Before an agency can begin rulemaking proceedings it must be given jurisdiction:
a. by congressional enactment in the form of a statute.
b. granted by an executive order of the President of the United States.
c. from the United States Supreme Court.
d. none of the above.
In an employment contract, agreements not to compete are:
a. illegal
b. uniformly held to be in the public interest and therefore legal
c. valid only if the restriction protects the employee
d. valid, if the restriction is reasonable and necessary for the protection of the former
employer
When a partnership is dissolved by a partner’s bankruptcy, notice:
a. is not required.
b. must be given to the other partners only.
c. must be given to third persons only.
d. must be given to both other partners and third persons.
Federal law __________ conflicting state regulation when a federal law regulates that
particular subject.
a. coincides with
b. is subordinate to
c. parallels
d. preempts
The making of an assignment __________ the assignor of any obligation of the
contract.
a. relieves
b. conditionally relieves
c. does not relieve
d. discharges
An agreement that consists of two or more parts and calls for corresponding
performances of each part by the parties is called a:
a. partial contract.
b. divisible contract.
c. performance contract.
d. divided contract.
An application for insurance:
a. may be oral.
b. generally is attached to the policy and becomes a part of the insurance contract.
c. must be prepared by an attorney.
d. has no binding effect on the applicant.
Sally operates a large manufacturing firm near a federal land preserve known for its
waterfowl and fauna. The federal government has just filed suit against Sally and her
corporation, charging them with criminal violations of various environmental protection
statutes. What rights do Sally and her corporation have that are guaranteed under the
United States Constitution?
Which of the following statements regarding the commerce clause is FALSE?
a. If the federal government establishes safety device regulations for interstate carriers,
a state cannot require different devices.
b. States may not use their tax power for the purpose of discriminating against interstate
commerce.
c. The commerce clause empowers Congress to regulate interstate commerce, but not
commerce with foreign nations.
d. A state cannot refuse to allow an interstate waste collector to conduct business within
the state on the grounds that the state already has enough waste collectors.
A third person who deals with a person claiming to be an agent:
a. can rely on the statements made by the agent regarding the extent of the authority.
b. cannot ignore any knowledge regarding a limitation of the agent’s authority.
c. is not required to take notice of any acts clearly adverse to the interest of the
principal.
d. all of the above.
Due process rights apply to:
a. individuals only.
b. corporations only.
c. both individuals and corporations.
d. individuals, but only in their official capacity within a business.
One element involved in the determination of unconscionability is:
a. the comparative bargaining power of the parties.
b. the opportunity to make a contract for better terms with someone else.
c. the course of the economy after the contract is made.
d. whether a loss will be sustained by performance of the contract.
The usual method of creating an agency is by:
a. express authorization.
b. conduct.
c. operation of law.
d. ratification.
Rights theory:
a. is also known an entitlement theory.
b. states that everyone has a set of rights.
c. believes that it is the government’s responsibility to protect our rights.
d. all of the above.
When a surety pays a debt that it is obligated to pay, it automatically acquires the claim
and the rights of the creditor through:
a. assignment.
b. exoneration.
c. subrogation.
d. default.
Describe the rights of employers to monitor the e-mail of employees who are using
their employers’ email system.
a. Employers may monitor employees’ e-mails, but only if the employees have
consented.
b. Employers may monitor employees’ e-mails, regardless of whether employees have
consented.
c. Employers may monitor employees’ e-mails, but only if notice is given.
d. Employers may not monitor employees’ e-mails.
How do the warranty provisions under the CISG compare to the provisions of the
UCC?
a. In most instances, the standards are the same.
b. In all instances, the standards are the same.
c. The CISG standards are stricter when compared to the UCC standards.
d. The standards are completely different.
Companies with 100 years of consistent dividends:
a. use positive laws as a guide for ethical decisions.
b. have a goal of profitability no matter what the cost.
c. have a strong commitment to values.
d. all of the above.
When the president negotiates a treaty with a foreign country and submits it to the
Senate for approval, the president’s action is:
a. an express Constitutional amendment.
b. an amendment by judicial interpretation.
c. an amendment by practice.
d. the power of manifest destiny.
Unfair competition is controlled by:
a. statutes.
b. administrative agencies.
c. administrative regulations.
d. all of the above.
Nonprofit corporations:
a. are also known as a eleemosynary corporations.
b. are organized for charitable or benevolent purposes.
c. include hospitals and universities.
d. all of the above.
The transfer of technology rights in a product to allow another firm in a foreign country
to produce a product in return for royalties or other specified payments is called:
a. exporting.
b. licensing.
c. agency representation.
d. subsidiary sales.
An instrument is payable on demand if it is payable:
a. on or before a stated date.
b. at sight or presentation.
c. at a fixed time after acceptance.
d. all of the above.
A minor cannot avoid a contract that has been:
a. ratified.
b. signed.
c. processed.
d. disallowed by the court.
In general, an acceptance occurs when:
a. a particular form of words is stated to the offeror.
b. a particular mode of expression is made to the offeror.
c. the offeree reserves the right to reject the offer.
d. a clear expression of the offeree’s agreement to be bound by the terms of the offer
occurs.
The federal court system consists of ____ level(s) of courts.
a. one
b. two
c. three
d. four
A landlord has the right to enter a leased premises without notice:
a. for emergency purposes.
b. for repairs and evaluations.
c. both a. and b.
d. none of the above.
The registration requirement of the Securities Act of 1933 applies to:
a. the issuing of stocks, bonds, and other investment securities.
b. the issuing of certificates of deposit by a national bank.
c. shares issued by nonprofit corporations.
d. issues of $1.5 million or more.
ERISA establishes an insurance plan to protect employees when the employer goes out
of business. To provide this protection, the statute created a:
a. pension surety system.
b. Pension Benefit Guaranty Corporation.
c. Pension Accrual Compensation System.
d. bond system of payment.
An administrative regulation:
a. is a guideline that may be voluntarily followed.
b. has the force of law.
c. is a suggestion of what will protect the environment.
d. is a standard used to guide an industry at the industry’s discretion.
When distributees stand in different degrees of relationship:
a. distribution is made per stirpes.
b. distribution is made per capita.
c. a distribution cannot be made without the consent of the state.
d. the right of escheat applies.
Negotiation of bearer paper requires:
a. delivery only.
b. indorsement only.
c. both indorsement and delivery.
d. neither indorsement nor delivery.
__________ reserve auctions are those in which the goods must be sold regardless of
whether the auctioneer is satisfied with the levels of the bids.
a. With
b. Without
c. Unqualified
d. Unrestricted
In order to obtain a court order enjoining a competitor from using your trademark, it is
necessary to show that:
a. you invested a certain level of resources to develop the mark.
b. the competitor is making unfair profits from use of the mark.
c. the competitor’s use of the mark risks confusing the public.
d. all of the above.
Case law consists of the rules and regulations parties agree to as part of their contractual
relationship.
Creditors of a firm have first claim on the assets of the partnership.
A ‘suggested retail price” is not a violation of the antitrust laws.
When the price of the goods is $500 or more, a writing signed by the defendant is
required in all cases.
An agreement that contemplates the performance of an act prohibited by law is usually
void.
Suretyship is a pledge to pay one’s own debts and obligations.
A seller’s inability to obtain from any supplier the goods called for by the contract
generally discharges the contract for impossibility of performance.
A contract for an amount greater than $1 million must be made under seal or it is not
binding.
An ordinary bailment can arise without an agreement between the parties.
The World Trade Organization (WTO) provides a Dispute Settlement Body (DSB) to
enable member countries to resolve trade disputes rather than engage in unilateral trade
sanctions or a trade war.
Employees may waive their attorney-client privileges when using their work computers
for communication.
A person who substantially performs a contract is liable for damages to the other party.
Robertson and Enrickson prepared an agreement to enter into a partnership. Both of the
partners realized that outside capital was needed for the firm to begin operations;
however, they also realized that their individual and combined credit ratings would not
attract sufficient funds. In order to improve the new partnership’s ability to attract
investment capital, and with the approval of Enrickson, Robertson added his friend
Thompson’s name to the partnership agreement. Thompson, a well-known personality
from a family of means, was not asked to be a partner and knew nothing of Robertson’s
and Enrickson’s actions. Upon seeing Thompson’s name on the partnership agreement, a
local bank readily agreed to advance Robertson and Enrickson the total sum required to
begin operations. The partnership has now failed, and the bank would like to hold
Thompson, Robertson and Enrickson liable for the amount of the loan. Will the bank
recover from Thompson, Robertson and Enrickson?
A contract carrier holds itself out as willing to furnish transportation for compensation
without discrimination to all members of the public who apply.
Ames, an agent for Baker Antiques, had the authority to purchase early 20th-century
American furniture costing a maximum of $1,500 per piece. Ames bought a
19th-century French desk for $3,000 from Carter. Baker was furious when she saw the
desk, and she fired Ames. Nevertheless, she put the desk on display in the shop with a
$5,000 price tag. When the best offer she got for the desk was $2,500, Baker returned
the desk to Carter. Baker told Carter that Ames had exceeded his authority in
purchasing the desk, and she demanded that Carter refund the $3,000 that Ames had
paid for the desk. Will Carter have to do so?