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A nolo contendere plea can be used as evidence of liability against the accused at a
subsequent civil trial.
Unilateral mistake is a mistake in which only one party is mistaken about a material fact
regarding the subject matter of a contract.
Taking is defined as an act intended to "harass, harm, pursue, hunt, shoot, wound, kill,
trap, capture, or collect" an endangered animal.
Legal precedence is a key feature of the Historical School of jurisprudence.
The promisee is the contracting party who agrees to confer performance for the benefit
of the third person.
In case of abatement, if a will provides for both general and residuary gifts, the
residuary gifts are abated first.
Only a holder in due course can legally negotiate commercial paper.
Wages, hours, and other terms and conditions of employment are permissive subjects of
collective bargaining.
A court decree of divorce need not be obtained to end a common law marriage.
Registering a domain name of another party's trademarked name or famous person's
name in bad faith is called cybersquatting.
The debt security of notes does not have a maturity period.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 makes it more
difficult for debtors to file for bankruptcy and have their unpaid debts discharged.
An offering circular must be provided to the investors immediately after the purchase of
a Regulation A offering.
A retailer is not liable for the express warranties made by manufacturers of goods it
sells.
________ refers to a situation in which certain parties are discharged from liability on
an instrument by the action of the holder.
A) Impairment of the right of recourse
B) Fraud in the inception
C) Fraud in the inducement
D) Discharge in bankruptcy
Dean Campenella is a detective with the California state police. During the
investigation of a missing child, Campenella found new clues that led to the capture of
a serial killer involved in another case. Since Campenella was not involved in the serial
killer case, and found the clues while investigating another case, Campenella demanded
a special reward from the state police department for his help in catching the killer. But
his demand was declined citing lack of consideration. Campenella's demand lacks
consideration under which of the following?
A) preexisting duty
B) illegal consideration
C) gift promise
D) illusory promise
Which of the following legislations can a state adopt in determining whether an
accountant is liable in negligence to third parties?
A) Section 2(b) of the Robinson-Patman Act
B) Section 5 of the Federal Trade Commission
C) Section 552 of the Restatement (Second) of Torts
D) Section 16 of the Clayton Act
Which school of jurisprudence views law as a sort of evolutionary process, where
changing norms of society will be reflected in the law?
A) the Natural Law School of jurisprudence
B) the Sociological School of jurisprudence
C) the Analytical School of jurisprudence
D) the Historical School of jurisprudence
________ is a type of marriage some states recognize in which a marriage license has
not been issued but certain requirements are met.
A) Emancipation
B) Common law marriage
C) Free union
D) Cohabitation marriage
Which of the following is the most common form of alternative dispute resolution
(ADR)?
A) negotiation
B) mini-trial
C) arbitration
D) fact-finding
________ occurs if two or more persons commingle fungible goods.
A) Confusion
B) Accession
C) Bailment
D) Easement
Karlovsky and Sons Inc., a retail corporation, reports financial losses for three years in
a row. Two larger corporations, Gatsby Retail Inc. and Chelsea Sales Corp. compete to
acquire Karlovsky and Sons. Initially, Chelsea places a higher bid than Gatsby Retail
but eventually backs out of the merger. In the end, a Boston-based multinational
company (MNC) named J.Y. Corp. acquires Karlovsky and Sons and permits the latter
to expand as a wholesaler. Which of the following is the surviving corporation in this
scenario?
A) Gatsby Retail Inc.
B) Chelsea Corp.
C) J.Y. Corp.
D) Karlovsky and Sons
Which of the following statements best indicates how chancery courts were different
from law courts?
A) Chancery courts emphasized developing merchant laws rather than laws for the
common citizen.
B) Chancery courts inquired into the merits of a case rather than emphasize legal
procedures.
C) Chancery courts emphasized a standard set of remedies across different cases rather
than provide equitable remedies.
D) Chancery courts had lower precedence level over legal decisions than the law courts.
John buys a new car with the help of a loan. He permits the creditor to take possession
of the car if he cannot repay the loan in time. Here, the car is the ________.
A) after-acquired property
B) collateral
C) intangible personal property
D) floating lien
Which of the following best defines a merged corporation?
A) a corporation that is absorbed in the merger and ceases to exist after the merger
B) a corporation that is absorbed in the merger and continues to exist after the merger
C) a corporation that is not absorbed in the merger but acquired stake in the surviving
corporation
D) a corporation that is not absorbed in the merger but is owned by a parent company
Francis Jeffers purchased a cashier's check in the amount of $5,000 from Northern Star
Bank. The check was made payable to Kyle Naughton and was delivered to him.
Twelve months later, the Northern Star Bank branch manager informed Jeffers that the
cashier's check was still outstanding. Jeffers subsequently signed a form requesting that
payment be stopped and a replacement check be issued. Northern Star Bank issued a
replacement check to Jeffers. Eight months later, Naughton deposited the original
cashier's check in his bank, which was paid by Northern Star Bank. Northern Star Bank
requested that Jeffers repay the bank $5,000. When he refused, Northern Star Bank sued
Jeffers to recover this amount and the court awarded Northern Star Bank damages
amounting to $5,500. In which of the following circumstances, if true, would the court
have ruled in Jeffers' favor?
A) Jeffers cashed the replacement check before Naughton had presented the original
check at his bank.
B) Jeffers paid Naughton the $5,000 in cash after obtaining the replacement check from
Northern Star Bank.
C) Jeffers indemnified Northern Star Bank for potential damages arising from the issue
of the replacement check.
D) Jeffers renewed the stop-payment order on the original check at the end of six
months.
Which of the following is true of an illegal consideration?
A) Contract requires that either both parties suffer legal detriment.
B) Contract requires that the promisor receives a legal benefit.
C) Contract requires that the promisee suffer a legal detriment.
D) Contracts based on illegal consideration are void.
Failure of a party to perform an obligation in a sales or lease contract is known as
________.
A) revocation
B) breach
C) acceptance
D) replevin
Taylor gives a power of attorney to his twin brother Corey, permitting Corey to make all
decisions on his behalf while he is abroad. Per the terms of the power of attorney, Corey
is allowed make decisions to buy 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. What kind of power of attorney
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
To meet contractual legality, considerations must be ________.
A) beneficial to both parties involved
B) detrimental to both parties involved
C) mentioned in writing in the contract
D) bargained-for exchange of promise for performance
An actor asks an agent to place an order for a couch on the agent's way back to work.
This is an instance of ________.
A) a dual-purpose mission
B) frolic and detour
C) coming and going
D) self-dealing
A property in which a security interest is taken is called ________.
A) collateral
B) escrow
C) attachment
D) leverage
The ________ is principal's duty to cover the agent for any losses the agent suffers
because of the principal's conduct.
A) duty to cooperate
B) duty to indemnify
C) duty to compensate
D) duty to reimburse
In a destination contract, delivery is completed when the shipment ________.
A) reaches the destination specified in the contract
B) is inspected by the buyer and approved
C) is handed over to the carrier by the seller
D) is in transit to the destination specified in the contract
Distinguish between rightful and wrongful disassociation from an LLC (limited liability
company). What are the consequences of disassociation?
What is the minor's duty of restoration in a disaffirmed contract?
What is liquidation? How does the Bankruptcy Abuse Prevention and Consumer
Protection Act of 2005 affect the process of liquidation?
Explain the doctrine of strict liability with examples.
Explain the basic requirements that must be met for a contract to be enforceable.
What prohibition does the Sarbanes-Oxley Act impose on an accounting firm providing
audit and nonaudit services to the same company?
What is an annulment? On what grounds are annulments provided?
What is the CEO and CFO provision laid out by the Sarbanes-Oxley Act of 2002?
Discuss identity theft as a cybercrime.
