Archives: Quiz

Execution is a postjudgment court order that permits the seizure of the debtor’s property that is in the possession of the debtor. A Limited liability company (LLC) organized in the United States is considered a domestic LLC throughout the United […]

Shareholder approval is not required to make any changes in a corporation. The violation of a statute that proximately causes an injury is termed as negligence per se. Answer: TRUE Premiums are based on an estimate of the number of […]

Federal and state government statutes that regulate the safety of food, drugs, cosmetics, toys, vehicles, and other products are collectively referred to as consumer protection laws. Unlicensed persons cannot recover payment for services where they do not have the required […]

Improvements to existing machines, processes, or compositions of matter cannot be patented. A general warranty deed contains the greatest number of warranties and provides the highest level of protection to a grantee. Answer: TRUE The holder of a negotiable instrument […]

States lack the power to enact antitrust statutes autonomously. Preferred stockholders are given the right to vote for the board of directors of the corporation. Answer: FALSE A plaintiff must file a claim against an employer within 180 days of […]

The Chief Justice of the Supreme Court is elected by the Associate Justices of the U.S. Supreme Court. The UCITA (Uniform Computer Information Transactions Act) establishes uniform legal rules for the formation and enforcement of electronic contracts and licenses. Answer: […]

In most states, contracts for the sale of goods for $900 do not require to be in writing. The United States follows the principle of restricted immunity for suits against foreign nations. Answer: TRUE A participant in an activity covered […]

An S corporation must pay federal income tax at the corporate level. A decree of judicial dissolution is granted to a partner whenever it is not reasonably practical to carry on the business in conformity with the limited partnership agreement. […]

A no-fault insurance assures an insured party that coverage is available if they are injured in an automobile accident. Members of LLCs (limited liability companies) are not personally liable for the LLCs’ debts, obligations, and liabilities. Answer: FALSE Chattel paper […]

A disparagement is an untrue statement made by one person or business about the products, services, property, or reputation of another business. Innocent misrepresentation is treated as a unilateral mistake. Answer: FALSE The person who is given a life estate […]

A choice of law clause is a mandatory clause that should be present in every international contract. The Uniform Partnership Act’s definition of a general partner includes other limited partnerships. Answer: TRUE Relatives who receive property under intestacy statutes are […]

Greenmail refers to a target corporation’s purchase of its stock from an actual or perceived tender offeror at a premium. Statements of opinion and sales talk do not constitute false and deceptive advertising. Answer: TRUE A limited liability company is […]

If one or both parties to a sales contract are merchants, any additional terms are considered proposed additions to the contract. Renter’s insurance fails to cover an insured for personal liability. Answer: FALSE Operational regulation of commercial airlines by the […]

If no other form of business organization is chosen in a business operated by only one person, the business is by default a sole proprietorship. The party to whom the duty is owed is the delegatee. Answer: FALSE In a […]

The holder of a negotiable instrument has the same rights as the holder of an ordinary nonnegotiable contract. An easement contractoccurs when one person agrees to answer for the debts or duties of another person. Answer: FALSE Article 3 of […]

A sales contract evidenced by writing cannot be contradicted by a prior oral or written agreement. A landlord owes a duty to deliver possession of the leased premises to the lessee. Answer: TRUE A principal owes a duty to indemnify […]

Federal workers are not covered under the Equal Pay Act. There are no specific governmental laws endorsing a moral minimum of social responsibility on corporations. Answer: FALSE A short-form merger does not require the approval of the board of directors […]

If a seller does not disclose legal disputes involving the property being sold, he or she is liable for silence as misrepresentation. In a bailment for the sole benefit of the bailor, the bailee owes a duty of great care […]

“All signatures are genuine or authorized” is a transfer warranty that a transferor of a negotiable instrument for consideration makes. The decisions handed down by the general-jurisdiction trial courts are appealable to an intermediate appellate court or the state supreme […]

A letter of credit is considered an informal contract as it does not have a special method of creation. An offer to create a unilateral contract cannot be accepted by a promise to perform. Answer: TRUE A contract is considered […]

The franchisor is liable for the contracts entered into and torts committed by the franchisee while the franchisee is acting within the scope of the apparent agency. A license is a contract that transfers complete rights in intellectual property and […]

The approval of the surviving corporation’s shareholders is not required if the merger or share exchange increases the number of voting shares of the surviving corporation by 20 percent or less. Procedural administrative law establishes the procedure that must be […]

A doctor driving on the wrong side of the road crashes into an eight-year-old boy riding a bicycle. Fearing the consequences, the doctor flees without reporting the accident or giving first-aid to the boy. The doctor is liable for professional […]

For a gift promise to be enforceable, the promisee must offer a consideration. Agents of an LLC (limited liability company) are not permitted to enter into contracts on behalf of the LLC. Answer: FALSE A friendly merger of two corporations […]

Personal injury is not covered under a standard fire insurance policy. Persons who entered into an illegal contract but withdrew before the illegal act was performed can sue to recover consideration. Answer: TRUE Limited liability companies are created by federal […]

The nature and duration of visitation rights is determined by the parent who has legal custody without the involvement of the court. A tort can be considered an assault without there being any actual physical contact. Answer: TRUE The coming […]

When one party takes specific action to cover a material fact from another party, fraud by enticement occurs. Provisions of federal law are valid as long as they do not conflict with any state law. Answer: FALSE A requirements contract […]

Common stockholders receive dividends declared by the board of directors. Under the common law, innkeepers are not liable for lost or stolen guest property when compared to the innkeepers’ statutes. Answer: FALSE An insured can cover his automobile under both […]

Private civil actions are permitted under the Fair Labor Standards Act. Under common law, the inclusion of additional terms in the acceptance of an offer is considered a counteroffer rather than an acceptance. Answer: TRUE Section 2 of the Sherman […]

According to the fault rule, if the person who gave the engagement ring breaks off the engagement, then the other party can rightfully keep the engagement ring. Limited partners have unlimited personal liability for the debts and obligations of the […]

If an insured does not have an insurable interest in the property being insured, the contract is treated as a wager. General-jurisdiction trial courts can be found in every state. Answer: TRUE In modern real estate law, the doctrine of […]

A promissory note may only be a two-party instrument. A pretrial hearing is also known as a settlement conference. Answer: TRUE Express warranties must contain the word “express” in writing to be legitimate. Answer: FALSE Unlawful eviction occurs when a […]

For noncarrier deliveries, if the seller or lessor has no place of business, the place of delivery is the seller’s or lessor’s residence. The First Amendment’s Freedom of Speech Clause protects both speech and conduct. Answer: FALSE A creditor’s action […]

When a group of plaintiffs with common claims collectively bring a lawsuit against a defendant, it is known as consolidation. The FDA cannot recall any cosmetics that contain unsubstantiated claims of preserving youth or increasing virility from the market. Answer: […]

If the object of a contract becomes illegal after the contract is entered into, the parties are discharged from the contract. To meet the mirror image rule, the offeree must accept the terms of the offer without modification. Answer: TRUE […]

Accountants can be held liable for negligence in preparing unaudited financial statements. According to the Electronic Funds Transfer Act and Regulation E adopted by the Federal Reserve Board, a bank can send unsolicited electronic funds transfer system (EFTS) debit cards […]

The Clear Water Act extends its protection to the oceans. The primary level of the national ambient air quality standards (NAAQS) protects vegetation. Answer: FALSE Any lease for a stated period, irrespective of its duration, is called periodic tenancy. Answer: […]

Value has been given by the holder if he or she acquires a security interest in or lien on an instrument. The length of time the parties live together is sufficient to establish a common law marriage. Answer: FALSE The […]

In the United States, sales contracts and contracts for the payment of money are not assignable. In a sale or return contract, the buyer has the option of returning all the goods to the seller. Answer: TRUE If the builder […]

E-mail contracts do not meet the requirements of the Statute of Frauds. The merchant courts were established because of the unfair results and limited remedies available in the chancery courts. Answer: FALSE The extension of secured credit requires a debtor’s […]

A legal right that arises out of a breach of contract may be assigned. A private plaintiff can bring an action of employment discrimination under Section 1981 of the Civil Rights Act of 1866 without going through the procedural requirements […]

The first 12 circuits of the federal court system are geographical. Pre-established damages agreed to in a contract are known as liquidated damages. Answer: TRUE The delegation doctrine only allows executive and legislative powers to an administrative agency, and not […]

In a manager-managed LLC (limited liability company), it is necessary that the manager is a member of that LLC. A change of venue may be requested in order to find a jury that is not prejudiced. Answer: TRUE Shareholders are […]

When a customer deposits a check into a checking account for collection, the depository bank does not have to pay the customer the amount of the check until the check “clears.” The measure of damages awarded to the innocent party […]

Nonnegotiable instruments are negotiated by holders in due course. Only movable goods come under the scope of Article 2 of the UCC. Answer: TRUE If a shoplifting suspect is detained for an unreasonably long time and is found to be […]

The statute of repose begins to run when the plaintiff suffers injury. Common carriers are held to a duty of strict liability. Answer: TRUE A person who is insane but not adjudged insane cannot void a contract he or she […]

In case a corporation’s assets are liquidated, the preferred stockholders are paid before common stockholders. Rubber-stamps are not recognized as signing instruments under the Uniform Commercial Code (UCC). Answer: FALSE An insurer will issue an umbrella policy only if a […]

Nonperformance of a covenant is not considered a breach of contract because a covenant is an unconditional promise. One of the services provided by the Department of Homeland Security is emergency preparedness and response to terrorist incidents. Answer: TRUE Statutesare […]

An instrument is not considered canceled if it is destroyed or mutilated by accident or by an unauthorized third party. To be actionable as fraud, the misrepresentation must have been the sole factor in inducing the innocent party to enter […]

.bz is a restricted domain extension and can only be used by businesses or organizations in Brazil. Ross makes an offer to Elizabeth to sell his automobile to her for $10,000. In this case, Ross is the offeree and Elizabeth […]