The liability of manufacturers, sellers, lessors, and others for injuries caused by
defective products is commonly referred to as product liability.
An implied warranty of fitness for a particular purpose is breached if the goods do not
meet the buyer’s or lessee’s expressed needs.
A person who inherits property under a will or an intestacy statute takes the property
subject to all the outstanding claims against it.
An offer terminates upon the expiration of a stated time in the offer.
The Eighth Amendment prohibits capital punishment.
Marks used in lieu of a written signature cannot be used for indorsements.
Indian Gaming Regulatory Act establishes the requirements for conducting casino
gambling and other gaming activities on tribal land.
Regulatory statutes can be known as administrative laws.
A limited liability limited partnership limits the liability of general partners.
According to the right of first refusal, a selling shareholder must offer to sell his or her
shares to the other parties to the agreement before selling them to anyone else.
All members of the Public Company Accounting Oversight Board (PCAOB) have to be
certified public accountants (CPAs).
Section 14(a) of the Securities Exchange Act prohibits omissions of material facts in
proxy materials.
A plaintiff must name the partnership and all of the partners as defendants in a lawsuit
in order to pursue a claim for ________.
A) multiple liability
B) joint liability
C) limited liability
D) unlimited personal liability
The crucial factor in determining whether someone is an independent contractor or an
employee is the ________.
A) number of people with whom that party is willing to work with at a time
B) degree of control that the principal has over that party
C) nationality of that party
D) measure of the party’s extraversion
The Department of Homeland Security advises the U.S. President on matters related to
internal security, external threats to the United States, and potential terrorist attacks.
This department is an example of a(n) ________.
A) independent federal administrative agency
B) cabinet-level federal department
C) law enforcement agency
D) state administrative agency
Which of the following is considered an absolute power of corporate directors?
A) the adoption of resolutions
B) the approval of transactions
C) the inspection of the corporation’s books and records
D) the declaration of share stocks
A(n) ________ is a clause in an instrument that permits the maker to pay the amount
due prior to the date of the instrument.
A) prepayment clause
B) acceleration clause
C) extension clause
D) forestallment clause
Treaties sponsored by international organizations like the United Nations are known as
________.
A) arraignments
B) abjections
C) amendments
D) conventions
Which of the following activities is permissible for limited partners?
A) self-dealing
B) usurping an opportunity
C) being a contractor of the partnership
D) competing with the partnership
Which of the following is supported by consideration?
A) written contract
B) gift promise
C) illusory promise
D) preexisting duty
To which of the following type of mortgages does the antideficiency statute apply?
A) foreign currency mortgages
B) home improvement mortgages
C) first purchase money mortgages
D) second purchase money mortgages
A divorce recognized by the law of a state whereby neither party is blamed for the
divorce is known as a(n) ________.
A) annulment
B) pro se divorce
C) no-fault divorce
D) at-fault divorce
Which of the following would generally be considered an express power of a
corporation?
A) opening a bank account
B) issuing notes and bonds
C) purchasing advertisement
D) purchasing insurance
Which of the following is true with regard to price fixing?
A) Price fixing is a reasonable violation of Section 1 of the Sherman Act.
B) Price fixing is a process seen exclusively among sellers of goods and services.
C) Price fixing is permissible as it helps consumers or protects competitors from
ruinous competition.
D) Price fixing also involves fixing the quantity of a product or service to be produced
or provided.
________ arise where two or more testators execute separate wills that leave their
property to each other on the condition that the survivor leave the remaining property
on his or her death as agreed by the testators.
A) Nuncupative wills
B) Mutual wills
C) Joint wills
D) Living wills
A worker who receives workers’ compensation ________.
A) must sign a document stating that his employer was not responsible for his injury
B) cannot work for his employer again
C) cannot sue his employer for the same injury
D) can sue his employer for punitive damages
George made an offer to Jacob to sell his house for $1 million. The offer was received
by Jacob on May 1, 2014, and he stipulated that he had 13 days to accept it. But Jacob
could not arrange the money, and on May 16, 2014 he made a counteroffer to buy the
house for $850,000. Which of the following is true of the original offer made by George
to Jacob?
A) It is terminated by the counteroffer.
B) It is still valid as the house has not been sold.
C) It is invalid due to lapse of the stated time.
D) It is invalid due to incompetency of the offeree.
SEC Rule 506 is known as the ________.
A) nonissuer exemption
B) intrastate offering exemption
C) private placement exemption
D) interstate offering exemption
There are no resale restrictions on securities that come under Regulation A.
Which article of the Uniform Commercial Code governs secured transactions in
personal property?
A) Article 8
B) Article 9
C) Article 18
D) Article 19
What is the function of the gap-filling rule used under the UCC?
A) It helps open terms be “read into” a contract.
B) It helps a merchant revoke his offer even after acceptance.
C) It assures the offeree that goods will be held open for a reasonable time.
D) It protects the offeror from additional terms that may be added by the offeree.