1) Secured credit refers to credit where there is a second party to pay the debt in the event that
the original debtor does not.
Topic: Types of Credit
2) A debtor who is judgment-proof does not have a l
1) Wills transfer property upon a person's death.
2) In general, a will must be in writing to be effective.
3) Dying intestate means dying without a will.
40) In a civil case, the party whom the complaint is filed against is the:
B) district attorney
D) public defender
E) A, B, and C
41) Once a complaint has been filed with the c
1) In order to be a certified public accountant, an accountant must have attained a minimum
number of years of auditing experience.
Topic: Public Accounting
2) A person who is not certified as an accountant is
1) A party can incur contract liability on a negotiable instrument only if that party's signature
appears on the instrument.
Topic: Signature Liability of Parties
2) Contract liability is another ter
1) The process of bringing, maintaining and defending a lawsuit is called litigation.
Topic: Pretrial Litigation Process
2) A plaintiff must file an answer to the defendant's complain
1) The founders of the United States thought the plight of debtors was so important that they
included a provision in the U.S. Constitution on bankruptcy.
Topic: Overview of Federal Bankruptcy Law
1) The failure of the manufacturer of a product to warn users of the dangerous propensities of a
product can be negligence.
Topic: Tort Liability Based on Fault
2) In a negligence action, all part
40) The doctrine that imposes liability on a seller of a product only if the seller sold the defective product
directly to the injured party is known as:
A) privity of contract
B) resolution of contractual relationships
C) doctrine of direct commercia
1) The Environmental Protection Agency can initiate proceedings in court against suspected
violators of federal environmental laws.
Topic: Environmental Protection
2) The Environmental Prote
31) According to the text, what is the definition of "law?"
A) the list of actions a person must not perform
B) a body of rules of action or conduct prescribed by a controlling authority
C) the acts a person must perfo
1) The law in the United States has been influenced by English, French, and Spanish law.
Topic: Pretrial Litigation Process
2) Many countries in Europe still follow the civil law system.
1) An agency relationship is created by the mutual consent of a principal and an agent.
2) An attorney is an agent when he represents a client.
3) A co
39) Which of the following is NOT true about the United States criminal law system?
A) Criminal defendants are presumed innocent until proven guilty.
B) The burden of proof in a criminal case is on the government.
C) A jury's vote to convict must be u
1) An agent has a duty to notify the principal of information he or she learns from a third party if
that information is important to the principal.
Topic: Agent's Duty of Lo
1) Prior to the Industrial Revolution, employees and employers had similar bargaining power.
Topic: Labor Law
2) Today, approximately 72 percent of private sector wage and salary workers belong to u
1) The debtor in a secured transaction is in most cases the owner of the collateral.
Topic: Article 9 of the UCC - Security Interests in Personal Property
2) If a borrower fails to repay the
1) It is not necessary to use formal words such as "warrant" or "guarantee" in order to create an
Topic: Express Warranties
2) Intent is necessary in order to create an express warranty.
1) An assignment occurs when a nonnegotiable contract is transferred.
Topic: Transfer by Assignment
2) When a negotiable instrument is transferred, the holder has greater rights because he or sh
35) Which of the following would not be a misappropriation of a trade secret?
A) Paying an engineer who is working at a competitor to disclose the trade secret to you.
B) Buying the competitor's product, then tearing it apart and analyzing it in your
1) Tender of delivery under the UCC requires the seller to transfer and deliver goods to the buyer
in accordance with a sales or lease contract.
Topic: Seller's and Lessor's Obligations
28) Which of the following is an equitable doctrine designed to prevent unjust enrichment and unjust detriment
where no contract exists?
A) an express contract
B) the doctrine of formal contracts
C) implied-in-law contract
D) quantum meruit
1) The McCarran-Ferguson Act provides that insurance is regulated by the states.
2) Insurance companies are not exempt from the federal antitrust laws.
3) An insuran
CRIMINAL LAW AND CYBER
1) A person charged with a crime in the United States is presumed innocent until proven guilty.
Topic: Definition of a Crime
2) The evil intent necessary to commit a crime is known as "actus reus."
1) Businesses organized in the United States are subject to the laws of other countries in which
Topic: Law and Ethics
2) All ethical standards have been enacted as law.
1) Corporate shareholders do not have the right to vote on mergers and charter amendments.
Topic: Proxy Solicitation
2) The Securities and Exchange Commission has no authority to
1) One advantage of franchising is that the different franchise outlets can have similar quality
2) Typically a franchisee is a subsidiary of the franchisor.
1) Article 2 of the UCC applies to transactions in goods.
Topic: Scope of Article 2 (Sales)
2) The common law of contracts governs if either Article 2 or Article 2A is silent on the issue.
1) The primary purpose of the Statute of Frauds is to ensure that the terms of important contracts
are not forgotten, misunderstood, or fabricated.
Topic: Statute of Frauds - Writing Requiremen
1) General jurisdiction trial courts can be found in every state.
Topic: The State Court Systems
2) An inferior court is also known as a limited jurisdiction trial court.