Archives: Quiz

A service mark is used to distinguish the services of the holder from those of its competitors. Obscene speech is protected by the First Amendment to the United States Constitution. Answer: FALSE Voting agreements among shareholders of a corporation are […]

Burglary is defined as “the breaking and entering of a dwelling at night” and cannot occur during the daytime or at a commercial building. Under the UCC, a negotiable instrument may provide that it is payable in foreign money. Answer: […]

Stock dividends are a distribution of corporate assets. To be liable for consequential damages, the breaching party must know or have reason to know that the breach will cause special damages to the other party. Answer: TRUE The Uniform Computer […]

For necessary charges and expenses, a carrier has a lien on goods in its possession covered by a bill of lading. Generally, a price term can be implied if there is a market or source from which to determine the […]

If you rent property for an uninterrupted statutory period of time, you become the owner of the property by adverse possession. In Chapter 11 bankruptcy, the court will appoint a special union trustee to represent union members and preserve union […]

The crime of involuntary manslaughter is an intent crime. The lawfulness of government classifications that do not involve suspect or protected classes is examined using an intermediate scrutiny test. Answer: FALSE Adhering to a company’s code of ethics is a […]

Utilitarianism has been applauded because it is easy to estimate the “good” that will result from different actions. To prove fraud, the following elements must be shown: 1) The wrongdoer made a false representation of a material fact; 2) The […]

Acceptance of goods occurs if the seller sends non-conforming goods and the buyer accepts them. Under the Lilly Ledbetter Fair Pay Act of 2009, if the EEOC chooses not to bring suit against the employer on the complainant’s behalf, it […]

The WTO is an international organization whose headquarters is located in Geneva, Switzerland. The Critical Legal Studies School postulates that most rape laws make it difficult for women to prove legally that they have been raped because they have mostly […]

Under the North American Free Trade Agreement, a country can re-impose tariffs if an import surge from one of the other nations hurts its economy or workers. Under the ULLCA, the articles of organization of a limited liability company need […]

The purchaser’s remedy for violation of Section 12 of the Securities Act of 1933 is either to rescind the purchase or to sue for damages. Workers can sue their employers in court to recover damages for employment-related injuries if the […]

When used to enforce the collection of a judgment, a writ of garnishment is used to access property that is in the hands of someone other than the judgment debtor. When a business has only one owner, and that owner […]

Forming a sole proprietorship is easy and does not cost a lot of money. Special shareholders’ meetings may be called by the board of directors, the holders of at least ten (10.) percent of the voting shares of the corporation, […]

A transferor who transfers his or her distributional interest in a limited liability company is not released from liability for the debts, obligations, and liabilities of the LLC. The Food, Drug, and Cosmetic Act gives the Federal Trade Commission the […]

Under the ULLCA, the articles of organization of a limited liability company need not set forth the name and address of each organizer. A court may resort to the application of equitable principles when an award of money damages “at […]

When a partner dies, that partner’s share of the partnership assets may be left to his or her heirs or next of kin. Federal courts have limited jurisdiction to hear cases involving a federal question or diversity of citizenship. Answer: […]

If only one item is defective out of thousands of similar items that were manufactured without defects, this one defective product could not be the basis for a product liability lawsuit. Only the drawer can order a stop-payment order. Answer: […]

Small business bankruptcies apply to companies with assets of less than $5 million. Fred and Barney enter into a sales contract for $400. Subsequently, they modify the contract and the modification adds $400 more to the contract. Neither the original […]

The UCC statute of limitations provides that an action for breach of any written or oral sales or lease contract must commence within three (3.) years after the cause of action accrues. A contract is unilateral if the offeror’s promise […]

The Robinson-Patman Act is a federal statute, enacted in 1930, that prohibits price discrimination. A limited liability company can choose whether to be taxed as a partnership or as corporation. Answer: TRUE If sufficient credible witnesses are brought forth, an […]

If a court finds that a contract or contract clause is unconscionable, it may refuse to enforce the entire contract. The Fourteenth Amendment contains Equal Protection, Due Process, and Privileges and Immunities Clauses. Answer: TRUE In a bailment, the owner […]

Where there is an anticipatory repudiation, the non-breaching party’s obligations under the contract are discharged immediately. Since the World Trade Organization’s international trade rules are capitalist in nature, socialist countries are not eligible to join the organization. Answer: FALSE[/cpmembership] All […]

Once the buyer has accepted goods, whether the goods are conforming or nonconforming, that acceptance may not be revoked. All negotiable instruments must be payable to order or to bearer. Answer: TRUE The Uniform Commercial Code is a source of […]

If a contractual duty has not been discharged or excused, the contracting party owes a conditional obligation to perform the duty. An affirmative action program that gives racial minorities a “plus factor” when considered for public university admission is lawful […]

The concept of negotiation is unimportant to the law of negotiable instruments. Compensatory damages are intended to compensate a non-breaching party for the loss of the bargain. Answer: TRUE No state recognizes marriage between persons of the same sex. Answer: […]

State usury laws set a lower limit on the annual interest rate that can be charged on certain types of loans. Since a court reporter is necessary to transcribe deposition testimony, most depositions are taken in court. Answer: FALSE A […]

The Interstate Commerce Commission (ICC) is empowered to enforce the FTC Act, as well as other federal consumer protection statutes. A warranty deed will protect a grantee regarding a mortgage from one hundred years ago. Answer: TRUE Under modern law, […]

Merely being regarded as disabled is sufficient to invoke the protections of the Americans with Disabilities Act. Mala prohibita crimes are more serious than mala in se crimes. Answer: FALSE[/cpmembership] A “holographic” will is an oral will, usually made during […]

Horizontal price fixing occurs when a manufacturer sets the retail price of the items they produce. To obtain appraisal rights, a dissenting shareholder must deliver written notice of his or her intent to demand payment of his or her shares […]

The term “GAASs” stands for “generally accepted accounting standards.” According to Kantian ethics, if you rationalized that it is acceptable for you to engage in deceptive practices, it is acceptable for competitors to do so also. Answer: TRUE The Fair […]

A life estate gives the owner more rights than a fee simple. Under Section 552 of the Restatement (Second) of Torts, an accountant is liable for his or her negligence to any member of a limited class of intended users […]

Courts have implied a private right of action for violation of Section 10(b) and Rule 10b-5. The courts presume acceptance of a gift unless there is proof that the gift was refused. Answer: TRUE Non-issuers of securities do not have […]

Under the Federal Trade Commission “franchise rule,” a franchisor may make sales projections for a potential franchisee based on sales of an existing franchise, but not on sales of a hypothetical franchise. A cooperative is a form of co-ownership of […]

The Securities and Exchange Commission permits a company to obtain an audit from either an independent certified public accountant or a certified public accountant who works for the company. The directors and officers of a corporation must act within the […]

Criminal cases begin with a complaint and summons served on the defendant. The parol evidence rule allows a party to present outside evidence to support their interpretation of a contract. Answer: FALSE A freehold estate is an estate in which […]

Even non-employees can violate insider trading rules. A contract that has not been performed by both sides is called an executed contract. Answer: FALSE Shareholders may agree among themselves as to restrictions on the transfer of shares. Answer: TRUE The […]

The Organization of the Petroleum Exporting Countries consists exclusively of countries from the Middle East. Anti-deficiency statutes usually apply only to non-purchase money mortgages. Answer: FALSE Almost all states have enacted innkeepers’ statutes that limit the liability of innkeepers. Answer: […]

Prior to the 1920s, the banking system in the United States was subject to strict regulation by the federal government. All group boycotts are per se illegal. Answer: FALSE If a covered member or manager of a limited liability company […]

After the plaintiff’s attorney has completed his or her questions, the defendant’s attorney can question the witness. This is called direct examination. Providing government subsidies to farmers, but not to those in other occupations, is a violation of the ‘strict […]

A “product disparagement” claim may be brought for an untrue statement regarding a product of a business. In terms of the requirements for becoming a holder in due course, notice of a defect is given when the holder has actual […]

Buyers in the ordinary course of business who purchases goods from a merchant take the goods free from any perfected or unperfected security interest in the merchant’s inventory, even if the buyer knows of the existence of the security interest. […]

Members of the European Union have delegated substantial powers to the European Union Commission, including the authority to enact legislation and to take enforcement actions to ensure member compliance with the European Union treaty. In a “chain-link” franchise, the franchisor […]

Because a life estate lasts only as long as someone’s life, it cannot be sold to another. From the 1940s through the 1970s, antitrust enforcement was quite stringent. Answer: TRUE The board of directors has the authority to appoint the […]

Quasi-contracts and implied-in-law contracts are interchangeable terms. A principal can ratify an agent’s act before the agent’s act occurs. Answer: FALSE Under common law, parties to a contract can decide who will bear the risk of loss. Answer: FALSE Distribution […]

If a professional athlete dies prior to or during a contract period, his or her contract with the team is discharged. After becoming sober, an intoxicated person can ratify a contract he or she entered into while intoxicated. Answer: TRUE […]

The U.S. Congress enacted the Federal Arbitration Act to promote the arbitration of disputes. A shareholder loses the ability to exercise the appraisal right by voting in favor of the proposed action. Answer: TRUE Both the buyer and seller of […]

Delaware’s legislature has provided a potent antitakeover statute in its corporation code. The violation of a statute that proximately causes an injury is negligence by proxy. Answer: FALSE[/cpmembership] Information given by the attorneys in their closing statements is evidence the […]

Unless the partnership agreement authorizes it, partners are not entitled to receive a salary for service rendered on behalf of the partnership. One of the two major functions of the U.S. Constitution is to limit the government’s ability to interfere […]

The Dodd-Frank Wall Street Reform and Consumer Protection Act reorganizes federal government supervision of the banking system, regulates previously unregulated financial products and institutions, and adds a new consumer protection agency to protect consumers from abusive lending and banking practices. […]

The National Strike Board prevents employers and unions from engaging in illegal and unfair labor practices. John Locke and Jean-Jacques Rousseau proposed a ‘social contract” theory of morality. Answer: TRUE Legal scholars following the Historical School of jurisprudence look to […]