The ________ is a federal statute that authorizes the EPA to establish national primary
potable water standards.
A) Comprehensive Environmental Response, Compensation, and Liability Act
B) Federal Water Pollution Control Act
C) Clean Water Act
D) Safe Drinking Water Act
Which of the following bankruptcy methods allows the reorganization of the debtor’s
financial affairs under the supervision of the bankruptcy court?
A) Chapter 11
B) Chapter 13
C) Chapter 7
D) Chapter 12
How does the 2005 act reduce the number of debtors who qualify for Chapter 7
liquidation bankruptcy?
A) It added two new tests, the median income test and the means test, to determine
whether a debtor qualifies.
B) It used the employment history of debtors to determine their approximate
postpetition income.
C) It used new methods to determine whether the debtors are providing false
information regarding their financial position.
D) It made the Chapter 7 liquidation procedures tougher in order to discourage debtors
from opting for it.
The ________ is an international organization consisting of 153 member nations that
was created in 1995 to promote and enforce trade agreements among member countries
and customs territories.
A) WTO
B) IMF
C) UNESCO
D) UNICEF
A sales contract that requires the seller to send the goods to the buyer but not to a
specifically named destination is defined as a(n) ________ contract.
A) shipment
B) destination
C) option
D) noncarrier
Frank says to Stella, “If you wash every window in my house today, I’ll pay you $200.”
Stella washes 12 of the 20 windows in Frank’s house by 2:00 p.m. At this point,
________.
A) Frank can revoke his offer to pay Stella the $200 for washing the windows
B) Stella is obligated to finish washing the windows
C) Frank cannot revoke his offer to pay Stella $200 for washing all the windows
D) Frank and Stella have a formal, executed contract
________ occur when an agent makes statements that he or she knows are not true.
A) Intentional misrepresentations
B) Innocent misrepresentations
C) Negligent misrepresentations
D) Frolic misrepresentations
The Privileges and Immunities Clause provides that ________.
A) an individual has the privilege of practicing any religion, and is immune from any
government interference with that right
B) states must generally treat nonresidents as favorably as residents
C) corporations receive most of the same constitutional protections as individuals
D) the government is not subject to being sued unless the constitutional matter is a right
rather than a privilege
Holly Lane is an accountant with Mildred & Lane Co. She has recently been asked to
visit Maine Manufacturers to survey their financial records, assess their compliance
with federal and state laws, and provide an opinion reflecting the state of the company’s
financial records. Holly’s assessment of the financial records of Maine Manufacturers is
called a(n) ________.
A) probate administration
B) audit
C) arraignment
D) easement
Diane bought an action figure for her son David from Terrence’s Toy Shop. The
packaging did not mention that the toy contained small detachable parts. David
accidentally swallowed and choked on one of the detachable parts and had to be taken
to the hospital. On which of the following charges can Diane sue Terrence’s Toy Shop
for damages?
A) negligence
B) disparagement
C) battery
D) slander
According to the corporate citizenship theory, businesses ________.
A) are responsible for solving social problems that it did little to cause
B) owe a duty to take actions that increase profits for shareholders
C) have a responsibility solely to its stakeholders, and should strive to maximize their
well-being
D) are obliged to consider the effects its actions have on persons other than its
shareholders
________ is an action a party to a sales or lease contract is required by law to carry out.
A) Obligation
B) Breach
C) Misappropriation
D) Anticipatory repudiation
Which of the following is true of ownership titles when confusion occurs?
A) Title to the goods can never be shared between the owners involved.
B) Title to goods commingled without permission goes to the innocent party.
C) Title to goods cannot be acquired by confusion.
D) Title to goods can only be acquired if goods were commingled by accident.
Which of the following is true of a gift causa mortis?
A) It cannot be revoked before the death of the donor.
B) It does not require the actual death of the donor.
C) It represents an irrevocable present transfer of ownership.
D) It takes precedence over a prior conflicting will.
Article 3 of the Uniform Commercial Code establishes the ________.
A) requirements for negotiable instruments, such as checks
B) rules that regulate bank deposit procedures for checking accounts
C) rules that regulate the creation and collection of and liability for wire transfers
D) guidelines for ownership of securities by investors
A will that is executed by two or more testators is known as a ________.
A) joint will
B) mutual will
C) reciprocal will
D) nuncupative will
Which of the following has the largest trading volume of any securities exchange in the
world?
A) NYSE
B) Euronext
C) NASDAQ
D) London Stock Exchange
Which of the following statements is true of minimum wages in the United States?
A) States can enact laws that set minimum wages higher than the federal minimum
wage.
B) Cities are not allowed to have minimum wages different from what is set by the state
or federal government.
C) Living wage laws set lower minimum wages than the federal level.
D) An employee who earns in tips must be paid minimum wage by the employer.
Which of the following is true of surety arrangement?
A) The surety is not liable for paying the principal debtor’s debt when it is due.
B) The creditor should have exhausted all other remedies before seeking payment from
the surety.
C) The creditor has the right to initiate legal actions only against the principal debtor
and not against the surety.
D) The principal debtor does not have to be in default on the debt before seeking
payment from the surety.
According to the RICO act, a pattern of racketeering is defined as ________.
A) two business-related criminal acts within a five-year period
B) two business-related criminal acts within a ten-year period
C) five business-related criminal acts within a five-year period
D) five business-related criminal acts within a three-year period
A company logo would be an example of a ________.
A) trade secret
B) patent
C) trademark
D) copyright
Who is the plaintiff in a criminal lawsuit?
A) the respondent
B) the government
C) a private party
D) the victim
A(n) ________ refers to an alteration or a modification of a product by a party in the
chain of distribution that absolves all prior sellers from strict liability.
A) foreseeable event
B) assumption of risk
C) abnormal misuse
D) supervening event
Which of the following would be considered an offer to form a unilateral contract?
A) advertisement
B) auction without reserve
C) reward offer
D) auction with reserve
Instead of suing the partnerships or other partners at law, general partners are given the
right to bring a(n) ________ against other partners.
A) claim for damages
B) tort action
C) call for action
D) action for an accounting
If union organizers get fewer than ________ of the employees to sign consent cards, a
union election will not be held.
A) 90 percent
B) 30 percent
C) 50 percent
D) 75 percent
Greg approaches a local dealer to buy a new car which costs $10,000. He wishes to
seek finance to buy the car. The auto dealer asks for a co-signer as surety to sell the car
on credit. Greg approaches his friend Claire to co-sign on the agreement. Claire agrees
and becomes a surety for Greg’s car. Which of the following is true in this case?
A) Claire is primarily liable for the payment.
B) Claire is secondarily liable for the payment.
C) Claire is liable only if the auto dealer has exhausted all other remedies.
D) Claire is not liable for the payment.
Which of the following cases describes an agreement of ethics and laws?
A) a company outsourcing its jobs to a foreign country
B) a person being penalized for bribing a judge to rule a case in the person’s favor
C) a company not spending more money to keep its emission rates below the legal
standard
D) a person hiring an illegal alien worker whose family is in destitute
Which of the following courts was created by Article III of the U.S. Constitution?
A) U.S. Supreme Court
B) U.S. Tax Court
C) U.S. Court of Appeals
D) U.S. Court of Federal Claims
Liam has incurred injury due to a defective product on December 15, He purchased the
defective product on December 15, 2010 from Bluestone Inc. The state of his residence
has enacted a statute of limitations for strict liability to be three years and enforced the
doctrine of comparative fault. Which of the following would be the last date that Liam
can sue Bluestone?
A) December 15, 2010
B) December 15, 2013
C) December 15, 2017
D) December 15, 2014
A ________ is a written document signed by a debtor that creates a security interest in
personal property.
A) license
B) lease agreement
C) security agreement
D) chattel paper