A(n) _____ lien arises when someone contributes materials and/or services to real
estate, usually a building, and is not paid.
A. general
B. chattel
C. surety
D. mechanic’s
E. assayer’s
Ajax Pvt. Ltd. made a promise to Garrett offering a job with an annual salary of
$150,000, and at least two years employment. Since Garrett would have to move to
New York for the new job, Ajax Pvt. Ltd. also offered to reimburse all moving
expenses. Based on this promise, Garrett resigned from his $100,000 annual salary job
at Dab Pvt. Ltd., San Francisco. However, once Garrett moved to New York, his
employment with Ajax was terminated because the company found a candidate who
was willing to work for a lesser salary. Which of the following is true of this situation?
A. Garrett cannot sue Ajax since the promise was oral.
B. Garrett can sue Ajax under promissory estoppel.
C. Garrett cannot file a lawsuit since a promise of employment is always subject to
market conditions.
D. Garrett can sue Ajax, but only for the moving expenses that Garrett can prove he
incurred.
E. Garrett cannot sue Ajax since the reasons for termination will be accepted in court as
legal detriment.
An airline has an opening for a pilot for its fleet of jumbo jets. It stipulates that the
candidates applying for the job must be at least five feet ten inches tall. The airline
states that the aircraft can be safely and efficiently operated only by persons who can
easily reach all of the controls in the cockpit. Passenger safety is the prime concern of
the airline, and pilots must be a certain height to operate the aircraft. In this case, height
is a valid requirement, and using it does not violate the employment discrimination
laws. This is an example of:
A. disparate treatment.
B. disparate impact.
C. reverse discrimination.
D. affirmative action.
E. business necessity defense.
False arrest is also called:
A. tresspass.
B. battery.
C. invasion of privacy.
D. malicious prosecution.
E. assault.
If Landon, who is 80 years old, writes a trust that states that his property is to go to “my
great-great-great grandchild upon my death,” and at the time of creating the trust his
only child is one year old:
A. the trust is valid, but the property must wait until the great-great-great grandchild is
born to be transferred.
B. the trust is invalid due to the rule against eventualities.
C. the trust is valid due to the rule of progression.
D. the trust is invalid due to the rule against perpetuities.
E. the trust is valid, but the property must wait until Landon’s child dies to be
transferred.
Which of the following is true about a general partnership?
A. It is dissolved any time there is a change in partners.
B. It can be transferred to new owners without affecting the original agreement.
C. It has no liability.
D. It is taxed as an entity.
E. It requires permission from each state in which it does business during formation.
A factory’s failure to use pollution control equipment may be evidence of its failure to
exercise _____ resulting in evidence of negligence.
A. best practices
B. prudence
C. standard of care
D. reasonable care
E. good faith
Tombstone ads refer to:
A. solicitations made during the waiting period.
B. notices filed during the posteffective period announcing that the sale of securities has
ended.
C. announcements issued by the SEC warning potential investors that a company is
being investigated for fraud.
D. feedback from the SEC requiring additional information or a clarification of supplied
information needed to complete a filed registration statement.
E. the statement that is required to be filled with the SEC.
Quasi-strict scrutiny tests are applied to cases involving classifications based on _____.
A. height
B. legitimacy
C. marriage
D. age
E. weight
The Truth-in-Lending Act gives consumers the right to rescind certain transactions for a
period of:
A. seven business days from the date of the transaction or from the date that notice of
the right to rescind is given, whichever comes first.
B. three business days from the date of the transaction or from the date that notice of
the right to rescind is given, whichever comes first.
C. three business days from the date of the transaction or from the date that notice of
the right to rescind is given, whichever is later.
D. seven business days from the date of the transaction or from the date that notice of
the right to rescind is given, whichever is later.
E. five business days from the date of the transaction or from the date that notice of the
right to rescind is given, whichever is later.
After the complaint is filed, the first thing the defendant must file is the:
A. writ.
B. notice of appeal.
C. request for discovery.
D. answer.
E. deposition.
Which of the following is true about federalism?
A. State government may limit the federal government’s exercise of powers.
B. Federalism refers to the common powers of the federal government and governments
at the state and local levels.
C. Federalism recognizes that all levels of government have interrelated roles.
D. Federalism emphasizes that states do not have sovereignty.
E. The federal government recognizes that it was created by the states.
Under the UCC, the rules of consideration also do not apply to _____.
A. real estate sales
B. service contracts
C. firm offers
D. employment contracts
E. an option
A certificate of interest or participation in any profit-sharing agreement is an example of
a(n):
A. stock.
B. bond.
C. treasury stock.
D. security.
E. debenture.
Which of the following regulates the consumer credit reporting industry?
A. The Equal Credit Opportunity Act
B. The Fair Credit Reporting Act
C. The Truth-in-Lending Act
D. The Fair Debt Collection Practices Act
E. The Uniform Consumer Leases Act
Terrell is suing Chad. After he receives the answer, Terrell believes that he should win
based solely on his original complaint and Chad’s answer. Terrell should file a:
A. motion for a directed verdict.
B. motion to dismiss for failure to state a cause of action.
C. motion in limine.
D. motion for a summary judgment.
E. motion for a judgment on the pleadings.
Which of the following involves an intentional misstatement of a material fact that
induces one to rely justifiably to his or her injury?
A. Duress
B. Misrepresentation
C. Undue influence
D. Mutual mistake
E. Fraud
Which of the following is an exception to the parol evidence rule?
A. Evidence of oral agreement that merely explains the meaning of written terms
without changing them.
B. Evidence of oral agreements made at the time of the written contract.
C. Evidence of oral agreements made before signing a written contract.
D. Evidence of oral modifications arising after the parties have made the written
contract.
E. Evidence of oral agreements that changes the meaning of written terms.
Which of the following is true about managerial control in a general partnership?
A. The agreement has to provide for each partner to have equal voice in the firm’s
affairs.
B. Control may be divided for the firm to include controlling partners and minority
partners.
C. The differences in the degree of control do not affect the business’s success.
D. The possibility of deadlock is higher when there are more number of partners and an
odd number of them.
E. Language governing issues of managerial control need to be made orally clear to all
partners.
Since the primary goal of business is to make a profit, this orientation mainly involves:
A. deontology.
B. formalism.
C. consequentialism.
D. absence of ethics.
E. Darwinism. t.
When a legislature passes a law that unnecessarily or too generally restricts freedom of
speech, the court may declare the law unconstitutional based on the _____.
A. overreaching doctrine
B. overstretching doctrine
C. overextension doctrine
D. overbreadth doctrine
E. doctrine of nullification
A _____ deed makes no guarantees other than that the grantor surrenders all claim
against the land.
A. simple warranty
B. trust
C. quitclaim
D. special warranty
E. fiduciary
Attempts by manufacturers to control retail prices are known as _____ price fixing.
A. transfer
B. vertical
C. lateral
D. congestion
E. rational
The Truth-in-Lending Simplification Act:
A. permits debt collectors to contact third parties but the debt collector may not state
that the consumer owes a debt.
B. redefines the necessary items to be included in a finance statement.
C. requires the First Bank of the United States to issue model disclosure forms.
D. requires the imposition of fines for technical breaches of the Act.
E. eliminates statutory penalties for purely technical violations of the Act.
A copyright protects:
A. inventors.
B. authors.
C. merchants.
D. builders.
E. retailers.
Which of the following is true according to the Uniform Electronic Transactions Act?
A. A principal can be bound by a contract created by a cyber agent, only if the principal
is aware of the contract.
B. A principal can be bound by a contract created by a cyber agent, even if the principal
is unaware of the contract.
C. A principal can be bound by a contract created by a cyber agent, only if the principal
is aware of the contract and manifests assent to the contract.
D. A principal can be bound by a contract created by a cyber agent, even if the principal
is unaware of the creation of a cyber agent.
E. A principal can be bound by a contract created by a cyber agent, only if the action of
one electronic agent is involved.
What does the term knowing’ refer to under the FCPA?
A. Conscious disregard and deliberate indifference.
B. Working with a country that is indexed for high corruption practices.
C. Stating in an official document that all parties involved are free from corrupt
practices.
D. Settlement of payments as per the contract.
E. Understanding of the antibribery provisions and the laws that prohibit corruption.
