If there is a confidential relationship between two people, any contract made by the
servient party that benefits the dominant party is presumed to be entered into under
undue influence.
An artisan’s lien is a statutory lien given to workers who furnish services or materials on
or for personal property in the ordinary course of business.
Adjudicated mental incompetence is a universal defense that can be raised against
holders and HDCs.
Minors can appoint an agent without court approval.
In a pro se divorce, the parties represent themselves in the divorce proceedings.
Only 20 percent of the Fortune 500 companies are incorporated in Delaware.
The bill of lading is a document of title that is issued by a common carrier to the bailee
when goods are received for transportation.
A person cannot be held contractually liable on a negotiable instrument unless his or her
signature appears on it.
Pollard entered into a sales contract to purchase a specific Picasso painting from Jenson
for $15 million. When Pollard tenders payment, Jenson refuses to sell the painting to
the buyer. Which of the following legal rights to remedy can Pollard exercise to retrieve
the Picasso painting from Jenson?
A) right to cover
B) right to recover damages for nondelivery
C) right to obtain specific performance
D) right to cancel the contract
Which of the following is true of a draft?
A) It is always a two-party transaction.
B) It is an unconditional written promise to pay.
C) It is a note created upon deposition of money.
D) It is a pay to order transaction.
The ________ Act, enacted by Congress in 2002, requires public companies to adopt
codes of ethics and establishes criminal penalties for companies that partake in
violations.
A) Glass-Steagall
B) Sarbanes-Oxley
C) False Claims
D) Business Norms
________ is a preferred stockholder right to be paid a stated dollar amount if a
corporation is dissolved and its assets redistributed.
A) Noncumulative preference
B) Cumulative dividend preference
C) Dividend preference
D) Liquidation preference
Which of the following is an example of an irrevocable offer?
A) counteroffer
B) gift promise
C) option contract
D) accommodation
From which of the following theories of morality is Rawls’s social justice theory
fundamentally derived?
A) the theory of utilitarianism
B) the theory of ethical fundamentalism
C) the social contract theory
D) the theory of moral relativism
Which of the following is true of a seller’s right to dispose of goods from a breach of
contract?
A) Any profit made on the resale or release of the goods has to be shared with the
original buyer.
B) Incidental charges can be recovered from the original buyer.
C) The seller cannot resell the goods unless the original buyer agrees to it.
D) The buyer can only dispose of goods that have already been delivered.
Which of the following must be included in the articles of incorporation?
A) The minutes of the first organizational meeting of the board of directors.
B) The number of shares the corporation is authorized to issue.
C) The dissolution terms of the incorporation.
D) The corporate seal must be used in the articles of incorporation.
Shareholders elect a panel of decision makers known as the ________.
A) registered agents
B) corporate officers
C) stakeholders
D) board of directors
Which of the following is true of how an implied warranty of merchantability is
created?
A) It is made by the buyer or lessee.
B) It is implied by law if the seller or lessor is a nonmerchant.
C) It is implied by law if the seller or lessor is a merchant.
D) It has to be explicitly expressed in a contract.
The ________ is a federal law enacted in 1970 to promote safety in the workplace.
A) Occupational Safety and Health Act
B) Fair Labor Standards Act
C) Family and Medical Leave Act
D) Employee Retirement Income Security Act
Jessica wants to buy a laptop from the website of Tenn Computers. Before confirming
the purchase, the website asks her to provide biometric identification using an
electronic scanner. This is an example of ________.
A) an e-licensing
B) an e-signature
C) an exclusive license
D) cybersquatting
When does a minor breach occur?
A) when a party rescinds the contract before actual work on the contract has
commenced
B) when a party renders substantial performance of his or her contractual duties
C) when the party who is being offered goods or services rescinds the contract
D) when the party who is offering goods or services rescinds the contract
Which of the following acts regulates internal union affairs and establishes the rights of
union members?
A) Landrum-Griffin Act
B) Gompers-Lewis Act
C) Taft-Hartley Act
D) Wagner Act
In which of the following circumstances is picketing unlawful?
A) when picketing obstructs customers from entering the employer’s place of business
B) when picketing is carried out against the struck employer’s product
C) when picketing is carried out against the neutral employer
D) when the employer carries out a “lockout” against the picketers at work premises