Personal injury is not covered under a standard fire insurance policy.
Persons who entered into an illegal contract but withdrew before the illegal act was
performed can sue to recover consideration.
Limited liability companies are created by federal law.
Fraud in inducement occurs when the party does not know the terms of the contract.
Inadequate testing of a product can support a product liability lawsuit based on strict
liability.
Which of the following is true of minimum wages in the United States of America?
A) States can enact laws that set minimum wages higher than the federal minimum
wage.
B) Cities are not allowed to have minimum wages different from what is set by the state
or federal government.
C) Living wage laws set lower minimum wages than the federal level.
D) An employee who earns in tips must be paid minimum wage by the employer.
Halfren, a county in the state of Halizona, is extremely earthquake-prone. The governor
of Halizona sets up a committee to study the effects of past earthquakes on Halfren and
the possible methods that could be used to minimize damage and loss of life. The
committee found that a new technique of using steel reinforcements in building
columns would help reduce overall damages. The findings were put to a debate at the
local town hall, where it was accepted by a majority of the residents of Halfren. The
state government then passed a law making it mandatory to use the new steel-reinforced
columns while constructing new buildings in Halfren. Which of the following functions
of the law did the state government of Halizona exhibit in this case?
A) promoting social justice
B) maximizing individual freedom
C) shaping moral standards
D) facilitating orderly change
In a shipment of containers of widgets, which of the following would be considered an
implied warranty?
A) that the seller of the widgets has given an oral approval of the widgets in the
containers
B) that the description of the uses of widgets is mentioned in the contract
C) that the widgets are of an even kind, quality, and quantity within each unit
D) that a sample of the widget was given to the buyer for inspection
The ________ is an international organization created by a multilateral treaty in 1945 to
promote social and economic cooperation among nations and to protect human rights.
A) United Nations
B) League of Nations
C) General Agreement on Tariffs and Trade
D) World Trade Organization
Which of the following is a similarity between bearer paper and order paper?
A) both require a specific payee to be named
B) both require indorsements to be considered negotiable
C) both require delivery to be considered negotiable
D) both can be claimed by whoever presents the instrument for payment
What function of the law is being served when passing laws that protect the U.S.
government from the risk of being forcefully overthrown?
A) maintaining the status quo
B) shaping moral standards
C) facilitating orderly change
D) promoting social justice
A contract into which both parties enter but in which one or both of the parties can
choose not to perform their contractual obligations is known as ________.
A) illusory promise
B) gift promise
C) preexisting duty
D) illegal consideration
A contract is created when ________.
A) the acceptance has been received by the offeror
B) an acknowledgement is sent by the offeror to the offeree of receiving an acceptance
C) the offeree dispatches the acceptance
D) a written acceptance has been passed between the offeror and the offeree
Which of the following is true of the Clean Air Act?
A) It is the only major state law regulating air pollution in the United States.
B) It fails to include the air pollution caused by fuel and fuel additives in its purview.
C) It is only concerned with stationary sources of air pollution.
D) It requires air pollution controls to be installed on motor vehicles.
Which one of the following is the most favorable opinion an auditor can give a
company following an audit?
A) an unqualified opinion
B) a disclaimer of opinion
C) an adverse opinion
D) a qualified opinion