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Promissory notes are never payable on demand.
An agreement is created when the offeree receives the offer.
The Health Care Reform Act prevents insurance companies from denying health care
insurance to individuals with preexisting health conditions.
A threat of future harm or moral pressure is not considered false imprisonment.
If a member or manager of an LLC (limited liability company) is found to be a
tortfeasor, he or she is not personally liable for the injury or death.
During the review of a registration statement, the SEC does not pass judgment on the
merits of the securities offered.
If an agent exceeds his or her scope of authority, a principal is bound on the contract
only if he or she ratifiesthe contract.
Judges can define morality based on their individual views.
An affirmative action plan provides that certain job preferences will be given to
members of minority racial and ethnic groups, females, and other protected-class
applicants when making employment decisions.
Under the possession of tangible token rule, the first assignee who receives delivery of
the tangible token prevails over subsequent assignees.
Personal property includes land and property that is permanently attached to it.
According to the Sarbanes-Oxley Act, the ________, a federal government agency, may
issue an order prohibiting any person who has committed securities fraud from acting as
an officer or a director of a public company.
A) United States International Trade Commission
B) Federal Reserve System
C) Federal Communications Commission
D) Securities and Exchange Commission
________ is a rule that states that a minor is obligated only to return the goods or
property he or she has received from the adult in the condition it is in at the time of
disaffirmance.
A) Duty of restoration
B) Duty of restitution
C) Infancy doctrine
D) Emancipation doctrine
A(n) ________ can be obtained in writing from the other party if there is an indication
that a contract will be breached by that party.
A) adequate assurance of performance
B) replevy
C) right to obtain specific performance
D) good faith agreement
When Stella Finman found out that she was terminally ill, she drafted a will leaving all
her property to her son. During her period of illness, Stella was financially and
emotionally supported by her lawyer as her son was mostly away. When the will was
read upon her death, it said that her lawyer would get a 20 percent stake in Finman
Corp., a company Stella owned. Upon investigation, it was revealed that Stella's lawyer
took advantage of Stella's weakness and persuaded her to change the contractual terms.
This is an instance of ________.
A) undue influence
B) battery
C) duress
D) fraud
Alan tells Sherry that he will pay her $5,000 if she runs the Boston Marathon. Once
Sherry starts running the marathon, Alan ________.
A) can revoke the contract as informal verbal agreements are not binding
B) cannot revoke the contract
C) can reduce the money on offer
D) can only increase the money on offer
Any state or local law that "directly and substantially" conflicts with valid federal law is
preempted under the ________.
A) Supremacy Clause
B) Commerce Clause
C) Due Process Clause
D) Free Exercise Clause
A fundamental requirement for a negotiable instrument is that it must ________.
A) be supplemented with interest upon payment
B) be secured with collateral
C) contain a drawer, drawee, and a payee
D) be in a permanent state
When is the felony murder rule applied?
A) when the murder was committed without intent while committing another crime
B) when the crime involves the intended murder of another person
C) when the felon in the case was killed while the crime transpired
D) when the reason for the death is found to be involuntary manslaughter
Which of the following is true of perfection by possession of collateral?
A) A creditor cannot take possession of the collateral until a financing statement is filed.
B) No financing statement has to be filed if the creditor has physical possession of the
collateral.
C) A debtor cannot acquire security against the collateral without filing a financing
statement.
D) A financing statement can be filed only against intangible personal property placed
as collateral.
Which of the following statements is true of the European Union (EU)?
A) All issues have to be passed unanimously by the EU members to be enforced.
B) Every country in the European Union has adopted the euro as its monetary unit.
C) Custom duties have been removed among member nations of the European Union.
D) Custom tariffs have been removed for trade between the EU and the rest of the
world.
The Clean Water Act forbids the filling or dredging of navigable waters and qualified
wetlands unless a permit has been obtained from the ________.
A) Ministry of Environmental Protection
B) U.S. Army Corps of Engineers
C) Environmental Protection Agency
D) Nuclear Regulatory Commission
The term ________ refers to a third party who is not in privity of contract but who has
rights under the contract and can enforce the contract against the promisor.
A) third-party contractor
B) third-party assignee
C) subassignee
D) intended third-party beneficiary
According to the objective theory of contracts, the intent to enter into an express or
implied-in-fact contract is judged by the ________.
A) reasonable person standard
B) legality of the contract
C) doctrine of equity
D) common law of contracts
The ________ states that an executory contract which cannot be performed by its own
terms within one year of its formation must be in writing.
A) parol evidence rule
B) common law of contracts
C) merger clause
D) one-year rule
