Which of the following is true of subsurface rights in real property?
A) Subsurface rights cannot be used to mine radioactive elements.
B) Subsurface rights can be sold separately from surface rights.
C) Minerals found beneath real property have to be given up to the government.
D) Subsurface rights can only be invoked to dig oil wells.
A person who signs an instrument and lends his or her name, and credit to another party
to the instrument is referred to as a(n) ________.
A) agent
B) qualified indorser
C) unqualified indorser
D) accommodation party
The judicial dissolution of a corporation can be brought about if the corporation
________.
A) has a board of directors elected by its shareholders
B) is incorporated in only one state
C) exceeded or abused the authority conferred on it by law
D) submitted its articles of incorporation with the secretary of state after it was voted
for by its shareholders
A valid shareholder resolution ________.
A) submitted by a shareholder will not exceed 500 words in its length
B) can be made by a shareholder who possesses less than 1% of all shares of the
company
C) may be submitted by a stockholder who owns less than $2000 worth of shares of the
company’s stock
D) is submitted by a person after six months of becoming the company’s shareholder
The owner of an LLC is called a ________.
A) general partner
B) limited partner
C) proprietor
D) member
The U.S. government passed draft laws during the Vietnam War decreeing that men of a
certain age had to serve in the military if they met physical requirements. Which of the
following schools of jurisprudential thought do such draft laws adhere to?
A) the Historical School of jurisprudential thought
B) the Natural Law School of jurisprudential thought
C) the Sociological School of jurisprudential thought
D) the Command School of jurisprudential thought
Which of the following regulatory agencies was set up under the provisions of the
Dodd-Frank Wall Street Reform and Consumer Protection Act?
A) Federal Deposit Insurance Corporation
B) Bureau of Consumer Financial Protection
C) National Credit Union Administration
D) U.S. Securities and Exchange Commission
The director of a corporation has ________.
A) the authority to act individually on the corporation’s behalf without the consent of
other directors
B) exclusive rights to vote by proxy in shareholder meetings
C) two votes that he or she can use in board meetings
D) the right to inspect information that affects operations of the corporation
Decisions of the ________ are final unless a question of law is involved that is
appealable to the U.S. Supreme Court.
A) courts of appeals
B) courts of records
C) highest state courts
D) general-jurisdiction trial courts
Thomas signed a sales contract with Bricklay’s, a firm that supplies bricks for private
individuals. The contract specified the type and amount of bricks needed, and that
Thomas would pick up the bricks from the Bricklay’s warehouse 15 days later. Thomas
received a document of title, but failed to pick up the goods on the stipulated date. In
this scenario, at what point of time is the title to goods passed over to Thomas?
A) when the sales contract was signed by both Thomas and Bricklay’s
B) when Thomas received the document of title
C) when Thomas picks up the bricks from the Bricklay’s warehouse
D) when the stipulated date of pick-up of the bricks expires
The ________ is a rule which states that if an engagement is broken off, the person who
was given the engagement ring must return the ring, regardless of which party broke off
the engagement.
A) fault rule
B) objective rule
C) pro se rule
D) abatement rule
Under the ________, if a consumer challenges the accuracy of pertinent information
contained in a credit file, the agency may be compelled to reinvestigate.
A) Fair Credit Reporting Act
B) Fair Credit Billing Act
C) Fair and Accurate Credit Transactions Act
D) Equal Credit Opportunity Act
Robert steals a truckload of plasma televisions that belong to Karson Electronics Store
in an armed robbery. He then resells it to Stu-Mart, who is unaware of the stolen nature
of the goods. Karson Electronics Store then traces the plasma televisions to Stu-Mart.
Robert is also arrested for the theft. Which of the following is true for Karson
Electronics’ legal course for reclaiming the televisions or damages?
A) Stu-Mart is a good-faith purchaser here and as such does not have to hand over the
televisions to Karson.
B) Stu-mart must hand over the televisions to Karson as their title to the goods is void.
C) Karson’s only recourse is against Robert to claim damages.
D) Karson’s cannot reclaim the goods, but can sue Stu-Mart for negligence and
damages.
During the ________ period, the issuer cannot offer to sell securities or sell securities.
A) prefiling
B) fixing
C) waiting
D) posteffective
Horace Holmes died at the age of 85, leaving behind all his property to Joe Baines, his
butler. The news of the new will that Horace executed three months before his death
naming Joe as the sole beneficiary surprised everyone. In his prior will, he had
bequeathed his estate to his two daughters and three grandchildren on a per capita basis.
The court took up proceedings to determine the validity of his new will because
Horace’s rejection of his daughters and grandchildren in his will was uncharacteristic of
him. The court most likely suspected this change in his will to be a case of ________.
A) constructive trust
B) undue hardship
C) undue influence
D) spendthrift trust
Which of the following is a feature of the Helping Families Save Their Home Act of
2009?
A) It prevents debtors from seeking mortgage modification while in an active
bankruptcy case.
B) It allows mortgage lenders to file a claim in a bankruptcy case if the lender has failed
to comply with the requirements.
C) It states that debtors with total mortgage debt of more than $1,010,000 are not
eligible for a Chapter 13.
D) It eliminates the need for prepetition credit counseling before a debtor may file for
bankruptcy.
A(n) ________ is a written law enacted by the legislative branch of the federal and state
governments that establishes certain courses of conduct that covered parties must
adhere to.
A) charter
B) treaty
C) executive order
D) statute
Mr. Rolleck writes a will placing his estate in a trust upon his death. He names a local
bank as trustee to administer the trust and invest its assets. The trust provides that when
his grandson reaches the age of 23, the trust will terminate, and his grandson will be
given legal title to the assets. Mr. Rolleck dies when the grandson is 12 years old. At the
age of 23, the grandson inherits the title to the assets. What kind of trust did Mr. Rolleck
create in this scenario?
A) an inter vivos trust
B) a testamentary trust
C) a constructive trust
D) a resulting trust
The ________ is a federal statute, enacted in 1930, that prohibits price discrimination.
A) Sherman Act
B) Clayton Act
C) Robinson-Patman Act
D) Federal Trade Commission Act
________ refers to a defect that occurs when a manufacturer does not place information
about the dangers of using a product on its packaging, causing injury if the dangers are
unknown.
A) Failure to warn
B) Defect in manufacture
C) Defect in design
D) Crashworthiness
________ is a requirement that a person who purchases insurance have a personal stake
in the insured item or person.
A) Delivery of possession
B) Endorsement
C) Adverse possessory interest
D) Insurable interest
Which of the following defines a remainder as a form of a future interest?
A) It is a right of possession that returns to the grantor after the expiration of a limited
or contingent estate.
B) It is a right of possession that returns to a third party upon the expiration of a limited
or contingent estate.
C) It is a form of concurrent possession of a multiple-dwelling building in which a
corporation owns the building and the residents own shares in the corporation.
D) It is a form of concurrent possession that includes the right of survivorship.
The term ________ refers to the oral testimony given by a party or witness prior to trial.
A) class action
B) deposition
C) accommodation
D) intervention
If there is an area of interstate commerce that the federal government has chosen not to
regulate, the states ________.
A) cannot regulate in that area, as the federal government’s decision implies that there is
to be no regulation in that area
B) cannot regulate in that area because states cannot pass laws on interstate commerce
C) can regulate in that area so long as long as the state law does not unduly burden
interstate commerce
D) can regulate in that area so long as it first gets the requisite approval from Congress
Which of the following is true of the Colgate doctrine?
A) It is not a violation of Section 1 of the Sherman Act.
B) It is an example of a horizontal restraint of trade.
C) It is a per se violation of Section 1 of the Sherman Act.
D) It is a rule of reason violation of Section 1 of the Sherman Act.
Frank Hannigan sees a grand piano that his musician friend, Scott Kristoff, had been
looking for, in an antique store. Frank enters into a contract to purchase the grand piano
from the antique seller and signs the contract, “Frank Hannigan, agent for Scott
Kristoff.” But because Frank is not Scott’s agent, Scott is not bound by the contract. If
Scott decides to accept the contract, what kind of agency would be created?
A) express agency
B) implied agency
C) agency by ratification
D) power of attorney
A(n) ________ is a debt security with a maturity of five years or less.
A) bond
B) debenture
C) indenture
D) note
Explain how the Immigration Reform and Control Act (IRCA) of 1986 regulates the
employment of persons entering the United States without permission.
Which of the following does a health care directive outline?
A) Which life-saving measures the signor does and does not want.
B) What treatments are to be withdrawn if doctors determine there is no hope of a
meaningful recovery.
C) Why the signor has decided to withdraw life-support systems.
D) Who is to make all health care decisions in accordance with the living will on behalf
of the signor.
Which of the following statements regarding a partnership is true?
A) A partnership is an involuntary association.
B) To be valid, a partnership must have a written partnership agreement.
C) A partnership is a separate tax-paying entity for federal tax purposes.
D) Partners have personal liability for business debts and other legal obligations of the
business.
Which of the following statements is true of the Taft-Hartley Act?
A) It establishes the right of employees to bargain collectively with employers.
B) It gives employers the right to engage in free-speech efforts against unions.
C) It provides for the equal representation of skilled and unskilled workforce.
D) It gives the president of the United States the right to seek an injunction against a
strike.
One of the purposes of the ________ is to force many debtors out of Chapter 7
bankruptcy and into Chapter 13 bankruptcy.
A) Federal Bankruptcy Act of 1878
B) Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
C) Families Save Their Homes Act of 2009
D) Federal Bankruptcy Act of 1978