If the object of an offer is made illegal after the acceptance of the offer, it is termed as a
supervening illegality.
The bank where the payee or holder has an account is called the collecting bank.
A complaint contains a “prayer for relief” for a remedy to be awarded by the court.
The right to share in the profits of the partnership is considered to be the right to share
in the earnings from the investment of capital.
A bailment does not involve transferring title to the goods to the bailee.
A statement of opinion is a commendation of goods made by a seller or lessor.
Undue influence can be inferred from the facts and circumstances surrounding the
making of a will or trust.
If a breaching party refuses to pay the judgment of a contract breach, the nonbreaching
party can seize the properties of the breaching party without a court order.
A direct beneficiary to a contract can lawfully assign his or her expected future rights to
an assignee.
A property that is no longer in the estate of a testator cannot be passed on to a
beneficiary in spite of the terms in the will.
A bailment at will cannot be terminated by a bailee before the expiration of the term.
No state recognizes marriage between persons of the same sex.
The written document authorizing a proxy is also called a proxy.
A certified public accounting firm may provide tax services to audit clients if such tax
services are preapproved by the audit committee of the client.
The surviving general partners who have not engaged in any wrongdoing have the right
to wind up the partnership.
Canon law is a complex legal system based on the ideology and theology of the Torah.
A prenuptial agreement must be in writing to be enforced.
The FDA cannot withdraw approval of any previously licensed drug.
Misrepresentation of law will be allowed as grounds for rescission of the contract if one
party to the contract is a professional who should know what the law is and
intentionally misrepresents the law to a less sophisticated contracting party.
Service of process is usually accomplished by personal service of the summons and
complaint on the defendant.
A Chapter 13 plan of payment cannot be modified if the debtor’s income subsequently
decreases.
The Articles of Confederation did not provide the Congress with the power to regulate
commerce with foreign countries, or to regulate interstate commerce.
The UCC places the risk of loss of an incomplete item on the payee.
Nontrademarked names do not qualify for protection under the Anticybersquatting
Consumer Protection Act.
The Consumer Product Safety Act regulates motor vehicles and firearms.
Accountants cannot be held liable for their negligence in preparing unaudited financial
statements.
The U.S. Constitution, itself, provides that it may be amended to address social and
economic changes.
When the pricing term in a contract includes the costs of the goods and the costs of the
insurance and freight, the buyer bears the loss of risk during transportation.
Undue influence occurs when one person takes advantage of another person’s mental,
emotional, or physical weakness and unduly persuades that person to enter into a
contract.
The testimony and evidence at trial are recorded and stored for future reference in a
general-jurisdiction trial court.
A written stop-payment order is effective for one year.
What is the difference between Natural Law School and Historical School of
jurisprudence?
A) Natural Law School emphasizes law shaped by logic, while Historical School
emphasizes law enforced by the ruling party.
B) Natural Law School emphasizes law shaped by sociological goals, while Historical
School emphasizes law based on a moral theory.
C) Natural Law School emphasizes law shaped by logic, while Historical School
emphasizes law based on a moral theory.
D) Natural Law School emphasizes a moral theory of law, while Historical School
emphasizes law based on social traditions and customs.
Patents, copyrights, trademarks, and trade secrets are types of ________ property.
A) immovable
B) real
C) intellectual
D) destructible
A(n) ________ is established when one party licenses another party to use the first
party’s trade name, trademarks, commercial symbols, patents, copyrights, and other
property in the distribution and selling of goods and services.
A) proprietorship
B) franchise
C) implicit contract
D) general partnership
Which of the following statements is true of national origin discrimination?
A) It forbids discrimination against persons because of their accents.
B) It does not occur if an employer treats persons unfavorably because they are married
to a person of a certain national origin.
C) It does not include discrimination against persons of a certain culture.
D) It forbids an English-only rule that is limited to the work area.
Dean, a director of a business consultancy firm, holds a meeting of the board of
directors of the company. During the voting process over a critical issue, Dean
unscrupulously casts two votes instead of the one that he is entitled to. Dean’s conduct
is an example of a ________.
A) breach in the duty of obedience
B) denial of the right of refusal
C) piercing of the corporate veil
D) violation of the business judgment rule
Elizabeth signs a contract to purchase a new car from Spadace Motors. She has not yet
paid for the car and Spadace Motors has not yet delivered the car to Elizabeth. This is
an example of a(n) ________ contract.
A) void
B) unenforceable
C) executed
D) executory
Which of the following is evaluated using a risk-utility analysis?
A) defect in packaging
B) defect in design
C) failure to add disclaimer
D) failure to provide adequate instructions
________ is a shipping term in a contract that requires the seller to bear the expense
and risk of loss until the goods are unloaded from the ship at its port of destination.
A) Ex-ship
B) No-sale, no arrival
C) Free on board point of shipment
D) C.I.F.
Heather chooses to buy a scarf at Macy’s and reads the price on the tag as $50. She uses
her credit card to pay for the scarf, but post-purchase, she notices that the price tag
actually says $500. This is an instance of a(n) ________.
A) bilateral mistake
B) mutual mistake of value
C) innocent misrepresentation
D) unilateral mistake
The first step in registering a domain name is to ________.
A) pay an annual fee for the registration
B) submit an online registration application
C) determine whether any other party already owns the name
D) search for famous names of companies or people
The ________ requires employers to verify whether prospective employees are either
U.S. citizens or otherwise authorized to work in the country.
A) IRCA
B) ERISA
C) OSHA
D) FMLA
In order to be negotiable, a promissory note must contain an unconditional ________.
A) acknowledgement of debt with or without a promise to pay
B) order to a drawee to pay a payee
C) written promise to pay
D) acknowledgement of debt with a conditional promise to pay
________ is an action to undo a contract.
A) Rescission
B) Recession
C) Restitution
D) Retribution
________ includes the duty not to usurp an LLC’s opportunities, make secret profits,
secretly deal with the LLC, secretly compete with the LLC, or represent any interests
adverse to those of the LLC.
A) Duty of discharge
B) Duty of restitution
C) Duty of loyalty
D) Duty of resolution
An employee whose employer breaches an employment contract can recover lost wages
or salary as ________ damages.
A) nominal
B) liquidated
C) compensatory
D) consequential
A(n) ________ is a document required to be filed by an equity security holder that
states the amount of his or her interest against the debtor.
A) proof of claim
B) proof of interest
C) voluntary petition
D) involuntary petition
A ________ is an instrument that gives a creditor a security interest in the debtor’s real
property that is pledged as collateral for a loan.
A) credit report
B) letter of credit
C) remittance advice
D) deed of trust
What is a decree of divorce?
A) a petition filed by the spouse seeking divorce
B) a court order that terminates a marriage
C) a set of rules on how assets are to be divided after divorce
D) a court order placing limitations on a dangerous partner to go near the other partner
Which of the following types of employment discrimination is carried out against a
person because of his or her heritage or cultural characteristics?
A) race discrimination
B) age discrimination
C) national origin discrimination
D) genetic information discrimination
In states where an LLC may be organized by only one member, ________ can obtain
the benefit of the limited liability shield of an LLC.
A) LLPs
B) sole proprietors
C) S corporations
D) C corporations
________ of the Uniform Commercial Code establishes the rules and principles that
regulate check-like accounts offered by financial institutions, other than banks.
A) Article 3
B) Article 4
C) Article 4A
D) Article 5
The ________ requires certain firms to notify the Federal Trade Commission and the
Justice Department in advance of a proposed merger and comply with a thirty-day
waiting period before the merger is approved.
A) Celler-Kefauver Act
B) Hart-Scott-Rodino Antitrust Improvement Act
C) Robinson-Patman Act
D) Sherman Act
Emily executes a promissory note in the name of Sonia but does not specify a time for
repayment. This promissory note is an example of a(n) ________ instrument.
A) order
B) time
C) demand
D) indorsed
A contract is formed only by the performance of the requested act in a(n) ________
contract.
A) bilateral
B) unilateral
C) void
D) unconscionable
Which of the following is true about a corporation’s incorporation in a state?
A) Domestic corporations can incorporate into only one state.
B) Domestic corporations can incorporate into all states in which they conduct business.
C) Alien corporations can only incorporate into one state.
D) Foreign corporations can incorporate into more than one state.
A comedy television show performing a satire involving a famous celebrity is an
example of ________.
A) public use doctrine
B) parody fair use
C) copyright infringement
D) basic trademark dilution
Alan buys a toaster from a retail store where he is promised by the salesperson that the
toaster will operate optimally for two years at the least. The salesman’s assurance is an
example of a(n) ________.
A) express warranty
B) liability
C) statement of opinion
D) disclaimer
Which of the following is true of patent laws?
A) They allow inventors the right to license their inventions for an indefinite period of
time.
B) They are legislated and enforced at the state level.
C) They don’t allow patent applications to be submitted electronically.
D) They are enacted to incentivize inventors and prevent infringement of inventions.
The perfect tender rule delivery allows for buyers to ________.
A) reject goods that conform to all aspects of a contract
B) seek remedies against the seller for accepting the deliverance of conforming goods
C) reject or accept a part or whole of a shipment of nonconforming goods
D) seek remedies against other buyers who accept nonconforming goods from the same
seller
The legal power to accept an offer belongs to the ________.
A) offeror
B) offeree
C) agent
D) seller
The ________ is a federal statute passed in 1990 that requires food manufacturers and
processors to provide nutrition information on many foods and prohibits them from
making scientifically unsubstantiated health claims.
A) Food, Drug, and Cosmetic Act
B) Health Care and Education Reconciliation Act
C) Nutrition Labeling and Education Act
D) Patient Protection and Affordable Care Act
________ is a method of acquiring ownership, when a manufacturer purchases raw
materials and then manufactures a finished good.
A) Gifting
B) Producing
C) Capturing
D) Leasing
Analyze the concept of acceptance in terms of contract law.
Discuss the different circumstances under which right to stop delivery of goods in
transit can be exercised.
Identify and discuss the act that protects consumer-debtors from abusive, deceptive, and
unfair practices used by debt collectors.
Explain with an example how a holder who does not qualify as a holder in due course in
his or her own right becomes a holder in due course.
Analyze, in brief, the rights of general partners.
Define chain of distribution, and examine the application of strict liability to its parties.
Elaborate on the reasonableness of such a doctrine, in this context.
Why can’t an employer discriminate against an employee based on the race of his or her
associations outside the organization? Give an example.
Anita Rodriguez registers multiple domain names resembling the names of famous
personalities and companies to gather attention to her personal business. Under the
circumstances, can the ACPA statute be applied?
Why would a buyer want to rescind an existing contract with a seller?
Explain the function of law in shaping moral standards with an example.
What are the elements that must be shown to prove that a contract is unconscionable?
What is the course of action taken by a court if a contract is found to be
unconscionable?
Is a hostile tender offer an ethical course of action for a company?
Explain implied warranties and their purpose in warranty law.
Discuss a situation where a legal right can be assigned to a third party with an example.
Compare and contrast the termination of an agency by impossibility of performance and
termination of an agency by operation of law.
When does a defective formation occur?
Analyze the duties that an agent owes to a principal.
Has the enactment of the CAN-SPAM Act freed Internet users of spam, or has it
provided a means for businesses to use spam in a more proficient manner?
Analyze the requirements of a consideration.