Business Law Review for
State Test
At the bottom of the federal court system are
the federal
A.Small claims courts
B.District courts
C.Municipal courts
D.Appellate courts
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A grand jury hears evidence to determine
A.Guilt or innocence of the defendant
B.Sentencing of the defendant
C.Whether someone must stand trial
D.The arraignment
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The unlawful killing of one human being by
another, without malice or aforethought, is
A.Justifiable homicide
B.First-degree murder
C.Second-degree murder
D.Manslaughter
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In a criminal proceeding, the government is
referred to as the
A.Defendant
B.Offender
C.Prosecutor
D.Protagonist
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D.
A contract that amounts to nothing and has no
legal effect is
A.Unenforceable
B.Voidable
C.Void
D.Unilateral
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D.
If a valid offer is met with valid acceptance, the
result is
A.Misrepresentation
B.Genuine agreement
C.Legality
D.Capacity
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D.
Threats that cause a person to enter into a
contract without real consent would qualify as
A.Undue influence
B.Duress
C.Self defense
D.Fraud
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D.
Mutual mistake is also known as
A.Unilateral mistake
B.Bilateral mistake
C.Material mistake
D.Intentional mistake
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A fact that is important to one of the parties to
a contract is a(n)
A.Material fact
B.Unilateral fact
C.Crucial fact
D.Concealed fact
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D.
The age of majority in most states is
A.16
B.18
C.20
D.21
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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
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D.
When a minor disaffirms a contract, the
merchandise received upon entering the contract
should be
A.Undamaged
B.Returned
C.Paid for
D.Ratified
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D.
Before a guardian is appointed, a mentally
impaired person’s contracts are
A.Voidable
B.Binding
C.Void
D.Disaffirmed
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D.
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
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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
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D.
Wrongful failure to perform a promise set forth
in a contract is
A.Perjury
B.Voidance of contract
C.Breach of contract
D.Misrepresentation
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D.
Oral statements made before signing a written
contract are not admissible as evidence under the
A.Doctrine of equitable estoppel
B.Statute of frauds
C.Parol evidence rule
D.Written evidence act
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When a contract ends, it is said to be
A.Discharged
B.Illusory
C.Tendered
D.Avoided
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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.Sale
C.Delivery
D.Transfer
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The right of ownership to goods is known as
A.Risk of loss
B.Title
C.Identified goods
D.Bill of lading
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The transfer of all goods owned by a business
is known as a
A.Forced sale
B.Shipment contract
C.Total transfer
D.Bulk transfer
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D.
Manufacturers and sellers are accountable for
injuries caused by unsafe or defective under the
principle of
A.Warranty
B.Caveat emptor
C.Fraudulent misrepresentation
D.Product liability
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A guarantee of quality imposed by law and not
in writing is a(n)
A.Implied warranty
B.Limited warranty
C.Oral warranty
D.Express warranty
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D.
An agent’s obligation to deal honestly with
another party is
A.Mutual agreement
B.Good faith
C.Habeas corpus
D.Implied authority
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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 partners
D.Creditors other than partners
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A corporation organized for the purpose of
making money is a(n)
A.Stock corporation
B.Profit corporation
C.Public corporation
D.Nonprofit corporation
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D.
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 statutes
D.Administrative law
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A major crime punishable by imprisonment or
death is
A.Felony
B.Misdemeanor
C.Larceny
D.Robbery
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Failure of the defendant to provide the plaintiff
a required degree of care
A.Breach of duty
B.Proximate cause
C.Contributory negligence
D.Assumption of risk
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D.
Proposal by one party to another party to
enter into a contract
A.Offer
B.Acceptance
C.Capacity
D.Consideration
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Taking back of an offer by the offeror
A.Implied contract
B.Counteroffer
C.Revocation
D.Rejection
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Legal ability to enter a contract
A.Capacity
B.Majority
C.Emancipated
D.Ratify
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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.Emancipated
D.Minority
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D.
Consideration that took place before a
contract was made
A.Gratuitous
B.Illusory promise
C.Past consideration
D.Preexisting duty
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The exchange of benefits and detriments by
parties to an agreement
A.Gratuitous
B.Consideration
C.Benefit
D.Unconscionable
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D.
False statements under oath in court
A.Perjury
B.Statute of frauds
C.Parol of evidence rule
D.Equitable estoppel
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D.
Original versions of a written contract given to
each party
A.Memorandum
B.Real property
C.Parol of evidence rule
D.Duplicate originals
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Land and anything permanently attached to it
A.Breach of contract
B.Real property
C.Duplicate originals
D.Goods
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A written statement evidencing the transfer of
personal property from one person to another
A.Firm offer
B.Bill of sale
C.FOB
D.Electronic signature
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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
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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 warranty
B.Warranty of title
C.Privity of contract
D.Duty to notify
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D.
The relationship that exists between an agent
and a principal
A.Agency
B.Independent contractor
C.Agency by estoppel
D.Ratification
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The subsequent approval of an act that
previously has not been binding.
A.Rescission
B.Ratification
C.Dissolution
D.Tender
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Legal detachment or breaking off of a
partnership
A.Partnership by proof of existence
B.Partnership by estoppel
C.Dissolution
D.Tenancy in partnership
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D.
Profits distributed to the shareholders
A.Share
B.Articles of incorporation
C.Certificates of incorporation
D.Dividends
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Application for incorporation of a business that
describes a corporation’s organization, powers, and
authority
A.Share
B.Articles of incorporation
C.Certificates of incorporation
D.Common stock
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Single unit of ownership of a corporation
A.Share
B.Articles of incorporation
C.Certificates of incorporation
D.Dividends
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B.
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Single unit of ownership of a corporation
A.Share
B.Articles of incorporation
C.Certificates of incorporation
D.Dividends
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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
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To “let the decision stand” is
A.Stare decisis
B.Jurisdiction
C.Civil law
D.Statutes
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The elements of a tort are
A.Duty, breach, injury, causation
B.Duty, breach, injury, criminal intent
C.Duty, intent, negligence, strict liability
D.Duty, breach, criminal intent
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What are the three ways to resolve a dispute
A.Sue, friend, verdict
B.Enforce, police, contract
C.Litigate, arbitrate, mediate
D.Litigate, deliberate, judgment
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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 sent
C. Twenty-four hours after it is sent to allow it to
be received
D.When the written agreement has been signed
by both parties
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