Complete Verified Test Bank for
Business Law: Text and Cases 16th
Edition (Clarkson & Miller) – Exam
Questions & Answers 2025
Prepared for Academic Use – 2025 Edition
Contents
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Unit I: The Legal Environment of Business . . . . . . . . . . . . . . . . 1
2.1 Chapter 1: Law and Legal Reasoning . . . . . . . . . . . . . . . . . . . . 1
2.1.1 What does a case citation like Smith v. Jones, 456 Neb. 789, 987
N.W.2d 123 (2024) indicate about the location of the opinion? . . 1
2.1.2 Is a state statute considered a primary source of law? . . . . . . . 1
2.1.3 What is the primary purpose of business law? . . . . . . . . . . . 1
2.1.4 Can every legal question be answered with absolute certainty? . . 2
2.1.5 What is a precedent in the context of judicial decisions? . . . . . 2
2.1.6 Does the U.S. Constitution serve as the foundation for all U.S. laws? 2
2.1.7 Which of the following is a secondary source of law? . . . . . . . 2
2.1.8 Do federal regulations override conflicting state regulations? . . . 2
2.1.9 What factors may a court consider when no precedent exists? . . 3
2.1.10 Can a state constitution override the U.S. Constitution? . . . . . 3
2.2 Chapter 2: Business and the Constitution . . . . . . . . . . . . . . . . . 3
2.2.1 Is a state law unconstitutional if it conflicts with the U.S. Consti-
tution? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.2.2 What does the Commerce Clause empower Congress to regulate? 3
2.2.3 Do corporations enjoy protections under the Bill of Rights? . . . 3
2.2.4 Which amendment protects against unreasonable searches? . . . . 4
2.2.5 Does the Equal Protection Clause apply to private businesses? . . 4
2.3 Chapter 3: Ethics in Business . . . . . . . . . . . . . . . . . . . . . . . . 4
2.3.1 Which ethical theory prioritizes the greatest good for society? . . 4
1
, Business Law: Text and Cases 16th Edition Test Bank
2.3.2 Does business law include an ethical component? . . . . . . . . . 4
2.3.3 What does a company’s code of ethics typically address? . . . . . 4
2.3.4 Are ethical standards universal across cultures according to ethical
relativism? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.3.5 What is a potential legal consequence of unethical business practices? 5
3 Unit II: Torts and Crimes . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
3.1 Chapter 6: Tort Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
3.1.1 Which tort involves wrongful interference with another’s property? 5
3.1.2 Does a negligence claim require proof of intent? . . . . . . . . . . 5
3.1.3 What elements must be proven in a negligence lawsuit? . . . . . . 6
3.1.4 Are punitive damages awarded to compensate the plaintiff? . . . 6
3.1.5 Which of the following is an intentional tort? . . . . . . . . . . . 6
3.2 Chapter 10: Criminal Law and Cyber Crime . . . . . . . . . . . . . . . . 6
3.2.1 Does civil law address wrongs against society? . . . . . . . . . . . 6
3.2.2 Which of the following is a valid defense to a criminal charge? . . 7
3.2.3 Are hacking and identity theft considered cybercrimes? . . . . . . 7
3.2.4 What is the primary goal of criminal law? . . . . . . . . . . . . . 7
3.2.5 Can a corporation face criminal liability for employee actions? . . 7
4 Unit III: Contracts and E-Contracts . . . . . . . . . . . . . . . . . . . . 7
4.1 Chapter 11: Nature and Terminology . . . . . . . . . . . . . . . . . . . . 7
4.1.1 Are mutual assent and consideration required for a contract? . . . 7
4.1.2 Which of the following is NOT a contract element? . . . . . . . . 8
4.1.3 Is an implied contract formed by party conduct? . . . . . . . . . 8
4.1.4 What defines a unilateral contract? . . . . . . . . . . . . . . . . . 8
4.1.5 Is an executory contract fully performed? . . . . . . . . . . . . . 8
4.2 Chapter 12: Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
4.2.1 How can an offer be terminated? . . . . . . . . . . . . . . . . . . 8
4.2.2 Does a counteroffer reject the original offer? . . . . . . . . . . . . 9
4.2.3 What does the mirror image rule require? . . . . . . . . . . . . . 9
4.2.4 Does silence typically constitute acceptance? . . . . . . . . . . . . 9
4.2.5 To whom must an offer be communicated? . . . . . . . . . . . . . 9
5 Unit IV: Domestic and International Sales and Lease Contracts . . . 10
5.1 Chapter 20: Sales and Lease Contracts . . . . . . . . . . . . . . . . . . . 10
5.1.1 Does the Uniform Commercial Code (UCC) govern sales of goods? 10
5.1.2 Who qualifies as a merchant under the UCC? . . . . . . . . . . . 10
5.1.3 Must a lease contract over $1,000 be in writing under the UCC? . 10
5.1.4 What does the perfect tender rule require? . . . . . . . . . . . . . 10
5.1.5 Can a buyer reject goods for any nonconformity under the UCC? 10
5.2 Chapter 23: Warranties . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
5.2.1 Which contact is permissible under the Fair Debt Collection Prac-
tices Act? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
5.2.2 Does the Magnuson-Moss Warranty Act apply to products costing
$25 or more? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
5.2.3 What does an implied warranty of merchantability guarantee? . . 11
5.2.4 Must express warranties be in writing? . . . . . . . . . . . . . . . 11
5.2.5 What constitutes deceptive advertising? . . . . . . . . . . . . . . 11
2
, Business Law: Text and Cases 16th Edition Test Bank
6 Unit V: Negotiable Instruments . . . . . . . . . . . . . . . . . . . . . . . 12
6.1 Chapter 25: Negotiable Instruments . . . . . . . . . . . . . . . . . . . . . 12
6.1.1 Must a negotiable instrument be in writing? . . . . . . . . . . . . 12
6.1.2 What characterizes a holder in due course? . . . . . . . . . . . . 12
6.1.3 Is a promissory note a negotiable instrument? . . . . . . . . . . . 12
6.1.4 Which of the following is NOT a negotiable instrument? . . . . . 12
6.1.5 Must a negotiable instrument promise a fixed payment? . . . . . 13
7 Unit VI: Creditors’ Rights and Bankruptcy . . . . . . . . . . . . . . . . 13
7.1 Chapter 29: Creditors’ Rights and Remedies . . . . . . . . . . . . . . . . 13
7.1.1 Does a mechanic’s lien secure payment for property work? . . . . 13
7.1.2 What does garnishment involve? . . . . . . . . . . . . . . . . . . 13
7.1.3 Must a creditor file a lawsuit to obtain a writ of execution? . . . 13
7.1.4 Which remedy allows a creditor to seize property? . . . . . . . . . 13
7.1.5 Is a surety primarily liable for a debtor’s obligation? . . . . . . . 14
8 Unit VII: Agency and Employment . . . . . . . . . . . . . . . . . . . . . 14
8.1 Chapter 32: Agency Formation and Duties . . . . . . . . . . . . . . . . . 14
8.1.1 Does an agent owe a fiduciary duty to the principal? . . . . . . . 14
8.1.2 How is an agency relationship typically formed? . . . . . . . . . . 14
8.1.3 Is an independent contractor considered an agent? . . . . . . . . 14
8.1.4 What is a principal’s duty to an agent? . . . . . . . . . . . . . . . 14
8.1.5 Can an agency relationship end by mutual consent? . . . . . . . . 15
9 Unit VIII: Business Organizations . . . . . . . . . . . . . . . . . . . . . . 15
9.1 Chapter 37: All Forms of Partnerships . . . . . . . . . . . . . . . . . . . 15
9.1.1 Do partners in a partnership have ownership interests? . . . . . . 15
9.1.2 Who is fully liable for debts in a limited partnership? . . . . . . . 15
9.1.3 Is a partnership a pass-through entity for taxes? . . . . . . . . . . 15
9.1.4 Can a partnership at will be dissolved at any time? . . . . . . . . 15
9.1.5 Do all partners in an LLP have limited liability? . . . . . . . . . 16
10 Unit IX: Government Regulation . . . . . . . . . . . . . . . . . . . . . . 16
10.1 Chapter 43: Administrative Agencies . . . . . . . . . . . . . . . . . . . . 16
10.1.1 Are administrative agencies created by Congress? . . . . . . . . . 16
10.1.2 What is a primary function of administrative agencies? . . . . . . 16
10.1.3 Do administrative laws significantly impact businesses? . . . . . . 16
10.1.4 What does the Administrative Procedure Act govern? . . . . . . 16
10.1.5 Are independent agencies subject to presidential oversight? . . . . 17
11 Unit X: Property and Its Protection . . . . . . . . . . . . . . . . . . . . 17
11.1 Chapter 48: Personal Property and Bailments . . . . . . . . . . . . . . . 17
11.1.1 Does personal property include movable items? . . . . . . . . . . 17
11.1.2 What is a bailment? . . . . . . . . . . . . . . . . . . . . . . . . . 17
11.1.3 Does a bailee have a duty of care for bailed property? . . . . . . . 17
11.1.4 Which scenario is an example of a bailment? . . . . . . . . . . . . 17
11.1.5 Can a finder claim lost property if the owner is untraceable? . . . 18
12 Additional Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
3
, Business Law: Text and Cases 16th Edition Test Bank
12.0.1 What is an equitable remedy in a legal dispute? . . . . . . . . . . 18
12.0.2 Do appellate courts review factual findings de novo? . . . . . . . 18
12.0.3 What does the statute of frauds require for certain contracts? . . 18
12.0.4 Is a quasi-contract based on an express agreement? . . . . . . . . 19
12.0.5 What is a defense to contract enforceability? . . . . . . . . . . . . 19
12.0.6 Is a corporation treated as a legal person? . . . . . . . . . . . . . 19
12.0.7 What does the Sarbanes-Oxley Act regulate? . . . . . . . . . . . 19
12.0.8 Does strict liability apply to dangerous activities? . . . . . . . . . 19
12.0.9 Which is a form of intellectual property? . . . . . . . . . . . . . . 20
12.0.10 Is a sole proprietorship a separate legal entity? . . . . . . . . . . 20
12.0.11 What does the parol evidence rule restrict? . . . . . . . . . . . . 20
12.0.12 Must liquidated damages clauses be reasonable? . . . . . . . . . . 20
12.0.13 Which is a type of bankruptcy? . . . . . . . . . . . . . . . . . . . 20
12.0.14 Must a trademark be registered for protection? . . . . . . . . . . 21
12.0.15 What does the Clayton Act address? . . . . . . . . . . . . . . . . 21
12.0.16 Is a lease considered a bailment? . . . . . . . . . . . . . . . . . . 21
12.0.17 Which agency governs workplace safety? . . . . . . . . . . . . . . 21
12.0.18 Does a franchisee operate independently of the franchisor? . . . . 21
12.0.19 What are a director’s fiduciary duties? . . . . . . . . . . . . . . . 21
12.0.20 Does the Statute of Limitations set lawsuit filing deadlines? . . . 22
12.0.21 What is a remedy for breach of contract? . . . . . . . . . . . . . 22
12.0.22 Does a merger involve one company absorbing another? . . . . . 22
12.0.23 What does the Securities Act of 1933 require? . . . . . . . . . . . 22
12.0.24 Does a patent protect inventions for a limited time? . . . . . . . . 22
12.0.25 Which is a form of alternative dispute resolution? . . . . . . . . . 23
12.0.26 Does an LLC offer limited liability to members? . . . . . . . . . . 23
12.0.27 What does the Fair Labor Standards Act regulate? . . . . . . . . 23
12.0.28 Is a trust a legal arrangement for property management? . . . . . 23
12.0.29 Which is a type of tort? . . . . . . . . . . . . . . . . . . . . . . . 23
12.0.30 Does the Clean Air Act regulate air pollution? . . . . . . . . . . . 24
12.0.31 What is a secured transaction? . . . . . . . . . . . . . . . . . . . 24
12.0.32 Do shareholders vote on major corporate decisions? . . . . . . . . 24
12.0.33 What is the primary role of the Federal Trade Commission? . . . 24
12.0.34 Is a minor’s contract voidable? . . . . . . . . . . . . . . . . . . . 24
12.0.35 What is required for a valid contract? . . . . . . . . . . . . . . . 24
12.0.36 Is a covenant not to compete always enforceable? . . . . . . . . . 25
12.0.37 What does cyberlaw govern? . . . . . . . . . . . . . . . . . . . . 25
12.0.38 Does a warranty of title ensure the seller’s right to sell? . . . . . . 25
12.0.39 Which is a type of negotiable instrument? . . . . . . . . . . . . . 25
12.0.40 Must a real property deed be recorded to be valid? . . . . . . . . 26
12.0.41 What is a defense to a tort claim? . . . . . . . . . . . . . . . . . 26
12.0.42 Does the Sherman Antitrust Act prohibit monopolies? . . . . . . 26
12.0.43 What is the purpose of a constructive trust? . . . . . . . . . . . . 26
12.0.44 Does a power of attorney create an agency relationship? . . . . . 26
12.0.45 Which is a type of property ownership? . . . . . . . . . . . . . . 26
12.0.46 Does a nondisclosure agreement protect confidential information? 27
12.0.47 What is the primary purpose of the Bankruptcy Code? . . . . . . 27
12.0.48 Are creditors prioritized over shareholders in bankruptcy? . . . . 27
4
Business Law: Text and Cases 16th
Edition (Clarkson & Miller) – Exam
Questions & Answers 2025
Prepared for Academic Use – 2025 Edition
Contents
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Unit I: The Legal Environment of Business . . . . . . . . . . . . . . . . 1
2.1 Chapter 1: Law and Legal Reasoning . . . . . . . . . . . . . . . . . . . . 1
2.1.1 What does a case citation like Smith v. Jones, 456 Neb. 789, 987
N.W.2d 123 (2024) indicate about the location of the opinion? . . 1
2.1.2 Is a state statute considered a primary source of law? . . . . . . . 1
2.1.3 What is the primary purpose of business law? . . . . . . . . . . . 1
2.1.4 Can every legal question be answered with absolute certainty? . . 2
2.1.5 What is a precedent in the context of judicial decisions? . . . . . 2
2.1.6 Does the U.S. Constitution serve as the foundation for all U.S. laws? 2
2.1.7 Which of the following is a secondary source of law? . . . . . . . 2
2.1.8 Do federal regulations override conflicting state regulations? . . . 2
2.1.9 What factors may a court consider when no precedent exists? . . 3
2.1.10 Can a state constitution override the U.S. Constitution? . . . . . 3
2.2 Chapter 2: Business and the Constitution . . . . . . . . . . . . . . . . . 3
2.2.1 Is a state law unconstitutional if it conflicts with the U.S. Consti-
tution? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.2.2 What does the Commerce Clause empower Congress to regulate? 3
2.2.3 Do corporations enjoy protections under the Bill of Rights? . . . 3
2.2.4 Which amendment protects against unreasonable searches? . . . . 4
2.2.5 Does the Equal Protection Clause apply to private businesses? . . 4
2.3 Chapter 3: Ethics in Business . . . . . . . . . . . . . . . . . . . . . . . . 4
2.3.1 Which ethical theory prioritizes the greatest good for society? . . 4
1
, Business Law: Text and Cases 16th Edition Test Bank
2.3.2 Does business law include an ethical component? . . . . . . . . . 4
2.3.3 What does a company’s code of ethics typically address? . . . . . 4
2.3.4 Are ethical standards universal across cultures according to ethical
relativism? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.3.5 What is a potential legal consequence of unethical business practices? 5
3 Unit II: Torts and Crimes . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
3.1 Chapter 6: Tort Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
3.1.1 Which tort involves wrongful interference with another’s property? 5
3.1.2 Does a negligence claim require proof of intent? . . . . . . . . . . 5
3.1.3 What elements must be proven in a negligence lawsuit? . . . . . . 6
3.1.4 Are punitive damages awarded to compensate the plaintiff? . . . 6
3.1.5 Which of the following is an intentional tort? . . . . . . . . . . . 6
3.2 Chapter 10: Criminal Law and Cyber Crime . . . . . . . . . . . . . . . . 6
3.2.1 Does civil law address wrongs against society? . . . . . . . . . . . 6
3.2.2 Which of the following is a valid defense to a criminal charge? . . 7
3.2.3 Are hacking and identity theft considered cybercrimes? . . . . . . 7
3.2.4 What is the primary goal of criminal law? . . . . . . . . . . . . . 7
3.2.5 Can a corporation face criminal liability for employee actions? . . 7
4 Unit III: Contracts and E-Contracts . . . . . . . . . . . . . . . . . . . . 7
4.1 Chapter 11: Nature and Terminology . . . . . . . . . . . . . . . . . . . . 7
4.1.1 Are mutual assent and consideration required for a contract? . . . 7
4.1.2 Which of the following is NOT a contract element? . . . . . . . . 8
4.1.3 Is an implied contract formed by party conduct? . . . . . . . . . 8
4.1.4 What defines a unilateral contract? . . . . . . . . . . . . . . . . . 8
4.1.5 Is an executory contract fully performed? . . . . . . . . . . . . . 8
4.2 Chapter 12: Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
4.2.1 How can an offer be terminated? . . . . . . . . . . . . . . . . . . 8
4.2.2 Does a counteroffer reject the original offer? . . . . . . . . . . . . 9
4.2.3 What does the mirror image rule require? . . . . . . . . . . . . . 9
4.2.4 Does silence typically constitute acceptance? . . . . . . . . . . . . 9
4.2.5 To whom must an offer be communicated? . . . . . . . . . . . . . 9
5 Unit IV: Domestic and International Sales and Lease Contracts . . . 10
5.1 Chapter 20: Sales and Lease Contracts . . . . . . . . . . . . . . . . . . . 10
5.1.1 Does the Uniform Commercial Code (UCC) govern sales of goods? 10
5.1.2 Who qualifies as a merchant under the UCC? . . . . . . . . . . . 10
5.1.3 Must a lease contract over $1,000 be in writing under the UCC? . 10
5.1.4 What does the perfect tender rule require? . . . . . . . . . . . . . 10
5.1.5 Can a buyer reject goods for any nonconformity under the UCC? 10
5.2 Chapter 23: Warranties . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
5.2.1 Which contact is permissible under the Fair Debt Collection Prac-
tices Act? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
5.2.2 Does the Magnuson-Moss Warranty Act apply to products costing
$25 or more? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
5.2.3 What does an implied warranty of merchantability guarantee? . . 11
5.2.4 Must express warranties be in writing? . . . . . . . . . . . . . . . 11
5.2.5 What constitutes deceptive advertising? . . . . . . . . . . . . . . 11
2
, Business Law: Text and Cases 16th Edition Test Bank
6 Unit V: Negotiable Instruments . . . . . . . . . . . . . . . . . . . . . . . 12
6.1 Chapter 25: Negotiable Instruments . . . . . . . . . . . . . . . . . . . . . 12
6.1.1 Must a negotiable instrument be in writing? . . . . . . . . . . . . 12
6.1.2 What characterizes a holder in due course? . . . . . . . . . . . . 12
6.1.3 Is a promissory note a negotiable instrument? . . . . . . . . . . . 12
6.1.4 Which of the following is NOT a negotiable instrument? . . . . . 12
6.1.5 Must a negotiable instrument promise a fixed payment? . . . . . 13
7 Unit VI: Creditors’ Rights and Bankruptcy . . . . . . . . . . . . . . . . 13
7.1 Chapter 29: Creditors’ Rights and Remedies . . . . . . . . . . . . . . . . 13
7.1.1 Does a mechanic’s lien secure payment for property work? . . . . 13
7.1.2 What does garnishment involve? . . . . . . . . . . . . . . . . . . 13
7.1.3 Must a creditor file a lawsuit to obtain a writ of execution? . . . 13
7.1.4 Which remedy allows a creditor to seize property? . . . . . . . . . 13
7.1.5 Is a surety primarily liable for a debtor’s obligation? . . . . . . . 14
8 Unit VII: Agency and Employment . . . . . . . . . . . . . . . . . . . . . 14
8.1 Chapter 32: Agency Formation and Duties . . . . . . . . . . . . . . . . . 14
8.1.1 Does an agent owe a fiduciary duty to the principal? . . . . . . . 14
8.1.2 How is an agency relationship typically formed? . . . . . . . . . . 14
8.1.3 Is an independent contractor considered an agent? . . . . . . . . 14
8.1.4 What is a principal’s duty to an agent? . . . . . . . . . . . . . . . 14
8.1.5 Can an agency relationship end by mutual consent? . . . . . . . . 15
9 Unit VIII: Business Organizations . . . . . . . . . . . . . . . . . . . . . . 15
9.1 Chapter 37: All Forms of Partnerships . . . . . . . . . . . . . . . . . . . 15
9.1.1 Do partners in a partnership have ownership interests? . . . . . . 15
9.1.2 Who is fully liable for debts in a limited partnership? . . . . . . . 15
9.1.3 Is a partnership a pass-through entity for taxes? . . . . . . . . . . 15
9.1.4 Can a partnership at will be dissolved at any time? . . . . . . . . 15
9.1.5 Do all partners in an LLP have limited liability? . . . . . . . . . 16
10 Unit IX: Government Regulation . . . . . . . . . . . . . . . . . . . . . . 16
10.1 Chapter 43: Administrative Agencies . . . . . . . . . . . . . . . . . . . . 16
10.1.1 Are administrative agencies created by Congress? . . . . . . . . . 16
10.1.2 What is a primary function of administrative agencies? . . . . . . 16
10.1.3 Do administrative laws significantly impact businesses? . . . . . . 16
10.1.4 What does the Administrative Procedure Act govern? . . . . . . 16
10.1.5 Are independent agencies subject to presidential oversight? . . . . 17
11 Unit X: Property and Its Protection . . . . . . . . . . . . . . . . . . . . 17
11.1 Chapter 48: Personal Property and Bailments . . . . . . . . . . . . . . . 17
11.1.1 Does personal property include movable items? . . . . . . . . . . 17
11.1.2 What is a bailment? . . . . . . . . . . . . . . . . . . . . . . . . . 17
11.1.3 Does a bailee have a duty of care for bailed property? . . . . . . . 17
11.1.4 Which scenario is an example of a bailment? . . . . . . . . . . . . 17
11.1.5 Can a finder claim lost property if the owner is untraceable? . . . 18
12 Additional Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
3
, Business Law: Text and Cases 16th Edition Test Bank
12.0.1 What is an equitable remedy in a legal dispute? . . . . . . . . . . 18
12.0.2 Do appellate courts review factual findings de novo? . . . . . . . 18
12.0.3 What does the statute of frauds require for certain contracts? . . 18
12.0.4 Is a quasi-contract based on an express agreement? . . . . . . . . 19
12.0.5 What is a defense to contract enforceability? . . . . . . . . . . . . 19
12.0.6 Is a corporation treated as a legal person? . . . . . . . . . . . . . 19
12.0.7 What does the Sarbanes-Oxley Act regulate? . . . . . . . . . . . 19
12.0.8 Does strict liability apply to dangerous activities? . . . . . . . . . 19
12.0.9 Which is a form of intellectual property? . . . . . . . . . . . . . . 20
12.0.10 Is a sole proprietorship a separate legal entity? . . . . . . . . . . 20
12.0.11 What does the parol evidence rule restrict? . . . . . . . . . . . . 20
12.0.12 Must liquidated damages clauses be reasonable? . . . . . . . . . . 20
12.0.13 Which is a type of bankruptcy? . . . . . . . . . . . . . . . . . . . 20
12.0.14 Must a trademark be registered for protection? . . . . . . . . . . 21
12.0.15 What does the Clayton Act address? . . . . . . . . . . . . . . . . 21
12.0.16 Is a lease considered a bailment? . . . . . . . . . . . . . . . . . . 21
12.0.17 Which agency governs workplace safety? . . . . . . . . . . . . . . 21
12.0.18 Does a franchisee operate independently of the franchisor? . . . . 21
12.0.19 What are a director’s fiduciary duties? . . . . . . . . . . . . . . . 21
12.0.20 Does the Statute of Limitations set lawsuit filing deadlines? . . . 22
12.0.21 What is a remedy for breach of contract? . . . . . . . . . . . . . 22
12.0.22 Does a merger involve one company absorbing another? . . . . . 22
12.0.23 What does the Securities Act of 1933 require? . . . . . . . . . . . 22
12.0.24 Does a patent protect inventions for a limited time? . . . . . . . . 22
12.0.25 Which is a form of alternative dispute resolution? . . . . . . . . . 23
12.0.26 Does an LLC offer limited liability to members? . . . . . . . . . . 23
12.0.27 What does the Fair Labor Standards Act regulate? . . . . . . . . 23
12.0.28 Is a trust a legal arrangement for property management? . . . . . 23
12.0.29 Which is a type of tort? . . . . . . . . . . . . . . . . . . . . . . . 23
12.0.30 Does the Clean Air Act regulate air pollution? . . . . . . . . . . . 24
12.0.31 What is a secured transaction? . . . . . . . . . . . . . . . . . . . 24
12.0.32 Do shareholders vote on major corporate decisions? . . . . . . . . 24
12.0.33 What is the primary role of the Federal Trade Commission? . . . 24
12.0.34 Is a minor’s contract voidable? . . . . . . . . . . . . . . . . . . . 24
12.0.35 What is required for a valid contract? . . . . . . . . . . . . . . . 24
12.0.36 Is a covenant not to compete always enforceable? . . . . . . . . . 25
12.0.37 What does cyberlaw govern? . . . . . . . . . . . . . . . . . . . . 25
12.0.38 Does a warranty of title ensure the seller’s right to sell? . . . . . . 25
12.0.39 Which is a type of negotiable instrument? . . . . . . . . . . . . . 25
12.0.40 Must a real property deed be recorded to be valid? . . . . . . . . 26
12.0.41 What is a defense to a tort claim? . . . . . . . . . . . . . . . . . 26
12.0.42 Does the Sherman Antitrust Act prohibit monopolies? . . . . . . 26
12.0.43 What is the purpose of a constructive trust? . . . . . . . . . . . . 26
12.0.44 Does a power of attorney create an agency relationship? . . . . . 26
12.0.45 Which is a type of property ownership? . . . . . . . . . . . . . . 26
12.0.46 Does a nondisclosure agreement protect confidential information? 27
12.0.47 What is the primary purpose of the Bankruptcy Code? . . . . . . 27
12.0.48 Are creditors prioritized over shareholders in bankruptcy? . . . . 27
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