The Sarbanes-Oxley Act makes it lawful for an accounting firm to simultaneously
provide audit and certain nonaudit services to a public company if the firm is registered.
If the object of an offer is made illegal prior to the acceptance of the offer, then the offer
terminates.
In the United States, each state has only a single district court.
Condition precedent refers to a condition that requires the occurrence of an event before
a party is obligated to perform a duty under a contract.
The Oil Pollution Act authorizes the U.S. government to clean up oil spills and spills of
other hazardous substances in ocean waters within 12 miles of the shore.
A derivative lawsuit is brought by the board of directors on behalf of the corporation.
The Family Smoking Prevention and Tobacco Control Act, which requires mandatory
warnings to be placed on cigarette packages, is enforced by the Health Care Reform
Act.
The Equal Protection Clause of the Fourteenth Amendment provides that a state cannot
promote one religion over other religions.
A life estate will be transferred to another party in the event of the holder’s death.
________ is a defense to Section 2(a) liability, which provides that a seller’s price
discrimination is not unlawful if the price differential is due to “differences in the cost
of manufacture, sale, or delivery” of the product.
A) Natural monopoly defense
B) Meeting the competition defense
C) Changing conditions defense
D) Cost justification defense
The term ________ refers to a secured creditor’s repossession of collateral on a debtor’s
default and selling, leasing, or otherwise disposing of it in a commercially reasonable
manner.
A) repossession
B) disposal of the goods
C) disposition of collateral
D) retention of collateral
Two brothers Sam and Jim were fighting over the division of their ancestral property.
After ten years of legal battle, a frustrated Sam contacted a powerful politician who
subjected Jim to extreme duress to make him sign a contract of assent in favor of Sam.
When Jim takes this contract to court, the contract will be declared ________.
A) enforceable
B) conditionally enforceable
C) voidable
D) unenforceable
Which of the following is true of FDA regulations for cosmetics?
A) It prohibits the manufacture, distribution, or sale of adulterated or misbranded
cosmetics.
B) All substances and preparations for cosmetic use are chemically proven to be free
from carcinogens before sale by the FDA.
C) Ordinary household soap is also evaluated in terms of its quality and safety as a
cosmetic good under the FDA.
D) New cosmetics are released in the market only if they have the “CRUELTY-FREE”
label on their package.
The area franchisee is also called a ________.
A) joint venturer
B) limited partner
C) subfranchisor
D) strategic partner
Which of the following statements is true of the collision insurance?
A) The coverage is in effect whether the insured’s car is moving or standing still.
B) The coverage is in effect even if another car was not involved in damaging the car
belonging to the insured.
C) The coverage also gives protection from car thefts, natural calamities, vandalism,
and riots.
D) The coverage gives insurance for damages caused by the insured on third parties.
Which of the following is true of sex discrimination?
A) It is not the same as gender discrimination.
B) Prohibition against sex discrimination applies only to women, not men.
C) Employment discrimination because of pregnancy is sex discrimination.
D) Sex discrimination is covered by Title II of Genetic Information Nondiscrimination
Act.
________ requires securities offered to the public through the use of the mails or any
facility of interstate commerce to be registered with the SEC by means of a registration
statement and an accompanying prospectus.
A) Section 24 of the Securities Act of 1933
B) Section 12 of the Securities Act of 1933
C) Section 5 of the Securities Act of 1933
D) SEC Rule 506
A ________ occurs when an agent makes an untrue statement that he or she knows is
not true.
A) partially disclosed agency
B) misrepresentation
C) respondeat superior
D) dual-purpose mission
A ________ is an exception in promissory notes, as it does not require the maker’s
unconditional and affirmative promise to pay.
A) trade acceptance
B) collateral note
C) remittance advice
D) certificate of deposit
The process of a deceased’s property being collected, debts and taxes being paid, and
the remainder of the estate being distributed is known as ________.
A) probate
B) abatement
C) ademption
D) adjournment
Which of the following is true of the ratification of a contract by a minor?
A) A minor can only ratify a contract after reaching the age of majority.
B) A minor cannot ratify a contract that falls under the necessaries of life doctrine.
C) A minor can ratify a contract during the period of minority if he or she so wishes.
D) A minor can ratify a contract under the guidance of a parent or legal guardian.
Lolek, who owes Stanislaw money, indorses a draft to him with the term “without
recourse.” The instrument later is dishonored. Which of the following types of indorsers
is Lolek?
A) a holder
B) an agent
C) an unqualified indorser
D) a qualified indorser
________ refer to the formal documents that must be filed at the secretary of state’s
office of the state of organization of an LLC (limited liability company) to form the
LLC.
A) Operating agreements
B) Certificates of interest
C) Articles of organization
D) Articles of amendment
Indonesia, Vietnam, Thailand, and the Philippines are members of the ________.
A) Organization of the Petroleum Exporting Countries
B) Association of Southeast Asian Nations
C) Dominican Republic-Central America Free Trade Agreement
D) North American Free Trade Agreement
Which of the following is true of a bearer paper?
A) both indorsement and delivery are required for it to be negotiable
B) only indorsement is necessary for it to be negotiable
C) only delivery is necessary for it to be negotiable
D) a payee must be specified in the paper