Question: Which of the following best describes the exclusionary rule?
Answer Options:
A rule that provides any evidence gathered in violation of the Fourth Amendment to be used in a prosecution against the defendant.
The quid pro quo for granting immunity.
A contract provision that excuses a party from certain liability.
The consequences of a plea bargain.
Answer: A rule that provides any evidence gathered in violation of the Fourth Amendment to be used in a prosecution against the defendant.
Question: Which of the following is true of an easement?
It is tangible personal property.
It is intangible personal property.
It is a right related to real property.
It is a license.
Answer: It is a right related to real property.
Question: The role of a grand jury is which of the following?
To have an open public court proceeding to determine the guilt of a defendant.
To apply a standard of beyond a reasonable doubt in rendering a decision against a defendant.
A proceeding not open to the public to determine without the defendant’s participation of whether there is probable cause to pursue prosecution against the defendant.
None of the alternatives are correct.
Answer: A proceeding not open to the public to determine without the defendant’s participation of whether there is probable cause to pursue prosecution against the defendant.
Question: In which type of bankruptcy is a repayment plan necessary?
Repayment plans are not necessary in any bankruptcy.
Chapter 13.
Both Chapter 13 and Chapter 7.
Chapter 7.
Answer: Chapter 13.
Question: Watching the Super Bowl at Louie’s Bar, Charles becomes extremely intoxicated. Leaving the bar, driving drunk, Charles causes an accident with another car and injures the driver of that car. The driver sues Louie’s Bar. What is the likely outcome?
Answer Options:
No liability because no one working at Louie’s bar was involved in the accident.
Assuming the state has a dram act statute, Louie’s Bar could be responsible for the driver’s injuries.
No liability because Louie’s Bar does not owe the driver a duty of care.
No liability because individuals often get drunk at bars.
Answer: Assuming the state has a dram act statute, Louie’s Bar could be responsible for the driver’s injuries.
Question: Which of the following is not a characteristic of an adhesion contract?
Answer Options:
Lack of opportunity to ask questions.
Equal bargaining positions.
One-sided provisions.
Fine print.
Answer: Equal bargaining positions.
Question: The power of the federal government to regulate copyrights is by virtue of which of the following?
Common law.
Executive order.
Congressional mandate.
The U.S. Constitution.
Answer: The U.S. Constitution.
Question: If a federal court declares a federal statute unconstitutional, it is due to which of the following?
Answer Options:
the supremacy of the U.S. Constitution which overrides any federal law that violates it.
an exercise of diversity jurisdiction.
stare decisis.
a precedent.
Answer: the supremacy of the U.S. Constitution which overrides any federal law that violates it.
Question: The individual who manages the liquidation of non-exempt assets in a Chapter 7 bankruptcy is which of the following?
Answer Options:
A trustee appointed by the U.S. Trustee
The U.S. Trustee
The debtor
The bankruptcy judge
Answer: A trustee appointed by the U.S. Trustee
Question: Which of the following best describes an elective share?
Answer Options:
It is the minimum amount a testator is allowed to leave by will to his or her spouse.
It is the minimum amount a testator is allowed to leave by will to his or her minor children.
It is an intestate share.
Non-probate property.
Answer: It is the minimum amount a testator is allowed to leave by will to his or her spouse.
Question: The rationale for checks and balances in the U.S. Constitution is which of the following?
Answer Options:
So that the judicial branch has sufficient resources to operate federal courts.
To make sure that no single branch becomes too powerful.
So that administrative agencies work well in the executive branch.
None of the alternatives are correct.
Answer: To make sure that no single branch becomes too powerful.
Question: Victor E. Lapp purchased a motorcycle. Spending 15 minutes to save 15% on insurance, Victor signs a contract. One day, Victor’s motorcycle was crushed in a parking lot while he was shopping. When he called his insurance agent, he was told that the insurance only covered damage caused by a lizard. The contract Victor signed is best described as follows:
Answer Options:
An adhesion contract likely deemed to be unconscionable.
A contract with an exculpatory clause.
An implied contract.
A unilateral contract consummated by Victor signing the contract.
Answer: An adhesion contract likely deemed to be unconscionable.
Question: Whether a franchisee is required or not required to use the franchisor’s logo is?
Dependent on state law.
Only required pursuant to the franchisor’s requirement.
Dependent on federal law.
None of the alternatives are correct.
Answer: Only required pursuant to the franchisor’s requirement.
Question: If investors become less averse to risk, the slope of the Security Market Line (SML) will increase.
a. True
b. False
Answer:
Question: One of your friends asks you to explain the difference between a license and an easement in gross. Your response is…
A license is the right to enter property for a particular purpose – an easement in gross is the right to enter property to extract something from the property.
A license is the right to enter property for a particular purpose – an easement in gross is the right to enter property in order to have access to a road.
An easement in gross is the right to enter property for a particular purpose – a license is the right to enter property to extract something from the property.
There is no difference.
Answer: A license is the right to enter property for a particular purpose – an easement in gross is the right to enter property in order to have access to a road.
Question: Phyllis Goode went to a plumbing store and purchased a sink for her cabin. There is remote road leading to the cabin but instead of driving on that road to reach the cabin, without permission, Phyllis drives through another property owner’s driveway to get to the cabin. By driving through the driveway instead of through the remote road, Phyllis saved at least an hour. Which of the following is true?
Phyllis acted properly because she had a good reason to drive through the other property owner’s driveway.
Regardless of her reason, Phyllis did not have an easement to drive across the property, and thus did not have legal access to the driveway.
Regardless of her reason, Phyllis did not have a license to drive across the property; and, thus did not have legal access to the driveway.
Phyllis acted properly because in driving through the other person’s property, she caused no damage.
Answer: Regardless of her reason, Phyllis did not have an easement to drive across the property, and thus did not have legal access to the driveway.
Question: What is true about the use of personal property as security for a loan?
The borrower retains ownership of the property but gives legal rights to the lender.
The lender holds both legal and physical control of the property.
The property must be fully transferred to the lender for the duration of the loan.
None of these statements are correct.
Answer: The borrower retains ownership of the property but gives legal rights to the lender.
Question: Bankruptcy Court and Tax Court are examples of which of the following?
Answer Options:
State specialty courts.
Appeals courts.
Diversity courts.
Federal specialty courts.
Answer: Federal specialty courts.
Question: The owner of a home goods store informs the manager and all the employees of the store that certain flowers displayed on a shelf at the front of the store are not to be sold on a particular day. That same day, a customer purchases those flowers. Which of the following is true?
Answer Options:
A. The sale was valid because although the employees and the manager violated their express authority, in the eyes of the customer, they had apparent authority to sell the flowers.
B. The sale is valid because the employees and the manager were exercising their express authority.
C. The sale is valid because those flowers were not for sale.
Correct Answer
A. The sale was valid because although the employees and the manager violated their express authority, in the eyes of the customer, they had apparent authority to sell the flowers.
Answer:
Question: Which of the following statements is CORRECT?
A. Once a disadvantage of zero coupon bonds is that the issuing firm cannot realize any tax savings from the use of debt until the bonds mature.
B. Other things being constant, a callable bond should have a lower yield to maturity than a noncallable bond.
C. Once a firm declares bankruptcy, it must be liquidated by the trustee, who uses the proceeds to pay bondholders, unpaid wages, taxes, and legal fees.
D. Income bonds must pay interest only if the company earns the interest. Thus, these securities cannot bankrupt a company prior to their maturity, and this makes them safer to the issuing corporation than “regular” bonds.
E. A firm with a sinking fund that gives it the choice of calling the required bonds at par or buying the bonds in the open market would generally choose the open market purchase if the coupon rate exceeded the going interest rate.
Answer:
Question: When Asher was sixteen, he purchased a motorcycle that he financed entirely with the motorcycle dealer. The monthly payment was $250. After Asher turned 18, he continued to make the monthly payments. Just before Asher turned 19, he was in an accident and totaled the motorcycle. Asher then disaffirms the contract. What is the likely outcome?
Answer Options:
The contract will be disaffirmed because Asher was a minor when the contract was consummated.
The contract will not be disaffirmed because it became enforceable when Asher purchased the motorcycle.
The contract will be disaffirmed because motorcycles are dangerous.
The contract will not be disaffirmed because by making payments after he became an adult, Asher affirmed the contract.
Answer: The contract will not be disaffirmed because by making payments after he became an adult, Asher affirmed the contract.
Question: A corporation’s Articles of Incorporation must be filed with which of the following?
U.S. Congress
Articles of Incorporation do not need to be filed.
With the Secretary of State – Corporate Division of the state in which the corporation is incorporated.
The governor’s office in the state in which the corporation is incorporated.
Answer: With the Secretary of State – Corporate Division of the state in which the corporation is incorporated.
Question: Which of the following statements is CORRECT?
Answer Options:
a. For a project with normal cash flows, any change in the WACC will change both the NPV and the IRR.
b. To find the MIRR, we first compound cash flows at the regular IRR to find the TV, and then we discount the TV at the WACC to find the PV.
Answer: a
Question: On a hot day, Fernando wanders around Florence asking everybody he sees whether they know of a good Italian restaurant. Finally, he happens upon a museum dedicated to Italian cuisine and enters it to take one of the “water bottles” in the middle of the main floor of the museum. At the table, it says “take one.” Without buying a ticket, Fernando takes the water bottle and leaves the museum. Which of the following is true?
Answer Options:
Fernando is entitled to enter because the museum is open to the general public.
Fernando does not have a license to enter the museum.
Fernando can take the water bottle as long as he leaves immediately after taking a promotional item.
Fernando has an easement to enter the museum.
Answer: Fernando is entitled to enter because the museum is open to the general public.
Question: Which of the following is the correct sequence of events for muscle contractions?
Answer Options:
a) neurotransmitter release, muscle cell action potential, motor neuron action potential, release of calcium ions from SR, sliding of myofilaments, ATP-driven power stroke
b) neurotransmitter release, motor neuron action potential, muscle cell action potential, release of calcium ions from SR, ATP-driven power stroke
Answer: b) neurotransmitter release, motor neuron action potential, muscle cell action potential, release of calcium ions from SR, ATP-driven power stroke