Laws that help establish the conditions of trade between countries are:
A. The Uniform Commercial Code and The U.S. Constitution
B. Executive Orders and Administrative Codes
C. The North American Free Trade Agreement and The Bill of Rights
D. The North American Free Trade Agreement and The General Agreement on Tariffs
and Trade
E. The General Agreement on Tariffs and Trade and The Uniform Commercial Code
Which of the following is sometimes referred to as “but-for” causation?
A. Proximate cause.
B. Significant cause.
C. Actual cause.
D. Legal cause.
E. Constructive cause.
Under _______________________ an employee may be fired for no reason.
A. fire-at-will
B. employment-at-will
C. no-reason-firing
D. without-reason-firing
E. unsupported discharge
______________ is also known as the Labor-Management Relations Act.
A. The Taft-Hartley Act
B. The National Labor Relations Board
C. The Fair Labor Standards Act
D. The Wagner Act
E. The Landrum-Griffin Act
Assume you know that Robert has told a lie about a friend of yours, Yolanda. You tell
Yolanda that she should sue for defamation, but she has no interest in that. Can you sue
on behalf of Yolanda?
A. Yes, so long as you give any money received to Yolanda.
B. Yes, but only if Yolanda signs a permission slip at the court.
C. Yes, but only if the dispute is for an amount under $25,000.
D. No, because there is no venue.
E. No, because you have no standing.
Under the UCC, the statute of limitations is ________ years.
A. one
B. two
C. three
D. four
E. six
__________________ limits shareholders’ ability to bring class action suits against
nationally traded companies.
A. The Class Prohibition Act of 1997
B. The Sarbanes-Oxley Act of 2002
C. The National Securities Markets Improvement Act of 1996
D. The Market Reform Act of 1990
E. The Securities Litigation Uniform Standards Act of 1998
All contracts can be categorized as either _____ or _____ contracts.
A. unilateral; complete
B. unilateral; trilateral
C. bilateral; trilateral
D. unilateral; bilateral
E. bilateral; complete
Which of the following are ineligible for Chapter 7 relief in bankruptcy?
A. Banks.
B. Railroads.
C. Health maintenance organizations.
D. Banks, railroads, and health maintenance organizations.
E. Banks and railroads, but not health maintenance organizations.
A _____ is an agreement by the person who issues the letter to pay a sum of money on
receipt of an invoice and other documents.
A. letter of agreement
B. letter of credit
C. letter of acknowledgement
D. negotiated credit instrument
E. simple contract
General credit information is considered obsolete after _____ years.
A. 3
B. 4
C. 5
D. 7
E. 8
A _____ contract is commonly defined as a promise in exchange for a promise.
A. unilateral
B. trilateral
C. complete
D. bilateral
E. classified
Which of the following is false regarding the statute of frauds and promises made in
consideration of marriage?
A. Agreements regarding marriage in which one party is gaining something other than a
return on his or her promise to marry are within the statute of frauds and must be in
writing.
B. Mutual promises to marry fall within the statute of frauds.
C. Prenuptial agreements fall within the statute of frauds.
D. A prenuptial agreement is not automatically enforceable just because it is in writing.
E. Both that mutual promises to marry fall within the statute of frauds and that a
prenuptial agreement is not automatically enforceable just because it is in writing.
Attorney Candy represents plaintiff Ann who is suing her neighbor for nuisance
claiming that the neighbor plays music too late at night. Candy puts Ann on the stand
and asks her questions. Candy is involved in which of the following?
A. Direct examination
B. Cross-examination
C. Judicial examination
D. Specific questioning
E. Redirect questioning
What Constitutional power does the president use to overrule laws passed by the
legislative branch?
A. Federal presumption
B. The Supremacy Clause
C. Veto power
D. Judicial review
E. The Ninth Amendment
Which amendment gives citizens the right not to testify against themselves in a criminal
case?
A. First
B. Third
C. Fourth
D. Fifth
E. Tenth
Which of the following is an example of a formal contract?
A. Contracts under seal.
B. Executed contracts.
C. Letters of credit.
D. Contracts under seal and letters of credit, but not executed contracts.
E. Contracts under seal, letters of credit, and also executed contracts.
In a limited partnership which of the following have no part in the management of the
business?
A. General partners
B. Limited partners
C. Special partners
D. General partners, limited partners, and special partners
E. General and special partners, but not limited partners
Which of the following is true regarding an agreement to commit a crime or a tort?
A. An agreement to commit a crime is enforceable, but an agreement to commit a tort is
unenforceable.
B. An agreement to commit a tort is enforceable, but an agreement to commit a crime is
unenforceable.
C. An agreement to commit a crime is unenforceable, and an agreement to commit a
tort is unenforceable unless a business tort in involved in which case the agreement is
enforceable.
D. An agreement to commit a crime is unenforceable except an agreement to commit
white collar crime in which case the agreement is enforceable; and an agreement to
commit a tort is unenforceable unless a business tort is involved in which case the
agreement is enforceable.
E. An agreement to commit a crime is unenforceable, and an agreement to commit a tort
is also unenforceable.
According to the Revised Model Business Corporation Act, which of the following
should articles of incorporation include?
A. The name of the corporation
B. The name of the registered agent
C. The names and addresses of the incorporators
D. The name of the corporation, the name of the registered agent, and the names and
addresses of the incorporators
E. The name of the corporation and the registered agent, but not the names and
addresses of the incorporators
Transfer of collateral to a secured party for the purpose of perfection is called a(n)
______.
A. allegiant
B. pledge
C. transfer
D. allonge
E. release
Under the Sarbanes-Oxley Act of 2002, it is a felony for an auditor to willfully fail to
maintain proper records of audits and work papers for at least _____ years.
A. two
B. three
C. four
D. five
E. ten
Under Article 2(A) of the UCC, a person who acquires the right to possession and use
of goods under a lease is a(n) _____.
A. buyer
B. seller
C. lessee
D. lessor
E. acquirer
Which of the following are types of conditions that affect the performance obligations
of the parties?
A. Precedent and complete
B. Subsequent and complete
C. Concurrent and subsequent
D. Precedent, subsequent, and concurrent
E. Precedent and conditional
Wrecked Furniture. Ralph buys new furniture for his living room from Good Times
Furniture. It is agreed that the goods will be placed with a common carrier for delivery.
The contract between Ralph and Good Times is ambiguous regarding whether the seller
had the duty to deliver the goods only to the common carrier’s hands or whether the
seller had the duty to deliver the goods to Ralph’s home. Unfortunately, on the way to
Ralph’s home, through no fault of the delivery driver, the delivery truck got wrecked
and the furniture was significantly damaged. What type of contract is presumed based
upon the fact that the contract was ambiguous regarding whether the seller had the duty
to deliver the goods only to the common carrier’s hands or whether the seller had the
duty to deliver the goods to Ralph’s home?
A. Transit
B. Location
C. Destination
D. Origin
E. Voidable
The ______ in a third-party beneficiary contract is the party to the contract who made
the promise that benefits the third party.
A. promisee
B. promisor
C. obligor
D. obligee
E. None of these. There are no third-party beneficiary contracts, only second-party
beneficiary contracts.
What is the process called which allows limited liability companies to do business in
states other than the state in which they were formed?
A. Cooperation
B. Qualification
C. Venturing
D. Syndication
E. Distribution
When a specific payee is named in an instrument, the instrument is known as a(n)
_____ instrument.
A. demand
B. order
C. transactional
D. bearer
E. payor
In which types of agency relationships is the agency relationship inferred from the
conduct of the parties?
A. Express agency
B. Agency by estoppel
C. Implied agency
D. Both agency by estoppel and implied agency
E. None of these
Easement Dispute. Sally buys a house from Bob that borders on a lake. Her deed gives
her the most complete estate a person may have. She is in her bathing suit sunning one
day when her neighbor, Fred cuts through her yard. Sally tells him not to do that
anymore. Fred informs her that he had previously purchased and properly recorded a
right to cut across her yard to get lake access. Sally asks you what she should do to try
to get rid of Fred because she doesn’t like him cutting through her yard when she is
sunning. What is the best advice you can give Sally regarding getting rid of Fred?
A. To call the police when he shows up because any rights he had, terminated when
Sally bought the property.
B. To sell her property and move on because she has absolutely no hope.
C. To put up with Fred for one year because his interest could only last that long after
her purchase.
D. To put up with Fred for three years because his interest could only last that long after
her purchase.
E. To reach some sort of agreement with him, possibly by paying him to give up the
easement.
Whenever an employer hires an employee to perform some sort of physical service, the
parties have created a(n) ______ relationship.
A. employer-agent
B. employer-employee
C. employer-independent contractor
D. avowed
E. acknowledged
Which of the following involves overly harsh or lopsided substance in an agreement?
A. Substantive unconscionability
B. Adhesion conscionability
C. Procedural unconscionability
D. Exculpatory clauses
E. An in pari delicto agreement
A party to a contract who transfers her duty to perform to a third party who is not part
of the original contract is called a(n) ______.
A. delegatee
B. delegator
C. assignor
D. assignee
E. transferor
___________________ permit(s) the SEC to seek punishment of violators of foreign
securities laws.
A. The Sarbanes-Oxley Act of 2002
B. The Securities Acts Amendments of 1990
C. The Market Reform Act of 1990
D. The Securities Enforcement Remedies and Penny Stock Reform Act of 1990
E. The National Securities Markets Improvement Act of 1996
Which of the following is the most common form of agency?
A. Expressed agency
B. Implied agency
C. Apparent agency
D. Ratification
E. Endorsement