral on its face but is shown to cause an adverse impact on a protected class.
C) Disparate-treatment discriminationoccurs when an employer discriminates against
an individual of a protected class.
D) Sexual harassment and refusal to hire physically challenged employees are
illustrations of disparate-impact discrimination.