In the United States, sales contracts and contracts for the payment of money are not
assignable.
In a sale or return contract, the buyer has the option of returning all the goods to the
seller.
If the builder breaches a construction contract either before or during construction, the
owner can recover the increased cost above the contract price that he or she has to pay
to have the work completed by another contractor.
The offer must be communicated to the offeree for the offer to be effective.
In a guaranty situation, there is only one contract among three parties.
A conditional promise is not a negotiable instrument.
Denying employment to a woman because she is pregnant is a form of quid pro quo sex
discrimination.
In a double net lease arrangement, property taxes are shared between the tenant and the
landlord.
The infancy doctrine binds an adult to a minor’s decision on a contract.
When there is an allegation of undue influence in making a will, the courts only
consider direct evidence as proof.
Which of the following is true of a shareholder voting agreement?
A) It is an agreement between the board of directors and a shareholder.
B) It has a limited duration of 10 months.
C) It does not have to be filed with the corporation.
D) It is always revocable.
Unless otherwise agreed, the buyer’s payment in a shipment contract is due to the seller
when ________.
A) shipment is in transit
B) goods are delivered
C) contract is signed
D) shipment is handed over to the carriers
Which of the following is mandatory for the addition of a new limited partner to an
existing limited partnership?
A) death or retirement of a limited partner
B) majority vote in a formal election constituting all partners
C) written consent of all partners
D) merger with another limited partnership
Which of the following is true of a life tenant?
A) A life tenant has the right to sell the life estate at will.
B) A person who gives a life estate to another is called a life tenant.
C) A life tenant can possess the life estate to the point of rendering it worthless by
permanent damage.
D) A life tenant is treated as the owner of the property for the duration of the life estate.
Which of the following is an illegal strike?
A) sit-down strike at the employer’s premises
B) absence from work
C) cessation of work
D) employer lockout
In which of the following cases does the conversion of an existing business to an LLC
(limited liability company) take effect?
A) when the articles of organization are filed with the secretary of state
B) when the members enter into an agreement of conversion
C) when an operating agreement is finalized by the members
D) when the first certificate of interest is issued
The term ________ refers to a secured creditor’s possession of collateral on a debtor’s
default and proposal to retain the collateral in satisfaction of the debtor’s obligation.
A) repossession
B) disposal of the goods
C) disposition of collateral
D) retention of collateral
Which of the following is true of religious discrimination?
A) Only monotheistic religions are covered under Title VII.
B) An employer must reasonably accommodate religious observances or practices of its
employees at the workplace.
C) An employee who claims religious discrimination cannot sue the employer for any
other violation of Title VII.
D) Religious organizations can give preference in employment to individuals of a
particular religion.
A codicil must be ________.
A) executed before the will has been created
B) read as a separate instrument from the will
C) inclusive of a reference to the will it is amending
D) amended in the presence of the same witnesses who signed the will
The Revised Model Business Corporation ACT (RMBCA) provides that corporate
existence begins when the articles of incorporation are filed.
________ is a rule which provides that an action for breach of any written or oral sales
or lease contract must commence within four years after the cause of action accrues.
A) Perfect tender rule
B) Specific performance decree
C) Replevin
D) Statute of limitations
ULab Inc., a biotechnology firm, recently had a fire in one of its offices, which resulted
in the office building being fire gutted. The employees were not trained through fire
drills, and the 10-story building had no fire escape route. Consequently, many
employees were hospitalized for physical injuries, burns, and toxic smoke inhalation.
What important social responsibility theory was ULab negligent of by not training its
employees through fire drills and not installing a fire exit?
A) corporate citizenship
B) moral minimum
C) stakeholder interest
D) maximizing profits
The Food and Drug Administration is empowered to ________.
A) recall unsafe toys, appliances, and other consumer products which are harmful to
users
B) regulate the safety of meat, poultry, and other food products
C) prosecute violators directly by imposing fines and pronouncing sentences
D) obtain orders for the seizure, recall, and condemnation of harmful products
Which of the following is true about a plurality decision of the Supreme Court?
A) It settles a case but does not set the precedent for later cases.
B) It affirms the decision of the lower court.
C) It settles a case and sets the precedent for later cases.
D) It causes a case to be reviewed again at a later date.
A member of a minority race applies for a promotion to a position advertised as
available at his company. The minority applicant, who is qualified for the position, is
rejected by the company, which then hires a nonminority applicant for the position. The
minority applicant can bring a claim under ________.
A) Title I of Americans with Disabilities Act
B) Title II of Genetic Information Nondiscrimination Act
C) Title VII of the Civil Rights Act
D) Lilly Ledbetter Fair Pay Act
An obligee who transfers the right to receive performance is called the ________.
A) subsequent assignor
B) obligor
C) assignor
D) assignee
The right to picket is implied from the ________.
A) National Labor Relations Act
B) Norris-LaGuardia Act
C) Labor Management Relations Act
D) Labor Management Reporting and Disclosure Act