A unilateral refusal to deal is a violation of Section 1 of the Sherman Act because there
is a concerted action with others.
The United Nations (UN) Security Council is composed of all UN member nations.
A corporation that pollutes a body of water has not met its moral minimum duty of
social responsibility even if the business later compensates those whom the pollution
has injured.
Kitchen cabinets in an apartment are considered fixtures.
According to Kantian ethics, one would be obligated to abide by a contract even if that
contract turns out to be detrimental to the obligated party.
The offeree must be objectively intended to be bound by the offer for the offer to be
effective.
In a shipment contract, delivery occurs when the shipment reaches the destination.
An indorser is allowed to indorse an instrument so as to make the indorsee his
collecting agent.
For federal question cases to be brought in a federal court, the dollar amount of the
controversy must exceed $75,000.
The right to sue another party for a violation of personal rights can be assigned.
The insurance business enjoys a statutory exemption from antitrust laws.
In most cases of a unilateral mistake, the mistaken party is permitted to rescind the
contract.
Which of the following is true of profits and losses of an LLC (limited liability
company) whose operating agreement does not contain profit or loss sharing clauses?
A) A member who invests 10 percent capital must bear 10 percent of the losses.
B) A member who invests 30 percent of the capital receives 30 percent of the profit.
C) A member who invests 40 percent of the capital receives 20 percent of the profit.
D) All members receive equal shares in profits regardless of the capital contributed.
A ________ requires a mortgage or deed of trust to be recorded in the county recorder’s
office of the county in which the real property is located.
A) recording statute
B) real property statute
C) mortgage statute
D) compilation statute
Those who disclaim liability and are not secondarily liable on instruments they endorse
are referred to as ________.
A) unqualified indorsers
B) qualified indorsers
C) agents
D) accommodation parties
________ is an action to undo a contract.
A) Rescission
B) Recession
C) Restitution
D) Inception
The ________ requires certain contracts to be in writing.
A) part performance exception
B) common law of contracts
C) equal dignity rule
D) Statute of Frauds
Which of the following is true of the Uniform Computer Information Transactions Act?
A) It establishes the rules for operation of franchises in the U.S.A.
B) It does not become law until a state adopts it as a statute.
C) It solely deals with the formation of electronic contracts, not licenses.
D) It addresses most of the legal issues that are encountered while starting an
entrepreneurial venture.
Jeremy crashes his friend John’s car because he is an incompetent driver. Emily, John’s
sister, is outraged and wants John to sue his friend. John refuses to file a case against his
long-time friend. Which of the following is Emily allowed to do in this situation?
A) She can sue Jeremy on John’s behalf, as she has standing to sue.
B) She can sue Jeremy, provided that John gives his consent.
C) She can file a case in the state court where she will have standing to sue.
D) She cannot sue Jeremy as she has no stake in the outcome of the case.
Which of the following is a seller’s remedy?
A) right to recover damages for nondelivery
B) right to dispose of goods
C) right to replevy goods
D) right to obtain specific performance
A will that is executed by two or more testators is known as a ________.
A) joint will
B) mutual will
C) reciprocal will
D) nuncupative will
Which of the following is true of compensation offered by an LLC (limited liability
company)?
A) Managers of an LLC are entitled to compensation and not benefits.
B) Members are not entitled to compensation for their services toward the LLC.
C) Members are not indemnified for liabilities in the ordinary course of business.
D) A nonmember manager of an LLC is not entitled to compensation.
Darrel, Smith, Keith, and Aaron are claimants to a collateral interest. Smith and Darrel
secure their interests. Aaron takes physical possession of the collateral. Keith files a
financing statement some time later. Who among the four will have highest priority of
claim to the collateral?
A) Darrel
B) Smith
C) Keith
D) Aaron
Yvonne finds a carpenter to do some repairs for her house and tells him that if he
finishes the job within Saturday, she would pay him $1,000. This offer creates a(n)
________ contract.
A) executed
B) executory
C) unilateral
D) bilateral