Not all contracts are agreements.
A doctor who injects an antibiotic into a patient’s arm without his/her consent may be
liable for battery.
Until recently the only view of corporate responsibility built into the U.S. statutory and
common law was:
A. making a profit for its creditors.
B. making a profit for its shareholders.
C. making a profit for public purposes.
D. making a profit for the government.
The globalized new world order is the only theory that has abandoned the notion that:
A. multi-national corporations are the seat of power.
B. NGOs should act as a global police.
C. the nation-state is the primary actor on the global stage.
D. international law has a set of unambiguous goals.
The Model Rules of Professional Conduct for attorneys was established by:
A. the American Bar Association.
B. the National Conference of Commissioners on Uniform State Laws.
C. the American Lawyer’s Cooperative System.
D. Congress.
What is the theory behind the doctrine of respondeat superior?
A. Torts committed by an employee working for an organization will result in the
employee and the employer being held liable under tort law.
B. An employee may be held liable under tort law for the torts committed by his/her
employer, while the employee was working at the organization.
C. An employee working with an organization and having committed a tort can be held
liable for even though he/she did not intend the harm.
D. An organization is not held liable under tort law for the torts committed by its
employees during their work tenure at the organization.
Abbot Vending Co. has a license to install vending machines at the Slumber Apartment
Complex. Can Abbot transfer this right to Zeno Concession Co.?
A. Yes, if Zeno provides identical services.
B. No, since the license is a personal privilege.
C. Yes, if their agreement gives ownership interest in the property.
D. No, since it is a possessory estate.
In the globalized world, the ____ becomes the seat of ultimate economic, political, and
military power.
A. military bloc
B. multinational corporation
C. decentralized democracy
D. centralized autocracy
Which of the following is true of criminal law under the American law system?
A. When a crime is committed, the victim has a cause of action against the accused and
is permitted to recover money as compensation from the defendant.
B. In a criminal case the prosecutor or district attorney is required to prove the criminal
defendant guilty by a preponderance of the evidence.
C. Defendants are protected from being tried for a criminal offense and then being sued
under tort law for that same wrongful act.
D. If a defendant is accused of an offense that can be designated as two different
crimes, he or she can be tried in two different courts.
Samantha purchased a used computer system from Office Rental Inc. who was updating
its computers. Later Big Bank asserted the right to repossess the used computer system
from Samantha since it had a lien on all of Office Rental’s business equipments that
secured an unpaid loan. Samantha was unaware of this lien. What are Samantha’s legal
rights?
A. She can sue Office Rental for breach of warranty of title.
B. She can claim that she was unaware of Office Rental’s debt, and hence Big Bank
cannot assert its lien.
C. She can continue to possess the computer system, since she paid Office Rental for it.
D. She can claim a refund from Office Rental but cannot bring a lawsuit against Office
Rental or Big Bank.
Which of the following is considered to be future goods?
A. Office furniture
B. Stocks
C. Fish in the sea
D. Gasoline at a gas station
Which of the following theories points out that officers and the directors of a
corporation are in the best position for judging not only the needs of the corporation but
also the needs of the community and the needs of society at large?
A. Special Interest Group Control
B. Governmental Control
C. Corporate democracy
D. Managerial Control
Under the UPA, a tenancy in partnership has all the following characteristics except:
A. a partner has an equal right with all other partners to possess and use specific
partnership property for partnership purposes but not for that partner’s personal use.
B. partners’ rights in partnership property are not subject to attachment for personal
debts.
C. a deceased partner’s interest in real property held by the partnership passes to the
surviving partners.
D. a partner is not co-owner of partnership property and has no interest in partnership
property which can be transferred, either voluntarily or involuntarily.
When Julie, aged 27, took flu medication and became very light-headed and confused,
Alice, taking advantage of the situation persuaded Julie to sell her $1,000 Rolex watch
to her for $100. Julie later realizes what Alice did and decides to take legal action.
Which of the following is true as per contract laws?
A. Julie cannot sue Alice since she, as an adult, voluntarily sold the watch.
B. Julie has the right to get her watch back without returning the $100.
C. Alice is allowed to keep the watch and Julie should return the $100.
D. Alice should return the watch and Julie should return the $100.
The quasi-contract:
A. does not result from the mutual assent of the parties.
B. can be applied even when one party bestows a benefit on another unnecessarily.
C. cannot be imposed by a court.
D. can be implemented to obtain payment for an act that a party simply feels should be
done.
Joshua, a merchant, promises in a signed writing to Pedro, a consumer, to hold an offer
to sell goods open for five months. However, Joshua sells the goods to another
consumer and Pedro sues him for breach of contract. Which of the following is true of
this case?
A. Joshua is not bound by the contract since firm offers cannot exceed three months.
B. Since Joshua is a merchant and is bound by a firm offer made to Pedro, he has
breached contract.
C. The UCC will not enforce this contract as a firm offer as both parties are not
merchants.
D. Joshua is bound by this offer only if a five month offer is customary for this type of
good.
The Landrum-Griffin Act:
A. established a bill of rights for union members.
B. allowed states to legislate right-to-work laws.
C. created the National Labor Relations Board.
D. outlawed yellow-dog contracts.
Samantha believes that one can only judge another’s ethical decisions by ‘standing in
his/her shoes.” Samantha believes in
A. situational ethics.
B. social contract theory.
C. utilitarianism.
D. natural law theory.
To succeed in a wrongful discharge lawsuit grounded on the public policy tort
exception to employment-at-will, the lack of an overriding business justification
means:
A. that the public will be endangered if the court does not dissuade the type of firing
involved in the case.
B. the establishment of the fact that the employer had no legitimate business reason for
the discharge of the employee.
C. the existence of a definite public policy, clearly created by the U.S. Constitution, the
state constitution, or a general governmental policy.
D. that the discharge be induced by actions that are related to the stated public policy
issue.
The _____ has unified, streamlined, and refined the legal principles regarding such
diverse areas as reverse engineering, consumer protection, shrinkwrap licenses, fair use,
and consumer warranties.
A. Law Enforcement Access to Entity Information Act
B. Discovery of Electronically Stored Information Act
C. Uniform Computer Information Transactions Act
D. Secured Electronic Transactions Act
To submit a shareholder proposal, a shareholder must own _____ percent or _____
dollars in market value of the voting stock of the corporation.
A. 5; 5,000
B. 3; 1,000
C. 1; 2,000
D. 1; 5,000
Repair Garage rents tools and stalls to auto mechanics, who are independent
contractors, to repair cars. Repair Garage allows Joe to print business cards reading
“Repair Garage – Joe, certified mechanic.” A customer is unhappy with the repairs Joe
made to her car and sues Repair Garage. What legal theory, if any, would allow Repair
to be sued by the customer?
A. Express authority
B. Implied authority
C. Apparent authority
D. Incidental authority
Sue receives a $5,000 engagement ring from Tau but unfortunately Tau dies before the
marriage can occur. Tau’s parents, as his heir, want the engagement ring but Sue wants
to keep it. Who is legally entitled to the ring in most states?
A. Tau’s parent, since the ring was a conditional gift.
B. Sue, since Tau the donor is dead.
C. Tau’s parents, since Tau did not state that Sue was to have the ring if he were to die.
D. Sue, since the engagement was not broken by mutual agreement or by Sue.
Under this federal statute, employers with more than 100 full-time employees must give
written notice to a union official 60 days before any plant closing or mass layoff.
A. Federal Employees’ Compensation Act
B. Fair Labor Standards Act
C. Worker Economic Opportunity Act
D. Worker Adjustment and Retraining Notification Act
A system in which debtors are forced to sell most of their property and use the cash to
pay their creditors a portion of the amount owed each one.
A. Family Farmer or Fishing Business Debt Adjustment
B. Reorganization
C. Liquidation
D. Individual Debt Adjustment
Dishonor means:
A. fraud in the payment method.
B. deception in the amount of payment.
C. refusal to pay a negotiable instrument.
D. an extension of payment.
Personal defenses are defenses that can be used against:
A. natural persons but not corporations.
B. a holder in due course of a negotiable instrument but not a holder.
C. a holder but not a holder in due course of a negotiable instrument.
D. any party with whom the holder in due course has dealt with.
_____ is money that may be offered legally in satisfaction of a debt and that must be
accepted by a creditor when offered.
A. Tender of payment
B. Warranty
C. Legal tender
D. Tender of performance
Corazon employs Josefina, a C.P.A., to represent her in tax liability negotiations with
the IRS. Josefina is busy with other clients and delegates the negotiation to Lillian, a
non-C.P.A. member of her office. Should Corazon object to this delegation?
A. Yes, Corazon is relying on Josefina’s skill and integrity.
B. No, Lillian is a member of Josefina’s office.
C. Yes, Corazon must approve in writing any delegation of authority.
D. No, delegations within offices happen regularly.
Under some state statutes, a merger involving an LLC requires a(n) _____ rather than
the two-thirds majority required of corporations.
A. 51% majority vote
B. one-third majority vote
C. 90% majority vote
D. unanimous approval
Alvin has discovered how to duplicate subway tokens, and has made several hundreds
of them with the intention of defrauding people. Which of the following crimes has
Alvin committed?
A. Larceny by false pretenses.
B. Using a forged instrument.
C. An act of embezzlement.
D. An act of bribery.
