Which of the following categories of individuals are exempt from the minimum wage
provisions of Fair Labor Standards Act (FLSA)?
a. executives
b. factory workers
c. full-time babysitters
d. housekeepers
The standard for commercial impracticability is:
a. hypothetical.
b. conjectural.
c. objective.
d. subjective.
A limited partnership can be formed by one (1) or more __________ partners and one
(1) or more __________ partners.
a. unreserved; reserved
b. active; silent
c. licensed; unlicensed
d. general; limited
An agreement to slander a third person would not be enforceable because slander is
a(n):
a. crime.
b. civil wrong.
c. infringement of privacy.
d. assault.
When a partner disassociates with a partnership:
a. the partnership is no longer bound by acts of that partner, whether or not a notice is
filed.
b. the disassociated partner is prohibited from competing with the partnership for a
period of one year.
c. the disassociated partner may be liable for damages for breach of contract.
d. none of the above.
A warehouser that holds itself out to serve the public generally without discrimination is
called a(n):
a. public warehouser.
b. general warehouser.
c. nondiscriminatory warehouser.
d. ordinary warehouser.
Which of the following is not an example of incidental damages recoverable by a
seller?
a. expenses for the care of the goods after the buyer’s breach
b. expenses for transportation of the goods after the buyer’s breach
c. expenses for resale of the goods after the buyer’s breach
d. expenses for the attorney’s fees after the buyer’s breach
An agent acting under a power of attorney is referred to as an:
a. implied attorney.
b. attorney in fact.
c. implied agent.
d. attorney at law.
Some states have rejected the requirement of privity but not adopted any set rule.
Instead, these states function under the __________ rule.
a. known user
b. contact
c. flexible
d. foreseeable user
Bribery is defined as:
a. giving money, property, or any benefit to a person to influence that person’s
judgment.
b. using one’s position as a public official to make an illegal demand.
c. using one’s position as a nonpublic official to make an illegal demand.
d. exerting improper political influence.
A will may be contested on grounds of:
a. lack of mental capacity of the testator.
b. undue influence, duress, or mistake.
c. forgery.
d. all of the above.
When the drawee of a draft has indicated by writing or record a willingness to pay the
amount specified in the draft the drawee is called a(n):
a. acceptor.
b. accommodation party.
c. payee.
d. secondary obligator.
Which form of business entity was created primarily to shield innocent owners,
particularly those in professions, from malpractice liability generated from other owners
in the firm?
a. the limited partnership
b. the limited liability partnership
c. the limited liability company
d. none of the above
The legislative branch of government has the function of:
a. making laws.
b. executing the laws.
c. interpreting the laws.
d. all of the above.
If the trustee breaches the trust, which of the following remedies might be available?
a. a money judgment
b. an injunction
c. a criminal prosecution
d. all of the above
A tenancy for an indefinite time period that may be terminated at any time by landlord
or tenant is called a tenancy:
a. at will.
b. for years.
c. at sufferance.
d. from year to year.
Consumer protection statutes are identical in all fifty states and the District of
Columbia.
In most instances, the mere fact that a sale was made gives rise to a(n):
a. express warranty.
b. limited warranty.
c. implied warranty.
d. full warranty.
Title VII protects members of which racial grouping(s)?
a. black only
b. black, Native American, and Asian-Pacific
c. white only
d. all racial groupings
__________ represents a pattern of performance between the parties to a contract.
a. Course of dealing
b. Usage of trade
c. Course of trade
d. Usage of dealing
Laws that prohibit defamation, invasions of privacy, and reputation exist primarily:
a. for protection of the person.
b. for protection of public health, safety, and morals.
c. for protection of property.
d. for protection of the state.
An executory contract is:
a. void if neither party has performed.
b. voidable.
c. entered into but not fully performed.
d. always unilateral in nature.
Which of the following is not an element of an accord and satisfaction?
a. a bona fide dispute
b. a proposal to settle the dispute
c. performance of the agreement to settle the dispute
d. reservation of rights under the federal Consumer Credit Protection Act
Design patents have a duration of ____ years.
a. 10
b. 14
c. 17
d. 20
An automatic stay:
a. arises only upon the filing of a voluntary petition.
b. prevents any further interest from accruing on a debtor’s outstanding debts.
c. prevents creditors from taking action outside of the bankruptcy proceeding against a
debtor.
d. ends if a debtor attempts to incur additional debt after a petition has been filed.
In order for a trust to be created, who must be able to hold legal title?
a. the beneficiary only
b. the trustee only
c. either the beneficiary or the trustee
d. both the beneficiary and the trustee
A right is defined as:
a. an obligation of law imposed to perform an act.
b. a legal capacity to require another party to perform an action.
c. any written promise.
d. none of the above.
A right of __________ refusal is the right of a party to meet the terms of a proposed
contract before it is executed, such as a real estate purchase agreement.
a. concomitant
b. conditional
c. formal
d. first
A covenant that passes with the land so that whoever owns the land is bound by or
entitled to the benefit of the covenant
a. is a covenant of seisin.
b. is a covenant of further assurances.
c. is a covenant of quiet enjoyment.
d. is said to run with the land.
The Internet Tax Freedom Act (ITFA) prohibits companies from charging sales tax on
Internet transactions.
The Securities Act of 1933 imposes civil liability for making false or misleading
statements in a registration statement.
Protection for trade dress is available under the Lanham Act.
A bailment is a special form of sale in which possession is transferred to a bailee.
The president of a business corporation does not have implied authority to execute
commercial paper in the name of the corporation.
A de facto corporation is not accorded legal recognition due to some recognized defect
in its incorporation.
A person who has drunk too much alcohol at a party and signs a contract may be able to
rescind that contract.
Predatory lending is a practice on the part of the subprime lending market whereby
lenders take advantage of less sophisticated consumers or those who are desperate for
funds by using the lenders’ superior bargaining positions to obtain credit terms that go
well beyond compensating them for their risk.
A special agent is authorized by the principal to transact all affairs in connection with a
particular type of business or trade or to transact all business at a certain place.
A person who has a right to buy on credit can transfer that right to a close relative.
The private life of a nonpublic citizen is subject to public scrutiny.
Economic duress, in the form of a reluctance to enter into a financially demanding
instrument, is a universal defense.
If the offeree purports to accept an offer but in so doing makes any change to the terms
of the offer, such action is a counteroffer that rejects the original offer.
A payee or indorsee whose name is misspelled may indorse the wrong name, the correct
name, or both.
Transfer or possession and use of bailed property without compensation is a gratuitous
bailment.
John Harrington operates a business that almost always hires skilled workers who are
college graduates; currently, however, his business does have a part-time opening for an
unskilled worker. Harrington is considering hiring an uneducated welfare recipient
instead of a student from the local university. Apply the “Guidelines for Analyzing a
Contemplated Action” to this problem.
Unlisted companies that have assets less than $10 million and fewer than 500
shareholders are subject to the reporting requirements of the Securities Exchange Act of
1934.