Laws passed by a legislature are known as _____
A. codes
B. titles
C. amendments
D. statutes
Oya dies and by will names Pinson the personal representative of his estate. Pinson
decides to sell Oya’s house to Tse. This is accomplished by:
A. the probate court records.
B. the decree of the probate court judge.
C. the sworn statement of Pinson.
D. a license issued by the court.
Which of the following is tangible personal property?
A. Promissory note
B. Bank notes
C. Stock Certificates
D. Accounts receivables
Tammy leaves her car under Emilia’s carport while flying to visit her grandmother.
Emilia uses the car to go to her office though she had not been given any permission to
do so. One day she meets with an accident and the car is damaged. What is Emilia’s
legal position?
A. Emilia is liable for ordinary negligence.
B. Emilia is liable for gross negligence.
C. Emilia is liable for slight negligence.
D. Emilia has no liability.
In 1978, Chapters 11 and 13 of the Bankruptcy Code were created which:
A. made it easier for creditors to obtain bankruptcy relief.
B. allowed businesses and individuals to reorganize and keep going.
C. made it more difficult to declare bankruptcy.
D. allowed creditors to keep all of the debtor’s assets. .
What is the legal status of an apartment lease?
A. It is a special type of deed.
B. It is a special type of trust agreement.
C. It is a contract.
D. It is an executed contract.
Miranda, a student in Brad’s business law class, asks a hypothetical question that is, in
fact, based upon a current problem that her brother, Stan, is having. Brad gives an
incorrect answer and Stan suffers a loss when he acts according to the answer Miranda
provided him. Brad:
A. has no duty of due care to Stan but has to Miranda.
B. has no duty of due care to either Miranda or Stan.
C. has a duty of due care to both Stan and Miranda.
D. has a duty of due care to Stan but not to Miranda.
Which of the following is true of arbitration?
A. The procedures involved in arbitration are more rigid than those followed in
lawsuits.
B. An arbitrator’s decision is binding and cannot be appealed in court.
C. An arbitration hearing can be planned and executed by the parties themselves.
D. An arbitrator’s decision cannot come under the review of the courts.
Which of the following would be considered a valid informed consent by a court?
A. Dr. Ambrose tells her patient in advance about a dangerous procedure and the risk
involved, and obtains the patient’s informed consent in writing on a form that is signed
by the patient.
B. Dr. Ambrose tells her patient in advance about a dangerous procedure and the risk
involved and obtains the patient’s informed consent in writing on a form that is signed
by the patient and witnessed by a third party.
C. Dr. Ambrose obtains her patient’s oral informed consent, which is witnessed by a
third party.
D. Dr. Ambrose tells her patient the procedure is mandatory.
The _____ must be practiced by individuals because individuals can never foresee the
result of their actions.
A. ethic of responsibility
B. ethic of relativism
C. ethic of ultimate ends
D. ethic of ultimate needs
Brenner entered into a written contract with the Inkblot Corporation for $1,000 worth of
office supplies. Inkblot subsequently sent Brenner some supplies that were not
requested in the contract. Brenner noticed that the order did not match the contract, but
he accepted the nonconforming goods. Which of the following is true of this situation?
A. The Inkblot Corporation should cure the improper tender.
B. Inkblot does not have the right to cure the improper delivery since it has been
accepted.
C. Brenner can reject the goods without informing Inkblot of the defect in the supply.
D. Brenner can accept the goods and through the court, obligate the Inkblot
Corporation to cure the improper delivery.
Jim tells his independent accountant, Rachelle, to prepare a financial statement for his
business associate, Mel. If Rachelle is negligent in her preparation of this financial
statement,:
A. she will be liable if Mel suffers actual financial loss due to her negligence.
B. Jim will be liable if Mel suffers actual financial loss due to Rachelle’s negligence.
C. she will still not be liable to Mel.
D. Mel will not recover any money for financial loss due to her negligence because the
business associate is not an actually named third party.
What type of insurance policy requires the payment of premiums throughout the life of
the insured and pays the beneficiary the face value of the policy upon the insured’s
death?
A. Limited-payment life insurance
B. Universal life insurance
C. Straight life insurance
D. Term life insurance
_____ refer to a system of coordinated health care institutions for Medicare patients
developed by the Department of Health and Human Services.
A. High-deductible health plans
B. Preferred provider organizations
C. Accountable care organizations
D. Health maintenance organizations
Charlena gives Megan the post of Vice-President of Procurement to express
appreciation for Megan’s hard work in stocking the shelves at Charlena’s store, Thrift
City. Megan uses her business card with the title on it to purchase a new truck in Thrift
City’s name from Highway Auto. What authority, if any, has Charlena given Megan?
A. Express authority
B. Implied authority
C. Apparent authority
D. Operation of law authority
Maria, aged 16, from a wealthy family, purchases designer jeans on credit for $300. The
true fair market value for the jeans is $75. Which of the following is true of this case?
A. Maria can disaffirm the purchase.
B. She cannot disaffirm as her family is wealthy.
C. She is liable to pay $300 as per contract.
D. She may not disaffirm and is liable for $75.
Which of the following statements holds true for employee responsibilities under the
Family and Medical Leave Act (FMLA)?
A. Employees must notify the employer at least 30 days before they intend to take the
leave.
B. Employees need not notify the employer if the need for a leave is unpredictable.
C. Employees must accept the right of the employer to offer reduced pay on their
return after the leave.
D. Employees must discharge partial duties during the period of the leave.
_____ are those that are in accordance with the obligations under the contract.
A. Future goods
B. Nonconforming goods
C. Tangible goods
D. Conforming goods
A case in which one representative party files a lawsuit on behalf of all members of a
group of plaintiffs who share a single, similar injury is a(n):
A. arraignment.
B. demurrer.
C. class action.
D. indictment.
General partners:
A. take an active part in the management of the firm.
B. have no liability for the firm’s debts.
C. are nonparticipating investors.
D. they contribute cash, property but do not take part in the management of the firm.
Causation:
A. requires that the public will be endangered if the court does not dissuade the type of
firing involved in the case.
B. means that the employer had no legitimate business reason for the discharge of the
employee.
C. requires the existence of a definite public policy, clearly created by the U.S.
Constitution, the state constitution, or a general governmental policy.
D. requires that the discharge be induced by actions that are related to the stated public
policy issue.
If Drake, a shareholder of Sweet Corp., feels that he has been deprived of the right to
purchase some of the corporation’s newly issued stock, he:
A. may bring a derivative suit against Sweet’s corporate manager.
B. may bring a direct suit against Sweet’s corporate manager.
C. may bring both a derivative suit and a direct suit against Sweet’s corporate manager.
D. has no legal recourse against Sweet’s corporate manager.
If a person obtains property as a result of another’s fraud, misrepresentation, mutual
mistake, undue influence, or duress, the person is said to hold only ____.
A. voidable rights
B. contract rights
C. insured rights
D. valid rights
The comprehensive trade coalition involving the United States, Canada, and Mexico
is/are the:
A. Uruguay Round Agreements.
B. North American Free Trade Agreement.
C. Geneva Conventions.
D. United Nations Conventions.
A document of title allows the person who possesses it to:
A. receive the goods named in the document.
B. conclusively prove ownership of the goods named in the document.
C. receive the goods named in the document free of any creditor claims.
D. conclusively prove that the goods are free of defects.
A workplace in which nonunion members may be employed for a trial period of not
more than 30 days after which the nonunion workers must join the union or be
discharged is a(n):
A. open shop.
B. agency shop.
C. closed shop.
D. union shop.
Which of the following entities are allowed to send merchandise through the mail to
people who did not order it?
A. Hospitals
B. Local businesses
C. Governmental units
D. Charitable organizations
An uninsured motorist drove though a red light and hit the passenger side of David’s
car. David, the driver, suffered a concussion, and the passenger, Jayne, broke her right
arm and leg. David’s car sustained extensive damages that would cost $2,000 to repair.
If David has uninsured-motorist insurance, the coverage will:
A. protect David, but not Jayne.
B. protect David and Jayne and reimburse David for the $2,000 in damages to his car.
C. protect David and Jayne but not cover any of the damages to David’s car.
D. cover any injuries sustained by the uninsured motorist, to prevent the motorist from
suing David.
The World Trade Organization was created as a result of the:
A. Geneva Convention.
B. Uruguay Round Agreements.
C. Bretton-Woods Conference.
D. Asian-Pacific Round.
Rosa sends an offer to Kellen that requires acceptance to be made by U.S. mail. Kellen
accepts in a timely manner but sends the acceptance by FedEx which delivers the
acceptance to Rosa two days faster than the U.S. mail would. Has Kellen accepted
Rosa’s offer?
A. No, since the offer specified a particular manner of acceptance that was not used.
B. Yes, since FedEx was faster than the U.S. mail.
C. No, since the acceptance was delivered by a private rather than a public delivery
service.
D. Yes, since acceptance sent in any form, even if early or delayed confirms the offer.
Which of the following is the official authorization of a corporation to do business in a
state?
A. Articles of incorporation
B. Certificate of incorporation
C. Articles of organization
D. Certificate of authority
A major criticism of ADR is that it:
A. does not control the spending on litigation.
B. keeps the parties from carefully considering their agreements.
C. does not allow the attorneys to develop analytical skills.
D. keeps critical social issues from reaching the judicial system.
George believes in a society where people must fend for themselves rather than give up
the freedom to do as they please and in return receive a guarantee that other individuals
will curb their behavior. This is an example of:
A. a state of nature.
B. a state of society.
C. the social contract theory.
D. utilitarianism.
Which of the following is true of limited partners?
A. They take an active part in the management of the firm.
B. Their nonpartnership property can be used to satisfy any debts owed by the
partnership.
C. They are nonparticipating investors.
D. They have unlimited liability for the firm’s debts.
