Counteroffers against electronic agents that do not have the ability to evaluate the offer
cannot be enforced.
In civil cases, the jury will assess damages against the defendant if they have decided in
favor of the plaintiff.
Exculpatory clauses are mandatorily reciprocal.
A finder of lost property obtains title to the property against the whole world except the
true owner.
A tender offer is an offer that an acquirer makes directly to a target corporation’s
shareholders in an effort to acquire the target corporation.
A joint venture is an arrangement in which two or more business entities combine their
resources to pursue a single project or transaction.
A bankruptcy trustee is a legal representative of the debtor’s estate.
The term “respondeat superior” means “buyer beware.”
In a share exchange between two companies, one company loses its legal existence.
A contract that is based on sexual favors is an immoral contract and void as against
public policy.
The UCITA was drafted to address the problems of enforcing e-commerce contracts and
providing consumer protection.
Embezzlement involves fraudulently altering a written document that affects the legal
liability of another person.
A party to whom a tenant transfers rights under a lease is an assignee.
State administrative agencies are empowered to enforce state statutes.
The Natural Law School of jurisprudence believes that law is an aggregate of social
traditions and customs.
A forged signature is wholly inoperative as the signature of the drawer.
The agreement to form a general partnership must always be in writing.
The Uniform Franchise Offering Circular refers to a uniform disclosure document that
requires a franchisee to make specific presale disclosures to prospective franchisors.
If a victim and harasser are of the same sex, the harassment does not violate Title VII.
An implied-in-fact condition exists if the parties expressly agree on it.
Stock dividends are a distribution of corporate assets.
According to the Restatement (Second) of Contracts: “A contract is a promise or a set of
promises for the breach of which the law gives a remedy or the performance of which
the law in some way recognizes a duty.”
A lawyer cannot testify against his client due to attorney-client privilege.
The purchase by a target corporation of its stock from an actual or perceived tender
offeror at a premium is defined as a poison pill.
Only nations, not individuals or businesses, can have cases decided by the International
Court of Justice.
An environmental impact statement (EIS) cannot be challenged in court by
environmentalists and other interested parties.
Statements of opinion or predictions about the future generally form the basis for fraud.
The median income test and the means test are used to determine whether a debtor
qualifies to obtain a discharge of debts under Chapter 7.
An indictment is a formal charge issued by a grand jury before a person can be brought
to trial.
In applying the objective theory of contracts, the pertinent question to ask is: “Would a
hypothetical reasonable person conclude that the parties intended to create a contract
after considering the words and conduct of the parties and the surrounding
circumstances?”
The police have the right to perform warrantless arrests when a judge turns down the
request for an arrest warrant.
The death, insanity, or bankruptcy of a shareholder, a director, or an officer dissolves a
corporation.
Which of the following is true of an unregistered mark?
A) It is given a nationwide effect by the U.S. Patent and Trademark Office.
B) It provides that federal lawsuits may be brought to protect the mark.
C) It serves as constructive notice that the mark is the registrant’s personal property.
D) It is accompanied by the TM or SM symbol until it is registered.
Which of the following best describes a warehouse receipt?
A) A receipt received by a warehouse after the bailor has retrieved the bailed goods and
payment has been made.
B) A document of title issued by a warehouse company stating that the bailor has title to
the bailed goods.
C) An inventory list provided to the warehouse company by the bailor for the bailed
goods.
D) A certificate of authenticity issued to a warehouse stating that it is certified to hold
goods.
Reversibility is a principle of Kantian ethics which says that ________.
A) a person must be allowed to reverse his moral judgment to better suit his needs
B) a person must treat all moral circumstances as one
C) a person must be allowed to selectively choose moral judgments based on the
circumstances
D) a person must abide by the rule he or she uses to judge the morality of someone
else’s conduct
Which of the following is true of tort liability of a general partnership?
A) Only the partner who committed the tort is liable.
B) Partners who have not committed the tort but had to pay liability cannot indemnify
from the partner that committed the tort.
C) A partner can be sued even if he or she did not participate in the commission of the
tort.
D) If one of the partners in the partnership is released, the other partners are discharged
of liability.
Under the ________ of the Constitution, treaties become part of the “law of the land,”
and conflicting state or local law is void.
A) Establishment Clause
B) Treaty Clause
C) Supremacy Clause
D) Due Process Clause
Which of the following is an example of exempt securities?
A) stock dividends and stock splits
B) IPOs made by multinational corporations
C) securities that have been held by a single investor for longer than a year
D) securities worth $1 million or more
Which of the following is true of the bankruptcy procedure?
A) A driven petition is a petition filed by a debtor that states that he or she has debts.
B) A debtor must receive prepetition credit counseling within 180 days prior to filing
his or her petition for bankruptcy.
C) A voluntary petition is filed by creditors of a debtor, alleging that the debtor is not
paying his or her debts as they become due.
D) A complaint is a document filed with a bankruptcy court that starts a bankruptcy
proceeding.
Which of the following does the Money Laundering Act prohibit?
A) the fraudulent conversion of property by a person to whom that property was
entrusted
B) obtaining property from another, with his or her consent, induced by wrongful use of
actual or threatened force
C) the use of mails or wires to defraud another person
D) knowingly engaging in a financial transaction involving the proceeds of an unlawful
activity
Which of the following moral theories matches the dictum “I will keep the rules if
everyone else does”?
A) perspectivism
B) social contract
C) moral relativism
D) utilitarianism
Which of the following is true of a finance lease?
A) It involves leasing out money to a lessee.
B) The lessor is the supplier of goods.
C) It consists of a lessor, a lessee, and a supplier.
D) The lessee acquires the title of the goods.
Which of the following is a difference between an international branch office of a
corporation and an international subsidiary of the corporation?
A) The branch office is a separate legal entity from the corporation, while the subsidiary
does not have such a legal existence.
B) The branch office has a liability shield between itself and the corporation, while the
subsidiary does not possess such a shield.
C) The corporation is liable for the contracts of the branch office, while it is not liable
for contracts of the subsidiary.
D) The corporation is not liable for the torts committed by the branch office, while it is
liable for torts committed by the subsidiary.
Jennifer signs a promissory note to pay $2,500 to Clara. Clara negotiates the instrument
and indorses it to Anthony. Anthony alters the note to make the payment amount
$25,000 and negotiates the note to Nicholas. Nicholas indorses the note and negotiates
it to Mack. Nicholas and Mack are both unaware of the alteration done by Anthony. At
this point, who has primary liability over the note?
A) Nicholas
B) Anthony
C) Clara
D) Jennifer
A ________ is a long-term unsecured debt instrument that is based on a corporation’s
general credit standing.
A) debenture
B) bond
C) note
D) treasury share
In a litigation process, the party who files a complaint is called the ________.
A) bailiff
B) plaintiff
C) prosecutor
D) defendant
Which of the following is a universal defense?
A) fraud in inducement
B) breach of contract
C) material alteration
D) ordinary duress
The agency of power of attorney is an example of an ________ agreement.
A) agency by ratification
B) apparent agency
C) express agency
D) implied agency
When Sheila is 16 years old (a minor), she enters into a contract to purchase an
automobile costing $20,000 from Brian, a competent adult. Brian asks for verification
of her age, and Sheila promptly provides him a fake driving license in which her age is
misrepresented. Brian delivers ownership of the automobile to Sheila after he receives
the payment of $20,000. Subsequently, before Sheila reaches the age of 18 (the age of
majority), she is involved in an automobile accident caused by her own negligence. The
automobile sustains $7,000 worth of damage in the accident (the automobile is now
only worth $13,00. If Sheila disaffirms the contract and returns the damaged vehicle to
Brian, he has to pay her ________.
A) $20,000
B) $10,000
C) $7,000
D) $13,000
Which of the following statements is true of the plaintiff’s case?
A) The plaintiff’s attorney examines the witnesses during cross-examination.
B) After the defendant’s attorney examines the witnesses the plaintiff can conduct the
re-direct examination.
C) During cross-examination, the defendant’s attorney can ask questions only about the
subjects that were brought up during the direct examination.
D) Documents and other evidence have to be introduced before the first witness is
subject to direct examination.
Which of the following is true of unsecured credit?
A) It relies on the debtor’s promise to repay the principal.
B) It is protected by collateral for the repayment of debt.
C) It has no interest charge on the principal amount.
D) It is possible to reclaim the amount even if the debtor is judgment proof.
A(n) ________ is an estate in which the owner has a present possessory interest in the
real property.
A) estate pour autre vie
B) freehold estate
C) future interest
D) easement
A ________ is the obligation partners owe to use the same level of caution and skill that
a reasonable person in the same position would use in the same circumstances.
A) call for action
B) duty of care
C) duty to inform
D) duty of obedience
Harold borrows $20,000 from Alex and signs a note promising to pay Alex this amount
plus interest in one year. Alex negotiates the note to Reese, an HDC. Before the note is
due, Harold declares bankruptcy and the court finds it to be true. According to the
discharge in bankruptcy defense, which of the following is true in this scenario?
A) Reese can recover from Harold.
B) Reese can recover from Alex.
C) Alex can recover from Harold.
D) Reese cannot enforce the instrument.
The IMF is funded by ________.
A) monetary contributions of member nations
B) private donations from nonprofit organizations
C) the World Bank
D) the United Nations
________ is a provision of the Securities Exchange Act of 1934 that prohibits the use of
manipulative and deceptive devices in the purchase or sale of securities in
contravention of the rules and regulations prescribed by the SEC.
A) Section 10(b)
B) Section 10(a)
C) Section 32
D) Section 30
In a destination contract, when is the title to the goods considered to have passed to the
buyer?
A) when the seller specifies a specific destination in the sales contract
B) when the seller tenders delivery of the goods at the specified destination
C) when the seller makes the shipping arrangements
D) when the seller hands over the goods to the common carrier
When a person enters into a contract with the intent to confer a gift to an intended third
party, the contract is called a ________ contract.
A) substituted
B) delegated
C) donee beneficiary
D) novation
The Americans with Disabilities Act does not consider ________ as a disability to be
considered for employment qualification.
A) common influenza
B) blindness
C) muscular dystrophy
D) autism
Jessica wants to buy a laptop from the Tenn Computers’ website. Before confirming the
purchase, the website asks her to provide biometric identification using an electronic
scanner. This is an example of ________.
A) e-licensing
B) an e-signature
C) an exclusive license
D) cybersquatting
________ is a duty owed by a member of a member-managed LLC and a manager of a
manager-managed LLC not to engage in a known violation of law, intentional conduct,
reckless conduct, or grossly negligent conduct that injures the LLC.
A) Duty of discharge
B) Duty of restitution
C) Duty of loyalty
D) Duty of care
________ damages are foreseeable damages that arise from circumstances outside a
contract.
A) Compensatory
B) Consequential
C) Nominal
D) Liquidated
The party who grants a license is known as the ________.
A) licensee
B) licensor
C) grantee
D) grantor
How does the E-SIGN Act recognize electronic contracts as equivalent to written
contracts?
How does the Sarbanes-Oxley Act separate the investment banking and securities
advice functions of securities firms?
Analyze Natural Law School of jurisprudential thought with an example.
Discuss an accountant’s liability to third parties in fraud cases with an example.
What is the importance of Miranda rights against self-incrimination?
Compare valid, void, voidable, and unenforceable contracts.
Discuss the major criticism against ethical fundamentalism.
Explain corporate citizenship with an example.
What is certificate of deposit (CD)? Discuss the different types of CDs and the parties
involved in a CD.
Explain the purpose and the legal implications of the Good Samaritan laws.
When can an appeal be made? Discuss its consequences.
Compare defects of failure to warn and failure to provide adequate instructions with
regard to strict liability.
Explain the circumstances under which a company triggers public reporting
requirements to the Securities and Exchange Commission (SEC).
How does the Uniform Commercial Code hold a contract with undetermined terms
enforceable? Provide examples.
On July 1, Seidel Motors, an automobile dealer offers to sell a luxury vehicle to Janet
for $50,000. Seidel signs a written assurance to keep the contract open till July 30. A
week later Seidel sells the car to another buyer. On July 30, Janet tenders $50,000 for
the car. There has been a breach of contract. Compare and contrast Seidel’s liability to
Janet under the common law of contracts and firm offer rule.
Explain how the JOBS Act favors non-reporting organizations in selling securities.
Define duty of loyalty and its connection with the business judgment rule.