Archives: Quiz

A banking day is any day that the particular bank is open to the public for carrying on substantially all banking functions. An advertisement is considered an offer if it is so definite or specific that it is apparent that […]

A non-merchant seller passes the risk of loss to the buyer when the goods are received. The First Amendment to the United States Constitution contains two (2.) separate religion clauses: 1. the Enlightenment Clause; and 2. the Free Exercise Clause. […]

Promises to make a gift are not enforceable contracts because a valid agreement is not present. If a contract requires the occurrence or nonoccurrence of an event before a party is obligated to perform a contractual duty, this is a […]

The doctrine of caveat emptor means “to the victor go the spoils.” An employee whose employer breaches an employment contract can recover lost wages or salary as compensatory damages. Answer: TRUE The person giving a deposition is called the proponent. […]

A letter of credit guarantees to the seller, that the bank will pay for the goods if the buyer fails to do so. The electric and cable companies have an easement in gross allowing them to enter property to install […]

Strategic alliances are often used by companies to enter a foreign market. Some states permit a mortgagee to bring a separate legal action to recover a deficiency from the mortgagor. If the mortgagee is successful, the court will award an […]

Hotels are not required to provide guests with a safe. Under the common law, the risk of loss is always on the seller. Answer: FALSE In a limited liability partnership, there is no tax paid at the partnership level, and […]

All express contracts must be in writing to be valid. Because of the unfair results and the limited remedy available in the law courts, the Court of Chancery was established. Answer: TRUE A proxy always grants the holder of the […]

The Establishment Clause of the U.S. Constitution allows the federal government to establish which religions are entitled to protection. Tenancy by the entirety is a form of co-ownership of real property that can be used only by married couples. Answer: […]

Domain names may be registered by filing the appropriate form with the domain name registration service and paying the appropriate fee. Criminal prosecutions of violations of federal securities laws are brought by state attorneys general. Answer: FALSE Since nine (9.) […]

In rare occasions, an appellate court will overturn a jury verdict if the appellate court cannot, from the record of the trial court, find sufficient evidence to support the trier of fact’s findings. Under Title VII of the Civil Rights […]

Liquidated damages will be invalidated if they are unreasonably large or small. Once a partnership is dissolved, all liability for the actions of the partners ends. Answer: FALSE At the expiration of the term of a “term” limited liability company, […]

If the buyer pays by check, payment is conditional on the check being honored when it is presented to the bank for payment. English common law was law developed by judges issuing opinions when deciding cases. Answer: TRUE The “FTC […]

The legality of non-price vertical restraints of trade under Section 1 of the Sherman Act is examined using the “rule of reason.” A UCC sale occurs when possession of property is transferred from one party to another. Answer: FALSE A […]

Two kids mow your lawn by accident while you are at work. They had been called by a neighbor, but the mom who took the call wrote down the wrong address. If you refuse to pay, the kids would succeed […]

The United Nations is governed by the General Assembly, the Security Council, and the Secretariat. The mailbox rule provides that an acceptance sent through the mail is effective only when it reaches the offeror’s mailbox. Answer: FALSE Under the corporate […]

The rights of freedom of speech, religion, and association, granted by the First Amendment to the United States Constitution, is an example of the “maximizing individual freedom” function of the law. When a seller tenders goods, some of which are […]

Because ignorance of the law is not an excuse, a court will never order a remedy in favor of a party who was unaware that a contract was illegal. A franchise arrangement is typically used in a situation where there […]

One criticism of the World Trade Organization is that it does not have an appellate process for its decisions. Because they are not shareholders or employees, students at a college or university would not be considered stakeholders in the school […]

Which of the following is true of a contract with an adjudged insane person? A) The adjudged insane person is bound by the terms of the contract. B) Such a contract is void. C) Only the competent party can enforce […]

________ set an upper limit on the interest rate that can be charged on certain types of loans. A) Federal banking reforms B) State usury laws C) Congressional committees D) Chambers of commerce Which of the following is true of […]

The ________ is a federal statute that authorizes the EPA to establish national primary potable water standards. A) Comprehensive Environmental Response, Compensation, and Liability Act B) Federal Water Pollution Control Act C) Clean Water Act D) Safe Drinking Water Act […]

Which of the following is true of subsurface rights in real property? A) Subsurface rights cannot be used to mine radioactive elements. B) Subsurface rights can be sold separately from surface rights. C) Minerals found beneath real property have to […]

An order of the court that declares that a marriage did not exist is known as a(n) ________. A) divorce B) arraignment C) abatement D) annulment Which of the following is a corporation’s defense against a hostile takeover? A) proxy […]

A ________ patent may be obtained for the ornamental nonfunctional design of an item. A) design B) process C) method D) utility If a limited liability partnership fails, ________. A) the general partner alone is liable for all the debts […]

Peter, Preston, and Penny organize an LLC in the month of January. While composing the operating agreement, they forget to include the amendment clause. Six months later, the situation demands an amendment to the operating agreement. Which of the following […]

The bank where the payee or holder has an account is called the ________. A) payer B) depository C) promissory D) intermediary If a contract specifies “F.A.S. The Oceanking, New Orleans,” the seller bears the risk of loss until it […]

Ronald is an independent accountant. He is hired by Procious, Inc. to audit its financial statements. He fails to uncover that Procious, Inc. has been involved in embezzlement. A corporation makes a tender offer for the shares of Procious, Inc. […]

Miranda Airways, a commercial air carrier, has a contract with Wurtherton, Inc., an airplane manufacturer, to purchase a new plane. Due to a sudden shortage of cash, Miranda Airways goes to MetrosBank. MetrosBank issues a document to Wurtherton that if […]

The ________ branch of the federal government has the power to enact laws. A) legislative B) judiciary C) consulate D) executive Securities coming under the small offering exemptions ________. A) cannot be advertised to the public B) can only be […]

Which of the following is true of the Law and Economics School of jurisprudence? A) It believes that law is based on morality and ethics. B) It proposes that legal disputes should be solved by arbitrary rules that are based […]

A power of attorney where a principal confers powers on an agent to act in specified matters on the principal’s behalf is referred to as ________. A) implied power of attorney B) general power of attorney C) limited power of […]

If the movement of goods is not required, and the seller is a nonmerchant, the risk of loss ________. A) passes to the buyer upon “tender of delivery” of the goods B) remains with the seller after acceptance C) is […]

The plaintiff in a product liability lawsuit has suffered $100 worth of damages from an automobile accident. A defect in the manufacture of the plaintiff’s vehicle is found to be 70 percent responsible for the accident, while the plaintiff’s own […]

Which of the following is true of an assignment of a right? A) The unconditional assignment of a contract right retains all the assignor’s rights. B) The obligor is entitled to performance from the assignor. C) The assignor loses the […]

Which of the following statements is true of the Labor Management Reporting and Disclosure Act of 1959? A) The act establishes the right of employees to form and join labor organizations. B) The act establishes the right of employees to […]

An organization or venture must have a ________ motive in order to qualify as a partnership. A) large-scale expansion B) non-commercial C) profit D) target market Individuals and businesses use the Internet for communication of information and data. Answer: TRUE […]

________ is a subjective test that applies to contracts involving individual taste and comfort. A) Reasonable person test B) Personal satisfaction test C) Express condition test D) Cognitive inventory test Kelly borrows $12,000 from Terry Oswald to pay for her […]

Stephen, the chief of operations of an insurance company, accepts bribes in exchange of expediting paperwork regarding applications for certain insurance policies. In terms of the duty of loyalty, Stephen’s behavior is an example of ________. A) competing with the […]

A manager of a manager-managed LLC is appointed by ________. A) the secretary of state B) a vote of a majority of the members C) a unanimous vote of the members D) a unanimous vote of the shareholders ________ is […]

A ________ is an interest in real property that lasts for a specified person’s lifetime. A) life estate B) fee simple absolute C) life insurance D) fee simple defeasible In a shipment contract, when is the title to the goods […]

Which of the following would be considered as goods? A) company shares B) crops C) trade secrets D) money A(n) ________ is necessary for a bearer paper to be negotiable. A) acceleration clause B) indorsement C) delivery D) specific payee […]

A(n) ________ refers to an actual piece of paper, such as a warehouse receipt or bill of lading, which is required in some transactions of pickup and delivery of sold goods. A) codicil B) letter of credit C) document of […]

If a franchisor makes sales or earnings projections based on hypothetical examples, the franchisor must ________. A) display a cautionary statement that warns against misuse of the franchisor’s intellectual properties B) disclose the assumptions underlying the estimates C) register the […]

A ________ is a grant by the federal government upon the inventor of an invention for the exclusive right to use, sell, or license the invention for a limited amount of time. A) geographical indication B) patent C) copyright D) […]

Greenmart Retailers contracts Wilson’s Foodstuff to purchase biscuit packets in bulk. Greenmart Retailers fulfills its side of the contract by making a complete payment to Wilson’s Foodstuff before the delivery. A week after the payment, Wilson’s Foodstuff becomes insolvent. Which […]

In a contract between a minor and an adult, the duty of restoration lies with the ________. A) adult B) minor C) competent party D) judiciary A(n) ________ is a judgment of a court that permits a secured lender to […]

A(n) ________ is an agreement entered into by the creditor and the debtor whereby the debtor agrees to pay the creditor for a debt that is dischargeable in bankruptcy. A) reaffirmation agreement B) order for relief C) discharge agreement D) […]

How are the justices of the U.S. Supreme Court appointed? A) They are nominated by the President and confirmed by the Senate. B) They are directly appointed by the President of the United States. C) They are nominated and confirmed […]

Upon the termination of a marriage, the separate property owned by spouses is ________. A) equally divided between the spouses B) retained by the respective spouses who owned it C) shared using a fair distribution method for marital assets D) […]