The unemployment insurance program is financed by
a. taxes paid only by employers.
b. taxes paid only by employees.
c. taxes paid by both employers and employees.
d. none of these.
Of the following, the only one that is a trading partnership is a(n)
a. law firm.
b. medical office.
c. accounting firm.
d. auto repair shop.
An instrument is payable or at a definite time if it is payable
a. upon someone’s death.
b. when a certain event occurs.
c. thirty days after a certain date.
d. to a bank.
A state’s gaming statute is most likely to be violated by
a. a state-run lottery.
b. an all-night poker game at a private party in which one participant in the game takes
a “cut” of the winnings of the other game participants.
c. parimutuel betting at racetracks.
d. all of these.
A contract is unconscionable if
a. both parties are in pari delicto.
b. one party is in pari delicto and the other party is not.
c. it favors one party over another.
d. both parties to a contract are wealthy.
The number of jurors selected for a particular trial will
a. depend upon whether the trial is civil or criminal.
b. vary according to the particular state where the jurors reside.
c. vary according to the judge’s wishes.
d. be affected by both whether the trial is civil or criminal and by the particular state
where the jurors reside, but not according to the judge’s wishes.
A limited partnership requires
a. statutory permission.
b. at least one general and one limited partner.
c. a proper certificate to be filed.
d. all of these.
Whether an invention belongs to an employee or the employer depends on
a. the agreement between them.
b. the nature of the invention.
c. the work for which the employee was hired.
d. all of these.
Consumers’ rights may be enforced by
a. the federal government.
b. consumers individually.
c. a class action suit.
d. all of these.
Interrogatories are:
a. sworn statements of witnesses
b. written questions directed to the adversary in a civil trial.
c. the same as a subpoena
d. statements used by the defendant’s attorney to show that the plaintiff is being
“Pay to the order of Renee DiMarco (signed) J. Marx” is a(n)
a. special indorsement.
b. blank indorsement.
c. accommodation indorsement.
d. qualified indorsement.
By law, the only person a maker must provide for in a will is a(n)
a. minor child.
b. spouse.
c. aged parent.
d. grandchild.
The price at which goods are currently being sold is called the
a. market price.
b. contract price.
c. cover.
d. tender price.
It is not a requirement of a negotiable instrument that it
a. be payable in money.
b. be payable at a specified or determinable time.
c. be payable at a definite time.
d. contain an unconditional promise to pay.
The maximum interest rate that may be charged on a business loan is
a. 19 percent.
b. 12 percent.
c. 16 percent.
d. unlimited.
An IOU for $500 is
a. illegal.
b. a legal substitute for a check.
c. negotiable if properly signed.
d. nonnegotiable.
Damages to be awarded to an injured party in case of a breach of contract may be
determined by the parties in advance and stated in the contract. These damages are
called
a. substantial damages.
b. inconsequential damages.
c. liquidated damages.
d. equitable damages.
Minor saw an advertisement in a local newspaper that read: “Try a new X-Acto Electric
Knife in your own home on approval for five days. No obligation to buy. Fill out the
coupon and mail it in today.” Minor mailed in the coupon and received the knife. She
liked the knife and kept it past the approval period. Title and risk of loss legally passed
to Minor
a. when she mailed the coupon to the seller.
b. when the knife was delivered to her home.
c. when she kept the knife beyond the five-day period.
d. at no time, because approval was never given.
The purpose of the Truth in Lending Law is to protect the
a. creditor.
b. state.
c. consumer.
d. seller.
Assets that may not be taken in bankruptcy are referred to as ____________________.
A person who dies without leaving a valid will is said to have died
____________________.
When the offeree silently accepts benefits, knowing that they are not made as a gift,
a(n) ____________________ acceptance arises.
The agency primarily responsible for consumer safety is the ____________________.
Courts will sometimes enforce contracts when a small amount of consideration, such as
$1, is given for a promise. This small sum of money is called ____________________.
Tender offers are regulated by both federal and state securities laws.
Duties under a contract are transferred by ____________________.