Archives: Quiz

Solomon breaches his contract with Neal to purchase the 500 pairs of socks he had promised to buy. Neal is able to sell the 500 pairs to Renny for a much lower amount. Neal then sues Solomon for damages. Neal […]

Which school of jurisprudence is based on the philosophy that what matters is not what is written as law, but who enforces the law and by what process? a. Legal positivism. b. Natural law. c. Legal realism. d. Sovereign selection. […]

Jamie is building a house on her lot. She invites Earnie of Earnie’s Excavation to bid on the excavation job. Earnie observes that the lot next to Jamie’s is also under excavation and the soil in that lot is normal […]

Which of the following is an example of incidental damages you might be awarded if you are wrongfully terminated from your job? a. The costs of psychological counseling. b. The costs of mailing resumes to prospective employers. c. The costs […]

Notren, Inc., a U.S. company, and SWT, a Singapore company, entered into a contract under which SWT is to ship party supplies to Notren. One of the terms of the contract states, “Any disputes that arise under this contract will […]

The United States has ____ percent of the worlds population and consumes about ____ percent of the worlds energy. a. 20; 65 b. 25; 10 c. 10; 50 d. 5; 25 Which of the following is correct? a. A copyright […]

Shortly after Brian started to work at Trevit, Inc., a co-worker, Ann, began asking him out. Brian said no. Nevertheless, Ann persisted. One day Ann playfully, but intentionally touched Brian “below the belt. Which statement is correct? a. Ann defamed […]

Victoria registered a trademark under the Lanham Act. Six years later Don noticed Victoria’s trademark and filed a lawsuit to enjoin her from using it. He proved he had registered the mark in several states more than ten years before […]

MegaCorp is incorporated under Delaware law. It is registered to do business in New York. Legally, in New York MegaCorp is known as what kind of corporation? a. Domestic. b. Foreign. c. Alien. d. Cumulative. What is the purpose of […]

David has worked as a CPA for Accountants R Us for about eight months. When his wife had a baby, he requested to take some time off. He believes he is allowed to do so pursuant to the Family and […]

A bailment is different from a gift because: a. a gift requires consideration, but a bailment does not. b. a gift requires delivery, but a bailment does not. c. in a bailment, only possession of the property is transferred to […]

The form of business ownership that is the most easily transferable is the: a. general partnership. b. corporation. c. limited liability company. d. limited partnership. A Japanese company operates a ship called the Kinia. If the Kinia sails in U.S. […]

The Solomans own a cabin on the south side of Mount Henry. One day, the Solomans told Bennie and Claudia they could live in the cabin and use it as they wished until the Solomans wanted to use it again. […]

Hensley and Boyer have been negotiating for several months over issues related to the purchase and sale of some real estate. They draft a letter of intent which: a. protects both parties by ensuring the other side is serious and […]

Shelly offers to sell Jane goods both parties know are stolen. Jane accepts the offer, and agrees to pay for the goods. Later, Jane refuses to accept or pay for the goods. If Shelly sues Jane for breach of contract, […]

The Kelsoe v. International Wood Products, Inc. case was an example of: a. promissory estoppel. b. partial performance. c. illusory promises. d. lack of consideration. Which of the following is generally covered under casualty insurance? a. Employee theft or embezzlement. […]

Oxtron, Inc. is considering establishing a program that actively encourages ethical behavior. What reasons would support Oxtron’s adoption of an ethics program? Lance sued Mega Corp. for negligence, and a jury awarded him $1.2 million. Mega Corp. filed a motion […]

Which of the following is/are generally subject to a standard of strict liability for bailed goods? a. contract carriers and common carriers b. common carriers and innkeepers c. common carriers d. contract carriers TriColor, Inc. is doing business in Minnesota, […]

Pat’s Pen Co. manufacturers and sells an inexpensive ball-point pen. Salley’s Stationery purchases the pens for $.25 each in quantities of 1,000. Salley’s discovered that a national chain, a competitor of Salley’s, buys the pen at $.20 for 1,000. If […]

Mike is planning on incorporating his business in the state of Delaware. Which of the following regarding the name of Mike’s business is TRUE? a. He will be able to use the words “Association” or “Institute” in his company name. […]

The Environmental Protection Agency was investigating whether Exgrow, Inc. violated the Clean Air Act. Exgrow refused to give the EPA its computerized reports concerning pollution. To get the reports, EPA should use a. a stare decisis. b. a de novo. […]

Which of the following statements is correct regarding the differences between contract, tort, and criminal law? a. Tort and criminal law both impose a punishment for the defendant including prison and/or a fine. b. Criminal law imposes duties of conduct […]

RayCorp offers to buy out MegaCorp by paying $69 per share. LandCo, who also wants to buy MegaCorp, offers to pay $75 per share. When the bidding process is finally over, RayCorp has offered $85 per share and LandCo has […]

If the court awards a partition to co-tenants, the court will normally attempt a partition by kind. If partition by kind is impossible because there is no fair way to divide the property, the court will order the real estate […]

The EEOC is the federal agency responsible for enforcing Title VII. a. True b. False Bagsby owns a business selling insects for organic gardening. Bagsby is seeking a loan from First Natural Bank. The loan officer is asking that the […]

Creditors of Northern Hydraulics file an involuntary bankruptcy petition against the company and the petition is approved. What is true of Northern Hydraulics? a. Northern Hydraulics has at least $10,425 in debts. b. There are at least 12 creditors. c. […]

Ambiguities in contracts are always interpreted in favor of the side that wrote the contract, since they are the ones who know what the provision is supposed to mean. a. True b. False Which of the following are remedies available […]

Veritas, Inc. is planning its annual shareholder meeting on June 15. The company a. need not send notices of the meeting to shareholders since it is the regularly scheduled, annual meeting, which Veritas always holds on the third Thursday of […]

In order to constitute as a gift, a. the donor must intend to transfer ownership of property within his or her lifetime. b. the donee need not actually accept the gift. c. the donor must deliver the gift property to […]

The Model Business Corporation Act states: “All corporate powers shall be exercised by or under the authority of, and the business and affairs of the corporation managed by or under the direction of its a. shareholders. b. officers. c. board […]

MegaCorp is incorporated under Delaware law. It is registered to do business in New York. Legally, in New York MegaCorp is known as what kind of corporation? a. Domestic b. Foreign c. Secondary d. Cumulative Generally, a joint venture is […]

Which of the following guarantees that a witness testifying in a court or legislature may never be sued for defamation? a. recovery principle b. protected right to slander c. defamation privilege d. absolute privilege In which of the following situations […]

Under the Americans with Disabilities Act, a person with a disabling illness a. is not considered disabled once the illness is being managed with medicines. b. is not considered disabled unless there is no known cure. c. is considered disabled, […]

Under the Endangered Species Act, what federal agency in the Department of the Interior is responsible for preparing a list of species that are in danger of becoming extinct? a. National Park Service b. Fish and Wildlife Service c. Bureau […]

Res ipsa loquitur shifts the burden of proof from the plaintiff to the defendant. a. True b. False One of the accountant’s most important roles is to serve as an independent evaluator of the financial statements issued by management to […]

The statement, “You will have a job with Snelling & Snelling as long as you complete your degree in business administration this May does not create a condition because it does not include the phrase “provided that. a. True b. […]

When measured in dollars, street crime costs society more than twice as much as white-collar crime. a. True b. False Charlene Brown has possession of a check made out to the order of Charlene Brown (herself) which she received in […]

Bry, Inc. and Gangl Co. entered into an oral agreement for the sale of 3,000 sweaters. Both parties performed as required under the contract. Bry delivered the sweaters and Gangl accepted and paid for them. Since the contract is fully […]

Which of the following statements regarding a negligence case is correct? a. A plaintiff must show that the defendant’s act was both the factual cause of her injury as well as a foreseeable injury. b. A plaintiff must show that […]

Research indicates that consumers are willing to pay more for a product that they believe to be ethically produced. a. True b. False What is the key to all conditional clauses? a. If a condition in a contract does not […]

Shoe Sunshine, Inc. filed for bankruptcy protection under Chapter 11 and submitted a plan of reorganization within 120 days after filing for relief. Two of the classes of creditors voted against the plan. However, the bankruptcy judge considered the plan […]

Future interests in land a. are presently existing nonpossessory rights that may or may not develop later. b. are possessory interests because they permit the holder to take possession at some point. c. must create a right to, not merely […]

Erica’s supervisor told her to arrange for a conference room at the Kelly Inn. Erica has express authority to contract for the room. a. True b. False An assignment is valid from the moment it is made, regardless of whether […]

Adam moved into an apartment complex. The rules of the complex prohibit unmarried men and women from living together in the same apartment. When Adam’s friend, Diane, moved into the apartment he was served with eviction papers. Adam claims the […]

Ethics is the study of how people should act. a. True b. False Reva prepares and signs a document that she intends to be her will. If she has not followed the legal technicalities of her state regarding executing a […]

Which of the following opinions indicates that the company’s financial statements fairly present its financial condition according to GAAP? a. Qualified opinion b. Adverse opinion c. Disclaimer of opinion d. Unqualified opinion Commercial paper is a contract to pay money. […]

Dean Builders agrees to purchase all of its sump pump requirements for the new houses it builds from Satisfactory Sump Pump, Inc. These two business have had similar agreements the last three years and Dean’s requirements have averaged 100 sump […]

When a debtor no longer has an obligation to pay a debt, that debt has been a. terminated. b. revoked. c. completed. d. discharged. The Electronic Communications Privacy Act of 1986 is a federal statute that regulates email. a. True […]

Zach decided to incorporate his business under the name of “Zamm.” In addition to “Zamm,” the Model Act requires that Zach include one of the following words: “corporation,” “incorporated,” “limited,” or “company” or an abbreviation thereof. a. True b. False […]

Drawers and indorsers are secondarily liable on negotiable instruments. a. True b. False Mid-American Oil had a contract with NSB Company to supply 1,000 gallons of oil by September 1. The contract contained a provision which required all modifications to […]