Archives: Quiz

Kelly and Lucas sign a written contract for the sale of Kelly’s Koffee Kiosk to Lucas. The parties intend their written contract to be a final statement of the terms of their agreement. The writing that Kelly and Lucas signed […]

Inferior Company, which is based on South Carolina, makes and sells products that are poorly made. Jack, who is a resident of North Carolina, buys an Inferior product and suffers an injury through its use. The diversity of citizenship between […]

The Constitution sets out the authority and the limits of the branches of the government. The term checks and balances means that a. Congress writes checks and the other branches balance the budget. b. each branch has some power to […]

If a business chooses to dump toxic waste into a city’s storm drains, it is an example of _____. A.crime of apartheid B.white collar crime C.blue collar crime D.piracy Price fixing is an antitrust violation under the _____. A.Dodd-Frank Act […]

The shape of a Coca-Cola bottle is protected with the help of a _____. A.copyright B.patent C.trademark D.license Which of the following requirements of a valid contract ensures that those who enter into agreements understand the nature and effect of […]

The _____ are delegated the day-to-day management of the corporation and are answerable to the board. A.stockholders B.shareholders C.board of directors D.officers Which of the following acts represents the federal government’s first involvement in the sale of stocks and other […]

A _____ is pollution that comes from many sources, such as melting snow that picks up animal waste, leakage from vehicles, and pesticides. A.spot source B.nonpoint source C.point source D.line source With reference to specialized state level courts, which of […]

Which of the following theories of jurisprudence, according to some people, is not a good way to view law because it makes law too fluid? A.Aristocracy B.Legal Positivism C.Natural law D.Sociological theory Bid rigging occurs when: A.bidders agree ahead of […]

Which of the following is true regarding the Resource Conservation and Recovery Act (RCRA)? A.The RCRA exclusively deals with hazardous solid wastes. B.According to the Act, just because a property once contained a hazardous waste product does not mean that […]

Many states permit withdrawal by an attorney when the highest authority of the corporation insists on a criminal action that will substantially injure the corporation. This is called _____. A.reporting up B.external reporting C.reporting out D.proxy solicitation Which of the […]

Bank note is an example of _____. A.debt securities B.bills receivables C.forward rate agreements D.chattel papers If two or more firms engage in a conspiracy to fix prices, they have formed a(n) _____. A.oligopoly B.monopoly C.oligopsony D.cartel Answer: D. If […]

An organization that gives back to the community through employee volunteering or through charitable donations is said to be: A.upcycling. B.designing for the environment. C.superfunding. D.socially sustainable. The _____ is part of the executive Office of the President and it […]

Defamation is most likely to be an example of _____. A.violation of public law B.a tort C.violation of substantive law D.a felony Which of the following is an antitrust crime? A.Ponzi scheme B.Bribery C.Price discrimination D.Insider trading Answer: C. Antitrust […]

Conciliation is also known as _____. A.mediation B.arbitration C.negotiation D.mitigation _____ damages are damages over and above what is necessary to make the party whole. Punitive damages are intended to reflect society’s reaction to the harm inflicted by the defendant. […]

If, rather that have the interest after the life estate go to a third party, the grantor dictates that the interest is to return to the grantor, this is _____. A.life estate B.estate for years C.reversion D.remainder What is a […]

Which of the following statements is true regarding regulatory negotiation? A.It is generally carried out after the case has been filed with the court. B.It involves assembling ordinary citizens and then asking them to act like a jury. C.It is […]

The bill of rights, implemented under the Landrum-Griffin Act of 1959, states that: A.members do not have the right to vote on union business. B.union officers must be voted through public ballots. C.union elections must be held every three years. […]

According to the work-for-hire doctrine, an employer is entitled to any ownership of property created by an independent contractor. Arbitration involves the intervention of a disinterested third party into a dispute. Answer: TRUE Arbitration involves the intervention of a disinterested […]

Wildcat strikes are illegal and subject to unfair labor practice charges. The refrigerator purchased by a physician to store medicines in her office is classified as a consumer good. Answer: FALSE The refrigerator purchased by a physician to store medicines […]

If an agency is granted the authority to hear and decide agency disputes, the decisions of these agencies cannot be challenged in a federal court. The Securities Exchange Act of 1933 regulates secondary trades of securities between persons having no […]

A service mark differs from a trademark only in that it identifies services rather than goods. Embezzlement is a breach of trust done for private gain by an employee or agent of the corporation. Answer: TRUE Embezzlement is a breach […]

Ponzi and pyramid schemes are frauds included in the category of financial institution frauds. A case that represents hypothetical issues is said to be ripe for decision. Answer: FALSE Ripeness of a case is not related to whether it represents […]

Where the principal is fully disclosed, the agent is not a party to the contract. In the case of joint tenants with right of survivorship, a joint tenant can pass his or her interest by will to anyone other than […]

In the case of an agency relationship, an agent’s authority is terminated upon the loss of capacity of the agent by insanity. If an administrative agency issues a final order in an adjudication, the order will have full force and […]

In the context of insider trading, those who receive insider information from the issuer in connection with other duties such as accountants or lawyers are also considered insiders under Rule 10b-5. The work-for-hire doctrine states that an employer automatically owns […]

If there is no consideration between the parties, there is no valid and binding contract. Title VII prohibits discrimination on the basis of sexual orientation. Answer: FALSE Title VII does not prohibit discrimination on the basis of sexual orientation. In […]

The concept of law is narrowly defined, with the same definition applicable in all contexts. The Americans with Disabilities Act does not generally apply to residential housing facilities. Answer: TRUE A franchisee and franchisor are usually established as the same […]

The substantive due process category of due process requires that government action, ordinances, regulations, and other laws be clear on their face and not overly broad in scope. “ABC Company” is an acceptable name for a limited liability company. Answer: […]

ERISA provides for immediate vesting of each employee’s own contributions to a pension plan. In a guaranty arrangement, the guarantor is primarily liable on another person’s debt. Answer: FALSE Adhering to the Bible is a form of ethical fundamentalism. Answer: […]

It is possible for a seller to deliver goods without moving them. “Ademption” means that if a specific bequest is not owned by the testator at the testator’s death, then the named beneficiary receives nothing in connection with that bequest. […]

If corporate directors or officers steal a corporate opportunity for themselves, this is known as usurping a corporate opportunity. Facilitating planning is a function of the law. Answer: TRUE If goods are already in transit when a buyer fails to […]

Property is considered mislaid property when its owner involuntarily places the property somewhere and then intentionally forgets it. The right to participate in the management of a business is conclusive evidence for determining the existence of a general partnership. Answer: […]

Specific performance is the primary remedy used to make a party live up to his or her obligations under a personal services contract. The Articles of Confederation did not grant the federal government the right to levy and collect taxes. […]

Third-party beneficiaries usually exist from the inception of a contract. A treaty is an agreement or a contract between two (2.) or more nations that is formally signed by an authorized representative and ratified by the supreme power of each […]

The Sarbanes-Oxley Act makes it a crime for any person to knowingly alter, destroy, mutilate, conceal, or create any document to impair, impede, influence, or obstruct any federal investigation. A corporation cannot enter into or enforce contracts. Answer: FALSE Discharge […]

Enforcing judgments obtained against the debtor are ‘stayed” by the filing of a voluntary or involuntary bankruptcy petition. Which of the three major rules of liability that a third party may use to hold an accountant liable for negligence is […]

Under federal law, new pesticides that are hazardous may be prohibited from sale, but old pesticides that that have already been registered may not be prohibited from sale. Approximately fifty (50.) percent of divorce cases are settled between the parties […]

The proposed “Free Trade Area of the Americas” would amend the North America Free Trade Agreement so that the only participants are the United States and Mexico. In a Chapter 13 bankruptcy proceeding, the debtor’s plan of payment must be […]

Most of the major antitrust statutes provide for criminal penalties. Government-owned corporations are also known as “quasi-private” corporations. Answer: FALSE The drawer’s bank is also known as the payer bank. Answer: TRUE According to the modern interpretation of the Commerce […]

A limited liability company may elect to be taxed as a partnership, the owners can manage the business, and the owners have limited liability for debts and obligations of the partnership. Drafts can be negotiated from party to party; however, […]

With regard to an implied agency, implied authority can be conferred by either industry custom, prior dealing between the parties, the agent’s position and acts deemed necessary to carry out the agent’s duties, or other factors a court deems relevant. […]

Federal currency reporting laws require financial institutions to report the receipt in a single transaction or a series of related transactions of cash in an amount greater than $5,000. The infancy doctrine protects very young children from contracts entered into […]

To be sufficient under the Statute of Frauds, only original, handwritten signatures in ink are considered acceptable. Any state or local law that “directly and substantially” conflicts with valid federal law is preempted under the Supremacy Clause. Answer: TRUE If […]

Today, approximately forty percent of private-sector wage and salary workers belong to labor unions. A holder in due course takes negotiable instrument free form personal defenses but not real defenses. Answer: TRUE An obligor can assert any defense he or […]

For a warranty to qualify as a full warranty, the warrantor must guarantee free repair or replacement of the defective product. Following the stock market crash in 1939, Congress enacted a series of statutes designed to regulate securities markets. Answer: […]

An “umbrella” insurance policy pays when other losses from a covered occurrence exceed the limits of other insurance. The correction of a defect defense generally applies when a product is redesigned. Answer: FALSE Many disparate treatment discrimination cases are brought […]

Bankruptcy courts are part of the state court system. The primary purpose of the Statute of Frauds is to punish people who perpetrate frauds by using written contracts. Answer: FALSE Even if the right to cure has expired, the seller […]

The public has the right to review an environmental impact statement, although there is no formal process for the public to comment on it. The general standard to obtain an injunction is that the party seeking the injunction would suffer […]

In a product liability action, the plaintiff typically relies on the traditional tort theory of negligence or the modern tort doctrine of strict liability. A certificate of deposit is a special form of note. Answer: TRUE The trial process can […]

Article II, Section 4 of the United States Constitution provides “The Congress shall have Power…To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and […]