.bz is a restricted domain extension and can only be used by businesses or organizations
in Brazil.
Ross makes an offer to Elizabeth to sell his automobile to her for $10,000. In this case,
Ross is the offeree and Elizabeth is the offeror.
The payee of a cashier’s check is also primarily liable on the instrument.
A joint venturer is not personally liable for the debts and obligations of the joint venture
partnership.
In a draft transaction, the payee is called the acceptor of the draft.
A forum-selection clause designates which nation’s court has jurisdiction to hear a case
arising out of a contract.
Insurance policies can only be sold by direct agents of an insurer.
A completed gift promise cannot be rescinded for lack of consideration.
A contract is created only when the offeror receives the offeree’s acceptance.
A Limited liability company (LLC) is taxed at the entity level.
Pursuant to the power given to it by Article III of the U.S. Constitution, Congress has
established the U.S. courts of appeals.
A network extension is a unique name that identifies an individual’s or company’s
website.
A(n) ________ is a contract a principal and agent enter into that says the principal
cannot employ another agent other than the one stated.
A) exclusive principal contract
B) exclusive agency contract
C) ratified contract
D) apparent agency contract
Which of the following is a compulsory subject during collective bargaining?
A) health benefits
B) discrimination
C) corporate reorganization
D) location of workplace
General government regulation consists of laws that regulate ________.
A) the legislative branch of the federal government
B) government-aided organizations
C) the executive branch of the federal government
D) businesses and industries
Mike deposited $100,000 in a bank and procured a certificate of deposit on it, payable
to himself, for repayment in five years with a five percent interest rate. A year after that,
Mike borrowed $25,000 from Jill, and gave her a promissory note to repay it in one
year. As collateral, Mike gave Jill the certificate of deposit and asked to put in a
prepayment clause, to which Jill agreed. They agreed that Mike could repay in monthly
payments, as mentioned in the note. In which of the following ways will the
prepayment clause help Jill?
A) It helps Jill to shorten the repayment period when she wishes.
B) It helps Jill acquire the whole amount in one payment in case Mike defaults.
C) It allows Mike to repay earlier than the stipulated time.
D) It obligates Mike to pay interest on the money he defaults.
Which of the following federal acts substantially amended federal bankruptcy law in
2005?
A) Bankruptcy Reform Act
B) Bankruptcy Abuse Prevention and Consumer Protection Act
C) the Nelson Act
D) the Chandler Act
Consistency is one of the two important principles of ________ upon which its
universal laws are based.
A) utilitarianism
B) Kantian ethics
C) Rawls’s social justice theory
D) moral relativism
Bill is trying to sell his house in Oklahoma City to George who lives in Arkansas. They
have a dispute over the terms of the contract and Bill decides to sue George. Which of
the following statements is true in this situation?
A) The Arkansas state court will hear this case as it has in personam jurisdiction over
George.
B) The Arkansas state court has in rem jurisdiction to hear this case.
C) The Oklahoma state court has in rem jurisdiction to hear this case.
D) The Oklahoma state court does not have jurisdiction to hear this case as the
defendant is from another state.
A ________ is a type of draft that is always paid at a future date.
A) sight draft
B) bill of exchange
C) time draft
D) demand draft
In a destination contract, when is the title to the goods considered to have passed to the
buyer?
A) when the buyer specifies a specific destination in the sales contract
B) when the seller tenders delivery of the goods at the specified destination
C) when the seller makes the shipping arrangements
D) when the seller hands over the goods to the common carrier
Which of the following statements is true when there is a defect in design of a product?
A) There was a failure to provide adequate instruction on use of the product.
B) There was a failure to warn customers about the possible dangers of using the
product.
C) A single item is defectively designed, and it has the potential to cause injury.
D) All the products are defectively designed and have the potential to cause injury.
Kenneth purchased a car from his local dealership, Quartent Cars. However, since the
car was not available in the color that Kenneth favored, the sales contract stipulated that
Kenneth could immediately pick up the car of his preferred color from a nearby
warehouse. The warehouse was owned by Mr. Henderson. Kenneth received the
document of title for the car upon payment and presented it to Mr. Henderson a week
later. But Mr. Henderson informed Kenneth that the car was damaged during a fire at
the warehouse. According to the UCC, which of the following parties holds the risk of
loss for the damage caused to the car?
A) The risk is to be borne by Kenneth.
B) Mr. Henderson has to take up the loss.
C) Quartent Cars must take the risk of loss.
D) The risk is to be borne jointly by Mr. Henderson and Quartent Cars.
In a(n) ________ franchise, the franchisor authorizes the franchisee to negotiate and
sell franchises on behalf of the franchisor.
A) chain-style
B) area
C) distributorship
D) processing plant
Which of the following crimes is an example of a white-collar crime?
A) larceny
B) arson
C) forgery
D) battery
A social responsibility theory of business which says that a corporation’s duty is to
make a profit while avoiding causing harm to others is referred to as ________.
A) stakeholder interest
B) corporate citizenship
C) maximizing profits
D) moral minimum
A(n) ________ authorizes a person who does not own adjacent land the right to use
another person’s land.
A) profit
B) license
C) easement appurtenant
D) easement in gross
A ________ is defined as the passing of title of goods from a seller to a buyer for a
price.
A) lease
B) sale
C) loan
D) gift
Which of the following is true of an LLC (limited liability company)?
A) An LLC is a creature of federal law.
B) An LLC is regarded a separate legal entity.
C) An LLC cannot hold title to property.
D) The owners of an LLC are called general partners or specific partners.
One of the features of the Marine Protection, Research, and Sanctuaries Act is that it
________.
A) requires the oil industry to adopt procedures and contingency plans to readily
respond to and clean up oil spills
B) requires a permit for dumping wastes and other foreign materials into ocean waters
C) requires the tanker owner-operator to prove that it is fully insured to cover any
liability that may occur from an oil spill
D) issues permits for discharge of dredged or fill material into navigable waters and
qualified wetlands
Tim Talon has been found by a court of law to be guilty of reckless driving and killing a
pedestrian as a consequence. His defense was that he was driving under the influence of
alcohol and lost control of his automobile. He was subsequently punished for his crime.
How would the court classify Tim Talon’s case for intent?
A) general intent crime
B) criminal intent crime
C) nonintent crime
D) specific intent crime
Klint Microsystems, a microprocessor manufacturer, was contracted by Zeitar Studios
to manufacture specially designed microchips to be used in an audio engineering
process. Zeitar was to pay Klint $300,000 as per the contract. Klint decided to redesign
their existing microchips and make them suitable for Zeitar. While the finished
microchips were being shipped via a carrier, Klint was informed of Zeitar’s insolvency.
Klint cancelled the shipment before it was delivered. Klint then resold the chips to
another studio where they had to settle for $150,000 as the chips were now only
suitable for specific audio engineering processes.
What legal action can Klint take against Zeitar?
A) sue and recover lost profits
B) sue to recover purchase price
C) get a court order asking for specific performance
D) exercise the buyer’s right to cover