The Internet Tax Freedom Act (ITFA) prohibits companies from charging sales tax on
Internet transactions.
Criminal laws:
a. define wrongs against society.
b. define the rights of one person against another.
c. carry damage remedies against the wronged individual.
d. all of the above.
A letter of credit usually sets a:
a. minimum money amount.
b. maximum money amount.
c. both of the above.
d. none of the above.
The registration requirement of the Securities Act of 1933 applies to:
a. the issuing of stocks, bonds, and other investment securities.
b. the issuing of certificates of deposit by a national bank.
c. shares issued by nonprofit corporations.
d. issues of $1.5 million or more.
The Federal __________ Act makes it unlawful to intercept oral and electronic
communications and provides for __________ against the violator.
a. Wiretapping; civil damages
b. Wiretapping; criminal liability and civil damages
c. Homeland Security; civil damages
d. Homeland Security; criminal liability and civil damages
Consumer defenses:
a. are preserved by a FTC regulation.
b. are provided for by the CISG.
c. are contained in UCC Article 2.
d. none of the above.
Which of the following is not a duty of a trustee?
a. to use reasonable skill
b. to keep accurate records
c. to invest trust assets
d. to deliver possession of trust assets to the settlor for the trust period
The FTC franchise disclosure statement must contain:
a. the business experience of the franchisor and its brokers.
b. any current and past litigation against the franchisor.
c. the grounds for termination of the franchise.
d. all of the above.
A motion for a directed verdict is appropriate:
a. immediately after the pleadings are filed.
b. immediately after discovery is concluded.
c. immediately after the presentation of all evidence at trial.
d. on appeal.
Laws that prohibit theft, operation of a factory in areas zoned residential, and copyright
infringement exist primarily:
a. for protection of the person.
b. for protection of public health, safety, and morals.
c. for protection of property.
d. for protection of the state.
Universal defenses work against:
a. holders.
b. a holder through a holder in due course.
c. a holder in due course.
d. all of the above.
Tom established a bank account for his daughter Mary under the Uniform Gifts to
Minors Act. Tom named himself the custodian. Later, Tom had a serious disagreement
with Mary and ordered the bank to transfer the money in that account to a similar
account maintained in the same bank for Tom’s son Ed. The bank must:
a. comply with Tom’s order, because the custodian controls the account.
b. refuse Tom’s order, because this would clearly not be for the benefit of Mary.
c. comply with Tom’s order, because Uniform Gifts to Minors accounts are not final.
d. comply with Tom’s order if Mary is under 18 years of age and refuse the order if she
is over 18 years of age.
Consumer protection statutes are identical in all fifty states and the District of
Columbia.
An output contract is too vague to be a legally-enforceable agreement.
If a contract is unclear, it will be interpreted against the party who drafted it.
If two firms consolidate, the new corporation usually succeeds to the rights, powers and
immunities of its component parts.
When a consumer gives a creditor a security interest in forthcoming health insurance
proceeds, the creditor must file a statement with the insurance company in order to have
a perfected security interest.
By virtue of an agency, one person can make contracts at numerous places with many
different parties at the same time.