Only written express warranties are valid.
A seller can recover lost profits in a case where damages measured by the difference
between contract price and market price would not put the seller in the same position as
the performance of the contract would have.
The Sherman Act is the only major antitrust act that includes criminal sanctions.
Documents classified by the president to be in the interests of national security cannot
be accessed under the Freedom of Information Act.
A tenant in common can sell his or her interest in the property without the consent of
the other co-owners.
Duress is said to have occurred only where a threat involved a physical harm.
Chattel paper is a record that evidences both a monetary obligation and a security
interest in specific goods and software used in the goods.
In a destination contract, the seller is required to replace any goods lost in transit.
Federal law allows for discovery of an accountant’s work papers in a federal case
against the accountant’s client.
In a limited warranty, the warrantor must guarantee that a defective product will be
repaired or replaced free during the warranty period.
A member’s obligation to contribute capital is excused by the member’s death.
If the accord is not satisfied, the other party can sue to enforce the accord.
The incumbent management cannot issue additional shares in the market to defeat a
hostile tender offer.
________ is a social responsibility theory of business which says that a corporation
must consider the effects its actions have on persons other than its shareholders.
A) Corporate citizenship
B) Maximizing profits
C) Moral minimum
D) Stakeholder interest
When a party commits an anticipatory breach, the nonbreaching party ________.
A) must wait until the performance was due before suing
B) is immediately discharged from his or her own duties
C) cannot seek damages because he or she received advance notice of the breach
D) loses his or her right to sue after the due date for performance is reached
Subjects that are not compulsory or illegal are known as ________ subjects of
collective bargaining, which may be bargained for if the company and union agree to do
so.
A) secondary
B) alternative
C) permissive
D) conditional
The General Partnership Act (GPA) is a model act that codifies sole proprietorship law.
Real property can become personal property if it is ________.
A) removed from the land it is situated in
B) converted to an intangible property
C) fixed permanently to a piece of land
D) owned by more than one person at a time
________ refer to the formal documents that must be filed at the secretary of state’s
office of the state of organization of an LLP (limited liability partnership) to form the
LLP.
A) Articles of LLP
B) Agreements of conversion
C) Articles of organization of LLP
D) Articles of amendment of LLC (limited liability company)
Under the ________ doctrine, damages are apportioned according to fault.
A) contributory negligence
B) comparative fault
C) proximate cause
D) assumption of risk
Martin, who wants to sell a house he owns, authorizes his concierge, Wilhelm, to find a
potential buyer, and finalize a deal above a stipulated price. Wilhelm contracts Chris, a
real estate broker, and instructs him to only find a potential buyer and send them over to
Wilhelm for the sale. Martin then contracts ReNowait Goodhouses, a home
improvement company to renovate the house. ReNowait completes its work and Martin
pays them. Chris then searches for a suitable buyer and finds one in George. George
buys the house and Chris is paid for his services. Who performs the role of the agent in
this land sale transaction?
A) Wilhelm
B) Martin
C) Chris
D) George
Which one of the following would constitute a reward?
A) a person buying a car after seeing an ad about it
B) a person returning a lost item after seeing an ad about it
C) a seller accepting a bid for an item
D) a seller making an invitation for offers
A warranty that guarantees that a defective product will be repaired or replaced free
during the warranty period is known as a(n) ________.
A) implied warranty
B) full warranty
C) disclaimer warranty
D) limited warranty
A ________ is a person who intentionally or unintentionally causes injury or death to
another person.
A) protagonist
B) supplanter
C) reversionist
D) tortfeasor
Which of the following statements best represents the distinction between binding and
nonbinding arbitration?
A) Unlike nonbinding arbitration, binding arbitration takes place at a court, in the
presence of a judge.
B) If the arbitration is nonbinding, the decision and award of the arbitrator can be
appealed to the courts.
C) A nonbinding arbitration takes place at a court, in the presence of the jury.
D) A nonbinding arbitration implies that the arbitrator’s decision must be reinforced by
the courts.