Which of the following would be considered as goods?
A) company shares
B) crops
C) trade secrets
D) money
A(n) ________ is necessary for a bearer paper to be negotiable.
A) acceleration clause
B) indorsement
C) delivery
D) specific payee or indorsee
Which of the following does the FTC franchise rule require from franchisors?
A) Registration of the disclosure document with the FTC before it’s used.
B) Full presale disclosures to prospective franchisees nationwide.
C) A statement to fully finance the infrastructure necessary to bring the franchisee to the
franchisor’s standard.
D) Disclosure of license agreement made with franchisee that lets the franchisee use the
franchisor’s service mark.
Able Adams has a number of rare paintings at home that he inherited from his paternal
family, many of whom were patrons and collectors of the arts. Able knows that the
value of these paintings makes them likely targets of theft and he needs to insure these
items specifically by using a ________.
A) homeowner’s policy
B) standard fire insurance
C) personal articles floater
D) personal liability coverage
An LLP must register as a(n) ________ in any state in which it wants to conduct its
business.
A) C corporation
B) S corporation
C) foreign LLP
D) domestic LLP
A ________ is a tenancy created when a tenant retains possession of property after the
expiration of another tenancy or a life estate without the owner’s consent.
A) periodic tenancy
B) tenancy at will
C) tenancy at sufferance
D) tenancy for years
Kimberly, Inc., a jewelry store, and JKCent, a retailer, draft a contract that permits
JKCent to retail Kimberly’s jewelry in its stores. However, the parties discover a minor
clerical error six months into the contract and the court rewrites their contract. This is
an instance of ________.
A) restitution
B) rescission
C) injunction
D) reformation
A Form 8-K is a(n) ________ report that has to be filed by a reporting company as
required by the Securities Exchange Act of 1934.
A) weekly
B) annual
C) monthly
D) quarterly
Which of the following is used to resolve a case where the obligee fraudulently makes
successive assignments of the same right to several assignees?
A) the English rule
B) the no contact rule
C) the exclusionary rule
D) the gag rule
Which of the following best describes how email contracts are viewed under the law?
A) Email contracts are valid only for contracts less than $500.
B) Email contracts for goods can be valid, but not email contracts for services.
C) Email contracts are generally treated similarly to contracts negotiated by other
means.
D) Email contracts are not usually valid because of the ease of deleting email messages.
________ prohibits any manipulative or deceptive practice in connection with the
purchase or sale of a security.
A) Section 11(a) of the Securities Act of 1933
B) Private Securities Litigation Reform Act of 1995
C) Section 10(b) of the Securities Exchange Act of 1934
D) Section 15 of the Securities Act of 1933
Kantian ethics is also referred to as ________ ethics.
A) relativistic
B) utilitarian
C) duty
D) nihilistic
Which of the following is true of the median income test?
A) If a family has median family income equal to the state’s median family income, the
debtor does not qualify for Chapter 7 bankruptcy.
B) If a family has median family income below the state’s median family income, the
debtor is subject to the “means” test.
C) If a family has median family income below the state’s median family income, the
debtor automatically qualifies for Chapter 7 bankruptcy.
D) A debtor’s debts are not discharged if the family median income is more than the
state’s median family income.
A ________ is an owner of intellectual property or informational rights who transfers
rights in the property or information to another party.
A) lessor
B) lessee
C) licensee
D) licensor
A(n) ________ contract consists of an agreement between the parties, is supported by
legally sufficient consideration, is between parties with contractual capacity, and
accomplishes a lawful object.
A) voidable
B) void
C) valid
D) unenforceable
Which of the following is true of an audit committee?
A) It is composed of inside directors.
B) It must have at least one financial expert.
C) It constitutes shareholders who own the corporation.
D) It is formed by executive directors of the company.
A ________ is a valuable asset of a target corporation that the tender offeror
particularly wants to acquire in a tender offer.
A) greenmail
B) white knight
C) poison pill
D) crown jewel
What is the doctrine of in pari delicto with reference to contracts?
A) It is a situation in which both parties are equally at fault in an illegal contract.
B) It is a situation where only one party has unknowingly signed a contract to commit
crimes.
C) It gives minors the right to disaffirm a contract.
D) It is a special exemption right to circumvent usury laws.
Minewell Publishers contracts with Inkhome Paper to purchase large quantities of bond
paper. Due to multiple defaults on payments by Minewell, Inkhome stops supplying the
contracted monthly quota of paper to Minewell. Which of the following seller’s right
has Inkhome Paper exercised in the above scenario?
A) right to dispose of goods
B) right to withhold delivery
C) right to obtain specific performance
D) right to cure
Jonathan Smith, a neurosurgeon in Oregon, wants to start a website that makes it
possible for neurosurgeons across the world to collaborate on cases. Which of the
following domain extensions is most apt for Smith’s website?
A) .aero
B) .coop
C) .biz
D) .pro
Martin, who wants to sell a house he owns, authorizes his concierge, Wilhelm, to find a
potential buyer, and finalize a deal above a stipulated price. Wilhelm contracts Chris, a
real estate broker, and intends him to only find a potential buyer and send them over to
Wilhelm for the sale. Martin then contracts ReNowait Goodhouses, a home
improvement company to renovate the house. ReNowait completes their work and
Martin pays them. Chris then searches for a suitable buyer and finds one in George.
George buys the house and Chris is paid for his services. Who among the following
perform the role of the agent in this land sale transaction?
A) Wilhelm
B) Martin
C) Chris
D) George
Jay Bosley borrows $15,000 from the County Bank with an interest rate of 9 percent.
Jay defaults on the loan, and County Bank assigns the rights to an agency to recover the
money. Jay can raise a defense against County Bank if ________.
A) the agency acts on behalf of the bank
B) the agency discharges its contract with the bank
C) the agency demands a higher interest rate
D) the agency sues Jay on charges of nonperformance
Jules Renton, a financial accountant at Valkyrie Aviation, deals with the accounts
Valkyrie has with the government. Valkyrie Aviation are in contract with the
government to deliver a new bomber plane called Spearhead. While reviewing the
Spearhead account, Renton noticed that Valkyrie has been falsely billing the
government for Spearhead’s production. If Renton chooses to be a whistleblower and
exposes the scam to the government, what Congress enacted statute must he invoke?
A) Business Norms Act
B) False Claims Act
C) Sarbanes-Oxley Act
D) Glass-Steagall Act
Under the ________ rule, a contract with an intoxicated person is voidable only if the
person was so intoxicated when the contract was entered into that he or she was
incapable of understanding or comprehending the nature of the transaction.
A) validation
B) exclusionary
C) force majeure
D) majority
A contract into which both parties enter but in which one or both of the parties can
choose not to perform their contractual obligations is known as a(n) ________.
A) illusory promise
B) gift promise
C) preexisting duty
D) illegal consideration
In a unilateral contract, the offeror ________.
A) must accept the promise extended by the offeree to create the contract
B) can revoke the offer at any point of time after performance
C) will treat either a promise to perform or the actual performance of the act as
acceptance of his or her offer
D) cannot revoke the offer once the offeree has begun performance or has substantially
completed performance of the act
Which of the following is true of a Small Company Offering Registration (SCOR)
form?
A) It can only be used for raising more than $1 million through sale of securities.
B) Forms are available to both domestic and foreign companies.
C) Forms that have been completed act as the offering circular for potential investors.
D) Forms have to be completed by the issuee before purchasing securities.
Which of the following best describes quid pro quo sex discrimination?
A) employment discrimination because of pregnancy, childbirth or related medical
conditions
B) discrimination where sexual favors are requested in order to obtain a job or be
promoted
C) discrimination in hiring or promotion based on the gender of the employee under
consideration
D) selective or partial treatment offered to an employee or a group of employees based
on their gender
Which of the following is true of e-commerce?
A) Lessors cannot use web addresses to lease goods.
B) Intellectual property cannot be explicitly listed for sale on a website.
C) A Web contract is not binding, as opposed to an email contract, which is.
D) A Web contract is not valid if it does not fulfill all the elements of a traditional
contract.
A check that has been outstanding for more than ________ is considered stale.
A) six months
B) one year
C) three months
D) nine months
A public accounting firm that is registered with the Public Company Accounting
Oversight Board (PCAOB) is reviewed ________.
A) twice a year if it audits more than 100 public companies a year
B) once in two years if it audits more than 100 public companies a year
C) once every year if it audits less than 100 public companies a year
D) once in three years if it audits less than 100 public companies a year
A(n) ________ refers to a contracting party who directs that the benefit be conferred on
another person.
A) assignee
B) promisor
C) promisee
D) donee beneficiary