The federal government is primarily responsible for the implementation of the Clear
Water Act in all states.
A manufacturer of matches is not strictly liable if an arsonist uses its matches to burn
down a building.
Administrative agencies do not have to comply with the Due Process Clause of the U.S.
Constitution when adjudicating cases of violation.
Identification of the subject matter and quantity would be an implied term.
Recording a deed gives constructive notice to the world of the owner’s interest in the
property.
A reasonable person test is a subjective test that applies to contracts involving personal
taste and comfort.
Regions that do not meet air quality standards are designated as air quality control
regions.
If the bailee refuses to honor a document of title or other direction to deliver, the risk of
loss remains on the buyer.
________, a pretrial litigation process, serves several functions, including preventing
surprises, allowing parties to prepare thoroughly for trial, preserving evidence, saving
court time, and promoting the settlement of cases.
A) Pretrial motions
B) Discovery
C) Pleadings
D) Settlement conference
Which of the following is true of a debtor’s bankruptcy estate?
A) Only intangible personal property constitutes the bankruptcy estate.
B) No property solely owned by the debtor is exempted from the bankruptcy estate.
C) Creditors are allowed to claim exempt property.
D) Government benefits and compensations are exempted from the bankruptcy estate.
The ________ states that if the main purpose of a transaction and an oral collateral
contract is to provide pecuniary benefit to the guarantor, the collateral contract does not
have to be in writing to be enforced.
A) merger clause
B) leading object exception
C) collateral contract rule
D) parol evidence rule
Why does an illusory contract lack consideration?
A) because the consideration promised is unlawful and therefore void
B) because the person promises to perform an act or do something he or she is already
under an obligation to do
C) because one or both parties can choose not to perform their contractual obligations
D) because the compensation paid is for work done in the past
________ occurs when one contracting party informs the other that he or she will not
perform his or her contractual duties when due.
A) Restitution
B) Rescission
C) Anticipatory repudiation
D) Material breach
________ refers to an official notice that the Supreme Court will review a case.
A) Writ of certiorari
B) Stare decisis
C) En banc review
D) Sua sponte
Under the Sarbanes-Oxley Act, in order to audit a public company, ________.
A) only public accountants must constitute the audit committee
B) a public accounting firm must register with the Public Company Accounting
Oversight Board (PCAOB)
C) all public accounting firms must assign an accountant who works closely with one
client over a long duration of time
D) the law of accountant-client privilege must be accepted by the state legislative
mechanism
What does the English rule for successive assignments provide?
A) The first assignment in time prevails, regardless of notice.
B) The first assignment in time prevails, pending notice.
C) The first assignee to give notice to the obligor prevails.
D) The first assignee who receives a tangible token prevails.
Property owned by a spouse prior to marriage as well as inheritances and gifts received
by a spouse during the marriage are referred to as ________.
A) separate property
B) marital property
C) community property
D) reciprocal property
Which of the following is true of a certificate of deposit?
A) It is a promise to pay.
B) It is used to extend credit to a buyer.
C) It is a three-party instrument.
D) It can be made to pay on demand.
Roger, a lawyer, borrowed money from Jax to start a business. He gave a promissory
note to Jax promising to pay the money back anytime within the next five years. But in
order to accept the note, Jax demanded a security deposit. Roger gave the gold that he
owned as security. Roger in turn demanded that a specific clause be added to the
promissory note to allow faster repayment of the loan in case he inherited money within
the next five years. But even after five years, Roger was unable to complete payment.
He made a new promissory note promising to finish payment within the next year, and
promised to provide free legal service to Jax for the next two years. What kind of
promissory note did Jax secure from Roger for the original amount?
A) a collateral note
B) a mortgage note
C) an installment note
D) a time note