Free CPA REG (Taxation & Regulation) Business Law Practice Questions
Master business law for the CPA REG exam. Questions cover contracts, the UCC, agency relationships, business entity formation, debtor-creditor relationships, and federal securities regulation.
Sample Questions
Question 1
Easy
Under contract law, what is the mailbox rule and when does it apply?
Solution
B is correct. The mailbox rule (also called the dispatch rule) provides that an acceptance is effective when dispatched by the offeree through a reasonable or authorized medium of communication, rather than when received by the offeror. This means a contract is formed at the moment of dispatch. The rule applies unless the offeror specifies that acceptance is effective only upon receipt or the offeree sends a rejection before dispatching the acceptance.
Choice A is incorrect because the mailbox rule specifically provides that acceptance is effective upon dispatch, not receipt.
Choice C is incorrect because the mailbox rule applies only to acceptances; rejections, revocations, and counteroffers are effective only when received by the other party.
Choice D is incorrect because the mailbox rule does not create a waiting period or affect the revocability of offers.
Choice A is incorrect because the mailbox rule specifically provides that acceptance is effective upon dispatch, not receipt.
Choice C is incorrect because the mailbox rule applies only to acceptances; rejections, revocations, and counteroffers are effective only when received by the other party.
Choice D is incorrect because the mailbox rule does not create a waiting period or affect the revocability of offers.
Question 2
Medium
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Solution
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Question 3
Hard
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Solution
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