According to the fault rule, if the person who gave the engagement ring breaks off the
engagement, then the other party can rightfully keep the engagement ring.
Limited partners have unlimited personal liability for the debts and obligations of the
limited partnership.
The retirement of a general partner does not dissolve a limited partnership.
Article 2 of the Uniform Commercial Code (UCC) adopts rules for risk of loss that are
closely tied to title.
Vestingoccurs when an employee has a non-forfeitable right to receive pension benefits.
Distributional interest refers to a member’s ownership interest in an LLC (limited
liability company).
Punitive damages are awarded only when there is no gross negligence.
Receipt of a share of business profits is prima facie evidence of a general partnership.
Presentment warranties are made by the drawer of a check or draft.
Tender of performancedischarges a party’s contractual obligations.
The FDA cannot withdraw approval of any previously licensed drug.
A gift of $30,000 to a named beneficiary is an example of a ________ gift.
A) special
B) general
C) legacy
D) residuary
Which of the following is an example of a horizontal restraint of trade?
A) resale price maintenance
B) division of markets
C) unilateral refusal to deal
D) conscious parallelism
If Matheson wishes to be covered for the possibility of the chauffeur getting into an
accident, he would require a(n) ________.
A) omnibus clause in his automobile insurance
B) collision clause in his automobile insurance
C) deductibility clause in his automobile insurance
D) double indemnity clause in his automobile insurance
What is vicarious liability?
A) nonliability
B) liability for multiple torts
C) liability without knowledge
D) liability without fault
Which of the following statements is true of discharge of contracts?
A) Anticipatory breach discharges the breaching party’s obligations to the contract.
B) Substantial performance is sufficient to discharge a contract.
C) Tender of performance discharges a party’s contractual obligations.
D) Tender is a conditional offer by contracting party to perform his or her obligations
under the contract.
The designation of d.b.a. (doing business as) refers to the description for a business that
is operating under a trade name.
Which of the following moral theory matches Steve Templeton’s approach in keeping
the plant open?
A) Kantian ethics
B) Rawls’s social justice theory
C) ethical fundamentalism
D) utilitarianism
________ of the Uniform Commercial Code (UCC) is a model code that establishes
rules for the creation of, transfer of, enforcement of, and liability on negotiable
instruments.
A) Article 5
B) Article 3
C) Article 2
D) Article 2A
A gift of real estate by will is called a(n) ________.
A) bequest
B) devise
C) abatement
D) general gift
Which of the following statements is true about appellate courts?
A) Appellate courts cannot reverse a finding of factmade by the jury.
B) Appellate courts cannot reverse a finding of factmade by the judge.
C) Appellate courts permit brief oral arguments between attorneys.
D) An appellate court cannot reverse a decision of a lower court.
Gregory borrows $200,000 from Mountain Bank to purchase a plot of land, and
Mountain Bank perfects its security interest. Gregory defaults on the loan, and owes an
outstanding balance of $80,000. His house has gone down in value to $160,000 at the
time of default, but he has other personal assets to satisfy the debt. Which of the
following is a course of action for Mountain Bank to recover the debt after foreclosing
on the loan?
A) proceed to judgment against Gregory
B) file a financing statement
C) release a termination statement
D) proceed to repossess the collateral
A(n) ________ refers to an agreement entered into among members that governs the
affairs and business of the LLC (limited liability company) and the relations among
members, managers, and the LLC.
A) certificate of interest
B) article of organization
C) operating agreement
D) agreement of conversion
Which of the following is true for the shipping term F.O.B. (free on board) point of
shipment?
A) It requires the seller to bear the expense and risk of loss until the goods are tendered
to the buyer at the place of destination.
B) It refers to a pricing term that includes the cost of the goods and the costs of
insurance and freight.
C) It requires the seller to bear the expense and risk of loss of the goods until delivery
has been tendered.
D) The buyer bears the shipping expense and risk of loss while the goods are in transit.
Millie receives a parcel from her aunt in Indonesia. The delivery man asks her to sign
an authorization document to receive the parcel. Millie signs without reading the
document, as she is in a hurry. However, on the other side of the document are contract
terms that transfer all of Millie’s property to the delivery man. This is an instance of
________.
A) fraud in the inception
B) fraud in the inducement
C) fraud by concealment
D) misrepresentation of law
________ is a crime that involves the willful or malicious burning of a building.
A) Larceny
B) Arson
C) Battery
D) Embezzlement
If a franchisor makes sales or earnings projections based on hypothetical examples, the
franchisor must ________.
A) display a cautionary statement that warns against misuse of the franchisor’s
intellectual properties
B) disclose the assumptions underlying the estimates
C) register the disclosure document with the FTC prior to its use
D) state that all data disclosed is only hypothetical and that actual data will be made
available at the earliest
In banking terminology, a creditor-debtor relationship is created when a customer
________.
A) fails to maintain adequate funds in his bank checking account
B) makes a deposit into a bank
C) writes a check against his account
D) writes a postdated check drawn on his bank
A(n) ________ refers to permission that an administrative agency grants to persons or
businesses to conduct certain types of commerce or professions.
A) easement
B) license
C) letter of credit
D) arraignment