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Law
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.
Q:
In some states, a judgment creditor must obtain a separate order of garÂnishment to cover each of the debtor's pay periods.
Q:
Once a writ of execution has been issued, the debtor cannot pay the judgment and redeem the property until after a sale has taken place.
Q:
WiFi Corporation, a U.S. firm, signs a contract with Bueno Computadores, Ltd., an Argentinean firm, for a shipment and payment for WiFi's goods. This is
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
Q:
Hemisphere Financial Corporation, a U.S. firm, files a suit against Italy in a U.S. court. Italy claims foreign sovereign immunity. Under the Foreign Sovereign Immunities Act, this claim is determined by
a. a neutral third-party court.
b. an international law court.
c. an Italian court.
d. the U.S. court in which the suit is filed.
Q:
Stan, a citizen of Texas, wants to file a suit against Uma, a citizen of Virginia. Their diversity of citizenship may be a basis for
a. any court to exercise in rem jurisdiction.
b. a federal district court to exercise original jurisdiction.
c. a U.S. court of appeals to exercise appellate jurisdiction.
d. the United States Supreme Court to issue a writ of certiorari.
Q:
A writ of execution is a writ that puts in force a court decree or judgment.
Q:
UniOil, a U.S. firm, owns property in Venezuela. When the government of Venezuela seizes the property, UniOil asks a U.S. court to order the property's return. The court rules that Venezuela is exempt from the court's jurisdiction. This is
a. a travesty of justice.
b. the act of state doctrine.
c. the doctrine of sovereign immunity.
d. the principle of comity.
Q:
Ace Company files a suit against Beta, Inc., in a Colorado court with general jurisdiction. Dan files a suit against Eagle, Inc., in a Colorado court with limited jurisdiction. The difference between general and limited jurisdiction is
a. the subject matter of the cases that the court can decide.
b. whether a case is being heard for the first time.
c. whether a case is brought by a citizen or by a business.
d. whether the court is exercising in personam or in rem jurisdiction.
Q:
Call Center Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays Call Center just compensation. This is
a. confiscation.
b. defalcation.
c. dumping.
d. expropriation.
Q:
Leo, a resident of Missouri, owns a warehouse in Nebraska. A dispute arises over the ownership of the warehouse with Opal, a resident of Kansas. Opal files a suit against Leo in Nebraska. Regarding this suit, Nebraska has
a. diversity jurisdiction.
b. in personam jurisdiction.
c. in rem jurisdiction.
d. none of the above.
Q:
To use attachment as a remedy, a creditor must have an enforceable right to payment of the debt.
Q:
An artisan's lien is effective only if a creditor has possession of the property.
Q:
Sudan seizes the assets of Triage Medical, Inc., a U.S. firm. Triage's recovery from Sudan in a U.S. court may be prevented by
a. the act of state doctrine.
b. the doctrine of sovereign immunity.
c. the Foreign Corrupt Practices Act.
d. the principle of comity.
Q:
The Ohio state legislature passes a law to regulate local delivery services. The final authority regarding the constitutionality of this law is
a. the judicial system.
b. the president of the United States.
c. the governor of Ohio.
d. the U.S. Congress.
Q:
Mountain Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is
a. confiscation.
b. defalcation.
c. dumping.
d. expropriation.
Q:
A mechanic's lien is possessory.
Q:
When a forum-selection or choice-of-law clause is included in an international contract, legal proceedings are more complex and attended by more uncertainty.
Q:
An artisan's lien is a security device created at statutory law through which a creditor can recover payment for labor and materials used to increase the value of real property.
Q:
Access to online dispute resolution services is possible 24/7.
Q:
Premier Clothing, Inc., a U.S. firm, obtains a judgment in a U.S. court against Quang Tri, Ltd., a Vietnamese business. Whether the court's judgment will be enforced by a court in Vietnam depends on the Vietnamese court's application of
a. the act of state doctrine.
b. the doctrine of sovereign immunity.
c. the principle of comity.
d. the World Trade Organization.
Q:
A mechanic's lien can be enforced to obtain payment for work that adds value to real property.
Q:
Most online dispute resolution (ODR) forums automatically apply the law of the state of California.
Q:
Yoko, Ltd., and Zeno, S.A., transact an international sale of goods. For these parties, and other international buyers and sellers, the United Nations Convention on Contracts for the International Sale of Goods spells out the duties that apply
a. if Article 2 of the Uniform Commercial Code does not apply.
b. if a dispute is submitted to the International Court of Justice.
c. if the parties have not agreed otherwise in their contracts.
d. under all circumstances.
Q:
In early neutral case evaluation, a third party's evaluation of each party's strengths and weaknesses forms the basis for negotiating a settlement.
Q:
Liens usually do not take priority over other claims against the same property.
Q:
Michael, a citizen of Ireland, and Nina, a citizen of the United States, enter into a contract. When Nina breaches the contract, Michael obtains an award of damages in an Irish court. He asks a U.S. court to enforce the award. The U.S. court defers to and enforces the Irish court's decree. This is
a. a travesty of justice.
b. the act of state doctrine.
c. the doctrine of sovereign immunity.
d. the principle of comity.
Q:
A lien is an encumbrance on property to satisfy a debt or protect a claim for the payment of a debt.
Q:
An arbitrator can never render a legally binding decision.
Q:
China and India form an agreement to govern their commercial exchanges with one another. This is
a. a bilateral agreement.
b. a lateral agreement.
c. a multilateral agreement.
d. a unilateral agreement.
Q:
Shippers Dispatch Corporation orders office equipment from Office Outfitters, Inc., which has an unperfected security interest in the equipment until it is paid for. Meanwhile, Shippers Dispatch takes out a loan from Capital Credit, Inc., subject to a security interest in Shippers Dispatch's building and equipÂment, which Capital perfects. Shippers Dispatch files a bankruptcy petition under Chapter 7. If the petition is granted, in what orÂder will Shippers Dispatch's creditors be paid?
Q:
No court offers mediation as an option before a case goes to trial.
Q:
The Association of Southeast Asian Nations is a regional trade association that was created through
a. a bilateral agreement.
b. a lateral agreement.
c. a multilateral agreement.
d. a unilateral agreement.
Q:
A pipe in Gert's house springs a leak. Gert contracts with Holly's Plumbing & Construction Company to repair the pipe and fix the damÂage to Gert's house. Gert pays 10 percent of the price in advance. Holly's does the work, but Gert refuses to pay the rest of the price. What can Holly's do, and how is it done?
Q:
Negotiation is the most complex form of alternative dispute resolution.
Q:
The government of Iran violates an international law. Persuasive tactics to remedy the situation fail. The only recourse of other nations is to
a. approve the European Union's enforcement of the law.
b. ask the International Court of Justice to enforce sanctions.
c. seek enforcement of the law through the United Nations.
d. take coercive actionsever relations, impose boycotts, go to war.
Q:
Dorothy files a petition for bankruptcy under Chapter 13. If she is granted a discharge, debts that will most likely be discharged include
a. claims not provided for by the plan.
b. payments on retirement accounts.
c. claims for domestic support obligations.
d. credit-card debt incurred more than one year before filing.
Q:
In some courts, pretrial negotiation is mandatory.
Q:
The government of the United States and the governments of other nations have the power to enforce their respective national laws within their borders. The power to enforce international law within the borders of all nations rests with
a. no court or international organization.
b. the European Union.
c. the International Court of Justice.
d. the United Nations General Assembly.
Q:
Zeke files a petition for bankruptcy under Chapter 13. Zeke's Chapter 13 plan must provide for
a. the turnover of his future income to the trustee.
b. his attendance at a credit-counseling briefing.
c. adequate means for the petition's execution.
d a preference for one creditor over another.
Q:
U.S. laws that prohibit discrimination in employment do not apply to U.S. employees working for U.S. firms located abroad.
Q:
Alternative dispute resolution refers to any method for resolving a dispute outside the court system.
Q:
A petition for a discharge in bankruptcy under Chapter 13 may be filed by
a. Gracie, the sole proprietor of Home Net Services.
b. Internet Portals & Pages, a partnership.
c. World Web Services, Inc., a corporation.
d. Internet Portals & Pages or World Web Services, Inc..
Q:
The United States Supreme Court has appellate authority over all cases decided in the state courts.
Q:
A U.S. citizen can bring a civil suit in a U.S. court against a U.S. entity for a tort allegedly committed overseas.
Q:
Anthony believes that he needs to obtain a Chapter 13 discharge in bankÂruptcy. A Chapter 13 case can be initiated by a filing of a voluntary peÂtition by
a. a creditor only.
b. a corporation only.
c. a debtor only.
d. a trustee only.
Q:
The federal equivalent of a state trial court is a U.S. court of appeals.
Q:
A foreign citizen can bring a civil suit in a U.S. court for a violation of a treaty of the United States.
Q:
Ed is a debtor. Financial Loans, Inc., and the government are Ed's crediÂtors. For these parties, a bankruptcy proceeding under Chapter 13 could be initiated by the filing of a petition by
a. Ed alone or by his creditors jointly.
b. Ed only.
c. Financial Loans only.
d. the government only.
Q:
Checkerboard Pizza, Inc. (CPI), files for bankruptcy under Chapter 11. CPI's Chapter 11 plan must contain
a. a plan to turn over its future income to the trustee.
b. a certificate proving attendance at a credit-counseling briefing.
c. a provision of adequate means for the plan's execution.
d a statement of preference for one creditor over another.
Q:
Any conspiracy that has a substantial effect on U.S. commerce is within the reach of the U.S. antitrust laws.
Q:
The decisions of state trial courts of limited jurisdiction may sometimes be appealed to state trial courts of general jurisdiction.
Q:
A justiciable controversy is a case in which the court's decisionthe "justice" that will be servedwill be controversial.
Q:
A petition for a discharge in bankruptcy under Chapter 11 may be filed by
a. Reliable Insurance Company.
b. Pacific Mountain Railroad.
c. Solid State Bank.
d. Valley Credit Union.
Q:
Generally, a foreign government cannot sue under U.S. antitrust laws in U.S. courts.
Q:
Doing substantial business in a jurisdiction exclusively over the Internet is never enough to support jurisdiction over a nonresident defendant.
Q:
Lionel files a voluntary petition for bankruptcy under Chapter 7. The court will likely deny a discharge of Lionel's debts if he
a. conceals records of his financial condition with the intent to defraud a creditor.
b. does not have sufficient assets to pay all his secured creditors.
c. filed for bankruptcy twelve years ago.
d. has a criminal record.
Q:
Under a letter of credit, the issuer is bound to pay the beneficiary after the beneficiary complies with the terms of the letter.
Q:
Cyberspace is its own jurisdiction.
Q:
Foreign exchange markets comprise a worldwide system for buying and selling currency.
Q:
Jay files a bankruptcy petition under Chapter 7. Among his debts are unÂpaid taxes, fines owed to the government, student loans owed to Mega University, and support owed to his ex-wife Kris. Most likely to be disÂcharged are
a. the back taxes if they accrued within the previous three years.
b. the fines if they have been outstanding less than eight years.
c. the student loans if their payment would impose undue hardship.
d. the support debts.
Q:
Any lawsuit involving a federal question can originate in a federal court.
Q:
Force majeure clauses in international business contracts commonly set forth the major clauses of the contracts.
Q:
Thirty-one days before filing a petition in bankruptcy, Dee transfers propÂerty and makes payments that favor one creditor over another. These are
a. affirmation agreements.
b. preferences.
c. secured interests.
d. unsecured debts.
Q:
Generally, a state court can exercise jurisdiction over a nonresident by showing that he or she had minimum contacts with the state.
Q:
The chief aim of the European Union and other trade organizations is to minimize trade barriers among their members.
Q:
Gerald files a bankruptcy petition. The resulting automatic stay will apply to Gerald's
a. alimony debts.
b. child-support debts.
c. spousal maintenance debts.
d. car payment debts.
Q:
Bobby has fifteen creditors. To force Bobby into bankruptcy proceedings, at least three creditors must join the petition and their unsecured claims must add up to at least
a. $500.
b. $10,250.
c. $14,425.
d. $50,000.
Q:
The chief aim of the World Trade Organization and other trade agreements is to maximize trade barriers among their members.