Archives: Quiz

To be enforceable, a contract for a sale of goods priced at $50 or more must be in writing. Under a destination contract, if a lessor is a merchant, the risk of loss passes to a lessee when the lessee […]

A usurious contract involves the purchase and sale of usable goods. To commit an intentional tort, one person must intend to harm a certain other person. Answer: FALSE If a buyer breaches a contract while the seller is still in […]

A judge instructs a jury as to the law that applies in a case. A landlord is usually required to give some period of notice to terminate a periodic tenancy. Answer: TRUE Patent protection begins on the date that a […]

A forum-selection clause indicates the place for the resolution of a dispute arising under a contract. An online offer should include provisions relating to dispute settlement. Answer: TRUE One way to acquire ownership rights to property is merely to possess […]

A check carries with it an implied promise to reimburse the bank for paying the check. A warranty deed provides the most protection against defects of title. Answer: TRUE Service of process is the process of obtaining information from an […]

Securities that are exempt from the registration requirement can generally be sold and resold without being registered. An accord and satisfaction requires that the amount of a debt be certain. Answer: FALSE Each partner is an agent of the partnership […]

Normally, when a nonbreaching party has been damaged by a breach of contract, he or she has a duty to mitigate those damages. A transfer of contract rights to a third party is a delegation. Answer: FALSE An ethics program […]

In most states, the courts no longer grant “equitable” remedies. An offer must be communicated to the offeree to be effective. Answer: TRUE Under the exclusionary rule, all illegally obtained evidence must be excluded from any related criminal prosecution. Answer: […]

A corporate officer is expected to be informed on corporate matters. In most states, a release requires a signed writing. Answer: TRUE A check is a special type of certificate of deposit. Answer: FALSE Common carriers are held to a […]

A spendthrift trust provides for a beneficiary’s transfer of his or her right to future payments of trust funds. A certificate of deposit is a type of draft. Answer: FALSE The holder of an artisan’s lien can foreclose and sell […]

No oral contract is enforceable under the UCC. In contract law, “consideration” refers to the courtesy that one party shows another in negotiating a deal. Answer: FALSE An assignment of a negotiable instrument is generally prohibited. Answer: FALSE Under the […]

If a lessor’s tender of delivery fails to conform to a contract in any way, the lessee can reject the goods. A joint tenant’s sale of his or her interest terminates the joint tenancy. Answer: TRUE An Internet service provider […]

Antidumping duties are the responsibilities of international environmental polluters. When two conflicting security interests are unperfected, the first to attach has priority. Answer: TRUE A power of attorney can be given only to an actual attorney. Answer: FALSE A continuation […]

It is presumed that a co-tenancy is community property unless there is a clear intention to establish a joint tenancy. A holding company is a company whose business activity consists of holding shares in another company. Answer: TRUE In a […]

A party seeking to recover in quasi contract must show that he or she has been unjustly enriched. Shares issued for more than their fair market value are known as watered stock. Answer: FALSE If an action is ethical from […]

There are no registration requirements for trade secrets. Contract law shows what excuses our society accepts for breaking certain types of promises. Answer: TRUE A financing statement is effective for no more than five months from the date of filing. […]

If a nonconforming installment substantially impairs the value of a whole contract, the buyer can treat the entire contract as having been breached. A bank that has certified a check is under no obligation to accept it. Answer: FALSE Venue […]

Under the Equal Pay Act of 1963, all of the women on an employer’s staff must be paid the same as all of the men. A person who holds all rights in property owns the property in fee simple. Answer: […]

When a corporation is dissolved voluntarily, the corporation must notify its creditors of the dissolution. Voir dire is a process for presenting evidence in a case. Answer: FALSE One of the requirements of a valid contract is a fair price. […]

A contract must be in writing to be enforceable unless its performance is impossible within one year. A mistake of fact can only be bilateral. Answer: FALSE Any third party beneficiary to a contract who is not an intended beneficiary […]

The yields on CDs are a function of: a. The credit rating of the issuing bank. b. The maturity of the CD. c. The supply and demand for CDs. d. The back-up line of credit. e. a, b, and c […]

In a completely integrated capital market: a. There are no restrictions to prevent investors from investing in securities issued in any capital market throughout the world. b. The required return on securities of comparable risk will be the same in […]

If actual reserves exceed required reserves, the difference is referred to as: a. Spread income. b. Secondary reserves. c. Excess reserves. d. Total reserves. e. None of the above. Warrants differ from exchange-traded call options in that: a. Warrants have […]

The term “hedge fund” was first used to describe: a. The private investment fund of Alfred Winslow Jones. b. The Quantum Group of Funds managed by George Soros. c. The offshore investment corporation of the United Kingdom’s Financial Services Authority. […]

The management fee structure for hedge funds is: a. A flat fee per investor or investor group. b. A fixed fee based on the market value of assets managed. c. A performance-based incentive fee. d. b and c only. e. […]

An appealing feature of the APT model is that: a. It makes fewer assumptions about investor behavior and the market structure. b. Is simple to use. c. Is easier to implement. d. Is more accurate in estimating the expected rate […]

Municipal bonds are traded in the: a. Over-the-counter market. b. Private market. c. Third market. d. Dutch auction market. e. None of the above. As a general rule, bonds are callable at: a. Maturity only. b. A premium above par. […]

The Nikkei 225 Stock Average and the TOPIX are the indexes for the stocks of established and large companies traded on the: a. Frankfurt Stock Exchange. b. London Stock Exchange. c. Tokyo Stock Exchange. d. Toronto Stock Exchange. e. Paris […]

Currency options traded in the over-the-counter market are: a. Standardized options. b. Customized options. c. Liquid options. d. Common options. e. None of the above. The price of a debt instrument must equal the sum of the: a. Present value […]

Mortgage insurance to provide a guarantee for the fulfillment of the borrower’s obligations is provided by the: a. Federal Housing Administration. b. Veterans Administration. c. Rural Housing Service insurance. d. PMI insurance. e. a, b, and c only. The highest […]

In a cap or floor, the only party that is required to perform is the: a. Buyer. b. Seller. c. Asset/liability manager. d. Depository institution. e. None of the above. Historical return distributions for a portfolio of a large number […]

Mortgage originators may generate income from mortgage activity in the form of: a. Origination fees. b. Secondary market profits. c. Servicing fees. d. a and b only. e. All of the above. The different types of pension plans include: a. […]

A major difference between options and futures is that: a. Options provide a symmetric risk/reward relationship. b. Futures provide a symmetric risk/reward relationship. c. Options provide an asymmetric risk/reward relationship. d. Futures provide an asymmetric risk/reward relationship. e. b and […]

Which of the below statements is FALSE? A) For residential mortgage loans, “value” is either market value or appraised value. B) For income-producing properties, the value of the property is based on the fundamental principles of valuation: the value of […]

The multifactor CAPM is attractive because: a. It is simple to use. b. It recognized nonmarket risks. c. It is easier to implement. d. All of the above. e. None of the above. The provision in a bond indenture that […]

One of the three major differences in the structures of a CMBS transaction and a nonagency RMBS transaction include: ________. A) Residential mortgages impose prepayment penalties or restrictions on prepayments. B) The role of the buyers when the structure is […]

If an investor has a six-month investment horizon, buying a 5-year, 10-year, or 20-year bond will produce the same six-month return. This interpretation of the pure expectations theory is referred to as the: a. Return-to-maturity expectation. b. Local expectations. c. […]

Compare and contrast Treasury bills, commercial paper, and certificates of deposits. Which of the following statements is most correct? a. Municipalities are not permitted to tax the interest income from securities issued by the U.S. Treasury. b. Municipal bonds are […]

Common stock represents: a. Ownership interest in a corporation. b. A liability. c. Program trading. d. Arbitrage. e. None of the above. A FLEX option is a contract whereby the terms of the contract can be customized with respect to: […]

A transaction in which an investor borrows to buy additional securities using the securities themselves as collateral is called: a. Leveraged buyout. b. Buying on margin. c. Short selling. d. All of the above. e. None of the above. In […]

The capital asset pricing model states that the expected return of a security is equal to the riskfree rate of return plus: a. Beta. b. A risk premium. c. The market risk premium. d. The market price of risk. e. […]

Describe the mechanics of trading futures options. With a debit card, a. A bill is sent to the debit cardholder periodically requesting payment for transactions that have been made in the past. b. Funds are immediately withdrawn from the purchaser’s […]

The two measures that have been found to be key indicators of the potential credit performance of a commercial mortgage loan are the debt-to-service coverage ratio and the loan-to-value ratio. CMBS are backed by either newly originated or seasoned commercial […]

How has the Court generally dealt with the publication of information about trial proceedings?Given at least two examples. Contrast substantive due process and the rational basis approach. How does the Court decide cases that involve what it deems fundamental rights […]

Describe three exceptions to the warrant requirement. What is the ultimate key to the Fourth Amendment according to Chief Justice John Roberts? Why do Epstein and Walker argue that Carhart v. Gonzalez may not be reason for concern that Roe […]

Why is precedent such an important criteria for the justices when deciding cases? Why might it not be such a good criteria? Answer: *a. varies What has the Court said about individuals having a fundamental right to die? The Supreme […]

How do the majority and dissenters differ in their approach to the concept of corruption in McCutcheon? Which argument do you find more persuasive? Why? How did the conscientious objector cases during Vietnam affect the right of religious freedom? Answer: […]

Why do you think the Court ruled against Butts but in favor of Walker? Randall Martinez, a Hispanic man, was convicted in a Texas court for the murder of a security guard during a bank robbery. Texas allows for the […]

How do supporters of incorporation through the privileges and immunities clause argue this clause specific makes rights apply to states? Answer: *a. varies According to the “loss of liberty rule” established in Argesinger v. Hamlin, what indigent defendants are eligible […]

Should the Court issue advisory opinions as some state courts do? Why or why not? Answer: *a. varies Why has the Court never had the chance to rule on the constitutionality of seditious speech? What might be the result if […]