Which of the following applies to the right to dispose of goods?
A) It mandates any profit made by the lessor on the resale of the goods to be shared
with the original lessee.
B) It allows lessees to recover incidental damages incurred in the disposition of the
goods.
C) It permits lessees to dispose of goods in a commercially reasonable manner if the
lessor’s right to cure has expired.
D) It can be exercised by a lessee who has reacquired the goods after stopping them in
transit.
Which of the following best describes immunity from prosecution?
A) The government’s agreement not to use against a person granted immunity any
evidence given by that person.
B) The government’s agreement to quash all charges against a person owing to his or
her physical health condition.
C) The government’s assurance that a convicted person will not be subjected to cruel
and unusual punishment.
D) The government’s willingness to quash all charges against a convicted person owing
to the good deeds he/she performed in the past.
Which of the following has primary liability when it comes to instruments with a
promise to pay?
A) the person in physical possession of the instrument
B) the drawer of the instrument
C) the drawee of the instrument
D) the payee of the instrument
Which of the following domain name extensions used by small businesses was
originally the country code for Belize?
A) .us
B) .biz
C) .bz
D) .com
Anenta Energy is looking to take over Futurum Windpower largely in order to procure
Futurum’s state of the art windmill design. In an attempt to defend itself from this
takeover, Futurum sells its windmill design to another company. In this scenario, the
windmill design is an example of a ________.
A) greenmail
B) white knight
C) poison pill
D) crown jewel
The ________ is a doctrine that says a holder who does not qualify as a holder in due
course in his or her own right becomes a holder in due course if he or she acquires an
instrument through a holder in due course.
A) exclusionary rule
B) acceleration clause
C) shelter principle
D) good faith principle
What is the difference between an insurance broker and an insurance agent?
A) An insurance agent works exclusively for one company, while an insurance broker
works for a number of insurance companies.
B) An agent requires a commission payment after the deal is made, while a broker
requires the service charge to be paid before the deal is made.
C) An agent represents the insured, while a broker represents the company.
D) An agent is authorized to sell insurance directly, while a broker can only mediate an
insurance contract.
The term scienter means ________.
A) good faith
B) innocent heart
C) bad faith
D) guilty mind
Which of the following is true of a C Corporation?
A) It doesn’t pay tax at the corporate level.
B) Shareholders of such a corporation don’t pay tax on their dividends.
C) It must have more than 100 shareholders.
D) Nonresident aliens cannot be shareholders.
A person who deals in the goods of the kind involved in a transaction is referred to as a
________.
A) merchant
B) lessee
C) debtor
D) plaintiff
Which of the following statements is true of the tort of assault?
A) It is considered an unintentional tort by the law.
B) It characterizes any action that arouses apprehension of imminent harm.
C) It is considered a negligent action that is punishable by the attractive nuisance
doctrine.
D) It requires actual physical contact between plaintiff and defendant.
Hillary had purchased a term life insurance policy and nominated her mother as the
beneficiary, while William, her colleague, had a universal life insurance with himself as
the beneficiary. Hillary and William recently got married and wish to nominate each
other as beneficiaries in their individual life insurance policies. In the context of the
given scenario, which of the following statements is true?
A) Hillary and William will have to purchase two new policies to nominate each other
as beneficiaries.
B) Hillary and William will have to seek an endorsement to make the requisite changes
in their current individual life insurance policies.
C) Hillary will be able to nominate William as the beneficiary, but William cannot to do
so because he did not enlist a beneficiary earlier.
D) William will have to nominate both Hillary and her mother as beneficiaries for his
insurance policy because existing beneficiaries cannot be denied coverage.
A(n) ________ must be filed asking the Supreme Court to hear the case.
A) petition for certiorari
B) en banc review
C) quasi in rem review
D) petition for mercy
A(n) ________ is required to negotiate order paper, but not to negotiate bearer paper.
A) security
B) collateral
C) indorsement
D) warranty
Usury laws set a(n) ________.
A) lower limit on annual interest rates
B) upper limit on annual interest rates
C) lower limit on levels of intoxication
D) upper limit on levels of intoxication
Leona drove into an eatery and ordered an item called “Volcano Chicken.” When asked
if the chicken she ordered was very spicy, Leona was informed by Harry”who took the
order and was not aware of all details of the eatery yet as he was a new employee”that it
was not. However, when Leona took a bite, she found the hot sauce extremely spicy
which resulted in her choking on the piece of chicken and requiring medical help.
Which of the following statements is true in this context?
A) Harry can be sued for fraud in the inducement.
B) Harry’s employment can be terminated for having committed fraud in the inception.
C) Harry can be sued for misrepresentation of the law.
D) Harry cannot be sued due to innocent misrepresentation.
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
Which of the following would lead to the termination of an agency by operation of law?
A) loss or destruction of the subject matter of the agency
B) death of either the principal or agent
C) loss of a required qualification
D) a change in the law
Which of the following statements is true of the Supremacy Clause of the U.S.
Constitution?
A) A particular federal statute cannot exclusively regulate a specific area or activity.
B) Any state or local law that “directly and substantially” conflicts with valid federal
law is preempted.
C) A particular federal statute can expressly provide for exclusive jurisdiction.
D) Any state or local law that “directly and substantially” conflicts with valid federal
law is held valid until such a time that the relevance of the federal law is tested and held
in harmony with the cultural diversity in the state.
Which of the following is true of the Equal Pay Act?
A) It protects both sexes from pay discrimination based on gender.
B) Federal workers are covered under the Equal Pay Act.
C) Employees cannot bring a private cause of action against an employer for violating
the Equal Pay Act.
D) An employer who has violated the Equal Pay Act must lower the wages of
employees whose wages had been increased.
Stanley, who owes Milton money, indorses a draft to him with the term “without
recourse.” The instrument later is dishonored. What liability does Stanley have on the
instrument?
A) He has no liabilities on the instrument.
B) He has to pay Milton in case the instrument defaults.
C) He has primary liabilities.
D) He has secondary liabilities.
Article 2A of the UCC prescribes a set of uniform rules for the creation and
enforcement of ________.
A) contracts for the sale of goods
B) all contracts
C) contracts for the lease of goods
D) service contracts
Which of the following is true of the right of redemption for mortgages?
A) The mortgagor has to pay the full amount of the debt incurred by the mortgagee.
B) The title of possession is passed on to the mortgagee upon completion of
redemption.
C) The mortgagee is allowed to pay back partial interest until the statutory period of
redemption.
D) The amount payable by the mortgagor is free of interest charges and other charges.
Tom, an investor from the Republic of Senborgia, acquires a large American company
in Delaware. He closes down the company’s branches in the state and moves the
business elsewhere. This results in a heavy layoff of employees who are Delaware
citizens. Delaware also suffers a decrease in tax revenues. Which of the following
allows the president of the United States to suspend Tom’s acquisition?
A) Williams Act
B) Securities Exchange Act of 1934
C) Investment Company Act of 1940
D) Exon-Florio Foreign Investment Provision
The doctrine that is imposed when one person confers a benefit on another, who retains
the benefit, and when it is unjust to allow the recipient to retain the benefit without
paying for it is known as ________.
A) quasi-contract
B) pseudo-contract
C) unilateral contract
D) bilateral contract
Title VII of the Civil Rights Act of 1964 applies to ________.
A) employers with 15 or more employees
B) tax-exempt private clubs
C) Native American tribes
D) labor unions with less than five members
Miranda Airways, a commercial air carrier, has a contract with Wurtherton, Inc., an
airplane manufacturer, to purchase a new plane. Due to a sudden shortage of cash,
Miranda Airways goes to MetrosBank. MetrosBank issues a document to Wurtherton
that if Miranda does not pay for the transaction, MetrosBank would. Wurtherton
considers the offer, and then sends an acceptance with additional terms. The additional
terms stipulates that Miranda Airways could have the new airplane for a period of 10
years, and then return it to Wurtherton. Miranda Airways agrees to the acceptance, and
Wurtherton hands the new airplane over to them. What UCC rule was applied when
Miranda Airways agreed to the additional terms acceptance provided by Wurtherton?
A) firm offer rule
B) mirror image rule
C) battle of the forms rule
D) gap-filling rule
The social responsibility theory of business which says that a corporation’s duty is to
make a profit while avoiding causing harm to others is referred to as ________.
A) stakeholder interest
B) corporate citizenship
C) maximizing profits
D) moral minimum
General partners have ________ for the debts and obligations of the partnership.
A) limited exemption
B) conditional exemption
C) limited organizational liability
D) unlimited personal liability
Goods are considered to be in transit when they are in possession of ________.
A) sellers
B) buyers
C) lessors
D) carriers
A(n) ________ is a declaration of how a person wants his or her property to be
distributed upon death.
A) will
B) tort
C) audit
D) writ
When are future goods, other than crops and unborn young, identifiable?
A) when the parties enter into the contract
B) when the buyer pays for the goods
C) when the seller begins manufacturing the goods
D) when the seller ships the goods
An issue in applying the Anticybersquatting Consumer Protection statute is ________.
A) whether the domain name is someone else’s famous name
B) stopping the use of top-level domain names
C) preventing the kidnapping of Internet domain names
D) the approval given to businesses to use spam
________ refers to an attempt by another person to take over a living person’s name or
identity for commercial purposes.
A) Invasion of the right to privacy
B) Tort of appropriation
C) Defamation of character
D) Disparagement
In which of the following methods of alternative dispute resolution must parties to a
case employ a neutral third party to settle their dispute?
A) mediation
B) mini-trial
C) e-court
D) judicial-referee