A homeowner’s policy does not cover theft that takes place at an insured’s workplace
even if the item is insured.
Antitrust, bankruptcy, patent and copyright cases can be heard by state courts.
Human beings are protected in the secondary level of the national ambient air quality
standards (NAAQS).
Even if a corporation does no business in Delaware, it can obtain the benefits of
Delaware corporation law by incorporating in Delaware.
In a trust arrangement, the trustee has legal title to the trust corpus, and the beneficiary
has equitable title.
If a woman is informed of her husband being run over by a bus the previous night, she
can recover damages for negligent infliction of emotional distress.
A living trust does not allow creditors to obtain a lien against property in the trust.
Under common law’s mirror image rule, an offeree’s acceptance must be on the same
terms as the offer.
The United States does not permit an LLC (limited liability company) to be
member-managed.
Any writing—including letters, telegrams, invoices, sales receipts, checks, and
handwritten agreements written on scraps of paper—can be an enforceable contract.
If an accession is mistakenly made by an improver and the improvement cannot be
removed from the original article, the owner owns title to the improved property
without any payment.
Under UCC guidelines, to require a bank to abide by a postdated check, the drawer
must give separate written notice to the bank, describing the check with reasonable
certainty and notifying the bank not to pay the check until the date on the check.
Which of the following statements is true about intermediate appellate courts?
A) They hear new evidence and testimony that have come to light after the trial courts
have made their decision.
B) They do not grant any oral hearings to the parties.
C) They have jurisdiction to hear cases of a limited or specialized nature.
D) They review either pertinent parts or the whole trial court record from the lower
court.
Which of the following is an example of a vertical restraint of trade?
A) group boycott
B) price fixing
C) resale price maintenance
D) division of markets
Who among the following is considered a statutory insider?
A) Sharon Muller, an editor who was tipped by her friend to buy shares of KYU Corp.
B) Robert Morgan, a government employee who owns 10 percent of all equity security
of KYU Corp.
C) Jim Downey, a graphics engineer who quit KYU Corp. after five years of service
D) Kate Harris, a legal consultant to KYU Corp.
A(n) ________ is an action or event that relieves certain parties from liability on
negotiable instruments.
A) presentment
B) discharge
C) accommodation
D) breach of contract
Which of the following Acts protects debtors who are subject to writ of garnishment
from excessive action?
A) Fair Credit Billing Act
B) Consumer Leasing Act
C) Truth-in-Lending Act
D) Title III of the Consumer Credit Protection Act
The ________ recognizes electronic contracts as meeting the writing requirement of the
Statute of Frauds for most contracts.
A) Uniform Commercial Code
B) Uniform Computer Information Transactions Act
C) E-SIGN Act
D) Communications Decency Act
In which of the following types of franchise does a franchisor provide a secret formula
or process to the franchisee?
A) chain-style franchise
B) area franchise
C) distributorship franchise
D) processing plant franchise
Which of the following statements is true of deposition?
A) A deposition has to be a written statement.
B) A witness’ deposition is voluntary and not pursuant to a court order.
C) Deposition is given post trial.
D) A deponent is given a chance to correct his or her deposition.
Samson owns 1,500 shares out of the 10,000 outstanding shares of Comakote
Corporation. If Comakote declares a stock dividend of 30 percent, what will be the total
stock Samson has upon receiving his stock dividend?
A) 2,250
B) 4,500
C) 1,950
D) 5,400
A(n) ________ is a contract in which a buyer agrees to purchase all of its requirements
for an item from one seller.
A) option contract
B) requirements contract
C) best-efforts contract
D) output contract
A promise lacks consideration if a person promises to perform an act or do something
he or she is already under an obligation to do. This is called a(n) ________.
A) illegal consideration
B) preexisting duty
C) gift promise
D) illusory promise
What is the first step in videotaping the signing of a will?
A) The will is recited verbatim by the testator.
B) The will is attested by the witnesses after inspection.
C) The will is signed by the testator.
D) The will and its provisions are explained and justified by the testator for the benefit
of surviving relatives.
The ________ is a treaty that has removed or reduced tariffs, duties, quotas, and other
trade barriers among the United States, Canada, and Mexico.
A) Free Trade Area of the Americas Treaty
B) North American Free Trade Agreement
C) Central America Free Trade Agreement
D) General Agreement on Tariffs and Trade
Which of the following grants a person the right to use real property for a specified
period of time?
A) lease
B) mortgage
C) sale
D) barter