All substantive rules are subject to judicial review.
The Sarbanes-Oxley Act contains provisions for prosecuting U.S. firms that bribe
foreign officials.
The owner of the premises where a property is mislaid is entitled to take possession of
the property against all except the rightful owner.
An implied-in-law contract is a contract in which agreement between parties has been
inferred from their conduct.
In a case of assumption of duties, the delegatee is not liable for nonperformance.
Joint venturers are permitted to create a corporation that operates the joint venture.
If a settlement is not reached after mediation, the divorce case goes to trial.
In a guaranty situation, the original contract is between the ________.
A) creditor and the guarantor
B) debtor and the creditor
C) debtor and the guarantor
D) creditor and the lessee
Stock that permits a corporation to buy back the preferred stock at some future date is
known as ________.
A) cumulative preferred stock
B) participating preferred stock
C) convertible preferred stock
D) redeemable preferred stock
Which of the following is true of ownership titles when confusion occurs?
A) Title to the goods can never be shared between the owners involved.
B) Title to goods commingled without permission goes to the innocent party.
C) Title to goods cannot be acquired by confusion.
D) Title to the goods can only be acquired if goods were commingled by accident.
A shipment that is offered to a buyer as a replacement for the original shipment when
the original shipment cannot be filled is referred to as a(n) ________.
A) consideration
B) accommodation
C) surrogate
D) open delivery
When is a tenant wrongfully evicted?
A) when the landlord breaches the tenant’s right to quiet enjoyment
B) when the landlord fails to maintain the leased premises properly
C) when the tenant violates a building code statute
D) when the tenant sublets the premise without permission of the landlord
Which of the following is true of the Magnuson-Moss Warranty Act?
A) It requires all warrantors to make express written warranties.
B) It obligates all warrantors to make disclaimer warranties for their products.
C) It authorizes warrantors to establish an informal dispute-resolution procedure.
D) Implied warranties are voidable under this Act.
What is physical duress?
A) physically damaging the contract documents
B) signing a contract without the knowledge that it represents fraudulent information
C) threatening to physically harm someone if he or she does not sign a contract
D) persuading a person to rescind a valid contract by misrepresenting the facts
Which of the following is true of the FDA’s role in the introduction of a new drug in the
market?
A) The FDA bases its approval of a new drug on the rule of caveat emptor.
B) The FDA limits itself to providing relevant suggestions to improve the drug.
C) The FDA possesses the power to implement a complete ban on a questionable drug.
D) The FDA prosecutes producers of questionable medicines directly through the
powers vested by the U.S. Department of Justice.
Which of the following indorsements can be negotiated just by delivery?
A) unqualified indorsement
B) special indorsement
C) special qualified indorsement
D) blank indorsement
A ________ is a patent that protects the functionality of a patent.
A) method patent
B) design patent
C) utility patent
D) process patent
If a company does not hire certain employees because of their accents, it has committed
________ discrimination.
A) genetic information
B) sex
C) color
D) national origin
The ________ states that a drawer or maker is liable on a forged or unauthorized
indorsement if the person signing as or on behalf of a drawer or maker intends the
named payee to have no interest in the instrument or when the person identified as the
payee is a fabricated person.
A) imposter rule
B) fictitious payee rule
C) fraud in the inception rule
D) fraud in the inducement rule
A(n) ________ is any computer system that has been established by a seller to accept
orders.
A) electronic agent
B) top-level extension
C) cybersquatter
D) licensor
________ include environmental laws, securities laws, and antitrust laws and provide
for criminal violations and penalties.
A) Regulatory statutes
B) Constitutions
C) Charters
D) Resolutions