Under the North American Free Trade Agreement, a country can re-impose tariffs if an
import surge from one of the other nations hurts its economy or workers.
Under the ULLCA, the articles of organization of a limited liability company need not
set forth whether the limited liability company is to be a manager-managed LLC
A seller’s statement of opinion, or “puffing”, establishes an express warranty.
An inference of the existence of a general partnership is drawn if profits are received in
payment of wages owed to an employee.
It is possible to create an express warranty by accident and with no intent.
Contracts to purchase and sell securities are completed during the “post-effective”
period.
The United States Congress is empowered by the Commerce Clause of the United
States Constitution to enact federal statutes to regulate foreign and interstate commerce.
A holder is any person in possession of a negotiable instrument.
Most states provide civil, but not criminal, penalties for making usurious loans.
“Common” stock is an equity security that represents the residual value of the
corporation.
The North American Free Trade Agreement established a minimum wage standard for
the three signatory countries in order to protect jobs.
In a bailment, the bailee must follow the bailor’s directions concerning the goods.
Notice of a shareholders’ meeting is required to be given for both annual and special
meetings.
If the goods are rejected for nonconformance, the cost of inspection can be recovered
from the seller.
A financing statement is generally good for one nonrenewable five-year term.
Federal law requires a common carrier who limits liability to a stated dollar amount to
offer shippers the opportunity to pay a premium and declare a higher value for the
goods.
The Federal Water Pollution Control Act, as amended, is known as the Clean Water Act.
The Anticybersquatting Consumer Protection Act protects against bad faith registrations
of domain names only if the domain name is trademarked.
If a tenant transfers all of his or her interests under a lease, it is a sublease.
At common law, contracts in restraint of trade are deemed unlawful.
Revocation of acceptance must occur before there is any substantial change in the
condition of the goods.
Only a company making an untrue statement about another company can commit
disparagement.
The Fair Labor Standards Act is “pro-employer,” since it allows employers to establish
reasonable productivity standards, or “benchmarks,” for employees.
Under the entrustment rule, a merchant can transfer title in goods to a buyer in the
ordinary course of business.
Corporate shares are freely transferable by a shareholder by sale, assignment, pledge, or
gift unless they are issued pursuant to certain exemptions from securities regulation.
Juries may infer an accused’s intent from the facts and circumstances of the case.
Only the Interstate Commerce Commission can obtain an injunction under the FTC Act.
A counteroffer terminates the existing offer.
The implied contract of social contract theory states “I will keep the rules if everyone
else does.”
After the patent period runs out, the invention or design enters the public domain.
General-jurisdiction trial courts are often referred to as courts of ________.
A) substance
B) appeal
C) review
D) record
E) equity
Which of the following statements is true about acceptance of goods and the revocation
of that acceptance?
A) In order to reject nonconforming goods, the nonconformity must be one that
substantially impairs the value of the goods to the buyer.
B) An acceptance of goods can be revoked in any circumstance where the goods could
have been rejected initially.
C) Goods can be rejected in more circumstances than those where an acceptance of
goods can be revoked.
D) If the buyer actually saw and inspected the goods prior to acceptance, the acceptance
of those goods cannot be revoked.
E) Once there has been an acceptance of goods, that acceptance can be revoked only
with the consent of the seller.
Can transfer warranties be disclaimed?
A) no, they cannot be disclaimed for any negotiable instruments
B) yes, they can be disclaimed for any negotiable instruments
C) yes, they can be disclaimed, but only by holders in due course
D) yes, they can be disclaimed, but only for bearer instruments
E) yes, they can be disclaimed, but only for instruments other than checks
After the copyright period expires, the work enters the ________, which means that
anyone can publish the word without paying the prior copyright holder.
A) private vernacular
B) private domain
C) public domain
D) public vernacular
E) public arena
Is there a private right of action under Section 10b-5 of the Securities Exchange act of
1934?
A) yes, the Act expressly provides for a private right of action
B) no, there is no such right under the Act
C) There is a private cause of action, but only if consent to sue is issued by the
Securities and Exchange Commission.
D) There is no express private right of action, but courts have implied one.
E) yes, but only injunctions, not money damages, may be sought
The Consumer Leasing Act (CLA) replaces the Truth in Lending Act’s coverage of lease
terms in consumer leases.
A federal government agency is planning to build a dam in Maine. The land where the
dam will be located, and the area that will be under the lake to be formed, is currently
all privately owned. Which of the following correctly describes the requirement for an
environmental impact statement?
A) An environmental impact statement is not required, because the land is
privately-owned.
B) An environmental impact statement is required, but only if the land will become
federal land before the dam is built.
C) An environmental impact statement is required, but only if any of the land affected is
classified as “wetland.”
D) An environmental impact statement is required, because it is the federal government
that is undertaking this project.
E) An environmental impact statement is required, unless the Environmental Protection
Agency grants a waiver.
Which of the following is true regarding the Sarbanes-Oxley Act?
A) The Sarbanes-Oxley Act was repealed after the onslaught of corporate scandals in
the 2000s.
B) The Sarbanes-Oxley Act applies only to law firms, requiring that they act ethically.
C) The Sarbanes-Oxley Act applies only to accounting firms, requiring that they act
ethically.
D) The Sarbanes-Oxley Act requires that public companies disclose whether a code of
ethics has been adopted for senior financial officers, including its principal financial
officer and principal accounting officer.
E) The Sarbarnes-Oxley Act applies only to private companies, requiring them to adapt
a Code of Ethics.
Which of the following statements is correct regarding anti-delegation clauses?
A) Anti-delegation clauses are usually enforced.
B) Anti-delegation clauses are usually enforced in equity, rather than by law.
C) Anti-delegation clauses are not enforceable.
D) Anti-delegation clauses are not enforceable if they pertain to contracts for
“blue-collar” services.
E) Anti-delegation clauses are not enforceable if they pertain to contracts for
professional services.
How many states base their legal systems primarily on the English common law?
A) 37
B) 41
C) 42
D) 46
E) 49
The Economic Espionage Act (EEA) makes it a state crime to steal another’s trade
secrets.
If a minor buys an item and then disaffirms the contract, and a court orders the minor to
merely return the item in its present condition in order to get a refund, this minor has
the duty of:
A) restoration.
B) resuscitation.
C) revocation.
D) restitution.
E) quasi-payment.
What does the Uniform Gift to Minors Act provide for?
A) the mandatory method for making gifts to minors revocable
B) the procedures that a minor follows in order to reject an unwanted gift
C) a way for an adult to have some control over the use of a gift made to a minor
D) the rights of siblings to receive reasonably-similar gifts when parents make gifts to
their children
E) the procedures that a minor must follow upon receipt of any gift
Substantive due process requires that:
A) a notice and hearing be given before one is deprived of life, liberty or property.
B) a criminal defendant have an attorney present at all times.
C) a law treat all persons the same.
D) government statutes, ordinances and regulations be clear and not overly broad.
E) a defendant not be tried twice for the same crime
What is the effect of a promissory note containing a conditional promise?
A) The note is void.
B) The note is voidable.
C) The note is enforceable even though it is nonnegotiable.
D) The note becomes negotiable once the condition is met.
E) The note is negotiable even though the promise is conditional.
An accused person must be formally charged with a crime before he or she can be
brought to trial. This is usually done through the issuance of a ________.
A) grand jury indictment
B) declaratory judgment
C) magistrate’s information statement
D) grand jury indictment or a declaratory judgment
E) grand jury indictment or a magistrate’s information statement
John needs a new car and goes to the local dealer for Worldwide Motors, a global car
manufacturer. John negotiates a deal with the local dealer to buy a new midsize model,
the Albatross, for $22,000. The dealer cost on this car is $19,000. John then decided
against the Albatross and breached the contract. John had not yet made any payment to
the dealer. Later the dealer then sold this car to another customer for $21,600. The
dealer also incurred $200 in costs connected with John’s canceled order. Assuming that
the dealer can get as many Albatrosses as it wants, how much can it recover in damages
from John?
A) $400
B) $600
C) $3,000
D) $3,200
E) $2,600
Which of the following statements is correct regarding assignment of the provisions of
personal services?
A) Contracts for the provision of personal services are generally assignable.
B) Contracts for the provision of personal services are conditionally assignable.
C) Contracts for the provision of personal services are assignable in equity.
D) Contracts for the provision of personal services are assignable, provided the contract
partially involves the sale of goods.
E) Contracts for the provision of personal services are generally not assignable.
Which of the following need not be included in a limited liability company’s articles of
organization?
A) the address of the LLC’s initial office
B) the name and address of the initial agent for service of process
C) the business purpose(s) of the LLC
D) the name and address of each organizer
E) whether the LLC is to be a manager-managed LLC
A board of directors acts by adopting ________.
A) proclamations
B) declarations
C) decrees
D) resolutions
E) minutes
Allowing for the settlement of cases prior to trial is an example of which function of the
law?
A) keeping the peace
B) shaping moral standards
C) facilitating planning
D) providing a basis for compromise
E) maximizing individual freedom
Which of the following is true?
A) All banks must process all checks through the Federal Reserve System.
B) All banks must process all “on them” checks through the Federal Reserve System.
C) The Federal Reserve System includes at least one regional bank in each state.
D) The Federal Reserve System is not permitted to charge a fee for is processing
services.
E) Some banks use private clearinghouses, instead of the Federal Reserve System, to
process checks.
What type of information need not be disclosed in a Uniform Franchise Offering
Circular?
A) a description of the franchisor’s business
B) balance sheets of the franchisor for the preceding three (3.) years
C) income statements of the franchisor for the preceding three (3.) years
D) non-material terms of the franchise agreement
E) any restrictions on the franchisee’s territory
Which of the following is one of the primary types of contractual conditions?
A) collateral
B) conjectural
C) concurrent
D) determinative
E) antecedent
If there is an area of interstate commerce that the federal government has chosen not to
regulate, the states can:
A) regulate without restriction in that area.
B) regulate in that area so long as the state law does not unduly burden interstate
commerce.
C) regulate in that area so long as it first gets the requisite approval from Congress.
D) not regulate in that area because states cannot pass laws affecting interstate
commerce.
E) not regulate in that area, because the federal government’s decision to not regulate in
an area implies that there is to be no regulation in that area at any level.
Which of the following is not an essential element in proving that a director or officer
has usurped a corporate opportunity?
A) The opportunity was presented to the director or officer in his or her corporate
capacity.
B) The opportunity is related to or connected with the corporation’s current or proposed
business.
C) The corporation has the financial ability to take advantage of the opportunity.
D) The corporate officer or director took the corporate opportunity for himself or
herself.
E) The opportunity will, in all reasonable likelihood, be a profitable endeavor, and the
corporate officer or director is aware of the favorable probability.
The Raging Waves Rafting Company takes tourists on half-day whitewater rafting trips
in the Colorado mountains. All patrons sign an agreement that states in part that,
“Raging Waves will not be liable for any injuries whatsoever cause by Raging Waves,
whether caused intentionally, by negligence, or in any other manner.” During the first
hour, the guide negligently allowed the raft to hit a large rock, causing Heather to fall
out of the raft and injure her arm when she crashed into this rock. Later on the trip, as
Heather was criticizing the guide for the earlier incident, the guide got upset and hit her
on the back with a paddle. This injured Heather’s back. Assuming that the rafting
company is responsible for the actions of its employees, can Heather recover for the
injuries to her arm and back?
A) She can recover for neither injury because of the exculpatory clause.
B) She can recover for the back injury, but not for the injury to her arm.
C) She can recover for the arm injury, but not for the injury to her back.
D) She can recover for both injuries because the exculpatory clause is against public
policy.
E) She can recover only if she can show that there had been no prior accidents about
which she should have been aware to put her on notice of danger.
The World Bank is headquartered in:
A) New York, New York.
B) Washington, D.C.
C) San Francisco, California.
D) London, England.
E) Zurich, Switzerland.
In a unilateral contract:
A) the offeror wants the performance of an act as acceptance of his or her offer.
B) the offeror cannot revoke the offer once the offeree has begun performance or has
substantially completed performance of the act.
C) the offeror will treat either a promise to perform or the actual performance of the act
as acceptance of his or her offer.
D) the offeror wants the performance of an act as acceptance of his or her offer, and the
offeror cannot revoke the offer once the offeree has begun performance or has
substantially completed performance of the act.
E) the offeror cannot revoke the offer once the offeree has begun performance or has
substantially completed performance of the act, and the offeror will treat either a
promise to perform or the actual performance of the act as acceptance of his or her
offer.
________ has the largest trading volume of any securities exchange in the world.
A) The New York Stock Exchange
B) The Chicago Board of Exchange
C) The Philadelphia Board of Exchange
D) NASDAQ
E) ANSQAD
“Evil intent” is known as ________.
A) actus reus
B) mens rea
C) actus prohibita
D) actus rea
E) mens reus