Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Law
Q:
Under their police powers, states can regulate only public activities, such as political demonstrations.
Q:
Theoretically, Congress can regulate every commercial enterprise in the United States.
Q:
The federal government cannot regulate commerce within a state, regardless of the effect of the commerce on other states.
Q:
International law is the law of a foreign nation and varies from country to country.
Q:
Criminal law focuses on duties that exist between persons.
Q:
In most states, the courts no longer grant "equitable" remedies.
Q:
Equitable remedies include injunctions.
Q:
A court's direction to a party to do or to refrain from doing a particular act is a rescission.
Q:
A plaintiff is a person against whom a lawsuit is brought.
Q:
Equity is a branch of unwritten law that seeks to supply remedies of equal measure to the parties in a legal dispute.
Q:
A court may depart from a precedent if the court decides that the precedent should no longer be followed.
Q:
Courts never depart from precedents.
Q:
Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own rights.
Q:
Common law is a term for the law that is known to most of us.
Q:
Courts can rely on the common law as a guide to interpreting legislation.
Q:
Rules issued by administrative agencies now affect almost no aspect of a business's operations.
Q:
Administrative agencies are established to perform specific functions.
Q:
No state has adopted the Uniform Commercial Code in its entirety.
Q:
Federal statutes apply to all states.
Q:
Law includes enforceable rules governing relationships between individuals and their society.
Q:
The law establishes rights, duties, and privileges that are consistent with the values of society.
Q:
Dieter's will provides for a distribution of his assets on his death. Who will "distribute" Dieter's property, and what are the steps involved?
Q:
Patty, who is divorced, owns a house. She has no reasonable expectation of benefit from the life of Quinn, her ex-spouse, but she applies for insurance on his life anyway. She also obtains a fire insurance policy on the house, which she later sells. Five years later, Quinn dies and the house is destroyed in a fire. Can Patty obtain payment on either the death of Quinn or the loss of the house? Explain.
Q:
Mason creates a trust to prevent his son, Newt, the beneficiary, from assigning his rights to future payments of income from the trust. This is
a. a charitable trust.
b. a constructive trust.
c. a spendthrift trust.
d. an illegal trust.
Q:
Benny dies without a will, with no surviving spouse or child. Benny's survivors include his granddaughter Callie, his nephew Duncan, and his cousin Earl. In most states, his estate would pass to
a. Callie.
b. Duncan.
c. Earl.
d. the state.
Q:
Cliff dies without a will. His survivors include his spouse Dana and his two children, Efrem and Fay. Under applicable laws, Dana will probably receive
a. all of Cliff's estate.
b. none of Cliff's estate.
c. one-half of Cliff's estate.
d. one-third of Cliff's estate.
Q:
Sherman dies without a will, survived by his granddaughter Roxy and Roxy's brother Pio. Roxy and Pio are Sherman's
a. collateral heirs.
b. settlors.
c. trustees.
d. lineal descendants.
Q:
Orin creates a living trust to pass his assets, including stock in Petro Oil Company and other business investments, to his heirs. One advantage of this arrangement is that
a. income taxes do not have to be paid on trust earnings.
b. the assets are sheltered from the payment of estate taxes.
c. the assets can be transferred without going through probate.
d. the trust does not come into existence until the grantor's death .
Q:
Dyan executes her will to give "to my nephew Esau my stock in Fargo, Inc." Later, Dyan writes separately, with the same formalities required for a will, to leave the stock to her niece Ginny and cash to Esau. This writing
a. does not affect the will's gift of the stock to Esau.
b. requires a gift of the stock in equal shares to Esau and Ginny.
c. revokes the whole will, which must be redrafted.
d. revokes the will's gift of the stock to Esau.
Q:
Amelia executes a separate written instrument to amend her prior will. This separate document is
a. a codicil.
b. a holographic will.
c. a living will.
d. a nuncupative will.
Q:
Ratzo is asked to be a witness to Sade's will. Before attesting to the will,
a. Ratzo does not have to read the will or be informed of its contents.
b. Ratzo must read the will and recite its contents.
c. Sade must orally tell Ratzo of the will's contents.
d. Sade's attorney must read the will aloud to Ratzo.
Q:
Lani is asked to serve as a witness to Mona's will. To qualify, Lani must be
a. a collateral heir.
b. a lineal descendant.
c. eighteen years of age or older.
d. mentally competent.
Q:
Juli types onto a computer what she intends to be "My Will" and prints it out. Juli has capacity. "My Will" is
a. invalid.
b. valid if Juli signs it.
c. valid if Juli signs it and has three witnesses sign it.
d. valid if Juli signs it, has three witnesses sign it, and files it in a certain state office.
Q:
Lost in a canyon near Gila, Arizona, Hester writes her will in crayon, on a paper bag, while Ivan states orally how he wants his estate distributed. Most states do not permit
a. an olographic will.
b. a nuncupative will.
c. a will written on a paper bag.
d. a will written in crayon.
Q:
Gigi, a twenty-year-old, wants to execute a will before she undertakes a mountain-climbing trip on a peak in the Himalaya Mountains. In most states, the legal age for executing a will is
a. sixteen years of age.
b. eighteen years of age.
c. twenty-one years of age.
d. twenty-five years of age.
Q:
Eighty-year-old Clark exhibits confusion, forgetfulness, and disorientation. Dave, Clark's doctor, believes that the symptoms indicate dementia. Elsa, who has significant contact with Clark, believes that he is in a state of mental decline. These facts indicate
a. an urgency that Clark distribute his assets.
b. Clark's lack of capacity.
c. Dave's misdiagnosis.
d. Elsa's intent to take advantage of Clark.
Q:
According to the terms of Diego's will, specific gifts are made, and taxes and other estate expenses and debts are paid. The assets of Diego's estate that remain are most likely to be distributed
a. by codicil.
b. holographically.
c. per capita.
d. through a residuary clause.
Q:
Philomena dies without a will. A court appoints Quigley to handle the probate of Philomena's estate. The administrator of the estate is
a. Philomena's closest blood relative.
b. Philomena.
c. Quigley.
d. the court.
Q:
The assets in Hong's estate, including the value of his home on Elm Street and its contents, are insufficient to pay in full all of the gifts provided for in his will. His heirs will receive
a. full payment in order of seniority until the assets are exhausted.
b. nothingthe assets will descend to the state.
c. reduced benefits.
d. the option of distributing the assets according to their wishes.
Q:
Skyler dies after having made a valid will. Skyler has died
a. in escheat.
b. in probate.
c. intestate.
d. testate.
Q:
Garth dies without a will. The distribution of Garth's property, including his eleven forested acres near Hope, Arkansas, is prescribed by
a. a court-appointed executor.
b. federal probate statutes.
c. state intestacy laws.
d. Garth's relatives.
Q:
Speedy Shipping Corporation applies to TransInsurance Company for a fire insurance policy on Speedy's warehouse. On the application, Speedy misrepresents the age of the property to obtain a lower premium. When a fire soon destroys the warehouse, TransInsurance can
a. deny payment, because a fire destroyed Speedy's warehouse.
b. deny payment, because of Speedy's fraud in the application.
c. not deny payment, because a fire destroyed Speedy's warehouse.
d. not deny payment, because the application is not part of the policy.
Q:
Kelsey obtains a business liability insurance policy from Loyal Insurance Company for Kelsey's Framing & Art Supplies store. When an event occurs that gives rise to a claim, Loyal has a duty to
a. investigate to determine the facts.
b. file a suit against Kelsey so that a court can settle the claim.
c. find a third party on whom to impose liability.
d. refund any unearned amount of the premium.
Q:
Edy obtains a property insurance policy with First Source Insurance Company for Edy's fishing trawler. First Source can cancel the policy
a. if Edy appears as a witness in a case against First Source.
b. if Edy fails to pay the premiums.
c. if Edy makes changes that add to the trawler's value.
d. under no circumstances.
Q:
Myles obtains a property insurance policy from Nova Insurance Company for Myles's restored 1957 Chevy. Nova can cancel the policy
a. if Myles increases the risk assumed by the Nova.
b. if Myles files a claim under the policy.
c. if Myles appears as a witness in a case brought against Nova.
d. under no circumstances.
Q:
Haya obtains an insurance policy from Inviolable Insurance Corporation (IIC). IIC may cancel, or refuse to renew, the policy because of
a. Haya's appearance as a witness against IIC.
b. Haya's gender.
c. Haya's national origin.
d. none of the choices.
Q:
Kerin obtains a property insurance policy for her art collection from Lawton Insurance Company. Kerin can cancel the policy
a. at any time.
b. only at the end of a period for which a premium has been paid.
c. only if Kerin no longer has an insurable interest in the property.
d. only on advance written notice.
Q:
Isabel obtains a fire insurance policy on her home from Justice Insurance Company. The home is lost in a fire, but the parties dispute the amount of Justice's liability under an ambiguous clause in the policy. A court would most likely
a. interpret the clause against Isabel.
b. interpret the clause against Justice.
c. rewrite the clause and apply it as rewritten.
d. strike the clause from the policy.
Q:
Ginny obtains a health-insurance policy for her family from Hope Insurance Company. The policy includes an incontestability clause. Under such a clause, after a policy has been in force for a specified period or time, such as two or three years
a. Ginny cannot contest Hope's insurable interest.
b. Ginny cannot contest Hope's refusal to pay a claim under the policy.
c. Hope cannot contest Ginny's eligibility for continued coverage.
d. Hope cannot contest Ginny's statements in the application.
Q:
Root & Branch Lumber Company obtains a fire insurance policy from Statistical Insurers, Inc., on a $400,000 warehouse. The policy includes an 80-percent coinsurance clause. Root & Branch insures the property for $320,000. In a fire, the warehouse suffers $200,000 in damage. Root & Branch can recover
a. $400,000.
b. $320,000.
c. $200,000.
d. $80,000.
Q:
Rolling Transport & Storage Corporation wants to insure its warehouse to obtain the maximum possible recovery for the lowest possible premium. To obtain the maximum recovery under a coinsurance clause, the percentage of the value of the property that should be insured is
a. 80 percent.
b. 90 percent.
c. 100 percent.
d. 120 percent.
Q:
Donald applies for a life insurance policy with Equity Insurance Company through Fletch, an agent who works for Equity. Donald pays the initial premium. Fletch writes a binder, which
a. acknowledges the application and promises to consider it.
b. attests to the truth of each statement in the application
c. evidences receipt of the payment of the initial premium.
d. indicates that a policy is pending and states its essential terms.
Q:
Doctors Medical Associates obtains an insurance policy that protects its members against negligence claims by their patients. This is
a. casualty insurance.
b. fidelity or guaranty insurance.
c. malpractice insurance.
d. workers' compensation insurance.
Q:
Feta is a partner in the game design firm GR8 Games, Inc., which obtains key-person life insurance on Feta in the amount of $1 million from Halo Insurance Company. Feta quits GR8 Games to join Icy Applications, Inc. Feta dies. Under the principle of insurable interest, Halo must pay the $1 million to
a. Feta's spouse Jo.
b. GR8 Games.
c. Icy Applications.
d. no one.
Q:
Shingle & Tile Roofing Contractor, LLC, obtains an insurance policy against liability for injuries or losses sustained by employees during the course of their employment. The policy covers claims not covered by workers' compensation insurance. This is
a. casualty insurance.
b. fidelity or guaranty insurance.
c. key-person life insurance.
d. employer's liability insurance.
Q:
Reno is the beneficiary of a life insurance policy on Sula's life obtained from Traditional Insurance Company. The underwriter of this policy is
a. Reno.
b. Sula.
c. Traditional.
d. the agent or broker through whom the policy was obtained.
Q:
Grace applies for a homeowners' insurance policy on her house with Heroic Insurance Company through Ian, a broker. In this transaction, Ian is
a. an agent for both parties.
b. Grace's agent, and not Heroic's agent.
c. Heroic's agent, and not Grace's agent.
d. not an agent.
Q:
Bret obtains a fire insurance policy on his rental house with Continental Insurance Company. Like all insurance, this policy is an arrangement for
a. avoiding the assumption of responsibility.
b. predicting a potential loss based on unknown factors.
c. shifting the imposition of liability.
d. transferring and allocating risk.
Q:
The trustee is the person for whose benefit a trust is held.
Q:
A constructive trust is "constructed" by a property owner to fulfill certain unique functions outside the usual bounds of a trust.
Q:
A spendthrift trust provides for a beneficiary's transfer of his or her right to future payments of trust funds.
Q:
An express trust is created or declared in explicit terms.
Q:
If no children or grandchildren survive a decedent who dies without a will, a surviving spouse is entitled to the entire estate.
Q:
A will is probated in part to establish its validity.
Q:
A divorce revokes an entire will.
Q:
To "publish" a will means to release it to the media.
Q:
A nuncupative will is a will that is completely in the handwriting of the testator.
Q:
An "X" can qualify as a signature on a will.
Q:
A will must normally be attested to by two or three witnesses.
Q:
Undue influence can occur when a named beneficiary is in a position to influence the making of a will.
Q:
To execute a valid will, a testator must remember the "natural objects of his or her bounty."
Q:
In most states, a person must be sixteen years of age to execute a valid will.
Q:
A testator is a decedent who dies without a will.
Q:
An executor is a personal representative appointed by a court for a decedent who dies without a will.
Q:
If no heirs are found, the property of a decedent is transferred to a charitable organization.
Q:
An insured's lack of an insurable interest is an absolute defense against payment.
Q:
In defense against payment, an insurance company can raise any of the defenses that would be valid in an ordinary action on a contract.
Q:
Because insurance law follows contract law, bad faith tort actions against insurers are not allowed.
Q:
An insurer has a duty to avoid the payment of claims.
Q:
An applicant for insurance has a duty to disclose only material facts that the insurer asks for.