The “fair use” defense against copyright infringement:
A. does not apply if the use enhances the value or marketability of the original work.
B. applies if there are substantial differences between the copyrighted work and the
derivative work.
C. applies only to creative works rather than informational works.
D. does not apply for commercial uses that are presumptively fair.
Answer:
A note which contains the statement, “I owe you $500”:
A. constitutes an order to pay.
B. constitutes a promise to pay.
C. is not a negotiable instrument.
D. is a negotiable instrument.
Answer:
Which of the following statements is TRUE of the Environmental Protection Agency?
A. It was created in 1970, to consolidate the state government’s environmental
responsibilities.
B. It aims only at pollution problems that can be seen, smelled, or tasted.
C. Much of the initial effort to address environmental problems involved command and
control regulation.
D. Over the decade of the 1970s, Congress passed comprehensive new legislation
covering only air and water pollution.
Answer:
Under condominium ownership, a purchaser takes title to his/her individual unit and
becomes a _____ with other unit owners in shared facilities.
A. joint tenant
B. tenant in common
C. tenant by the entirety
D. tenant in partnership
Answer:
Which of the following is TRUE for damages incurred by the seller when a buyer
repudiates a contract?
A. The buyer is not liable for the difference between the contract price and the market
price at which the goods are currently selling.
B. The only way the seller can recover damages is by reselling the goods.
C. The seller cannot recover any incidental damages.
D. The seller can recover lost profit and overheads along with incidental expenses.
Answer:
Mutual mistakes may arise:
A. only when parties unintentionally use terms in their contract that are ambiguous.
B. only when parties are mistaken about the subject matter of their agreement.
C. when parties intentionally use terms in their contracts that are ambiguous which
leads to mistaken notions regarding the subject matter of the agreement.
D. when there is unintentional usage of ambiguous terms in the agreement and when the
matter of the agreement is not properly understood by either party.
Answer:
The “dormant” Commerce Clause limits the authority of the states to interfere with the
flow of interstate commerce by:
A. limiting the states from furthering only state interests.
B. limiting a state’s ability to tax vendors.
C. prohibiting state legislation that unduly burdens intrastate commerce.
D. prohibiting state laws that openly discriminate against interstate commerce.
Answer:
One type of stock enables the shareholder to get his/her usual dividend. Then, after the
common shareholders receive their normal dividend, he/she is able to share in any
additional income with the common shareholders. This type of stock is ____.
A. cumulative preferred
B. noncumulative preferred
C. participating preferred
D. cumulative to the extent earned
Answer:
The use of lawyers by business managers to help them plan avoidance of business
emergencies and to help them comply with the rapidly growing mass of legal rules
imposed on business operations by government bodies is called as:
A. common law.
B. preventive law.
C. criminal law.
D. substantive law.
Answer:
Which of the following statements is TRUE about the ultra vires doctrine?
A. It is the only stringent limitation on the enforceability of contracts entered into by
corporations.
B. It permits corporate directors to freely prevent enforcement of unattractive contracts.
C. It permits the state attorney general to prevent enforcement of corporate contracts
that extend beyond the corporation’s authorized powers.
D. It does not permit the corporation to bring a suit for damages to the corporation
against the officers of the corporation who have entered into an ultra vires contract.
Answer:
Identify the correct statement about abandonment.
A. When a tenant abandons the leased property, the landlady has a duty to accept the
surrender under any circumstances.
B. If the landlady can’t find a new tenant, she cannot sue the old tenant for the rent due
for the remainder of the term.
C. If a tenant abandons the leased property, he is making an offer to sublease the
leasehold.
D. The landlady can mitigate damages caused by the abandonment by attempting to
rent the leased property to a new tenant.
Answer:
A person may act as a dual agent:
A. on his own accord.
B. after partial disclosure of terms to either principal.
C. with the consent of any one principal.
D. with the consent of both principals on being fully informed about it.
Answer:
Which of the following is TRUE of a land contract?
A. The seller agrees to convey the title when the full price is paid.
B. The trustee holds legal title to the property put up as security.
C. If a buyer defaults, the seller does not have the right to declare a forfeiture.
D. The title to property is conveyed if partial payment has been made.
Answer:
“Mens rea” means:
A. misdemeanors.
B. public wrongs.
C. insanity.
D. criminal intent.
Answer:
Mayor Magnus wants to recruit a Harvard economist, Milton, to be the Chief
Developer for the Small Town’s economic development division. The legal cap on the
job of Chief Developer is $60,000. Mayor Magnus offers Milton $100,000. The
contract is:
A. unconscionable based on unequal bargaining power.
B. injurious to public service.
C. exculpatory.
D. enforceable.
Answer:
Who is considered the owner of the corporation?
A. The directors
B. The shareholders
C. The chairman of the board
D. The chief executive officer
Answer:
A mandatory injunction:
A. occurs when a court orders a party to refrain from doing a certain act.
B. occurs when a court orders a party to do a certain act.
C. is ordered to induce irreparable injury.
D. is used to compel personal service.
Answer:
If an offer does not state a time for acceptance, it is:
A. valid for a reasonable time, which depends on the circumstances of the offer.
B. valid for 10 days from the day the offer is made.
C. valid for 20 days from the day the offer is received by the offeree.
D. valid until the offeree accepts it.
Answer:
Jones & Co. is a business concern in the process of being set up. Its promoters have
entered into preincorporation contracts. After the corporation comes into existence, the
promoters can be released from liability through:
A. an agreement with the corporation wherein the corporation agrees that it will be
substituted for the promoter.
B. an agreement with the third party before adoption of the preincorporation agreement.
C. an agreement with the corporation and third party wherein all three agree that the
corporation will be substituted for the promoter.
D. the preincorporation contract with the third party.
Answer:
Which of the following statements about the Equal Pay Act is TRUE?
A. The Equal Pay Act was passed as an amendment to the ERISA, prohibiting sex
discrimination in pay.
B. It requires that both sexes have equal pay for jobs that require equal responsibility
and which are performed under similar working conditions.
C. Equal rates of pay are permitted under seniority and merit systems as well as other
incentive systems.
D. It is designed to prevent problems such as underfunding and careless management of
funds.
Answer:
Once a donee or creditor beneficiary has accepted the contract, the original parties:
A. can cancel the contract if the original contract gives them the right to.
B. can cancel the contract without the third party’s consent.
C. can never cancel the contract.
D. can cancel only monetary contracts.
Answer: