The executive branch of the federal government has the power to enact the law.
A proxy contest happens when insurgent shareholders challenge the incumbent
directors.
Regulation A is a regulation that permits an issuer to sell $50 million of securities
pursuant to a simplified registration process.
The duty of restitution is a rule that states that a minor is obligated only to return the
goods or property he or she has received from the adult in the condition it is in at the
time of disaffirmance.
The board of directors is responsible for formulating policy decisions that affect the
management, supervision, control, and operation of the corporation.
The destruction of the subject matter of a contract prior to performance is an example of
an objective impossibility that excuses performance.
The ® symbol is used to designate marks that have not been registered with the U.S.
Patent and Trademark Office.
Strict liability is imposed for abnormally dangerous activities that cause injury or death.
To be negotiable, an instrument must contain a promise or an order to pay a fixed
amount of money.
Extortion refers to the threat to expose something about another person unless that other
person gives money or property.
Reversions do not have to be expressly stated because they arise automatically by law.
Under Title VII, an employer is under a duty to reasonably accommodate the religious
beliefs of its employees if doing so does not cause an undue hardship on the employer.
Under the Bankruptcy Code, a trustee in a Chapter 11 proceeding is not given authority
to assume or reject executory contracts.
A contract is voidable by the innocent party when it is proved that it was entered into by
fraud in the inducement.
The prefiling period begins to run when the registration statement is filed with the SEC
and continues until the registration statement is declared effective by the SEC.
Judges are free to define morality based on their individual views.
Unless otherwise indicated, sales contracts are presumed to be shipment contracts rather
than destination contracts.
Secured credit does not require any collateral from the debtor to minimize the risk.
The nonrecordation of a mortgage does not affect the legality of the instrument between
the mortgagor and the mortgagee.
A franchise is established when one party licenses another party to use the franchisor’s
trade name, trademarks, commercial symbols, patents, copyrights, and business model
in the distribution and selling of goods and services.
Plaintiffs can allege multiple product defects in one lawsuit.
The Law and Economics School of jurisprudence believes that promoting market
efficiency should be the central goal of legal decision making.
The Commerce Clause of the U.S. Constitution gives the federal government the power
to regulate commerce with foreign nations.
A convention is an agreement or a contract between two or more nations that is
formally signed by an authorized representative and ratified by the supreme power of
each nation.
The unfair advantage is intended to prevent wealthy companies from overwhelming the
competition in a given market.
Upon nonpayment of rent or other significant or repeated violations of the lease, the
landlord may evict the tenant.
Rawls’ social justice theory can be described as wanting fairness in justice.
An attorney examines an abstract of title and renders an opinion concerning the status
of the title when assuring a marketable title.
A tenancy in common may be created by express words.
Color discrimination cases are brought more frequently than other types of
discrimination.
The FDA does not have the authority to regulate medicinal devices, such as heart
pacemakers and defibrillators.
The Sixth Amendment guarantees that a criminal defendant has the right to a public
jury trial.
To prove fraud, it must be shown that the wrongdoer made a false representation of
material fact.
Banks are obligated to certify all checks.
Common law of contracts refers to contract law developed primarily by state courts.
Predatory pricing that is intended to drive out competition has been held to violate
Section 2 of the Sherman Act.
Administrative dissolution is the dissolution of a corporation that has begun business or
issued shares upon recommendation of the board of directors and a majority vote of the
shares entitled to vote.
The person who is given a life estate is called the life assignee.
All LLPs have a general partner who is personally liable for the debts and obligations of
the partnership.
There is no world executive branch that can enforce international law.
A ________ is an arrangement in which two or more business entities combine their
resources to pursue a single project or transaction.
A) limited partnership
B) license agreement
C) joint venture
D) franchise
To which of the following type of mortgages does the antideficiency statute apply?
A) foreign currency mortgages
B) home improvement mortgages
C) first purchase money mortgages
D) second purchase money mortgages
What School of jurisprudential thought is reflected in documents such as the U.S.
Constitution, the Magna Carta, and the United Nations Charter?
A) the Natural Law School
B) the Historical School
C) the Sociological School
D) the Analytical School
Stan and Stella had promised to marry each other and signed a written contract stating
their intentions. They planned to marry a year from the date of signing the contract.
After the signing, Stan proposed to Stella and presented her with an engagement ring.
However, two months before the marriage, Stan called off the engagement. If the state
in which they reside follows the fault rule for breaking engagements, which of the
following would be true?
A) The ring will remain with Stella.
B) The ring will be returned to Stan.
C) The ring will be auctioned and the proceedings will be shared between the couple.
D) The ring will be owned by whoever marries first after the engagement.
Which of the following is true of the International Monetary Fund?
A) The IMF is a federal body that consists of representatives of all the states and federal
experts in the United States.
B) The IMF is funded from the Superfund created by the Comprehensive
Environmental Response, Compensation, and Liability Act.
C) The IMF is an autonomous agency under the UN which promotes sound monetary,
fiscal, and macroeconomic policies worldwide.
D) The IMF is responsible for providing one-time grants to needy countries with no
terms and conditions attached to the assistance.
The function of the judicial branch of the federal government is to ________.
A) interpret and determine the validity of the law
B) enact the law
C) enforce the law
D) act as a liaison between legislative and the executive branches
Stella is injured in a motor accident and is brought to the hospital by a passerby. Stella
subsequently slips into a coma. The doctors perform the necessary medical procedures
to save her life. Stella comes out of her coma after two months and is released from the
hospital after the doctors are satisfied with her recovery. Under the doctrine of
________, Stella has to pay the hospital for its services.
A) express contract
B) quasi-contract
C) implied-in-fact contract
D) formal contract
Which of the following is true of the Sarbanes-Oxley Act?
A) It penalizes companies that violate ethical standards that are not enacted by the rule
of law.
B) It prevents companies from acting only in the interest of maximizing the wealth of
its stakeholders.
C) It requires public companies to disclose whether it has a code of ethics for senior
financial officers.
D) It penalizes companies that fail to contribute toward social issues.
Which of the following is a function of discovery?
A) certifying a class action
B) preserving evidence
C) adjudicating a dispute
D) prosecuting a violation
A check issued by a bank for which the customer has paid the bank the amount of the
check and a fee is called a(n) ________ check.
A) certified
B) stale
C) cashier’s
D) ordinary
Which of the following is true of the Sarbanes-Oxley Act?
A) It permits a person to knowingly alter documents to influence a federal
investigation.
B) It allows public companies to make personal loans to their directors.
C) It requires the submission of CEO and CFO certification with the company’s annual
report.
D) It entitles an officer to continue in his or her post even after being guilty for
securities fraud.
An equal protection challenge to a statute that treats adults of different ages differently
would be decided under the ________.
A) intermediate scrutiny test
B) rational basis test
C) strict scrutiny test
D) majority scrutiny test
Which of the following is true of a debtor’s bankruptcy estate?
A) Only intangible personal property constitutes the bankruptcy estate.
B) No property solely owned by the debtor is exempted from constituting the
bankruptcy estate.
C) Creditors are allowed to claim exempt property.
D) All interests of a debtor’s spouse are included in the bankruptcy estate.
Treaties arranged by international organizations like the United Nations are known as
________.
A) arraignments
B) easements
C) amendments
D) conventions
Which of the following is true of treasury shares?
A) They cannot be issued by the corporation.
B) They cannot be voted by the corporation.
C) They are owned by shareholders.
D) They are paid dividends for.
The plaintiff in a product liability lawsuit has suffered $100,000 worth of damages from
an automobile accident. A defect in manufacture of the plaintiff’s vehicle is found to be
60 percent responsible for the accident, while the plaintiff’s own negligence is 40
percent responsible. Under the doctrine of comparative negligence, how much would
the defendant”the manufacturer of the vehicle”have to pay the plaintiff in damages?
A) $60,000
B) $40,000
C) $100,000
D) The defendant would not have to pay any amount in damages.
The term ________ refers to the computer and electronic technology that makes it
possible for banks to offer electronic payment and collection systems to bank
customers.
A) electronic protocols application software (EPAS)
B) electronic funds transfer system (EFTS)
C) originating depository financial institution (ODFI)
D) open real-time currency application (ORCA)
Which of the following is true of the management of a general partnership?
A) The number of votes a general partner has depends on the proportion of his or her
capital investment.
B) Partnership matters are decided by unanimous agreement only.
C) Only general partners in the board of directors have the authority to participate in the
management.
D) If the vote is tied, the action being voted on is considered to be defeated.
Gloria’s employer deducted 20 percent of her pay in the month of January due to
personal problems he had with her. Under the Lilly Ledbetter Fair Pay Act, by when
should Gloria file an employment discrimination claim?
A) within the month of July the same year
B) within the end of December the same year
C) within the month of June the same year
D) within the month of January the next year
Parties to a contract agree in advance to pay ________ damages if the contract is
breached.
A) nominal
B) compensatory
C) liquidated
D) consequential
A(n) ________ is a type of plea where the defendant pays a penalty without admission
of guilt.
A) nolo contendere
B) arraignment
C) indictment
D) plea bargain
A malicious prosecution arises when the plaintiff from a previous lawsuit becomes the
defendant and vice versa.
A(n) ________ is an agreement in which the accused admits to a lesser crime than
charged, and in return, the government agrees to impose a lesser sentence than might
have been obtained had the case gone to trial.
A) plea bargain
B) indictment
C) arraignment
D) nolo contendere
________ refers to the process of looking for a favorable court without a valid reason.
A) Forum shopping
B) Accommodation
C) Concurrent selection
D) Forum advancement
What was the key factor in the development of the English common law?
A) the development of forensic science in helping decide cases
B) the supremacy of the king and his intervening powers when deciding cases
C) the use of precedence of past cases for judges to decide similar cases
D) the subjective decision making of judges when it came to similar cases
Which of the following contracts is required to be in writing in most states?
A) contracts for the sale of goods for $100
B) contracts for the lease of goods with payments of $500
C) promises to write a will
D) contracts falling under the promissory estoppel
An award of ________ orders the breaching party to complete the acts promised in a
contract.
A) reformation
B) injunction
C) restitution
D) specific performance
Which of the following is true of sexual harassment?
A) Same-sex harassment is not covered under Title VII.
B) The plaintiff-employee is not obligated to take advantage of any preventive
opportunities provided by the employer.
C) Sending offensive emails is considered sexual harassment.
D) Absence of a complaint mechanism makes an employer liable for disparate-impact
discrimination.
An issuer must have ________ to qualify as a well-known seasoned investor.
A) issued $1 billion of securities in the previous three years
B) issued $1 million of securities in the previous three years
C) at least $900 million of outstanding equity securities owned by nonaffiliate investors
D) at least $1 billion of outstanding equity securities owned by nonaffiliate investors
Klint Microsystems, a microprocessor manufacturer, was contracted by Zeitar Studios
to manufacture specially designed microchips. Zeitar was to pay Klint $300,000 as per
the contract. While the finished microchips were being shipped via a carrier, Klint was
informed of Zeitar’s insolvency. Klint cancelled the shipment before it was delivered.
Klint then resold the chips to another studio. What right to remedy did Klint exercise
when selling the microchips to another studio?
A) right to claim lost profits
B) right to cover
C) right to dispose of goods
D) right to recover damages
Which of the following statements is true of an express agency?
A) The agency involved is allowed to have multiple agents if necessary.
B) The agency is implied from the conduct of the parties.
C) The agency comes to effect when the principal ratifies an unauthorized act.
D) The agency arises when a principal creates the appearance of an agency that does
not exist.