#1
Which of the following is a characteristic of a corporation?
Limited liability of owners
ExplanationCorporations provide limited liability, protecting owners' personal assets.
#2
What is the main purpose of contract law?
To regulate the creation and enforcement of agreements
ExplanationContract law governs the formation and enforcement of agreements between parties.
#3
Which of the following is NOT a type of intellectual property?
Contract
ExplanationIntellectual property includes patents, trademarks, copyrights, but not contracts.
#4
Which of the following is a key characteristic of a partnership?
Unlimited liability of owners
ExplanationPartnerships involve unlimited personal liability for their owners.
#5
Which of the following is a characteristic of a sole proprietorship?
Unlimited liability of the owner
ExplanationSole proprietorships entail unlimited personal liability for the owner.
#6
Which of the following is a primary source of law?
Judicial decisions
ExplanationJudicial decisions set legal precedents and contribute to the development of law.
#7
What is the 'doctrine of ultra vires' in corporate law?
The doctrine that limits a corporation's actions to those within its stated purposes
ExplanationUltra vires restricts corporations to actions specified in their charter.
#8
What is the principle of 'caveat emptor'?
Let the buyer beware
ExplanationCaveat emptor places responsibility on the buyer to beware and assess goods or services.
#9
What is the purpose of the Uniform Commercial Code (UCC) in the United States?
To harmonize state laws on commercial transactions
ExplanationThe UCC aims to standardize and simplify commercial laws across U.S. states.
#10
What is the difference between a tort and a crime?
A tort is a civil wrong, while a crime is a criminal wrong
ExplanationTorts involve civil wrongs, while crimes are offenses against the state.
#11
What is the purpose of antitrust laws?
To prevent unfair business practices and promote competition
ExplanationAntitrust laws aim to prevent unfair practices and maintain market competition.
#12
What is the purpose of the Securities Act of 1933 in the United States?
To regulate the sale of securities
ExplanationThe Securities Act of 1933 regulates the issuance and sale of securities in the U.S.
#13
Which of the following is NOT a requirement for a valid contract?
Equal consideration
ExplanationWhile consideration is vital, equal consideration is not a requirement for a valid contract.
#14
Which of the following is a remedy for breach of contract?
Specific performance
ExplanationSpecific performance compels a party to fulfill the terms of a contract.
#15
What is the 'statute of frauds'?
A law that requires certain contracts to be in writing to be enforceable
ExplanationThe statute of frauds mandates written form for enforceability of specific contracts.
#16
Which of the following is true about intellectual property rights?
They include patents, trademarks, and copyrights
ExplanationIntellectual property rights cover creations like patents, trademarks, and copyrights.
#17
What is the difference between a contract assignment and a contract delegation?
An assignment transfers both rights and duties, while a delegation transfers only duties
ExplanationAssignments transfer both rights and duties, while delegations transfer only duties in contracts.
#18
What is the 'parol evidence rule'?
A rule that prohibits parties from introducing oral evidence to vary the terms of a written contract
ExplanationThe parol evidence rule restricts the introduction of oral evidence to alter written contract terms.
#19
What is the difference between a void contract and a voidable contract?
A void contract is valid until one party chooses to void it, while a voidable contract is invalid from the beginning
ExplanationVoid contracts become invalid upon one party's choice, while voidable contracts are initially flawed.