Administrative agencies lack the authority to establish rules that have the force of law.
Confiscation involves the host country’s purchasing the assets of a foreign company. .
An effective sexual harassment program is one that is orally communicated to the
employees.
When the amount of a check expressed in figures does not agree with the amount stated
in words, the amount expressed in words is considered the true one.
A counteroffer, that is, a conditional, or qualified, acceptance of an offer, is generally
interpreted as an acceptance and is not binding on the parties.
The trustee may not purchase securities that are of very low risk and that appear on a
document referred to as a legal list.
The Magnuson-Moss Warranty Act applies only when written warranties are made
voluntarily on consumer products that cost more than $500.
Contracts in which the parties have unequal bargaining power are known as
unconscionable contracts.
A certain action can either be a tort or a crime; it cannot be both.
The rules and regulations established by the Consumer Protection Agency resemble the
decisions reached in a court of law.
Negligence per se occurs when a defendant, in a case of negligence, has violated a law
that was enacted in order to prevent the type of injury that occurred.
For an act to be considered defamatory, it is necessary to show that the harmful
statement was made in such a way that others heard or read it.
Sales talk, or puffing, has the effect of a warranty.
The equal protection clause is a provision of the Constitution that grants Congress the
power to regulate trade with foreign nations, and among the several states, and with the
Indian tribes.
Treason is a major crime defined by the Constitution of the United States.
The employer is personally liable for injuries to third parties for intentional or negligent
torts of her employees, whether committed within the ordinary scope of employment or
not.
The major disadvantage of a sole proprietorship is the fact that the owner of the
establishment has limited liability.
Although limited liability companies provide all of the owners with limited liability,
these owners are not permitted to participate in the management of the business.
When the owner of goods entrusts property to a person who sells the same type of
goods and that person sells the property to an innocent third party, the owner cannot be
estopped from recovering the goods from the third party.
Many purchasers or users of products, or even third parties, who sustain injury or
property loss as a direct result of using the product, file a civil lawsuit based not on tort
law, but on contract law.
The Eighth Amendment prevents the government from imposing an unjustly harsh fine
on a person convicted of a crime.
One of the characteristics of commercial paper is the ease with which it can be
transferred from one person to another.
Employment contracts frequently have clauses related to maintaining confidentiality
with respect to trade secrets, restrictive covenants, and agreements to arbitrate in the
event of a dispute between the parties.
Pursuant to the Computer Software Copyright Act of 1980, it is an infringement if the
owner of a computer program makes a single copy.
A contract must show mutual agreement, which is also referred to as “a meeting of the
minds.”
The use of English as the language of international business is on the decline due to
cultural differences, disparate legal systems, and fluctuating exchange rates.
Slander is the spreading of damaging words or ideas about a person, directly or
indirectly, in all other forms not considered libel.
An entire or indivisible contract can contain only two parts, and each is required to be
independent of the other.
For title to pass by estoppel, the purchaser need not prove that the purchase was made
from one in rightful possession.
In an area that is not open to the public, the owner of the property is presumed to
possess both the place itself and whatever it contains
If no surviving heirs or ancestors of the deceased can be located, the decedent’s property
passes to the:
A.charitable trust.
B.siblings of the deceased.
C.friend or friends of the deceased.
D.state.
The act of wrongfully making or altering the writings of another with the intent to
defraud is:
A.fraud.
B.forgery.
C.unlawful writing.
D.cheating.
The unintentional misstatement or nondisclosure of a material fact made by one party
with the hope of influencing the other party amounts to:
A.fraud.
B.duress.
C.misrepresentation.
D.mistake.
The tenant can occupy a landlord’s property only with the consent of the:
A.landlord.
B.bailor.
C.administrator.
D.executor.
An agreement in which a man borrows his friends tuxedo is a bailment for the:
A.sole benefit of the bailee.
B.sole benefit of the bailor.
C.benefit of both the parties.
D.benefit of bailee’s heirs.
A _________, according to the Lanham Trademark Act of 1947, is “any word, name,
symbol, or device or combination thereof adopted and used by a manufacturer or
merchant to identify his (or her) goods and distinguish them from goods manufactured
or sold by others.”
A.design patent
B.trade secret
C.trade dress
D.trademark
With respect to pledges and subscriptions, courts have generally held that these
promises are:
A.unenforceable.
B.enforceable.
C.enforceable only in cases involving amounts greater than $500.
D.unenforceable if they are not made for a reasonable period of time.
Which of the following was once a trademark, but has now become generic?
A.Xerox
B.Coke
C.Apple
D.Escalator
As a practical matter, the courts seldom reverse the decisions of the agency unless it can
be shown that the agency has:
A.not abused its authority.
B.abused its authority.
C.not acted ultra vires.
D.acted within its judicial power.
It has been held that when, as a result of his or her negligence, the accountant fails to
discover or conceals evidence that a client’s employee has been embezzling funds, an
accountant is liable only to his or her:
A.agent.
B.company.
C.client.
D.partner.
Any agreements to sell an interest in real property must be:
A.approved by a court-appointed judge.
B.in writing unless there has been partial performance.
C.signed in the presence of an administrator.
D.oral or in writing to be enforceable.
A person who holds a freehold estate (ownership interest) only for his or her lifetime is
said to hold a(n) _________ in the property.
A.leasehold interest
B.quite title
C.life estate
D.indispensable interest
In 1890, Congress passed the Federal Antitrust Act. Similar antitrust statutes have been
passed by most states to prohibit:
A.local anticompetitive practices.
B.racial discrimination.
C.payment of taxes.
D.religious discrimination.
Death or the disabling illness of a party to a contract terminates the obligation of the
party to perform if it can be shown that the contract:
A.is unreasonable.
B.calls for special skills or talents.
C.is for an amount greater than $500.
D.cannot be performed within one year.
There is a possibility of expensive pieces of property being sold at auction for a pittance
simply because no one offered a higher bid. This possibility occurs only at an auction:
A.with advertisements.
B.without reserve.
C.without advertisements.
D.with reserve.
In some cases, the courts have held that contracts made by minors who are nearly adults
or that deal with a business are:
A.unenforceable contracts.
B.enforceable contracts.
C.enforceable by the parents or the guardians of the minors.
D.not enforceable by the parents or the guardians of the minors.
Issuers of securities must register the securities with the:
A.U.S. Copyright Commission.
B.U.S. Patent and Trademark Office.
C.Securities and Exchange Commission.
D.Federal Trade Commission.
The offer and acceptance issue gets complicated when there is little or no direct contact
between the parties, as in the case of all of the following EXCEPT:
A.bidding.
B.advertising.
C.public offers.
D.agreement.
The trustee may purchase securities that are of very low risk and that appear on a
document referred to as a(n):
A.bargaining agreement list.
B.legal list.
C.covenant list.
D.arbitration list.
A document that provides relevant and important information about the company, its
businesses, and its prospects is known as:
A.a memorandum of association.
B.articles of association.
C.letters of incorporation.
D.a prospectus.
If an employee has agreed to a workers compensation scheme, she may not file a
lawsuit against his or her employer for negligence because workers compensation is
the:
A.exceptional remedy.
B.preventive remedy.
C.exclusive remedy.
D.unavoidable remedy.
An incidental beneficiary is one who may benefit as an indirect consequence of a
contract, although that was not the intent of the:
A.administrator.
B.contracting parties.
C.assignor.
D.deceased party.
The not-for-profits organizations include all of the following, EXCEPT:
A.universities.
B.limited liability partnerships
C.political parties.
D.social clubs.
A law that is passed by a local government, such as a city council, is often called a(n)
______.
A.ratio decidendi
B.obiter dicta
C.ordinance
D.stare decisis
Like zoning regulations, safety and environmental regulations also serve as:
A.legal restraints of trade.
B.foreign protection laws.
C.unfair trade practices.
D.policies encouraging monopolization.
A termination by forfeiture gives the landlord the right to terminate the lease if the
tenant violates a ___________ lease provision.
A.substantial
B.constructive
C.minimal
D.material
An agent may perform only those acts that have been authorized by the principal or:
A.the spouse of the principal.
B.his or her employer.
C.the court.
D.the government.
In the United States, the federal Constitution gives______.
A. unlimited powers exclusively to the federal government
B. unlimited powers to both the federal and state governments
C. reasonable powers exclusive to state governments
D. reasonable powers to the federal government
A gift of real property is known as a:
A.devise.
B.living trust.
C.codicil.
D.living will.
At times, a manufacturer or seller issues statements limiting a warranty to provide less
protection than the law requires. Such statements do not have the force of law, and the
manufacturer or seller is still responsible for breach of:
A.good faith.
B.contingency.
C.indemnity.
D.warranty.
When an endorsement is made on the instrument, it can be further negotiated only when
it has been indorsed by the specified person. Such an endorsement is a:
A.specific endorsement.
B.definite endorsement.
C.declarative endorsement.
D.special endorsement.
If an agreement imposes a legal obligation, then it is a(n):
A.enforceable contract.
B.unenforceable contract.
C.a negated concurrence.
D.a void contract.
A person cannot be held liable, even by a holder in due course, if he or she signs an
instrument that is apparently not negotiable and the paper is later fraudulently converted
into a(n):
A.statutory contract.
B.specialty contract.
C.arbitration agreement.
D.negotiable instrument.
The executive branch of government sees that all legislation is:
A.approved.
B.enacted.
C.enforced.
D.dismissed.