The Securities Act of 1933 is a one-time disclosure statute, although some of its
liability provisions purport to cover all fraudulent sales of securities.
Answer:
The tenants have no right to remove trade fixtures even at the end of the lease period.
Answer:
The FTC rule doesn’t apply to persons who sell to consumers on credit.
Answer:
A person could be medically insane but still have the legal capacity to contract.
Answer:
Freedom of contract includes the freedom to make bad bargains.
Answer:
Under the right of first refusal, either the corporation or its shareholders are given the
right to buy shares offered for sale to an outsider willing to purchase them.
Answer:
Intermediate scrutiny is an extremely lenient level of scrutiny that presumes the
regulation is constitutional.
Answer:
CISG applies to any party, be it a merchant or a nonmerchant.
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If the minors’ contract involves title to real estate, the minor cannot disaffirm until
reaching majority.
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Foreign sovereign compulsion defense is in no way related to sovereign immunity.
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An insurance policy taken out by a minor is not voidable at the election of the minor.
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Shareholders are prohibited from submitting resolutions that are social or political in
nature.
Answer:
The Title III of the ADA of 1990:
A. classifies only nonbusiness enterprises as places of public accommodation.
B. requires places of public accommodation, private clubs, and religious organizations
to comply with the statute.
C. classifies numerous businesses and nonbusiness enterprises as places of public
accommodation.
D. requires only service-oriented businesses and private clubs to comply with the
statute.
Answer:
Under the UCC, if the original agreement requires any modification to be in writing, an
oral modification is:
A. unenforceable.
B. enforceable.
C. enforceable if the value of the goods exceeds $500.
D. unenforceable if the value of the goods exceeds $200.
Answer:
People who do not conform to a statute are sometimes considered to be negligent per
se. This means that:
A. the law is the law, and breaking it is always wrong.
B. ignorance of a statutory law is never an excuse.
C. not knowing about a statutory requirement is not as bad as intending to do something
wrong.
D. statutes can create the legal duty requisite to establish negligence.
Answer:
An implied warranty of habitability:
A. guarantees that a house is free of hidden defects that would render it unsafe for
human habitation.
B. applies to any ordinary seller of a house, and not just builders, builder-vendors, and
developers.
C. when breached, subjects the defendant to liability measured only by the cost of
repairs.
D. does not extend to a subsequent purchaser.
Answer:
In cases involving contractual incapacity caused by insanity:
A. the contract is always void.
B. the contract is always estopped.
C. the rules regarding necessaries are basically the same as in the case of minors.
D. the rules state that the person must be accompanied by at least two witnesses at the
time of contracting.
Answer:
NIMBY stands for:
A. a national and international measurement organization which regulates
environmental emissions in North American countries.
B. “not in my backyard”‘”a syndrome in which people want the wastes from their
community disposed of in any place but their own.
C. national industrial measures for barren industrial yards.
D. a national institution for the maintenance of biological and irrigational yield.
Answer:
Who among these is responsible for administering a person’s will and settling their
estate?
A. An arbitrator
B. The attorney general
C. A Probate court
D. A Family court
Answer:
When continuing partners agree to relieve the withdrawing partners of liability on the
debts of the old partnership, the act of novation can take place which involves:
A. an agreement by the creditor with both the withdrawing partners and the continuing
partners.
B. an agreement by the creditor with the withdrawing partners themselves and not their
representatives.
C. an agreement by the creditor only with the continuing partners.
D. an agreement by the creditor with the new partners replacing the withdrawing
partners to hold them liable for the debts.
Answer:
Which of the following is an example of cooperative antibribery efforts aimed at
combating corruption in international business dealings?
A. ECPA
B. CFAA
C. IACAC
D. CSEA
Answer:
In terms of workers’ compensation:
A. “work-related injuries” implies injuries arising out of employment or those which are
related to the type of employment involved.
B. employers are required to report on-the-job fatalities and injuries that require
hospitalization within 72 hours.
C. the secretary of labor authority is delegated to establish detailed health and safety
standards that must be complied with by employers.
D. injuries occurring on the way to and from the job are considered to be within the
course of employment.
Answer:
Which of the following is TRUE of real estate commissions?
A. If the seller has not given the broker a specific closing date, the broker can assume a
reasonable closing date and can also claim a commission for an incomplete sale.
B. If the seller has not given the broker specific terms on price, the broker can sell the
property on his own terms and claim for the commission.
C. If the seller has not given the broker a specific closing date, the law assumes the
contract to end 30 days after the creation of the contract, but the broker will not be
entitled for a commission.
D. If the seller has not given the broker specific terms of price or closing date then the
commission is not earned until the contract of purchase has been made.
Answer:
If an instrument satisfies the formal requirements of writing, signature, unconditional
order to pay, and pay ability on demand:
A. it is negotiable even though it is void or unenforceable for other reasons.
B. it cannot be held by a holder in due course.
C. validity of the instrument is automatically conferred.
D. it is not negotiable if it is uncollectible for other reasons.
Answer:
Under a comparative negligence system, if Chez is responsible for 40% of his injuries:
A. he could recover 60% of his damages.
B. he could recover 40% of his damages.
C. he could recover 100% of his damages.
D. he could recover nothing as he exceeds the comparative negligence 30% threshold.
Answer:
Under the Uniform Arbitration Act, a court:
A. cannot hold that the dispute was not arbitrable under the agreement of the parties.
B. will not review the wisdom or decision of the arbitrator.
C. can only make the arbitration award enforceable.
D. can publish its arbitration awards.
Answer:
Which of the following is a general negligence causation rule?
A. The defendant is liable for the full extent of the injuries of a person even if some
physical peculiarity of that person aggravated his/her injuries.
B. The defendant is liable for those who do not make reasonable attempts to avoid
being injured by his/her acts.
C. The defendant is not liable for those who are injured while making a reasonable
attempt to rescue someone endangered by his/her act.
D. The defendant is generally not held liable for diseases the victims contract while
weakened by their injuries.
Answer:
A bankrupt person who has not been guilty of certain dishonest acts and who has
fulfilled his duties as a bankrupt is entitled to a _____ in bankruptcy.
A. reaffirmation
B. claim
C. reorganization
D. discharge
Answer:
Ted stole Ron’s checkbook and wrote a check for $100, forging Ron’s signature. Under
these circumstances:
A. Ted but not Ron is liable on the check.
B. Ron but not Ted is liable on the check.
C. both Ted and Ron are liable on the check.
D. the bank will be liable on the check.
Answer: