Question: Which of the following best describes the purpose of criminal statutes?
Answer Options:
To allow private citizens to bring criminal defendants to justice.
To punish wrongdoers who commit torts.
To allow victims of torts to prosecute cases they lose in civil courts in criminal court.
To provide a just and safe environment for all of society by imposing penalties on those who commit crimes.
Answer: To provide a just and safe environment for all of society by imposing penalties on those who commit crimes.
Question: Which of the following requires filing with a governmental agency in order to establish ownership of intellectual property?
A patent.
A trademark.
None of the alternatives require a governmental filing.
A copyright.
Answer: A patent.
Question: The right of eminent domain is which of the following?
A federal statutory right.
A state statutory right.
A common law right.
A constitutional right.
Answer: A constitutional right.
Question: When is a franchisee required or not required to use the franchisor’s logo?
Answer Options:
Dependent on state law.
Only required pursuant to the franchisor’s agreement.
Dependent on federal law.
None of the alternatives are correct.
Answer: Only required pursuant to the franchisor’s agreement.
Question: The purpose of a Uniform Code such as the Uniform Commercial Code is
Answer Options:
A compilation of provisions related to commercial transactions that states can adopt either in whole, in part or with modifications.
A set of regulations that states are required to adopt without change.
To be incorporated into the U.S. Code as federal statutory law.
A set of federal regulations.
Answer: A compilation of provisions related to commercial transactions that states can adopt either in whole, in part or with modifications.
Question: Under normal conditions, which of the following would be most likely to increase the coupon rate required for a bond to be issued at par?
a. Adding additional restrictive covenants that limit management’s actions.
b. Adding a call provision.
c. The rating agencies change the bond’s rating from Baa to Aaa.
d. Making the bond a first mortgage bond rather than a debenture.
e. Adding a sinking fund.
Answer Options:
a. False
b. True
c. False
d. False
e. False
Answer: b. True
Question: Mollie and Miranda enter into a contract by which Miranda will purchase Mollie’s vacant land in St. Petersburg for $100,000 in order to build a house. Prior to signing the contract, Miranda makes a $20,000 down payment to Mollie who is aware of Miranda’s plans to build. After building has commenced, Mollie refuses to sign the contract and does not transfer the property to Miranda. Miranda sues. What is the likely outcome?
Answer Options:
Mollie will win because she had not yet signed the contract.
Mollie will win because she did not yet receive the full amount of the purchase price.
Miranda will win because the parties acted on an equitable remedy.
Answer: Miranda will win because the parties acted on an equitable remedy.
Question: The difference between minimum contacts and venue is which of the following?
Answer Options:
As long as there is either minimum contacts or venue, the case can be heard.
There is no difference between venue and minimum contacts.
Venue is required to establish jurisdiction. Minimum contacts is used to determine which of several courts with jurisdiction should hear the case.
Answer: Venue is required to establish jurisdiction. Minimum contacts is used to determine which of several courts with jurisdiction should hear the case.
Question: A cardiologist agrees to purchase a coin collection from her patient who is recovering from a heart attack. Which of the following is true?
Because the cardiologist has a fiduciary relationship with her patient, there is a presumption of undue influence that must be overcome.
The relationship between the parties has no impact on the enforceability of the contract.
There is no difference between their contract and any other contract.
Because the cardiologist has a fiduciary relationship with her patient, there is a presumption of duress.
Answer: Because the cardiologist has a fiduciary relationship with her patient, there is a presumption of undue influence that must be overcome.
Question: Which of the following statements is CORRECT?
a. If a coupon bond is selling at par, its current yield equals its yield to maturity.
b. If a coupon bond is selling at a discount, its price will continue to decline until it reaches its par value at maturity.
c. If interest rates increase, the price of a 10-year coupon bond will decline by a greater percentage than the price of a 10-year zero coupon bond.
d. If a bond’s yield to maturity exceeds its annual coupon, then the bond will trade at a premium.
e. If a coupon bond is selling at a premium, its current yield equals its yield to maturity.
Answer Options:
a. True
b. False
c. False
d. False
e. False
Answer: a. True
Question: Duberstein, a resident of Iowa, comes to Florida to attend a state university. Finding out that the university tuition is greater for non-Florida residents, he vows to sue the state in violation of his Constitutional rights. The likely outcome is which of the following?
Answer Options:
None of the alternatives are correct.
Duberstein wins because charging non-Florida residents higher tuition than Florida residents violates the privileges and immunities clause of the U.S. Constitution.
Duberstein loses due to the supremacy clause of the U.S. Constitution.
Duberstein loses because charging non-Florida residents higher tuition than Florida residents does not violate the privileges and immunities clause of the U.S. Constitution.
Answer: Duberstein loses because charging non-Florida residents higher tuition than Florida residents does not violate the privileges and immunities clause of the U.S. Constitution.
Question: Which of the following is true with respect to deceptive advertising by corporations?
Answer Options:
It is strictly an ethical issue that businesses should address.
It is strictly a corporate free speech issue in which the government has a strong interest to regulate to protect vulnerable individuals from fraud.
It is both an ethical issue and a corporate free speech issue.
Deceptive advertising is free market so it is neither an ethical issue or a corporate free speech issue.
Answer: It is both an ethical issue and a corporate free speech issue.
Question: Whether a franchisee is required or not required to use the franchisor’s logo is?
Dependent on state law.
Entirely required pursuant to the franchise agreement.
Dependent on federal law.
None of the alternatives are correct.
Answer: Dependent on state law.
Question: Which of the following is true with respect to personal property?
Personal property can never be converted to real property.
If real property is converted to personal property, the contract for sale must be in writing.
Intangible property is not personal property.
Some personal property can be converted to real property.
Answer: Some personal property can be converted to real property.
Question: Marketable title is which of the following?
Answer Options:
Title to real estate that can be transferred without encumbrances
Property that is sold for its true value
Property that has passed inspection
Title to property in fee simple
Answer: Title to real estate that can be transferred without encumbrances
Question: You are asked to identify which of the following as being true with respect to the principal agency relationship?
The relationship must be stated in writing.
It is a fiduciary relationship between the agent and the principal.
There must be consideration.
The principal owes no duties to the agent.
Answer: It is a fiduciary relationship between the agent and the principal.
Question: Most corporations earn returns for their stockholders by acquiring and operating tangible and intangible assets. The relevant risk of each asset should be measured in terms of its effect on the risk of the firm’s stockholders.
a. True
b. False
Answer:
Question: The difference between a bilateral and unilateral contract is which of the following?
Answer Options:
In a bilateral contract, performance by the offeree is acceptance of the offer.
There is no difference.
In a unilateral contract both the offeror and offeree make promises.
In a bilateral contract both the offeror and offeree make promises.
Answer: In a bilateral contract both the offeror and offeree make promises.
Question: Which of the following statements is CORRECT?
a. If a bond is selling at a discount to par, its current yield will be greater than its yield to maturity.
b. All else equal, bonds with longer maturities have less price risk than bonds with shorter maturities.
c. If a bond is selling at its par value, its current yield equals its capital gains yield.
d. If a bond is selling at a premium, its current yield will be less than its capital gains yield.
e. All else equal, bonds with larger coupons have less price risk than bonds with smaller coupons.
Answer Options:
a. False
b. False
c. False
d. False
e. True
Answer: e. True
Question: Under what conditions can a franchise agreement be terminated early without penalty?
If the franchisee decides to exit the business for personal reasons.
If the franchisor repeatedly fails to provide agreed-upon support services.
Only after a mutual agreement between the franchisor and franchisee.
None of the above; penalties are always applied.
Answer: If the franchisor repeatedly fails to provide agreed-upon support services.
Question: The Constitutional mandate that the courts of one state enforce out of state judgments is known as which of the following?
Answer Options:
The 10th Amendment
Full faith and credit
The supremacy clause
Privileges and immunities
Answer: Full faith and credit
Question: Which of the following describes how a partnership is taxed on income?
The partners not the partnership are taxed.
Neither the partnership nor the partners are taxed.
By choice of the partners, either the partnership or the partners are taxed.
The partnership is taxed.
Answer: The partners not the partnership are taxed.