The National Labor Relations Act establishes the right of employers to terminate the
employment of members of unions whose continued picketing hinders the progress of
the business.
Euthanasia pursuant to a living will is considered legal.
After the defendant’s attorney completes his or her questions, the plaintiff’s attorney can
question the witness in a re-direct examination.
The Marine Protection, Research, and Sanctuaries Act, enacted in 1972, extends
environmental protection to the oceans.
An agent is only liable on the instrument that he or she signs in if it clearly mentions the
principal.
A formal entrance into a contract between a client and an accountant is called
abatement.
What is the attestation clause for a will?
A) the condition that the witness must reside in the jurisdiction in which the testator is
domiciled
B) the stipulation that only the testator’s attorney can be a witness to the will
C) the requirement of signatures of witnesses on a will after that of the testator’s
D) the requirement of the beneficiary’s presence when making the will
Credit that does not require any collateral to protect the payment of the debt is referred
to as ________.
A) unsecured credit
B) secured credit
C) fair credit
D) equal credit
Which of the following insurances covers the death of the co-owner’s loss to the
business?
A) directors’ and officers’ insurance
B) key-person life insurance
C) business interruption insurance
D) workers’ compensation insurance
A franchisor discloses a cautionary statement that reads, “Caution: These figures are
only estimates of what we think you may earn. There is no assurance you’ll do as well.
If you rely upon our figures, you must accept the risk of not doing so well.” This is an
instance of ________.
A) disclosure of earning projections based on actual data
B) disclosure of earning projections based on hypothetical data
C) nondisclosure of sales or earnings projections
D) fraudulent disclosure by the franchisor
In which of the following cases of assent is the rescission of a contract unenforceable?
A) mutual mistake of value
B) misrepresentation of a material fact
C) silence as misrepresentation
D) innocent misrepresentation
Which of the following is true of a buyer’s right of inspection?
A) Cost of inspection is shared by the seller and buyer if goods are conforming.
B) Cost of inspection can be recovered from the seller if goods are nonconforming.
C) Goods can only be inspected before shipment is made by the seller.
D) Inspection has to be performed after the goods in the contract have been accepted.
A ________ is a contractor’s, laborer’s, and material person’s statutory lien that makes
the real property to which services or materials have been provided security for the
payment of the services and materials.
A) material lien
B) judgment lien
C) tax lien
D) mechanic’s lien
Which of the following statements describes the moral theory of utilitarianism?
A) People must choose the action or follow the rule that provides the greatest good to
society.
B) People must follow actions that are in accordance with a specific ethical rule or
principle from a religious text.
C) People must choose to follow actions of a virtuous person.
D) People must follow actions based on moral duties imparted by one’s community.
Which of the following scenarios makes Tim liable for undue influence?
A) Tim uses a false identity, borrows $10,000 from Kelly, and disappears with the
money.
B) Tim threatens to kill Carlos if Carlos does not sign a contract that transfers all his
property to Tim.
C) Tim takes advantage of his grandmother’s illness and persuades her to sign a will
leaving all her property to him.
D) Tim threatens to bring a lawsuit against David if David does not make him a partner
in his firm.
Which of the following is true of Small Company Offering Registration (SCOR) forms?
A) SCOR forms can only be used for raising more than $1 million through sale of
securities.
B) SCOR forms are available to both domestic and foreign companies.
C) SCOR forms that have been completed act as the offering circular for potential
investors.
D) SCOR forms have to be completed by the issuee before purchasing securities.
A response by an offeree that contains terms and conditions different from or in
addition to those of the offer is called a(n) ________.
A) rejection
B) counteroffer
C) revocation
D) acceptance
A business purchases an airplane from an airplane manufacturer. The business obtains a
loan to purchase the airplane from a bank, which obtains a security interest in the
airplane. The airplane manufacturer is paid for the airplane out of the proceeds of the
loan. This is a(n) ________ transaction.
A) two-party secured
B) three-party secured
C) perfected
D) attached
A(n) ________ is a type of plea where the defendant pays a penalty without admission
of guilt.
A) nolo contendere
B) arraignment
C) indictment
D) plea bargain
The Food, Drug, and Cosmetic Act is a federal statute that ________.
A) covers all food products including poultry and processed meat
B) grants approval for food additives, drugs, cosmetics, and medicinal devices
C) implements the Federal Meat Inspection Act enacted in 1906
D) protects the public by providing greater medical coverage from food-related
illnesses
The Clean Air Act authorizes the Environmental Protection Agency (EPA) to regulate
air pollution caused by fuel and fuel additives.
What is a servient estate?
A) a piece of land that is being examined for an abstract of title
B) a piece of land over which an easement is granted
C) a piece of land that has concurrent owners
D) a piece of land that comes under a zoning ordinance
Where should the Federal Trade Commission (FTC) franchise notice appear?
A) in the licensing agreement between the franchisor and franchisee
B) as a separate clause in the franchise agreement
C) on the cover of a franchisor’s required disclosure statement
D) on the cover of a franchisee’s required disclosure statement
Why is proving a bona fide occupational qualification essential?
A) for discrimination to be legal
B) to establish the employer’s violation of Title VII
C) to establish the employee’s claim is fraudulent
D) for an employee to claim being discriminated against by the employer