Title VII protects members of which racial grouping(s)?
a. black only
b. black, Native American, and Asian-Pacific
c. white only
d. all racial groupings
A bill of lading that consigns the goods “to bearer” is called a:
a. nonnegotiable bill of lading.
b. straight bill of lading.
c. negotiable bill of lading.
d. common bill of lading.
A finance company may reject an applicant for a loan on the grounds that the applicant
is:
a. married.
b. sixty-five or older.
c. divorced.
d. none of the above.
Paul purchased a house and also purchased fire insurance coverage on the house. The
policy contained an 80 percent coinsurance clause. Paul maintained coverage in the
amount of $150,000 and the value of the house was $250,000. A fire caused a loss of
$100,000. Paul will collect:
a. the full $100,000, because he had coverage for $150,000.
b. on part of the $100,000 loss, because he failed to maintain coverage at 80 percent of
the value of the house.
c. nothing, because he failed to maintain coverage at 80 percent of the value of the
house.
d. 80 percent of $250,000, or $200,000.
A criminal nuisance may be terminated by:
a. abatement.
b. closure by government authority.
c. abatement or closure by government authority.
d. none of the above, since the law only recognizes civil (not criminal) remedies for
nuisance.
A contract in which one party agrees to purchase goods from another contingent upon
the purchaser’s ability to locate suitable financing is said to:
a. be illegal.
b. result from undue influence.
c. contain a waiver.
d. contain a conditional promise.
Dividends are payable in:
a. money.
b. products manufactured by the corporation.
c. shares of other corporations held by the corporation.
d. all of the above.
An offer to perform is known as a(n) __________.
a. rendering
b. offering
c. tinder
d. tender
The Alexo Corporation has been charged in a United States court with violation of
American antitrust laws in its foreign dealings. The firm has raised the defense that its
actions were compelled by the government of its host country. Alexo based its defense
on the__________ doctrine.
a. act-of-state
b. sovereign compliance
c. sovereign immunity
d. Timberlane
An endorsement “for deposit only” is:
a. restrictive.
b. qualified.
c. special.
d. blank.
Which of the following is not protected under the privileges and immunities clause?
a. right to go to another state and make a contract
b. right to go to another state and vote in local elections
c. right to go to another state and purchase property
d. right to go to another state and open a business
If no time period for performance is specified in a contract:
a. the contract is unenforceable.
b. time shall be of the essence.
c. a reasonable time for performance will be implied.
d. the time for performance will be ignored by the courts.
Comparative negligence:
a. has been rejected by most of the states.
b. allows a comparison of negligence between plaintiff and defendant.
c. has been held to be applicable in all states, regardless of the extent of the plaintiff’s
own negligence.
d. is a bar to recovery under common law.
V3 was a successful singing group that contracted to perform at the “Metalsubstance”
rock concert. V3 was aware that the promoter would sustain a substantial loss if the
group failed to perform. The members of the group were stricken with a virus that
confined them to their beds. The promoter sued for breach of contract. What is the
probable result?
a. V3 is liable for damages for breach of contract.
b. The contract was discharged by impossibility of performance.
c. In order to avoid liability for breach of contract, V3 must arrange for another group
of comparable quality and reputation to perform on the scheduled date.
d. V3 will be deemed to have substantially performed the contract.
Under Article 2 of the UCC, in a situation where it is clear that the parties intended a
contract, but a term in the acceptance conflicts with a term in the offer:
a. there is no contract.
b. the acceptance is viewed entirely as a counteroffer.
c. there is a contract for the terms of the offer and acceptance that are consistent, but the
conflicting terms cancel out.
d. there is a contract, and the conflicting term in the offer is part of the contract.
Consideration is not required in:
a. contracts for the sale of goods.
b. employment contracts.
c. agreements to modify employment contracts.
d. agreements to modify contracts for the sale of goods.
A holder in due course must meet all of the following conditions except:
a. giving no value for the instrument.
b. taking the instrument for value.
c. acting in good faith.
d. being ignorant of the fact that the paper is overdue or dishonored.
A computer crime generally requires that:
a. the criminal possess a computer.
b. the victim possess a computer.
c. the criminal have some knowledge of computers.
d. the victim have some knowledge of computers.
Which of the following statements regarding the Foreign Corrupt Practices Act is true?
a. It applies only to foreign officials in this country.
b. It applies only to foreign officials outside this country.
c. It applies only to “grease” payments.
d. None of the above statements is true.
Where the debtor has fewer than twelve (12) creditors, how many must sign an
involuntary petition?
a. one (1), assuming that the creditor’s unsecured claim is at least $13,475
b. one (1), assuming that the creditor’s secured claim is at least $13,475
c. three (3), assuming that the creditors’ unsecured claims total at least $14,575
d. three (3), assuming that the creditors’ secured claims total at least $14,575
If a negotiable instrument is endorsed to a specific person but never delivered to that
person:
a. the maker is guilty of fraud in the inducement.
b. there is no negotiation because there has been no delivery.
c. the instrument is canceled.
d. the maker’s obligation is automatically revoked.
The Electronic Fund Transfers Act (EFTA) does not cover transactions originated by
commercial paper.
Which of the following is part of an administrative agency’s power to investigate?
a. an investigation to determine whether additional administrative rules need to be
adopted
b. an investigation to ascertain facts with respect to a particular suspected or alleged
violation
c. an investigation to determine whether the defendant in a proceeding before the
agency is complying with its final order
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.
Which statement is true concerning administrative hearings?
a. An existing business has the right to challenge the granting of a license to a potential
competitor.
b. Denial of a jury trial is a denial of due process.
c. It is generally necessary to give notice of an administrative hearing and to allow
affected persons to be present.
d. Traditional courtroom rules of evidence must be applied.
Provision for exemption from the registration requirements of the Securities Act of
1933 is made for offerings made solely to accredited investors by SEC Regulation:
a. A.
b. B.
c. C.
d. D.
An investment contract exists if which of the following elements are present?
a. an investment of money
b. a common enterprise
c. an expectation of future profits
d. all of the above
The Uniform Commercial Code applies to:
a. new goods only.
b. used goods only.
c. both new and used goods.
d. none of the above.
An illegal provision in a contract:
a. causes the entire contract to be voidable.
b. causes the entire contract to be rescinded.
c. can be ignored by the parties in their performance of the remaining provisions of the
contract, assuming that the remaining portions of the contract can stand on their own.
d. can be ignored by the parties, because an illegal provision in a contract is not deemed
substantial.
When an enterprise has made false and deceptive statements in advertising, the FTC
may require new advertising to correct the former statement so that consumers are
aware of the truth. This corrective advertising required by the FTC is also called
__________ advertising.
a. retractive
b. redactive
c. retroactive
d. refractive
In which of the following cases is a contract between A and B binding?
a. A makes a mistake of material fact, and the mistake is unknown by B.
b. A and B make the same mistake of material fact.
c. A recklessly but honestly misrepresents a material fact.
d. A innocently misrepresents a material fact.
When a foreign government takes over an American business that is being conducted in
the foreign country, this is called:
a. expropriation.
b. dollar credits.
c. suspension agreement.
d. antidumping.
A common carrier must:
a. receive and carry proper and lawful goods of all persons who offer them for
shipment.
b. furnish adequate facilities.
c. follow the instructions of the shipper.
d. all of the above.
If an insured person tells her current husband that she is going to name him as
beneficiary of her life insurance in place of her former husband and dies a year later
without having taken any further steps with respect to the change of the policy
beneficiary, the insurance company must pay the proceeds of the policy to:
a. the former husband.
b. the current husband.
c. the children by the first marriage.
d. the children by the second marriage.
To bring a tort action for malpractice, a plaintiff must show that the defendant’s breach
was at least:
a. intentional.
b. negligent.
c. reckless.
d. fraudulent.
Compulsory resale of collateral is not recognized by the Uniform Commercial Code.
Customs and trade usage can override the express provisions of a contract.
The Fifth and Fourteenth Amendments prohibit the national and state governments from
depriving any person of property without due process of law.
A buyer seeking damages because of a breach of the sales contract must give the seller
notice of the breach within a reasonable time after the buyer discovers or should have
discovered it.
The Securities Act of 1933 imposes civil and criminal penalties for the making of
fraudulent statements in a registration statement.
The beneficiary of a life insurance policy is not subject to any policy restrictions that
had been agreed to between the insured and the insurance company.
Rundles, Kreiger, and Larson formed a partnership to breed and show horses. Rundles
and Kreiger each contributed $25,000 to the partnership. Larson contributed four (4)
horses valued at $25,000. The partnership agreement provided that the partners would
share profits equally. When the horses failed to perform as expected, Rundles and
Kreiger decided to reduce Larson’s share of the profits. Larson claims that this decision
must be unanimous to be binding. How will the case be decided?
When a negotiable instrument is transferred by negotiation, the transferee is recognized
as the holder of the instrument.
Unconscionability is determined in the light of the circumstances existing at the time
that the contract was made.
Anyone promoting the sale of a real estate development that is divided into fifty (50) or
more parcels of less than five (5) acres each must file a development statement with the
secretary of Housing and Urban Development.
Escape clauses are mechanisms created to promote flexibility in the administration of
laws that appear unfair in particular circumstances.
When the drawee of a draft has indicated by writing or record a willingness to pay the
amount specified in the draft, the drawee has accepted liability and is called the
acceptor.
The storage of goods in a warehouse and the shipment of goods by a common carrier
are examples of special bailments.
The concept of strict liability is applied without regard to whether the defendant was at
fault.
The use of import quotas represents the most common form of tariff barrier.
When the plaintiff seeks the remedy of specific performance, the plaintiff wants the
other party to carry out the terms of the contract and not pay damages.
Law is the result of the desire of the lawmaker to achieve certain goals.
The order or bearer character of a paper is determined as of the time when the
negotiation is about to take place.
From the date of a company’s filing a registration statement with the SEC to the date the
registration becomes effective, at least 20 days must elapse.