________ are defensive strategies that are built into the target corporation’s articles of
incorporation, corporate bylaws, or contracts and leases.
A) White knights
B) Proxies
C) Poison pills
D) Crown jewels
Who among the following is committing wrongful disassociation?
A) A member continues to operate a term LLC even after the expiration of the term.
B) A member withdraws from a term LLC and disassociates himself from his duty of
loyalty and duty of care after the expiration of the term.
C) A member withdraws from an at-will LLC even though the operating agreement
eliminates a member’s power to withdraw.
D) A member disassociates himself from his duty of loyalty and duty of care to an
at-will LLC.
A contract between a retailer and a supplier provides that payment is due upon delivery
of goods by the supplier. The retailer’s duty to pay and the supplier’s duty to deliver
constitutes ________.
A) an implied condition
B) a condition precedent
C) a condition subsequent
D) concurrent conditions
Which of the following is true of the 1978 bankruptcy law in the United States?
A) It made it easier for debtors to be relieved of much of their debt.
B) It was deemed to be “creditor friendly.”
C) It prevented debtors from escaping their unsecured debts.
D) It was enacted as a result of lobbying by credit card companies and banks.
Which of the following statements is true of the fault rule of breaking engagements?
A) If the person who has accepted an engagement ring breaks off the engagement, the
ring will be owned by the person who marries first.
B) If the person who has accepted an engagement ring breaks off the engagement, that
person can retain the engagement ring.
C) If the person who gave the engagement ring breaks off the engagement, the other
side can rightfully keep the engagement ring.
D) If the person who gave the engagement ring breaks off the engagement, the ring is
sold at an auction and the proceeds are shared between both parties.
What does the “veil of ignorance” require under the social contract theory of mortality?
A) Ethical obligations could be decided by less intelligent members of society so that
they can be understood by all.
B) Ethical obligations in society should not be made public, because if they were,
individuals would strive to merely do the minimum.
C) Ethical obligations could be determined by persons who do not yet know their place
in society.
D) Ethical obligations could be determined by the lower 50% of the population
economically.
A(n) ________ test is applied to classifications of people based on a suspect class.
A) strict scrutiny
B) intermediate scrutiny
C) rational basis
D) cogent basis
In which of the following processes is the title of goods not transferred?
A) an adverse possession
B) a bailment
C) a sale
D) an acquisition
Which of the following is a lessor’s remedy when the goods involved are in the
possession of the lessee?
A) right to reclaim goods
B) right to withhold delivery of goods
C) right to stop goods in transit
D) right to obtain specific performance
Which of the following is true of a certificate of deposit?
A) It is a promise to pay.
B) It is used to extend credit to a buyer.
C) It is a three-party instrument.
D) It is a savings account passbook.
Which of the following is true of preemptive rights?
A) They allow existing shareholders to sell their shares back to the corporation.
B) They may be exercised by shareholders only for a given period of time.
C) They help in diluting a shareholder’s interest in the company.
D) They enable shareholders to procure new shares issued by the corporation.
If a court judicially dissolves a corporation, it enters a(n) ________ that specifies the
date of dissolution.
A) arraignment
B) dissolution journal
C) dissolution deed
D) decree of dissolution
Mark goes to Tony’s Lumber Yard to buy some lumber to build a new roof for his cabin.
Mark tells Tony, the lumber yard owner, to provide him an exact type of wood that can
resist the wood decay caused due to the damp environment around the cabin. Mark buys
the lumber after Tony assures him that the wood is exactly what Mark is looking for.
But the dampness affects the wood and it caves in. What warranty has Tony explicitly
breached by not providing Mark the lumber he needed?
A) express warranty
B) statement of opinion
C) implied warranty of fitness for human consumption
D) implied warranty of fitness for a particular purpose
Which of the following provisions protects the interest of a joint tenancy upon the death
of a joint tenant?
A) the quiet title action
B) the estate in land
C) the right of survivorship
D) the quitclaim deed
Which of the following statements about corporations is true?
A) The corporate officers appoint directors to run the corporation’s day-to-day
operations.
B) The death, insanity, or bankruptcy of a director or an officer of a corporation
dissolves the corporation.
C) Corporations can be put in prison for violations of the law.
D) Corporations usually have a centralized management composed of the board of
directors and officers of the corporation.
In which of the following conditions does a joint tenancy become a tenancy in
common?
A) when a joint tenant sells his or her property
B) when one of the joint tenants dies
C) when two joint tenants interchange their share in the tenancy
D) when two joint tenants are bound by a marital relationship
The exercise of long-arm jurisdiction is generally permitted over nonresidents who have
________.
A) requested for a change of venue so that a more impartial jury can be found
B) raised hypothetical questions and filed trivial lawsuits in the court of law
C) made a special appearance in that court to argue against imposition of jurisdiction
D) transacted other business in the state that allegedly caused injury to another person
________ is a statute that relieves medical professionals from liability for ordinary
negligence when they stop and render aid to victims in emergency situations.
A) Good Samaritan law
B) Shopkeeper’s privilege
C) Duty of care
D) Res ipsa loquitur
The ________ is a rule that is applicable to restraints of trade considered inherently
anticompetitive.
A) consent decree
B) Noerr doctrine
C) per se rule
D) rule of reason
A(n) ________ uniquely identifies an individual’s or company’s website.
A) e-signature
B) digital footprint
C) email address
D) domain name
A person who has alternative periods of sanity and insanity can enter into contracts
________.
A) when he or she is in a state of sanity
B) when there is a legal guardian appointed by the court for that person
C) once he or she has been adjudged to be insane
D) only once he or she has been adjudged to be legally insane
Which of the following is a federal exemption that a debtor can claim under the
Bankruptcy Code?
A) interest in jewelry worth $1,000
B) unmatured life insurance policy owned by the debtor
C) interest in wrongful death benefits
D) interest of $3,500 in a motor vehicle
Which of the following statements is true of the U.S. Supreme Court?
A) The U.S. Supreme Court’s decisions are appealable.
B) The U.S. Supreme Court hears appeals only from the federal circuit courts of
appeals.
C) The U.S. Supreme Court does not hear any new evidence or testimony in reviewed
cases.
D) The U.S. Supreme Court does not grant any oral hearings to the parties.
Martin, who wants to sell a house he owns, authorizes his concierge, Wilhelm, to find a
potential buyer, and finalize a deal above a stipulated price. Wilhelm contracts Chris, a
real estate broker, and intends him to only find a potential buyer and send them over to
Wilhelm for the sale. Martin then contracts ReNowait Goodhouses, a home
improvement company to renovate the house. ReNowait completes their work and
Martin pays them. Chris then searches for a suitable buyer and finds one in George.
George buys the house and Chris is paid for his services. Which of the following
commercial relationship exists between Martin and William?
A) employer-employee relationship
B) agent-agent relationship
C) agent-independent contractor relationship
D) principal-agent relationship
When is a criminal said to be judgment proof?
A) when the criminal has not been read his Fifth Amendment rights prior to his arrest
B) when the criminal has been deemed to be insane by a court judgment
C) when the criminal does not have the money to pay a civil judgment
D) when the criminal is found to be unfit to go to prison
Which of the following is part of the United States Supreme Court’s test for obscene
speech?
A) The average person, applying contemporary community standards, would find that
the work, taken as a whole, appeals to the prurient interest.
B) The work, taken as a whole, substantially interferes with interstate commerce.
C) The work depicts or describes, in an implicit way, sexual conduct generally defined
by applicable international law.
D) A reasonable person, applying traditional community standards, would find that the
work, in whole or in part, appeals to the salient interest.
What is meant by “causation in fact”?
A) a defendant’s counter-lawsuit against malicious prosecution
B) a defendant’s negligent act led to the plaintiff’s injuries
C) a defendant’s defense against a case of negligence
D) a defendant’s plea of guilt due to negligence
Which of the following is true of horizontal mergers?
A) They do not create an increase in market share.
B) They result in an increase in concentration of the relevant market.
C) The merging firms serve different markets.
D) They are mergers between firms in unrelated businesses.
The ________ issued new rules that permit a party to register a domain name with
personalized TLD suffixes.
A) UCITA
B) ACPA
C) ICANN
D) ECPA
The ________ is a model act that provides comprehensive and uniform laws for the
formation, operation, and dissolution of LLCs.
A) Williams Act
B) Securities Exchange Act
C) ULLCA
D) ULPA
Which of the following statements is true of harassment?
A) The plaintiff-employee has the burden of proving the affirmative defense.
B) There are similar liability rules regardless of whether the harassing employee is a
coworker or supervisor.
C) If the employer is strictly liable for the harassing supervisor’s conduct, the employer
cannot raise a defense to avoid liability.
D) If the employer was negligent in controlling the working situation, the employer
may invoke an affirmative defense.
Which of the following constitutes the property of a Chapter 13 estate?
A) nonexempt property of the debtor before the case is closed
B) exempt property of the debtor before the case is closed
C) debtor’s income before and after the case is closed
D) property that is exempt from Chapter 7 estate
Which of the following is established by the Supremacy Clause of the U.S.
Constitution?
A) The President is the supreme and sovereign head of the United States.
B) The legislative branch of the federal government is the supreme law-making
authority in the country.
C) The judiciary is the supreme law-enforcing authority and cannot be influenced by
anyone, however powerful, in any manner.
D) The U.S. Constitution and federal treaties, laws, and regulations are the supreme law
of the land.