It is probable that a zoning variance would be granted:
a. even though many of the neighboring property owners object.
b. on the ground of hardship, regardless of whether the landowner created the hardship.
c. to an outside advertiser to build a billboard that would make the advertiser more
money.
d. when the desired use of the land is in harmony with the general nature of the
surrounding areas.
What federal act regulates the federal government in terms of its operations and impact
on the environment?
a. the Environmental Protection Act
b. the National Environmental Policy Act
c. the Clean Water Act
d. the Resource Recovery Act
The key time for determining whether a party lacked contractual capacity is:
a. the time the contract was made.
b. the time the value of the bargain becomes clear.
c. the time set for performance of the contract.
d. the time the plaintiff expresses dissatisfaction with the contract terms.
Individual rights guaranteed in the United States Constitution:
a. have no accompanying duties.
b. apply only to a small number of individuals.
c. are subject to state legislative laws.
d. generally have accompanying duties.
Which of the following categories of individuals are exempt from the minimum wage
provisions of Fair Labor Standards Act (FLSA)?
a. executives
b. factory workers
c. full-time babysitters
d. housekeepers
By the mere act of selling, a warranty is made that the:
a. goods are the finest available.
b. seller’s title is good and the transfer is rightful.
c. price is the lowest available.
d. goods represent the latest technology.
A subpoena to testify or to produce records:
a. is prohibited by the constitutional guarantee against unreasonable searches and
seizures.
b. is an illegal attempt to gain information by compulsion.
c. cannot be opposed on the grounds that such a request constitutes an unreasonable
search and seizure.
d. must be approved by corporate officers to be effective.
Administrative regulations:
a. are essentially industry advisories.
b. are case-law precedents.
c. have the force of statute.
d. are Constitutional principles.
A counteroffer is a(n):
a. acceptance of the original offer.
b. rejection of the original offer.
c. acceptance of the original offer and an invitation to further negotiate.
d. a revocation of the original offer.
Sales of goods transactions are subject to a statute of limitations period of:
a. one (1) year.
b. two (2) years.
c. three (3) years.
d. four (4) years.
A(n) __________ statement is a document, which may be requested by a paid-up
debtor, stating that a security interest is no longer claimed under the specified financing
statement.
a. execution
b. discharge
c. termination
d. hold harmless
The legal foundation for electronic signing is provided by:
a. state governments, without the assistance of federal legislation.
b. the federal government only.
c. state governments, with the assistance of federal legislation.
d. None of the above.
Which of the following allows a domestic firm to maintain the greatest control over its
foreign operations?
a. wholly-owned subsidiaries
b. licensing
c. foreign distributorships
d. agency arrangements
Bailments may be:
a. created orally or through a writing.
b. created for either real or personal property.
c. created for nonpossessory personal property.
d. made only after delivery to the bailor is accomplished.
A codicil:
a. must be executed with the same formalities as a will.
b. is treated the same as a will.
c. does not invalidate the entire will.
d. all of the above.
An agreement to pay reasonable additional compensation to a contractor for the
performance of a pre-existing contract when the contractor faces extraordinary
circumstances caused by unforeseen difficulties is called a:
a. good-faith adjustment.
b. bribe.
c. compensatory allowance.
d. relief payment.
Which of the following factors do not affect negotiability of an instrument?
a. a provision specifying the collateral that secures the debt
b. the antedating of the instrument
c. the omission of a date of execution
d. none of the above affect negotiability
A successor enterprise is not subject to the contract obligations of the former business
if:
a. one corporation is absorbed by another through merger.
b. a corporation merely purchases the assets of another business.
c. two or more corporations consolidate.
d. none of the above.
The power to tax income:
a. is possessed only by the federal government.
b. is possessed only by state governments.
c. may be exercised concurrently by both state and federal governments.
d. is controlled exactly like the power to wage war.
A third person should recognize that a partner has limited or no authority if:
a. the partner seeks to act for the partnership concerning a matter not within the usual
business of the firm.
b. the third person knows that the partnership has been terminated.
c. the partner seeks to pay a personal obligation by issuing a promissory note in the
name of the firm.
d. all of the above.
An arrangement in which the owner of a trademark licenses others, under specified
conditions or limitations, to use the trademark in purveying goods or services is a(n):
a. corporation.
b. limited partnership.
c. unincorporated association.
d. none of the above.
Frank has two interests in property. On property “X,” Frank has a life estate measured
by the life of his Uncle Sal. On property “Y,” Frank has a fee simple estate. Frank
wishes to transfer, upon his death, his interest in the two properties to his wife,
Samantha. Prior to Frank’s executing his will, Uncle Sal dies. Frank still wishes to will
the properties to his wife, but he now is uncertain whether he has the right to do so. Can
Frank will the two property interests to Samantha?
A disclaimer or exclusion of the warranty of merchantability will be invalid if:
a. the goods cost $500 or more.
b. the defects in the goods are obvious to all buyers.
c. it is made at the time of the sale.
d. it is not conspicuously set forth in a writing.
A written stop payment order or confirmation is effective for:
a. fourteen (14) days.
b. thirty (30) days.
c. six (6) months.
d. one (1) year.
A limited liability company:
a. always qualifies for partnership tax treatment.
b. never qualifies for partnership tax treatment.
c. may qualify for partnership tax treatment.
d. None of the above.
The one-year performance requirement for an oral contract begins:
a. on the day of the agreement.
b. on the first day of performance.
c. on the day following the agreement.
d. the day on which the agreement was placed in writing.
An ethical duty of confidentiality could be breached where:
a. information obtained through research of the employer is disclosed.
b. customer lists or leads are disclosed to a competitor.
c. proprietary information or technology of a business is disclosed.
d. all of the above.
The unauthorized use of a computer belonging to someone else is:
a. a crime in all states.
b. a crime in some states.
c. not a crime in any state.
d. a crime under federal law only.
When a state statute requires a security interest in a motor vehicle to be noted on the
certificate of title, the security interest is perfected:
a. by the certificate notation, when a non-inventory motor vehicle is involved.
b. by filing under the UCC, regardless of how the vehicle is classified.
c. by filing under the UCC, when the motor vehicle is inventory.
d. either by the certificate notation or by a UCC filing, depending on how the state
statute defines the term motor vehicle.
Criminal laws:
a. vary from state to state.
b. are the same from state to state, except in the area of computer crimes.
c. are the same from state to state, except in the area of white-collar crimes.
d. none of the above.
A hotelkeeper’s lien on the baggage of a guest is terminated when:
a. the hotel delivers the baggage to the guest.
b. the guest pays the hotel bill in full.
c. the hotelkeeper converts the baggage of the guest.
d. all of the above.
A partner’s authority to act for the partnership is similar to the authority of a(n):
a. agent to act for a principal.
b. independent contractor to act for an employer.
c. shareholder to act for a corporation.
d. employee to act for another employee.
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. none of the above.
Which word best describes the extent of cyber crime in today’s society?
a. epidemic.
b. moderate.
c. discernible.
d. negligible.
A liquidation of damages clause is valid if it:
a. is not in excess of twice the provable damages.
b. is agreed to by both parties to the contract.
c. reasonably attempts to estimate the actual harm caused by a breach.
d. is a reasonable amount designed to punish the breaching party.
The UCC imposes a good faith requirement that non-merchants must observe
“reasonable commercial standards of fair dealing in the trade.”
The Seventh Amendment to the United States Constitution provides for a federal
ombudsman.
Business corporations exist to make a profit.
The federal government may regulate all methods of intrastate transportation and
communication.
An accountant may be liable for malpractice if the accountant fails to detect signs that
an employee of the client is embezzling.
UCC Article 9 makes a statutory lien for repairs or storage subordinate to a perfected
security interest in the same collateral.
United States common law requires that case precedents be followed under all
circumstances.
A binding contract cannot contain a cancellation provision.
A professor owned a home next door to a very dilapidated, neglected home. John
Cataldo purchased the home next door and made a contract with Wizard Home
Improvements for a complete renovation of the property. The professor was delighted
because the improvement of the Cataldo home was upgrading the neighborhood and
raising the value of the professor’s home.
After making the last required payment on the contract, John Cataldo became seriously
ill and ultimately was taken to a nursing home for care.
When Wizard learned of Cataldo’s illness and confinement, Wizard ceased work on the
Cataldo home. Because the outside renovation work had not been completed, the
premises began to return to its former rundown condition. The professor ultimately sued
Wizard as a third-party beneficiary of the contract between Cataldo and Wizard. What
is the probable outcome of the lawsuit?
The death of a majority shareholder terminates a corporate enterprise.
In an action by a third party against the buyer that is based on the seller’s breach of
warranty, the buyer must give notice of the action to the seller.
A customer who has given a purchase order to a salesperson is not bound by any
contract until the employer of the salesperson accepts the order.
The theories of product liability are mutually exclusive.
Under GATT, the principle of trade without discrimination is embodied in the most
favored nation clause.
The standard form of check does not specify when it is payable, and it is therefore
automatically payable on demand.
The types of provisions that make contracts unconscionable include clauses that award
excessive damages or the application of credit payments across purchases over time so
that the consumer is never able to pay off any goods.
Computers and related wire transmissions may be subject to nuisance abatement actions
if their electrical currents cause an unreasonable level of interference with adjacent
landowners’ use of their property.