A unilateral mistake occurs if both parties know the object of the contract but are
mistaken as to its value.
A voidable contract is also termed as an unenforceable contract.
Strict liability applies to services but not products.
To be valid, a security agreement must set forth the creditor’s rights on the debtor’s
default.
A financing statement refers to a document filed by a secured creditor with the
appropriate government office that constructively notifies the world of his or her
security interest in personal property.
A party who is owed a right under a contract is called an obligor.
The Do-Not-Call Registry allows consumers to designate specific companies not to call
them.
The filling or dredging of navigable waters and qualified wetlands are prohibited unless
a permit has been obtained from the Army Corps of Engineers.
Which of the following would constitute the creation of an assignment?
A) the transfer is of nonnegotiable instruments
B) a transfer qualifies as a negotiation under Article 3
C) a transferee qualifies as a holder in due course
D) the indorsement falls under the shelter principle
Which of the following terms denotes the defendant’s written response to a plaintiff’s
complaint that is filed with the court and served on the plaintiff?
A) summons
B) answer
C) rejoinder
D) rebuttal
________ is a doctrine that says if a shareholder dominates a corporation and uses it for
improper purposes, a court can disregard the corporate entity and hold the shareholder
personally liable for the corporation’s debts and obligations.
A) Piercing the corporate veil
B) Fruit of the poisonous tree
C) Right of first refusal
D) Self-dealing
Which of the following transactions occurs when a seller sells goods to a buyer on
credit and retains a security interest in the goods?
A) two-party secured
B) three-party secured
C) perfected
D) attached
A ________ is an order of the court that orders that wages, bank accounts, or other
property of the breaching party held by third persons be paid to the nonbreaching party
to satisfy a judgment.
A) writ of attachment
B) writ of garnishment
C) specific performance
D) liquidation of damages
Which of the following opinions is necessary for a company to avoid unfavorable
repercussions on the company?
A) an adverse opinion
B) a qualified opinion
C) a disclaimer of opinion
D) an unqualified opinion
Which of the following is a similarity between real and personal property?
A) Both properties can include intangible properties.
B) Both properties are movable properties.
C) Both properties can be owned concurrently by two or more persons.
D) Both properties are removed by a seller prior to the sale of a property.
What is a quiet title action?
A) a lawsuit to determine the rightful owner of a disputed property
B) a lawsuit to enforce the right to survivorship to the holder of the title deed
C) a lawsuit asking for the release of the details of a separate property from a couple
D) a lawsuit to obtain reimbursement for losses caused by undiscovered defects in title
Stella gets injured in a motor accident and is brought to the hospital by a passerby.
Stella subsequently passes into a coma. The doctors and other staff perform the
necessary medical procedures to save her life. Stella comes out of her coma two months
later and is released from the hospital after the doctors are satisfied by her recovery.
Under the doctrine of ________ contract, Stella has to pay the hospital for its services.
A) express contract
B) quasi contract
C) implied-in-fact contract
D) formal contract
If an employer refuses to hire individuals belonging to a particular community, that
would violate ________.
A) Title I of the Americans with Disabilities Act
B) Title II of the Genetic Information Nondiscrimination Act
C) Title VII of the Civil Rights Act of 1964
D) Title IV of the Genetic Information Nondiscrimination Act
Which of the following documents sets forth the terms and conditions of a franchise?
A) the FTC disclosure document
B) the franchise agreement
C) the articles of incorporation
D) the articles of organization
Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if
she checks the lottery results while Mary is away. Sharon agrees to do so, provided she
has the time for it. If Sharon fails to check the results and Mary wins the lottery, which
of the following would be true of the contract between Mary and Sharon?
A) Mary can claim for breach of contract against Sharon.
B) Sharon can claim for breach of contract against Mary.
C) Neither Mary nor Sharon can claim breach of contract.
D) Mary’s promise is supported by consideration.
A shareholder is permitted to submit a resolution to be considered by other shareholders
only if he or she ________.
A) owns at least one percent of all shares of the company
B) owns at least $1,000 worth of shares of the company’s stock
C) has served as a former member of the company’s board of directors
D) has owned shares of the company of any amount for longer than five years
Which of the following is a federal statute that deals with corporate bribery between
U.S. companies and officials of other countries?
A) Sarbanes-Oxley Act
B) Glass-Steagall Act
C) Deregulation and Monetary Control Act
D) Foreign Corrupt Practices Act
Kirsten just bought a car that had a one-year warranty stating that it covered the cost of
parts, but not labor. It also stated that the warranty only covered the powertrain, and no
other part. What kind of warranty did Kirsten’s car have?
A) full warranty
B) limited warranty
C) disclaimer warranty
D) implied warranty of fitness for a particular purpose
A ________ is a document that is filed with the secretary of state upon the dissolution
of a limited partnership.
A) certificate of cancellation
B) termination affidavit
C) statement of dissolution
D) certificate of agreement
What are the requirements of the Statute of Wills?
Explain the Treaty Clause of the U.S. Constitution.
Explain the four basic types of franchises in brief.
How is Social Security awarded in the U.S.?
What is self-dealing?
What is the accountant-client privilege?
Briefly explain the liabilities of general and limited partners in a limited partnership.
Distinguish between nonissuer exemption, intrastate offering exemption, and private
placement exemption.