Miranda Airways, a commercial air carrier, has a contract with Wurtherton, Inc., an
airplane manufacturer, to purchase a new plane. Due to a sudden shortage of cash,
Miranda Airways goes to MetrosBank. MetrosBank issues a document to Wurtherton
that if Miranda does not pay for the transaction, MetrosBank would. Wurtherton
considers the offer, and then sends an acceptance with additional terms. The additional
terms stipulates that Miranda Airways could have the new airplane for a period of 10
years, and then return it to Wurtherton. Miranda Airways agrees to the acceptance, and
Wurtherton hands the new airplane over to them. What is the nature of the contract
between Miranda Airways and Wurtherton?
A) sale of goods
B) lease
C) counteroffer
D) option contract
Throughout Christianity, divine and natural laws have been issued in the form of
________.
A) edicts
B) conventions
C) amendments
D) canons
A licensing statute enacted to protect the public is called a(n) ________ licensing
statute.
A) regulatory
B) contracting
C) revenue-raising
D) accounting
________ refers to a statute that requires an injured person to bring an action within a
certain number of years from the time that he or she was injured by a defective product.
A) Statute of limitations
B) Statute of frauds
C) Statute of repose
D) Statute of general application
Jerome wears a t-shirt that bears a picture of the current U.S. president. Under this
picture, there are words which imply that the President is doing a bad job of running the
country. In accordance to the Freedom of Speech Clause, which of the following is
valid?
A) Criticizing the current president is fully protected speech and Jerome cannot be
prosecuted.
B) Jerome could be arrested as his t-shirt violates the Freedom of Speech doctrine.
C) Jerome wearing that t-shirt is an instance of limited protected speech.
D) Wearing that t-shirt makes Jerome liable for prosecution on the basis of defamatory
language.
Martin, who wants to sell a house he owns, authorizes his concierge, Wilhelm, to find a
potential buyer, and finalize a deal above a stipulated price. Wilhelm contracts Chris, a
real estate broker, and intends him to only find a potential buyer and send them over to
Wilhelm for the sale. Martin then contracts ReNowait Goodhouses, a home
improvement company to renovate the house. ReNowait completes their work and
Martin pays them. Chris then searches for a suitable buyer and finds one in George.
George buys the house and Chris is paid for his services. Which of the following roles
does ReNowait Goodhouses perform?
A) agent
B) independent contractor
C) principal
D) trustee
What is a judicial decision?
A) a decision issued by the executive branch in a state of emergency
B) a decision about an individual lawsuit issued by a federal or state court
C) a codified law passed by the state legislature
D) a decision issued by the legislative branch to establish courses of conduct that
covered parties must adhere to
The most prevalent age of majority is ________ years of age for both males and
females.
A) 18
B) 25
C) 50
D) 51
The ________ requires all contracts for the sale of goods costing $500 or more and
lease contracts involving payments of $1,000 or more to be in writing.
A) parol evidence rule
B) open price term
C) firm offer rule
D) Statute of Frauds
An express agency agreement that is often used to give an agent the control to sign
legal documents on behalf of the principal is known as a(n) ________.
A) assignment
B) accommodation
C) power of attorney
D) letter of credit
Which of the following reasons can be used to file an objection to the discharge of a
debt?
A) huge amount of unsecured debts by the debtor
B) lack of real property to cover the debts incurred
C) poor credit score of the debtor
D) misrepresentation of financial condition
Stelwire LLC, a vintage car dealer, offers to sell a 1964 Ford Thunderbolt for $80,000
to Ralph. Ralph accepts the offer and insists on adding a satellite radio to the car. This is
a proposed addition to the contract. What is the nature of the contract between Ralph
and Stelwire under the common law?
A) counteroffer
B) open terms contract
C) proposed additions
D) lease contract
Parris Boutique decides to lease a new property of Green Floor Company. To finance
the acquisition, Parris goes to a local bank. The bank purchases the property from Green
Floor and leases it to Parris Boutiques. Which of the following is true about this
scenario?
A) The lessee is liable to make payments to the lessor.
B) The supplier receives the physical delivery of the property.
C) The lessor is liable for the construction of the property.
D) The supplier delivers the property directly to the lessor.
Which of the following occurs when one party intentionally hides a material fact from
another party?
A) fraud in the inducement
B) fraud in concealment
C) silence as misrepresentation
D) misrepresentation of law
A(n) ________ fee is a fee for such things as advertising and promotional campaigns
and administrative costs.
A) lease
B) royalty
C) assessment
D) contingency
Anexwell Analytics is looking to strengthen its talent pool by recruiting subject matter
experts who can help guide the company’s growth. The company hires Kenneth, a data
analytics professor from a private college, to serve on its board as a technology adviser.
Which of the following roles has Kenneth adopted in the above scenario?
A) outside director
B) ombudsman
C) corporate officer
D) corporate agent
A(n) ________ is a partnership created for a fixed duration.
A) partnership for a term
B) partnership at will
C) ordinary partnership
D) limited partnership
The Americans with Disabilities Act Amendments Act (ADAAA) of 2008 is a federal
statute that prohibits discrimination on the basis of a physical or mental disability in
places of public accommodation operated by private entities.
Which of the following must necessarily be met for a corporation to elect as a statutory
close corporation?
A) The corporation must have 100 or more shareholders.
B) The corporation must have 50 or fewer shareholders.
C) The corporation must contain a board of directors.
D) The corporation must have a set of bylaws.
Which of the following is true about a minor’s right to disaffirm a contract?
A) A minor must reach the age of majority to disaffirm a contract.
B) Contracts that come under the necessaries of life can be disaffirmed by minors.
C) Minors are exempt from duty of restoration during the period of minority.
D) A minor can disaffirm a contract any time prior to reaching the age of majority.
Ben was talking to Harry who was drunk. Harry agreed to give his car to Ben as a token
of friendship. Once sober, Harry asks Ben to return his car. This contract is considered
________.
A) valid
B) void
C) voidable
D) unenforceable
Ronald, the purchasing manager of Tellys Supermarket in Georgia, was asked to buy an
order of the latest videogame console, FunCase, to keep in the supermarket. However,
due to a truckers’ strike, he had to make a trip to the FunCase warehouse, which was in
Florida. Ronald paid for the trip himself, went to the warehouse, procured the shipment,
and returned. After he got back, Tellys Supermarket paid Ronald for the trip he made to
Florida. Which of the following duties of the principal did Tellys Supermarket perform
here when they paid Ronald for the trip to Florida?
A) duty to cooperate
B) duty to reimburse
C) duty to compensate
D) duty to indemnify
The Critical Legal Studies School of jurisprudence believes that ________.
A) free market forces and market efficiency are the most important principles
underlying the law
B) past court decisions must be analyzed and criticized in developing new law
C) subjective decision making by judges based on general notions of fairness is
appropriate
D) one of the main purposes of law is to serve as an official voice of criticism of those
in power
Which of the following refers to a limited liability company that has a specified term of
duration?
A) S corporation
B) C corporation
C) term LLC
D) at-will LLC
Which of the following statements is true of deposition?
A) A deposition has to be a written statement.
B) A witness’ deposition is voluntary and not pursuant to a court order.
C) A deposition can only be given after the trial.
D) A deponent is given a chance to correct his or her deposition.
A ________ is a right of possession that returns to the grantor after the expiration of a
limited or contingent estate.
A) reversion
B) remainder
C) quiet title action
D) nonconforming use
Which of the following is true of vertical mergers?
A) They do not create an increase in market share.
B) They may expand the acquiring firm’s product market.
C) They are mergers between firms in unrelated businesses.
D) The merging firms serve identical markets.
Owners of a corporation who elect the board of directors and vote on fundamental
changes in the corporation are known as ________.
A) spectators
B) shareholders
C) electors
D) associates
A stop-payment order can be ordered only by the ________.
A) drawee
B) drawer
C) payee
D) indorser
Which of the following is an example of an irrevocable offer?
A) counteroffer
B) gift promise
C) option contract
D) accommodation
The ________ rule states that a merchant who offers to buy, sell, or lease goods and
gives a written and signed assurance on a separate form that the offer will be held open
cannot revoke the offer for the time stated or, if no time is stated, for a reasonable time.
A) gap-filling
B) firm-offer
C) mirror image
D) open term
Which of the following is true of liabilities of LLCs?
A) Members of the LLC are liable to the extent of their capital contribution.
B) Managers of LLCs are personally liable for the debts, obligations, and liabilities of
the LLC.
C) LLCs are not liable for any loss or injury caused by their employees.
D) LLCs are not liable for losses caused due to negligence of their managers during the
ordinary course of business.
Which of the following legislations makes it a criminal offense to willfully make any
untrue statement of material fact in a registration statement filed with the SEC?
A) Section 24 of the Securities Act of 1933
B) Tax Reform Act of 1976
C) Private Securities Litigation Reform Act of 1995
D) Section 10(b) of the Securities Exchange Act of 1934
Henry works as an assembly line worker at MM Corporation. Two weeks back, he
suffered multiple fractures while trying to repair a block in the machinery. The doctors
have advised him to take two months of rest to recuperate from this accident. However,
Henry is reassured that the ________ that he is eligible for will provide him with a
monthly income until he is fit to return to work.
A) life insurance
B) disability insurance
C) health insurance
D) homeowner’s policy