Reference no: EM131304911

Question 1
The seller can recover the purchase price for the goods only under certain circumstances, including when:
The buyer accepts, but fails to pay for the goods.
The goods are destroyed after risk of loss passes to the buyer.
The buyer rejects specially manufactured goods that cannot be resold.
A, B and C.

Question 2
Which of the following is a true statement?
It is unlawful for an employer in the U.S. to hire illegal immigrants unless the employer is based in a border region with very high employment.
As a general rule, it is illegal in the U.S. for private sector employers to use polygraph tests on their employees.
The WARN Act in the U.S. prohibits a company from closing a major plant unless it gets the permission of the Department of Labor.
A closed shop which requires union membership as a condition of hiring is legal pursuant to federal labor laws in the United States.

Question 3
Which of the following best describes a shareholder's preemptive rights?
The right to purchase shares of another shareholder pursuant to a buy-and-sell agreement.
The right to purchase a pro-rata portion of any additional shares issued by the corporation.
The right of shareholders to override actions of the board of directors.
The right of shareholders to remove members of the board of directors without cause.

Question 4
Under the implied warranty of merchantability:
A. Both merchants and non-merchants generally are liable.
B. The warranty includes a requirement that the goods be adequately packaged and labeled.
C. The warranty applies even if a product is misused and instructions are disregarded.
D. The warranty is based on a reasonable consumer expectations test as to what a high quality of a good should be.

Question 5
Under the UCC a merchant is best described as a
A salesman or saleswoman
A retailer
An inventor
A Venetian

Question 6
Common law consists of:
Laws which all nations have in common.
Laws which affect everyone, including ordinary persons.
Rulings and opinions which have been issued by judges when deciding previous cases.
Laws which more people are aware of.

Question 7
Under the common law, a tort can best be defined as:
A. Any violation of an ethical or moral duty.
B. Another term for a crime or misdemeanor.
C. An action done in breach of an agreement that allows the aggrieved party to recover damages.
D. A civil wrong that allows an injured person to recover damages.

Question 8
A sues B in a state trial court for negligence. A loses the suit. If A wants to appeal, the most appropriate court in which to file the appeal is
the state appellate court.
the nearest federal district court.
the nearest federal court of appeals.
the United States Supreme Court.

Question 9
Which of the following is a FALSE statement:
A. Comity is a international law principle which holds that countries should comply with international treaties and other sources of international law due to the mutual respect that countries should have for one another.
B. U.S. courts typically will review the laws, acts, and judicial decisions of foreign countries and interfere with foreign government legal and judicial proceedings which are taking place in foreign countries.
C. The Act of State doctrine holds that the judicial system in one country does not have the power or authority to challenge or overrule the acts of another country within that country.
D. The doctrine of Sovereign Immunity is based on the premise that the jurisdiction of a country within its own territory is exclusive and absolute.

Question 10
Which of the following factors is not required to qualify as a partnership?
Equal investments of effort and capital.
An association of two or more persons sharing profits.
The carrying on of a business.
Co-ownership of the business.

Question 11
A court creating a contract as a legal fiction in order to prevent unjust enrichment is an example of
Quasi-contract
Unconstitutional "judicial activism"
Legal remedies
Promissory estoppel

Question 12
Which of the following damages must be foreseeable in order to be collected?
Consequential.
Nominal and liquidated.
Compensatory, consequential and punitive.
Consequential and compensatory.

Question 13
X accuses Y of fraud. Normally, the reliance element that gives rise to fraud is based on a statement of
delusion.
fact.
opinion.
puffery.

Question 14
Which of the following is a false statement?
A franchisor can impose certain quality standards on a franchisee.
Some business forms and organizations in the U.S. offer limited liability to their owners and investors.
Many states in the U.S. now permit business persons to operate as a limited liability company (LLC).
No capital can be raised through an offering of stock in the U.S. without the principals first registering the shares with the Securities and Exchange Commission and obtaining the agency's approval.

Question 15
A claims that she and B entered into a contract. The intent to enter into a contract is determined with reference to
the conscious theory of contracts.
the objective theory of contracts.
the personal theory of contracts.
the subjective theory of contracts.

Question 16
Which of the following best describes how a corporation, which has not made any special tax elections, and its shareholders, are taxed?
The corporation is not taxed, but the shareholders are taxed on their dividends.
The corporation is taxed, but the shareholders are not taxed on their dividends.
The corporation is taxed, and the shareholders are taxed on their dividends.
Neither the corporation nor its shareholders are taxed.

Question 17
An oral contract in which Sally agrees to work for Jane for the rest of Jane's life is:
A guaranty contract.
Unenforceable under the Statue of Frauds because it cannot possibly be performed within one year.
Enforceable under the Statute of Frauds.
A and C only.

Question 18
Under the UCC, firm offers can be made:
Orally or in writing by merchants.
Orally or in writing by merchants, but only in writing by nonmerchants.
In writing by either merchants or nonmerchants.
In writing by merchants.

Question 19
Which of the following is a true statement?
A legitimate business reason for a neutral employment practice that has a disproportionate effect or adverse impact on minorities may allow the employer in the U.S. to avoid legal liability for discrimination.
Under the U.S. Americans with Disabilities Act of 1990, disabled job applicants are not entitled to "reasonable accommodation" in employment since that surely would cost employers some money.
Title VII of the Civil Rights Act does not cover or reach employees' conduct in the online or "virtual" worlds.
An employer is not liable for Title VII Civil Rights Acts violations committed by its lower level employees, only by its managers and supervisors since the latter "should know better."

Question 20
The concept that case decisions become a basis for decisions in later similar cases is known as:
Chancery law.
Murphy's law.
Common law.
Statutory law.

Question 21
Which form of real property ownership includes the greatest degree of ownership?
Fee simple subject to condition subsequent.
Fee simple determinable.
Fee simple absolute.
Absolute life estate.

Question 22
Unless specifically agreed upon by the partners, which of the following rights do partners not have?
Participation in management.
Sharing in partnership profits.
Salaries or other compensations.
The return of capital.

Question 23
Which of the following is true about intentional infliction of emotional distress?
Recovery is allowed any time there is a measurable amount of mental distress.
There must be some physical contact with the plaintiff.
The defendant's conduct must go beyond all possible bounds of decency and be regarded as atrocious and utterly intolerable in a civilized society.
The plaintiff must have witnessed severe physical injury to a relative or other significant person in the plaintiff s life.

Question 24
Which of the following is a TRUE statement?
A. A contract made by a duly authorized agent acting within the scope of employment is not binding on the principal unless the principal approves the contract in a signed writing.
B. The CEO of a corporation has the implied authority to enter into any and all contracts on behalf of the corporation.
C. An employer is responsible for all the torts committed by his or her independent contractor committed while working for the employer.
D. Independent contractors are not entitled to federal overtime pay requirements.

Question 25
Dina is a partner in Eagle Technical Group. Dina's dissociation from the partnership likely will cause
the automatic termination of the firm's legal existence.
the immediate maturity of all partnership debts.
the dissolution of the partnership and the partnership's buyout of Dina's interest in the firm.
the temporary suspension of all partnership business.

Question 26
Which of the following is NOT an Equitable remedy under the common law:
a. Injunction
b. Money Damages
c. Rescission
d. Specific Performance

Question 27
Which of the following is a FALSE statement?
A. Federal copyright law in the U.S. holds that the copyright to any work created by an employee during the course and scope of his or her employment belongs to the employer, even if the employee has not signed any assignment agreement.
B. The U.S. Safe Web Act gives the Federal Trade Commission the power to share information and cooperate with foreign government agencies to investigate and prosecute spamming, spyware, and other instances of fraud and deception on the Internet.
C. An employee who intends to leave a company to start his or her own business is never allowed to tell his or her co-workers about the employee's entrepreneurial plans due to federal anti-piracy laws.
D. In California, covenants-not-to-compete are illegal and unenforceable in employment contracts.

Question 28
Which of the following is true regarding contract validity?
A void contract is one where a party has the option to avoid her contractual liability.
A voidable contract is one in which a party may avoid his or her obligation under that contract.
A voidable contract is one that has no legal effect because one of the essential elements is missing.
An executory contract is also unenforceable.

Question 29
Which of the following is FALSE about damages for a breach of contract?
a. Money damages can consist of compensatory and consequential damages.
b. Consequential damages must be reasonably foreseeable by the parties as likely damages stemming from a breach.
c. Liquidated damages must be a reasonable amount and not an excessive "penalty."
d. The Mitigation of Damage rule does not apply when an employer breaches a contract with an employee since the employer is usually the dominant entity, and thus the wrongfully discharged employee does not have any obligation to look for other employment.

Question 30
A partnership typically is created:
If the managing partner files appropriate papers with the secretary of state.
If one or more persons or entities engage in an ongoing business activity for profit.
Upon the issuance of stock to the partners.
Once there is a valid written partnership agreement.

Question 31
A plaintiff in a fraudulent misrepresentation case must prove all of the following except:
A. Reasonable and justifiable reliance
B. False statement of material fact
C. Intent to deceive
D. Physical injury.

Question 32
A patent allows the patent holder to do all of the following except:
Profit from having exclusive rights to sell the patented device, but only during the life of the patent.
Keep others from profiting from the patent without the patent holder's permission.
Profit from having exclusive rights to sell the patented device indefinitely.
Allow others to profit from selling the patented device.

Question 33
Which of the following is not true?
The plaintiff s required level of proof to win a civil trial is greater than in a criminal trial.
The victim of a crime may be able to bring a civil lawsuit against the alleged criminal.
After a criminal defendant has been found not guilty, the victim may still bring a civil suit for damages against the same defendant if the victim has not already done so.
Procedural protections for defendants are greater in criminal cases than in civil cases.

Question 34
A supervening illegality (that is, legality after the contract was entered into) is best described as
Voiding the contract
Resulting in a discharge of contract duties
Having no effect on the contract
Making the contract voidable

Question 35
Which of the following statements is false?
Notice-and-comment rulemaking is the most common rulemaking procedure used by administrative agencies in the United States to make law.
Tort law provides legal remedies for both personal injury and property damage.
To commit an intentional tort, a person must intend the consequences of his or her act or know with substantial certainty that certain consequences will occur.
To commit an intentional tort, a person always must act with an evil motive to commit physical harm.

Question 36
The Statute of Frauds:
Makes certain contracts illegal if they are not in writing.
Makes contracts covered by it voidable.
Is designed to protect minors from being taken advantage of.
Makes certain contracts unenforceable if they are not in writing.

Question 37
Specific performance is generally awarded:
In cases where nominal damages are also awarded.
Where the contract involves the sale of property or goods that are unique.
Only under the U.C.C.
When the non-breaching party requests it.

Question 38
Absent any agreement to the contrary, who is liable for the debts of a limited liability company?
Members personally
Managers personally
Both the members and the managers
None of the above

Question 39
Martha is a minority shareholder in the ABC Corporation. Which method of voting would give Martha the best chance to elect someone to the board of directors?
Cumulative.
Noncumulative.
Proxy.
Supermajority.

Question 40
Which of the following facts is the best evidence of the existence of a partnership relationship?
Joint or common ownership of property
Sharing of gross returns of a business
Sharing of net profits of a business
Joint participation in a business activity