Assumption of risk is a defense a defendant can use against a plaintiff who knowingly
and voluntarily participates in a risky activity that results in injury.
Theft committed by an unauthorized entry through an unlocked door would be
considered burglary.
A proxy statement only requires the name of the proxy holder and the proxy.
Crimes committed by businesspersons are referred to as blue-collar crimes.
If there is an ambiguity in a contract, the ambiguity will be resolved in favor of the
party who drafted the contract.
Intentional misrepresentation occurs when a seller or lessor conceals a defect in a
product.
If one of the parties to a contract can enforce the contract, it is considered valid.
For a situation to be considered “undue influence,” the persuasion by the wrongdoer
must overcome the free will of the innocent party.
A promise or an order becomes conditional if it refers to a different writing for a
description of rights to collateral, prepayment, or acceleration.
In an auction with reserve, the bidder is the offeror.
The Federal Deposit Insurance Corporation was created under the provisions of the
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
Exempt property may not be retained by a debtor who files for bankruptcy.
The False Claims Act permits private parties to sue the government on behalf of a
corporation.
Parties with whom an agent has direct dealings must be given direct notice of the
termination of an agency.
Buildings constructed on land are considered personal property.
What is “maximizing profits” as a social responsibility theory in business?
A) the theory that a corporation must consider the effects its actions have on persons
other than its shareholders
B) the theory that a corporation’s duty is to make a profit while avoiding causing harm
to others
C) the theory that a corporation owes a duty to take actions that increase profits for
shareholders
D) the theory that a business has a responsibility solely to its stakeholders
Which of the following statements is true of exemptions to minimum wage and
overtime pay requirements?
A) Apprentices must be paid minimum wage.
B) Learned professionals generally need not be paid minimum wage.
C) Workers involved in hazardous activities need not be paid minimum wage.
D) Employees in law enforcement and medical sectors need not be paid minimum
wage.
The ________ Act provides for the creation of a government fund to finance the
cleanup of hazardous waste sites.
A) Resource Conservation and Recovery
B) Toxic Substances Control
C) Comprehensive Environmental Response, Compensation, and Liability
D) National Environmental Policy
________ occurs when a parent fails to provide a child with the necessities of life or
other basic needs.
A) Child custody
B) Child neglect
C) Emancipation of a child
D) Annulment
What are the only payments made by a tenant in a double net lease?
A) property taxes and assessments on the property
B) rent, property taxes, utilities, and insurance
C) rent and property taxes
D) rent, property taxes, and utilities
In which of the following ways does the FDA regulate cosmetics?
A) by adding warnings for potential carcinogens
B) by regulating the sale of cosmetics through exclusive FDA-approved stores
C) by placing a complete ban on animal testing in the cosmetic industry
D) by autonomously undertaking criminal proceedings against nonconforming cosmetic
companies
By default, a case involving an international dispute is prosecuted only in ________.
A) the International Court of Justice
B) a court in the defendant’s country
C) a court in the plaintiff’s country
D) the World Trade Organization dispute settlement body
Which of the following articles in the UCC deals with the sale of goods?
A) Article 2
B) Article 4
C) Article 5
D) Article 8
Wesley buys a house for $1,000,000. He puts $400,000 down and borrows $600,000
from a bank, which takes a mortgage on the property to secure the loan. Wesley
defaults, and when the bank forecloses on the property, it is worth only $500,000. There
is a shortage of 100,000, as the foreclosure sale price was $500,000. The bank brings a
legal action against Wesley. Which of the following can help the bank recover the
shortage from Wesley?
A) right of redemption
B) lien release
C) deficiency judgment
D) garnishment
The owner of an LLC (limited liability company) is called a ________.
A) general partner
B) limited partner
C) proprietor
D) member
Inference of the existence of a general partnership is drawn only if profits are received
as ________.
A) share in a partnership
B) payment of wages
C) interest owed on a loan
D) a debt owed to a creditor
A(n) ________ is a situation in which a creditor has an enforceable security interest
against a debtor and can satisfy the debt out of the designated collateral.
A) floating lien
B) secured transaction
C) attachment
D) redemption