Unqualified indorsements are considered negotiable instruments.
Section 10(b) of the Securities Exchange Act prohibits the use of manipulative and
deceptive devices in contravention of the rules and regulations prescribed by the SEC.
The Norris-LaGuardia Act is a federal statute which stipulates that it is legal for
employees to organize.
To obtain an injunction, the requesting party must show that he or she will suffer
irreparable injury if the injunction is not issued.
If a defendant makes an untrue statement of factabout the plaintiff and the statement is
intentionally or accidentally published to a third party, the defendant is held liable for
misappropriation of the right to publicity.
According to ethical relativism, an action that is usually thought to be unethical would
not be considered unethical if the perpetrator thought it was ethical.
A petitioner must file a petition for certiorari, asking the Supreme Court to hear the
case.
The creation of a limited partnership is formal and requires public disclosure.
The Toxic Substances Control Act is administered by the U.S. Army Corps of
Engineers.
According to the Statute of Frauds, an executory contract that cannot be performed by
its own terms within one year of its formation must be in writing.
If a plaintiff brings a diversity of citizenship case in state court, it will remain there
unless a defendant removes the case to federal court.
Constructive fraud is defined as intentional misrepresentation or omission of a material
fact that is relied on by a client and causes the client damage.
A bankruptcy trustee is a legal representative of a creditor’s claim to an estate.
A ________ is a record that evidences both a monetary obligation and a security
interest in specific goods and software used in the goods.
A) chattel paper
B) citation
C) financing statement
D) document of possession
Which of the following similarities is observed between tie and plurality decisions
reached by the U.S. Supreme Court?
A) The decisions can be appealed against in the U.S. courts of appeals.
B) The decisions do not set precedent for later cases.
C) The decision of the lower court is affirmed.
D) New evidence and testimony is heard before reaching decisions.
Intellectual property falls into a category of property known as ________.
A) moveable property
B) real property
C) tangible property
D) intangible property
The ________ administers the National Environmental Policy Act (NEPA) and has the
authority to adopt regulations for the enforcement of the act.
A) Environmental Protection Agency
B) Environmental Investigation Agency
C) Ministry of Environmental Protection
D) Association of Environmental Professionals
John buys a watch for $100 at a vintage store. Later, the store learns that the watch was
worn by Sean Connery in a James Bond movie and wishes to rescind the sales contract
they have with John. Which of the following statements is true in this scenario?
A) The store can rescind the contract immediately and refund $100 to John.
B) The store can recover from John the difference between the value of the watch and
the amount paid by John.
C) The store can declare the contract void and pay John no money.
D) The store cannot rescind or void the contract.
A ________ is a long-term unsecured debt instrument that is based on a corporation’s
general credit standing.
A) debenture
B) bond
C) note
D) treasury share
Miranda Airways, a commercial air carrier, has a contract with Wurtherton Inc., an
airplane manufacturer, to purchase a new plane. Due to a sudden shortage of cash,
Miranda Airways goes to MetrosBank. MetrosBank issues a document to Wurtherton,
which says that if Miranda does not pay for the transaction, MetrosBank would.
Wurtherton considers the offer and then sends an acceptance with additional terms. The
additional terms stipulate that Miranda Airways could have the new airplane for a
period of 10 years and then return it to Wurtherton. Miranda Airways agrees to the
acceptance, and Wurtherton hands over the new airplane to them. What is the nature of
the contract between Miranda Airways and Wurtherton?
A) sale of goods
B) lease
C) counteroffer
D) option contract
When does a patent enter the public domain?
A) when the patent has been challenged in court and found to be an infringement
B) when the patent term period has expired
C) when the government deems that the practical purpose of the invention is universally
applicable and cannot be controlled by one individual or group of people
D) when the invention is either obvious or not a novel one
William buys a $500,000 house from Keith Geller through a realtor. He makes a down
payment of $200,000. He borrows the rest from Smith and Sons, a lending firm, and
places his new house as collateral for the loan. Who is the debtor in this case?
A) William
B) Keith Geller
C) Smith and Sons
D) the realtor
Which of the following best defines short-swing profits?
A) profits that are made by an insider by selling shares of the corporation prior to the
public disclosure of unfavorable information
B) profits that are made by an insider by personally purchasing shares of the
corporation prior to public release of favorable information
C) profits that are made by a statutory insider on trades involving equity securities of
their corporation that occur within six months of each other
D) profits that are made by a tippee by personally purchasing shares of the corporation
prior to or post public release of favorable information
Section 2-201(1) of the Uniform Commercial Code (UCC) states that ________.
A) all lease contracts must be in writing
B) lease contracts involving payments of $1,000 or more must be in writing
C) all sales contracts must be in writing
D) sales contracts involving payments of $500 or more must be in writing
Once a strike begins, the employer may continue operations by ________ to take the
place of the striking employees.
A) hiring replacement workers
B) temporarily demoting supervisors
C) acquiring crossover workers
D) acquiring wildcat strikers
The transfer of rights under a nonnegotiable contract is known as a(n) ________.
A) assignment
B) negotiation
C) indorsement
D) dishonored instrument
Which of the following is a requirement of the Family Smoking Prevention and
Tobacco Control Act?
A) a 2 percent increase in excise tax per cigarette package
B) a warning on the top 50 percent of both the front and back of each cigarette package
C) a tax exemption for companies that voluntarily display warning labels on their
packages
D) a hotline number to the FDA for apparent violations of the provisions of this Act
Greg owes Timothy $1,000 and gives him a check to repay the amount. When Timothy
presents it at Greg’s bank five months later, however, the bank refuses to pay the check.
The bank was willing to act in good faith, but is not liable for the dishonor of the check.
Which of the following, if true, would explain the dishonor of the check by Greg’s
bank?
A) Timothy filled in his name as the payee on the check as Greg had forgotten to do so.
B) Greg had not filled in the amount, so Timothy duly wrote $1,000 on the check before
he presented it to the bank.
C) Greg had issued a stop-payment order on the check immediately after giving it to
Timothy.
D) Greg had postdated the check four months from the date of giving the check to
Timothy.
The attorney general may seek equitable relief and civil fines for any violation of the
ADA.