1.Carl applies for fire insurance for his house. Before the application is processed, Carl's house burns down. Carl will have coverage if the insurance company

A.Doesn't find out about the fire until after the policy issues

B.Chooses to accept the application

C.Issued a binder

D.Makes coverage retroactive

2.Lucia had a homeowner's insurance policy on her house. While she was away on vacation, her porch was burned to the ground. After the fire, her house was burglarized and goods worth thousands of dollars were stolen from it. When Lucia arrived home, she called the police. While a police officer was interviewing her in her dining room, a chandelier fell on him and knocked him unconscious. Which losses will Lucia's homeowner's policy cover?

A.The losses due to theft and the injuries sustained by the officer, but not the losses incurred by the fire

B.The losses incurred due to fire and theft, but not the injuries suffered by the police officer while on her property

C.The losses incurred due to fire and theft as well as the injuries suffered by the police officer while on her property

D.The losses due to fire and the injuries sustained by the officer, but not the losses incurred by theft

3.Carl is in a car accident caused by Frank. Carl was able to collect damages and medical expenses from his own insurance company even though fault had yet to be determined. Carl probably lives in a state that requires _ insurance.

A.Uninsured motorist

B.Liability

C.No-fault

D.Collision

4.Kaycee obtains fire insurance on an empty warehouse. Later, Kaycee manufactures and stores fireworks in the building. A lightning strike in a thunderstorm explodes the fireworks and destroys the building. The fire insurance policy is

A.Valid, since there are negligible liabilities which apply to storing fireworks

B.Voidable if the lightning wasn't foreseeable

C.Valid, since the building was empty when the policy was obtained

D.Void, since a material change in risk occurred

5.In 1978, Chapters 11 and 13 of the Bankruptcy Code were created, which

A.Made it easier for creditors to obtain bankruptcy relief

B.Allowed creditors to keep all of the debtor's assets

C.Made it more difficult to declare bankruptcy

D.Allowed businesses and individuals to reorganize and keep going

6.What type of life insurance would most likely be used to cover the outstanding balance of a home mortgage?

A.Decreasing term insurance

B.Straight life

C.Endowment

D.Universal life

7.A/an _ provision in the security agreement allows the security interest of the creditor to also apply to goods the debtor acquires at a later time.

A.Acceleration

B.Floating lien

C.Forbearance

D.Attachment

8.Under the 2005 Bankruptcy Act, debtors are required to meet which of the following conditions to file for Chapter 7 bankruptcy?

A.They must provide a federal income tax return for the most recent tax year

B.Their income should be more than the state median income

C.They should be commodity brokers or stockbrokers

D.They must be involved in a fishing or farming business

9.Tom's life insurance has no cash surrender value. It must be

A.Straight life

B.Limited-payment life insurance

C.Endowment

D.Term life insurance

10.An acceleration of the debt

A.Makes the entire amount of the debt due for immediate payment

B.Increases the monthly payment amount

C.Makes the repayment period of the entire debt one year

D.Increases the interest rate

11.An intentional withholding of a fact that would be of material importance to the insurer's decision to issue a policy is called a/an

A.Misrepresentation

B.Adhesion contract

C.Estoppel

D.Fraudulent concealment

12.In which type of mortgage is the loan repaid when the borrower dies or the property is sold?

A.Balloon-payment mortgage

B.Reverse mortgage

C.Conventional mortgage

D.Variable-rate mortgage

13.A _ loan is that which deliberately misstates the qualifications of a borrower to push a loan through the approval process.

A.NINJA

B.Subprime

C.Home equity

D.Liar

14.Bob is concerned that Social Security retirement income won't be enough to meet his needs. He is looking for a financial product that would provide him with steady retirement income later in life. You would recommend

A.Annuity

B.Term life insurance

C.Straight life insurance

D.Universal life insurance

15.Sear Enterprises wants to continue in business, but needs some relief from creditors' claims. Sear Enterprises should consider filing under Chapter _ of the Bankruptcy Code.

A.11

B.12

C.7

D.13

16.The process of _ occurs when many mortgages are bundled together and sold as bonds to institutions, such as pension funds.

A.Securitization

B.Acceleration

C.Perfection

D.Foreclosure

17.A business files a Chapter 7 petition. A trustee appointed by the court, may be authorized to

A.Make payments made by the debtor within 90 days before the filing of the petition

B.Sell the debtor's properties and hand over the proceeds of the sales to the debtor

C.Pay off the debts according to the personal priority list

D.Operate the business for a limited period of time

18.Generally, a security interest is perfected when the

A.Secured party has a legally enforceable right to take that property and sell it to satisfy the debt

B.Goods are sold, but regained as soon as the debtor takes possession of the new property

C.Buyer takes the property subject to a mortgage and the seller agrees to continue paying the debt

D.Secured party has done everything that the law requires to give the secured party greater rights to the goods than others have

19.Which of the following is true of recording a mortgage?

A.Recording a mortgage notifies any third party that the mortgagee has an interest in the real property covered by the mortgage

B.The second mortgagee must know about the first mortgage and is exempt from recording the mortgage

C.If the mortgage is not recorded and a later mortgage is given on the same property, the old mortgage is superior to the second

D.A failure to record the first mortgage would remove the obligation of the mortgage to the first mortgagee

20.The only individuals specifically excluded from filing under Chapter 11 are

A.Commodity brokers and stockbrokers

B.Real estate developers

C.Chartered accountants

D.Lawyers and judges

21.Tom suffers from epilepsy. During an attack, his arm spasms, striking Zeke and causing serious injury. Tom is charged with battery. His defense will be

A.Self-defense

B.His action was involuntary

C.His state of mind was merely reckless, not intentional

D.Tom has no defense

22.A robber kills a convenience store clerk and escapes with just $5. Which of the following types of homicide best fits the facts?

A.Second-degree murder

B.Voluntary manslaughter

C.First-degree murder

D.Involuntary manslaughter

23._ is analogous to forgery because it also involves the alteration or falsification of an object or a document with intent to defraud.

A.Passing bad checks

B.Criminal simulation

C.Defrauding creditors

D.Embezzlement

24.Which of the following would be considered a criminal act?

A.Martin had a heart attack while driving his semitrailer on a highway, causing a head-on collision with another trailer, and resulting in a 40-car pileup and 17 deaths

B.Last summer, Sam made and sold crack cocaine and marijuana to teenagers in his neighborhood, leading to drug network and addiction amongst teenagers of that locale

C.Karen, obsessed with thoughts of her husband's affair with his colleague, wrote in her diary detailed plots of how to kill the woman

D.Helen thinks she can't get through each day without taking LSD, a psychedelic drug

25.Tom tells Bob that Charlie has venereal disease. Charlie can't sue Tom for defamation if

A.The statement is true

B.Bob didn't think badly of Charlie after Tom's statement

C.The statement is false

D.Bob didn't tell others what Tom told him

26.Nicole is shopping at Big Store when an employee prevents her from leaving and accuses her of shoplifting in front of other customers. Nicole is determined to be innocent, and the store is determined not to have had reasonable grounds to detain her. Nicole has a claim for

A.False imprisonment only

B.Defamation only

C.Defamation and false imprisonment

D.Defamation and invasion of privacy

27.Robert goes to the liquor store, pulls out what appears to be a gun, and says, "Give me all your money, or I'll kill you." The clerk gives Robert all the money in the register. As Robert leaves the liquor store, he spots a policeman across the street and begins to run. At that moment, the clerk comes out of the store and shouts to the policeman that he's just been robbed. The policeman tackles Robert and discovers that Robert's gun was actually just a water pistol. Which of the following statements is true?

A.Robert isn't guilty of robbery because he didn't use force to accomplish the theft

B.Robert isn't guilty of robbery because the gun wasn't capable of causing harm

C.Robert is guilty of robbery because he used the threat of force to commit a theft

D.Robert is guilty of robbery because he committed theft

28.Zeke is charged with homicide. If it's true that Zeke pulled the trigger and that someone died as a result, which of the following statements is true?

A.Zeke didn't commit homicide unless his state of mind was purposive or knowing

B.Zeke can't be convicted of homicide unless he intended to kill

C.Zeke's state of mind could affect the degree of homicide with which he should be charged

D.Zeke's state of mind is irrelevant in defining the crime with which he should be charged unless it constitutes a defense, such as insanity

29.Sam went to E-Z Shop to pick up some groceries. Sam was in a bit of a hurry and began walking swiftly down the aisles of the store. Sam forgot about a nagging knee injury that often reemerged when he moved too quickly. Sure enough, as Sam was briskly walking down aisle 9, where a store employee had neglected to clean up a spill, Sam's trick knee went out, and he fell to the floor just before he reached the spill. If E-Z Shop avoids liability in this case, it will probably be because

A.The store didn't breach any duty it owed to Sam

B.The store didn't owe a duty to Sam

C.Sam didn't suffer any legally recognizable injury

D.The store's breach of duty didn't cause Sam's injury

30.Alvin has discovered how to duplicate subway fare cards, and has made several hundreds of them with the intention of defrauding people. Which of the following crimes has Alvin committed?

A.Embezzlement

B.Forgery

C.Bribery

D.Larceny by false pretenses

31.If Ann sued Sharon for assault without any factual basis, and the jury ruled in favor of Sharon, Sharon in turn may sue Ann for

A.Abuse of process

B.Contributory negligence

C.Misuse of legal procedure

D.Malicious prosecution

32.Tom breaks into Sally's house with the intention of stealing her jewelry, which is a felony. Unfortunately for Tom, when he breaks into the house, he finds a policeman waiting in Sally's bedroom to arrest him. Tom is charged with burglary. Which of the following statements is true?

A.Tom can't be guilty of burglary because he was arrested before he stole anything

B.Tom has the defense of entrapment because the police were waiting for him

C.Tom can be charged only with attempted burglary because he didn't steal anything

D.Tom has committed burglary

33.Robert is President of the United States. Tom, a journalist, publishes in the newspaper statements that Robert has become a cocaine addict. If Robert sues Tom for defamation, Robert must prove that the statements were

A.False and made with actual malice

B.Robert can't sue Tom due to the First Amendment to the U.S. Constitution

C.Either false or made with actual malice

D.False

34._ is only a defense to charges of criminal liability if it destroys one of the elements necessary to that crime.

A.Battered spouse syndrome

B.Mistake

C.Defense against others

D.Self-defense

35.Offering, promising, or giving something of value to a public official with the goal of influencing that official in the discharge of his or her duties is called

A.Racketeering

B.Bribery

C.Embezzlement

D.Fraud

36.A shoplifter steals a can of soda and tries to escape. He threatens and fights the clerk when confronted. This is an example of

A.Embezzlement

B.Robbery

C.Burglary

D.Extortion

37.Terry was driving a car that collided with Bob's car. Bob suffered $100,000 in damage. Bob was 20 percent at fault and Terry was 80 percent at fault. Which of the following statements is true?

A.Bob will collect $60,000 in a jurisdiction that follows comparative negligence

B.Bob will collect nothing in a jurisdiction that follows comparative negligence

C.Bob will collect $80,000 in a jurisdiction that follows contributory negligence

D.Bob will collect $80,000 in a jurisdiction that follows comparative negligence

38.The _ Act is designed to deal with the problem of unsolicited commercial email.

A.Economic Espionage

B.CAN SPAM

C.Cyber-Command

D.Computer Fraud and Abuse

39.Sally goes through Edith's purse when Edith leaves the room. Edith returns and catches her in the act. Edith can sue for which type of invasion of privacy?

A.Exploitation

B.Revelation of confidential records

C.Intrusion

D.Creating a false light

40.Which of the following types of criminal homicide involves killing someone with premeditation, killing in a cruel way such as with torture, or killing while committing a major crime?

A.Involuntary manslaughter

B.First-degree murder

C.Second-degree murder

D.Voluntary manslaughter