The Sherman Act states that corporations convicted of violating it may be fined as
much as:
A. $50 million per violation
B. $100 million per violation
C. $200 million per violation
D. $150 million per violation
Ann wants to download the Adobe Acrobat software from the Internet. Prior to
downloading, a standardized online contract appears on the screen that requires her to
click on an icon indicating agreement, before she can proceed in the program. Such
contracts are called:
A. clickwrap contracts.
B. shrinkwrap contracts.
C. click-off contracts.
D. unenforceable contracts.
Which of the following is used by sellers to eliminate any kind of liability that may be
claimed by an injured buyer?
A. Warranty
B. Disclaimer
C. Warning
D. Advertisement
Which of the following indorsements is a restrictive indorsement?
A. “Pay to Jack Black, Mel Gibbs”
B. “Mel Gibbs”
C. “Pay to Jack Black in Trust for Mel Gibbs”
D. “Pay to the Order of Jack Black, Mel Gibbs”
Kathy was accused of securities fraud. During the government investigation, she
destroyed relevant documents. Under the Sarbanes-Oxley Act of 2002, Kathy may:
A. be civilly but not criminally liable for the destruction of documents.
B. face fines but not prison for the destruction of documents.
C. face fines and/or a maximum of 20 years in prison.
D. be considered a “whistleblower.”
A fully “integrated” contract under the parol evidence rule is one that:
A. is intended by the parties to include both goods and services.
B. is intended by the parties to include several agreements.
C. is intended by the parties to be a preliminary statement of their agreement.
D. is intended by the parties to be the complete, final statement of their agreement.
Nancy, aged 70, has a vacant plot adjacent to her house which she intends to bequeath
to her grandson Roy upon her death. However, an important railroad project is being
undertaken nearby and the local authorities have informed Nancy that the new railroad
will cover her vacant lot. They have also promised her compensation in return. Can the
government take her property?
A. No, because the plot belongs to her.
B. No, because she already intends to bequeath the land to someone.
C. Yes, because the government has eminent domain.
D. Yes, because the government is the actual owner of all private property.
Which of the following parties enter a property with the possessor’s consent, but for
his/her own purpose?
A. Licensee
B. Trespasser
C. Invitee
D. Attendee
What federal law has established three important time periods in the filing of shares to
public shareholders?
A. Securities Act of 1933
B. Dodd Frank Act of 2010
C. Sarbanes Oxley Act of 2002
D. Homeland Security Act of 2002
Which of the following agencies is an executive agency?
A. The Environmental Protection Agency
B. The Consumer Product Safety Commission
C. The National Labor Relations Board
D. The Internal Revenue Service
The EPA has set national ambient air quality standards for:
A. chlorofluorocarbons.
B. sulfur oxide.
C. carbon dioxide.
D. methane.
Which of the following classes of corporation has members rather than shareholders?
A. S corporation
B. For-profit corporation
C. Publicly held corporation
D. Not-for-profit corporation
To determine _____ unconscionability, courts will scrutinize the contract terms
themselves to determine whether they are oppressive, unreasonably one-sided, or
unjustifiably harsh.
A. procedural
B. voidable
C. substantive
D. associative
The _____ Amendment says that no state shall “deny to any person … the equal
protection of the laws.”
A. Fifth
B. Tenth
C. Fourteenth
D. Sixteenth
What is the term for when a shareholder causes a corporation to act to the benefit of an
individual shareholder?
A. Estoppel
B. Domination
C. Submission
D. Incorporation
A buyer who is not a merchant rejects nonconforming goods. He:
A. must return the goods to the seller.
B. must sell the goods for the seller.
C. must hold the goods for the seller for a reasonable time.
D. may destroy the goods.
A Chapter 13 of the Bankruptcy Code provides an advantage to the debtor by which:
A. the debtor is not obligated to reveal all his assets.
B. unsecured creditors are not recognized as valid creditors.
C. the debtor can avoid the stigma of bankruptcy by getting an opportunity to pay the
debts in installments under the protection of a federal court.
D. the court does not appoint a trustee, as it relies on the good faith of the debtor for the
settlement of all debts.
According to contract law, a(n) _____ is a belief about a fact that is not in accordance
with the truth.
A. assertion
B. concealment
C. mistake
D. material
Mike operates an upholstering business. He goes to Hans’ house to reupholster a sofa
for Hans. After the work was complete, Hans refused to pay the agreed price. Mike
wants to assert a lien against the sofa in order to collect the money due to him. Is Mike
entitled to a lien under these circumstances?
A. Yes, because he is an artisan who improved personal property.
B. Yes, because Hans owes a debt to Mike.
C. No, because there is no surety involved in the transaction.
D. No, because Hans did not give up the possession of the sofa.
What is the term for a condition that is not stated in the contract but is construed by the
action of the parties?
A. Express condition
B. Implied-in-fact condition
C. Corporate condition
D. Bilateral condition
A person who rescinds a contract is entitled to the return of what?
A. Everything that person has given the other party
B. 50% of the items that the person has given the other party
C. 75% of the items that the person has given the other party
D. Nothing is returned to the person from the other party
Which of the following was the earliest federal legislation enacted to protect water
bodies against pollution?
A. The Marine Protection, Research, and Sanctuaries Act
B. The Safe Drinking Water Act
C. The Clean Water Act
D. The River and Harbor Act
Ahmed, a lawyer, sold his car to Carlos. Has an implied warranty of merchantability
been created by this transaction?
A. Yes, because a car is “goods” and the Uniform Commercial Code applies to contracts
for the sale of goods.
B. Yes, because if the car is defective Carlos will have a right to return in to Ahmed.
C. No, because Ahmed is not a merchant.
D. No, Ahmed has not implied so either orally or in written.
Which of the following is generally true regarding sexual harassment suits under Title
VII?
A. Employers are vicariously liable for sexual harassment by supervisory and
nonsupervisory employees of the organization.
B. The employee must show a tangible job detriment such as a firing or the denial of a
promotion, or she will lose the case.
C. In all sexual harassment cases, the alleged harassment must be unwelcome or the
employee will not recover.
D. All the courts agree that same-sex sexual harassment violates Title VII.
In which of the following circumstances is a debt settlement a binding contract?
A. Where the amount of the debt is uncertain or subject to dispute.
B. Where the amount of the debt is certain and undisputed.
C. Where the only consideration the creditor gives the debtor is his promise not to sue
the debtor on the original debt.
D. Where the settlement is part of a composition agreement.
Hem Sylvester Oil Company, owning a chain of wholly owned gas stations, refused to
purchase the tires that Sans Corporation sells in some of its stations, unless the tire
manufacturer agrees to purchase from the oil company, the petrochemicals used in the
tire manufacturing process. This agreement is an example of a(n):
A. exclusive dealing agreement.
B. joint venture agreement.
C. reciprocal dealing agreement.
D. formal written agreement.
Which of the following is least likely to make an employer liable for unjust dismissal or
wrongful discharge under the public policy exception to the employment at will
doctrine?
A. Firing an employee for his refusal to work on a contract to manufacture weapons
because of his religious convictions.
B. Firing an employee for his refusal to commit perjury in a $1,000,000 product
liability suit against the firm.
C. Firing a middle-level manager for refusing to violate Title VII by denying a
promotion to a black subordinate.
D. Firing an employee for filing a workers’ compensation claim against the employer.
Which of the following notifies the defendant that he, she, or it is being sued?
A. Summons
B. Motion to Dismiss
C. Deposition
D. Interrogatories
Resale price maintenance is also known as:
A. horizontal price-fixing.
B. vertical divisions of market.
C. horizontal divisions of market.
D. vertical price-fixing.
Which of the following is incorrect concerning a joint venture?
A. Joint ventures are limited to single projects.
B. Joint venturers are personally liable for its debts.
C. Joint ventures are created much like partnerships.
D. Joint venturers have more implied and apparent authority than do partners in a
partnership.
Both Congress and state legislatures can make laws within areas covered under the
concurrent powers, unless Congress preempts state regulation under the:
A. supremacy clause.
B. Takings clause.
C. “checks and balances” system.
D. regulatory clause.
In many other areas, Congress and the state legislatures have concurrent powers, i.e.,
both can make law within those areas. However, Congress preempts state regulation
under the supremacy clause.
What is the basic recovery for copyright infringement?
A. Only the owner’s actual damages
B. Only the attributable profits by the infringer
C. Owner’s actual damages and the attributable profits of the infringer
D. Punitive damages
A check becomes overdue:
A. 30 days after its date.
B. 60 days after its date.
C. 90 days after its date.
D. after a “reasonable” period of time, in the light of trade practice.
In 1978, Frieda Stayel opened a donut shop in the town of Fort Garth, Indiana. Her
shop, called “Stayel Donuts,” was the first of its kind in the community. Over the years,
Stayel Donuts acquired a wide following, not only in Fort Garth but also throughout
Indiana and even in surrounding states. Persons traveling through Indiana on their way
to another state often would go out of their way to stop at Stayel Donuts because of
what they had heard about the high quality of the baked goods sold there. Various
competing donut shops opened in Fort Garth and in nearby communities during the
years following 1978, but all had failed to acquire enough of a following to enable them
to stay in business for very long. As of mid-2003, approximately 95 percent of the
donuts sold in Fort Garth were Stayel donuts. The latest of Stayel’s competitors whose
business failed was Duane Duncan, the former operator of “Duncan Donuts.” Duncan’s
attorney has advised him that Stayel has a monopoly on the donut business and that
Duncan therefore has a good antitrust claim against Stayel under Section 2 of the
Sherman Act? Is the attorney’s advice legally sound? Why or why not?
If the description of interest in the instrument does not allow the amount of interest to
be ascertained, then interest is payable at the:
A. variable rate.
B. judgment rate.
C. order rate.
D. fixed rate.