Archives: Quiz

A defendant who believes that he or she has a claim against the plaintiff would include a counterclaim with the answer. According to the UCC, value is consideration. Answer: TRUE According to the UCC, value is consideration. Asset purchases are […]

The UCC states that a customer can postdate a check and that the customer has no obligations to give the bank notice of the postdated check. Substitution of a party to a contract is called guaranteeing. Answer: FALSE Sometimes the […]

In most states, a corporation’s bylaws can negate preemptive rights. Strict liability is liability without fault. Answer: TRUE Strict liability is liability without fault. A limited partnership is one in which the partners share management responsibilities equally, but some partners […]

Title VII does not apply to the overseas operations of American firms. The Uniform Electronic Transactions Act reflects the decision that electronic transactions do not constitute a written copy because the electronic transaction is not technically a written document. Answer: […]

Securities may be sold during the prefiling period. The UCC assumes that the seller has the right to transfer title free and clear of infringements of intellectual property rights of which the buyer does not have knowledge. Answer: TRUE In […]

If an appellate judge agrees with the majority’s decision, but for different reasons, the judge may write a “concurring” opinion. Japanese law fails to recognize fault of the part of the consumer in product liability cases, and manufacturers must bear […]

If an accommodated party pays a note when it is due, the accommodated party can force any accommodation party to contribute based upon the number of accommodation parties that exist. Banks are required by the UCC to certify the check […]

The rule originates in common law that when a seller transfers goods to a buyer, the buyer gets only voidable title if the buyer is a minor. A board of directors may take no action that benefits a director in […]

Usually the issue of ripeness arises when one party claims that a case is moot. Rewriting a contract to reflect what the parties had agreed on is referred to as rescission. Answer: FALSE Reformation occurs when a written contract does […]

Through the insurance agreement, the insured party transfers his or her risk of loss of property or life to the insurance company. Corporations are not required to indicate in the name of the corporation that the business is incorporated. Answer: […]

As long as an agent is authorized to sign a negotiable instrument on behalf of a principal, the agent’s signature can create liability for the principal. The laws of intellectual property protect property that is primarily the result of mental […]

Restrictive covenants are promises to use or not use land in particular ways. The General Agreement on Tariffs and Trade became effective in 2000. Answer: FALSE The General Agreement on Tariffs and Trade (GATT) became effective on January 1, 1948. […]

In reference to the case in the text, Ex Parte Emmette L. Barran, III, what was the result after the plaintiff sued the national and local Kappa Alpha organization following hazing activities? A. The court ruled that under pure contributive […]

Which of the following stated that a farmer’s production of wheat for use only on his own farm was held to impact interstate commerce. A. Gibbons v. Ogden B. Wickard v. Filburn C. Hughes v. Wendel D. Mangus v. Miller […]

Through what kind of written instrument would Tim direct Howard to pay $600 to the order of Celeste? A. A certificate of deposit B. A note C. A draft D. A dishonored draft Which of the following is true of […]

Answer: TRUE Answer: TRUE Answer: FALSE To adopt the euro, Europe’s common currency, a country must first belong to the European Union. Membership in the EU alone, however, is not enough to allow a nation to adopt the euro. In […]

Answer: FALSE Those experts who believe in deterrence advocate long and difficult prison sentences so that other people in society are dissuaded from committing similar offenses and thus suffering the same fate. Answer: FALSE Sometimes mediation follows the filing of […]

Answer: TRUE Answer: TRUE Answer: TRUE Answer: TRUE Answer: TRUE Answer: FALSE First, another bright gal (or boy) decided that, what worked for mortgages would work for car loans, furniture loans, boat loans, home improvement loans, student loans, construction loans, […]

Answer: FALSE The U.S. Supreme Court has given journalists the extra protection of the actual malice test when they write about public officials. Under the actual malice test, a public official must prove not only that the statement made or […]

Answer: FALSE In any event, a bank may pay or certify checks for 10 days after the date of death of the drawer. This rule permits holders of checks that are drawn shortly before the drawer’s death to cash them […]

Answer: TRUE Answer: FALSE The principle of the separation of powers set up the now familiar three branches of the national government: the executive branch, the legislative branch, and the judicial branch. The principle of checks and balances allows each […]

Answer: TRUE Answer: TRUE Answer: FALSE A modified form of term insurance is decreasing term insurance. The premium stays constant from year to year, but the amount of protection (death benefit) decreases over the years. Answer: TRUE A negotiable instrument […]

Answer: TRUE Answer: FALSE Most people 65 years of age and older are eligible for Medicare a federally funded health insurance program. Answer: TRUE Answer: FALSE Answer: TRUE Answer: FALSE Fair courts were empowered to hear cases involving commercial disputes, […]

Answer: FALSE In 1976, the FTC adopted the holder in due course rule. Answer: TRUE Answer: TRUE Answer: TRUE Answer: TRUE Answer: TRUE Answer: TRUE Answer: TRUE Answer: FALSE The International Atomic Energy Agency (IAEA), which was created in 1957, […]

Answer: TRUE Answer: FALSE The court must distinguish between undue influence and the kindness, attention, advice, guidance, and friendliness shown toward the testator by the one named in the will. Answer: TRUE Answer: TRUE Answer: FALSE The objective of the […]

Answer: TRUE Answer: TRUE Answer: FALSE The Landrum-Griffin Act amended the Taft-Hartley Act, making it an unlawful labor practice to become involved in a hot-cargo contract. In this type of agreement, an employer voluntarily agrees with a union not to […]

Answer: FALSE If the stream is navigable, however, each owner owns only to the bank of the stream, and the bed is owned by the state. Answer: TRUE Answer: TRUE Answer: TRUE Answer: TRUE Answer: FALSE The agent may not […]

Having been called for jury selection, Lawrence discovered that the defendant in the Answer: TRUE Answer: TRUE trial is the brother of his stockbroker. The lawyers may rightfully reject Lawrence on the grounds that his relationship with the stockbroker may […]

Answer: TRUE Answer: FALSE To give minority shareholders an opportunity to elect one or more directors, some states permit cumulative voting. Answer: FALSE The promise of a gift to be given at some future time or in a will is […]

Answer: TRUE Answer: TRUE Answer: TRUE Answer: TRUE Answer: TRUE Answer: TRUE Answer: TRUE Answer: TRUE Answer: TRUE Answer: FALSE A cybertort involves the invasion, distortion, theft, falsification, misuse, destruction, or exploitation of information stored in or related to electronic […]

Answer: FALSE An offer should identify (1) the parties involved in the contract, (2) the goods or services that will be the subject matter of the contract, (3) the price the offeror is willing to pay or receive, and (4) […]

Answer: TRUE Answer: TRUE Answer: FALSE Life insurance contracts carried for the benefit of a relative or approved beneficiary that have yet to mature are also protected. Answer: TRUE Answer: FALSE Equitable remedies are those that are imposed by the […]

Answer: FALSE Rejection terminates an offer and all negotiations associated with it. Further negotiations could commence with a new offer by either party or a renewal of the original offer by the offeror. Answer: FALSE Like most government regulatory agencies, […]

Answer: TRUE Answer: FALSE A holder who receives an instrument from a holder in due course acquires the rights of the holder in due course, even though he or she does not qualify as a holder in due course. Answer: […]

Answer: TRUE Answer: TRUE Answer: TRUE Answer: FALSE A contract implied by the direct or indirect acts of the parties is known as implied-in-fact contract. Because the parties to a contract enter that contract by an exercise of free will, […]

George is 85 years old and Grace, his wife, is 83. They are on a fixed retirement budget and have no disposable income and no savings. Grace’s doctor informs her that she requires a particular medicine that costs $84. They […]

A person with an ownership interest in a business venture is called a _______. Consideration in a small or minimal amount that is written into a contract but never actually paid is called ________ consideration. Answer: nominal When an appellate […]

The CEO of a major computer technology firm wants to form an organization for computer firms in order to share data, information, and ideas. Depending on what was shared at the meetings, the organization may violate antitrust laws. What standard […]

When an employee is being classified as exempt or nonexempt regarding Fair Labor Standards Act coverage, what factors are evaluated to arrive at a determination? You are the CEO of a major corporation that is suffering financially in the current […]

An ________ investor is one who has experience, business savvy, and knowledge of the market to the extent that the law imputes a certain cognizance of investment risk and the ability to protect his or her own interests. Gus owes […]

Which chapter of the Bankruptcy Code is best thought of as temporary protection from creditors while a business goes through a planning process to pay creditors while continuing to do business? A. Chapter 7 B. Chapter 11 C. Chapter 12 […]

Chuck is renting an apartment, and he has a problem. All night he hears the scurrying around of rodents, and each morning he finds cereal boxes and other cardboard food containers gnawed. He has also noticed droppings all over the […]

Which piece of legislation prohibits denying an applicant credit on the basis of discrimination? A. Equal Credit Opportunity Act B. U.S. Constitution C. Fair Credit Act D. Truth in Lending Act Two merchant companies have entered into a contract for […]

A process or procedure is not eligible for copyright protection. Company executives taking foreign officials to dinner is not bribery under the Foreign Corrupt Practices Act. Answer: FALSE Under the FCPA, any gift of tangible or intangible value is prohibited. […]

Linda’s company has a code of ethics and a separate code of conduct. If she wants to be sure that she complies with the company dress code, she would reference the code of ethics. A handyman goes to the wrong […]

Courts enforce fraudulent misrepresentation for intentional lies but will not enforce fraudulent misrepresentation for negligent ones. If a seller has not made a specific representation about a product, the buyer may still be protected by an express warranty. Answer: FALSE […]

The principal may be an individual or entity (such as a corporation), but the agent must be an individual. States provide an automatic right to appeal inferior court decisions, usually to the state’s trial court. Answer: TRUE Because inferior courts […]

One disadvantage of a sole proprietorship business entity is that it is restricted to the principal and the principal’s immediate family in terms of number of employees who may work for the business. Most of the common law that regulated […]

Uncle Phil has lent you $10,000 to pay tuition and other school-related costs. You’ve now graduated, and Uncle Phil is asking about repayment terms. The loan was never evidenced in writing. This transaction falls under the UCC statute of frauds. […]

Kathy and Tom are filing for divorce. Their marital home, which they still live in, is worth $7.5 million and their furniture and other assets are worth more than $25 million. Kathy wants half of everything, but Tom doesn’t think […]