Archives: Quiz

In a corporation, a large number of investors may pool their assets to finance a large business enterprise. Sal was at home going through his normal workout when he bent his barbell bar. Sal is a professional bodybuilder, and this […]

In terms of defamation liability, members of the United States Congress enjoy an absolute privilege when they are speaking on the floor of the Senate or the House of Representatives. Criteria used to make employment decisions that have a disparate […]

An offer to buy or sell goods may be accepted in any manner that is reasonable under the circumstances. The UCC statute of limitations applies when a party is seeking recovery on strict tort liability, fraud or negligence. Answer: F […]

Copyright of a “work made for hire” runs for the life of the creator of the work plus 50 years. A person has an insurable interest in property if destruction of that property would cause a monetary or pecuniary loss […]

Commercial General Liability (CGL) policies apply to product liability cases, actions for wrongful termination of employees, sexual harassment cases, damages caused by business advertising or employee dishonesty, and trademark infringement suits. A country can borrow money from other International Monetary […]

Herman hires Juanita as his accountant. Juanita commits negligence in preparing financial statements for a business Herman owns. Several investors rely on the financial statements and purchase shares of stock in the business. In a state that has adopted the […]

Treaties made by the United States are not deemed part of the law. When a contract falls within the statute of frauds, the signatures of both parties must be shown to the court. Answer: F Testate distribution describes the distribution […]

In a sale on approval, the buyer’s approval must be demonstrated by express words. An absolute guaranty creates the same obligation as a suretyship. Answer: T A properly mailed acceptance takes effect when mailed, even if it never is received […]

Funds from the Superfund are used to pay the cost of eliminating or containing condemned waste sites. Generally, the prevailing party in a lawsuit will be awarded the costs of the action, including witness fees and jury fees. Answer: T […]

A failure by the settlor to name a trustee renders a trust invalid. A seller cannot be held liable for the breach of an express warranty if the seller honestly believed that the warranted statement was true. Answer: F Nonprofit […]

Ethics is a philosophical concept that deals with values related to the nature of human conduct. The tort of invasion of privacy always requires the misappropriation of another’s name or likeness. Answer: F As Courts now tend to accept an […]

The seller of a painting is not bound by the sales contract if the painting purchased was considered of little value and only later discovered to be valuable to the surprise of both buyer and seller. The Bill of Rights […]

The United States utilizes a tripartite division of government. Kant’s theory understood that sometimes you have to use someone to achieve a one-sided benefit. Answer: F The rights of a transferee of a negotiable bill of lading are defeated if […]

Fire insurance is a personal contract, and in the absence of statutory or contractual authorization, it can be assigned without the consent of the insurer. The Litigation Reform Act of 1995 provides for joint and several liability for defendants who […]

The UCC does not specify the form that the assurance of performance is to take. Unclaimed property is often transferred to the government under the concept of escheat. Answer: T Upon the debtor’s default, the creditor may sell the collateral […]

Creditors receive an automatic 30-day temporary perfection in negotiable instruments taken as collateral. If questions of fact are involved, the court will decide the case based on the pleadings alone. Answer: F Licensees are on the premises with the permission […]

Limited liability companies may be formed without filing formal articles of organization with the secretary of state. Automobile lemon laws protect only persons buying automobiles for personal, family, or household use. Answer: T An express warranty can be disclaimed even […]

A consumer who notifies the issuer of an EFT card within two (2) days after learning of a loss or theft of the card can be held to a maximum liability of $500 for unauthorized use of the card; failure […]

White-collar crimes generally involve violence. One of the concerns reflected in Sarbanes-Oxley was that auditors were not exercising sufficient discretion and independence in conducting audits of their clients. Answer: T No writing is required for a service contract that can […]

A check may be certified by a bank on request of the drawer or the holder. All shares must have a par value of at least one dollar per share. Answer: F The living Constitution has as a characteristic a […]

Manufacturers who prepare goods to the buyer’s specifications are under exceptionally stringent warranty obligations for fitness for a particular use. Pamela was the agent in charge of distribution and collections for the Coble Dairy Products Cooperative. Thrower operated a grocery […]

When an international sale is made, the parties often set forth in their contract which country’s law will govern a dispute. Fees charged by a lender for the reasonable expense of making a loan, such as the cost of appraising […]

Consumer protection laws, which commonly regulate the form of consumer contracts, provide that back-page disclaimers are void if the front page of a contract does not call attention to the presence of the terms on the back page. Drawers are […]

You plan to enter the export market with a new product that you have just developed. You feel that the product has great promise, but you are confused over whether you are required to obtain an export license. Further, your […]

An implied warranty arises automatically from the fact a sale has been made. Under a CF contract, the seller must get the goods to a carrier and buy an insurance policy in the buyer’s name to cover the goods while […]

The property that is subject to the security interest is called collateral. Title VII requires that employers make reasonable efforts to accommodate their employees’ religious beliefs. Answer: T The primary party on a note or certificate of deposit is the […]

Corporations are entitled to Fifth Amendment protection. Cyril made two contracts. The first was to have his house painted one month from the date of the written contract. The second was for his neighbor’s 1957 Ford Thunderbird. Each contract was […]

Title VII does not protect members of all nationalities from employment discrimination. If a leased building is destroyed, the lease is not terminated, and the landlord has a duty to restore the building to its former condition. Answer: F An […]

When the principal ratifies the act of the unauthorized person, such ratification does not release the unauthorized person from liability, since he or she acted without authority. The term dumping refers to the sale of damaged goods in a foreign […]

The measure of monetary damages when there has been a breach of contract is the sum of money that will place the injured party in the same position that would have been attained if the contract had been performed. Placing […]

If an agent commits a crime, the agent’s liability will depend on the agency relationship. If a restrictive covenant is valid, it binds only the original grantee in the deed that created the covenant. Answer: F Under the Berne Convention […]

A prospectus sets forth the key information contained in the registration statement. If an instrument bears a restrictive indorsement, any further transfer or negotiation is effectively barred. Answer: F The authority of corporate employees and other officers is generally limited […]

If an employment contract provides that an employee can be fired only for “good cause” or “just cause,” a lesser standard for discharge such as the employment-at-will doctrine will not be allowed by a court. The law works to cause […]

NAFTA seeks to eliminate tariffs among which countries? a. all members of the United Nations b. United States, Canada, and Mexico c. United States and Japan d. members of the common market The Pregnancy Discrimination Act does not: a. require […]

Which of the following categories of individuals are exempt from the minimum wage provisions of Fair Labor Standards Act (FLSA)? a. executives b. factory workers c. full-time babysitters d. housekeepers The standard for commercial impracticability is: a. hypothetical. b. conjectural. […]

Under the __________approach, consideration is defined as a benefit received by the promisor or a detriment incurred by the promisee. a. pro-con b. I win, you lose c. gain-loss d. benefit-detriment Which of the following acts was passed to ensure […]

When goods are shipped COD: a. the buyer always has the right to examine them before making payment. b. the underlying contract must specify when the buyer may inspect the goods. c. the buyer has no right to examine the […]

The concept of equal protection of the law: a. applies to both state and federal governments. b. prohibits any classifications whatsoever. c. applies only to conduct by private parties. d. does not permit reasonable classifications. A Federal Trade Commission regulation […]

Which of the following can satisfy the statute of frauds writing requirement? a. bills of sale b. Letters c. Telegrams d. all of the above A(n) ______________ principal is liable for a simple contract made by an authorized agent. a. […]

A bond: a. that is unsecured is called a debenture bond. b. is a negotiable security c. generally has a life of five years or longer. d. all of the above. If an agency causes a substantial loss to a […]

A major disadvantage of the sole proprietorship is: a. no organizational fees. b. the sole proprietor obtains all of the profits. c. the sole proprietor is personally liable for the debts of the sole proprietorship. d. the sole proprietor is […]

Before an agency can begin rulemaking proceedings it must be given jurisdiction: a. by congressional enactment in the form of a statute. b. granted by an executive order of the President of the United States. c. from the United States […]

The “living” Constitution has which of the following characteristics? a. strong federal government b. strong president c. various administrative agencies with significant power d. all of the above In the case of an illegal contract, both parties usually are prohibited […]

Individual rights guaranteed in the United States Constitution: a. have no accompanying duties. b. apply only to a small number of individuals. c. are subject to state legislative laws. d. generally have accompanying duties. A stockholder-approved amendment to the certificate […]

Which of the following situations reflects a possible conflict of interest? a. You offer a company contract to a friend without checking competing bids. b. You hire a relative for a company position although another candidate is more qualified. c. […]

When supervisors seek sexual favors in return for job benefits, the practice is called: a. tangible employment action sexual harassment. b. hostile work environment sexual harassment. c. res ipsa loquitur sexual harassment. d. none of the above. A corporation or […]

The Lanham Act grants protection for: a. marks. b. patents. c. copyrights. d. trade secrets. A counteroffer is a(n): a. acceptance of the original offer. b. rejection of the original offer. c. acceptance of the original offer and an invitation […]

In the case of a nonshipment contract, risk of loss passes to the buyer upon actual receipt of goods: a. only if the seller is a merchant b. only if the seller is a nonmerchant c. only if the buyer […]

The Alexo Corporation has been charged in a United States court with violation of American antitrust laws in its foreign dealings. The firm has raised the defense that its actions were compelled by the government of its host country. Alexo […]

A holder in due course must meet all of the following conditions except: a. giving value for the instrument. b. taking the instrument when it is overdue. c. acting in good faith. d. being ignorant of defenses and adverse claims. […]