General government regulation consists of laws that regulate the operation of the three
branches of the federal government.
A living trust is a document that states which lifesaving measures the signor does and
does not want.
The shareholders of the corporation have the absolute right to amend bylaws.
H-1B visa holders are allowed to bring their immediate family to the United States
under the H4 visa category.
A common law marriage requires a marriage license to be considered valid.
Ownership of real property can be transferred by gift.
In a jury trial, the judge is the trier of fact.
Once declared, a cash or property dividend cannot be revoked.
A private civil Racketeer Influenced and Corrupt Organizations Act (RICO) based on
securities fraud can only be brought once the defendant has been convicted for the
crime.
A promissory note is a two-party transaction.
A two-party secured transaction occurs when a seller sells goods to a buyer on credit
and retains a security interest in the goods.
An unqualified indorser has secondary liability on negotiable instruments.
Santo belongs to the Eliok tribe in an Indian reservation in southern Nevada. He wants
to open a casino in the reservation. However, the state authority denies the tribe
permission to open a casino in its own territory. Which of the following permits the
tribe to bring suit in federal court and force the state to comply?
A) Establishment Clause
B) Indian Gaming Regulatory Act
C) Dormant Commerce Clause
D) Indian Reorganization Act
________ advise the president.
A) Independent federal administrative agencies
B) State administrative agencies
C) Cabinet-level federal departments
D) Law enforcement agencies
A corporation is a(n) ________ corporation in the state in which it is incorporated.
A) offshore
B) domestic
C) alien
D) foreign
Perfection ________ is a situation where the creditor does not have to file a financing
statement or take possession of the goods to perfect a security interest.
A) by possession of collateral
B) by attachment
C) by claim
D) without statement
The ________ requires general partners to adhere to the provisions of the partnership
agreement and the decisions of the partnership.
A) duty to inform
B) duty of loyalty
C) duty of care
D) duty of obedience
Three of the largest petroleum refineries in the country have come to an agreement
about what price they would pay to purchase crude oil from sellers. This is an example
of ________.
A) sellers’ illegal per se price fixing
B) sellers’ illegal group boycott
C) buyers’ illegal per se price fixing
D) buyers’ illegal market sharing
Which of the following is a necessary condition for a contract to be considered valid?
A) It cannot be enforced by just one of the parties involved.
B) It is enforceable by at least one of the parties.
C) It can be voided by one of the parties.
D) It can be voided by both parties.
Which of the following qualifications renders a person a holder in due course of a
negotiable instrument?
A) he takes the negotiable instrument for value
B) he is subject to claims and defenses against the transferor
C) he is in possession of an instrument issued in his name
D) he is in possession of an instrument issued in another’s name
Which of the following is true of a franchise that was terminated-at-will by a
franchisor?
A) The franchisee can only recover damages.
B) The franchisor cannot be held liable for a termination-at-will.
C) The franchisee cannot apply for a franchisee again in the same field of business.
D) The franchisee can sue to recover damages and the franchise.
A(n) ________ contract is stated orally or in written words.
A) express
B) implied-in-law
C) implied-in-fact
D) quasi
Utilities Inc. decided to go public with an initial public offering. It sold securities, some
of which were bought by James Jefferson. Six months later, James sold the shares he
had purchased to Martha Graham and Mark Franco. Two years later, James bought back
these shares from Martha and Mark and made a profit out of both transactions. Who is
the issuer in this scenario?
A) Utilities Inc.
B) James Jefferson
C) Martha Graham
D) Mark Franco
The ________ branch of the federal government has the power to enforce the law.
A) judicial
B) legislative
C) executive
D) commissary
Which of the following is true of a contract where one of the parties is insane but not
adjudged insane?
A) The contract is voidable by the competent party.
B) The contract is only voidable by the insane person.
C) Only the court appointed legal guardian to the insane person can modify contracts.
D) The non-insane person must be placed in status quo if the insane person voids the
contract.
Blue Rorschach Inc. has an immediate requirement for 80 laptops and contracts with
Zenzo Electronics for 80 Dell laptops at $550 each. However, Zenzo Electronics
breaches the contract and fails to deliver the laptops. Blue Rorschach then immediately
contracts Dell Computers, buys 100 laptops at $600 per laptop and then sues Zenzo
Electronics for the breach of contract.
What is the amount of legal damages that Blue Rorschach can recover from Zenzo
because of the breach of contract?
A) $4,400
B) $5,000
C) $4,000
D) $44,000
Canton has listed his house for sale but cannot be present for the sale because he needs
to go out of town. He intends to give his brother Stratham the power of attorney to just
make decisions regarding the selling of his house while he is gone. What kind of power
of attorney should Canton execute?
A) a general power of attorney
B) a special power of attorney
C) a limited power of attorney
D) an implied power of attorney
Which of the following is true of a contract, the object of which has become unlawful
after the creation of the contract?
A) The contract is still legal as the object was legal at the time of creating that contract.
B) The contract is illegal even if the parties don’t complete the contractual agreement.
C) The parties of the contract will be discharged from that contract.
D) Both parties are still obligated to complete their contractual agreements.
The suspension of certain legal actions by creditors against a debtor or the debtor’s
property is known as a(n) ________.
A) discharge of debt
B) composition
C) automatic stay
D) order for relief
All parties are discharged from liability on a negotiable instrument when ________.
A) the instrument is presented for payment
B) the signature of the indorser is intentionally struck out
C) the instrument is accidentally destroyed or mutilated
D) a drawee in good faith pays an unaccepted instrument in full to the holder