All federal administrative agencies answer directly to the president.
Separate property is included in community property.
If a document of title is required, title must pass when and where the seller delivers the
goods to the buyer.
A Limited liability company (LLC) can be organized in only one state.
A living trust is subject to property division on divorce.
The business judgment rule protects shareholders for honest mistakes of judgment.
Blue-sky laws are state laws that regulate the issuance and trading of securities.
A holder in due course is subject to all the claims and defenses that can be asserted
against the transferor.
E-commerce is not subject to the Commerce Clause of the Constitution as most
businesses that conduct e-commerce over the Internet do not have any physical
location.
For an injury to be compensable under workers’ compensation, the claimant must prove
that he or she was harmed by an employment-related injury.
An imposter is someone who impersonates a payee and induces the maker or drawer to
issue an instrument in the payee’s name and give the instrument to the imposter.
Secured bondholders can foreclose on collateral in the event of nonpayment of interest.
The Superfund is financed through taxes on products that contain hazardous substances.
A defendant can be held liable for injuries caused by a superseding event.
Private parties cannot intervene in public antitrust actions brought by the government.
In which of the following cases of consumer safety violations will the U.S. Department
of Agriculture be required to take action?
A) A new drug was released into the market without adequate testing and this lead to
adverse side effects among users.
B) A brand of soft toys for infants was produced with low-grade foam and fabrics that
are harmful for children when ingested.
C) A batch of sausages and cold cuts from a particular vendor was found to have high
levels of salmonella and other pathogenic organisms.
D) A fleet of cars released into the market by a famous company was found to have a
defective braking system which could prove fatal for owners.
New general partners can be admitted only with the ________.
A) approval of at least two-thirds of the partners
B) specific consent of each partner
C) merger with another limited partnership
D) death of or transfer by a general partner
Where there is a valid delegation of duties but the delegatee has not assumed the duties
under a contract, the delegation is called a(n) ________.
A) condition precedent
B) declaration of duties
C) express condition
D) discharge
Which of the following federal agencies is authorized to adopt and enforce the Family
Smoking Prevention and Tobacco Control Act?
A) the Consumer Product Safety Commission
B) the Federal Trade Commission
C) the Food and Drug Administration
D) the Agency for Healthcare Research and Quality
Which of the following is true of misrepresentation?
A) An intentional misrepresentation by an agent is not considered fraud or deceit.
B) The principal is not liable for an agent’s intentional misrepresentation.
C) A third party cannot recover damages from the principal due to an agent’s intentional
misrepresentation.
D) The principal is liable for an agent’s innocent misrepresentation.
Who should provide a notice of assignment to the obligor?
A) An assignee
B) An assignor
C) An obligee
D) A facilitator
Which of the following is true of capital contribution to an LLC (limited liability
company)?
A) Capital contribution can only be in the form of money or tangible property.
B) Promissory notes are not considered capital contribution.
C) A member’s obligation to contribute capital is excused by the member’s disability or
other inability to perform.
D) A member’s obligation to contribute capital is not excused by the member’s death.
Which of the following is true of a union shop agreement while hiring an employee?
A) The employee must join the union within a certain time after employment.
B) The employee does not join the union but pays an agency fee.
C) The employee must be a skilled worker represented by more than one union.
D) The employee must be represented by more than one union.
Which of the following is true of e-commerce?
A) Lessors cannot use web addresses to lease goods.
B) Intellectual property cannot be explicitly listed for sale on a website.
C) A Web contract is not binding as opposed to an e-mail contract.
D) A Web contract is not valid if it does not fulfill all the elements of a traditional
contract.
Which of the following is true of Rule 10b-5?
A) Privity of contract is a necessity for bringing a lawsuit under this rule.
B) Civil private lawsuits are not permitted under this rule.
C) Only purchasers and sellers of securities can sue under this rule.
D) Ordinary negligence is a violation of this rule.
That “goods must be fit for the ordinary purposes for which they are used,” would be an
example of a(n) ________.
A) implied warranty
B) explicit warranty
C) statement of opinion
D) stamp of approval
A(n) ________ is a fiduciary relationship which results from the manifestation of
consent by one person to another that the other shall act in his behalf and subject to his
control, and consent by the other so to act.
A) assignment
B) garnishment
C) accommodation
D) agency
Under the Resource Conservation and Recovery Act, the Environmental Protection
Agency (EPA) is authorized to regulate underground storage facilities.
Marcus employs a real estate broker, Dean, to sell his house. Dean’s express powers are
to advertise and market the house for sale, show the house to prospective buyers, and
accept offers from them. He is not allowed to seal a deal without Marcus’ consent.
Marcus goes away on a month-long trip where he cannot be contacted. During this
time, a short circuit in the house causes a power outage. Dean uses his authority to hire
an electrician to repair the circuits and restore electricity in the house. Marcus then
comes back and pays Dean for the repairs. What is the nature of the agency that Dean
used to fix the problem in the house?
A) implied agency
B) agency by ratification
C) power of attorney
D) express agency
The U.S. Supreme Court is composed of ________ justices.
A) nine
B) six
C) ten
D) three
Which of the following is true of tort liability for principals and agents?
A) A principal is responsible for the tortious conduct of an agent irrespective of the
scope of his or her authority.
B) An agent is fully liable for his or her tortious conduct while on duty for the principal.
C) An agent is liable for the principal’s tortious conduct if he or she participates in it.
D) An agent and a principal cannot be held responsible for the same tort.