Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Business Law
Q:
A licensed professional can employ an unlicensed agent to perform professional actions.
Q:
Loan flipping occurs when a lender convinces a homeowner to refinance soon after obtaining a mortgage.
Q:
A state court system is typically made up of trial courts, appellate courts, and federal district courts.
Q:
To have standing to sue, a party must have been injured or have been threatened with injury by the action about which he or she is complaining.
Q:
An agency relationship may be created for any legal purpose.
Q:
Lenders are required to charge prepayment penalties on most subprime mortgages and home equity loans.
Q:
The Internet has no effect on a court's assertion of personal jurisdiction.
Q:
An agency relationship can be formed without consideration.
Q:
A mortgage must be in writing to comply with the Statute of Frauds.
Q:
Recording a mortgage protects the creditor's security interest in the property.
Q:
For purposes of diversity of citizenship, a corporation is a citizen only of the state in which it is incorporated.
Q:
All employment laws apply to independent contractors.
Q:
Home equity is the portion of a home's value that is "paid off."
Q:
A state court cannot exercise jurisdiction over all of the property located within the boundaries of the state.
Q:
An independent contractor is an employer who controls his or her agent's performance.
Q:
A home equity loan starts as a fixed-rate mortgage and then converts into an adjustable-rate mortgage.
Q:
A long arm statute is a state law that permits courts to obtain jurisdiction over out-of-state defendants.
Q:
Building subcontractors are not independent contractors.
Q:
An independent contractor's physical conduct is controlled, or subject to control, by his or her employer.
Q:
The courts are the final authority concerning the constitutionality of a law.
Q:
A subprime mortgage is a loan made to a borrower who does not qualify for a standard mortgage.
Q:
Employees who deal with third parties are agents of their employers.
Q:
State courts are independent of federal courts.
Q:
With an interest-only mortgage, the borrower can choose to pay only the interest portion of the monthly payment for a specified period of time.
Q:
A fiduciary relationship involves trust and confidence.
Q:
The function of the courts is to interpret and apply the law.
Q:
An adjustable-rate mortgage is a standard mortgage with an unchanging rate of interest.
Q:
A fixed-rate mortgage is a standard mortgage with a rate of interest that changes periodically.
Q:
An agent is authorized to act on behalf of a principal in doing business with third parties.
Q:
On a Web-based auction site, Beth advertises a laptop computer for sale "as is" to the highest bidder. After a brief online discussion with Beth about the qualities of the computer, Adam submits a bid. Adam's bid is the highest offer, and Beth ships the computer to him, insured and packed in bubble-warp and packing peanuts. Ten days later, Adam begins sending e-mail complaints to Beth about an inadequate processor, insufficient memory, and a cracked case. He threatens to complain about the deal in every chatroom on the Web unless she refunds his money. Which online dispute resolution (ODR) forum is the most appropriate for resolving the dispute between Beth and Adam, and why? What might be a good resolution of this dispute?
Q:
A fiduciary relationship allows parties to avoid obligations without liability.
Q:
Eve is walking to work along a sidewalk next to a road. A National Distribution Company (NDC) truck strikes and injures Eve, causing her injuries that result in more than $100,000 in medical expenses. Eve is a resident of California, where the accident occurred. NDC has its principal place of business, and is incorporated, in New York. In what court may Eve sue NDC?
Q:
The initial interest rate is the part of a purchase price that is paid up front in cash.
Q:
The loan that a lender provides to enable a borrower to purchase real property is a mortgage.
Q:
A corporate officer is not an agent for the corporation.
Q:
Dick submits his claim against EZ Sales Corporation to FairSettle.com, a private, online dispute resolution forum. At any time, an appeal of the dispute to a court may be made by
a. Dick only.
b. Dick or EZ.
c. EZ only.
d. neither Dick nor EZ.
Q:
Concealing assets from a bankruptcy court is a crime.
Q:
Lee files a suit against Grant. Lee and Grant meet, and each party's attorney argues the party's case before a judge and jury. The jury presents an advisory verdict, after which the judge meets with the parties to encourage them to settle their dispute. This is
a. court-ordered arbitration.
b. early neutral case evaluation.
c. a mini-trial.
d. a summary jury trial.
Q:
Fact Pattern 22-1 (Questions 28"31 apply)
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.
Refer to Fact Pattern 22-1. First State Bank must pay Lapland when Lapland
a. enters into the contract with Oboe.
b. verifies that Oboe has the money to pay for the purchase.
c. complies with the terms and conditions of the letter of credit.
d. none of the above.
Q:
Before filing for bankruptcy, a consumer-debtor must receive credit counseling.
Q:
Quality Energy Company, a U.S. firm, and Royal Petro, a Dutch firm, enter into a contract that includes an arbitration clause. This clause must provide that the arbitrator will be
a. any specified third party.
b. the American Arbitration Association.
c. the Dutch Arbitration Organization.
d. the International Chamber of Commerce.
Q:
National Consumer Goods Corporation and Paula Purchaser agree to resolve their dispute in arbitration. The arbitrator's decision is called
a. a conclusion of law.
b. a finding of fact.
c. an award.
d. a verdict.
Q:
A husband and wife may file a joint petition for bankruptcy.
Q:
Transnational Corporation and United Shipping, Inc., agree to a contract that includes an arbitration clause. If a dispute arises, a court having jurisdiction may
a. monitor any arbitration until it concludes.
b. order an arbitrator to rule in a particular way.
c. order a party to bring the dispute to court.
d. order a party to submit to arbitration.
Q:
Business Corporation, a U.S. firm, and Comercial, S.A., a Mexican firm, are parties to a contract that does not specify a choice of law. The governing law is that of
a. any third country.
b. Spain.
c. the buyer's place of business.
d. the seller's place of business.
Q:
Bankruptcy proceedings are held in federal courts.
Q:
Fact Pattern 2-1
Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.
Refer to Fact Pattern 2-1. Resolving the dispute between Java and Kaffe by having a neutral third party render a binding decision is one of the advantages of
a. arbitration.
b. conciliation.
c. intervention.
d. mediation.
Q:
A clause in a contract between Timber Corporation, a U.S. business, and Wang, Ltd., a Japanese business, specifies that disputes over the contract will be adjudicated in the United States. This is
a. a choice-of-forum clause.
b. a choice-of-law clause.
c. a force majeure clause.
d. an arbitration clause.
Q:
Bankruptcy law is state law.
Q:
The United States is a member of the World Trade Organization, which, among its members,
a. does not affect trade barriers.
b. maximizes trade barriers.
c. minimizes trade barriers.
d. outlaws trade barriers.
Q:
Fact Pattern 2-1
Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.
Refer to Fact Pattern 2-1. If Java and Kaffe have a long-standing business relationship that they would like to continue, a preferred method of settling their dispute may be mediation because
a. the case will be heard by a mini-jury.
b. the dispute will eventually go to trial.
c. the process is not adversarial.
d. the resolution of the dispute will be decided an expert.
Q:
Fact Pattern 2-1
Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.
Refer to Fact Pattern 2-1. The least expensive method to resolve the dispute between Java and Kaffe may be
a. arbitration because the case will be heard by a mini-jury.
b. litigation because each party will pay its own legal fees.
c. mediation because the dispute will be resolved by a non-expert.
d. negotiation because no third parties are needed.
Q:
One goal of bankruptcy law is to protect a debtor.
Q:
The United States and other members of a certain organization agree to grant normal trade relations status on each other with regard to imports and exports. This organization is
a. the Convention on Contracts for the International Sale of Goods.
b. the International Export-Import Bank.
c. the United Nations.
d. the World Trade Organization.
Q:
Sally and Tom disagree over the amount of money due under their contract. To avoid involving any third party in a resolution of the dispute, Sally and Tom might prefer to use the alternative dispute resolution method of
a. arbitration.
b. litigation.
c. mediation.
d. negotiation.
Q:
Certain types of property are exempt from writs of execution or attachment.
Q:
Chiang Ltd., a Chinese firm, imports its goods into the United States and offers those goods for sale at "less than fair value." This is
a. confiscation.
b. defalcation.
c. dumping.
d. expropriation.
Q:
Vieux Carré S.A., a French firm, imports its goods into the United States and offers those goods for sale at "less than fair value." "Fair value" is the price of
a. comparable goods in a select "basket" of other countries.
b. Vieux Carré's goods in France.
c. Vieux Carré's goods in the United States.
d. Vieux Carré's goods on the world market.
Q:
Edie files a suit against Frank. If this suit is like most cases, it will be
a. dismissed during a trial.
b. dismissed or settled before a trial.
c. resolved only after a trial.
d. settled at a trial.
Q:
A surety can never assert fraud as a defense.
Q:
The government of Japan sets a limit on the amount of rice that can be imported from the United States. This is
a. a dumping duty.
b. an antidumping duty.
c. a quota.
d. a tariff.
Q:
A surety can assert the debtor's bankruptcy as a defense.
Q:
Cody wants to appeal his case against Digital Corporation to the United States Supreme Court. Cody must ask the Court to issue a writ of
a. certiorari.
b. jurisdiction.
c. standing.
d. venue.
Q:
Senator Wyden and other politicians want to restrict the flow of technologically advanced products and data from the United States to other countries. To restrict or encourage exports, Congress can
a. do nothing.
b. assess antidumping duties.
c. impose export taxes.
d. set export quotas.
Q:
A material change in a loan contract between a creditor and a debtor disÂcharges a surety only to the extent that the surety suffers a loss.
Q:
Ben files a suit in a federal district court against Cathy. Cathy loses the suit, appeals to the U.S. Court of Appeals for the Second Circuit, and loses again. Cathy asks the United States Supreme Court to hear the case. The Court is
a. not required to hear the case.
b. required to hear the case because Cathy lost in a federal court.
c. required to hear the case because Cathy lost in a lower court.
d. required to hear the case because it is an appeal.
Q:
The United States taxes each barrel of imported oil at a flat rate. This is
a. an antidumping duty.
b. a dumping duty.
c. a quota.
d. a tariff.
Q:
Mary wins her suit against National Manufacturing Company. National's best ground for appeal is the trial court's interpretation of
a. the conduct of the witnesses during the trial.
b. the credibility of the evidence that Mary presented.
c. the dealings between the parties before the suit.
d. the law that applied to the issues in the case.
Q:
A guarantor is secondarily liable on an obligaÂtion.
Q:
Inferior Company sells products that are poorly made. Jack, who has never bought an Inferior product, files a suit against Inferior, alleging that its products are defective. The firm's best ground for dismissal of the suit is that Jack does not have
a. certiorari.
b. jurisdiction.
c. standing.
d. sufficient minimum contacts.
Q:
A creditor must exhaust all legal remedies against the principal debtor before holding the surety responsible for payment.
Q:
Congresswoman Pelosi and other politicians want to prohibit the import of certain agricultural products that pose a danger to domestic crops. With respect to these products' import, Congress can
a. do nothing.
b. impose quotas, but not tariffs.
c. impose tariffs, but not quotas.
d. prohibit the imports.
Q:
Secure Investments, Inc., a U.S. firm, expands into international markets through a joint venture. In this situation, Secure owns
a. all of the operation, and its profits and liabilities.
b. all of the operation, and none of its profits and liabilities.
c. none of the operation, and none of its profits and liabilities.
d. part of the operation, and shares its profits and liabilities.
Q:
Creditors can agree with a debtor to discharge the debtor's debts on payment of a sum less than that owed.
Q:
Don files a suit against Eagle Sales, Inc., in a Florida state court based on a Web site through which Florida residents can do business with Eagle. If the court applies the principles expressed in Case 2, Bird v. Parsons, it will likely exercise jurisdiction over Eagle if the interactivity of the site is seen as
a. a "neutral" connection with the state.
b. an "Internet" connection with the state.
c. a "passive" connection with the state.
d. a "substantial enough" connection with the state.
Q:
Diners Corporation, a U.S. firm, signs a contract with Essen, A,G., a German firm, to give Essen the right to use Diners' trademark in restaurants in Germany. This is
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
Q:
Ann files a suit against Bob in a California state court, noting that Bob operates a Web site through which California residents have done substantial business with him. If the court applies the principles expressed in Case 2.2, Bird v. Parsons, it will likely exercise jurisdiction over Bob
a. if Ann's claim arises from anything a California resident has done.
b. if Ann's claim arises from Bob's Web site activities.
c. if Ann's claim arises from something other than Bob's Web site.
d. under no circumstances.
Q:
A creditor's composition agreement may be entirely enforceable.
Q:
Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optima's products in Canada. This is
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
Q:
Lariat Rope Company, a firm based in Montana, advertises on the Web. A court in North Carolina would be most likely to exercise jurisdiction over Lariat if the firm
a. conducted substantial business with North Carolina residents at its Web site.
b. interacted with any North Carolina resident through its Web site.
c. only advertised without interactivity at its Web site.
d. all of the above.