Which of the following is true of an assignment of a right?
A) The unconditional assignment of a contract right retains all the assignor’s rights.
B) The obligor is entitled to performance from the assignor.
C) The assignor loses the right to sue the obligor directly for nonperformance in an
unconditional assignment.
D) The obligor cannot raise personal defenses against the assignee.
The objective cognitive “understanding” test is used to determine ________.
A) duty of restoration
B) legal intoxication
C) legal insanity
D) duty of restitution
________ is a means for persons and businesses to protect themselves against the risk
of loss.
A) Abatement
B) Ademption
C) Insurance
D) Easement
Liquidated damages are enforceable if ________.
A) actual damages are difficult to determine
B) they are excessive or unconscionable
C) the damage is considered to be a penalty
D) damages do not result in a loss of money to the nonbreaching party
The Analytical School of jurisprudence maintains that the law should be ________.
A) shaped by logic
B) based on social behavior
C) set by the ruling class
D) based on morality
Taylor gives a power of attorney to his twin brother Corey, permitting Corey to make all
decisions on his behalf while he is abroad. As per the terms of the power of attorney,
Corey is allowed make decisions to purchase or sell stocks on Taylor’s behalf, sell
Taylor’s real estate if he deems it to be in Taylor’s best interest, pursue or defend
lawsuits on Taylor’s behalf, and make all other relevant decisions for Taylor. Which of
the following is a kind of power of attorney that would confer such powers to Corey?
A) a special power of attorney
B) a limited power of attorney
C) an implied power of attorney
D) a general power of attorney
A ________ is a document that is filed with the state that designates a trade name of a
business.
A) proprietorship statement
B) partnership agreement
C) fictitious business name statement
D) nomenclature affidavit
The ________ says a person whose extreme conduct recklessly causes severe emotional
distress to another person is liable for that emotional distress.
A) tort of outrage
B) shopkeeper’s privilege doctrine
C) doctrine of professional malpractice
D) Good Samaritan law
Which of the following is true of mislaid property with regard to the person who finds
it?
A) The finder becomes the owner of the property.
B) The finder has the right to share it with the original owner.
C) The finder is not entitled to possess the property.
D) The finder is absolved of any responsibility of the mislaid property.
In a manager-managed LLC, who among the following has the authority to bind the
LLC to contracts?
A) the nonmanager members
B) the member whose capital contribution to the LLC is the highest
C) managers
D) shareholders
A treaty, if signed between India, Pakistan, Bangladesh, and China, would be an
example of a ________.
A) multilateral treaty
B) bilateral treaty
C) statute
D) charter
________ are courts that hear matters of a specialized or limited nature.
A) General-jurisdiction trial courts
B) Inferior trial courts
C) Intermediate appellate courts
D) Chancery courts
Martha is an accountant who helped Oltup, Inc. to file registration statements with the
SEC. Oltup, Inc. then sold some of its securities. Sandra, who purchased the securities,
finds that there are quite a few misleading statements, and she files a lawsuit under
Section 18(a) of the Securities Exchange Act of 1934. Which of the following
statements is true of this scenario?
A) Martha can defeat liability if she can show that Sandra was aware of the misleading
statements when the securities were sold.
B) Martha is liable even if she can show that she acted in good faith.
C) Sandra can recover damages if she can prove that Martha acted negligently.
D) Sandra can recover damages if she can prove that she was in a privity of contract
relationship with Martha.
Which of the following is true of a corporate officer?
A) A corporate officer cannot be removed by the board of directors.
B) A corporate officer has the express authority to bind a corporation to contracts.
C) A corporate officer is not liable on an unauthorized contract if the corporation does
not ratify it.
D) A corporate officer is responsible for making policy decisions and employing the
major officers for the corporation.
Jesse owns a computer on which she sends and receives email. Abe monitors the emails
sent and received by Jesse from her email account. Under which of the following
circumstances would the ECPA consider Abe’s actions as not violating the law?
A) if Abe and Jesse are colleagues in the same organization
B) if Abe was the employer of Jesse
C) if Abe stole Jesse’s access codes to read her email
D) if Abe was investigating an illegal activity with an invalid warrant
Which of the following is true of intellectual property?
A) It falls under a category of property known as tangible rights.
B) It is less subject to misappropriation than is tangible property.
C) It is beyond the scope of federal and civil law.
D) It describes property developed through a creative process.
________ occurs where a principal is liable for an agent’s tortious conduct because of
the employment contract between the principal and agent, not because the principal was
personally at fault.
A) Enterprise liability
B) Restatement liability
C) Inherent liability
D) Vicarious liability
Which of the following is an accurate description of wrongful dishonor of a check?
A) A bank refuses to honor a properly payable check when there are sufficient funds in
the drawer’s account.
B) A bank refuses to honor a certified check when it is presented for payment more than
a year from its date of issue.
C) A bank refuses to honor a check which has been outstanding for only a few days
more than six months from the date of issue.
D) A bank refuses to honor an ordinary check when it believes that the payee has
altered the amount on the check.
Which of the following is characteristic of ethical fundamentalism?
A) It treats morality as if it were an impersonal mathematical calculation.
B) It dictates that people must choose the action or follow the rule that provides the
greatest good to society.
C) It doesn’t permit people to determine right or wrong for themselves.
D) It leaves ethical choices to individuals.
What is the similarity between the fictitious payee rule and the imposter rule?
A) Both hold the drawee liable to the instrument.
B) Both hold the drawer liable to the instrument.
C) Both put the risk of loss on the forger.
D) Both put the risk of loss on the indorsee.
If a state enacts a law that increases its tax on imported automobiles but not on
American-made automobiles, it violates the ________ of the U.S. Constitution.
A) Equal Protection Clause
B) Foreign Commerce Clause
C) Supremacy Clause
D) Due Process Clause
Which of the following is a requirement for a common law marriage to be valid?
A) that a marriage license was obtained
B) that there was a legal marriage ceremony
C) that the parties live together
D) that the parties have a valid prenuptial agreement
________ is a situation in which a party to a contract renders performance exactly as
required by the contract.
A) Substantial performance
B) Strict performance
C) Anticipatory repudiation
D) Restitution
Why is a discharge of debt granted?
A) to divide the bankruptcy estate equally among all creditors
B) to relieve the debtor of the responsibility to pay some of or all the debt
C) to divide the bankruptcy estate according to the debt owed to each creditor
D) to suspend certain legal actions by creditors against a debtor’s property
7 The accountant-client privilege is a law that provides that ________.
A) an accountant cannot be a witness against a client in a federal wire fraud case
B) an accountant’s paperwork be taken as prima facie evidence against a client in a
court action
C) an accountant cannot be called as a witness against a client in a court action
D) work product immunity is not applicable to an accountant
Emerold LLP is an accounting firm. It has been hired to audit Blue Link, Inc.’s financial
statements. The auditors of Emerold find that financial statements fairly represent the
company’s financial position, but the accounting standards do not follow GAAPs.
Which of the following would the auditors provide?
A) an unqualified opinion
B) a qualified opinion
C) an adverse opinion
D) a disclaimer of opinion
Which of the following statements is true of the International Court of Justice?
A) It is the executive branch of the United Nations that helps interpret international law.
B) It only hears cases of nations, and not of individuals and businesses.
C) It does have the authority to hear cases involving treaties and UN charters.
D) It is headed by the secretary-general of the United Nations.
Which of the following best describes a breach of contract?
A) a situation in which one or both parties to a contract do not perform their duties
B) a situation in which both the parties agree to substitute the existing contract
C) a situation in which an intended beneficiary holds a party liable for not performing
to his satisfaction
D) a situation in which one or both parties intend to assign the benefits to a third party
In order to use the defense of assumption of risk, the defendant has to prove that the
plaintiff ________.
A) assumed there was no risk involved and entered into the activity that injured him or
her
B) was injured after the defendant’s liability for the risk ended
C) was injured in an activity that had no risk of any manner
D) had knowledge of the specific risk and voluntarily presumed the risk
Which of the following is true in the event that an assignee does not provide a notice of
assignment to the obligor?
A) The assignee’s only course of action is to sue the obligee for damages.
B) The assignee cannot sue the assignor for damages.
C) The obligor’s only recourse is to sue the assignee for damages.
D) The assignee cannot sue the obligor to recover payment.
Sometimes a party will register a domain name of another party’s trademarked name or
a famous person’s name. This is called ________.
A) licensing
B) hacking
C) copyright infringing
D) cybersquatting
Sam wants to file a petition for bankruptcy. Which of the following is true in this
context?
A) Sam need not submit a list of creditors; it is obtained by the court upon
investigation.
B) Sam’s bankruptcy petition cannot be filed electronically.
C) Only Sam’s attorney can file his bankruptcy petition.
D) Sam’s attorney is liable for perjury if information filed by Sam is incorrect.