Questions To Be Answered

Question 1
Article 2 of the UCC covers which types of transactions:
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842755_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Sales of goods and sales of real property.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842755_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Sales of goods and leases of goods or real property.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842755_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Sales of goods and contracts for the providing of services.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842755_1″ CHECKED TYPE=”radio”>” MACROBUTTON HTMLDirect Sales of goods and leases of goods.
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Question 2
Which of the following can be deemed to be a product defect pursuant to strict liability tort law?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842756_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect a. The lack of a warning or the lack of an adequate warning on a product.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842756_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect b. A flawed product, that is, one that does not meet the manufacturer’s own standards for that product.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842756_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect c. A product that does not incorporate state-of-the-art safety modifications which are feasible economically and practically to do.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842756_1″ CHECKED TYPE=”radio”>” MACROBUTTON HTMLDirect d.

All of the above.
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Question 3
Which of the following is a true statement?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842757_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect An invitation to negotiate usually will be construed as constituting an offer to enter into a contract.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842757_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Under the common law, an offer ordinarily does not need to be communicated to the offeree to be effective.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842757_1″ CHECKED TYPE=”radio”>” MACROBUTTON HTMLDirect An agreement under the common law of contracts usually consists of an offer and an acceptance.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842757_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect In most states in the U.S., the revocation of a contract is not legally effective until it is actually received by the offeree.
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Question 4
Which of the following is a true statement?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842758_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect A. The judicial branch has the authority to examine acts of the legislative branch but not the executive.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842758_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect B. The legislative branch of the U.S. government cannot change laws that have been interpreted by Congress.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842758_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect C. The preemption doctrine holds that the U.S. Congress can override Supreme Court decisions by a 3/4s vote.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842758_1″ CHECKED TYPE=”radio”>” MACROBUTTON HTMLDirect D. The Supremacy Clause of the U.S. Constitution means that the Constitution and all laws passed pursuant to the Constitution are the supreme law of the land.
Question 5
Pursuant to the typical court procedure in a civil case lawsuit, the “pleadings” typically consist of:
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842759_1″ CHECKED TYPE=”radio”>” MACROBUTTON HTMLDirect a. The complaint and the answer
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842759_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect b. A plea to a judge for leniency at sentencing time
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842759_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect c. Giving depositions
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842759_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect d. Answering interrogatories
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Question 6
Which is TRUE regarding the employment at-will doctrine in the United States?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842760_1″ CHECKED TYPE=”radio”>” MACROBUTTON HTMLDirect a. It can result in a legal but immoral discharge of an employee.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842760_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect b. It cannot be changed by a contract between the employer and the employee.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842760_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect c. It is operable in the U.S. and can result in a discharge without notice or cause or good cause but the employer based on federal law has to pay severance to the discharged employee based on the number of years he or she has worked for the firm.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842760_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect d. It supersedes and prevails over Title VII of the Civil Rights Act.
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Question 7
 France has a civil law legal system. Civil law systems are principally based on
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842761_1″ CHECKED TYPE=”radio”>” MACROBUTTON HTMLDirect administrative rules and regulations.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842761_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect case law.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842761_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect detailed codified law.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842761_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect executive pronouncements.
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Question 8
The transfer of rights under a contract to a third party is called:
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842762_1″ CHECKED TYPE=”radio”>” MACROBUTTON HTMLDirect An assignment.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842762_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect An adjudication.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842762_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect A resolution.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842762_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect A delegation to an obligee.
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Question 9
What is true about a partner’s right to participate in the management of the partnership?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842763_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect It exists only if the partner has been elected as an officer or management committee member.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842763_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect It exists only if the partnership agreement gives the partner this right.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842763_1″ CHECKED TYPE=”radio”>” MACROBUTTON HTMLDirect It exists automatically, but can be eliminated in the partnership agreement.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842763_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect It exists automatically and cannot be eliminated in the partnership agreement.
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Question 10
Standard Office Products orders one hundred computers from National Suppliers. Unless the parties agree otherwise, National’s obligation to Standard is to
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842764_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect deliver the computers to a common carrier.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842764_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect deliver the computers to Standard’s place of business.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842764_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect hold conforming goods and give notice for Standard to take delivery.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842764_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect set aside conforming goods for Standard’s inspection before delivery.
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Question 11
Which of the following is a false statement?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842765_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect A. An agent has no duty to disclose her agency status to third parties with whom the agent deals.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842765_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect B. An agent who enters into a contract with another party on behalf of the principal impliedly warrants that he has the authority to do so.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842765_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect C. A principal may be liable for the tort of fraud committed by the agent if the agent makes misrepresentations to a third party in the course of negotiating a contract for the principal.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842765_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect D. The basic rule for whether an employer is liable for the tort of negligence committed by his or her employee is whether the employer knew of the employee’s commission of the tort.
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Question 12
To be convicted of a crime under U.S. laws, the prosecution typically must prove the case against the defendant:
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842766_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect a. By a preponderance of the evidence.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842766_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect b. By clear and convincing evidence.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842766_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect c. Beyond a reasonable doubt.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842766_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect d. None of the above.
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Question 13
Ellen assigns to Fred her rights under a contract with Gil. Ellen’s rights under the contract
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842767_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect are extinguished and set up in Fred.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842767_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect continue until the contract is fully executed.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842767_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect continue until Gil performs his obligations under the contract.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842767_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect continue until Fred receives Gil’s performance.
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Question 14
In order for a contract to be valid, it must
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842768_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Be made by a writing signed by adults.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842768_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Be fully performed on both sides.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842768_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Contain an offer, acceptance, and consideration.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842768_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Be properly filed.
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Question 15
Which of the following is a true statement?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842769_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect The Bill of Rights in the U.S. Constitution confers absolute rights on citizens of the U.S, not subject to interpretation by the U.S. Supreme Court, and not capable of being infringed on by government.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842769_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Political speech that would otherwise be protected by the U.S. Constitution’s First Amendment loses that protection if its source is a corporation.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842769_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect The Federal Trade Commission is an example of an independent federal level regulatory agency in the United States.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842769_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Administrative rules and regulations are not binding like the laws of the U.S. Congress since the heads of administrative agencies are not elected.
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Question 16
Which of the following is not an equitable remedy?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842770_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Specific Performance.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842770_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Money damages.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842770_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Reformation.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842770_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Injunction.
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Question 17
The graphics used in “Grave Raiders,” a computer game, are best protected by
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842771_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect copyright law.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842771_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect patent law.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842771_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect trademark law.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842771_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect trade secrets law.
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Question 18
Which of the following is a true statement?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842772_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect A U.S. company doing business abroad will not have to comply with the Occupational Safety and Health Act regulations on worker safety for its overseas manufacturing facilities.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842772_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect A union shop is a firm that that requires union membership as a prior condition of employment.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842772_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Under federal labor law in the U.S., employers can monitor and read their employees’ personal communications without their consent.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842772_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect An employer in the U.S. may hire an illegal immigrant if the employer pays a special tax to the Treasury Department.
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Question 19
Which of the following is a true statement?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842773_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect A. Death of an agent or the principal terminates an agency only after notification of death is received by the living party.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842773_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect B. An agency coupled with an interest usually terminates on the death of the principal.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842773_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect C. An agency coupled with an interest is usually revocable by the principal.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842773_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect D. Revocation of authority is done by the principal whereas renunciation of the authority is done by the agent.
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Question 20
An example of lack of a contractual capacity issue arises when a contract is made by a
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842774_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect A minor
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842774_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect A drunk
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842774_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect A person on drugs
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842774_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect All of the above
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Question 21
Persons who engage in abnormally or ultrahazardous dangerous activities:
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842775_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Are liable only if all the elements of negligence are proven against them.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842775_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Are liable only if they intended to cause a particular injury.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842775_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Are generally not liable for the injuries they cause because otherwise no one would undertake these activities.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842775_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Are liable to persons they injure even if they are not at fault.
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Question 22
Which of the following is a false statement?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842776_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect U.S. child labor laws provide that children aged 12-14 may engage in sales work outside school hours if their parents consent and if no heavy lifting is involved.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842776_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Both men and women can sue for sexual harassment in the United States.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842776_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Whistleblowing by employees in the private sector can now be a legally protected activity pursuant to some states’ laws in the United States.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842776_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect A deceptive advertisement is one that is either false or misleading pursuant to the U.S. Federal Trade Commission’s legal standards.
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Question 23
Which of the following is a true statement?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842777_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Building contractors and subcontractors are usually not independent contractors.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842777_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect An agency relationship can be formed only in a witnessed and signed writing since it is a high-level business relationship.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842777_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect There generally does not need to be a written agreement between the principal and agent in order to create an agency relationship.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842777_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect An agent does not owe to his or her principal a duty to act in good faith.
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Question 24
 Central Data Corporation and Digital, Inc., are competitors. They form a joint venture to research, develop, and produce new software for a particular line of computers. This joint venture is
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842778_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect a per se violation of the Sherman Act
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842778_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect exempt from the antitrust laws.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842778_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect subject to continuing review by the appropriate federal agency.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842778_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect subject to the Rule of Reason.
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Question 25
Which of the following is a true statement?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842779_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect A. The “police power” of a state does not give the state any general authority to regulate business.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842779_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect B. Garbage that is transported across state lines can be considered to be interstate commerce regardless of economic value.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842779_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect C. The Commerce Clause of the Constitution gives Congress the power to regulate commerce with foreign nations and Indian tribes only.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842779_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect D. Congress can only regulate activities that are actually interstate commerce but not activities that affect interstate commerce.
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Question 26
Which of the following is a TRUE statement?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842780_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect A. A general warning by a manufacturer that a product could fail under certain conditions is sufficient to avoid liability for flawed or defectively designed products.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842780_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect B. An example of a risk that a manufacturer always must warn of is that a knife is sharp and could cut someone’s hand when cutting or chopping.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842780_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect C. As a general rule, a manufacturer is not obligated to warn of dangers that result from the misuse or abnormal use of its product.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842780_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect D. Market share liability means that if a consumer cannot identify which manufacturer produced the defective product which caused the consumer harm the consumer cannot recover any damages.
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Question 27
Which of the following is a false statement?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842781_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect A principal owes to his or her agent a duty to act in good faith.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842781_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect If an agent’s contract with a third party is required to be in writing, then the agent’s authority from the principal to enter into that contract generally must be in writing.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842781_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect An agent’s authority to act on behalf of a principal derives exclusively from the agent’s express actual authority.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842781_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect A principal may confer authority on an agent by manifesting words or conduct to a third party.
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Question 28
The International Trade Administration (ITA) of the U.S. Department of Commerce regulates import competition by:
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842782_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect a. Promotion of trade and investment
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842782_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect b. Strengthening industry competitiveness
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842782_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect c. Ensuring fair trade
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842782_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect d. All of the above.
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Question 29
Which of the following is a false statement?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842783_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect  To exercise the power of acceptance, the common law requires an offeree to accept the offeror’s offer unconditionally and unequivocally.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842783_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect The death of a party to a contract will always result in the automatic termination of that contract since it would not be right to burden the surviving spouse or other heirs with business matters.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842783_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect The common law “mirror image” rule generally requires an acceptance of an offer to adhere exactly to the terms of the offer.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842783_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect A counteroffer under the common law does terminate an offer.
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Question 30
Which of the following is FALSE about U.S. securities laws?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842784_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect a. The definition of a “security” is broadly construed by the courts.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842784_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect b. Insider trading by an insider and by a tipee in conspiracy with an insider is illegal.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842784_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect c. Trading on inside information by the “lucky” or the “smart” is always illegal since it is not fair to the other party who does not have the inside information.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842784_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect d. Silence, that is, the failure to disclose material facts regarding the purchase or sale of a security is illegal.
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Question 31
A decree of rescission is
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842785_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect an action to cancel a contract and return the parties to the positions they held before the contract’s formation.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842785_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect an award of damages.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842785_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect an order to do or refrain from doing a particular act.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842785_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect an order to perform what was promised.
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Question 32
Which type of mistake usually will make a contract voidable at the option of the mistaken party?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842786_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect a. A bilateral or mutual mistake
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842786_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect b. A unilateral mistake
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842786_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect c. A unilateral palpable mistake
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842786_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect d. Both a. and c.
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Question 33
Which of the following statements is false?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842787_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Only the government may enforce antitrust law.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842787_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Private parties, including injured consumers, may enforce the antitrust laws.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842787_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect The antitrust laws provide for both criminal and civil sanctions.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842787_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Successful anti-trust plaintiffs can recover three times their actual damages.
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Question 34
Which of the following is/are true about the principal agency relationship?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842788_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect a. In a non-disclosed principal situation, the agent is typically initially liable to the third party.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842788_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect b. Under the ratification doctrine, a principal can ratify and thus authorize an agent’s contract with a third party that was not originally authorized by the principal.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842788_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect c. Under the imputed knowledge and notice doctrine, a principal can be charged with the knowledge of facts that had been disclosed to the principal’s agent.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842788_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect d. All of the above.
0.5 points  
Question 35
 Digital Company plans to consolidate with Software Corporation to form DS, Inc. This requires the approval of
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842789_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect neither their boards of directors nor their shareholders.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842789_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect their boards and their shareholders.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842789_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect their boards only.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842789_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect their shareholders only.
0.5 points  
Question 36
A contract that one party may avoid without being in breach is
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842790_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Void
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842790_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Valid
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842790_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Voidable
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842790_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Executory
0.5 points  
Question 37
In a negligence lawsuit, the causation element would be satisfied by a showing of:
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842791_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect a. An intentional action by the defendant that intended to and caused harm to the plaintiff.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842791_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect b. Actual legal cause and proximate cause of the injury.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842791_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect c. A purposeful malicious act by the defendant that caused harm to the plaintiff.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842791_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect d. None of the above.
0.5 points  
Question 38
An example of valid consideration is
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842792_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Past gifts
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842792_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Moral obligations
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842792_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect The performance of duties one is already obligated to perform
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842792_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect None of the above
0.5 points  
Question 39
What as a general rule makes a covenant-not-to-compete legal in an employment contract?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842793_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect a. The covenant must be reasonable as to time/duration.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842793_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect b. The covenant must be reasonable as to place/territory.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842793_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect c. The employer must be able to demonstrate that the covenant was necessary to protect a legitimate business interest of the employer.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842793_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect d. All of the above.
0.5 points   Question 40
In an antitrust case where a plaintiff is challenging a proposed merger involving the defendant, which is true about the likely arguments the parties will make regarding the relevant market?
PRIVATE “<INPUT VALUE=”0″ NAME=”mc-ans-_57842794_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Both parties will likely argue for a narrowly defined relevant market.
PRIVATE “<INPUT VALUE=”1″ NAME=”mc-ans-_57842794_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect The plaintiff will argue for a narrowly defined relevant market and the defendant will argue for a broadly defined relevant market.
PRIVATE “<INPUT VALUE=”2″ NAME=”mc-ans-_57842794_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect The plaintiff will argue for a broadly defined relevant market and the defendant will argue for a narrowly defined relevant market.
PRIVATE “<INPUT VALUE=”3″ NAME=”mc-ans-_57842794_1″ TYPE=”radio”>” MACROBUTTON HTMLDirect Both parties will argue for a broadly defined relevant market