Most states have statutes making a person who issues a check drawn on a bank in which
he or she has no account guilty of the criminal offense of larceny.
An administrative hearing conducted by an administrative agency is in some respects
like an informal court trial.
The two basic types of commercial paper are promises to pay through notes and orders
to pay through checks and drafts.
Vicarious negligence is the charging of a negligent act of one person onto another.
In modern times, customary practices and treaties are the major sources of international
law which are recognized in the Statute of the International Court of Justice.
A transaction that is neither oral nor written but is still legally binding is considered an
implied contract.
There are instances in which goods are thrust upon a bailee who does not have any
choice about whether or not he or she wishes to serve as bailee, which is a type of a
constructive bailment.
Both warranties and product liability claims are covered by the law of sales, contract
law, and the Uniform Commercial Code.
The federal Digital Millennium Copyright Act of 1998 provides that SIPs are usually
liable for copyright infringements by their subscribers.
It is constitutionally acceptable for a municipality to pass a law limiting what a
journalist can write or say about a political candidate or issue.
A court order of specific performance prohibits a party from performing a certain act.
Health care laws are comprised of federal, state, and local statutes, rules, regulations,
and judicial decisions.
Few states have legislation that regulates gambling.
In order to promote trade, the United States, Canada, and Mexico have agreed to follow
the rules of the North American Free Trade Agreement.
A trademark refers to the name and good reputation of a firm.
The rightful owners of music often have granted permission and received royalties from
pirated music; they have not made any efforts to stop companies from distributing
music online.
The pressure under duress only takes the form of a threat of bodily harm to an
individual or to his family, but not the threat of serious loss or damage to his property.
A corporate code of ethics is a set of guidelines limited to corporate management.
A legacy or bequest can be residuary, when a will provides for the disposition of the
balance of the estate.
Implied warranty of fitness for a particular purpose is sometimes referred to as fitness
of purpose.
The Sherman Antitrust Act and its amendments forbids agreements to limit production.
A life insurance policy is an example of a third-party contract.
An offer made in anger or jest is not made with the intent of entering into a valid
enforceable agreement.
The laws governing online gambling vary from state to state, and most states have
pending regulations that would severely restrict how and when such gambling may take
place.
Examples of agreements that violate government statutes, and are unenforceable by the
courts, are gambling and wagering agreements.
Manufacturers and sellers have a duty to advise purchasers and users of dangers
inherent in a product.
The authority of an agent to perform the duties that are specifically stated in the
contract of agency is known as apparent authority.
An incidental beneficiary has a legal right to benefits resulting from a contract.
The rules of defamation vary depending on whether one is or is not a public figure.
Undue influence is the act of applying unlawful or improper pressure or influence to a
person in order to gain his agreement to a contract.
The Uniform Commercial Code dispenses with the requirement of consideration in
certain contracts that involve a merchant’s written firm offer that provides that the
contract is irrevocable.
Some state statutes and local ordinances that regulate the creation and performance of
certain types of contracts on Sundays and legal holidays are referred to as:
A.white laws.
B.black laws.
C.blue laws.
D.red laws.
It is now recognized that the release of ____________ into the air has created damage
to the ozone layer in the atmosphere.
A.carbon monoxide
B.chlorofluorocarbons
C.sulfuriticarbons
D.carbon dioxide
A(n) __________ transfers all rights and obligations in a contract.
A.assignment
B.novation
C.exemption
D.execution
The owner of real property who gives up his or her right of possession is known as a(n):
A.executor.
B.bailor.
C.guarantor.
D.landlord.
Patents, rights to drill for oil on someone’s land, and copyrights of creative works such
as books are:
A.special possessions.
B.tangible possessions.
C.inalienable possessions.
D.intangible possessions.
A purchase order issued by one firm to another is generally considered a(n):
A.offer.
B.acceptance.
C.first step in negotiations.
D.request for a proposal.
In the case of purchase orders:
A.the seller of the goods is the offeror and there is no offeree.
B.the buyer of the goods is the offeror and there is no offeree.
C.the seller of the goods is the offeror and the buyer is the offeree.
D.the buyer of the goods is the offeror and the seller is the offeree.
The electronic contracts containing electronic signatures are just as enforceable as those
that are printed on paper is a statement made by a federal statute called the:
A.Sherman Antitrust Act of 1890.
B.Global Anti-Semitism Review Act of 2004.
C.Digital Millennium Copyright Act of 1998.
D.Electronic Signatures in Global and National Commerce Act of 2000.
Disclaimers of the warranty of fitness for a particular purpose must be:
A.oral and not be conspicuous.
B.in writing and must be conspicuous.
C.notarized and available electronically.
D.unstamped, however displayed.
The owner of a freehold estate who holds the estate absolutely is said to hold it in:
A.accession.
B.easements.
C.life estates.
D.fee simple.
The fact that the Enron and Arthur Andersen case dominated the media and resulted in
numerous congressional investigations showed the widespread concern with:
A.the ethical behavior in business.
B.the enforcement of law.
C.the power of the government.
D.the role of educational institutions in the field of ethics.
An injunction is also called a(n):
A.exaction.
B.restraining order.
C.gag order.
D.anticipatory breach.
A physical or mental impairment that substantially limits one or more of the major
activities of life is defined by the Americans with Disabilities Act as a(n):
A.disability.
B.tragedy.
C.accident.
D.occurrence.
A reputed merchant will agree to a sale or return in order to maintain:
A.balance.
B.inventory.
C.goodwill.
D.consignments
Disclosing personal, irrelevant information about a former employee amounts to:
A.defamation.
B.invasion of privacy.
C.illegal restraint of trade.
D.violation of restrictive covenant.
An agent must keep accurate accounts of his or her transactions conducted as part of
the:
A.termination clause.
B.appointment letter.
C.agreement
D.agency agreement.
At times, under federal and state law, companies must maintain and report detailed
records to demonstrate that their employment practices are nondiscriminatory. These
reports are referred to as:
A.bonafide affirmation plans.
B.affirmative action plans.
C.legal insurance plans.
D.antidiscrimination plans.
If it can be established that the testator lacked __________________, the will is:
A.consideration
B.testamentary capacity
C.undue influence
D.duress
A telephone conversation can result in a(n):
A.informal contract.
B.statutory contract.
C.contingent contract.
D.enforceable oral contract.
In modern times, customary practices and treaties are the major sources of international
law and these are recognized in the:
A.Statute of the European Court of Justice.
B.Statute of the International Court of Justice.
C.International Labour Organization.
D.Supreme Court of the United States.
Ethical beliefs are the foundation of many of our:
A.reports.
B.laws.
C.books.
D.religious practices.
The nature of a contract for necessaries must bear some relationship to a minor’s
individual needs and to his or her:
A.legal understanding.
B.social and financial status.
C.professional status.
D.moral behavior.
The Americans with Disabilities Act of 1990 (ADA) is designed to protect
__________from illegal discrimination in employment on the basis of disability.
A.corporations
B.charitable trust
C.state
D.individuals
The promises exchanged by the parties to a contract, either to give up something of
value they have a legal right to keep, such as money or property; to do something they
are not otherwise legally required to do, such as performing a service; or to refrain from
an action is known as:
A.competence of parties.
B.offer and acceptance.
C.mutual agreement.
D.consideration.
In a corporation, directors and officers of the company in which they hold their
positions have a _____________ to the company.
A.dependability
B.mandatory duty
C.time bound duty
D.fiduciary responsibility
If an attorney fails to properly investigate matters related to a client’s case, such as
seeking clear title to property in real estate matters or interviewing witnesses in criminal
matters, _____ can be established.
A.negligence.
B.malpractice.
C.unethical behavior.
D.churning.
The contract for the sale of a business usually includes a(n) ________________, similar
to the restrictive covenant placed in an employment contract.
A.agreement not to compete
B.nondisclosure agreement
C.service level agreement
D.arbitration agreement
The Electronic Communications Privacy Act (ECPA) makes it a federal crime to
monitor e-mail during real time, that is, when it is being sent or received.
The ____________ is a specialized agency of the United Nations and an international
organization that administers numerous treaties concerning protection of intellectual
property rights.
A.World Bank
B.International Monetary Fund
C.World Trade Organization
D.World Intellectual Property Organization
According to the UCC, if the ____________ of overdue negotiable paper did not have
notice or knowledge that the commercial paper was overdue, he or she could be a
holder in due course
A.seller
B.acceptor.
C.buyer
D.proprietor
The doctrine of _____________ means an employee may choose to terminate his or her
employment at any time he or she wishes and an employer may terminate an
employee’s employment at any time for a good reason, a bad reason, or no reason at all.
A.res subjudice
B.res judicata
C.precedent
D.employment at will
If a third party knows of the agency and knows the identity of the principal, the agent
cannot be held ______________ as long as the agent acts within the scope of his or her
actual authority.
A.personally liable
B.in contempt of court
C.without bail
D.against his or her will.