Archives: Quiz

Al has a tax service and accounting business in Redwood City. He decides to move to Center City, which is 150 miles away and sells his accounting practice to Able and Baker, a CPA firm. In the sales contract, he […]

In 1995, Congress enacted the Administrative Dispute Resolution Act to require federal agencies to use arbitration or mediation to resolve disputes. a. True b. False An implied-in-fact condition and constructive condition are the same. a. True b. False Answer: False […]

Any action for breach of a sales contract must be begun within: a. four years after the cause of action accrued. b. five years after the cause of action accrued. c. whatever period of time the parties have set in […]

The concept of sovereign immunity provides that a nation’s judicial branch should not question the validity of the actions a foreign government takes within its own borders. a. True b. False After a breach by the seller, buyer may replevy […]

Which of the following best expresses the policy behind the Truth-in-Lending Act? a. To help borrowers by requiring lenders to charge a “reasonable” rate of interest as determined by the Federal Reserve Board. b. To help small business by prohibiting […]

A basic objective of the Securities Act of 1933 is: a. to provide investors with material information concerning securities offered for sale to the public. b. to prohibit misrepresentation and other fraudulent acts in the sale of only registered securities. […]

Statutes of repose were enacted to give consumers more rights against large manufacturers. a. True b. False If a principal debtor defaults on a loan, an absolute surety will have to pay upon demand of the creditor. a. True b. […]

When an injured party is required to elect remedies, which of the following would be mutually exclusive? a. Restitution and liquidated damages b. Specific performance and compensation for incidental damages c. Specific performance and restitution d. Incidental and consequential damages […]

Which of the following terms would indicate a destination contract? a. F.O.B. city of buyer b. F.O.B. city of seller c. C.I.F. d. F.A.S. seller’s port A true statement of a highly personal nature made to embarrass someone is defamation. […]

A judicial lien against a partner’s transferable interest in a partnership is known as a(n): a. legal aggregate. b. delegation of assets. c. charging order. d. assignment. Tender can be made any time of the day or night when the […]

Although under GATT’s most-favored nation provision all signatories must treat each other as favorably as they treat any other country, nations may give preferential treatment to developing nations and may enter into free trade areas. a. True b. False Often […]

Barbara, an antique dealer, intentionally represents the value of an antique chest of drawers, as $6,000 when she has reason to know the value is considerably less. Margaret agrees to buy it for $5,500. It is worth $2,500. In a […]

Since its inception in 1946, the U.N. Secretariat has registered and published approximately how many treaties that expressly or indirectly concern international business? a. 100 b. 550 c. 30,000 d. 75,000 The Worker Adjustment and Retraining Notification Act requires an […]

Pam certified a statement prepared by John, her employee, without checking John’s work. He was never known to be anything but diligent and his integrity had never been questioned. The audit contained gross misstatements. Pam defends a suit against her […]

An association of banks created for the purpose of settling accounts with each other on a daily basis is a: a. payor banking group. b. clearinghouse. c. provisional reserve. d. None of these. Under the RUPA, a partner who does […]

According to the Congressional Budget Office, poorer taxpayers pay a higher percentage of their incomes in state and local sales taxes than do wealthier taxpayers. Answer: Each state has its own licensing regulations for arbitrators. Answer: False Feedback: Any person […]

The Securities and Exchange Commission has both quasi-legislative and quasi-judicial powers. Answer: The news media and the Internet make it increasingly difficult to hide the questionable behavior of large organizations. Answer: True Feedback: The news media and the Internet make […]

Rita is drunk while driving her car, and she hits Anna’s car. This makes Anna a tortfeasor. Answer: In a bailment for the sole benefit of the bailor, the bailee owes a very high duty of care. Answer: False Feedback: […]

The Fair Credit Reporting Act provides that a report containing information solely as to transactions or experiences between a consumer and a person making the report is not a consumer report covered by the act. Answer: The first ten amendments […]

Quasi-strict scrutiny has resulted in holdings that find laws to be valid as well as unconstitutional. Answer: The impetus for creating the benefit corporation structure comes from the perception that traditional corporate forms place less emphasis on shareholder rights. Answer: […]

All states and federal courts have rules of procedure that require a jury to consist of 12 persons in both criminal and civil cases. Answer: With regard to privacy, protections against intrusions by private actors are often limited to particular […]

Business ethics reflect elements of both formalism and consequentialism, but tend to focus more heavily on the former. Answer: The fact that the losing party in a lawsuit usually also has to pay court costs is an added incentive to […]

Equal Employment Opportunity Commission guidelines allow employers to classify jobs as male or female as well as to have male and female seniority lists. Answer: In a number of states, courts have made merchants in mutual benefit bailments liable for […]

Common ailments in which an employee has had a preexisting disease are compensable as “accidental injuries.” Answer: Private property is a system of law under which the state recognizes and enforces an individual’s rights to acquire, possess, use, and transfer […]

The courts will inquire into an agency’s wisdom or effectiveness once the courts decide that an act of legislature is constitutional. Answer: In the context of the Magnuson-Moss Warranty Act, under full warranties, a warrantor does not have to replace […]

The civil law arose in the eleventh and twelfth centuries as the English monarch appointed royal judges to ride circuits around the English countryside and to resolve disputes in the name of the king (or queen). Answer: Industry guides issued […]

If something must take place in the future, before a party to a contract has a duty to perform, it is a condition subsequent. Answer: Louisiana is the only state in the United States that follows a partial civil law […]

The Fair Credit Reporting Act regulates credit reports on both consumers and businesses. Answer: A defrauding seller usually benefits from an increase in the value of the securities. Answer: False Feedback: A defrauding purchaser usually benefits from an increase in […]

Failure to satisfy a condition precedent excuses the performance of a contracting party even if the condition is a minor part of the transaction. Answer: An arbitrator’s erroneous view of the law, no matter how egregious, is always binding because […]

Under the Age Discrimination in Employment Act, age is often recognized as the basis for a bona fide occupational qualification. Answer: The establishment clause and the free exercise clause guarantee freedom of religion through the separation of church and state. […]

It now appears the Supreme Court is comfortable limiting the per se illegality analysis to vertical agreements among competitors. Answer: According to the per se rule, price fixing is illegal only when the parties to the price fixing agreement have […]

Which of the following statements is true of the use of alternative dispute resolution (ADR) techniques? A. ADR techniques are ineffective once the pretrial process has begun. B. Disputing parties must begin a lawsuit to use any form of ADR. […]

Fact Pattern 4-1 Martin is a legal secretary for Allison, a partner in a large law firm in Knoxville. Allison finds Martin quite annoying. The last straw occurs when Martin tells Allison that she looks pale and appears to have […]

A prospectus is a selling document as well as a disclosure document. a. True b. False Answer: Which of the following requirements is not required by a corporation to qualify for S corporation status? a. The corporation must have only […]

For purposes of diversity jurisdiction in federal court, which of the following is true regarding a person’s citizenship? a. A person is a citizen of the state where that person has his or her legal residence or domicile, and there […]

Which of the following is NOT a part of the safe harbor provision for forward-looking statements under the 1934 Act? a. A statement containing a projection of revenues, income, or other financial items. b. A statement of the plans and […]

Fact Pattern 15-1 Gretta is the CEO of a paper company built near a river used in interstate commerce although the state in which the company is located is land locked and not near the coast. Gretta determines that a […]

The __________ control the civil trial practices in all of the U.S. district courts. a. Federal Rules of Civil Procedure b. Universal Rules of Civil Procedure c. National Rules of Civil Court Conduct d. Common Rules of Civil Procedure Answer: […]

The National Labor Relations Act prohibits employers from interrogating employees about union sentiment or activity. a. True b. False Answer: As used in the text, the term “legal astuteness” refers to the ability of a manager to avoid situations making […]

An outstanding mortgage balance in excess of the value of a house is referred to as negative equity. a. True b. False Answer: The __________ has primary responsibility for regulating the labeling of food a. Federal Trade Commission b. Food […]

Conditions __________ occur when the mutual duties of performance are to take place simultaneously. a. precedent b. concurrent c. subsequent d. consequential Answer: The debtor-in-possession must honor all prebankruptcy executory contracts. a. True b. False Answer: False Section 2 of […]

In the __________ case, the U.S. Supreme Court upheld Title II of the Civil Rights Act of 1964 prohibiting discrimination or segregation on the grounds of race, color, religion or national origin in any inn, hotel, motel, or other establishment […]

An equipment lease that serves the purpose of financing is known as a(n) __________ lease. a. finance b. temporary c. lending d. debtor’s Answer: If a product valuable to society is unavoidably unsafe, the __________ determines whether the dangerous product […]

A contract is __________ when one party is induced to enter a contract without having any meaningful choice. a. substantively unconscionable b. procedurally unconscionable c. procedurally impracticable d. substantively impracticable Answer: In theCitizens United v. Federal Election Commission case referenced […]

Mere promotion of a security makes a person a seller and, therefore, liable under section 5 of the 1933 Act based upon the sale of a security without an effective registration statement or by means of a noncomplying prospectus. a. […]

The __________ doctrine imposes liability for physical injury to child trespassers caused by artificial conditions on the land. a. negligence per se b. foreseeable trespasser c. attractive nuisance d. respondeat superior Answer: Under CERCLA which of the following is true […]

The Federal Commerce Commission has adopted guidelines specifying when manufacturers and marketers can label their products “Made in USA.” a. True b. False Answer: Which of the following are included within OSHA requirements regarding posting of information? a. OSHA requires […]

Under Rule 10b-5 a company may not have a “no comment” policy, and must act to dispel untrue rumors. a. True b. False Answer: The first step in the FDA approval process for new drugs is their classification by the […]

Paul attempted to hit Bruce without good cause; but Bruce ducked, and Paul hit Alice instead. Alice was shocked when she felt the blow because she had been looking the other way and did not see it coming. Which of […]

Fact Pattern 17-2 Janie is a pharmacist in Small City. At the direction of several physicians in Small City, she begins mixing up a treatment for indigestion that is prescribed by the physicians. She advertises the mixture, and she and […]