The price and terms of the distributional interest of a disassociating member is decided
by federal LLC law.
In a relationship that is created when a customer deposits money into the bank, the
customer is the debtor.
A plaintiff who has not suffered injury because of price discrimination cannot recover
damages under Section 2 the Clayton Act.
A third party can be sued for intentional interference in spite of him or her having no
knowledge of an existing contract between two parties.
Usury laws are intended to protect unsophisticated borrowers from loan sharks and
others who charge exorbitant rates of interest.
The agent’s liability under the going and coming rule is based on the logic that
principals do not control where their agents and employees live.
In a sale or return contract, a buyer is only allowed to sell the goods within a stated
period of time.
Employers’ unfavorable treatment toward people associated with a person of certain
color is not a violation of Title VII.
In an intentional interference with contractual relations, a third party can contract with a
breaching party without becoming liable for this tort if a contracting party has already
breached the contract.
An event for which a defendant is not responsible is called a foreseeable event.
All the members of an audit committee must be financial experts by either education or
experience.
General partnerships are liable to pay federal income taxes.
The Insider Trading Sanctions Act is a federal statute that permits the SEC to obtain a
civil penalty of up to ten times the illegal benefits received from insider trading.
Under the corporate citizenship theory of social responsibility, corporations owe a duty
to subsidize schools and help educate children.
Noncarrier cases are covered by the Uniform Commercial Code (UCC) under two
different types of contracts: shipment contract and destination contract.
Irrespective of the form of delegation, a delegator remains legally liable for the
performance of the contract.
Agency relationships are formed by the mutual consent of a principal and an agent.
Digital signatures can be used to identify an individual.
The Clean Air Act authorizes the EPA to regulate air pollution caused by fuel and fuel
additives.
Contract disputes cannot be heard or decided upon by any nonjudicial process.
Civil liability under Section 11 is imposed on those who intentionally defraud investors.
An offer terminates if the subject matter of the offer is destroyed through the fault of
either party after the offer’s acceptance.
Although the Environmental Protection Agency establishes air quality standards, the
states are responsible for their enforcement.
If an agency is an exclusive agency, the principal can employ more than one agent to try
to accomplish a stated purpose.
The Do-Not-Call Registry is considered unconstitutional as it restricts commercial
speech.
According to the social contract theory, moral rules are used to solve conflicting
interests in society.
Any passage of an instrument other than its issuance and presentment for payment is
considered a transfer.
If a class of creditors does not accept a Chapter 11 plan of reorganization, the
bankruptcy court can confirm it by using the cram-down provision.
The judicial branch of the federal government has the power to interpret and determine
the validity of the law.
A quitclaim deed is exclusively used as a deed from a seller to a buyer.
Which of the following is true of capital contribution to an LLC?
A) Capital contribution can only be in the form of money or tangible property.
B) Promissory notes are not considered capital contribution.
C) A member’s obligation to contribute capital is excused by the member’s disability or
other inability to perform.
D) A member’s obligation to contribute capital is not excused by the member’s death.
A(n) ________ is an equitable doctrine that permits enforcement of oral contracts that
should have been in writing.
A) parol evidence
B) promissory estoppel
C) equitable exception
D) part performance
Which of the following is a similarity between real and personal property?
A) both properties can include intangible properties
B) both properties are movable properties
C) both properties can be owned concurrently by two or more persons
D) both properties can be removed by a seller prior to a sale of the property
Which of the following is true for the passage of title in a contract requiring a document
of title?
A) The title passes when the shipping arrangements are made.
B) The title passes at the time and place of contracting.
C) The title passes when the destination of delivery is first mentioned in the contract.
D) The title passes when and where the seller delivers the document to the buyer.
Which of the following statements is true of a company that receives an opinion other
than an unqualified opinion after an audit?
A) It will find it difficult to obtain loans from banks.
B) It will be able to sell its securities to the public quite easily.
C) It must perform another audit to verify the original opinion.
D) It will not be permitted to continue its business transactions.
Is it mandatory for employers to accommodate disabled employees? Explain the factors
under which employers who do not make accommodations are not in violation of the
Americans with Disabilities Act (ADA).
Law is described as ________.
A) a body of rules of action or conduct prescribed by controlling authority, and having
binding legal force
B) a study of fundamental problems, such as those connected with existence,
knowledge and language
C) a system that builds and organizes knowledge in the form of testable explanations
and predictions
D) a group of hypotheses employed to explain a phenomenon
________ is a business arrangement that occurs when the owner of intellectual property
contracts to permit another party to use the intellectual property.
A) General partnership
B) Leasing
C) Licensing
D) Joint venturing
Using a sexually explicit picture or screensaver to mock an employee constitutes
________.
A) gender discrimination
B) quid pro quo sex discrimination
C) sexual harassment
D) physical abuse
Which of the following is true of the Uniform Commercial Code (UCC)?
A) The UCC has never been amended since it was first drafted.
B) The UCC is not considered as law, but rather as a guide to lawyers and judges.
C) The provisions of the UCC normally take precedence over the common law of
contracts.
D) The UCC has been adopted in its entirety by all states.
Which of the following is true of code books?
A) They are federal statutes organized by topic.
B) They are the list of executive orders issued by the President.
C) They are the treaties signed with other countries organized by topic.
D) They are commercial laws organized by chronology of enactment.
Calvin, a college student, wants to purchase an automobile on credit from Irontilt
Motors. He does not have sufficient income or the credit history to justify the extension
of credit to him alone. Calvin asks his father to cosign a note to Irontilt Motors, which
his father agrees to. What role does Calvin’s father fulfill here so that Calvin can buy
the car?
A) an accommodation party
B) an agent
C) a principal
D) a qualified indorser
A jury that cannot come to a unanimous decision about the defendant’s guilt is called a
________.
A) open jury
B) grand jury
C) hung jury
D) struck jury
Which of the following is not actionable as fraud?
A) misrepresentation of law
B) silence as misrepresentation
C) marriage to obtain rights of immigration
D) identity theft
The ________ prohibits the government from promoting one religion over another.
A) Due Process Clause
B) Privileges Clause
C) Establishment Clause
D) Free Exercise Clause
The ________ is a defense that can be raised even if the merger would otherwise
violate Section 7 of the Clayton Act.
A) small company doctrine
B) Noerr doctrine
C) conscious parallelism doctrine
D) Colgate doctrine
In terms of copyright law, the use of copyrighted material in a satire or parody would be
an example of ________.
A) copyright infringement
B) application of fair use doctrine
C) piracy
D) application of public use doctrine
Which of the following is true about contract liability of general partners?
A) General partners have limited liability for contracts of the partnership.
B) A third party who sues to recover on a partnership contract or debt need not name all
the general partners.
C) Releasing a general partner from a lawsuit does not necessarily release all the other
partners.
D) A general partner can seek indemnification from the partnership and from those
partners who have not paid their share of the loss.
A(n) ________ refers to a written document signed by a shareholder that authorizes
another person to vote on the shareholder’s shares.
A) proxy
B) implied warranty
C) tacit contract
D) verdict
________ occurs when an employer does not discriminate against a class as a whole but
treats a subset of the class differently.
A) Quid pro quo sex discrimination
B) Gender identity discrimination
C) Disparate-impact discrimination
D) Sex-plus discrimination
A merger between two or more companies that compete in the same business and
geographical market is known as a ________.
A) horizontal merger
B) vertical merger
C) market extension merger
D) conglomerate merger
Which of the following statements is true about a notice of termination?
A) A principal is under an obligation to give a notice of termination to strangers who
have no knowledge of the agency.
B) Constructive notice is valid against strangers who assert claims of apparent agency.
C) Constructive notice of termination has to be provided to all persons with whom the
agent dealt.
D) Direct notice of termination has to be provided to any third party who has
knowledge of the agency but with whom the agent has not dealt.
A shareholder’s ________ liability means that they are liable for the debts and
obligations of the corporation only to the extent of their capital contribution.
A) limited
B) product
C) manufacturer’s
D) vicarious
One student actor wins a part in a play over another student actor. To get back at the
winning student, the rejected student files a lawsuit against the winning student alleging
intentional infliction of emotional distress, defamation, and negligence. The jury returns
a verdict exonerating the defendant. The defendant is now entitled to sue the plaintiff
for ________.
A) tort of outrage
B) malicious prosecution
C) intentional misrepresentation
D) negligence
Noam, Amar, and Jonas, all doctors, form an LLP. A patient being treated by the LLP
passes away due to negligence from Dr. Jonas. The LLP is sued for $5 million by the
patient’s relatives. Which of the following is true of the given situation?
A) Dr. Jonas alone is personally liable to pay the whole amount.
B) Dr. Jonas alone is personally liable to the patient for an amount equal to his or her
capital contribution.
C) All the three doctors are personally liable to pay the whole amount.
D) No legal action can be taken against the LLP or its partners.
Which of the following statements is true of the federal minimum wage?
A) An employer may not reduce minimum wage although he or she provides other
benefits like food to the employees.
B) Managerial employees are not subject to minimum wage requirements.
C) Apprentices cannot be paid less than minimum wages.
D) Employees who earn tips, such as waiters and valets, are not entitled to minimum
wage.
Which of the following is true of a statement of opinion?
A) It is a type of implied warranty.
B) It is a seller’s commendation of goods.
C) It is a buyer’s commendation of goods.
D) It is a type of express warranty.
________ corporations are for-profit corporations whose shares are usually owned by a
few shareholders, who are often family members, relatives, or friends.
A) Privately held
B) Service
C) Publicly held
D) Public
A life estate that is measured by the life of a third party is known as ________.
A) estate pour autre vie
B) servient estate
C) community property
D) adverse possession
Which of the following best describes jury instructions?
A) It refers to the instructions from the jury to the plaintiff’s attorney about settling a
case before trial.
B) It refers to the instructions from jury informing the judge on what grounds the case
can be dismissed.
C) It refers to the instructions to the jury from both parties over the duration within
which the case has to be settled.
D) It refers to the instructions to inform the jury about what law to apply when they
decide the case.
A ________ alleges that if all the facts presented in the paperwork filed with the court
to initiate or respond to the lawsuit are true, the party making the motion would win the
lawsuit when the proper law is applied to these facts.
A) motion for judgment on the pleadings
B) motion for summary judgment
C) motion for judgment notwithstanding the verdict
D) motion to set aside judgment
How does the Consumer Product Safety Commission enforce its product safety
standards for consumer products that pose unreasonable risk of injury?
What are the statutory requirements that an adverse possessor must fulfill in order to
obtain title to a real property?
Differentiate between the doctrines of strict liability and negligence.
Explain the Equal Protection Clause of the Fourteenth Amendment.
A landlord enters into a lease whereby he rents his apartment for a period of two years.
However, the tenant remains in the apartment for longer than the stipulated period.
What type of tenancy is this, and what is the best course of action that the landlord can
take in order to regain possession of his property?
Under what circumstances are Racketeer Influenced and Corrupt Organization Act
(RICO) actions filed?
The country of Morocco has state-owned enterprises. The government of Morocco
wants to raise capital for these state-owned enterprises, for which, the Moroccan
government sells 15-year bonds in these companies to investors in the United States.
The bondholders are to be paid 10 percent interest annually. What would happen if
Morocco defaults and does not pay the U.S. investors the 10 percent interest on the
bonds or the principal when due? Give reasons in support of your answer.
How is a domain name registrant held as a cybersquatter under the Anticybersquatting
Consumer Protection Act? What are the consequences he or she is likely to face?
What are debit cards? Explain, in brief, the series of events triggered by the loss of a
debit card.
What is the importance of quasi-contracts?
Examine the role of punitive damages in contract law.
Amenta Technologies is a successful startup company that has been targeted for
acquisition by Greenstone Software. Greenstone has begun offering a tender offer to
Amenta’s shareholders. Discuss some defenses that Amenta can employ against
Greenstone’s tender offer.
A lessor orally contracts to lease 15 motorbikes to a lessee. The lessee accepts the first
10 bikes and refuses to accept the delivery for the rest. The lessor sues the lessee for a
breach of contract. The lessee asserts the Statute of Frauds and proclaims the contract
unenforceable, but the court deems the contract enforceable. Discuss arguments for or
against the court’s verdict. Is the lessee liable to purchase all the bikes under the
contract.
Why is the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
considered “creditor friendly?”
What are the prerequisites for an offeree to be entitled to collect a reward? Provide an
example.
How does one determine whether an agent’s intentional torts were committed within the
agent’s scope of employment or not?
Differentiate between good faith and commercial reasonableness. Discuss the need for
such terms in law.
Explain the difference between writ of attachment and writ of execution.
How does the Supreme Court decide whether the government’s different treatment of
people or businesses violates or does not violate the Equal Protection Clause?