Archives: Quiz

An automatic stay halts all creditors’ collection actions except for ones brought by government agencies. An agent is generally prohibited from using his or her own judgment as a substitute for the principal’s judgment unless specifically authorized by the principal. […]

A tenancy for years will automatically renew if no notice is given by the tenant or landlord of intention to terminate the lease. If a company files bankruptcy, preferred stockholders have priority over common stockholders and will be paid from […]

Courts apply the logical-outgrowth standard when reviewing a challenge of a rule from an adversely affected party. The standard for issuance of a warrant for a search in a noncriminal administrative violation investigation is lower than that for investigating a […]

Most contracts require a specific format or ceremony. E-mail communications between parties in an ongoing business relationship have been found to create sufficient minimum contacts to establish personal jurisdiction without a separate physical presence, and this rule is the prevailing […]

Criminal law is designed to compensate parties for money lost as a result of another’s unlawful conduct. Amendments to the Constitution function as a protection of the citizenry from unlawful or repressive acts of the government. Answer: TRUE Amendments to […]

Laws requiring that the police show reasonable cause and obtain a search warrant before entering a place of business to search for evidence are examples of substantive laws. Jurisprudence refers to the conducting of a trial and the rendering of […]

The UCC permits terms to be added into a contract or filled in as gap fillers; however, the contract cannot be enforceable unless the parties have agreed to and specified a price in their agreement. According to the mailbox rule, […]

The American Arbitration Association arbitration rules permit the parties to choose an arbitrator as long as the AAA receives notification of their choice. Federal laws concerning discrimination expressly preempt state laws and prohibit states from imposing additional obligations and legal […]

Eight businesswomen have formed a privately held corporation. Their stock certificates and the stock register of the corporation are public documents. A unilateral contract is formed when a promise requires acceptance by performance. Answer: TRUE A contract is unilateral when […]

If a sole proprietorship loses money, the principal may deduct the losses from her or his own personal tax liability, if any. Business ethics is a recent phenomenon not recognized or considered prior to the mid- to late 1900s. Answer: […]

General partnerships are pass-through entities regarding taxation; however, limited partnerships are not pass-through entities for taxes. Nuisance suits allow an individual to sue a polluter to protect the community from environmental damage. Answer: FALSE Nuisance suits allow protection only for […]

When Ford runs a commercial stating that Fords are better than Chevrolets and that “you’ll be happier if you buy a Ford,” Ford is committing trade libel. The sales of securities in the secondary market does not raise capital for […]

Many express warranties are made through advertisements. A book publisher suggesting a retail price for the latest best seller is an example of price-fixing. Answer: FALSE Since the price is only a suggested one, this is not price-fixing. Courts apply […]

A sole proprietorship automatically is dissolved when the owner dies. A nonprofit corporation is not permitted to make or produce revenue. Answer: FALSE Nonprofit corporations may make money, but the money is put back into the corporation or distributed as […]

The mandate given to the Equal Employment Opportunity Commission is that the commission is required to pursue any discrimination-based claims made by aggrieved employees. Saudi Arabia uses Islamic law for personal conduct and civil law for business transactions. Because of […]

Monopoly power is characterized by ________. A) market share above 50 percent in the relevant market B) market share above 60 percent in the non-relevant market C) market share above 70 percent in the relevant market D) market share above […]

A(n) ________ contract refers to a contract that is entered into by the parties by use of e-mail. A) web B) online C) e-mail D) ISP Which of the following is true of child labor regulations adopted by the U.S. […]

A contractor’s, laborer’s, and material person’s statutory lien that makes the real property to which services or materials have been provided security for the payment of the services and materials is known as a ________. A) material lien B) judgment […]

Which of the following is true of a member-managed LLC? A) Each member has equal rights in the management of the business of the LLC. B) The member with the highest capital contribution becomes the de facto manager of the […]

Jorge, a forklift truck operator for the retail chain Hanes Ridge, was injured when the forklift he was operating toppled over. The forklift truck was designed and manufactured by Ionic Machines, Inc. Jorge received workers’ compensation benefits for his injury. […]

According to the Revised Uniform Limited Partnership Act (RULPA), what liability does a corporation have if it is a general partner in a limited partnership? A) unlimited personal liability B) liability restricted to the extent of its capital contribution C) […]

Explain in brief the Uniform Computer Information Transactions Act (UCITA). The legal right a real property owner has to possess, use, and enjoy the property is known as a(n) ________. A) future interest B) estate in land C) easement right […]

In a litigation process, the party who files a complaint is called the ________. A) bailiff B) plaintiff C) prosecutor D) defendant Conch Corporation, a global oil and gas company, plans to open a subsidized postsecondary vocational school in the […]

Under the Treaty Clause, the ________ is seen as the agent of the United States in dealing with foreign countries. A) United Nations (UN) Secretariat B) U.S. president C) United Nations (UN) D) U.S. Senate The ________ prohibits health insurance […]

The Anticybersquatting Consumer Protection Act (ACPA) is a federal statute that makes the misrepresentation of another person, business or organization using inappropriate words, imagery or other media illegal. What is a vertical merger? A) a merger between firms in totally […]

A(n) ________ is established when one party licenses another party to use the first party’s trade name, trademarks, commercial symbols, patents, copyrights, and other property in the distribution and selling of goods and services. A) proprietorship B) franchise C) implicit […]

In a case of personal injury due to an accident, the statute of limitations begins to “run” at the time the accident occurs. Shareholder resolutions are usually made when the corporation is soliciting proxies from its shareholders. Answer: TRUE The […]

The Fair Credit Billing Act requires that creditors promptly acknowledge in writing consumer billing complaints and investigate billing errors. Within a state, the state constitution precedes the U.S. Constitution. Answer: FALSE The Robinson-Patman Act is a federal statute that makes […]

If a principal and an agent enter into an express agency contract, the principal cannot employ any agent other than the agent who entered into the contract. The traditional view of social responsibility of business emphasized maximizing profits for employees […]

A person having origins in any of the original peoples of the Middle East belongs to the Caucasian racial group. An offering circular must be provided to the investors immediately after the purchase of a Regulation A offering. Answer: FALSE […]

The one-year rule states that an executory contract that cannot be performed by its own terms within one year of its formation must be in writing. Under the False Claims Act, a whistleblower can be awarded up to 25 percent […]

In a fully disclosed agency, an agent is not liable on the contract if he or she guarantees that the principal will perform the contract. The offeror cannot be found liable for the crime of bribery if the person to […]

The annual shareholders’ meeting is held to elect new shareholders. A voluntary petition is a petition filed by a creditor that states that the debtor has debts. Answer: FALSE The No Electronic Theft Act (NET Act) can be invoked for […]

The unfair advantage theory is intended to prevent wealthy companies from overwhelming the competition in a given market. Any state or local law that unduly burdens foreign commerce is considered to be in violation of the Foreign Commerce Clause. Answer: […]

The implied warranty of merchantability requires that the quality of the goods must pass without objection in the trade. Sales that contain provisions of services and goods in the same transaction are not covered by Article 2 of the UCC. […]

A contract cannot be rescinded if there has been a mutual mistake. In a recognizance, a party agrees to pay a specified sum of money if another party does not pay it. Answer: TRUE An appropriate bargaining unit must consist […]

Kantian ethics distinguishes between the morality one uses to judge others and the morality one uses on oneself. If no other form of business organization is chosen while obtaining a license, the business is by default a sole proprietorship. Answer: […]

Sex-plus discrimination occurs when an employer does not discriminate against a class as a whole but treats a subset of the class differently. An employee who earns tips must be paid minimum wage by the employer, excluding the income from […]

The World Trade Organization (WTO) dispute settlement body is the first body to hear a settlement dispute among member nations. The manufacturer or seller is not liable if a product is materially altered or modified after it leaves the seller’s […]

The United States considers Native American tribes as “domestic dependent” nations with limited sovereignty. The Clean Air Act does not apply to stationary sources of pollution. Answer: FALSE If the parties to a sales contract do not agree to the […]

Federal statutes are organized by topic into code books. The death of one of the parties of a tenancy at will does not terminate the contract. Answer: FALSE Comparative negligence is a doctrine that says a plaintiff who is partially […]

Section 4205 of the Patient Protection and Affordable Health Care Act of 2010 requires restaurants and retail food establishments with 20 or more locations to disclose calorie counts of their food items. If a plaintiff is injured, the damages recoverable […]

The Natural Law School of jurisprudence emphasizes shaping laws based on morals and ethics. An orally agreed upon power of attorney is acceptable in court. Answer: FALSE An independent contractor cannot represent more than one principal at a time. Answer: […]

H-1B visa holders are allowed to bring their immediate family members to the United States under the H4 visa category. The Health Care Reform Act prohibits insurers from establishing an annual spending cap for benefit payments. Answer: TRUE A “whistleblower […]

The Racketeer Influenced and Corrupt Organizations Act (RICO) applies only to organized crime. The Miranda rights must be read to a suspect before he or she is detained by the police or other government officials. Answer: FALSE A threat of […]

The exclusionary rule allows for evidence obtained from an unreasonable search and seizure to be introduced at trial. In an undisclosed agency, the principal is solely liable on the contract with the third party. Answer: FALSE Only the defendant can […]

Advertising is categorized as limited protected speech. Based on the doctrine of respondeat superior, principals are liable for the negligent conduct of agents acting within the scope of their employment. Answer: TRUE In terms of compliance with the Statute of […]

The Uniform Limited Liability Company Act is a model act that provides comprehensive and uniform laws for the formation, operation, and dissolution of LLCs. Licensing refers to a business arrangement that occurs when the owner of intellectual property contracts to […]

To be actionable as fraud, the misrepresentation must be the sole factor in inducing the innocent party to enter into the contract. Accountants cannot be held criminally liable for material irregularities in financial statements prepared for registration statements. Answer: FALSE […]

Taking is defined as an act intended to “harass, harm, pursue, hunt, shoot, wound, kill, trap, capture, or collect” an endangered animal. Extortion of private persons is commonly referred to as blackmail. Answer: TRUE In federalism, the federal government and […]