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A minor is liable for the contract price of necessaries purchased even if the contract
price is exorbitant.
Defamatory statements include slander but not libel.
The process of a court deciding whether a law is contrary to the constitution is known
as the doctrine of preemption.
Competent parties are not liable for their negligence or their failure to meet their
contractual obligations.
A person who agrees in a contract to perform a particular task may generally delegate
this task to someone else and can transfer responsibility for getting it done.
An individual who copies another's works without permission may be found liable for
infringement.
An express contract must be in writing and specifically state the agreement of the
parties.
A negotiable warehouse receipt, like the negotiable order bill of lading, requires that the
original copy be presented to the warehouser before the goods will be surrendered to
someone claiming them.
A pharmaceutical company earns most of its drug-related profits during the time that
the patent for the drug is effective.
For title to pass through adverse possession it need not be proved that there was actual
and exclusive continuous possession or use of the property.
An intoxicated person may not avoid a contract where, due to the extent of intoxication,
he or she was unable to understand the nature and effect of the contract.
In many cases, the need for specialized expertise in a given area can usually come only
from the industry being regulated.
The distinction that developed between malpractice and other forms of negligence in
part stems from the fact that the performance of certain professionals is known as a
"practice" and the people served are referred to as "patients" or "clients" rather than
customers.
A seller or manufacturer has significant legal responsibility to buyers and users of
goods and services, but not to the third parties.
A contract may be extended and revised as needed to reflect the wishes of the parties.
A certified check is one that the bank has promised to pay when it is presented for
payment.
A cashier's check is drawn against the depositor's own funds.
The United States Constitution forms the basis for all American Law.
The process of FDA approval has come under some criticism in recent years, as
concerns over the costs and length of time for obtaining approval of prescription drugs
have increased.
A court has appellate jurisdiction if it has the authority to hear appeals from other
courts.
The willful or malicious act of causing the burning of property belonging to another
person is known as larceny.
Agents are usually classified according to the nature of their relationship with their
principals.
A will must comply with legal requirements that are intended to ensure that the wishes
of the testator are met and that there are no obstacles to the smooth transfer of the
property.
A bailee's lien is a claim against the property of another as security for a debt.
A simple contract is defined as an informal contract made under seal.
Court decisions are recorded in writing so that lawyers and judges can refer to them
when preparing or hearing a case.
A mentally ill person may sometimes have lucid periods during which he or she may
exercise sound judgment.
Most leases give a landlord the right to terminate the lease if the tenant fails to pay rent
or violates any other material lease provision.
Proper form is the requirement that the form of a contract be correct for the terms of the
contract to be enforceable.
Symbols used to identify services, as distinguished from goods, are called service
marks.
A third-party beneficiary to a contract rarely has a legal right to the benefits resulting
from the contract.
There is no requirement for corrective advertising under the FTC, and hence, it does not
inform Web page visitors if the previous information was deceptive.
Federal district courts have original jurisdiction to hear all appeals from state trial
courts.
To determine whether an administrative agency has abused its authority, the courts are
guided by the statutes that established the agency and by the constitutions of the United
States and the individual states.
The thing that is extremely difficult to collect on small items sold on the Web, and most
states do not make efforts to collect, is:
A.income tax.
B.use tax.
C.corporation tax.
D.property tax.
The voluntary transfer of property by one person to another without consideration or
payment of any kind is a(n):
A.informal transfer.
B.will. nullity.
C.statutory transfer.
D.gift.
If the mistake in the contract is made by both parties then it amounts to:
A.mutual mistake.
B.unilateral mistake.
C.intentional mistake.
D.conditional mistake.
The Electronic Funds Transfer Act of 1979 (EFTA) establishes the rights,
responsibilities, and liabilities of consumers in dealings with:
A.charitable institutions.
B.educational institutions.
C.cultural institutions.
D.financial institutions.
The tenant has the right to ___________ the leased premises for the duration of the
lease.
A.gift
B.possess
C.inherit
D.sell
Because it has the opportunity to inspect a check at the time of payment, the ____ is
liable if it pays a raised check, unless the drawer, through carelessness, wrote the check
in such a way that it could easily be altered.
A.drawee
B.maker
C.bank
D.payee
Under workers compensation laws, any employee who is injured in the course of
employment is permitted to recover compensation for the injury:
A.only if the injury was due to employers gross negligence or intentional act.
B.regardless of whether the injury was due to employees gross negligence or intentional
act.
C.unless the injury was due to employees gross negligence or intentional act.
D.unless the injury was due to employers gross negligence or intentional act.
The person who agrees to pay for the use of real property owned by another is known as
the:
A.lessor.
B.warrantor.
C.tenant.
D.bailor.
A federal statute designed to provide executives of American companies with rules and
restrictions relating to paying persons in foreign countries to expedite business in these
foreign nations is the:
A.Civil Rights Act.
B.Trade Union Act.
C.Intellectual Property and Real Act.
D.Foreign Corrupt Practices Act.
A party to a contract who assigns his or her rights or delegates his or her duties to a
third party is:
A.allowed to hold the third party responsible for the contract execution.
B.held responsible only until the contract is assigned.
C.not responsible for the execution of the contract.
D.never free from the contract until it is completely executed.
The two most commonly used advance directives are ________________.
A. physicians and lawyers.
B. annuities and life insurance.
C. the living will and the durable power of attorney.
D.contracts and health insurance.
Entering into a contract with persons of legal age and normal mentality is considered
within the element of:
A.legality of purpose.
B.competency of the parties.
C.mutual agreement.
D.proper form.
The requirements for a license usually include paying an annual fee and passing an
examinationwritten, oral, or bothto ensure ____________.
A.revenue.
B.competence.
C.reliance.
D.disaffirmance.
States have enacted statutes that allow individuals to execute a(n) _____________
which documents their wishes regarding their health care in the event that they become
incapacitated
A. annuity
B. contract
C. insurance policy
D.advance directive
A bailment is a special kind of contract that is widely used in business and in:
A.personal affairs.
B.cultural activities.
C.academic research.
D.charitable institutions.
A(n) _____________ is a personal representative named by the court to perform as the
executor would, in instances in which the deceased person has not left a will.
A.judge
B.administrator
C.attorney
D.agent
The illegal entering of another persons premises for the purpose of committing a crime
is:
A.arson.
B.larceny.
C.theft.
D.burglary.
American firms are prohibited from bribing foreign officials under the:
A.Federal Indictments Act.
B.Civil Rights Act.
C.Federal Sentencing Guidelines.
D.Foreign Corrupt Practices Act.
The ones who are subject to lawsuits for negligence if their work results in injury to
parties with whom they have contracted, or to third parties, are:
A.chiropodists.
B.discologists.
C.discographers.
D.architects.
The liability of a manufacturer or seller for injury to purchasers, users, and third parties
is known as:
A.purchase liability.
B.customer care liability.
C.consumer liability.
D.product liability.
The Internal Revenue Service test aids businesses and individuals in distinguishing
employees from:
A.independent contractors.
B.employers.
C.agents.
D.executors.
Most cases of slander involve thoughtless statements that affect another person's:
A.reputation.
B.property.
C.capital.
D.nationality.
The Statute of Frauds only specifies that certain contracts must be in writing to be:
A.beneficial.
B.rewarding.
C.indistinct.
D.enforceable.
A federal statute passed to regulate Web sites that contain obscene material or child
pornography has now been ruled _____ by the courts because it violates due process of
law.
A.ambiguous.
B.ultra vires.
C.unconstitutional.
D.unnecessary.
The act of applying unlawful or improper pressure or influence to a person in order to
gain his or her agreement to a contract is known as:
A.fraud.
B.duress.
C.undue influence.
D.mistake.
Courts that are given the power to hear only certain kinds of cases have ______
jurisdiction.
A.original
B.appellate
C.pecuniary
D.special
In a malpractice lawsuit, the plaintiff must show that the professional defendant's act or
failure to act directly caused the injury or loss. This element of malpractice is called:
A.breach of duty.
B.negligence.
C.undue hardship.
D.proximate cause.
The UCC requirement that the warranty be part of the basis of the agreement has been
interpreted to mean that the buyer must have:
A.broken the promise.
B.relied on the promise and did not dismiss it as puffing.
C.made an implied warranty.
D.made a specific written statement.
__________ of insurance look to agents and brokers to recommend appropriate
coverage.
A.Sellers
B.Buyers
C.Directors
D.Executives
If the mistake in the contract is made by only one party, then it amounts to:
A.mutual mistake.
B.intentional mistake.
C.unilateral mistake.
D.conditional mistake.
A professional who designs devices or installations of a complex nature, such as bridges
and power-generating stations is called a(n):
A.engineer.
B.architect.
C.designer.
D.executive.
An agency contract is terminated by an act of the parties when the principal and the
agent have mutually agreed on:
A.renewal.
B.amendment.
C.continuation.
D.termination.
The Uniform Commercial Code was ______.
A.enacted in 1962 by Congress
B.prepared in 1952 by the National Conference of Commissioners
C.adopted by all 50 states in 1943
D. upheld by the Supreme Court as constitutional in 1971
Statements requiring that certain things be done or that specific events take place before
payment make the instrument a ___________ rather than commercial paper.
A.simple contract
B.statutory contract
C.contingent contract
D.specialty contract
When a physician or other health care provider acts negligently, the patient may sue for
the tort of __________.
A. adhesion
B. malpractice
C. breach
D. duress
Explain what amounts to a "contract of adhesion."
What are the criteria for a valid offer?
In what court would a case involving an appeal of a decision made by the Federal Trade
Commission be tried?
Give a brief explanation of the role of administrative agencies as instruments of the
government, and provide at least one example of an administrative agency.
Are mentally incompetent persons eligible to enter into a contract? Why or why not?
How is a sale completed if it is made by telephone?
Describe the Digital Millennium Copyright Act.
Discuss the Free Speech part of the First Amendment and what types of speeches may
be limited or silenced.
What effects do zoning regulations and environmental and safety regulations have on
the corporate sector?
Discuss the two types of actions that are prohibited under Chapter 7 of the bankruptcy
law.
What is the differentiating factor between real and personal property?
List the four different kinds of bailments.
