Archives: Quiz

When two corporations merge: a. their separate existences cease, and a new corporation is formed. b. one of the corporations absorbs the other. c. each corporation’s stockholders keep their original shares of stock d. a new charter is needed. Testing […]

For violation of the Sherman Act, the maximum fine that may be imposed on a natural person is: a. $1 million. b. $500,000. c. $0. d. $100 million. An insurer who wrongfully refuses to defend the insured is liable for: […]

In a lease agreement, the person who owns the real property and permits the occupation of the premises is known as the __________, and the person who occupies the property is known as the __________. a. lessor; lessee b. lessee; […]

A(n) __________ contract is a contract to buy all requirements of the buyer from the seller. a. output b. essentials c. necessaries d. requirements Which of the following is an example of a legal restriction that may be imposed on […]

The most recent addition to the American governmental structure is the: a. executive branch. b. administrative agency. c. judicial branch. d. legislative branch. Public policy: a. can be precisely defined b. is frequently used by the courts as a reason […]

Only the parties to a sales contract could sue each other under the traditional concept of: a. exclusivity of contract. b. privity of contract. c. privacy of contract. d. priority of contract. A limited liability partnership: a. is taxed like […]

The owners of a limited liability company are known as: a. members. b. partners. c. contributors. d. electors. Ordinarily, a temporary impossibility __________ the duty to perform. a. suspends b. excuses c. discharges d. none of the above Answer: A […]

An instrument is conditional if: a. it contains an order for the payment of money out of a particular fund. b. it is to be paid from the assets of an existing trust. c. it is to be paid from […]

Which of the following is an incorrect statement about directors? a. Their eligibility requirements may be found in the bylaws. b. Bylaws may require that directors be shareholders in the corporation. c. The board of directors has authority to manage […]

A bank that fails to carry out a payment order is usually liable for: a. interest loss and expenses. b. loss sustained by the originator. c. consequential damages because the payment was not made. d. all of the above. The […]

Computer programs are subject to protection in the U.S. under: a. copyright laws. b. patent laws. c. trade secret laws. d. all of the above. A tenancy for an indefinite time period that may be terminated at any time by […]

A bailee’s __________ gives the bailee the right to maintain possession of the bailed property until reasonable storage and/or repair charges are paid. a. reversionary interest b. Lien c. remainder interest d. Mortgage Unless otherwise agreed, the proper place for […]

Any adversely affected person may challenge the validity of an Occupational Safety and Health Administration (OSHA) standard in a U.S. Court of Appeals. A person who becomes a party to an instrument to add strength to the instrument for the […]

The person to whom the order in a draft is addressed is known as the: a. payee. b. drawee. c. drawer. d. maker. A term of a lease required that the landlord provide exterminating services monthly to control rats and […]

The right of an employee to pension benefits paid into a pension plan in the employee’s name by the employer is referred to by the term: a. venue. b. accrual. c. vesting. d. investing. An incontestability clause ordinarily bars contest […]

If there are twelve (12) or more creditors, at least __________ of those creditors whose unsecured and undisputed claims total __________ or more must sign the involuntary petition. a. one (1); $14,425 b. three (3); $14,425 c. one (1); $15,575 […]

How do the warranty provisions under the CISG compare to the provisions of the UCC? a. In most instances, the standards are the same. b. In all instances, the standards are the same. c. The CISG standards are stricter when […]

To avoid litigation over impossibility and impracticability issues, modern contracting parties often contract around the doctrine of impossibility, specifying the failures that will excuse performance in their contracts. The clauses in which they do this are called __________ clauses, and […]

An unincorporated association: a. cannot sue in its own name. b. cannot be sued in its own name. c. does not have any legal existence apart from the members who compose it. d. all of the above. Generally, what would […]

In the absence of a liquidated damages clause and in the absence of proof of greater damages, the seller€s damages are computed as a. 25% of the purchase price or $500, whichever is less. b. 25% of the purchase price […]

When the name of the payee is spelled incorrectly, the payee: a. must indorse the instrument with the incorrect spelling of the payee€s name. b. must indorse the instrument with the correct spelling of the payee€s name . c. may […]

The validity of a contract is not affected by: a. the effect of the contract on the community. b. unconscionability. c. the absence of good faith. d. the fact that the contract turned out to be a bad bargain for […]

After a proper demand has been made, for assurance of performance to be adequate, it must: a. include consideration. b. allow for the additional examination of the goods. c. be sufficient to assure a reasonable person that the contract will […]

Which of the following is an example of limited or special jurisdiction court? a. Probate court b. Juvenile court c. Domestic Relations court d. All of the above. Contractual capacity is the ability to: a. read and write. b. sign […]

An automatic stay: a. arises only upon the filing of a voluntary petition. b. prevents any further interest from accruing on a debtor’s outstanding debts. c. prevents creditors from taking action outside of the bankruptcy proceeding against a debtor. d. […]

In order to protect themselves from disclosure of proprietary or confidential information, businesses may: a. implement security measures to prevent access by outsiders. b. enforce contractual nondisclosure agreements against departing employees. c. limit disclosure of such information to those with […]

The statute of limitations for breach of a sales contract: a. may be reduced between merchants to one year. b. may be expanded by the buyer and the seller to six years. c. begins to run from the signing of […]

The means by which stockholders may seek to protect themselves against corporate actions to which they object include all of the following except: a. voting in new directors. b. bringing legal action. c. voiding the charter. d. calling a special […]

The RMBCA provides that, absent a conflicting provision in the articles of incorporation, directors may be removed: a. with or without cause by a majority vote of the shareholders. b. with cause by a majority vote of the shareholders, and […]

A right can exist: a. by itself. b. only if created by a court. c. only if there is a corresponding duty. d. only under local law. Consideration is not required in: a. contracts for the sale of goods. b. […]

In antidumping cases: a. The International Trade Administration determines whether foreign goods are being sold in the United States at less than fair value (LTFV). b. The International Trade Commission determines if there is an injury to a U.S. industry […]

The Internet Tax Freedom Act (ITFA) prohibits companies from charging sales tax on Internet transactions. Criminal laws: a. define wrongs against society. b. define the rights of one person against another. c. carry damage remedies against the wronged individual. d. […]

The United States constitution places the most significant limitations on administrative investigation in the area of: a. search and seizure of the person. b. aerial inspection. c. search and seizure of papers and records. d. guarantee against self-incrimination. A person […]

When performance is impeded due to the occurrence of an event whose nonoccurrence was a basic assumption of the contract, the contract may be discharged on the grounds of: a. commercial impracticability. b. commercial impossibility. c. economic frustration. d. economic […]

In which of the following scenarios is the agent exposed to the greatest risk of liability? a. disclosed principal and authorized contract b. undisclosed principal and authorized contract c. partially disclosed principal and authorized contract d. authorized receipt of money […]

The rule of mitigation of damages requires that a party injured by a breach of contract must: a. take any and all steps possible to reduce the damages that will be sustained because of the breach. b. discharge the contract […]

A computer crime generally requires that: a. the criminal possess a computer. b. the victim possess a computer. c. the criminal have some knowledge of computers. d. the victim have some knowledge of computers. An application for insurance: a. may […]

An incidental beneficiary of a contract: a. can sue to enforce the contract. b. cannot sue to enforce the contract. c. is a beneficiary specifically named in the contract. d. is an assignee of the direct beneficiary. A letter of […]

A contractual provision which states that a waiver of rights will not constitute a modification to the contract is: a. not enforceable as being in bad faith. b. not enforceable as a violation of law. c. enforceable by one party […]

If a provision in an insurance policy is ambiguous: a. it is interpreted in favor of the insurer because the insured could have rejected the policy. b. it is interpreted against the insurer. c. parol evidence is admitted to show […]

A contract based on a mutual mistake in judgment is: a. voidable by the adversely affected party. b. not voidable by the adversely affected party. c. void ab initio. d. none of the above. When an offer has been accepted: […]

The Americans With Disabilities Act applies to private employers when: a. they have federal contracts. b. they have demonstrated past practices of discrimination. c. they have fifteen (15) or more employees. d. they have state contracts. A written stop payment […]

It is probable that a zoning variance would be granted: a. even though many of the neighboring property owners object. b. on the grounds of hardship, regardless of who created the hardship. c. to an outside advertiser to build a […]

A contract is interpreted to give effect to: a. the intent of the parties. b. what the court believes is a fair contract. c. what the defendant thought the contract meant. d. what will be best for the economic life […]

Which of the following implied warranties is created when the buyer relies on the seller to pick out the goods that the buyer requires to meet a stated need? a. conformity to description b. Merchantability c. fitness for a particular […]

A corporation or group of investors may seek to acquire control of another corporation by offering cash for all of its shares made available for sale by a certain date. This action is called a(n): a. cash tender offer. b. […]

The formation of contracts in cyberspace is governed today largely by: a. international contract law principles. b. traditional contract law principles. c. federal contract law principles. d. uniform state laws. The right to privacy applies to protect you from unreasonable […]

If a maintenance employee at a hotel finds a pocketbook with $500 in cash while cleaning an empty guest room, the employee: a. is entitled to keep the property, because the employee has the legal status of a “finder.” b. […]

Consumers have the responsibility to examine periodic statements provided by their financial institutions. If a loss would not have occurred but for the failure of a consumer to report within __________ of the transmittal of the statement any unauthorized transfer, […]

A subpoena to testify or to produce records: a. is prohibited by the constitutional guarantee against unreasonable searches and seizures. b. is an illegal attempt to gain information by compulsion. c. cannot be opposed on the grounds that such a […]