Workers’ compensation benefits are usually paid according to preset limits established
by statute or regulation.
One of the primary functions of the WTO is to hear and decide trade disputes between
member nations.
A material breach of a contract immediately discharges the nonbreaching party from the
duties specified under the contract.
The intentional defrauding of a person out of money, property, or something else of
value is defined as malicious prosecution.
A carrier has a lien on the goods in its possession covered by a bill of lading for
necessary charges and expenses.
If the parent corporation owns 90 percent or more of the outstanding shares of the
subsidiary corporation, a short-form merger procedure may be followed to merge the
two corporations.
A promissory note is a note denying a debt.
In a novation agreement, an existing party’s liability on a contract continues till the new
party performs the duties under the contract.
According to Kantian ethics, a person is under no moral obligation to abide by a
contract if it turns out to be detrimental to the obligated party.
Warrantless searches are permitted in situations where the evidence is hidden from plain
view.
Constructive delivery, or symbolic delivery, is sufficient for delivering a gift to a donee.
AKFTA sets quotas on the output of oil production by member nations.
An oral sales or lease contract that should otherwise be in writing is enforceable to the
extent to which the goods have been received and accepted by the buyer or lessee.
The Just Compensation Clause of the Fifth Amendment to the U.S. Constitution
requires the government to compensate the property owner when it exercises the power
of eminent domain.
An agreement whereby the parties agree to accept something different in satisfaction of
the original contract is called a satisfaction.
The members of the Public Company Accounting Oversight Board are appointed for a
term of seven years.
Depositions are used to preserve evidence and impeach testimony given by the
defendant at trial.
If someone threatens to physically harm another person unless that person signs a
contract, it is referred to as scienter.
The usual period for bringing a lawsuit for breach of contracts is one to five years.
The World Bank is financed by contributions from developed countries.
Section 2 the Clayton Act does not apply to the sale of intangible property or services.
Article 2 of the UCC generally applies to all sales contracts irrespective of the
involvement of merchants.
A principal is not liable under the doctrine of vicarious liability for intentional torts of
agents and employees committed within the agent’s scope of employment.
Appellate courts usually permit a brief oral argument at which each party’s attorney is
heard.
The revocation of an offer is effective when received by the offeree.
A draft is a two-party instrument that is a conditional written order by one party to pay
money to the other party.
Professional malpractice refers to the liability of a professional who breaches his or her
duty of ordinary care.
Residential leases are often prepared by the landlord and presented to the tenant.
In a member-managed LLC, each member has equal rights in the management of the
business of the LLC, regardless of the size of his or her capital contribution.
Prior to acceptance of an offer, the death or incompetency of either the offeror or the
offeree terminates an offer.
Intellectual property falls into a category of property known as tangible rights.
Written disclaimers must be conspicuously displayed to be valid.
Contributory negligence is a doctrine which advocates that damages are apportioned
according to fault.
Vertical mergers do not create an increase in a company’s market share because the
merging firms serve different markets.
Article 2 of the Uniform Commercial Code (UCC) adopts concise rules for risk of loss
that are tied to title to the goods.
According to the incontestability clause, an insurer may avoid liability on a policy if the
applicant concealed material information from the insurer.
Rita Fuller and Robert Morgan are contending parties to a lawsuit involving the
division of their inheritance from their grandmother. They wish to settle their case out
of court. Rita and Robert engage in discussions and bargaining with the presence of
their attorneys and finally conclude that Rita keeps 60 percent of the inheritance while
Robert gets the remainder. In this scenario, the ________ method of alternative dispute
resolution is used.
A) negotiation
B) arbitration
C) pre-trial hearing
D) mini-trial
The Food and Drug Administration (FDA) is empowered to ________.
A) recall unsafe toys, appliances, and other consumer products which are harmful to
users
B) regulate the safety of meat, poultry, and other food products
C) prosecute violators directly by imposing fines and pronouncing sentences
D) obtain orders for the seizure, recall, and condemnation of harmful products
The ________ of a check is the customer who maintains the checking account and
writes checks against the account.
A) drawer
B) drawee
C) payee
D) indorser
The only relief, or remedy, offered in the early law courts of England was ________.
A) rigorous imprisonment
B) threatening with logical consequences
C) monetary awards for damages
D) withholding privileges offered by the law
The Marine Protection, Research, and Sanctuaries Act ________.
A) requires the oil industry to adopt procedures and contingency plans to readily
respond to and clean up oil spills
B) requires a permit for dumping wastes and other foreign materials into ocean waters
C) requires the tanker owner-operator to prove that it is fully insured to cover any
liability that may occur from an oil spill
D) issues permits for discharge of dredged or fill material into navigable waters and
qualified wetlands
The ________ is a bankruptcy rule that applies to a debtor who has a median family
income that exceeds the state’s median family income for families the same size as the
debtor’s family.
A) means test
B) median income test
C) Chapter 13 discharge
D) Chapter 13 plan of payment
Which of the following is a federal statute that extends limited environmental
protection to the oceans?
A) the Safe Drinking Water Act
B) the Marine Protection, Research, and Sanctuaries Act
C) the Federal Water Pollution Control Act
D) the Comprehensive Environmental Response, Compensation, and Liability Act
The state of Camford in the United States passes a statute containing numerous
requirements, some conflicting with the federal rules, covering the licensing of airplane
pilots and the operation of aircraft. A pilot’s constitutional challenge to this state statute
would succeed on the basis of ________.
A) the preemption doctrine
B) the substantive due process
C) the procedural due process
D) the Equal Protection Clause
An indorsement that does not specify a particular indorsee is known as a ________.
A) blank indorsement
B) special indorsement
C) qualified indorsement
D) restrictive indorsement
When the containers of a product are not tamperproof, it is termed as a ________.
A) defect in manufacture
B) defect in design
C) defect in packaging
D) failure to warn
What was the key reason for the creation of law courts during the early development of
the English common law?
A) to administer law in a uniform manner
B) to help merchants form a standardized set of commercial laws
C) to increase the power of the king in law-making
D) to facilitate legal disputes for the wealthy and influential
While downloading a software program, Harriet reads the Terms and Conditions
document which states that the company is not liable for any unforeseen damages that
may arise from using the software. Harriet clicks on “Accept” and continues to install
the program. The document is an example of a(n) ________.
A) digital signature
B) digital identification
C) licensing agreement
D) implicit contract
Which of the following is true for the shipping term “free on board point of shipment”?
A) It requires the seller to bear the expense and risk of loss until the goods are tendered
to the buyer at the place of destination.
B) It refers to a pricing term that includes the cost of the goods, and the costs of
insurance, and freight.
C) It requires the seller to bear the expense and risk of loss of the goods until delivery
has been tendered.
D) The buyer bears the shipping expense and risk of loss while the goods are in transit.
A party who owes a duty of performance under a contract is called the ________.
A) obligor
B) assignor
C) assignee
D) obligee
Mike is a painter who makes a verbal offer to paint Betty’s house for $2,000 by May 1st.
Betty verbally promises to pay Mike $2,000 for the paint job if he completes it by May
1st. This is an example of a(n) ________.
A) void contract
B) quasi-contract
C) executed contract
D) bilateral contract
A relevant market is characterized by the presence of ________.
A) unique goods and services
B) reasonably interchangeable goods and services
C) highly differentiated goods and services
D) pure monopoly of the defendant’s goods and products
Which of the following statements best describes a wild-cat strike?
A) Union members occupy the employer’s premises while striking.
B) Union members strike part of the day or workweek and work the other part.
C) Individual union members go on strike without proper union authorization.
D) The union declares indefinite cessation of work for its members.
Under the 2005 bankruptcy act, if a nonexempt personal property of an individual
debtor secures a claim or is subject to an unexpired lease, the debtor ________.
A) must surrender the property
B) can appeal for exemption of the property
C) must terminate the lease with immediate effect
D) cannot redeem the property
The holder of a negotiable instrument can discharge the liability of any party to the
instrument by ________.
A) cancellation of instrument
B) accommodation of instrument
C) indorsement of instrument
D) mutilation of instrument
Which of the following groups is legally deprived from directly entering into contracts?
A) minors
B) persons adjudged insane
C) persons with alternating states of sanity and insanity
D) intoxicated persons
Proponents of the Command School of jurisprudence will assert that the law is
________.
A) developed, communicated, and enforced by the ruling party
B) a means to achieve and advance sociological goals
C) a collection of a society’s traditions and customs that has developed over the
centuries
D) based on human reasoning, and humans’ choosing power between what is good and
evil
Which of the following provisions does the American Inventors Protection Act make?
A) It allows the inventor to file a provisional application with the Patent and Trademark
Office.
B) It provides the inventor with three weeks to file a patent application with the Patent
and Trademark Office.
C) It prevents non-patent holders from challenging the inventor’s patent application.
D) It protects the inventor from any reexamination of the patent application.
A party who employs another person to act on his or her behalf is known as a(n)
________.
A) agent
B) principal
C) independent contractor
D) employee
A(n) ________ is a type of instrument that is payable to anyone in physical possession
of the instrument and presents it for payment when it is due.
A) certificate of deposit
B) order instrument
C) bearer instrument
D) check
Which of the following does the English Rule for successive assignments provide?
A) The first assignment in time prevails, regardless of notice.
B) The first assignment in time prevails, pending notice.
C) The first assignee to give notice to the obligor prevails.
D) The first assignee who receives a tangible token prevails.
Which of the following is true of a buyer’s acceptance of a delivery?
A) Buyers may only accept delivery of a commercial unit.
B) Acceptance of a part of a commercial unit does not constitute acceptance of the
entire unit.
C) An effective rejection of goods within a reasonable time after their delivery leads to
acceptance on the part of the buyer.
D) Once a delivery is accepted, its revocation is forbidden by the law.
________ is a type of universal defense where a person is deceived into signing a
negotiable instrument, thinking that it is something else.
A) Extreme duress
B) Fraud in inception
C) Forgery
D) Material alteration
The means test is used to determine whether ________.
A) the debtor’s median family income is less than the state’s median family income
B) the debtor’s median family income is more than the state’s median family income
C) the debtor has the capability to pay prepetition debts out of postpetition income
D) the debtor would qualify to file for bankruptcy under Chapter 13
Which of the following is true of a minor’s duty toward a contract for necessaries of
life?
A) Minors need to reach the age of majority to enter into contracts for necessaries of
life.
B) Minors are exempt from paying for contracts of necessaries of life.
C) Minors must pay the reasonable value of necessaries of life for which they contract.
D) Parents are liable to provide necessaries of life to their minor children if they
become emancipated.
Patent ________ is defined as the unauthorized use of another’s patent.
A) application
B) infringement
C) prosecution
D) litigation
The ________ rule states that any increase in price paid for shares tendered must be
offered to all shareholders, even those who have previously tendered their shares.
A) pro rata
B) fair price
C) business judgment
D) perfect tender
John Lee and Mary Lee are a couple who have owned real estate as joint tenants.
However, the joint tenancy has been terminated, and they are now tenants in common.
Under which circumstance does a joint tenancy become a tenancy in common? Explain
this using John and Mary’s example.
Discuss with an example a situation where a court may permit rescission of a contract
based on undue influence.
Brooksold Corporation contracts to have Zealent Construction Company build a factory
for $4,000,000. Days before the start of construction, Zealent withdraws from the
contract. Brooksold invites proposals for the construction and contracts with Sierra Nos
Builders for $3,800,000. Can Brooksold hold Zealent liable for nonperformance? What
can the company recover as compensation for damages?
Hilda Homeowner said to her neighbor, Paulette Painter, “If you paint my house, I’ll pay
you $1,500. All you must do is finish by the end of the next month. My price assumes
that you will pay for all of the paint and any needed supplies.” Paulette decided to paint
the house. She purchased some supplies as well as enough paint to complete the job. On
the morning that Paulette was about to begin painting, Hilda told her that she had
changed her mind and would not pay Paulette to paint the house. Discuss the rights of
the parties in this situation.
Explain how the provisions under the Equal Pay Act protect both sexes from pay
discrimination based on sex. Provide an example.
Define a lost volume seller with an example.
Explain the liabilities of a dissolving corporation to its common and preferred
stockholders. Provide an example.
When is an election necessary to form a union? Can a union be created without an
employer contesting the election results?
What are tying arrangements? Explain with the help of an example.
Analyze the elements that a party has to show in order to prove fraud.
Discuss the difference between mislaid and abandoned property.
When does an apparent agency arise from a franchisee agreement? Does such a
situation automatically transfer liability to the franchiser?
Explain with an example a transaction where the lessor does not manufacture, select, or
supply the goods, but acquires title to the goods?
Explain the alter ego doctrine and examine its fairness.
Explain with examples the circumstances under which the ECPA provides that stored
communications may be accessed without violating the law.
Two merchants exchange contract forms with each containing additional terms
favorable to the drafter. Can the additional terms be accepted as part of the contract?
Are there any exceptions to accepting the additional terms?
Explain reaffirmation agreement with an example.
Compare and contrast in rem and quasi in rem jurisdiction.
Explain with the help of an example why any state or local law that unduly burdens
foreign commerce is considered unconstitutional in the United States.