An employment-related injury refers to an injury to an employee that arises out of and
in the course of employment.
Felonies are considered as less serious crimes that are not inherently evil.
A jury cannot be sequestered in important cases.
Wills and trusts are means of transferring property.
A person with voidable title to goods can transfer good title to a good faith purchaser
for value.
The Sarbanes-Oxley Act applies only to private companies.
Minors must pay the reasonable value of necessaries of life for which they contract.
The party to whom a check is written is the payee of the check.
In an area franchise, the franchisor manufactures a product and licenses a retail dealer
to distribute a product to the public.
A false statement that appears in writing or other fixed medium is termed slander.
In a Chapter 11 bankruptcy, the debtor-in-possession is not empowered to operate the
debtor’s business during the bankruptcy proceeding.
A situation in which both parties are equally at fault in an illegal contract is termed
“emancipation.”
It is not possible for an individual to file bankruptcy petitions without the assistance of
an attorney.
The right of a member of an LLC to an equal share in the LLC’s profits cannot be
overruled by any agreement.
Common law placed the risk of loss to goods on the party who held title to the goods.
An implied warranty of fitness for human consumption is a warranty that applies to
food or drink consumed on or off the premises of restaurants.
The Dodd-Frank Wall Street Reform and Consumer Protection Act regulates lending
procedures.
A mortgage is a three-party instrument.
A person may be both a general partner and a limited partner in the same limited
partnership.
A promissory note is an order to pay.
A party who pays a premium to a particular insurance company for insurance coverage
is called the insurer.
Violations of GAAPs or GAASs are prima facie evidence of negligence.
A closed shop agreement is legal in the United States.
The bankruptcy court permits the debtor to reduce its unsecured debt in order to make
its plan of organization feasible.
A motion for judgment on the pleadings asserts that a case can be decided before trial
by a judge.
A debenture is a long-term unsecured debt instrument that is based on a corporation’s
general credit standing.
A testator’s attorney could be a witness to attest the testator’s will.
The person who makes the offer is called the offeree and the person to whom the offer
is made is called the offeror.
A transfer of an interest in an LLC entitles the transferee by default to become a
member of the LLC.
A destination contract is enforceable only if the place of delivery is the buyer’s place of
business.
According to the FTC franchise rule, a franchisor that makes sales or earnings
projections based on real examples must disclose the number and percentage of actual
franchises that have obtained such results.
Damages refer to costs that a lessor recovers from a lessee who repudiates a contract.
Most government laws are often written in “legalese.”
The Securities Exchange Act of 1934 requires certain companies, called reporting
companies, to file periodic reports with the SEC and to their shareholders.
Article 4 of the UCC sets forth the requirements for negotiable instruments, including
checks.
In the case of bailment for the sole benefit of the bailor, the bailee owes a duty of great
care to protect the bailed property.
An employer may dismiss union members who strike in violation of a no-strike clause.
A seller who learns of the buyer’s insolvency while the goods are in transit has a right to
stop delivery of the goods in transit, regardless of the size of the shipment.
The right of an employee to practice his or her religion is not absolute under Title VII.
Cost justification is not a statutory defense to price discrimination.
The ________ period begins when the registration statement becomes active and runs
until the issuer either sells all of the securities or withdraws them from sale.
A) prefiling
B) fixing
C) waiting
D) posteffective
Which of the following is a defense to a charge of monopoly?
A) the Noerr doctrine
B) innocent acquisition
C) conscious parallelism
D) predatory pricing
Which of the following is a consequence of failing to give adequate notice of
partnership dissolution to third parties?
A) The partnership’s attempted dissolution will be ineffective.
B) The partners will be prevented from receiving their share of partnership assets.
C) There will be a court-ordered waiting period before partners can receive their share
of partnership assets.
D) Partners might be personally liable for transactions entered into by other partners
occurring after the partnership dissolution.
A system in which a shareholder accumulates all of his or her votes and votes them all
for one candidate or splits them among several candidates is known as ________
voting.
A) statutory
B) straight
C) cumulative
D) noncumulative
Roger, a certified lawyer, borrows money from Jax to start a business. He executes a
promissory note stating that he will repay the money within the next five years if he
inherits any money from his parents. Which of the following is true of the negotiability
of the promissory note executed by Roger?
A) It is negotiable for the next five years.
B) It is invalid.
C) It is a nonnegotiable instrument.
D) It is a negotiable instrument if Jax accepts it.
Firecars Inc. purchases cars from Santeno Automobiles and replaces the engines of
these cars with racecar engines to boost the cars’ speeds. One of Firecar’s customers
buys such a car and is injured in the process due to a defect in the car engine. Which of
the following defenses can Santeno Automobiles use against a strict liability lawsuit
that the customer files against it?
A) generally known dangers
B) crashworthiness
C) supervening event
D) assumption of risk
The release of the liability clause is also known as the ________ clause.
A) exculpatory
B) exclamatory
C) tort
D) noncompete
The ________ is the right of a lessee to lease substitute goods if a lessor fails to make
delivery of the goods or repudiates the contract.
A) right to dispose goods
B) right to cure
C) right to cover
D) right to stop delivery of goods in transit
According to the________, evidence obtained from an unreasonable search and seizure
can generally be prohibited from introduction at a trial or an administrative proceeding
against the person searched.
A) presumption of innocence doctrine
B) double jeopardy rule
C) exclusionary rule
D) good faith exception
________ of the Uniform Commercial Code establishes rules that regulate the creation
and collection of and liability for wire transfers.
A) Article 3
B) Article 4
C) Article 4A
D) Article 5
Richard Bell, an organized crime boss and casino owner, has made a lot of money with
his illegal drug operations and illegal gambling. In order to make it look like he earned
it legitimately, Richard hired crooks to take the drug money and spend it in Richard’s
casinos in discreet amounts. The crooks are supposed to lose the money on purpose so
that the casino can claim this as winnings. The crooks are then paid a small amount for
their services. Under which federal law would Richard be tried for his mob activities, if
he were caught?
A) Identity Theft and Assumption Deterrence Act
B) Racketeer Influenced and Corrupt Organizations Act
C) Counterfeit Access Device and Computer Fraud and Abuse Act
D) Information Infrastructure Protection Act
A deed in which the grantor of real property transfers whatever interest he has in the
property to the grantee is known as a ________.
A) quitclaim deed
B) general warranty deed
C) grand deed
D) special warrant deed
Which of the following is true of Section 12 of the Securities Act of 1933?
A) It imposes liability on those who are negligent in not discovering the fraud.
B) It imposes civil liability on persons who intentionally defraud investors by making
misrepresentations of material facts in the registration statement.
C) It imposes criminal liability on any person who willfully violates either the act or the
rules and regulations.
D) It imposes civil liability on any person who violates the provisions of Section 5 of
the act.
Which of the following statements is true of Title VII of the Civil Rights Act of 1964?
A) It applies to all employers irrespective of the number of employees.
B) It does not apply to labor unions.
C) It does not cover state and local governments.
D) It does not apply to Native American tribes.
A ________ is a form of co-ownership of real property that can be used only by married
couples.
A) cooperative
B) tenancy in common
C) joint tenancy
D) tenancy by the entirety
An emerging growth company (EGC) is a class of public company created by the
________ that may issue securities pursuant to specific rules under federal securities
laws.
A) Securities Act
B) Securities Exchange Act
C) JOBS Act
D) STOCKS Act
In banking terminology, a creditor-debtor relationship is created when a customer
________.
A) fails to maintain adequate funds in his bank checking account
B) makes a deposit into a bank
C) writes a check against his account
D) writes a postdated check drawn on his bank
Andy is interested in purchasing a fridge from Tim, a salesman. In an attempt to force a
sale, Tim claims that the fridge is the best of its kind in the contemporary market. Tim’s
claim is an example of ________.
A) a statement of opinion
B) an express warranty
C) a full warranty
D) slander
A statement that negates express and implied warranties is known as a ________.
A) warranty disclaimer
B) limited warranty
C) strict liability
D) statement of opinion
The theory of maximizing profits states that ________.
A) a corporation must consider the effects its actions have on persons other than its
shareholders
B) a corporation’s duty is to make a profit while avoiding causing harm to others
C) a corporation owes a duty to take actions that increases profits for shareholders
D) a business has a responsibility solely to its stakeholders that other than shareholders
Portman, who runs a computer hardware store, had signed a contract with Stewie, Inc.
to deliver 125 computer monitors. He was to deliver it by the 5th of August, but by the
3rd of August, Portman could not arrange for the monitors, as his usual supplier was not
available. Portman then decided to go to another supplier who had a higher selling price
rather than cancel the contract with Stewie, Inc. as he believed it was his duty to do so.
What of the following moral theories matches Portman’s behavior?
A) Kantian ethics
B) utilitarianism
C) Rawls’s social justice theory
D) moral relativism
Credit that requires collateral that protects payment of the loan is referred to as
________.
A) revolving credit
B) secured credit
C) equal credit
D) fair credit
Which of the following articles in the UCC deals with the sale of goods?
A) Article 2
B) Article 4
C) Article 5
D) Article 8
John writes out a check for $100 on his account at the Sacred Heart Bank to repay the
$100 he owes Perry. He gives the check to Eliot and tells her to hand it over to Perry.
However, Eliot loses the check before she can hand it to Perry. Later, John realizes that
he had not written Perry’s name on the lost check. According to the provisions of the
UCC, the risk of loss of the check should be placed on ________.
A) Eliot
B) Perry
C) John
D) Sacred Heart Bank
The voluntary transfer of title to property without payment of consideration by the
donee is known as a(n) ________.
A) adverse possession
B) future interest
C) gift
D) purchase
A gift of real estate by will is called a(n) ________.
A) bequest
B) devise
C) abatement
D) general gift
Which of the following is headed by the secretary-general of the UN?
A) the International Court of Justice
B) the Secretariat
C) the Security Council
D) the General Assembly
Which of the following is true of shareholders?
A) They own the corporation whose shares they also own.
B) They can bind the corporation that they own to contracts.
C) They are agents of the corporations they own.
D) They are directors of the corporations they own.
Deborah executes an unconditional written agreement to pay $5,000 to Bill on or before
February 15, 2015. In this scenario, Deborah has drawn a ________.
A) promissory note
B) draft
C) check
D) money order
Which of the following is a special federal court established by the United States
Congress?
A) U.S. Court of Intrastate Commerce
B) U.S. Court of Equity
C) U.S. Court of Indian Affairs
D) U.S. Court of Appeals for the Armed Forces
The ________ is a federal statute that makes it unlawful for a party to refuse to sell,
rent, finance, or advertise housing to any person because of his or her race, color,
national origin, sex, religion, disability, or family status.
A) Rent Stabilization Law of 1969
B) Americans with Disabilities Act of 1990
C) Fair Housing Act of 1968
D) Civil Rights Act of 1866
Why are principals liable for the torts committed by agents when they are acting within
the scope of their employment? Discuss with an example.
An LLC could not amend its operating agreement despite all the members of the LLC
orally agreeing to the amendment. Why?
In what ways does the Clean Air Act regulate stationary and mobile sources of air
pollution?
Explain with an example how the law may permit something that is ethically wrong.
How is an agency formed? Discuss why an express agency is considered to be the most
common form of agency.
Identify and discuss the act that requires the EPA to identify and regulate toxic air
pollutants.
Analyze the effects of a competent party’s duty of restitution.
How does the covenant of good faith and fair dealing implied in contracts make
contracted parties act more ethically?
Discuss circumstances under which a breaching party is not liable to pay consequential
damages to a nonbreaching party?
Explain why the mirror image rule is said to be the exact antithesis of a counteroffer.
What is the purpose of a pretrial hearing?
How do the rules for determining passage of title in a shipment contract differ from a
destination contract?
Compare and contrast the Fair and Accurate Credit Transactions Act and the Fair Credit
and Charge Card Disclosure Act.
What is the need for a Uniform Computer Information Transactions Act?
Arnold draws a check payable to the order of Matthew. Linda steals the check from
Matthew, forges Matthew’s indorsement, and cashes the check at a liquor store. Who is
liable and why?
Discuss briefly the changes brought by the JOBS Act to security law regulations
governing IPO registration.
Ellen draws a check on his checking account at Center Bank “payable to the order of
Cary Gardner.” When Cary presents the check for payment, Center Bank refuses to pay
it even though there are sufficient funds in Ellen’s account to pay Cary. Can Cary collect
the amount of the check? If yes, how?
What is a noncompete clause? When is it considered to be lawful?