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The right of an employee to pension benefits paid into a pension plan in the employee's
name by the employer is referred to by the term:
a. venue.
b. accrual.
c. vesting.
d. investing.
Partners hold title to firm property by:
a. tenancy in partnership.
b. tenancy in common.
c. joint tenancy.
d. none of the above.
The statute of limitations for breach of a sales contract:
a. may be reduced between merchants to one year.
b. may be expanded by the buyer and the seller to six years.
c. begins to run from the signing of the contract.
d. always requires a notice to the seller to activate the statute.
Fraud in the inducement is a:
a. limited defense not available against a holder in due course.
b. universal defense available against all holders.
c. limited defense available against all holders.
d. universal defense not available against a holder in due course.
If the plaintiff has either engaged in or refrained from actions that are at least partially
to blame for the injuries received, what negligence has occurred?
a. criminal
b. contributory
c. personal
d. prejudicial
A landowner's promise to pay a contractor a bonus to complete construction of a
building according to the terms of a pre-existing contract between the landowner and
the contractor is:
a. binding if the promise is in writing.
b. binding, since the promise is made by a non-merchant.
c. binding, since the promise is made to a merchant.
d. ordinarily not binding on the promisor.
The theories of product liability
a. are mutually exclusive.
b. are not mutually exclusive.
c. are set forth exclusively in the UCC.
d. are set forth exclusively in the common law.
In a __________, no sale takes place (meaning there is no transfer of title) until the
buyer accepts the goods.
a. conditional sale
b. contingency sale
c. sale or return
d. sale on approval
Legal restrictions of U.S. firms doing business abroad in regard to payments made to
foreign officials for obtaining business are set forth in the:
a. International Corruption Prohibition Act.
b. Global Anti-bribery Control Act.
c. Foreign Corrupt Practices Act.
d. International Graft Prohibition Act.
The CISG:
a. governs all contracts between parties in countries that have ratified it.
b. applies only to goods bought for personal, family or household uses.
c. applies to contracts in which the predominant part of the obligation is the supply of
labor or other services.
d. none of the above.
The Immigration and Naturalization Act (INA) sets forth criminal and civil penalties
against employers who knowingly hire illegal aliens.
Which of the following does not result in dissolution of the partnership by operation of
law?
a. The expulsion of a partner.
b. Bankruptcy of the partnership or of one of the partners.
c. The death of a partner.
d. All of these will result in dissolution of the partnership by operation of law.
The Litigation Reform Act of 1995 was passed because of:
a. congressional concern over an excess of frivolous private securities lawsuits.
b. the financial burdens placed on accountants and other professional advisors due to an
excess of frivolous private securities lawsuits.
c. concern that the investors in a class action lawsuit have their interests fairly
represented.
d. all of the above.
A __________ is a completed sale with an option for the buyer to return the goods.
a. conditional sale
b. contingency sale
c. sale or return
d. sale on approval
In antidumping cases:
a. The International Trade Administration determines whether foreign goods are being
sold in the United States at less than fair value (LTFV).
b. The International Trade Commission determines if there is an injury to a U.S.
industry as a result of such sales.
c. Remedial action will be taken only if findings of both LTFV sales and injury are
present.
d. All of the above
Which of the following is not the exclusive right of the holder of a copyright?
a. To prepare works that are derived from the original work.
b. To obtain a court order enjoining use of the original work by another.
c. To distribute copies of recordings of the original work.
d. To display or perform the original work in public.
One reason the U.S. controls the export of goods and technology is:
a. for national security reason.
b. foreign policy.
c. short supply of domestic goods.
d. All of the above are reasons the U.S. controls the export of goods and techonolgy.
In states that have adopted the Revised Model Business Corporation Act, the secretary
of state may commence proceedings to administratively dissolve a corporation under all
but which of the following circumstances?
a. the corporation adopts more than one business purpose.
b. the corporation does not pay franchise taxes within sixty (60) days after they are due
c. the corporation does not file its annual report within sixty (60) days after it is due.
d. the corporation is without a registered agent or registered office for sixty (60) days or
more.
An instrument is order paper if:
a. it is payable to bearer or the order of bearer.
b. it is payable to cash.
c. the last or only indorsement is a blank indorsement.
d. none of the above.
If a contractually-specified mode of transportation is not available, the:
a. contract is automatically voided.
b. seller must make delivery by a commercially-reasonable substitute.
c. buyer must arrange to pick up the goods.
d. seller must make personal delivery.
Article 2 of the Uniform Commercial Code applies to the sale of:
a. corporate stocks.
b. U.S. Treasury bonds.
c. goods.
d. insurance policies.
Anyone promoting the sale of a real estate development that is divided into fifty (50) or
more parcels of less than five (5) acres each must file a(n) __________ statement with
the secretary of Housing and Urban Development.
a. building plan
b. development
c. environmental impact
d. real property
__________ power relates to a firm's ability to control price and exclude competitors.
a. Market
b. Competitive
c. Product
d. Production
The greatest changes to the written Constitution have been brought about by:
a. departure by treaty.
b. judicial interpretation.
c. constitutional amendment.
d. amendment by practice.
Parol evidence generally is admissible to explain:
a. ambiguous terms.
b. why signatures are missing.
c. why a contract was not performed.
d. implied terms.
An agent is under a duty to obey:
a. all instruction given by the third party.
b. all lawful instructions given by the principal.
c. all instructions given by the principal.
d. none of the above, since "obedience" is not an obligation of the agent.
A transferor may be able to set aside a negotiation obtained by fraud or duress unless:
a. a minor is involved.
b. the negotiation was part of an illegal transaction.
c. the negotiation was beyond the powers of the corporation.
d. the instrument has been acquired in the meantime by a holder in due course who did
not know of the misconduct.
Slander of title and trade libel are collectively known as product __________.
a. Divestiture
b. Disparagement
c. Dilution
d. Diversion
In determining whether a partnership exists, which of the following factors is not
evidence of a partnership?
a. Shared profits and losses
b. Co-ownership of property
c. Equal control of the business
d. All of these are evidence of partnership.
Which of the following scenarios would not qualify as a bona fide occupational
qualification exception to Title VII?
a. a religious school hiring only members of that religion to teach religion
b. a women's store that sells wedding gowns hiring only women to measure and fit
customers
c. an airline hiring only female flight attendants
d. all of the above scenarios would qualify as a bona fide occupational qualification
exception to Title VII.
An individual who desires to make provisions that will be effective only on his or her
death is said to have:
a. probationary intent.
b. a prejudicial interest.
c. testamentary intent.
d. attestation intent.
An investment contract exists if which of the following elements are present?
a. an investment of money
b. a common enterprise
c. an expectation of future profits
d. all of the above
Thelma purchased a used truck from Hall that had been manufactured by International
Harvester. To work on the truck engine, Thelma had to have the cab of the truck raised.
When it was so raised, the cab fell unexpectedly and fatally injured Thelma. Suit was
brought for her wrongful death against Hall and International Harvester. The suit was
based on theories of negligence, strict tort liability, and breach of warranty. The defense
was raised that there was no liability because the sale to Thelma had been made "as is"
and the truck was a used truck. Were these defenses valid?
Louise Feldspar obtained the exclusive right to sell TastyCrunchy Chicken in a
specified area. Under the agreement, Feldspar was permitted to use the TastyCrunchy
name and logo for her restaurant and she agreed to comply with TastyCrunchy's
restaurant requirements. She purchased her equipment, as well as the chicken she
served, from the firm. She agreed to devote a certain percentage of her revenues to
promoting the TastyCrunchy operation in local media. The operation was successful
from the start, and Feldspar has had no problem meeting the sales quotas imposed by
TastyCrunchy. The past year TastyCrunchy informed Feldspar that it intended to open a
new restaurant on an interstate highway that had just been completed in her exclusive
area of trade. Because her operation would be competition for the new store, Feldspar's
right to sell TastyCrunchy products and use the name TastyCrunchy was revoked. What
can Louise do?
The right of a buyer to cancel or rescind a sales contract is never impacted by a delay in
exercising that right.
A joint venture typically relates to the carrying out of a single enterprise or transaction.
The standard for determining commercial impracticability is objective, not subjective.
Trade dress refers to the packaging look and overall image of a product.
Factual incapacity is imposed because of the class or group to which a person belongs.
A professor knew a colleague who was quite ill. The professor applied for life insurance
on the colleague's life and named himself as beneficiary. Because of a similarity in the
names of the professor and the colleague, an error was made and the policy was issued.
The professor also sold his car to a student. When the student drove away, it was clear
that the student was an extremely reckless driver. The professor decided not to cancel
his property insurance policy that he had maintained on the vehicle that he sold to the
student. Shortly thereafter, the colleague died and the student demolished the car. The
professor applied for insurance benefits under both policies and each of the insurers
resisted payment. Decide both cases.
When an accountant fails to complete a contract, the accountant is still entitled to the
accountant's fee.
An output contract is too vague to be a legally-enforceable agreement.
An "encryption" warranty is a warranty made by any party who encodes electronic
information on an instrument.
The group of time-honored rules that courts have used to solve similar problems for
decades is called stare decisis.
A promise to make a gift is enforceable.
A shareholder can give a proxy to vote shares only to another shareholder.
A contract for the sale of shares must be evidenced in writing.
The Uniform Anatomical Gift Act permits persons sixteen (16) years of age or older to
make gifts of their bodies or any parts thereof.
Federal laws on the disclosure in the sales of securities and shareholder relations were
developed following the stock market crash of 1929.
The duties of an employee are determined primarily by the contract of employment
with the employer.
An entity not in privity with an accountant is prohibited from recovering against the
accountant for malpractice when the accountant had no knowledge of any use that could
affect the party.
Written computer programs are not given the same protection as other copyrighted
material.
