1. Business Law Review for State Test

2. At the bottom of the federal court system are the federal A. Small claims courts B. District courts C. Municipal courts D. Appellate courts

3. 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

4. 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

5. In a criminal proceeding, the government is referred to as the A. Defendant B. Offender C. Prosecutor D. Protagonist

6. A contract that amounts to nothing and has no legal effect is A. Unenforceable B. Voidable C. Void D. Unilateral

7. If a valid offer is met with valid acceptance, the result is A. Misrepresentation B. Genuine agreement C. Legality D. Capacity

8. 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

9. Mutual mistake is also known as A. Unilateral mistake B. Bilateral mistake C. Material mistake D. Intentional mistake

10. 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

11. The age of majority in most states is A. 16 B. 18 C. 20 D. 21

12. A minor who claims to be over the age of majority commits A. Fraud B. Misrepresentation C. Extortion D. Larceny be false pretenses

13. When a minor disaffirms a contract, the merchandise received upon entering the contract should be A. Undamaged B. Returned C. Paid for D. Ratified

14. Before a guardian is appointed, a mentally impaired person’s contracts are A. Voidable B. Binding C. Void D. Disaffirmed

15. 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

16. 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

17. Wrongful failure to perform a promise set forth in a contract is A. Perjury B. Voidance of contract C. Breach of contract D. Misrepresentation

18. 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

19. When a contract ends, it is said to be A. Discharged B. Illusory C. Tendered D. Avoided

20. 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

21. The right of ownership to goods is known as A. Risk of loss B. Title C. Identified goods D. Bill of lading

22. 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

23. 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

24. 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

25. An agent’s obligation to deal honestly with another party is A. Mutual agreement B. Good faith C. Habeas corpus D. Implied authority

26. 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

27. A corporation organized for the purpose of making money is a(n) A. Stock corporation B. Profit corporation C. Public corporation D. Nonprofit corporation

28. 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

29. A major crime punishable by imprisonment or death is A. Felony B. Misdemeanor C. Larceny D. Robbery

30. 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

31. Proposal by one party to another party to enter into a contract A. Offer B. Acceptance C. Capacity D. Consideration

32. Taking back of an offer by the offeror A. Implied contract B. Counteroffer C. Revocation D. Rejection

33. Legal ability to enter a contract A. Capacity B. Majority C. Emancipated D. Ratify

34. Status of a person who has reached the age at which full civil rights are granted A. Capacity B. Majority C. Emancipated D. Minority

35. Consideration that took place before a contract was made A. Gratuitous B. Illusory promise C. Past consideration D. Preexisting duty

36. The exchange of benefits and detriments by parties to an agreement A. Gratuitous B. Consideration C. Benefit D. Unconscionable

37. False statements under oath in court A. Perjury B. Statute of frauds C. Parol of evidence rule D. Equitable estoppel

38. Original versions of a written contract given to each party A. Memorandum B. Real property C. Parol of evidence rule D. Duplicate originals

39. Land and anything permanently attached to it A. Breach of contract B. Real property C. Duplicate originals D. Goods

40. 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

41. All things that are moveable such as clothing, books, pens, food, car, etc. A. Sale B. Price C. Goods D. Future goods

42. 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

43. The relationship that exists between an agent and a principal A. Agency B. Independent contractor C. Agency by estoppel D. Ratification

44. The subsequent approval of an act that previously has not been binding. A. Rescission B. Ratification C. Dissolution D. Tender

45. Legal detachment or breaking off of a partnership A. Partnership by proof of existence B. Partnership by estoppel C. Dissolution D. Tenancy in partnership

46. Profits distributed to the shareholders A. Share B. Articles of incorporation C. Certificates of incorporation D. Dividends

47. 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

48. Single unit of ownership of a corporation A. Share B. Articles of incorporation C. Certificates of incorporation D. Dividends

49. Single unit of ownership of a corporation A. Share B. Articles of incorporation C. Certificates of incorporation D. Dividends

50. 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

51. To “let the decision stand” is A. Stare decisis B. Jurisdiction C. Civil law D. Statutes

52. 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

53. What are the three ways to resolve a dispute A. Sue, friend, verdict B. Enforce, police, contract C. Litigate, arbitrate, mitigate D. Litigate, deliberate, judgment

54. 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