1. A threat of physical force used to cause another to enter a contract is known as:
A. Fraud
B. Undue influence
C. Duress
D. Bribery
2. Dropping your clothes off at the dry cleaners is an example of what?
A. Barter
B. E-commerce
C. Transfer of ownership
D. Bailment
3. Which type of government health insurance is part of the federal Social Security program and covers most individuals that are age 65 or older?
A. Medicaid
B. Medigap
C. Medicare
D. Medinsure
4. A temporary or permanent court order that prevents a party from performing an act is known as what?
A. Covenant
B. Injunction
C. Remedy
D. Novation
5. An innocent misrepresentation of fact violates which contract element?
A. Genuine Agreement
B. Capacity
C. Consideration
D. Legality
6. Which of the following is NOT a valid reason for divorce?
A. Adultery
B. Desertion
C. Alcohol or drug addiction
D. Financial
7. A contractual agreement in which one party receives something of value now and agrees to pay the lender in the future is known as what?
A. Insurance
B. Credit
C. Usury
D. Equity
8. The USFL won is lawsuit against the NFL and was awarded $1. This would represent which type of money damages?
A. Nominal
B. Speculative
C. Punitive
D. Actual
9. Stu and Nancy move into their new house despite a few minor details that need to be fixed. The contract was discharged based on what type of performance?
A. Complete
B. Time
C. Tender
D. Substantial
10. The willful or malicious damage to property either private or public.
A. Arson
B. Trespassing
C. Vandalism
D. Burglary
11. Local or municipal laws are known as:
A. Statutes
B. Acts
C. Codes
D. Ordinances
12.
An implied warranty that is a well established custom or practice among people in specific trades or businesses (such as horse trading) is known as what?
A. Usage of Trade
B. Warranty of Merchantability
C. Puffery
D. Guarantee
13. The amount of money the policyholder must pay before the insurance company will pay a claim is known as the:
A. Premium
B. Exclusion
C. Rider
D. Deductible
14. Pulling up to a full service gas pump creates what type of contract?
A. Express
B. Written
C. Voidable
D. Implied

15. How is a contract terminated when the offeree refuses the offer?
A. Referral
B. Refusal
C. Rejection
D. Revocation
16. Erik has a big interview tomorrow. When he picks up his suit from the dry cleaners, they have ruined it. He decided to sue the dry cleaners based on the job he would have gotten if he could have worn is suit. What type of money damages does this represent?
A. Nominal
B. Punitive
C. Compensatory
D. Speculative
17. The exchange of benefits and detriments by parties to an agreement?
A. Forbearance
B. Accord
C. Promissory Estoppel
D. Consideration
18. Which of the following is NOT one of the factors that is allowed to be used to establish creditworthiness according the Equal Credit Opportunity Act?
A. Income
B. Debts
C. Gender
D. Credit History
19. Judges traveling the countryside in circuits deciding cases, helped to establish which legal system?
A. Case law
B. Statutory law
C. Napoleonic law
D. Common law
20. Termination of an offer may occur in which of the following ways:
A. Counteroffer
B. Revocation
C. Expiration of time
D. All of the above
21. Which rule gives consumers three business days to cancel most contracts made with door to door salespersons?
A. Change of Heart
B. Fraudulent Mispresentation
C. Cooling Off
D. Pre-notification Negative Option
22. The power of the government to take private property for public use if it is for the public good is known as what?
A. Dedication
B. Eminent Domain
C. Mutual Benefit Bailment
D. Authentication
23.
Which law deals with children’s toys that may have dangerous parts?
A. Food, Drug and Cosmetic Act
B. Uniform Commercial Code
C. Consumer Product Safety Act
D. Parol Evidence Law
24. Which branch of government is responsible for creating laws?
A. Executive
B. Federal
C. Legislative
D. Judicial
25. What is the top law enforcement agency in North
Carolina?
A. State Highway Patrol
B. State Bureau of Investigations
C. Sheriff
D. CMPD
26. Being disrespectful, using profanity, or not listening to a judge’s orders during a trial can result in what charge?
A. Perjury
B. Obstruction of justice
C. Contempt of court
D. Bribery
27. The amount of money the policyholder must pay for insurance coverage is called what?
A. Deductible
B. Premium
C. Equity
D. Claim
28. Getting a parking ticket is an example of what?
A. Felony
B. Misdemeanor
C. Infraction
D. Ordinance
29. What type of auto insurance pays if you are struck by someone who does not have insurance?
A. Comprehensive
B. Underinsured Motorist
C. Property Damage
D. Uninsured Motorist
30. Not doing something you have the legal right to do is known as what?
A. Usury
B. Forbearance
C. Gratuitous
D. Unconscionable

31. Brittany chose not to fulfill one of the parts of a contract. What did she do to the contract?
A. Voided
B. Rejected
C. Performed
D. Breached
32. How many justices sit on the US Supreme Court?
A. 5
B. 7
C. 9
D. 15
33. AFLAC is a company that provides which type of supplemental health insurance?
A. Dental
B. Vision
C. Medigap
D. Disability Income
34. What is the legal proceeding for a person or business unable to pay an outstanding debt?
A. Credit
B. Bankruptcy
C. Liquidation
D. Usury
35. What happens when an offeree requests to change the terms of an offer?
A. Option
B. Release
C. Extension
D. Counteroffer
36. The act of obtaining credit, assets, money, funds, or securities from a financial institution through false pretenses is known as what?
A. Larceny
B. Bank Fraud
C. Credit Theft
D. Embezzlement
37. Rob finds an old baseball card of Honus Wagner. He has never heard of him and agrees to sell the card for $20.
He later finds out that the card is worth $2.5 M. If taken to court, this contract could be called what?
A. Gratuitous
B. Unconscionable
C. Illusory
D. Forbearance
38. What is the set of laws designed to make trade between states easier?
A. Universal Business Contracts
B. Interstate Commerce Codes
C. Uniform Commercial Code
D. United Statutory Codes
39. Replacing one party to a contract with a new one, but keeping the rest of the terms of the contract the same is known as what?
A. Delegation
B. Novation
C. Assignment
C. Illusory
40. Mark and Jane are purchasing a new home. What law requires that their contract be in writing?
A. Parol Evidence Rule
B. Best Evidence Rule
C. Statute of Limitations
D. Statute of Frauds
41. A tort that results when one person carelessly injures another.
A. Battery
B. Negligence
C. Conversion
D. Defamation
42. Which independent federal agency pays a depositor up to $250,000 per account, if an insured bank fails?
A. Federal Trade Commission
B. Federal Reserve
C. Federal Deposit Insurance Corporation
D. US Treasury Department
43. The current market value of a home minus the remaining mortgage balance is known as what?
A. Home Equity
B. Credit
C. Insurance
D. Usury
44. What group is responsible for determining if probable cause exists for a case to go to trial?
A. Jury
B. Court of Appeals
C. Grand Jury
D. Prosecutor
45. In which type of group managed health insurance will a patient need to receive most or all of their health care from a single provider?
A. Preferred Provider Organization
B. Health Maintenance Organization
C. Medicare
D. Medicaid
46. Which credit law requires that credit applicants under the age of 21 have a cosigner?
A. Truth in Lending Act
B. Equal Credit Opportunity Act
C. Fair Credit Billing Act
D. Credit Card Act of 2009

47. Tyler buys a beach house from Donny. A tidal wave destroyed the house the previous day. What type of bilateral mistake would this represent?
A. Impossibility of Performance
B. Subject Matter
C. Existing Law
D. None of the above
48. Lonny is a police officer. His neighbor is robbed one night. Lonny promises to find the criminal if his neighbor washes Lonny’s car for a month. There is no consideration in this agreement based on what?
A. Past performance
B. Promissory Estoppel
C. Existing Duty
D. Nominal
49. Which contract MUST be in writing?
A. The purchase of a bicycle for $489
B. A proposal for marriage
C. The sale of an iPod to a minor
D. An agreement to build a house over a period of 18 months
50. The illegal act of having more than two spouses at the same time is known as what?
A. Affinity
B. Consanguinity
C. Bigamy
D. Polygamy
51. Which of the following is NOT one of the 3 credit bureaus?
A. TransUnion
B. Experian
C. Equifax
D. Equinon
52. Charging more than the maximum legal interest rate is known as:
A. Usury
B. Consideration
C. Illusory
D. Conspiracy
53. Which credit law says that a person’s creditworthiness or financial responsibility should be based only on factors such as income and credit history?
A. Fair Credit Billing Act
B. Usury
C. Credit Card Act of 2009
D. Equal Credit Opportunity Act
54. If Thomas agrees to William’s proposal to sell his motorcycle, this is an example of what contract element?
A. Consideration
B. Acceptance
C. Genuine Agreement
D. Revocation
55. Which component of auto insurance would cover damage caused by a hailstorm?
A. Collision
B. Bodily Injury
C. Comprehensive
D. Property Damage
56. Which of the following is NOT one of the elements of an ethical decision?
A. About right or wrong action
B. Reasoned
C. Law
D. Impartial
57. Lebron James has two years remaining on his original contract. James and the team agree on a new contract to replace the original. How was the original contract discharged?
A. Complete
B. Statute of Limitations
C. Accord and Satisfaction
D. Mutual Release
58. John sells his business to Steve. In the contract,
John agrees not to open a similar business within 10 miles for the next year. What type of agreement is this?
A. Promissory Estoppel
B. Restrictive Covenant
C. Economic Duress
D. Voidable Contract
59. Which of the following is NOT considered to be real property?
A. Land
B. Building
C. Minerals below the surface
D. Boat
60. Acceptance which has not changed the terms of the original offer in any way is known as:
A. Counteroffer
B. Voidable contract
C. Mirror image rule
D. Bilateral contract
61. Which form of bankruptcy allows family farmers and fishing business owners to recover from debt?
A. Chapter 7
B. Chapter 11
C. Chapter 12
D. Chapter 13
62. In most states, the legal age of majority is:
A. 16
B. 18
C. 20
D. 21

63. Caveat emptor is Latin for:
A. “Protect your property”
B. “Buyer beware”
C. “Warranty”
D. “Ownership rights”
64. Which of the following is an example of an enforceable agreement without consideration?
A. Making a pledge to a charity
B. Lifeguard rescuing a drowning victim
C. Giving a gift
D. Promising to drive the speed limit
65. Which is a type of unilateral mistake?
A. Destruction of subject matter
B. Signing a contract without reading it
C. Overcoming one’s free will
D. Impossibility of performance
66. The charged person is brought before a judge to determine if there is probable cause to have the case heard by a grand jury during which phase of the trial proceedings?
A. Arrest
B. Bail hearing
C. Complaint
D. Arraignment
67. Which type of life insurance pays fractional amounts of the policy if the insured loses a bodily appendage or sight because of an accident?
A. Term
B. Variable
C. Dismemberment
D. Whole
68. The Food, Drug, and Cosmetic Act was passed in
1903 after which president read “The Jungle” by Upton
Sinclair?
A. Franklin Roosevelt
B. Teddy Roosevelt
C. Calvin Coolidge
D. Woodrow Wilson
69. The US Court of Appeals consists of how many courts?
A. 9
B. 12
C. 13
D. 15
70. Which of the following is NOT a requirement of a will?
A. Must be of sound mind
B. Must be in writing, signed, and properly witnessed
C. Must leave possession to your family
D. Must be of legal age
71. What credit law requires creditors to provide consumers with the terms and cost of credit?
A. Usury
B. Truth in Lending Act
C. Equal Credit Opportunity Act
D. Fair Credit Reporting Act
72. Judicial review was established by the precedent set in which court case?
A. Fisher vs. Adams
B. Marbury vs. Madison
C. Thompson vs. Lincoln
D. Johnson vs. Washington
73. A promise may be enforceable without consideration under what doctrine?
A. Forbearance
B. Past consideration
C. Promissory Estoppel
D. Charitable pledges
74. What is the 1st level of the federal court system?
A. Superior Court
B. District Court
C. Criminal Court
D. Magistrate’s Court
75. Using a computer to disrupt a part of the national electronic infrastructure is known as what?
A. Cybervandalism
B. Cyberterrorism
C. Cyberpiracy
D. Cyberspoofing
76. To be considered an offer, it must be:
A. a contract which follows the UCC, in writing, and must specify an action
B. unconditional, follow the mirror image rule, and include a counteroffer
C. made seriously, definite and certain, and communicated to the offeree
D. an invitation to negotiate, an invitation to deal, and an invitation to trade
77. What area does SBI NOT have original jurisdiction over?
A. Drug investigations
B. Election law violations
C. Arson investigations
D. Robbery investigation
78. Which circumstance would make a minor’s contract legal?
A. Getting a driver’s license
B. Joining the military
C. Buying a car
D. All of the above

79. The purpose of this source of law is to regulate certain activities for the benefit of the public.
A. Administrative law
B. Case law
C. Constitutional law
D. Statutory law
80. What is another name for the Law of Precedent?
A. Civil law
B. Procedural law
C. Case law
D. Jury law
81. What type of state laws set the maximum amount of interest that can be charged for a loan?
A. Fair Credit Billing Act
B. Fair Credit Reporting Act
C. Equal Credit Opportunity Act
D. Usury Laws
82. A gift of personal property made by a will is known as what?
A. Dedication
B. Estate
C. Bequest
D. Honorarium
83. A fan goes to a hockey game and is hit in the head by a puck. What defense could the owners of the stadium/team use if sued for negligence?
A. Duty
B. Comparative negligence
C. Contributory negligence
D. Assumption of risk
84. Most advertisements in newspapers, magazines, and on the internet are considered:
A. Offers
B. Unilateral contracts
C. Invitations to negotiate
D. Misrepresentations
85. This is a court order that prevents a party from performing a specific act and may be temporary or permanent.
A. Defamation
B. Injunction
C. Arbitration
D. Mediation
86. Which government agency protects consumers’ rights to attain, use, and maintain credit by monitoring and enforcing credit laws?
A. Federal Trade Commission
B. United Economy Agency
C. Federal Economic Commission
D. Federal Trade Agency
87. Why are ethics often disregarded when making business decisions?
A. Common sense
B. Profit
C. Negligence
D. Golden rule
88. Jamison sold a watch he owned. What term is used to identify this transaction?
A. Benefit
B. Counteroffer
C. Forbearance
D. Detriment
89. An opinion of a salesperson is known as what?
A. Puffery
B. Salesmanship
C. Warranty
D. Guarantee
90. Which of the following is NOT one of the major exclusions to a homeowner’s insurance policy?
A. Water Damage
B. Storm Damage
C. Neglect
D. Power Failure
91. Which type of life insurance provides lifetime protection, accrues a cash value, and has premiums that remain unchanged during the insured’s lifetime?
A. Term
B. Disability Income
C. Whole
D. Universal
92. The obligation to use a reasonable standard of care to prevent injury to others
A. Assumption of risk
B. Conversion
C. Duty
D. Damages
93. Provisions in an insurance policy eliminating coverage for certain risks or limiting coverage are known as what?
A. Perils
B. Claims
C. Exclusions
D. Riders
94. Which court is typically responsible for overseeing issues dealing with wills and estates?
A. District
B. Probate
C. Family
D. Magistrate