Shippers can purchase comprehensive insurance to cover the risk of loss to their goods
during shipment.
Self-dealing is when shareholders use their position to deprive the board of directors of
personal monetary gain.
In a sale on approval, there is no sale unless and until the buyer accepts the goods.
Employees are required to purchase workers’ compensation insurancefrom private
insurance companies or state funds.
A prepayment clause allows the payee or holder to accelerate payment of the principal
amount of an instrument.
The work-related test puts liability on the employee if the intentional tort is committed
within work-related time and space.
Independent federal administrative agencies are federal agencies responsible for
enforcing specific administrative statutes enacted by Congress.
Which of the following is true of a Regulation A offering?
A) It imposes resale restrictions on the securities it offers.
B) It necessitates the issuers to prepare a registration statement for offers exceeding
$100,000.
C) It requires the maximum disclosure of information to investors at the time of the
issuance of the securities.
D) It mandates that an offering circular be provided to the investors prior to the
purchase of securities.
Jerry is employed by U.S.-based Iconic Systems. His work hours per workweek for the
month of January were 40 hours the first week, 30 hours the second week, 50 hours the
third week, and 45 hours the fourth week. According to the Fair Labor Standards Act,
how many hours of overtime pay is Jerry entitled to at the end of January?
A) 5
B) 10
C) 15
D) 40
The difference between a qualified fee ownership and a fee simple ownership is that a
qualified fee ownership can be ________.
A) transferred at will by the owner of the property
B) terminated if a specified event occurs or fails to occur
C) infinite in its duration
D) inherited without limitations
The legislative branch of the U.S. federal government is ________.
A) monocameral
B) bicameral
C) tricameral
D) polycameral
What type of transaction is covered under the Magnuson-Moss Warranty Act?
A) consumer transactions
B) commercial transactions
C) industrial transactions
D) governmental transactions
Which of the following is true of treasury shares?
A) They cannot be issued by the corporation.
B) They cannot be voted by the corporation.
C) They are owned by shareholders.
D) They are only issued by governments.
Ronald, the purchasing manager of Tellys Supermarket in Georgia, was asked to
purchase an order of the latest videogame console, FunCase, to keep in the
supermarket. However, due to a truckers’ strike, he had to make a trip to the FunCase
warehouse, which was in Florida. Ronald paid for the trip himself, went to the
warehouse, procured the shipment, and returned. After he got back, Tellys Supermarket
paid Ronald for the trip he made to Florida. What duty of the principal did Tellys
Supermarket perform here when they paid Ronald for the trip to Florida?
A) duty to cooperate
B) duty to reimburse
C) duty to compensate
D) duty to indemnify
The ________ was enacted to open most federal administrative agency meetings to the
public.
A) Freedom of Information Act
B) Privacy Act
C) Government in the Sunshine Act
D) Equal Access to Justice Act
A ________ is a gratuitous bailment that arises when the bailee is requested to care for
the bailor’s property as a favor.
A) bailment at will
B) mutual benefit bailment
C) bailment for the sole benefit of the bailee
D) bailment for the sole benefit of the bailor
If the value of the secured interest is less than the value of the collateral securing a loan,
the secured creditor is a(n) ________.
A) undersecured
B) oversecured
C) in default
D) exempt from Chapter 7 bankruptcy
Nebula Crystals, a firm in New York that manufactures crystal figurines, was contracted
by Ruth from Florida to deliver a thousand such crystal figurines. The contract required
the firm to deliver and tender the goods alongside the vessel SS Dew Express at the
New York harbor. Which of the following shipment term expresses such conditions?
A) no-arrival, no-sale
B) ex-ship
C) F.A.S. port of shipment
D) C.I.F.
A party who employs another person to act on his or her behalf is known as a(n)
________.
A) agent
B) principal
C) independent contractor
D) employee
Conch Corporation, a global oil and gas company, has plans to build a subsidized
postsecondary vocational school in the town of Cristen, where one of its offices is
situated. The plan was put to vote and approved despite some objections from
shareholders. The school is being built in collaboration with the local government. The
objective is to help the youth of the neighborhood, especially school dropouts, learn
vocational skills. What social responsibility theory describes Conch Corporation’s
initiative to build the school?
A) moral minimum
B) maximizing profits
C) corporate citizenship
D) stakeholder interest
Which of the following elements must be established to create an implied-in-fact
contract?
A) A plaintiff provided a property or services gratuitously.
B) A plaintiff made a defendant sign a contract and then changed its terms, calling the
new terms “previously implied.”
C) A defendant was given an opportunity to reject a property or services provided by a
plaintiff but failed to do so.
D) A defendant accepted a property or services offered by a plaintiff as a fee for an
illegal activity.
The ________ is a staff of persons that administers the day-to-day operations of the
United Nations (UN).
A) Council of Ministers
B) Security Council
C) General Assembly
D) Secretariat
In which of the following cases is a buyer in breach of a sales contract?
A) if the buyer refuses to accept nonconforming goods
B) if the buyer accepts nonconforming goods
C) if the buyer refuses to accept conforming goods
D) if the buyer asks replacements for defective goods
Which of the following statements best describes a difference between indictments and
information statements?
A) Indictments are issued by a grand jury, while an information statement is issued by a
magistrate.
B) Indictments are issued before a trial, while an information statement is issued after a
trial.
C) Information statements are issued without determining guilt, while an indictment is
issued where guilt is evident.
D) Information statements are issued to dismiss a case before it goes to trial, while an
indictment is issued to bring a case to trial.
Competing with the partnership without the permission of other partners violates a
general partner’s ________.
A) duty to inform
B) duty of loyalty
C) duty of care
D) duty of obedience
Harry finds an old stereo in his attic. He sells the stereo to Jake for $50 telling him that
it is fully functional, which Jake thinks is true. However, it turns out to be broken.
Which of the following statements is true in this context?
A) Jake can sue Harry for fraud in the inducement.
B) Jake cannot rescind the deal but can sue Harry for fraud by concealment.
C) Jake can sue Harry for innocent misrepresentation.
D) Jake can rescind the deal but cannot sue Harry for innocent misrepresentation.
A warranty that is created when a seller or lessor makes an affirmation that the goods he
or she is selling or leasing meet certain standards of quality, description, performance,
or condition is known as a(n) ________ warranty.
A) implied
B) conditional
C) closed
D) express
What is insider trading? How is it regulated in the United States?
Distinguish between disparate-treatment and disparate-impact discrimination.
What are product defects? What are the most common defects that will allow plaintiffs
to recover for strict liability?
Differentiate between trials with and without jury.
What is an indenture agreement?
Distinguish between a member-managed and a manager-managed LLC (limited liability
company). Mention the exceptional actions that cannot be delegated to managers.
Explain the three kinds of mistakes that can be made by either party while entering a
contract. When are contracts involving mistakes rescinded?