Business Law Review for State Test

At the bottom of the federal court system are the federal

A.Small claims courtsB.District courtsC.Municipal courtsD.Appellate courts

A. B. C. D.

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A grand jury hears evidence to determine

A.Guilt or innocence of the defendant

B.Sentencing of the defendantC.Whether someone must stand

trialD.The arraignment

A. B. C. D.

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The unlawful killing of one human being by another, without malice or

aforethought, is

A.Justifiable homicideB.First-degree murderC.Second-degree murderD.Manslaughter

A. B. C. D.

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In a criminal proceeding, the government is referred to as the

A.DefendantB.OffenderC.ProsecutorD.Protagonist

A. B. C. D.

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A contract that amounts to nothing and has no legal effect is

A.Unenforceable B.Voidable C.Void D.Unilateral

A. B. C. D.

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If a valid offer is met with valid acceptance, the result is

A.Misrepresentation B.Genuine agreementC.Legality D.Capacity

A. B. C. D.

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Threats that cause a person to enter into a contract without real consent

would qualify as

A.Undue influence B.Duress C.Self defenseD.Fraud

A. B. C. D.

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Mutual mistake is also known as

A.Unilateral mistakeB.Bilateral mistakeC.Material mistakeD.Intentional mistake

A. B. C. D.

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A fact that is important to one of the parties to a contract is a(n)

A.Material factB.Unilateral factC.Crucial factD.Concealed fact

A. B. C. D.

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The age of majority in most states is

A.16B.18C.20D.21

A. B. C. D.

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A minor who claims to be over the age of majority commits

A.Fraud B.Misrepresentation C.Extortion D.Larceny be false pretenses

A. B. C. D.

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When a minor disaffirms a contract, the merchandise received upon entering the

contract should be

A.Undamaged B.Returned C.Paid for D.Ratified

A. B. C. D.

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Before a guardian is appointed, a mentally impaired person’s contracts are

A.Voidable B.Binding C.Void D.Disaffirmed

A. B. C. D.

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A contract that at first appears to bind both parties, but really binds no one is

A.Unconscionable B.Illusory C.Gratuitous D.Promissory estoppel

A. B. C. D.

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The law generally will not enforce a contract in which there is no

consideration; the contract is

A.Fortuitous B.Illusory C.Gratuitous D.Voidable

A. B. C. D.

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Wrongful failure to perform a promise set forth in a contract is

A.Perjury B.Voidance of contract C.Breach of contract D.Misrepresentation

A. B. C. D.

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Oral statements made before signing a written contract are not admissible as

evidence under theA.Doctrine of equitable

estoppelB.Statute of fraudsC.Parol evidence ruleD.Written evidence act

A. B. C. D.

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When a contract ends, it is said to be

A.Discharged B.Illusory C.Tendered D.Avoided

A. B. C. D.

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A contract by which ownership of goods is shifted from seller to buyer for a price is a

A.Bid B.SaleC.DeliveryD.Transfer

A. B. C. D.

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The right of ownership to goods is known as

A.Risk of lossB.Title C.Identified goods D.Bill of lading

A. B. C. D.

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The transfer of all goods owned by a business is known as a

A.Forced saleB.Shipment contract C.Total transferD.Bulk transfer

A. B. C. D.

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Manufacturers and sellers are accountable for injuries caused by unsafe or defective

under the principle ofA.WarrantyB.Caveat emptorC.Fraudulent

misrepresentationD.Product liability

A. B. C. D.

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A guarantee of quality imposed by law and not in writing is a(n)

A.Implied warrantyB.Limited warrantyC.Oral warrantyD.Express warranty

A. B. C. D.

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An agent’s obligation to deal honestly with another party is

A.Mutual agreementB.Good faithC.Habeas corpusD.Implied authority

A. B. C. D.

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When a partnership ends, the firm’s assets are first paid to

A.Partners who lent money to the firm

B.Partners who put money into the firm

C.Surplus due partnersD.Creditors other than partners

A. B. C. D.

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A corporation organized for the purpose of making money is a(n)

A.Stock corporationB.Profit corporationC.Public corporationD.Nonprofit corporation

A. B. C. D.

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A requirement for a judge to follow an earlier court decision when deciding a

case with similar circumstances is

A.Justice B.Precedent C.Federal statutesD.Administrative law

A. B. C. D.

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A major crime punishable by imprisonment or death is

A.FelonyB.Misdemeanor C.Larceny D.Robbery

A. B. C. D.

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Failure of the defendant to provide the plaintiff a required degree of care

A.Breach of dutyB.Proximate cause C.Contributory negligenceD.Assumption of risk

A. B. C. D.

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Proposal by one party to another party to enter into a contract

A.Offer B.Acceptance C.Capacity D.Consideration

A. B. C. D.

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Taking back of an offer by the offeror

A.Implied contract B.Counteroffer C.Revocation D.Rejection

A. B. C. D.

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Legal ability to enter a contract

A.Capacity B.Majority C.EmancipatedD.Ratify

A. B. C. D.

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Status of a person who has reached the age at which full civil rights are granted

A.Capacity B.Majority C.EmancipatedD.Minority

A. B. C. D.

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Consideration that took place before a contract was made

A.Gratuitous B.Illusory promise C.Past considerationD.Preexisting duty

A. B. C. D.

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The exchange of benefits and detriments by parties to an agreement

A.Gratuitous B.Consideration C.Benefit D.Unconscionable

A. B. C. D.

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False statements under oath in court

A.Perjury B.Statute of fraudsC.Parol of evidence rule D.Equitable estoppel

A. B. C. D.

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Original versions of a written contract given to each party

A.Memorandum B.Real propertyC.Parol of evidence rule D.Duplicate originals

A. B. C. D.

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Land and anything permanently attached to it

A.Breach of contract B.Real propertyC.Duplicate originalsD.Goods

A. B. C. D.

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A written statement evidencing the transfer of personal property from one

person to another

A.Firm offerB.Bill of saleC.FOBD.Electronic signature

A. B. C. D.

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All things that are moveable such as clothing, books, pens, food, car, etc.

A.Sale B.Price C.Goods D.Future goods

A. B. C. D.

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Implied warranty that the seller of goods possesses a good, clean title to the goods and

can lawfully transfer that title to the buyer

A.Full warrantyB.Warranty of title C.Privity of contractD.Duty to notify

A. B. C. D.

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The relationship that exists between an agent and a principal

A.Agency B.Independent contractorC.Agency by estoppelD.Ratification

A. B. C. D.

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The subsequent approval of an act that previously has not been binding.

A.Rescission B.Ratification C.Dissolution D.Tender

A. B. C. D.

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Legal detachment or breaking off of a partnership

A.Partnership by proof of existence

B.Partnership by estoppelC.Dissolution D.Tenancy in partnership

A. B. C. D.

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Profits distributed to the shareholders

A.Share B.Articles of incorporationC.Certificates of incorporationD.Dividends

A. B. C. D.

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Application for incorporation of a business that describes a corporation’s

organization, powers, and authority

A.Share B.Articles of incorporationC.Certificates of incorporationD.Common stock

A. B. C. D.

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Single unit of ownership of a corporation

A.Share B.Articles of incorporationC.Certificates of incorporationD.Dividends

A. B. C. D.

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Single unit of ownership of a corporation

A.Share B.Articles of incorporationC.Certificates of incorporationD.Dividends

A. B. C. D.

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Requirement that laws and regulations may not contain provisions that result in the

unfair or arbitrary treatment of an individual

A.Precedent B.Statute C.Ethics D.Due process

A. B. C. D.

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To “let the decision stand” is

A.Stare decisis B.JurisdictionC.Civil law D.Statutes

A. B. C. D.

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The elements of a tort are

A.Duty, breach, injury, causationB.Duty, breach, injury, criminal intentC.Duty, intent, negligence, strict

liabilityD.Duty, breach, criminal intent

A. B. C. D.

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What are the three ways to resolve a dispute

A.Sue, friend, verdictB.Enforce, police, contractC.Litigate, arbitrate, mitigateD.Litigate, deliberate, judgment

A. B. C. D.

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When an offer and acceptance have been communicated over a long distance, at which point is an offer legally accepted?

A.When the acceptance is received and acknowledged

B.When the acceptance is sentC.Twenty-four hours after it is sent to allow

it to be receivedD.When the written agreement has been

signed by both partiesA. B. C. D.

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