The duty of accountability requires the agent to use the principal’s property in an
authorized manner.
Joint venturers are shareholders of a joint venture corporation.
Collision insurance covers damage and loss that the insured causes to third parties.
Unlike wills, trusts are public documents, so properties cannot be transferred in privacy.
Under the Copyright Term Extension Act, individuals are granted copyright only for the
first 20 years from the year of first publication.
The duration of stay for a worker on an H-1B visa is three years, and this can be
extended another seven years.
A tortfeasor is personally liable to persons he or she injures and to the heirs of persons
who die because of his or her conduct.
The No Electronic Theft Act permits copyright holders to sue violators in a civil lawsuit
and recover monetary damages for works infringed.
A competitor can lawfully discover a trade secret by performing reverse engineering.
The partners of an LLP stand to lose only their capital contribution if the partnership
fails.
Title I of the Americans with Disabilities Act covers employers with less than 15
employees.
Assets owned by a living trust are subject to probate proceedings after the trustor’s
death.
A nonbreaching party may recover actual damages if the liquidated damages clause is
found to be a penalty.
In a criminal lawsuit, a private party is the plaintiff.
Chancery courts were also referred to as equity courts.
If a buyer has the right to reject nonconforming goods, the risk of loss remains on the
seller.
In a distributorship franchise, the franchisor provides a secret formula or the like to the
franchisee.
Nonbreaching parties can bring lawsuits against breaching parties for nominal damages
even though no financial loss has resulted from the breach.
Any law”whether federal, state, or local”that conflicts with the U.S. Constitution is
unenforceable.
A seller is liable if a product is materially altered after it leaves the seller’s possession
and the alteration causes an injury.
The buyer’s right to repair defective or nonconforming goods is termed right to cure.
Decisions of highest state courts are final and no further appeals can be made to any
other court even if it involves a question of law.
Undisclosed agencies are usually considered unlawful.
The Fair Housing Act of 1968 is especially applicable to a person who owns a building
of four or fewer units and occupies one of the units and leases the others.
Shareholders can bind the corporation to contracts.
According to the RICO Act, a pattern of racketeering involves at least ten
business-related criminal activities committed within a 15-year period.
A person who attempts to appropriate a living person’s name or identity for commercial
purposes is liable for tort of outrage.
The Age Discrimination in Employment Act permits age discrimination where it is a
necessary requirement of a job.
The Command School of jurisprudence believes that legal rules are unnecessary.
Alimony is awarded only to the female spouse.
If an invention has theoretical benefit and no useful purpose, it cannot be patented.
A member of an LLC is always entitled to remuneration for services performed for the
LLC.
The FTC is exclusively empowered to enforce the FTC Act.
Local governments are not exempt from the Occupational Safety and Health Act.
The debts, obligations, and liabilities of an LLC, whether arising from contracts, torts,
or otherwise, are solely those of the LLC.
Casual sales and transactions by nonmerchants are covered by the doctrine of strict
liability.
The Uniform Commercial Code (UCC) provides that title to goods can pass from seller
to buyer if the goods are not identified to a sales contract.
It is legal for some contracts to contain clauses that require the obligor to approve any
assignment of the contract.
In a partially disclosed agency, if the agent is made to pay the contract, the agent can
sue the principal for indemnification.
________ doctrine is a doctrine that says if a shareholder dominates a corporation and
uses it for improper purposes, a court of equity can disregard the corporate entity and
hold the shareholder personally liable for the corporation’s debts and obligations.
A) Alter ego
B) Transferred intent
C) Crashworthiness
D) Attractive nuisance
The crime of ________ involves the obtaining of property from another, with his or her
consent, induced by wrongful use of actual or threatened force, violence, or fear.
A) bribery
B) extortion
C) money laundering
D) embezzlement
Ella owns 30 shares of a company. She attends an annual shareholders’ meeting held for
the purpose of electing three directors to the board. The voting system used allows Ella
to multiply the number of shares she owns ( by the number of directors to be elected (1.,
which allows her to cast 90 votes for one candidate or a combination of multiple
candidates. The elected candidate won by a simple majority of votes. The voting system
used is ________.
A) straight voting
B) cumulative voting
C) supramajority voting requirement
D) supermajority voting requirement
________ damages are intended to compensate a nonbreaching party for the loss of the
bargain.
A) Compensatory
B) Liquidated
C) Nominal
D) Consequential
Where there has been a material breach of contract, the nonbreaching party ________.
A) cannot treat the contract as being in effect
B) is strictly liable to complete performance under the contract
C) is allowed to rescind the contract
D) can be sued by the breaching party
Which of the following instances depict the tort of outrage?
A) A farmer’s crops are stolen by an unidentified miscreant.
B) A gym teacher verbally abuses an overweight kid in every gym class and the kid
suffers severe emotional distress.
C) A cosmetics company uses Julia Roberts’ image in its advertisements without her
consent to depict her as its brand ambassador.
D) A beverage-manufacturer claims that its competitor uses coffee beans of poor
quality.
A corporation that is incorporated in another country is known as a(n) ________
corporation.
A) alien
B) domestic
C) public
D) municipal
A minor’s act of legally separating from his or her parents and providing for himself or
herself is known as ________.
A) ademption
B) revocation
C) annulment
D) emancipation
An agreement between two or more nations that is formally signed by an authorized
representative of each nation and ratified by each nation is defined as a(n) ________.
A) statute
B) charter
C) treaty
D) arraignment
________ refers to a condition that requires the occurrence of an event before a party is
obligated to perform a duty under a contract.
A) Condition precedent
B) Condition subsequent
C) Concurrent condition
D) Implied condition
________ is a principle that says if a testator leaves a specific devise of property to a
beneficiary, but the property is no longer in the estate when the testator dies, the
beneficiary receives nothing.
A) Ademption
B) Abatement
C) Bailment
D) Attestation
Mary is an accountant who was hired by Jupison, Inc. to file reports with the SEC. It is
discovered that the report contains some false statements of material facts. Discuss
Mary’s liability under Section 18(a) of the Securities Exchange Act of 1934. How can
Mary defeat the imposition of liability under this section?
What function of the law is being served when passing laws that prohibit discrimination
at workplaces?
A) keeping the peace
B) providing a basis for compromise
C) maintaining the status quo
D) promoting social justice
The corporation that is owned by another corporation in a share exchange is known as a
________ corporation.
A) subsidiary
B) parent
C) merged
D) holding
Which of the following duty is owed by the parties in a mutual benefit bailment?
A) duty of great care
B) duty of slight care
C) duty of ordinary care
D) duty of utmost care
A person who takes a negotiable instrument for value, in good faith, and without notice
that it is defective or overdue is referred to as a(n) ________.
A) holder
B) holder in due course
C) unqualified indorser
D) assignee
In order for a minor to be bound by a contract with an adult after he becomes an adult
himself, he must ________.
A) disaffirm the contract before reaching the age of majority
B) complete his or her contractual duties of restitution and restoration
C) ratify the contract after reaching the age of majority
D) place the adult in status quo till reaching the age of maturity
The conversion of an existing business to an LLC takes effect when ________.
A) the articles of organization are filed with the secretary of state
B) an agreement of amendment is filed with the secretary of state
C) a written operating agreement is prepared by the members
D) the first certificate of interest is issued
Which of the following is a duty that can be delegated despite an anti-delegation
clause?
A) need of unique expertise
B) exercise of personal skills
C) payment of money
D) requirement of subjective discretion
A(n) ________ is a person who receives material nonpublic information from another
person.
A) issuee
B) tippee
C) grantor
D) tipper
Which of the following is a similarity between patents and copyrights?
A) Both expire after a period of time and then enter the public domain.
B) Both are applicable to functional machines, processes, and asexually reproduced
plants.
C) Both subject the property they protect to the fair use doctrine.
D) Both are suspect to unlawful acquirement by the use of reverse engineering.
________ is a document filed by a secured party that ends a secured interest because
the debt has been paid.
A) Financing statement
B) Claims statement
C) Perfection statement
D) Termination statement
A promise or order is only considered negotiable if ________.
A) the promise or order to pay is unconditional
B) it is subject to or governed by another writing
C) the rights to the promise or order are stated in another writing
D) an express condition to payment is mentioned
An agency that occurs when a principal and an agent do not expressly create an agency,
but is inferred from the conduct of the parties is known as ________.
A) apparent agency
B) agency by ratification
C) implied agency
D) agency coupled with an interest
Which of the following statements is true of an apparent agency?
A) The authority of an apparent agent is implied from the conduct of the parties.
B) The principal is bound to the contracts entered into by an apparent agent.
C) The third-party is not bound to a contract created by an apparent agent.
D) The actions of an apparent agent create an apparent agency.
The legal term ________ is used to describe who has legal responsibility for raising a
child.
A) custody
B) annulment
C) probate
D) trust
Which of the following is true of the CAN-SPAM Act?
A) It regards spam email as a punishable offence.
B) It prohibits spammers from sending sexually-explicit email.
C) It approves businesses to use spam as long as they do not lie.
D) It provides a civil right of action to individuals who have received unsolicited spam.
When a new partner is admitted to a preexisting partnership, the new partner has
________.
A) unlimited liability for obligations of the partnership, both for those arising before
he/she joined the partnership, and those arising after joining
B) liability to the extent of his/her investment for obligations that arose before joining
the partnership, and unlimited liability for those arising afterwards
C) no liability for obligations arising from before he/she joined the partnership, and
limited liability for those arising afterwards
D) no liability for obligations arising from before he/she joined the partnership, and
unlimited liability for those arising afterwards
Jill Scott is an accountant with Cameron and Associates, a law firm in Seattle. The firm
maintains a checking account with Southern Rock Bank for its operating expenses. On
the 10th of every month, Jill gets an inventory report from the office manager listing the
office supplies that are needed. Jill places the appropriate orders with Office Depot and
writes them a check against the office’s checking account. Who is the drawee in this
banking transaction?
A) Jill Scott
B) Office Depot
C) Cameron and Associates
D) Southern Rock Bank
The ________, as amended, requires creditors to make certain disclosures to debtors in
consumer transactions.
A) Fair Credit Billing Act
B) Truth-in-Lending Act
C) Fair and Accurate Credit Transactions Act
D) Equal Credit Opportunity Act
Discuss the difference between comprehensive insurance and liability insurance.
While the trademark law protects registered trademarks, why was it inefficient against
cybersquatting?
What are the possible problems that can come up in a unilateral contract?
Why is a long-arm statute needed? What are the circumstances under which long-arm
jurisdiction is generally permitted over nonresidents?
How can an employer prove an affirmative defense if he is held vicariously liable for an
employee’s harassment by a supervisor?
Discuss the importance of providing a notice of termination for an agency.
Explain how the Workers’ Compensation Acts favor injured employees in response to
the unfairness of court proceedings under the common law.
If a trader draws a check for the goods purchased, what purpose does the check serve?
Are there any other functions of a negotiable instrument?
Explain how the Uniform Commercial Code (UCC) rejects the common law’s notion of
placing the risk of loss of goods on the parties to a contract.
Explain how the innkeepers’ statutes limit the liability of innkeepers.
Explain Chapter 7 liquidation bankruptcy with an example.
Why can’t an injured worker both receive worker’s compensation and sue the employer
for damages? Is there any exception to this?
Why are businesses and individuals increasingly opting for a nonjudicial dispute
resolution?
Give an example of a situation where a universal defense can be raised against an HDC.
Distinguish between a member-managed LLC and a manager-managed LLC.
How can the breaching party of a contract be made to perform the acts promised in the
contract? This remedy would apply for which types of contracts?
Describe the business judgment rule and analyze its importance with an example.
What are the strengths of forming regional organizations among countries? Explain
using the example of any international regional organization.