The Parker Doctrine exempts many anticompetitive acts from the antitrust laws.
Answer:
A sole proprietorship and a partnership are taxable entities, but a corporation is not.
Answer:
If an offeree accepts the offer but complains about the terms of the offer, a rejection is
implied.
Answer:
The defendant need not actually touch the plaintiff’s body to be liable for battery.
Answer:
The first federal safety statute that applied to all types of businesses was the
Occupational Safety and Health Act.
Answer:
The United States awards the exclusive rights over patentable subjects to the first
individual to file an application rather than the inventor of the product or process.
Answer:
An instrument can be made payable to two or more payees.
Answer:
Corporations can be convicted of crimes.
Answer:
If the drawer of a check orders the drawee bank not to pay the check, the drawee bank
generally owes the drawer a duty not to certify the check.
Answer:
Partners may agree at any time that the interest of one partner shall be purchased by the
partnership or by one or more of the other partners.
Answer:
If an instrument is undated, its “date” is the date it is issued by the maker or drawer.
Answer:
Six months before filing for bankruptcy, Shirley sold her new car to her brother, Claude,
for $100 so that her creditors could not claim it. The market value of the car was $8,000
at the time of the sale. Under these circumstances:
A. the transfer is voidable by the trustee because Shirley did not receive fair
consideration for this transfer.
B. the transfer is not voidable by the trustee because the transfer occurred 6 months
before Shirley filed her bankruptcy petition.
C. the transfer is not voidable because the transfer occurred between two relatives.
D. the transfer is voidable by the creditors.
Answer:
The parol evidence rule:
A. makes certain classes of oral contracts unenforceable.
B. applies to all contracts for an amount greater than $500.
C. is a potential source of danger for parties who reduce their agreements to written
form.
D. provides lenience to the parties if a few terms agreed upon are excluded in writing.
Answer:
An agency coupled with an interest means:
A. either party may terminate the agency at any time.
B. the agency may not be able to recover the debt in the event of the principal’s death.
C. the agency is irrevocable without the consent of the agent.
D. each party has the power to terminate without breach of contract if done so within 18
months.
Answer:
The Labor-Management Reporting and Disclosure Act:
A. requires employers to disclose the wages of their employees.
B. requires a union to have a constitution and bylaws.
C. requires employers to disclose their meeting minutes taken in any union negotiation.
D. requires that manufacturing workers be informed of hazardous chemicals in the
workplace.
Answer:
Under the Sarbanes-Oxley Act of 2002:
A. it is a misdemeanor to defraud shareholders.
B. it is a felony to defraud shareholders of a private company.
C. whistleblowers are offered legal protection.
D. CEOs and CFOs cannot be held liable for any misconduct.
Answer:
Which of the following shareholders are entitled to vote?
A. Someone who owns a preferred stock and has it listed in his name.
B. Those who are shareholders of record on a date prior to that established by the
directors.
C. A stockbroker without a proxy from the record holder.
D. A person with legal title to the stock.
The person who has legal title to the stock is the one usually entitled to vote.
Answer:
Which of the following statements concerning foreclosure of liens is TRUE?
A. The lienholder need not give notice to the debtor for holding a sale of the possessed
goods.
B. Even if there is a statutory procedure, the lienholder must first bring a lawsuit against
the debtor.
C. The right of a lienholder to possess goods does not automatically give the lienholder
the right to sell the property.
D. The lienholder cannot have the property sold at a judicial sale.
Answer:
The EFTA differs from the FCBA regarding:
A. consumer’s liability when the EFT card is stolen.
B. bank’s liability if it makes unauthorized transfers.
C. the consumer’s liability for unauthorized electronic funds transfers.
D. the financial institution’s liability to the consumer for failure to make or stop
payments.
Answer:
A note in which the maker promises to pay to the order of James Brown $1,000 or a
seven-string Martin guitar:
A. is not negotiable because it contains a conditional promise.
B. is negotiable for payment of the guitar only.
C. is negotiable for payment only if James Brown is the holder of the instrument.
D. is not negotiable because it is not payable for money alone.
Answer:
A trade secret is also called ____.
A. performance standard
B. contributory copyright
C. compilation of information
D. propriety information
Answer:
Express authority:
A. is created when the principal specifically describes the extent of the agent’s powers.
B. arises from the principal’s failure to inform third persons that the relationship is not
what it appears to be.
C. occurs with respect to an act of an agent who has exceeded the authority given.
D. is created by the conduct of the principal that causes a third person reasonably to
believe that another has the authority to act for the principal.
Answer:
The adversary system is characterized by:
A. the idea that ultimate truth and justice will prevail if each party to a dispute is
represented by competent attorneys providing the strongest possible representation.
B. the minimal role played by lawyers.
C. the unconditional free reign granted to judges.
D. the notion that the effective functioning of the judicial system will be undermined if
a client does not feel free to speak with his attorney.
Answer:
Which of the following statements is TRUE of wire transfers?
A. Article 4A, which covers wire transfers, includes consumer payments that are
covered by EFTA.
B. International wire transfer systems are known as ” Fedwire.”
C. The Federal Reserve operates a domestic wire transfer system that can be made
through CHIPS.
D. Electronic funds transfers between business and financial institutions are generally
referred to as wholesale wire transfers.
Answer:
Which of the following statements is TRUE of the ADA?
A. The ADA protects a qualified individual with a disability from discrimination on the
basis of that disability.
B. Most of the provisions of the ADA are very different to those of the Rehabilitation
Act.
C. The ADA makes clear that the ADAA should be interpreted in favor of broad
coverage.
D. “Reasonable accommodation” under the ADA includes providing quality treatment
for drug and alcohol dependency.
Answer:
OSHA imposes on employers a general duty to:
A. prevent workplace hazards that may cause death or serious injury.
B. provide reasonable leave periods for family-related health issues.
C. develop and enforce their own health and safety programs.
D. make the workplace more accommodating to women and families.
Answer:
According to the UCC, title to goods may pass to the buyer:
A. only when the seller hands the buyer a certificate of title.
B. upon identification of the goods by the buyer.
C. when the document of title is delivered by the seller.
D. only after the seller delivers the goods at the buyer’s residence.
Answer:
The primary way a case can be appealed to the Supreme Court is through a:
A. writ of habeas corpus.
B. writ of quo warranto.
C. writ of certiorari.
D. writ of mandamus.
Answer:
When regulatory reforms interfere with the exercise of individual rights, they are
subject to:
A. both a substantive and a procedural due process challenge.
B. only a substantive due process challenge.
C. strict scrutiny analysis, irrespective of the level of interference.
D. only a procedural due process challenge.
Answer:
Which of the following statements is TRUE about conversion and trespass to personal
property?
A. Trespass to personal property does not require intent, while conversion does.
B. The degree of interference with another’s property rights acts as a basis for the
difference between the two.
C. Consent acts is a defense to conversion but will not be considered as a defense for
trespass to personal property.
D. Courts do not consider extent of harm to property as a difference between
conversion and trespass.
Answer: