Archives: Quiz

Trade names or assumed names cannot be used for signing negotiable instruments. Article 2 of the Uniform Commercial Code (UCC) prescribes a set of uniform rules for the creation and enforcement of contracts for the sale of goods. Answer: TRUE […]

Under the Consumer Product Safety Act, a private party can sue for an injunction to prevent violations of the act or of CPSC rules and regulations. Point sources are sources of pollution that are fixed and stationary. Answer: TRUE An […]

A homeowner’s policy does not cover theft that takes place at an insured’s workplace even if the item is insured. Antitrust, bankruptcy, patent and copyright cases can be heard by state courts. Answer: FALSE Human beings are protected in the […]

Setting of minimum resale prices is a rule of reason violation of Section 1 of the Sherman Act. The World Trade Organization (WTO) was created as a successor to the General Agreement on Tariffs and Trade (GATT). Answer: TRUE An […]

A proxy contest is one in which incumbent directors are impeached. The Establishment Clause guarantees that there will be no state-sponsored religion. Answer: TRUE Advertising is categorized as limited protected speech. Answer: TRUE A written reconveyance transfers the title of […]

An employer threatening to close an organization because employees of an organization formed a union is considered an unfair labor practice. Res ipsa loquitor is a tort in which the violation of a statute or an ordinance constitutes the breach […]

The Worker Adjustment and Retraining Notification (WARN) Act is a federal act that requires employers with 100 or more employees to give their employees 60 days’ notice before engaging in certain plant closings or layoffs. Objective theory of contracts states […]

A unilateral refusal to deal is a violation of Section 1 of the Sherman Act because there is a concerted action with others. The United Nations (UN) Security Council is composed of all UN member nations. Answer: FALSE A corporation […]

The liability of manufacturers, sellers, lessors, and others for injuries caused by defective products is commonly referred to as product liability. An implied warranty of fitness for a particular purpose is breached if the goods do not meet the buyer’s […]

Only written express warranties are valid. A seller can recover lost profits in a case where damages measured by the difference between contract price and market price would not put the seller in the same position as the performance of […]

An unconscionable contract can be enforced if the unconscionable clause is removed from it. The Environmental Protection Agency lacks adjudicative powers to hold hearings and order remedies for violation of environmental laws. Answer: FALSE A codicil is considered to be […]

In a criminal lawsuit, the government is represented by a lawyer called a defense attorney. A limited partnership is a foreign limited partnership outside the state in which it is organized. Answer: TRUE Shareholders are liable for the debt and […]

A person having origins in any of the original peoples of the Middle East belongs to the Caucasian racial group. The agent is not liable on the contract in a fully disclosed agency. Answer: TRUE Cabinet members of cabinet-level federal […]

Minor breach occurs when a party renders substantial performance of his or her contractual duties. A lawyer who fails to file a document with the court on time, causing the client’s case to be dismissed is liable for legal malpractice. […]

A reply is a document filed by the original plaintiff in response to the defendant’s cross-complaint. Extortion of public officials is called extortion under color of official right. Answer: TRUE An order instrument is payable to anyone in physical possession […]

Distinctive marks are ordinary words or symbols that have acquired special meaning with a product or service. Implied warranties of quality cannot be disclaimed. Answer: FALSE Garnishment is a court order that permits the seizure of a debtor’s property that […]

Insurance coverage is typically suspended during grace periods for payments. If the accord is performed, it is called a satisfaction. Answer: TRUE A three-party secured transaction occurs when a seller sells goods to a buyer who has obtained financing from […]

A living will states a person’s wishes regarding estate planning. The Fair Labor Standards Act guarantees workers unpaid time off from work for family and medical emergencies and other specified situations. Answer: FALSE According to Rawls’s social justice theory, moral […]

Under the defense of contributory negligence, if Mary is partially responsible for her injuries, then she can recover partial damages from the defendant. In a spendthrift trust, all control over the trust is removed from the beneficiary. Answer: TRUE A […]

All states provide that persons under a certain age, such as 14 or 15 years of age, cannot be married. If a newspaper review calls a commercially-successful actor talentless, it is liable for defamation of character. Answer: FALSE To be […]

If a light-skinned member of a race refuses to hire a dark-skinned member of the same race, it constitutes racial discrimination. In deciding the motion for judgment on the pleadings, the judge also considers facts outside the pleadings. Answer: FALSE […]

Violations of generally accepted accounting principles (GAAPs) or generally accepted auditing standards (GAASs), or International Financial Reporting Standards (IFRSs), if applicable, are prima facie evidence of negligence in any court action. An orally agreed upon power of attorney is acceptable […]

In an area franchise, the franchisor authorizes the franchisee to negotiate and sell franchises on behalf of the franchisor. Section 7 of the National Labor Relations Act is a federal law that gives employers the right to terminate union practices […]

A disclaimer of opinion is a clause in auditing that a company can claim wherein the auditor is not allowed to access a high-priority portion of a company’s financial records. A sole proprietor is legally responsible for the business’s contracts. […]

Article 2A of the UCC deals with lessors and lessees. A person who leases a single-family dwelling and does not own more than three single-family dwellings does not come under the purview of the Fair Housing Act of 1968. Answer: […]

A spouse wishing to obtain a no-fault divorce merely has to assert irreconcilable differences with his or her spouse. Breach of contract by one party to a licensing agreement gives the nonbreaching party the right to recover damages. Answer: TRUE […]

Shippers can purchase comprehensive insurance to cover the risk of loss to their goods during shipment. Self-dealing is when shareholders use their position to deprive the board of directors of personal monetary gain. Answer: FALSE In a sale on approval, […]

The term ISP refers to users who disguise computer viruses as executable programs and send them across the Internet. The income or losses of a Limited liability company (LLC) flow through to the members’ individual income tax returns, which avoids […]

A power of attorney gives an agent the power to sign legal documents on behalf of the principal. A person with voidable title to goods can transfer the goods title to a good faith purchaser for value. Answer: TRUE Shareholders […]

A proxy card authorizes another person to vote the shareholder’s shares. Any age below the statutory age of majority is called the period of minority. Answer: TRUE Mitigation of damages is a nonbreaching party’s legal duty to avoid or reduce […]

Confusion occurs if two or more persons commingle fungible goods. Checks and drafts are considered informal contracts as their method of creation varies from one bank to another. Answer: FALSE In an F.O.B. point of shipment, the buyer bears the […]

A unilateral mistake occurs if both parties know the object of the contract but are mistaken as to its value. A voidable contract is also termed as an unenforceable contract. Answer: FALSE Strict liability applies to services but not products. […]

Article 2 of the Uniform Commercial Code (UCC) is also applied by federal courts to sales contracts governed by federal law. The Law and Economics School believes that legal decision making should be functional to market efficiency. Answer: TRUE Liquidated […]

A nolo contendere plea can be used as evidence of liability against the accused at a subsequent civil trial. Unilateral mistake is a mistake in which only one party is mistaken about a material fact regarding the subject matter of […]

If the landlord recovers from the assignor, the assignor has no course of action to recover from the assignee. A trademark is only issued if the registrant proves he has used the mark in commerce. Answer: TRUE In a draft […]

The principal is liable for an innocent misrepresentation made by an agent acting within the scope of employment. Attachments are funds advanced to a debtor from a line of credit secured by collateral. Answer: FALSE All creditors must file a […]

An offeror can revoke his or her offer even after an agreement or acceptance has been reached. A franchisor deals with the franchisee as an independent contractor. Answer: TRUE The federal district courts are empowered to impanel juries, receive evidence, […]

If no beneficiary is mentioned in a life insurance, then the proceeds of the insurance go to the insured’s estate. A properly executed subsequent will revokes a prior will. Answer: TRUE If a bank does not honor a check when […]

According to the Uniform Simultaneous Death Act, each deceased’s property goes to the government in case of simultaneous deaths. An indorsee who accepts a defective instrument qualifies as a holder in due course. Answer: FALSE[/cpmembership] Contracts involving fraud in inducement […]

Lila, a newspaper columnist from Chicago, is unhappy with the soaring price of fuel in the U.S. She publishes an article that criticizes the government’s refusal to offer gasoline at a subsidized price. This is an example of fully protected […]

A principal can authorize an independent contractor to enter into contracts. If a defendant is found not guilty in a criminal case, the government can retry the case with a new jury. Answer: FALSE Principals are liable for negligence caused […]

A merged corporation ceases to exist after the merger. The U.S. Congress gives the Supreme Court discretion to decide what cases it will hear. Answer: TRUE According to the UCC, a seller or buyer who reserves the right to fix […]

For an implied agency to function, implied authority cannot conflict with express authority. A seller’s or lessor’s statement of opinion of the goods does not create an express warranty. Answer: TRUE A contract requires an offer and an acceptance. Answer: […]

An employee who earns tips must be paid minimum wage, excluding the income from tips. The written confirmation rule requires that both parties to an oral agreement send written confirmation of the sale or lease. Answer: FALSE The legality of […]

Not painting the house on time is a violation of a tenant’s duty not to commit waste. The Securities Act of 1933 requires that before a corporation or another business sells securities to the public, the issuer must file a […]

If the product or service offered by a franchisor has not been tested, it should appear on the Federal Trade Commission (FTC) franchise notice. Article 2 of the UCC applies to sales contracts for the sale of intangible goods. Answer: […]

The theory of moral minimum emphasizes correcting social injuries caused by a business. Consequential damages are unforeseeable damages. Answer: FALSE Only the offeree has the legal power to accept an offer and create a contract. Answer: TRUE E-mail contracts are […]

A decree of specific performance is a court order that demands the seller or lessor to perform the contract. An offer that is made to two or more persons jointly must be accepted jointly. Answer: TRUE If an employer categorically […]

Utilitarianism postulates doing the greatest good for the greatest number of people. If a person owns real property in fee simple, his or her ownership is limited in duration. Answer: FALSE The trademark symbol “TM” is used to indicate a […]

Organizations headquartered in Pakistan train their employees in order to enable them to tackle the job that has to be performed immediately. The managers also prefer maintaining a day-to-day perspective. Pakistan is a good example of a ________ society. A) […]