In terms of the steps in the incorporation process, which of the following occurs after
the charter is issued?
A. Statutory agent is appointed.
B. Organizational meeting is held.
C. Filing fees is paid.
D. Promoters do preliminary work.
A _____ is a symbol, picture, image, name, device, color, or word that a business uses
to distinguish itself from its competitors.
A. patent
B. copyright
C. royalty
D. trademark
Which of the following is true of oral contracts for the sale of goods of $500 or more?
A. Oral contracts can occur between merchants and consumers for sale of good of $500
or more.
B. A written conformation is received and signed by one party, and sent to the other for
approval.
C. A written conformation is received by a party and to which it does not object to
within 10 days.
D. An oral objection is accepted to a written confirmation for the sales of goods for
$500.
Angela asserts that HIPAA allows her to have copies of the records that result from her
psychotherapy sessions with Xenon. Angela:
A. can look through the records along with Xenon.
B. must have Xenon’s permission.
C. must have Xenon’s permission and can only look through the records along with
Xenon.
D. can have personal copies of these records.
When a contract subject to CISG exceeds $500 it:
A. is enforceable without the need to be written.
B. must be written to be enforceable.
C. must be written and reviewed by attorneys for both sides.
D. must be written if the value of the contract exceeds ten percent of the net worth of a
party.
_____ is a court action that allows a person entitled to goods to recover them from
someone who has them wrongfully.
A. Adjustment
B. Writ of replevin
C. Specific performance
D. Cover the sale
Jane believes that the Large Union leaders are using union funds illegally, so she speaks
out against the leaders. Large Union expels Jane. Which of the following statements is
true?
A. Large Union may determine its membership.
B. Large Union has engaged in unfair labor practice.
C. Large Union has to contact the NLRB before expelling Jane.
D. Jane has to contact the NLRB before speaking out.
Under the ____, an electronic signature is defined as “an electronic sound, symbol, or
process attached to or logically associated with a record and executed or adopted by a
person with the intent to sign the record.”
A. E-Sign Act
B. UETA
C. UCC
D. CSIG
Under the provisions of which of the following can an employee who has served in the
armed forces and successfully completed his/her tour of duty, be reinstated upon
returning to work in his/her previous position on the job?
A. USERA
B. OWBPA
C. ADA
D. WARN
When auditors conclude that the financial records of the company are an accurate
reflection of the company’s financial status, they will issue a(n) ____.
A. unqualified opinion
B. qualified opinion
C. adverse opinion
D. disclaimer
Matrix Corporation, manufacturers of computers, agrees in advance to purchase from
Chipmaster, Inc., all the computer chips that Matrix needs for the next year at current
average market prices. Matrix later does not purchase any computer chips that year. Can
Chipmaster enforce the agreement made with it?
A. Yes, this is a requirement contract.
B. No, the price is not sufficiently defined.
C. No, the agreement to purchase is illusory.
D. Yes, this is an output contract.
Joe, an outspoken union advocate working in the shipping department at Frontline Co.
for the past 10 years, is transferred to clean out the oil pit. Joe is also paid less for this
job. Joe has several allergic reactions to the oil and quits the company due to health
reasons. Frontline Co. has:
A. exercised lawful management rights.
B. made a discriminatory decision in violation of the Civil Rights Act.
C. established a closed shop.
D. engaged in constructive discharge.
The International Court of Justice:
A. is made up of nine judges.
B. allows all nations to initiate a case before it.
C. allows nations that are not member states to have their cases heard before it.
D. can render opinions only when faced with an actual case.
A blank indorsement should be used:
A. only for the purpose of deposit or collection.
B. to impose warranty liability on the maker.
C. to reserve more space for other indorsements.
D. only in limited situations.
A proposal made by Braxton, to his friend Mike, indicating willingness to enter a
contract to buy Mike’s old car for $4000, fulfills which element of the formalist theory
of contract law?
A. Capacity
B. Consideration
C. Mutual assent
D. Legality
Dai executes a will and provides copies to all her children. Later she prepares a
different will and destroys the first original will but not the copies. Has the original will
been canceled?
A. No, since the copies still exist.
B. Yes, since Dai destroyed the original.
C. No, since delivering the copies prevents Dai from later changing her will.
D. Yes, since the last will is always the one probated.
Claus tells CPA Vernon that he needs an audit to borrow money from Big Bank. Claus
pays Vernon and Claus takes Vernon’s audit to Big Bank who makes the loan. When
Claus defaults on the loan, Big discovers numerous liabilities that the audit did not
reveal. Can Big Bank sue Vernon for negligence?
A. Yes, because Vernon breached the trust that Claus had placed in him.
B. No, because Big and Vernon did not have a contract.
C. Yes, because Big was an actually named third party.
D. No, because Vernon does not guarantee the collection of Big’s loans.
For an employee to succeed in a wrongful discharge lawsuit grounded on the public
policy tort exception to employment-at-will, he/she should prove ____, which requires
that the public will be endangered if the court does not dissuade the type of firing
involved in the case.
A. causation
B. jeopardy
C. clarity
D. absence of justification
Which of the following statements holds true for judges sitting on the national science
court?
A. They are controlled and regulated by the U.S Senate.
B. They are appointed by the Chief Technology Officer.
C. They are expected to have a scientific background.
D. They are required to be the former members of the National Institute of Health.
Kaycee obtains fire insurance on an empty warehouse. Later Kaycee manufactures and
stores fireworks in the building. A lightning strike in a thunderstorm explodes the
fireworks and destroys the building. The fire insurance policy is:
A. valid since the building was empty when the policy was obtained.
B. void since a material change in risk occurred.
C. voidable if the lightning was not foreseeable.
D. valid since there are negligible liabilities which applies to storing fireworks.
Spice gives her four-year-old car to Homeless Helpers Charity. Spice:
A. need not provide an odometer statement.
B. must provide an odometer statement.
C. need not provide an odometer statement since the car is not over 15 years old.
D. must set the odometer to zero before resale.
Green Grocer Wholesale Inc. received an $800 check from Bob for a grocery purchase.
The check was from Forest Enterprises to Ana and had been indorsed to Bob who in
turn indorsed the check to Green. The clerk at Green failed to carefully examine the
check, not noticing that the number 5 had been changed to an 8. Green Grocer has:
A. not taken the instrument in good faith.
B. taken the instrument in good faith.
C. not taken the instrument in good faith to $500.
D. taken the instrument in good faith to $300.
When a consideration is so ridiculously inadequate that it shocks the court’s conscience,
it is considered:
A. unconscionable.
B. forbearance.
C. illusory.
D. detrimental.
If Jennifer, a landowner, wants Smith, a neighbor, to stop polluting a stream that flows
into Jennifer’s land, Jennifer should request a court to grant:
A. noneconomic compensatory damages.
B. economic compensatory damages.
C. an injunction.
D. an appeal bond. An injunction is a court order preventing someone from performing
a particular act. If a tort involves some permanent fixture that harms the interests of the
injured party, the court may order the wrongdoer to take positive steps to alleviate the
problem.
Universal life insurance allows the policy owner to modify:
A. face value of the policy and the premiums.
B. face value of the policy but not the premiums.
C. premiums but not the face value of the policy.
D. face value of the policy and obtain refunds of premiums already paid.
Jackson Motors tells Sue, a consumer, that Bliss Automobiles are made with metal
bodies when they are in fact made of fiberglass. This would be considered a(n):
A. fraudulent misrepresentation.
B. harmless error.
C. bait-and-switch scheme.
D. act of dunning.
Ching keeps a pet snake in her apartment. While Ching is hosting a party at her
apartment, the snake escapes from its cage and bites a guest, seriously injuring the
guest. The guest knew before attending the party that Ching has a pet snake in her
apartment. If the guest sues Ching for the injury resulting from the cobra bite, Ching:
A. will be strictly liable.
B. may defend based on assumption of risk.
C. is liable only if she intentionally released the snake from its cage.
D. has no liability since the incident was unforeseen by her.
Which of the following is true of using the defense of failure of consideration by a
maker or drawer of an instrument?
A. It can be used when the instrument is negotiated to a holder in due course.
B. It can be used when no consideration exists in the underlying contract for which the
instrument was issued.
C. It can be used when one of the parties breach the contract by not furnishing the
agreed consideration.
D. It can be used if a party, induced by a fraudulent statement to enter a contract, is the
holder of a negotiable instrument issued as part of the transaction.
Nongovernmental international organizations that are completely dependent upon their
member nations and would be unable to do anything without their support are referred
to as _____ NIOs.
A. entity level
B. semi-autonomous
C. aggregate
D. trans-national
_____ offers protection alone, and is the least expensive kind of life insurance.
A. Straight life insurance
B. Universal life insurance
C. Limited-payment life insurance
D. Term insurance
Kay, an 80% shareholder of Big Corp., dies leaving her stock to her nephew, Carl. Big
Corp. will be:
A. unaffected.
B. reorganized.
C. dissolved and then reconstituted.
D. dissolved.
In a tender of payment:
A. a buyer offers to turn the money over to the seller.
B. a buyer shows a seller his or her legal tender.
C. the seller puts conforming goods at the buyer’s disposition.
D. the seller provides storage facilities for goods to the buyer.
For most business decisions, the quorum, or minimum number of directors necessary to
conduct business, is usually:
A. three-quarters of the total number of directors.
B. two-thirds of the total number of directors.
C. half the number of total directors.
D. one more than half of the total number of directors.
An informal contract is also known as a(n):
A. void contract.
B. quasi-contract.
C. implied-in-fact contract.
D. simple contract.
