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
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
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 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) 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) 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) The state of an individual party being in a contract is known as privity of contract.
Topic: Privity of Contract
2) Third parties never acquire rights under other people's contracts.
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
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) 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) 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
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) 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.
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
26) Which of the following is not one of the general categories of torts?
A) strict liability
27) What is the definition of a tort?
A) any violation of an ethical duty
B) any crime or misdemeanor
C) any action
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) Injuries suffered as a result of a tort may include past and future medical expenses.
Topic: Intentional Torts Against Persons
2) Punitive damages can be recovered in strict liability and intentiona
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 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
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) 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
1) The Environmental Protection Agency can initiate proceedings in court against suspected
violators of federal environmental laws.
Topic: Environmental Protection
2) The Environmental Prote
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) 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) Sandra accepts an out of court settlement in exchange for dropping a lawsuit. The settlement
agreement is supported by consideration in the form of forbearance of a legal right.
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
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