A doctor driving on the wrong side of the road crashes into an eight-year-old boy riding
a bicycle. Fearing the consequences, the doctor flees without reporting the accident or
giving first-aid to the boy. The doctor is liable for professional malpractice.
An exculpatory clause must be reciprocal to be considered enforceable.
In an auction with reserve, the bidder can withdraw his or her bid after an acceptance
has been indicated from the offeror.
Flow-through taxation is the federal income tax imposed on general partnerships.
The implied warranty of fitness for human consumption applies to vending machines.
An improperly recorded document is effective against subsequent purchasers of real
property.
The parental duty of support is terminated if a minor becomes emancipated.
A ________ is an owner of intellectual property or informational rights who transfers
rights in the property or information to another party.
A) lessor
B) lessee
C) licensee
D) licensor
Which of the following is an accurate description of wrongful dishonor of a check?
A) A bank refusing to honor a properly payable check when there are sufficient funds in
the drawer’s account.
B) A bank refusing to honor a certified check when it is presented for payment more
than a year from its date of issue.
C) A bank refusing to honor a check which has been outstanding for only a few days
more than six months from the date of issue.
D) A bank refusing to honor an ordinary check when it believes that the payee has
altered the amount on the check.
Which of the following is true of a living trust?
A) It comes in to effect after the death of the grantor.
B) It helps reduce the grantor’s income tax.
C) It can be revoked during the grantor’s lifetime.
D) It is considered a public record subject to probate proceedings.
________ is a means for persons and businesses to protect themselves against the risk
of loss.
A) Abatement
B) Ademption
C) Insurance
D) Easement
Which of these legally binding documents are created before a marriage?
A) a community will
B) a reciprocal will
C) a settlement agreement
D) a prenuptial agreement
The Clean Air Act requires the Environmental Protection Agency (EPA) to identify
toxic air pollutants that present a substantial risk of injury to human health or the
environment.
In which of the following cases is a bank considered liable for unauthorized payments?
A) The bank does not attach canceled checks to the monthly statements of account.
B) The bank does not provide images of paid checks online.
C) The bank destroys original copies of canceled checks not sent to customers after
seven years from the date of the check.
D) The bank does not provide sufficient information on checks paid to customers in
their monthly account statements.
A(n) ________ is an auditor’s opinion that states that the financial statements are fairly
represented except for, or subject to, a departure from Generally Accepted Accounting
Principles (GAAPs), a change in accounting principles, or a material uncertainty.
A) unqualified opinion
B) qualified opinion
C) adverse opinion
D) disclaimer of opinion
________ discrimination occurs when an employer discriminates against an entire
protected class through the effects of a seemingly neutral policy.
A) Disparate-treatment
B) Disparate-impact
C) Favored-treatment
D) Unfair-impact
In which of the following cases is a default judgment entered?
A) A defendant admits all the allegations in the complaint.
B) There is insufficient evidence to resolve the dispute.
C) The court believes that the lawsuit can be settled before/without trial.
D) A defendant does not file a written response to a plaintiff’s complaint.
Which of the following statements is true of the International Court of Justice?
A) It is the executive branch of the United Nations (UN) that helps interpret
international law.
B) It only hears cases of nations, and not of individuals and businesses.
C) It does not have the authority to hear cases involving treaties and the UN Charter.
D) It is headed by the secretary-general of the United Nations.
A legal procedure by which a secured creditor causes the judicial sale of the secured
real estate to pay a defaulted loan is known as ________.
A) attachment
B) accountability
C) land sales contract
D) foreclosure sale
Ashton borrows $25,000 from Amanda. Amanda lends the money to Ashton without
taking an interest in collateral for the loan. Amanda is relying on Ashton’s credit
standing when she makes the loan. What kind of creditor is Amanda?
A) an unsecured creditor
B) a secured creditor
C) an administrative claim creditor
D) a post-petition creditor
A private plaintiff has ________ years from the date on which an antitrust injury
occurred to bring a private civil treble-damages action because only damages incurred
during this period are recoverable.
A) three
B) two
C) five
D) four
Prado Loyola is a race-car driver who has signed an agreement with the racing team
Provolt, stating that Provolt is not responsible for the dangers involved in racing and
that Loyola participates in all car races voluntarily, with full knowledge of the risk of
injury or death that might result as a consequence. During the course of the race, a
slight drizzle that covers the windshield affects Loyola’s visibility, and he misses a turn,
resulting in a crash. Which of the following defenses can the Provost team cite to
protect itself from liability in the event that Loyola sues them?
A) res ipsa loquitur
B) assumption of the risk
C) private necessity
D) breach of the duty of care