The Health Care Reform Act requires health plans that provide dependent coverage to
continue coverage for a dependent child until the child turns 26 years of age.
An affirmation of the value of goods creates an express warranty.
The battle of the forms occurs when the offeror receives an acceptance drafted from the
offeree’s own form contract.
Failure to properly assemble a product constitutes a defect in design by the
manufacturer.
A financing statement covering fixtures is called a continuation statement.
If a fraud is committed by a member of the board of directors of a corporation, a written
notice to the corporation from individual shareholders is not required to bring a
derivative lawsuit.
Within a state, the state constitution precedes the U.S. Constitution.
To be effective, a disclaimer of the implied warranty of merchantability must
specifically mention the term merchantability.
To be enforced, a prenuptial agreement must be in writing.
An exclusive license means that for the specified duration of the license, the licensor
will not grant rights in the same information to any other person.
A company logo would be an example of a ________.
A) trade secret
B) patent
C) trademark
D) copyright
Which of the following best defines an initial public offering?
A) the issuance of an offering statement to the public prior to purchase
B) the filing of a registration statement by an issuer
C) the disclosure document released for public scrutiny
D) the sale of securities by an issuer to the public
Which of the following is true for the perfect tender rule under installment contracts?
A) The buyer cannot seek remedies against the seller for accepting noncorforming
goods.
B) The seller cannot invoke the right to cure rule.
C) The buyer can reject a shipment only if it impairs the value of the entire contract.
D) The buyer can reject replacements or cured goods.
Which of the following refers to the assets resulting from the exchange or disposal of
collateral subject to a security agreement?
A) sale proceeds
B) future advances
C) floating lien
D) after-acquired property
A(n) ________ is a voluntary exchange of promises between two or more legally
competent persons to do, or refrain from doing, an act.
A) offer
B) advertisement
C) agreement
D) proposal
A(n) ________ is an automobile insurance system used by some states in which the
driver’s insurance company pays for any injuries or death the driver suffers in an
accident irrespective of who caused the accident.
A) no-fault insurance
B) comprehensive insurance
C) automobile liability insurance
D) collision insurance
Joe’s Alternative Realty leased a piece of real estate to WideEye Builders. While still on
lease, Joe’s Alternative Realty gave that same piece of real estate as security interest to
procure a loan from Cloudnine Bank. The real estate, which was collateral, was
eventually repossessed by the bank from WideEye Builders, after Joe’s Alternative
Realty defaulted on their loan payment. What warranty had Joe’s Alternative Realty
breached with WideEye?
A) warranty against infringements
B) warranty of good title
C) warranty of no interference
D) warranty of no security interests
The ________ requires all contracts for the sale of goods costing $500 or more and
lease contracts involving payments of $1,000 or more to be in writing.
A) parol evidence rule
B) Lord Tenterden’s Act
C) firm offer rule
D) Statute of Frauds
How is legal precedent used between courts of different states?
A) Courts of a state cannot cite the judicial decisions of courts of another state in its
decisions.
B) Courts of a state must follow precedent from courts of another state for similar
cases.
C) Courts of a state can use precedent from courts of another state as a form of
guidance.
D) Courts of a state cannot challenge the precedence of courts of another state.
Section 24 of the Restatement (Second) of Contracts defines a(n) ________ as the
manifestation of willingness to enter into a bargain, so made as to justify another person
in understanding that his assent to that bargain is invited and will conclude it.
A) order
B) offer
C) advertisement
D) revocation
Which of the following is the only act that includes criminal sanctions for the usage of
unfair trade practices?
A) the Clayton Act
B) the Sherman Act
C) the Robinson-Patman Act
D) the Federal Trade Commission Act
The Indian Gaming Regulatory Act sets the terms of ________ on tribal land.
A) casino gambling
B) hunting and gathering
C) agriculture and animal rearing
D) mining
Which of the following does the Money Laundering Act prohibit?
A) the fraudulent conversion of property by a person to whom that property was
entrusted
B) obtaining property from another, with his or her consent, induced by wrongful use of
actual or threatened force
C) the use of mails or wires to defraud another person
D) knowingly engaging in a financial transaction that involves the proceeds of an
unlawful activity
Which of the following phrases explains the term lease?
A) an interest in real property given to a lender as security for the repayment of a loan
B) an interest in real property for a person’s lifetime
C) the transfer of the right to use real property for a specified period of time
D) a right to use someone else’s land without owning or hiring it