Archives: Quiz

It is not necessary for a limited partnership to have general partners if the limited partners share management responsibility among themselves. The concept of federal law taking precedence over state or local law is called the preemption doctrine. Answer: TRUE […]

Subsurface rights cannot be sold separately from surface rights. The Private Securities Litigation Reform Act of 1995 replaced proportionate liability of the defendant with joint and several liability. Answer: FALSE If a nurse administers CPR to save the life of […]

Utilitarianism directs an individual to choose the action that provides the greatest good for the greatest number of people. When a drug manufacturer places prescription drugs in containers that can be easily opened by children, the manufacturer can be subjected […]

An LLC (limited liability company) is not liable for injury caused by an LLC member while acting within the ordinary course of business of the LLC. For conscious parallelism to be proven, each manufacturer should be found to have acted […]

Merely observing data on a protected computer without authorization does not amount to a federal crime. If the defendant does not answer the complaint, a default judgment is entered against him or her. Answer: TRUE Personal and universal defenses can […]

Under the Federal Unemployment Tax Act, employers are exempted from paying unemployment taxes. If an agency terminates by operation of law, there is no duty to notify third parties about the termination. Answer: TRUE The articles of incorporation must contain […]

The unfair advantage theory is intended to prevent wealthy companies from overwhelming the competition in a given market. Rabbinic jurisprudence is administered by rabbi-judges sitting as the Beis Din. Answer: TRUE A limited partnership cannot have general partners. Answer: FALSE […]

Hostile tender offers are tender offers made without the permission of the target company’s management. A civil lawsuit does not require a unanimous jury vote. Answer: TRUE A requirements contract is a contract in which a buyer agrees to purchase […]

The proceeds from the sale of real or personal property authorized by a writ of execution are used to pay the creditor the amount of the final judgment. Contracts involving fraud in the inception are void. Answer: TRUE If a […]

Under the UCC, an agreement sufficient to constitute a contract for the sale or lease of goods may be found even though the moment of its making is undetermined. A gift of $100,000 to a named beneficiary is an example […]

Properties owned by state and federal governments are subject to the doctrine of adverse possession. The U.S. government can gag citizens from criticizing the President. Answer: FALSE A ratified contract can be disaffirmed even after the minor reaches the age […]

A lienholder must file a notice of lien with the county recorder’s office in the county in which the real property subject to the lien is located. The Privacy Act provides that documents in the possession of federal administrative agencies […]

Unqualified indorsements are considered negotiable instruments. Section 10(b) of the Securities Exchange Act prohibits the use of manipulative and deceptive devices in contravention of the rules and regulations prescribed by the SEC. Answer: TRUE The Norris-LaGuardia Act is a federal […]

Under the European Union, customs duties have been eliminated among member nations. In an auction with reserve, the seller retains the right to refuse the highest bidder. Answer: TRUE A sole proprietor has limited personal liability. Answer: FALSE A special […]

If a lender extends unsecured credit to a debtor, the creditor takes no interest in any collateral to secure the loan. Negotiationis a procedure whereby the parties choose an impartial third party to hear and decide the dispute. Answer: FALSE […]

When a mutual mistake of value occurs, the contract remains enforceable by either party. All general partners have an equal right to participate in the managementof the general partnership business unless otherwise specified in the general partnership agreement. Answer: TRUE […]

All federal administrative agencies answer directly to the president. Separate property is included in community property. Answer: FALSE If a document of title is required, title must pass when and where the seller delivers the goods to the buyer. Answer: […]

ISPs are not liable for the content transmitted over their networks by e-mail users and websites. A party in a contract that uses its bargaining power unfairly can render the contract unconscionable. Answer: TRUE Title VII of the Civil Rights […]

Trees, crops, minerals, and timber are barred from being included in contracts involving interests in real property. Antitrust laws are constant across changes in governmental administration. Answer: FALSE After the copyright period runs out, the work enters the public domain. […]

The Sarbanes-Oxley Act makes it lawful for an accounting firm to simultaneously provide audit and certain nonaudit services to a public company if the firm is registered. If the object of an offer is made illegal prior to the acceptance […]

The National Labor Relations Act establishes the right of employers to terminate the employment of members of unions whose continued picketing hinders the progress of the business. Euthanasia pursuant to a living will is considered legal. Answer: FALSE After the […]

The uninsured motorist coverage only covers when the accident is an insured’s fault. The National Labor Relations Board oversees union elections. Answer: TRUE Certified checks become stale after two years from the date of their issue. Answer: FALSE Accountants can […]

If there is a confidential relationship between two people, any contract made by the servient party that benefits the dominant party is presumed to be entered into under undue influence. An artisan’s lien is a statutory lien given to workers […]

During the sale of a house, if the seller does not inform the buyer about construction flaws of the house despite the buyer’s enquiry, the seller is liable for fraud by concealment. The FDA labels ordinary household soap as a […]

The federal government is primarily responsible for the implementation of the Clear Water Act in all states. A manufacturer of matches is not strictly liable if an arsonist uses its matches to burn down a building. Answer: TRUE Administrative agencies […]

If a universal defense is proven, the holder or HDC cannot recover on the negotiable instrument. The House of Representatives has the power to impeach the president for certain activities, such as treason, bribery, and other crimes. Answer: TRUE The […]

In an auction without reserve, the seller is the offeree. Collision insurance covers damages to a car in a natural disaster. Answer: FALSE A voluntary petition is a petition filed by a creditor that states that the debtor has paid […]

An insurance broker is an agent of an insurer. Foreign corporations can elect to be taxed as an S corporation. Answer: FALSE An LLLP is a foreign limited liability limited partnership in the state in which it is formed. Answer: […]

The check collection process, which may involve multiple banks, is governed by Revised Article 3 of the UCC. Most Statutes of Frauds permit lease contracts that last for less than five years to be orally contracted. Answer: FALSE Instruments that […]

The inaccessibility exception is a rule that permits employees and union officials to engage in union solicitation on company property if the employees are beyond reach of reasonable union efforts to communicate with them. Writ of garnishment is an order […]

Only the defendant can appeal in a criminal case. Defendants cannot assert a due diligence defense against liabilities arising from the violation of Section 11 of the Securities Act of 1933. Answer: FALSE In the context of limited partnership, general […]

All substantive rules are subject to judicial review. The Sarbanes-Oxley Act contains provisions for prosecuting U.S. firms that bribe foreign officials. Answer: FALSE The owner of the premises where a property is mislaid is entitled to take possession of the […]

The common law of contract allows for gap-filling terms that are implied in the contract. Warranties are the buyer’s or lessee’s assurance that the goods meet certain standards. Answer: TRUE Employers are never strictly liable to any of their employees […]

The coverage of a standard fire insurance policy cannot be enlarged by adding riders or endorsements to the policy. The International Court of Justice is composed of 15 judges who serve nine-year terms. Answer: TRUE A company slogan is an […]

A subsidiary corporation ceases to exist after a share exchange. Bilateral contracts are accepted only upon the offeree’s performance of the required act. Answer: FALSE Real property cannot be owned by more than one person. Answer: FALSE The euro can […]

An award of child support to be paid to the custodial parent by a noncustodial parent is a fixed amount that cannot be modified with changing conditions. The pollutant standards under the national ambient air quality standards (NAAQS) are set […]

The firm offer rule allows the offeror to revoke an offer at any point of time prior to its acceptance. A third party can bring a tort action against an accountant in case of constructive fraud. Answer: TRUE A tender […]

Contracts for the provision of personal services are generally not assignable. The U.S. Equal Employment Opportunity Commission enforcing equal opportunity in employment laws is an instance of general government regulation. Answer: TRUE A will has to be written on legal […]

A drive-other coverage protects an insured for damages to a rental car caused by the insured. Once an accord has been reached, the original contract cannot be enforced under any circumstance. Answer: FALSE Common law of contracts refers to contract […]

In a criminal conspiracy, the commission of the act is not necessary. Registered accounting firms that audit more than 100 public companies annually are subject to inspection and review by the Public Company Accounting Oversight Board (PCAOB) once a year. […]

Assumption of risk is a defense a defendant can use against a plaintiff who knowingly and voluntarily participates in a risky activity that results in injury. Theft committed by an unauthorized entry through an unlocked door would be considered burglary. […]

Fraud in the inception is a type of personal defense. A foreign corporation can conduct commerce in a state if it obtains a certificate of authority from the state. Answer: TRUE Dual agency is permitted if all parties to a […]

The Health Care Reform Act requires health plans that provide dependent coverage to continue coverage for a dependent child until the child turns 26 years of age. An affirmation of the value of goods creates an express warranty. Answer: FALSE […]

Nonrestrictive indorsements contain instructions from the indorser. Article 2 of the Uniform Commercial Code establishes precise rules for determining the passage of title in sales contracts. Answer: TRUE FDA approval is not mandatory for medical devices to be legally sold […]

It is legal for a union to begin a strike thirty days after it has informed the employer about the strike. A deceased joint tenant’s will is effective over the right to survivorship. Answer: FALSE A contract made by a […]

The Bill of Rights establishes the United States as a federal nation and divides power between the center and the states. Nominal damages are awarded when no financial loss resulted from the breach. Answer: TRUE Any state or local law […]

A principal who signs a contract with a third-party is obligated to perform that contract. Attachment is a situation in which the value of a creditor’s collateral is insufficient to satisfy the debt for which it is collated. Answer: FALSE […]

Promissory notes are never payable on demand. An agreement is created when the offeree receives the offer. Answer: FALSE The Health Care Reform Act prevents insurance companies from denying health care insurance to individuals with preexisting health conditions. Answer: TRUE […]

A presentment is a demand for the acceptance of a dishonored instrument. The delivery term “no-arrival, no-sale” can be added to a shipment contract. Answer: FALSE If a seller is a merchant with respect to certain goods, there is an […]

General government regulation consists of laws that regulate the operation of the three branches of the federal government. A living trust is a document that states which lifesaving measures the signor does and does not want. Answer: FALSE The shareholders […]