According to the Uniform Simultaneous Death Act, each deceased’s property goes to
the government in case of simultaneous deaths.
An indorsee who accepts a defective instrument qualifies as a holder in due course.
Contracts involving fraud in inducement are not voidable.
Anti-assignment clause in a contract prohibits the assignment of rights under the
contract.
A limited liability partnership has no general partner.
Promissory estoppel is an equitable doctrine that permits enforcement of oral contracts
that should have been in writing.
Option contracts are examples of irrevocable offers.
Security interest is the rate of interest per annum which is entitled to the party that
secures payment or performance of an obligation.
Individual unions are not allowed to join the AFL-CIO (American Federation of
Labor-Congress of Industrial Organizations); the members need to be individual
employees.
All states require a marriage ceremony to be held before the marriage license is issued.
The board of directors makes policy decisions concerning the operation of a
corporation.
The name selected by a general partnership cannot indicate that it is a corporation.
Taking advantage of another person’s mental, emotional, or physical weakness and
unduly persuading that person to enter into a contract constitutes duress.
A proof of claim is a document required to be filed by a creditor that states the amount
of his or her claim against the debtor.
Which of the following is true of an option contract?
A) If the offeree chooses not to buy the property, then money paid in consideration must
be returned.
B) If money is paid as consideration, then that is not applied to the sale price.
C) Death or incompetency of either party terminates an option contract.
D) The offer cannot be revoked during the option period.
Which of the following would be considered a breach of contract?
A) acceptance of nonconforming goods by a buyer
B) nonacceptance of conforming goods by a buyer
C) delivery of conforming goods by a seller
D) nondelivery of goods to a buyer that has a document of title
The process through which the government can take private property for public use,
provided that just compensation is paid to the property holder, is known as ________.
A) future interest
B) constructive eviction
C) adverse possession
D) eminent domain
James had a contract with Frasier to fix Frasier’s plumbing issue at his home. The
contract was made for $3,000. But after the work was completed, Frasier refused to pay
anything unless James agreed to accept $2,500. In the above scenario, to avoid legal
nuisance, Frasier decides to compromise with James. He asks James to fix a tap in the
barn for $250, and modify the current contract to include the tap in the barn. James
agrees to this, and does as asked while Frasier remakes the contract. Which of the
following would this kind of settlement be referred to as?
A) duress
B) past consideration
C) accord
D) mirror image rule acceptance
An indorsement that does not specify a particular indorsee is known as a ________.
A) blank indorsement
B) special indorsement
C) qualified indorsement
D) restrictive indorsement
The term ________ refers to a doctrine that states that the courts will refuse to enforce
or rescind an illegal contract and will leave the parties where it finds them.
A) disaffirmance
B) exculpatory clause
C) emancipation
D) effect of illegality
Hartman, who worked for Aratize Inc. for 25 years, decides to retire. Upon hearing the
news of his retirement, the president of Aratize announces a bonus of $250,000 to
Hartman for his exceptional services toward Aratize thus far. But upon retiring,
Hartman isn’t paid the bonus. Hartman decides to sue the president and Aratize to
recover the promised bonus. Which of the following is true in this case?
A) It will be enforceable in court because it is a gift promise.
B) It will not be enforceable in court because of past consideration.
C) It will not be enforceable because the president is not authorized to make such a
promise.
D) It will not be enforceable because it is an unlawful consideration.
Reversibility is a principle of Kantian ethics which says that ________.
A) a person must be allowed to reverse his or her moral judgment to better suit his or
her needs
B) a person must treat all moral circumstances as one
C) a person must be allowed to selectively choose moral judgments based on the
circumstances
D) a person must abide by the rule he or she uses to judge the morality of someone
else’s conduct
Why was the Court of Appeals for the Federal Circuit created?
A) It was created to exercise appellate jurisdiction over members of the armed services.
B) It was created to hear cases that involve federal tax laws.
C) It was created to provide uniformity in the application of federal law in certain areas,
particularly patent law.
D) It was created to hear appeals from intermediate appellate state courts and certain
trial courts.
________ is a restraint of trade in which competitors agree that each will serve only a
designated portion of the market.
A) Resale market price maintenance
B) Profit-sharing
C) Market sharing
D) Gainsharing
________ is an equity doctrine that permits a court to order enforcement of a contract
that lacks consideration.
A) Illusory promise
B) Gift promise
C) Promissory estoppel
D) Option contract
Which of the following types of patents is valid only for a period of 14 years?
A) utility patent
B) process patent
C) business method patent
D) design patent
The ________ Act prohibits public companies from making personal loans to their
directors or executive officers.
A) Foreign Corrupt Practices
B) Deregulation and Monetary Control
C) Sarbanes-Oxley
D) Commodity Futures Modernization
Which of the following is true of bankruptcy law in the United States?
A) The 1978 bankruptcy law made it easier for debtors to be relieved of much of their
debt.
B) The 1978 bankruptcy law was deemed to be “creditor friendly.”
C) The bankruptcy act of 2005 makes it easier for debtors to be relieved of their debts
under federal bankruptcy law.
D) The 2005 bankruptcy act has been called “debtor friendly.”
________ is a moral theory which holds that individuals must decide what is ethical
based on their own feelings about what is right and wrong.
A) Ethical relativism
B) Kantian ethics
C) Utilitarianism
D) Rawls’s social justice theory
James had a contract with Frasier to fix Frasier’s plumbing issue at his home. The
contract was made for $3,000. But after the work was completed, Frasier refused to pay
anything unless James agreed to accept $2,500.
James’s attempt to make a new contract is void because it lacks consideration under the
________ concept.
A) illegal consideration
B) gift promise
C) past consideration
D) preexisting duty
Jones & Hilton Co. owned a large cold storage warehouse where they stored and
processed meat and meat products. An insider revealed to the media that the cold
storage failed to meet numerous safety standards, encountered repeated rodent attacks,
and sold potentially harmful and infected meat in the market without notifying
authorities. The ________ has the authority to conduct inspections of the cold storage
warehouse and initiate legal proceedings against the owners for endangering the health
of consumers.
A) Food and Drug Administration
B) Consumer Product Safety Commission
C) Federal Healthcare Commission
D) U.S. Department of Agriculture
Describe the Food, Drug, and Cosmetic Act.
How are assets distributed after the dissolution of a general partnership?
What are nonnegotiable contracts?
What is the conversion right for preferred stocks?
List the circumstances that can lead to termination by impossibility of performance.