Subsurface rights cannot be sold separately from surface rights.
The Private Securities Litigation Reform Act of 1995 replaced proportionate liability of
the defendant with joint and several liability.
If a nurse administers CPR to save the life of a dying man and negligently injures the
man’s arm in the process, the nurse cannot be sued as he or she is protected by Good
Samaritan statutes.
An accord is enforceable even though no new consideration is given.
The principal is liable for all torts of independent contractors.
The ________ is a uniform disclosure document that requires a franchisor to make
specific presale disclosures to prospective franchisees.
A) UFOC
B) UCC
C) UCITA
D) SEA
Under which of the following Uniform Commercial Code (UCC) requirements is a
holder considered a “holder in due course,” given that the holder performs the
agreed-upon promise in a negotiable instrument?
A) taking in good faith requirement
B) taking for value requirement
C) taking without notice of defect requirement
D) no evidence of forgery, alteration, or irregularity requirement
Under the ________ and state laws enacted to implement the unemployment
compensation program, employers are required to pay unemployment contributions.
A) Fair Labor Standards Act
B) Family and Medical Leave Act
C) Federal Unemployment Tax Act
D) Federal Insurance Contributions Act
Sam Muller and Toby Richardson organize an LLC (limited liability company) in the
state of Delaware. In the articles of organization, they specify the duration of the LLC
as 25 years from the date of filing the articles of organization. Which of the following is
true in this context?
A) The LLC is invalid as it does not specify a date of termination.
B) The LLC may be dissolved at will any time after 25 years from the date of filing the
articles of organization.
C) Muller and Richardson have organized a valid term LLC.
D) Muller and Richardson have organized an at-will LLC.
Which of the following is a legal requirement of marriage?
A) Neither party can be currently married to someone else.
B) Neither party can be eligible to marry if they are emancipated from their parents.
C) Both parties have to be above 18 years to marry even if they are emancipated from
their parents.
D) The marrying couple must be closely related by blood.
Which of the following is true of the Endangered Species Act?
A) It is the only federal law that protects wildlife at present.
B) It empowers the secretary of the interior to declare a form of wildlife as endangered.
C) It does not include marine species and amphibian life forms.
D) It applies only to situations where governments are responsible for endangering
animals.
Which of the following is one of the provisions of the Electronic Funds Transfer Act
and Regulation E of the Federal Reserve Board?
A) A bank can send unsolicited EFTS debit cards to a consumer only if the cards are
valid for use.
B) If a customer notifies the issuing bank of a stolen or lost debit card within two days
of the loss, the customer’s liability is limited to a maximum of $500.
C) A bank must provide annual statements of electronic funds transfers to customers
who conduct such transactions in a given financial year.
D) Other than for a telephone transaction, a bank must provide a customer with a
written receipt of a transaction made through a computer terminal.
Jill wins a lawsuit against Terry in the Wyoming state court. The court passes a
judgment for Terry to pay $20,000 to Jill. Immediately after the case is settled, Terry
moves to Colorado, where she owns a house, and refuses to pay Jill the money. Which
of the following is the best course of action for Jill?
A) file a lawsuit against Terry in a Colorado state court to enforce the Wyoming court
judgment
B) file another case against Terry in the Wyoming state court to collect the money
against Terry’s property
C) file a case against Terry in Wyoming to force Terry to sell her house in Colorado to
pay the money
D) file a case in the Colorado federal court as this qualifies as a federal question case
A(n) ________ breach of a contract occurs when a party renders inferior performance
of his or her contractual obligations.
A) material
B) minor
C) anticipatory
D) defensive
What kinds of goods are termed as future goods?
A) goods that exist but are to be sold at a future date
B) goods that are not yet in existence
C) goods that can be sold partly in the present and partly at a later date
D) goods that exist without a title
Which of the following statements is true of real property inherited under a will?
A) The person is not allowed to renounce the will after the death of the testator.
B) The person can only renounce the will before probate is conducted.
C) The person is not allowed to renounce the will if all outstanding claims against it are
not settled by him or her.
D) All outstanding claims against the property like liens and mortgages are inherited by
the beneficiary.
Preprinted forms whose terms the consumer cannot negotiate, and must sign in order to
obtain a product or service are referred to as ________.
A) contracts of adhesion
B) quasi-contracts
C) contracts in restraint of trade
D) voidable contracts
Throwing a lit match on the ground in the forest and causing a fire is a breach of
________.
A) appropriation
B) the Good Samaritan law
C) duty of care
D) res ipsa loquitur
________ represent rights that cannot be reduced to physical form, such as stock
certificates, certificates of deposit, bonds, and copyrights.
A) Real properties
B) Intangible properties
C) Fixtures
D) Immovable properties
A person buying goods from the place where the goods are manufactured would be an
example of ________ delivery.
A) noncarrier case
B) carrier case
C) shipment contract
D) destination contract
Which of the following is true of covenants and conditions?
A) A covenant is a conditional promise to perform.
B) A conditional promise becomes a covenant if the condition is met.
C) A contract cannot contain conditions to excuse performance.
D) A party cannot sue over breach of a covenant by the other party.
Which of the following is a perceived disadvantage of Rawls’s social justice theory?
A) It allows for those in advantageous positions to suppress people in least
advantageous positions.
B) It doesn’t consider the fact that people would not want to maximize benefits for the
least advantaged persons.
C) It only allocates people in advantageous positions to set up rules on morality.
D) It postulates that there are no universal ethical rules to guide a person’s conduct.