Archives: Quiz

A pretrial hearing is also known as a settlement conference. The U.S. Supreme Court recognizes an accountant-client privilege under federal law. Answer: FALSE Private companies and nonprofit organizations are also influenced by the Sarbanes-Oxley Act’s accounting and corporate governance rules. […]

If an invention is obvious, then it does not qualify for a patent. If a light-skinned member of a race refuses to hire a dark-skinned member of the same race, this constitutes racial discrimination. Answer: FALSE An adverse opinion is […]

Perfection by investment of collateral is one of the methods of perfecting a security interest under the Uniform Commercial Code (UCC). The infancy doctrine gives adults the right to disaffirm contracts they have entered into with minors. Answer: FALSE An […]

What was the result in the case in the text Lucy v. Zehmer involving whether allegations of joking involving the sale of land prevented the formation of a contract? A. The court ruled that the contract would not be enforced […]

A written document containing the signature of the creator that makes an unconditional promise or order to pay a sum certain in money at either a time certain or on demand is called a _____________. A. negated instrument B. promised […]

When the depositary bank is the same bank as the payer bank, the check is referred to as a(n) ______. A. on-us item B. combined item C. condensed item D. unitary item E. uniform item The person who makes an […]

Kite Sales. Wendy is president of a business that manufactures kites. The kites of her company, ABC Kites, are sold to large toy stores. After Wendy learned a great deal about kites, she started to make kites at home and […]

If one or both parties have the ability to withdraw or enforce the contract, then the contract is _____. A. voidable B. rescinded C. a mistake D. void E. unenforceable Powder Room Mess. For $300,000, Willis agrees to build a […]

Which of the following is true regarding the obligation, if any, of a consumer who discovers that a company has sent the consumer unsolicited merchandise? A. The consumer may treat the merchandise as a gift. B. The consumer may only […]

In an auction _____, the seller is treated as making an offer to accept the highest bid. A. without controls B. with controls C. without reserve D. with reserve E. without qualifications The first _____ amendments to the U.S. Constitution […]

Which of the following is generally true regarding management of a corporation? A. Shareholders do not participate in corporate management. B. Shareholders elect a board of directors. C. The board of directors selects officers to manage the day-to-day business of […]

Which of the following is needed in order for a business to qualify as an S corporation? A. No more than 100 shareholders B. Only individuals, trusts, and in some circumstances corporations as shareholders C. At least $10,000 in capital […]

The owner of a ______ estate possesses the same interest as the owner of a fee simple absolute, only this interest is subject to a condition that may result in termination of the interest. A. conditional estate B. life estate […]

The Stolen Book. Betty tells Susan that Bob stole her business law book from her car. The next day Susan confronts Bob and slaps him for stealing her book. Bob has Susan arrested for slapping him. Susan sues Bob for […]

The Big Sale. Christy, the owner of ABC department store, needed to hire a number of employees in a hurry because of a planned big summer sale. Bob was hired by Christy to run a cash register and to assist […]

Which of the following occurs when a defendant makes a first appearance? A. A magistrate determines whether there was proof beyond a reasonable doubt for the arrest. B. A magistrate determines whether there was probable cause for the arrest. C. […]

The __________________ defense requires that the defendant demonstrates that she investigated the registration statement and had reasonable grounds to believe that the statement was accurate. A. restricted securities B. red-herring C. insider trading D. due diligence E. proxy Inattentive Driving. […]

Which of the following is needed for a valid gift? A. Delivery B. Donative intent C. Acceptance D. Delivery, donative intent, and acceptance E. Delivery and donative intent, but not acceptance Which of the following is true regarding warranties under […]

_________ is the return of any property given up under the contract. A. Rescission B. Reformation C. Restitution D. Injunction E. Compensation Which of the following is false regarding the statute of frauds provision relating to an interest in land? […]

Which of the following is true regarding the liability of an accommodation party? A. As a maker, an accommodation party has primary liability; but, as an endorser, the party has secondary liability. B. An accommodation party has primary liability both […]

Disappointed Applicant. Polly, who had a regular driver’s license to operate an automobile, decided that she really wanted to drive a tractor-trailer truck. She thought that it would be nice to earn money while seeing the country. Polly had all […]

Under which sections of the UCC are buyers and lessees obligated to accept and pay for conforming goods in accordance with the contract? A. 2-301 and 2A-516(1) B. 2-508 and 2A-513 C. 2-613 and 2A-221 D. 2-612(2) and 2A-510(1) E. […]

Community Fair. Craig and Melinda are searching for a one-time business opportunity that will enable them to make a sufficient amount of cash to take a really great vacation to Galapagos. They live in a rather small rural community that […]

Which is a valid defense that allows an employer to discriminate in hiring on the basis of sex, religion, or national origin if doing so is necessary for the performance of the job? A. The Seniority System Defense B. The […]

When a corporation is incorporated, the secretary of state usually issues a(n) ______, a document certifying that the corporation is incorporated in the state and is authorized to conduct business. A. approval of incorporation B. certificate of incorporation C. authorization […]

The statute of frauds imposes on parties the need to carefully consider the terms, agree to them, write them down, and ___________. A. meet with a lawyer to discuss the terms B. continue to negotiate the contract C. orally agree […]

Laws that help establish the conditions of trade between countries are: A. The Uniform Commercial Code and The U.S. Constitution B. Executive Orders and Administrative Codes C. The North American Free Trade Agreement and The Bill of Rights D. The […]

Self-Centered President. Tina is the new president of “We Manage You,” a corporation set up to manage physician practices. Tina has never been very concerned with minority shareholders because she does not believe that they have any influence over the […]

New Agency. Debby just got a job as an assistant in a new federal agency called the Accounting Commission that was set up to regulate the accounting and auditing profession. The agency is headed by commissioners who serve for fixed […]

A _____ is a court order that authorizes law enforcement agents to search for or seize items specifically described in the warrant. A. search warrant B. subpoena warrant C. search authorization form D. seek warrant E. review authorization Which of […]

When the organization in charge of proposing uniform laws proposes a statute, which of the following is true? A. All states must adopt the uniform statute within one year. B. All states must adopt the uniform statute within six months. […]

Revenge. Jane, a first year law student, while walking to school in inclement weather, accidentally slipped on ice knocking down Greg, another first year law student, breaking his glasses. He was very angry with Jane and let the air out […]

Which of the following provides that an acceptance is valid when it is placed in the mailbox? A. The acceptance rule. B. The contract rule. C. The reasonable rule. D. The mailbox rule. E. The contract legality rule. Masked Bandit. […]

Which of the following is true regarding whether a nonemployee may hold an employer liable under Title VII for harassment of an employee? A. An employer cannot be held liable in such cases because the employer has no control over […]

When does the UCC allow buyers and lessees to seek the remedy of specific performance? A. Only when goods are unique B. Only when a remedy at law is inadequate C. Only when goods are worth more than $500 D. […]

Sam, a new police officer, was criticized by his supervisor for failing to make a sufficient number of arrests. Sam went into a section of town known for criminal activity, picked up several suspicious looking individuals, read them the Miranda […]

In Trouble. Bruno, an issuer of stock, may be in trouble. He sold stock in a new health club venture before the effective date of registration. He did so because he was in financial trouble involving other ventures of his […]

Which of the following cannot be forced into involuntary bankruptcy under Chapter 7? A. Farmers B. Ranchers C. Nonprofit organizations D. Farmers, ranchers, and nonprofit organizations E. Farmers and ranchers, but nonprofit organizations may be forced into involuntary bankruptcy Which […]

The National Conference of Commissioners on Uniform State Laws adopted the Uniform Internet Act to answer questions pertaining to electronic transactions such as airline tickets purchased online. A causa mortis gift may be revoked any time before the donor’s death […]

Implied assumption of the risk occurs when the plaintiff expressly agrees, usually in a written contract, to assume the risk posed by the defendant’s behavior. Express conditions are conditions that are not specifically stated but inferred from the nature and […]

Agency law is primarily federal law. The Magnuson-Moss Act requires a full warranty on the sale of goods. Answer: FALSE The 1975 federal law known as the Magnuson-Moss Act requires that if a seller decides to issue a written warranty […]

A transaction in which the payment of a debt is guaranteed by personal property owned by the debtor is called a secured transaction. A gratuitous agent is one who acts without consideration. Answer: TRUE A gratuitous agent is one who […]

Trade dress refers to the overall appearance and image of a product and, is entitled to the same protection as a trademark. In general, secured parties have priority over unsecured creditors. Answer: TRUE In general, secured parties have priority over […]

First Amendment protections do not apply to corporations. Corporations generally provide unlimited transferability of ownership interest. Answer: TRUE Corporations generally provide unlimited transferability of ownership interest. A plaintiff may seek legal but not equitable remedies for violations of Title VII. […]

The FTC decides whether an advertisement is deceptive on a case-by-case basis. The UCC prohibits bank customers from postdating checks. Answer: FALSE Section 4-401(c) states that customers can postdate checks but they must give the bank notice of the postdated […]

In some cases, the U.S. Supreme Court functions as a trial court. Title VII of the Civil Rights Acts applies to all employers, no matter how many employees they have. Answer: FALSE Title VII of the Civil Rights Acts applies […]

Presidents claim the power to issue executive orders on the basis of Article II, Section 1, constitutional power to “take care that the laws be faithfully executed.” Overall, the percentage of unionized workers in the U.S. has declined since the […]

A sole proprietor is considered a separate legal entity. Case law is another name for common law. Answer: TRUE An alternative name for case law is common law. Identification of when the risk of loss attaches is important in regards […]

The purpose of compensatory damages is to punish the defendant and deter future wrongdoers. Under the UCC, a secured interest is an interest in property or fixtures that secures payment or performance of an obligation. Answer: TRUE Under the UCC, […]

A payee may not be a holder in due course. Under the Telephone Consumer Protection Act, it is illegal to transmit advertisements via fax unless the recipient agrees to the fax transmission. Answer: TRUE The TCPA makes it illegal to […]