A federal agency that wishes to adopt administrative rules must do so in compliance
with the:
a. Administrative Procedures Act.
b. U.S. Constitution.
c. agency’s enabling statute.
d. All of the above.
The reasonable person standard is:
a. external and objective.
b. external and subjective.
c. internal and objective.
d. internal and subjective.
The privilege against self-incrimination extends to which of the following?
a. Providing a handwriting sample.
b. Appearing in a line-up for identification purposes.
c. Taking a blood test after an accident.
d. None of these are correct.
An example of property that is intangible is a:
a. song.
b. computer.
c. book.
d. pencil.
The Supreme Court in the Leegin Creative Leather Products, Inc. v. PSKS, Inc. case,
held that:
a. the per se rule of unlawfulness is the appropriate standard to judge vertical price
restraints.
b. the rule of reason is the appropriate standard to judge vertical price restraints.
c. resale price maintenance does not have economic dangers.
d. vertical agreements setting minimum resale prices have only anticompetitive effects.
Which of the following is a true statement?
a. A treaty signed by the president and approved by the Senate has the legal force of a
federal statute.
b. A federal statute may supersede a prior treaty.
c. All of these are correct.
d. None of these are correct.
Under a distributorship:
a. the distributor, like an agent, does not take title to the merchandise it receives.
b. the producer bears many of the risks connected with commercial sales.
c. both the producer and the distributor must take special care to ensure that the
arrangement does not violate the antitrust laws of their respective governments.
d. multinational enterprises wishing to exploit an intellectual property right sell to a
foreign company the right to use such property.
Caroline signs a contract to work as a sales rep for Incellmed Corporation for a period
of two years. This contract is governed by:
a. Article 2 of the UCC.
b. state common law.
c. federal statute.
d. the law of quasi contract.
Which of the following could give rise to an accountant’s criminal liability?
a. Falsely completing a tax return.
b. Tampering with accounting records.
c. Advising a client to falsely complete his own tax return.
d. All of these are correct.
The U.S. Constitution vests power in the branches of government that form a “checks
and balances” system. Those branches of government include:
a. executive.
b. legislative
c. judicial.
d. All of the above.
Bob took a check written by Jack to Jack’s bank to be certified. The bank stamped
“Certified” on it and gave it back to Bob. What consequence?
a. Bob can only demand the money from Jack.
b. Bob can only demand the money from the bank.
c. The bank would have to pay if Jack doesn’t.
d. Bob would have to pay if the bank doesn’t.
The minimum number of board members necessary to be present at a meeting in order
to transact business is known as:
a. a plurality.
b. the entire board of directors.
c. a quorum.
d. a minority.
Which of the following is included within the term “property” for purposes of
procedural due process?
a. Real property.
b. Social security payments.
c. Food stamps.
d. All of the above.
An agent may lose the right to compensation:
a. by breaching the agency contract willfully and deliberately.
b. if the specified result of the contract is not obtained.
c. if the duty of loyalty is breached.
d. All of the above
With regard to a limited partner’s capital contribution to the limited partnership:
a. the limited partner can only contribute cash.
b. a promise by a limited partner to contribute to the limited partnership is not
enforceable unless it is in a signed writing.
c. a limited partner is liable to the partnership for the difference between the
contribution actually made and that which is stated in a signed writing promising a
certain contribution.
d. Both (b) and (c).
Creditors entitled to priority are paid before:
a. the debtor’s attorney.
b. secured creditors.
c. unsecured creditors who file their claims on time.
d. All of the above.
Sarreno Cheese Co. supplies mozzarella cheese to pizza restaurants at $1.50 per pound.
In order to snare the business from one large pizza chain, Sarreno offers to sell them
cheese at $1.25 per pound. This will violate the Robinson-Patman Act unless:
a. the pizza chain can already get the cheese for $1.25 elsewhere.
b. Sarreno can show its price is justified because of a cost savings based on quantity.
c. Sarreno lowers the price to all its customers.
d. All of the above.
All of the following are dischargeable in bankruptcy EXCEPT:
a. an unsecured note to a bank.
b. a car loan.
c. domestic support obligations arising from divorce or separation proceedings.
d. a court judgment against the debtor.
A “closed shop” is:
a. the same as a “runaway” shop.
b. one in which a union once existed but has since been voted out.
c. one in which a union is barred.
d. outlawed by the Taft-Hartley Act.
If 100 shares of $50 par value stock were issued at $75 per share, how much would
constitute capital surplus?
a. $750.
b. $7,500.
c. $2,500.
d. $5,000.
Bart sends Carla an offer by express mail. Carla receives it at 10 a.m. on Tuesday. At 11
a.m. on Tuesday, Carla delivers an acceptance to Speedy Mail-to-You Express, Inc., but
due to their error, the letter is not sent out by the company until Wednesday at 8 a.m. At
what time does the law consider the acceptance to be effective?
a. At 10 a.m. on Tuesday.
b. At 11 a.m. on Tuesday.
c. At 8 a.m. on Wednesday.
d. At the time Bart receives the letter.
With regard to the interpretation of a contract that falls within Article 2 of the UCC,
what priority is given to each of the following items?
a. Course of dealing
b. Usage of trade
c. Express terms
d. Course of performance
Which of the following is true in relation to market share and monopoly power?
a. A market share greater than 50 percent generally indicates monopoly power.
b. A market share between 50 and 75 percent is, in itself, inconclusive in determining
monopoly power.
c. Market share is rarely used as a test of monopoly power because it is difficult to
determine.
d. Market share is a common test for monopoly power because it is an easy, objective
measurement for courts to determine.
Sam agrees to sell Bill one 18-cubic-foot, yellow refrigerator for $700. It is to be
delivered to Bill’s home on July 7. Under the perfect tender rule, which one of the
following cases would permit Bill to rightfully reject the goods?
a. Sam delivered an 18-cubic-foot, silver refrigerator on July 7, and Bill calls Sam to
complain.
b. Sam sent an 18-cubic-foot, yellow refrigerator with a small dent in it on July 7. Bill
refuses delivery but never bothers to call Sam.
c. Sam sent his truck to Bill’s home with the 18-cubic-foot, yellow refrigerator on July
7, but Bill was not home.
d. Sam sent 18-cubic-foot, yellow refrigerator without ice cube trays on July 5 and
notifies Bill of the defect.
Which of the following are types of restrictive indorsements?
a. Conditional indorsements.
b. Indorsements prohibiting further transfer.
c. Indorsements in trust.
d. All of the above are restrictive.
Bert and Philip have decided to form a partnership to operate a lawn care service.
Discuss whether they should name the business and, if so, what considerations affect
the name they might choose.
Treasury shares are shares that have been authorized but have not yet been issued.
If the debtor contests the involuntary petition for bankruptcy, the court must enter an
order for relief against the debtor.
An agreement between a manufacturer and a wholesaler is horizontal.
In order for Beth to receive a permit for her plastic factory in a nonattainment area, she
must show that the factory’s emission rates will be within the average range for the
industry.
The judicial branch of the United Nations is called the World Court.
Since the agency relationship is created by agreement, the agency relationship may be
terminated at any time by mutual agreement of the principal and the agent.