“All signatures are genuine or authorized” is a transfer warranty that a transferor of a
negotiable instrument for consideration makes.
The decisions handed down by the general-jurisdiction trial courts are appealable to an
intermediate appellate court or the state supreme court.
Liquidated damages can be claimed in addition to actual damages.
A strategic alliance is an arrangement between two or more companies whereby they
agree to ally themselves and work together to accomplish a designated objective.
A party has to be a member of an organization to use a certification mark.
The Administrative Procedure Act establishes procedures that industries and businesses
must follow when conducting their affairs.
Disparate-impact discrimination occurs when an employer adopts a work rule that is
neutral on its face but is shown to cause an adverse impact on a protected class.
The drawer of a check is the customer who maintains the checking account and writes
(draws) checks against the account.
A covenant is an unconditional promise to perform.
The False Claims Act grants the private party a share in the monetary recovery made in
a whistleblower case.
Those who are secondarily liable on negotiable instruments they endorse are known as
________.
A) unqualified indorsers
B) qualified indorsers
C) accommodation parties
D) agents
Property that an owner voluntarily places somewhere and then inadvertently forgets is
known as ________ property.
A) real
B) abandoned
C) mislaid
D) lost
A party to whom a tenant transfers all his or her rights under a lease is known as a(n)
________.
A) lessee
B) assignee
C) consignee
D) licensee
An oral agreement to purchase a neighbor’s bicycle is a(n) ________ contract.
A) voidable
B) void
C) express
D) implied
Which of the following is an example of exempt securities?
A) stock dividends and stock splits
B) IPOs made by multinational corporations
C) securities that have been held by a single investor for longer than a year
D) securities worth $1 million or more
An instrument that is not payable to a specific payee or indorsee is known as a(n)
________.
A) order paper
B) bearer paper
C) allonge
D) draft
StoryBoard Creatives approached Logos Studios with a script for a movie. Logos
Studios liked the script, and bought the rights for the script from StoryBoard.
Subsequently, Mr. Simpson, a former employee of StoryBoard claimed that he had the
copyright to that script. Mr. Simpson proved his copyright in court. He then notified
Logos Studios that they could not start production on the script without his permission,
and adequate payment of fees. Logos Studios then rescinded the contract with
StoryBoard based on the breach of ________.
A) warranty of no security interests
B) warranty against infringements
C) warranty of no interference
D) warranty of good title
The Uniform Limited Liability Company Act (ULLCA) is a federal law and is valid
across the United States.
________ is a crime in which one person gives another person money, property, favors,
or anything else of value for a favor in return.
A) Battery
B) Bribery
C) Larceny
D) Embezzlement
John, Nathan, and Julio form JNJ, LLC (limited liability company) with an equal
capital investment by each. On his way to a business meeting with the clients of JNJ,
Nathan accidentally injures a woman named Jessica in a car accident. Which of the
following is true in this scenario?
A) Jessica can claim damages from JNJ, LLC as she was injured in the ordinary course
of business.
B) Jessica can only claim damages from Nathan and not from JNJ, LLC.
C) Jessica can choose to claim damages from any one of the three.
D) John, Nathan, and Julio have equal personal liability to Jessica’s injuries.
Which of the following statements is true about the pretrial litigation process?
A) To initiate a lawsuit, the plaintiff must file an appeal in the proper court.
B) If the plaintiff does not answer a complaint, a default judgmentis entered against him
or her.
C) A plaintiff files a cross-complaint against the defendant to seek damages.
D) A default judgment establishes the defendant’s liability.
Which of the following acts regulates spam e-mail on the Internet?
A) Anticybersquatting Consumer Protection Act
B) Controlling the Assault of Non-Solicited Pornography and Marketing Act
C) Communications Decency Act
D) Uniform Computer Information Transactions Act
Toughones, a car part manufacturer, signed a contract to license computer software
from Vizera Inc. for $250,000. This software is to be used to keep track of inventory,
accounts receivable, and other financial data. After the software was installed, the
computer system worked, but it had a few glitches. Toughones refused to pay the full
amount mentioned in the contract. To settle the dispute, the parties agree that $180,000
is to be paid as full and final payment for the software. Toughones paid $180,000 as
agreed. What kind of agreement did Toughones and Vizera reach in the end?
A) accord and satisfaction
B) preexisting duty
C) counteroffer
D) mirror image acceptance
The Federal Trade Commission (FTC) holder in due course (HDC) rule applies when a
buyer ________.
A) signs a sales contract that includes a check
B) signs a sales contract that includes a promissory note
C) signs an installment sales contract that does not contain a waiver of defenses clause
D) arranges financing with a third-party lender
Inkilwas Corporation has 30,000 outstanding shares. A shareholders’ meeting is duly
called to amend the articles of incorporation, and 17,501 shares are represented at the
meeting. According to the Revised Model Business Corporations Act (RMBCA), what
is the minimum number of outstanding shares that must be represented in this case to
have a quorum?
A) 12,001
B) 18,501
C) 15,001
D) 17,501