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Value has been given by the holder if he or she acquires a security interest in or lien on
an instrument.
The length of time the parties live together is sufficient to establish a common law
marriage.
The main purpose exception to the Statute of Frauds allows oral collateral contracts to
be enforced if there is a monetary benefit to the guarantor.
If one of the parties of a contract has the option to void his or her contractual
obligations, the contract is considered voidable.
The termination-at-will clause allows franchisees to sue a franchisor in case of an unjust
termination of franchise.
The Dodd-Frank Wall Street Reform and Consumer Protection Act grants powers to the
Federal Reserve to monitor and regulate institutions it supervises, including bank
holding companies, savings bank holding companies, and affiliates of holding
companies.
Pursuant to per capita distribution, all the lineal descendants equally share the property
of the estate.
The seller's or lessor's general obligation is to transfer and deliver the goods to the
buyer or lessee.
Unilateral rescission of a contract constitutes a breach of that contract.
A suspect can assert his Fifth Amendment privilege even after he is given a grant of
immunity.
The theory of corporate citizenship contends that corporations owe a duty to promote
the same social goals as individual members of society.
Advertisements are considered to be invitations to make an offer.
Executive orders are issued only by the executive branch of the federal government.
Under the doctrine of community property, all property acquired during the marriage
using income earned during the marriage is considered marital property.
A(n) ________ provides for the reduction of a debtor's debts.
A) extension
B) liquidation
C) limitation
D) composition
Which of the following is true of mislaid property with regard to the person who finds
it?
A) The finder becomes the owner of the property.
B) The finder has the right to share it with the original owner.
C) The finder is not entitled to possess the property.
D) The finder is absolved of any responsibility of the mislaid property.
The Americans with Disabilities Act Amendments Act (ADAAA) is a federal statute
that makes it illegal for an employer to discriminate against job applicants and
employees based on genetic information.
Which of the following is true of creating a sole proprietorship?
A) No government approval is required.
B) Federal taxation is levied upon sole proprietorship.
C) No licenses are required to do business within a city or state.
D) Special permission must be obtained to receive a sole proprietorship status.
Which of the following would be seen as a breach of the duty of loyalty by a corporate
officer?
A) straight voting
B) cumulative voting
C) piercing the corporate veil
D) self-dealing
Where there has been a breach of warranty, the buyer or lessee may sue the seller or
lessor to recover ________ damages.
A) compensatory
B) future
C) punitive
D) liquidated
The ________ is a federal statute, passed in 1975, that regulates written warranties on
consumer products.
A) Purchaser's Act
B) Industry Loss Warranty Act
C) Magnuson-Moss Warranty Act
D) Consumer Warranty Act
Instaworks Inc. wants to acquire IOK Corp. Instaworks makes a tender offer to the
shareholders of IOK to acquire their shares of IOK without the permission of the latter
corporation's board of directors. This is a ________ tender offer.
A) cogent
B) single-point
C) persuasive
D) hostile
A ________ is a defensive strategy built into the target corporation's articles of
incorporation, corporate bylaws, or contracts and leases that can be adopted to defeat a
tender offer.
A) greenmail agreement
B) Pac-Man tender offer
C) white knight merger
D) poison pill
If an employer reasonably anticipates a strike by some of its employees, it may legally
arrange a(n) ________ to prevent these employees from entering the work premise.
A) strike
B) picketing
C) employer lockout
D) employee lockout
The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) is designed to
prevent fraud and other abuses associated with private pension funds.
Throughout Christianity, divine and natural laws have been issued in the form of
________.
A) edicts
B) conventions
C) adjurations
D) canons
A contract is said to have legal value if ________.
A) both the promisor and the promisee receive a legal benefit
B) the promisor suffers a legal detriment
C) the promisee suffers a legal detriment
D) the promisee receives a legal benefit
Which of the following constitutes an agency?
A) principal-agent relationship
B) agent-agent relationship
C) principal-principal relationship
D) agent-independent contractor relationship
Which of the following is true of exempt securities?
A) Only the federal government can issue exempt securities.
B) Once a security is exempt, it is exempt forever.
C) An exemption notice must be filed with SEC every time the exempt security is
transferred.
D) Exempt securities cannot be traded publicly.
A(n) ________ involves the seller entrusting possession of goods to a buyer on a trial
basis.
A) destination contract
B) option contract
C) unequivocal transaction
D) conditional sale
________ is a promise to refrain from doing an unlawful act, and therefore is a promise
that will not support a contract.
A) Preexisting duty
B) Illusory promise
C) Illegal consideration
D) Gift promise
According to the U.S. Department of Labor, children under the age of 14 can only be
employed as ________.
A) stocking staff at stores
B) newspaper deliverers
C) waiters
D) store assistants
