A will cannot be amended by merely striking out existing provisions on the will and
adding new provisions on the will itself.
State antitrust laws are used to attack anticompetitive activity that occurs in intrastate
commerce.
The subjective impossibility of the nonperformance of contractual duties excuses the
contracted parties from their duties.
Self-dealing is a practice that allows directors and officers to fulfill their duty of loyalty.
Security that lenders sometimes require the maker of a note to post for the repayment of
the note is known as collateral.
The FTC franchise rule is a rule that requires prospective franchisees to make full
presale disclosures to franchisors.
In most cases, it is not possible for an insured to cancel an insurance policy before the
date of its maturity.
Accountants who have violated the provisions of the Tax Reform Act of 1976 can be
prohibited from further federal income tax practice.
The JOBS Act permits securities of an issuer to be sold to the public using an
intermediary’s funding portal, which is an Internet website.
A power of sale proceeding should be initiated only with court proceedings.
A lease transaction can involve a supplier apart from the lessor and lessee.
A criminal conspiracy occurs when two or more persons enter into an agreement to
commit a crime.
NAFTA includes special protection for favored industries that have a lot of lobbying
power.
A covenant of good faith and fair dealing is implied in contracts where the parties have
a special relationship that involves a fiduciary duty.
The agent is liable for the tortious conduct of the principal only if he or she directly or
indirectly participates in or aids and abets the principal’s conduct.
A union may punish a union member for participating in a civic duty, such as testifying
in court against the union.
According to the FTC franchise rule, a franchisor that makes sales or earnings
projections based on hypothetical examples must disclose the assumptions underlying
the estimates.
The objective theory of contracts holds that the intent to enter into an express or
implied-in-fact contract is judged by the subjective person standard.
A company that pollutes a river without providing any compensation to those affected is
said to have violated its social responsibility as proposed by the maximize profits
theory.
A promissory note is an unconditional written promise by one party to pay money to
another party.
Under the diversity of citizenship, a corporation is considered to be a citizen of the state
in which it is incorporated and in which it has its principal place of business.
The right to be free from government intervention in the practice of religion is not
absolute.
If the goods or property received under a contract is unavailable or consumed, the
contract cannot be rescinded.
An improperly recorded document is effective against other mortgagees or lienholders
on the same property who have no notice of the prior mortgages.
A branch office is a separate legal entity from the corporation.
If a shipment contract specifies “F.O.B. point of shipment,” the buyer is responsible for
making all the shipping arrangements.
The conversion of a business into an LLC takes effect when the articles of organization
are filed with the secretary of state.
A term in a contract that can reasonably be supplied by the courts is called an implied
term.
Duty of care refers to the obligation people owe each other not to cause any
unreasonable harm or risk of harm.
A seller’s or lessor’s express or implied assurance to a buyer or lessee that the goods
sold or leased meet certain quality standards is called a warranty.
An exculpatory clause can be used in situations involving intentional torts.
Specific intent crime does not require the perpetrator to know the actual result of the
crime in advance.
Maria is the treasurer of Rex Caldwell Corporations. As treasurer, she makes out and
signs the payroll checks for the company. Maria draws a payroll check payable to the
order of her maid, Carolyn Doss, who does not work for the company. Maria does not
intend Carolyn to receive this money. She indorses Carolyn’s name on the check and
names herself as the indorsee. She cashes the check at a liquor store. Under which rule
of forged instruments is Maria accountable?
A) good faith rule
B) exclusionary rule
C) imposter rule
D) fictitious payee rule
Which of the following is a characteristic of a presentment warranty on an instrument
presented for payment?
A) The transferor has no knowledge of any insolvency.
B) The transferor has good title to the instrument.
C) No defenses of any party are good against the transferor.
D) The instrument has not been materially altered.
According to the ________ doctrine, a plaintiff who is partially at fault for his or her
own injury cannot recover against the negligent defendant.
A) contributory negligence
B) attractive nuisance
C) transferred intent
D) comparative negligence
In a(n) ________ franchise, the franchisor authorizes the franchisee to negotiate and
sell franchises on behalf of the franchisor.
A) processing plant
B) chain-style
C) area
D) distributorship
Martha draws a check payable to the order of Stella. Stella indorses the check to Karen.
But Leslie steals the check from Karen, forges Karen’s indorsement, and cashes the
check at a liquor store. When the forgery is exposed, who can the liquor store legally
recover from?
A) Martha
B) Leslie
C) Karen
D) Stella
Marlon intends to sell a piece of real estate he owns and contracts Nita, a real estate
broker, to make the sale. In the contract, Marlon authorizes Nita to make the sale at or
above a minimum price he wants and the date by which he wants the sale to be
completed. The contract also stipulates that Marlon should not hire another broker to
sell that piece of land until the expiry of the contract period. Nita finds a suitable buyer,
makes the sale in time, and is paid by Marlon for her services. What kind of contract
existed between Marlon and Nita?
A) an apparent agency contract
B) a ratified contract
C) an exclusive agency contract
D) an exclusive principal contract
A(n) ________ is a procedure whereby the parties to a legal dispute engage in
discussions to try to reach a voluntary settlement of their dispute.
A) pretrial hearing
B) arbitration
C) negotiation
D) appeal
What is the role of the WTO dispute settlement body?
A) to hear appeals on decisions made on a dispute
B) to create panel reports on the findings of the dispute
C) to hear the dispute settlement from the plaintiff
D) to review panel reports and decide whether to adopt them
________ occurs when the party knows what he or she is signing but has been
fraudulently led into the contract.
A) Fraud in the factum
B) Fraud in the inducement
C) Fraud by concealment
D) Misrepresentation of law
Which of the following real property transactions involves the use of transfer of legal
title in real property to a trustee?
A) land sales contract
B) foreclosure
C) deed of trust
D) mortgage
Sam Muller and Toby Richardson organize an LLC in the state of Delaware. In the
articles of organization, they specify the duration of the LLC as “25 years from the date
of filing the articles of organization.” Which of the following is true in this context?
A) The LLC is invalid, as it does not specify a date of termination.
B) The LLC may be dissolved at will any time after 25 years from the date of filing the
articles of organization.
C) Muller and Richardson have organized a valid term LLC.
D) Muller and Richardson have organized an at-will LLC.
If an order or other offer to buy goods requires immediate or current shipment, the offer
is accepted ________.
A) after the seller sends a written confirmation within 3 months of the contracting
B) after the buyer has reasonable opportunities to inspect the goods
C) if the seller promptly ships either conforming goods
D) if the seller reasonably notifies the buyer that the shipment is an accommodation
According to the EEOC, English-only rules adopted by employers are lawful if
________.
A) it is a business necessity
B) it is not limited to the work area
C) it does not allow the use of non-English language at all times
D) it is a cause for workplace hostility
The followers of the ________ School of jurisprudential thought are known as realists.
A) Sociological
B) Critical Legal Studies
C) Command
D) Analytical
The amended U.S. Constitution primarily focuses on ________.
A) providing all citizens with a right to vote
B) creating individual states in the country
C) protecting individual rights
D) promoting a strong economy
The term ________ refers to a defense that says a person who is injured by a defective
product but has been negligent and is partially responsible for his or her own injuries
cannot recover from the defendant.
A) contributory negligence
B) strict liability
C) partial comparative negligence
D) comparative fault
Which of the following is true of a destination contract containing a “no-arrival,
no-sale” clause?
A) The seller is required to bear the expense and risk during transportation.
B) The seller is required to replace any goods lost in transit.
C) The buyer has to pay for destroyed goods.
D) The risk of loss passes once the shipping has been arranged.
Title VII of the Civil Rights Act ________.
A) forbids religious organizations to give preference in employment to individuals of a
particular religion
B) allows assigning an employee to a noncontact position because of actual or feared
customer preference
C) permits an employer to discriminate on the basis of religion if the requested
accommodation would be costly
D) gives employees the absolute right to practice their religion at the workplace
The term ________ refers to a doctrine that states that the courts will refuse to enforce
or rescind an unlawful contract and will leave the parties where it finds them.
A) disaffirmance
B) exculpatory clause
C) emancipation
D) effect of illegality
________ is a defect that occurs when a manufacturer does not provide detailed
directions for safe assembly and use of a product.
A) Crashworthiness
B) Failure to provide adequate instructions
C) Defect in manufacture
D) Defect in design
A contract that has been fully performed on both sides is called a(n) ________ contract.
A) void
B) executed
C) executory
D) implied-in-law
Which of the following constitutional provision gives the U.S. federal government more
authority to regulate foreign affairs than state governments?
A) the Due Process Clause
B) the Equal Protection Clause
C) the Free Exercise Clause
D) the Treaty Clause
A(n) ________ fee is a lump-sum payment for the privilege of being granted a
franchise.
A) royalty
B) initial license
C) lease
D) consulting
A(n) ________ refers to a security interest in property that was not in the possession of
the debtor when the security agreement was executed.
A) floating lien
B) mortgage
C) attachment
D) future advance
A ________ is a written document signed by divorcing parties that evidences their
agreement in the division of property, rights and duties, and other issues of their
divorce.
A) settlement agreement
B) prenuptial agreement
C) decree of divorce
D) pro se divorce
Most Hindus live in ________, where they make up 80 percent of the population.
A) India
B) Burma
C) Singapore
D) Sri Lanka
A certified check must contain the ________.
A) amount being certified
B) amount in the account certification
C) amount in the account after certification
D) title of the person who owns the bank
The ________ is a federal statute that primarily regulates the issue of securities by
companies and other businesses.
A) Securities Act of 1933
B) Securities Exchange Act of 1934
C) Sarbanes-Oxley Act of 2002
D) Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
How are the shipping terms C.I.F. and F.O.B. point of shipment similar to each other?
A) Both require the seller to bear the expense and risk of loss until the goods are
tendered to the buyer at the place of destination.
B) Both require the seller to bear the expenses and risk of loss when handing the
shipment to a carrier.
C) Both require the seller to deliver and tender the goods alongside the named vessel
provided by the buyer.
D) Both require the seller to bear the expense and risk of loss until the goods are
unloaded from the ship at its port of destination.
Which of the following federal statutes was enacted by the Congress to protect trade
secrets?
A) the Economic Espionage Act
B) the Sarbanes-Oxley Act
C) the Lanham Act
D) the Telecommunication Act
Which of the following statements is true of the NAFTA?
A) Consumers in the United States, Canada, and Mexico began to pay higher prices for
goods and services after the formation of NAFTA.
B) Critics contend that NAFTA shifted Mexican jobs, particularly blue-collar jobs, to
the United States.
C) Environmentalists have appreciated the pact for preventing pollution in Mexico and
for helping the country clean up its natural environment.
D) Many economists assert that NAFTA is not a “free trade” pact but a managed trade
agreement.
How have the regulations of child custody changed over time? Is it mandatory for the
court to grant custody to either of the divorcing parents?
Describe commercial wire transfers with an example and mention the laws that govern
them.
Explain moral minimum theory with an example.
Analyze why determining the terms and conditions of an email contract is not as
straightforward as a traditional written contract.
One of the partners of an LLP commits legal malpractice. Explain the consequences the
LLP and its members would have to face if sued for the malpractice.
Discuss the difference between the Historical School of jurisprudence and the
Analytical School of jurisprudence.
What are altered checks? What are the actions that a bank can take when it encounters a
case of check alteration?
How do the liabilities of joint venturers differ based on the operating form of the
venture?
Why are general-jurisdiction trial courts often referred to as courts of record?
Is there a passage of title on the purchase of stolen goods? Explain with an example.
Explain the concept of usury laws with an example.
Discuss how the Money Laundering Control Act works.
Discuss, with an example, the circumstances under which value is given to the holder.
Explain wrongful disassociation. How does the payment of distributional interest to a
disassociating member in an at-will LLC differ from a term LLC?
Mara draws a $1,000 check on Royal Bank “payable to the order of Peyton.” Peyton
cleverly raises the check to $10,000 and indorses and negotiates the check to Nathan.
Nathan presents the check for payment to Royal Bank. Royal Bank pays the check as
altered ($10,001. and debits Mara’s account. When Mara discovers the alteration, she
demands that the bank re-credit her account, which the bank does. Who are the parties
that can recover against the wrongdoing and how?
How did the Private Securities Litigation Reform Act of 1995 change the liability of
accountants and other securities professionals?
Community property is a form of co-ownership that applies specifically to married
couples. Explain what constitutes separate property in this method of co-ownership
with the help of an example.
How does the Uniform Commercial Code regulate a contract if an agreed-upon
standard for an open price term is not available at the time of delivery of goods?
Explain the basic requirements that must be met for a contract to be enforceable.
Explain, in brief, the qualities of a certified check.