Not painting the house on time is a violation of a tenant’s duty not to commit waste.
The Securities Act of 1933 requires that before a corporation or another business sells
securities to the public, the issuer must file a registration statement with the Securities
and Exchange Commission (SEC).
If a landlord wrongfully locks his or her tenant out of the premises of the rented
property, it is termed constructive eviction.
The process of bringing, maintaining, and defending a lawsuit is generally referred to as
litigation.
A contract is created upon an equivocal response to an offer from the offeree.
A warehouse company has a lien on the goods in its possession for necessary expenses
incurred in storing and handling the goods.
Retention of collateral refers to a debtor’s repossession of the collateral after paying the
debt.
Manufacturers and sellers are strictly liable for failing to warn customers of the
generally known dangers of a product.
The Homeland Security Act was passed following the terrorist attacks of September 11,
2001 on the World Trade Center.
In a partially disclosed agency, the contracting third party transacts directly with the
principal and does not know the identity of the agent.
A buy-and-sell agreement allows shareholders to sell their shares to people other than
fellow shareholders or the corporation.
New partners cannot be added to a limited partnership once it is formed.
With regard to unenforceable contracts, an extortion call in which a man agrees to pay
money in return for his family’s safety would be considered as a(n) ________.
A) preexisting duty
B) illusory promise
C) illegal consideration
D) past consideration
In case of a breach of trade agreements of the World Trade Organization (WTO), which
of the following WTO bodies first hears the dispute?
A) a WTO panel
B) a WTO Appellate Body
C) the WTO dispute settlement body
D) the WTO General Council
________ is a doctrine that says automobile manufacturers are under a duty to design
automobiles by taking into account the possibility of harm from a person’s body striking
something inside the automobile in the case of a car crash.
A) Crash avoidance
B) Crashworthiness
C) Risk compensation
D) Conspicuity
________ place the nonbreaching party in the same position as if the contract had been
fully performed.
A) Tort damages
B) Compensatory damages
C) Nominal damages
D) Consequential damages
A ________ is a grant by the federal government upon the inventor of an invention for
the exclusive right to use, sell, or license the invention for a limited amount of time.
A) copyright
B) patent
C) trade secret
D) trademark
Armex, a large power plant, has been in the news for a potential defect in the
construction of its inner chambers that caused radioactive fumes to escape from the
plant to the surrounding areas. This has endangered the lives of the employees at the
plant as well as those staying in the nearby areas. This safety violation is likely to be
taken up by the ________ for corrective action like closure of the plant.
A) Federal Nuclear Agency
B) U.S. Army Corps of Engineers
C) Nuclear Waste Policy Commission
D) Nuclear Regulatory Commission
Roundwell Motors purchases a manufacturing plant for $15 million, pays $5 million in
cash as down payment, and borrows the remaining $10 million from Home Providence
Bank. To secure the loan, Roundwell gives the plant as collateral to Home Providence
Bank. If Roundwell defaults on their payment, what is the recourse available to Home
Providence to recover the loan?
A) buy the plant from Roundwell
B) return it to Roundwell
C) foreclose on it
D) hand it over to the government
What is the necessary condition for an accused person to be found guilty by a jury?
A) At least half the jurors have to find the defendant guilty of the crime.
B) All the jurors have to unanimously agree that the defendant is guilty of the crime.
C) More than 50 percent of the jurors have to find the defendant guilty of the crime.
D) The jury’s verdict has to be approved by the presiding judge.
Which two elements are required to find a defendant guilty of an intent crime?
A) criminal act and criminal intent
B) victim and criminal intent
C) criminal act and proof of gain
D) motive and criminal intent
Once a complaint has been filed with the court, the court will issue a ________,
directing the defendant to appear in court.
A) answer
B) rejoinder
C) summons
D) judicial restraint
Which of the following is an illustration of the possession of tangible token rule?
A) An obligee who is owed $10,000 assigns the right of collecting $5,000 each to two
assignees.
B) The right of collecting $10,000 is recorded in the assignee’s savings account
passbook.
C) The assignee can re-assign the right only to a subassignee selected by the obligee.
D) An obligee cannot assign a right to collection more than once.
Explain the role of recording statutes in real property contracts.
Briefly explain the working of an e-license.
Howard and Ali enter into a contract where Ali has to ship goods within six weeks of
signing the contract. Two weeks into the contract, Ali informs Howard that he cannot
provide the shipment on time. What type of contractual breach does this constitute?
Suggest Howard’s course of action following the breach of contract.
Explain the priority of law in the United States.
Describe the principal-agent relationship with respect to checks.
What is an implied agency?