Business Law and The Regulation of Business 11th Edition

ISBN 13
978-1133587576
ISBN 10
1133587577
Authors
Barry S. Roberts, Richard A. Mann
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271 documents found.
345631
Exam Prep
JD 106 Midterm
A minor's declaration of trust is voidable. Answer: T Answer: T Answer: T The Labor-Management Reporting and Disclosure Act is aimed at eliminating corruption in labor unions. Answer: T Answer: T Answer: T The term mala prohibita refers to the bad act element of a crime. Answer: F Answer: F Answer: F The Congressional power to borrow money on the credit
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JD 112
Which of the following is correct with regard to the Bill of Rights? a. It serves as a restriction on the powers and authority of the federal government. b. It does not apply directly to the states, but the Supreme Court has held that the Fourteenth Amendment makes many of its principles
Business Law and The Regulation of Business 11th Edition
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JD 131 Quiz 1
The right of exoneration allows the surety to require the principal debtor to pay his obligation to the creditor. Answer: T Answer: T Answer: T Under the 1934 Act, an accountant's liability for false or misleading statements is based on a good faith negligence standard. Answer: T Answer: T Answer: T A business's secret information is always best
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JD 133 Midterm 2
Whether an individual partner or the partnership owns certain property determines who gets it upon dissolution of the partnership and who shares in income from it. Answer: T Answer: T Answer: T A conditional indorsement is one by which the indorser makes the rights of the indorsee subject to the happening or nonhappening of a
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JD 139 Midterm
The Sarbanes-Oxley Act has all but which of the following provisions? a. Creating a five-person Accounting Oversight Board with authority to review and discipline auditors. b. Creating severe civil and criminal penalties for enterprises that engage in the commission of two or more predicate acts within a period of ten years. c. Increasing
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JD 145
Under what circumstances may the buyer seek the remedy of replevin? a. Where the buyer has been unable to obtain cover. b. Where the goods have been shipped under reservation of a security interest in the seller and that interest has been satisfied. c. Where the goods are specially manufactured but can be
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JD 145 Quiz 2
Fred is a concert violinist who is scheduled to perform at Carnegie Hall for the first time. He buys what he is told is a Stradivarius violin from a well-known, reputable dealer in quality violins, and he pays the going rate for a Stradivarius. He later learns the violin is
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JD 176
A drawee bank is primarily liable after it accepts the check. Answer: T Answer: T Answer: T When a treaty and a right declared under a subsequent federal statute conflict, the treaty must prevail. Answer: F Answer: F Answer: F Restrictive covenants are strictly construed against the party asserting their applicability. Answer: T Answer: T Answer: T Under the Code, a contract for
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JD 230 Test 2
A payee cannot be a holder in due course under the Code. Answer: F Answer: F Answer: F Discharge by performance is the most frequent method of discharging a contractual duty. Answer: T Answer: T Answer: T Article 8 of the UCC covers rules applicable to transfers of investment securities. Answer: T Answer: T Answer: T "Goods" for purposes of the Code
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JD 250 Test 1
If an anticipatory repudiation substantially impairs the value of the contract, the aggrieved party may: a. await performance for a commercially reasonable time. b. resort to any appropriate remedy for breach. c. All of the above. d. None of the above. Answer: C Answer: C Answer: C The case of VonHoldt v. Barba & Barba Construction, Inc. held
Business Law and The Regulation of Business 11th Edition
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JD 252 Quiz 2
Indorsers of all instruments incur primary liability on the instrument. Answer: F Answer: F Answer: F Collecting banks give to a transferee the same basic warranties as those given by other parties who transfer commercial paper, except they also may give encoding warranties. Answer: T Answer: T Answer: T The surety does not have the right of contribution
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JD 325 Midterm
Roscoe Braun, who lives in Cleveland, receives a mailing from Florida from the SwampLand and Reclamation Project. It states that the Brauns can purchase one-acre sites as part of a newly planned development located in Leon County, Florida. The Brauns contact the company and are given a purchase agreement but
Business Law and The Regulation of Business 11th Edition
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JD 337
Fred contracts to sell a certain tract of land to Mary for $20,000, but the contract is silent as to the time of delivery of the deed and payment of the price. In this case, the: a. payment of the $20,000 and the delivery of the deed are independent of each
Business Law and The Regulation of Business 11th Edition
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JD 361
A duty to act is imposed on those whose innocent conduct has injured another and left him helpless and in danger of further harm. Answer: T Answer: T Answer: T Apparent authority may arise by an agent's showing a third party a document from the principal authorizing the agent to enter into such a
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JD 369
The __________ gives shareholders who elect such a right in the articles of incorporation the power to dissolve the corporation. a. appraisal remedy b. U.C.C. c. Statutory Close Corporation Supplement d. None of the above. Answer: C Answer: C Answer: C A corporation may acquire all of the assets, including goodwill, of another corporation and combine them with
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JD 371 Test 2
Generally, State A may exercise "long-arm" jurisdiction over a defendant located in State B if the defendant: a. once resided in State A. b. uses a product produced in State A. c. made a contract in State A. d. has relatives in State A. Answer: C Answer: C Answer: C "Value" is defined as including: a. consideration under contract
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JD 417
Name and briefly describe the special features or extraordinary duties of five special types of bailments discussed in the textbook. Answer: Five special types of bailments are or involve pledges, warehousing, safe deposit boxes, innkeepers, and common carriers. A pledge is a bailment for security in which the owner gives possession
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JD 428 Test 2
What six elements must be present for the crime of larceny to exist? Answer: The following are elements that must be present for the crime of larceny to exist:a. Trespassoryb. Taking andc. Carrying away of (or exercising dominion or control over)d. Personal propertye. Of anotherf. With the intent to deprive the
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JD 434
An appeal from a small claims court is taken to the state court of appeals where a trial de novo is begun. Answer: F Answer: F Answer: F An offer must be in a particular form to have legal effect. Answer: F Answer: F Answer: F Unanimous written consent of all partners is required to add new
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JD 447 Midterm
The Securities Exchange Act of 1934 primarily deals with secondary transactions in stock. Answer: T Answer: T Answer: T A license is generally subject to revocation by the property owner at any time. Answer: T Answer: T Answer: T Chapter 3 of the Bankruptcy Code contains provisions dealing with the commencement of a case in bankruptcy. Answer: T Answer: T Answer:
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JD 460
To be effective, a gift requires delivery. Answer: T Answer: T Answer: T The Sarbanes-Oxley Act passed in 2002 is the first comprehensive federal statute prohibiting computer crime. Answer: F Answer: F Answer: F In a Chapter 7 proceeding, an unsecured creditor who files a claim with the court after the deadline because he is too busy planning
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JD 477 Final
Russell promises to deliver and install living room carpeting for Nina. Classify as an express, implied-in-fact, or implied-in law condition Nina's notification to Russell of her choice of type and color of carpeting. Compare and contrast this condition with the other two types of contractual conditions. Answer: Nina's notification to Russell
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JD 477 Test 1
The Model Business Corporation Act is a state statute that, like the UCC, has been adopted by all of the states in the United States to make state incorporation statutes uniform throughout the United States. Answer: F Answer: F Answer: F A principal who authorizes his agent to commit a tortious act with respect
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JD 519
The purpose of reliance damages is to place the injured party in a position as good as he would have held if the contract had not been made. Answer: T Answer: T Answer: T Under the Third Restatement, if a principal becomes incapacitated, the agency relationship terminates and all authority, including apparent authority, automatically ceases. Answer:
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JD 535 Quiz 3
The term "past consideration" is not really consideration at all because the law will not find a contract where there is no bargained-for-exchange. Answer: T Answer: T Answer: T Bailments for the bailee's sole benefit are usually limited to the gratuitous loan of personal property for use by the bailee. Answer: T Answer: T Answer: T Carlos wrote
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JD 557 Test 2
Legislation to protect the environment from precipitation containing high levels of sulfuric or nitric acid, or acid rain, is aimed primarily at electric utility companies. Answer: T Answer: T Answer: T The liability of manufacturers and sellers of goods for a defective product or for its failure to perform adequately may be based on
Business Law and The Regulation of Business 11th Edition
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JD 564 Test 2
The Restatement (Third) of Torts: Products Liability has experienced rapid adoption by the states. Answer: F Answer: F Answer: F An implied-in-law condition must be fully performed. Answer: F Answer: F Answer: F Under Chapter 11, a class that is not impaired under a plan is deemed to have accepted the plan. Answer: T Answer: T Answer: T The Uniform Commercial Code
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JD 585 Quiz 1
The Code addresses the 'battle of the forms' problem by focusing on intent of the parties. Answer: T Answer: T Answer: T Sales of tangible personal property involve the transfer of title. Answer: T Answer: T Answer: T If the seller has failed to comply with Code requirements in making a resale of goods that were wrongfully rejected,
Business Law and The Regulation of Business 11th Edition
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JD 594
The concerted action requirement of the Sherman Act Section 1: a. may be established by an express agreement. b. is not met when a parent corporation and its wholly owned subsidiaries agree to a restraint in trade. c. requires factors, additional to conscious parallelism, such as identical sealed bids from each competitor. d. All
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JD 601 Test 2
The tort of false light imposes liability if the matter in question is objectionable to a reasonable person, but is not necessarily defamatory. Answer: T Answer: T Answer: T An agreement to refrain from a particular trade, profession, or business is enforceable if two requirements are met: that the purpose of the restraint is to
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JD 616 Test 1
White-collar crime is defined as a nonviolent crime usually involving deceit, corruption, or breach of trust. Answer: T Answer: T Answer: T Under the common law, in order to be enforceable, a modification of an existing contract must be supported by mutual consideration. Answer: T Answer: T Answer: T The legal effect of a usurious loan varies from
Business Law and The Regulation of Business 11th Edition
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JD 627
Which of the following is correct with respect to the Code's approach to impossibility of performance? a. A significant drop in demand for the goods will excuse the buyer's performance. b. Increased production costs will excuse performance by the seller. c. Performance will be excused when it is impractical as a result of
Business Law and The Regulation of Business 11th Edition
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JD 630 Midterm
Despite 402A's bar of contributory negligence in strict liability cases, some courts apply comparative negligence to strict liability cases. Answer: T Answer: T Answer: T Presentment for payment is one step necessary to charge an indorser with the obligation to pay. Answer: T Answer: T Answer: T An uncommon but possible way to obtain title to property is by adverse
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JD 639 Test 1
Incorporation statutes usually provide for both voluntary and involuntary dissolution of a corporation. Answer: T Answer: T Answer: T Directors may vote by proxy when they are not able to be present for a meeting. Answer: F Answer: F Answer: F Pointing an unloaded gun at someone who believes it is loaded and threatening to shoot constitutes an
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JD 654 Midterm 1 The Same Conduct
The same conduct cannot be both a crime and a tort, which is a civil wrong. Answer: F Answer: F Answer: F A limited liability partnership is a limited partnership which falls under special statutes not requiring filings to limit partners' liability. Answer: F Answer: F Answer: F The majority of courts hold that the running of the
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JD 683 Test 1
Thomas borrowed $100,000 from First Bank, which asked that he both put up collateral and provide a surety. Consequently Thomas provided the bank with a security interest in his antique car collection and asked Victor to act as a surety. Victor agreed to do so and signed a surety agreement with
Business Law and The Regulation of Business 11th Edition
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JD 712 Midterm 2
Allannah has entered into a contract to buy a new Steinway piano. The law governing the contract is Article 3 of the UCC. Answer: F Answer: F Answer: F First Finance Company filed its financing statement for a purchase money security interest in Donald's lawn tractor on March 1. Donald purchased the lawn tractor
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JD 717 Quiz 3
An agreement to refrain from a particular trade, profession, or business is enforceable if: a. the purpose of the restraint is to protect a property interest of the promisee. b. the agreement is for no longer than two years. c. the restraint is no more extensive than is reasonably necessary to protect the
Business Law and The Regulation of Business 11th Edition
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JD 723 Quiz 3
Attachment must occur in order to make a security interest enforceable against the debtor and against third parties. Answer: T Answer: T Answer: T The U.S. Supreme Court can invalidate a law if it conflicts with the U.S. Constitution. Answer: T Answer: T Answer: T The Gramm-Leach-Bliley Financial Modernization Act is administered and enforced solely through two federal
Business Law and The Regulation of Business 11th Edition
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JD 743 Quiz 3
Trade secrets are most frequently misappropriated in which of these ways? a. An employee wrongfully uses or discloses such secrets. b. A competitor wrongfully obtains them. c. Through inadvertent disclosure in advertisements. d. Both (a) and (b). Answer: D Answer: D Answer: D Of the following elements, which one is NOT required to create an enforceable trust? a. Consideration. b.
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JD 761 Test 1
Today, a majority of courts permit a rescission of a contract for negligent or innocent misrepresentation, provided that all the remaining elements of fraud are present and the misrepresentation is material. Answer: T Answer: T Answer: T Concurrent conditions occur when mutual duties of performance are to take place simultaneously. Answer: T Answer: T Answer: T What is
Business Law and The Regulation of Business 11th Edition
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JD 762
A principal has no duty to compensate his or her agent if: a. the agent breached the duty of obedience. b. the agent breached the duty of loyalty. c. it is a gratuitous agency. d. All these are correct. Answer: D Answer: D Answer: D An involuntary petition for bankruptcy can be filed against a: a. non-profit charitable organization. b.
Business Law and The Regulation of Business 11th Edition
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JD 779 Test 1
Tim and his friend are playing catch in the back yard when Tim suddenly turns around and throws the ball over the fence into the neighbor's yard where it breaks the window. This is trespass to real property, even if Tim himself does not go onto the property to get
Business Law and The Regulation of Business 11th Edition
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JD 832 Midterm
If incorrect, which of the following would probably be considered a misrepresentation of a material fact? a. "This is the one that I think is the best buy." b. "This is the best computer on the market." c. "This car has new brakes." d. "These tires will wear like iron." Answer: C Answer: C Answer: C An estate
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JD 849 Final
An agency may impose in its orders sanctions, such as seizing property or revoking a license. Answer: T Answer: T Answer: T Holders of preferred stock with a dividend preference must receive dividends at the end of each corporate fiscal period. Answer: F Answer: F Answer: F Title VII of the Civil Rights Act of 1964, the Americans with
Business Law and The Regulation of Business 11th Edition
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JD 858 Quiz 3
An indorsement "Pay to Jones Construction Company upon completion of the job at No. 10 Park Place" is nonnegotiable. Answer: F Answer: F Answer: F Under the common law, a modification of a preexisting contract must be supported by mutual consideration; under the Code, a contract can be modified without new consideration. Answer: T Answer: T Answer:
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LAW 104
Which of the following can be the basis for an accountant's liability under state law? a. Contract law and negligence, but not criminal law. b. Tort law, contract law, and criminal law. c. Negligence, criminal law, and strict liability. d. Intentional torts and negligence, but not contract law. Answer: B Answer: B Answer: B While driving his car
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LAW 136
Andrew agreed to exchange something clearly without value to enter a contract with Milt. The contract will not fail for lack of consideration because, if the parties agree to the exchange, the courts will not be concerned about whether the consideration is 'adequate.' Answer: F Answer: F Answer: F In a unilateral contract, a
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LAW 158 Quiz 3
Carmen needs quick cash, so she hits upon a scheme. She tells Frank she's collecting for Laotian refugees. Frank writes a check for $100 payable to the order of Carmen. Carmen indorses the check and delivers it to Joanne, who doesn't know of Carmen's scam, for $90 cash. Joanne gives it
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LAW 164
In equal protection cases involving economic regulation, the courts use the rational relationship test. Answer: T Answer: T Answer: T To qualify as an innocent landowner under SARA, a person must have, at the time of acquiring the property, asked about the previous ownership and uses of the property. Answer: T Answer: T Answer: T Notice of a
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LAW 173 Quiz 2
A completely handwritten will is valid only if witnessed. Answer: F Answer: F Answer: F A partner can withdraw his partnership capital at any time. Answer: F Answer: F Answer: F A right of redemption of a mortgage cannot be defeated by operation of law. Answer: F Answer: F Answer: F A "Vertical Restraint Index" is a measure of relative market share. Answer:
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LAW 180 Homework
Accountants are exempt from civil suits based on the Racketeering Influenced and Corrupt Organizations Act. Answer: F Answer: F Answer: F What is the doctrine of promissory estoppel, and when is it used? Answer: Promissory estoppel is a doctrine used to enforce noncontractual promises where there has been justifiable reliance on the promise and justice
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LAW 183 Test
The right of dissent results in payment of: a. a damage award to the shareholder. b. a price in exchange for shares. c. treble damages for violation of the charter. d. a bonus to dissenting shareholders. Answer: B Answer: B Answer: B An offer that is made by a merchant under the UCC and is irrevocable even though
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LAW 200 Midterm
The Fair Labor Standards Act regulates child labor in agricultural employment. Answer: F Answer: F Answer: F Governments can use nontariff barriers to give local industries a competitive advantage. Answer: T Answer: T Answer: T Administrative hearings are held before a jury, just as are court hearings. Answer: F Answer: F Answer: F By the majority view, a minor need only return
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LAW 217 Test 2
Ad substantiation, as required by an FTC policy statement, requires a company to survey consumers to test their perception of a product. Answer: F Answer: F Answer: F An agent will not be authorized to act for a principal unless he receives some consideration for the task. Answer: F Answer: F Answer: F Discuss the similarity between a
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LAW 232 Test
The state may bring an action for involuntary dissolution of a company if the corporation has not paid its annual franchise tax. Answer: T Answer: T Answer: T A preliminary hearing is held in a criminal case to determine whether there is probable cause to believe the defendant is the one who committed the
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LAW 267 Quiz 1
A professor photocopies fifty copies of a copyrighted chart to distribute to his students in class. This is a clear violation of the Copyright Act. Answer: F Answer: F Answer: F After the coronation of Edward VII was postponed and parties who had entered into contracts in anticipation of the event filed numerous suits,
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LAW 290 Quiz 1
Voidable preferences include all of the following EXCEPT: a. a transfer of property of the debtor to or for the benefit of a creditor. b. payment of taxes owed to a governmental unit. c. a transfer of property while the debtor was insolvent. d. a transfer that enables a creditor to receive more than
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LAW 318
The Bill of Rights was approved by the first Congress to guarantee that the federal government would not abuse its powers. Answer: T Answer: T Answer: T The United States Postal Service plays an important role in consumer protection as it files many cases to close down mail fraud operations. Answer: T Answer: T Answer: T The Council
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LAW 358 Test
An operating agreement is adopted by members of most limited liability companies. Answer: T Answer: T Answer: T Mary receives her monthly bank statement on December 30th. She looks at it quickly, then sets it aside. Three days later, she examines it again and discovers a forged check. What must she do to avoid
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LAW 361 Final
Describe the crime of false pretenses and name and define four crimes similar to false pretenses that were discussed in the textbook. Answer: False pretenses is the crime of obtaining title to property of another by making materially false representations of an existing fact with knowledge of their falsity and with
Business Law and The Regulation of Business 11th Edition
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LAW 368
The RULPA specifies the events that will trigger a dissolution, after which the limited partnership's affairs must be liquidated. These events include which of the following? a. The expiration of the time period specified in the certificate. b. The unanimous written consent of all the partners. c. A limited partner's withdrawal from the
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LAW 393 Midterm
The capacity to be a principal, and thus to act through an agent, depends on the capacity of the principal to do the act. Answer: T Answer: T Answer: T The Securities Act of 1933 regulates tender offers and proxy solicitations. Answer: F Answer: F Answer: F A license is the limited right to remove the produce from another's
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LAW 403 Quiz 1
Clayton Tile has a secured bond on specific property of Ceramic Creations, Inc. Clayton's claim against Ceramic is enforceable only against that specific property. Answer: F Answer: F Answer: F The remedy of identification of goods to the contract enables the seller to also exercise the remedy of resale of goods. Answer: T Answer: T Answer: T A
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LAW 411 Quiz 3
A partner is criminally liable for the crimes of her partners. Answer: F Answer: F Answer: F The difference between common and preferred stock is that the latter is a debt instrument, whereas the former represents an equity interest in the company. Answer: F Answer: F Answer: F If the buyer is insolvent and has not paid for
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LAW 419 Test 2
What is a condition? Give an example of each of the following types of conditions: condition precedent, condition concurrent, conditions subsequent. Answer: A condition is an event whose happening or nonhappening affects the duty of performance.Condition precedent: If William is to buy Anna's land for $50,000, provided William can obtain financing
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LAW 422 Homework
For a person to acquire an easement, he must have the permission of the owner to use the land. Answer: F Answer: F Answer: F John and Megan are at a crowded theater. In the press of people exiting the theater, John accidentally steps on Megan's big toe and breaks it. Megan can sue John
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LAW 571
General contract law states that contracts that have to be in writing must: a. specify the parties to the contract. b. specify the subject matter and essential terms. c. be signed by the party to be charged or by his/her agent. d. All of the above. Answer: D Answer: D Answer: D The SEC established a computer system
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LAW 581 Quiz 1
A copyright would protect a photograph. Answer: T Answer: T Answer: T A thief stole Harold's car and installed a DVD player in it. Later the police caught the thief and returned the car to Harold. Harold now owns the DVD player by accession. Answer: T Answer: T Answer: T The causes of dissolution and the priorities in
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LAW 596
The Federal Trade Commission may issue a cease and desist order having the effect of an injunction. Answer: T Answer: T Answer: T If the debtor is an individual whose debts are primarily consumer debts, the trustee may not avoid any transfer, within 90 days of bankruptcy, of property valued at less than $600. Answer: T Answer:
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LAW 619 Test 2
The business law topics of contracts, agency, property, and trusts are governed primarily by the common law. Answer: T Answer: T Answer: T If the SEC requires an amendment to a registration, the twenty-day waiting period begins again. Answer: T Answer: T Answer: T A proxy is revocable to the same extent as an agency. Answer: T Answer: T Answer: T The
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LAW 626 Midterm 1
A gratuitous agent has a duty of loyalty but is not liable for any harm caused by his careless performance. Answer: F Answer: F Answer: F Sean breaches an agreement in his employment contract with Inmett Corporation by also working for Inmett's major competitor. Sean's promise to Inmett of his exclusive personal services may
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LAW 629 Quiz 2
A plaintiff who has not sustained any loss resulting from the defendant's breach of contract cannot recover any damages. Answer: F Answer: F Answer: F If an agent who has actual authority and receives reimbursement does not tell the third party that he is working in an agency capacity, the principal is still bound. Answer:
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LAW 636
To establish trespass to land, a plaintiff: a. must show an invasion that interferes with the plaintiff's right of exclusive possession of property that is at least an indirect result of the defendant's actions. b. need not show the plaintiff's right to exclusive possession, but must show that the defendant's actions were unreasonable. c.
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LAW 648
__________ is a provision excusing one party from liability. a. Procedural unconscionability b. An exculpatory clause c. Substantive unconscionability d. Tortious conduct Answer: B Answer: B Answer: B Which of the following is correct regarding a foreign corporation? a. A foreign corporation is incorporated in a foreign country. b. Failure to obtain a certificate of authority to transact business in
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LAW 652 Midterm 1
What is a statute of repose? Why have some states adopted such statutes? Answer: A statute of repose is an enactment to limit the time period for which a manufacturer is liable for injury caused by its product. After the statutory time period has elapsed, a manufacturer ceases to be liable
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LAW 654 Homework
Explain the reasons why the accountability of the management of a corporation is a cultural issue. Answer: A relatively small number of large, publicly held corporations own the great bulk of the industrial wealth in this country. This concentration of control over wealth and power raises social, economic, and ethical concerns.
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LAW 664 Midterm 1
A fraudulent misrepresentation: a. must be material to obtain rescission. b. must be material to recover damages. c. may be innocent, meaning the representation was made without knowledge of its falsity but with due care. d. need not have the element of scienter. Answer: B Answer: B Answer: B The ICJ is: a. the Internal Court of Jurisdiction of
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LAW 677 Midterm
Strict liability can be avoided where: a. the seller uses due care and diligence in preparing the goods. b. the seller manufactures products of this type on a regular basis. c. the seller gives a disclaimer of the defect to the buyer in the sales contract. d. the product was not in the same
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LAW 707 Midterm 1
If the buyer received goods on credit while he was insolvent by misrepresenting in writing his solvency, the seller is able to reclaim the goods only if the seller makes a demand on the buyer within ten days after the buyer has received the goods. Answer: F Answer: F Answer: F Explain what is
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Exam Prep
LAW 739 Midterm 1
Which of the following terms would indicate a destination contract? a. F.O.B. city of buyer. b. F.O.B. city of seller. c. C.I.F. d. F.A.S. seller's port. Answer: A Answer: A Answer: A __________ is/are any property other than an interest in real property. a. Goods b. Personal property c. Tangible property d. None of the above. Answer: B Answer: B Answer: B When can an accountant
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LAW 760 Midterm 2
Dissociation refers to those situations in which the RUPA requires a partnership to wind up and terminate. Answer: F Answer: F Answer: F A valid contract is one that meets all of the requirements of a binding contract. Answer: T Answer: T Answer: T In a sale of goods, the seller's tender of performance does not have to conform
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LAW 760 Test
A resulting trust depends on a contract or agreement as evidenced by the parties' acts. Answer: F Answer: F Answer: F Andria, an attorney, has a personal injury case which is set for trial next week. She needs a good doctor to testify on behalf of her client, so she contacts Dr. Wood who
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LAW 814 Midterm
Virtually all shareholders who vote for directors do so through the use of a proxy. Answer: T Answer: T Answer: T To ratify a contract, the principal must have knowledge of all material facts and may ratify either the entire contract or the part that is advantageous to the principal. Answer: F Answer: F Answer: F Marlene owes
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LAW 824 Quiz
In order for Mitchell, the owner of a cement factory, to obtain a permit from the Colorado Environmental Protection Agency in a PSD area, he must demonstrate that his factory will utilize the best available control technology. Answer: T Answer: T Answer: T The board of directors generally manages the day-to-day affairs of the company. Answer:
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Exam Prep
LAW 830 Quiz
Nonfraudulent representation is made without scienter. Answer: T Answer: T Answer: T The State of Minnesota has been negotiating with the Canadian government on issues involving acid rain and eventually reaches an agreement with Canadian officials. This is a valid treaty under the United States Constitution. Answer: F Answer: F Answer: F Sunset Properties, Inc. hires William to manage
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LAW 832 Test 2
Garnishment is only a post-judgment remedy. Answer: F Answer: F Answer: F After passage of a week, the buyer of six crates of strawberries will be deemed to have accepted the goods. Answer: T Answer: T Answer: T A liquidated damages provision sets forth the amount of damages the parties agree in advance to be paid in the
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LAW 842 Quiz 3
An accountant who willfully violates Section 11 of the 1933 Act is subject to fines of up to $100,000 or imprisonment of not more than three years, or both. Answer: F Answer: F Answer: F Morris ordered 1,000 sq. ft. of green carpet from RS Company. In error, RS Company shipped 1,000 sq. ft. of
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LAW 856 Midterm 1
Bill would like to propose to the board of directors of Bizmarc, Inc., that the corporation distribute one percent of its pre-tax yearly income to feed the poor. To Milton Friedman and others, Bill's proposal might be considered unethical, because it violates the purpose for which the corporation was established. Answer:
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Exam Prep
LAW 868 Test
The law establishes a test for determining whether a partnership has been formed. The test includes which of the following? a. An association of two or more persons. b. Conducting a business not necessarily for profit. c. That the partnership agreement is filed with the Secretary of State. d. The sharing of gross returns. Answer:
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Exam Prep
LAW 869 Quiz 1
The UCC permits a seller to limit or modify the buyer's remedies for breach of warranty: a. in all cases. b. except for unconscionable limitations or for exclusions of consequential damages. c. in no cases, as this would be contrary to public policy. d. except when the seller seeks to limit the time within
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Exam Prep
LAW 883 Midterm
Enforcement and interpretation of the Truth-in-Lending Act was given to the: a. Commerce Department. b. Justice Department. c. Federal Trade Commission. d. Federal Reserve Board. Answer: D Answer: D Answer: D Jerry received a check from McGregory Corporation as a dividend on his preferred shares. Two days later, one of the corporate directors called him and said he
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LAW 887 Midterm
The majority of states allow the injured party who has been induced to enter into a contract by fraud to recover only "out-of-pocket" damages equal to the difference between the value of what she has received and the value of what she has given for it. Answer: F Answer: F Answer: F Electronic surveillance
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LAW 899
The attorney general of the state of incorporation may bring a court action to dissolve a corporation if the corporation obtained its charter through fraud. Answer: T Answer: T Answer: T The warranty of merchantability is found in Section 402A of the Restatement of the Law of Torts. Answer: F Answer: F Answer: F The right of the
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LB 104 Final
Rule 10b-5 applies to: a. only a buyer of a registered security. b. only a seller of a registered security. c. any person who buys or sells only a registered security. d. any person who buys or sells any security. Answer: D Answer: D Answer: D Aunt Ellie promises her 21-year-old nephew, Robbie, that she will pay him
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LB 108 Test 2
An important and fundamental part of administrative law is the limits imposed by judicial review upon the activities of administrative agencies. Answer: T Answer: T Answer: T Increased production costs will allow the seller to avoid a contract based upon commercial impracticability. Answer: F Answer: F Answer: F All bills of lading are negotiable and may be transferred
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LB 109 Test 2
Which of the following need NOT be included in the certificate filed by a limited partnership? a. The name of the limited partnership. b. The name and address of the agent for service of process. c. The names and addresses of each of the limited partners. d. The name and business address of each
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Exam Prep
LB 122 Quiz 3
About half of state statutes and the amended ULLCA have eliminated a member's dissociation as a mandatory cause of dissolution of an LLC. Answer: T Answer: T Answer: T Anna employs Mark to purchase for her a suitable site for a roller rink. Mark owns a huge site himself and sells it to Anna
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LB 162 Final
Which of the following constitutes computer crime? a. Theft or vandalism of computer hardware, software, or secrets. b. Distributing child pornography via computer. c. Implanting a malicious code. d. All of the above. Answer: D Answer: D Answer: D George has been declared incompetent by the court and is under the care of his sister. Unknown to his
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Exam Prep
LB 185 Final
A corporation may purchase its own shares only out of earned surplus unless the articles of incorporation or the shareholders permit purchase out of capital surplus. Answer: T Answer: T Answer: T Misuse or abuse of the product is a defense to an action brought under 402A of the Restatement (Second) of Torts. Answer: T Answer: T Answer:
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LB 199 Midterm 2
Infringement is the unauthorized use of a trademark of another or use of a substantially indistinguishable mark. Answer: T Answer: T Answer: T What rights are protected by the First Amendment? What sorts of speech are constitutionally protected? Explain. Answer: The First Amendment prohibits Congress from making laws respecting the establishment of religion or
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LB 233 Midterm 2
The definition of business ethics includes which of the following points? a. It is a branch of applied ethics. b. It is fully codified in federal statutes. c. It has a central authority and universal standards. d. All of these are correct. Answer: A Answer: A Answer: A Under the common law, the __________ must be the mirror
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LB 239
A purchaser of a house who buys the property 'subject to" the mortgage is not personally liable for the mortgage, nor is he a surety for the mortgage obligation. Answer: T Answer: T Answer: T A corporation is a creature of the state and may be formed only by substantial compliance with a state
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LB 253 Quiz 3
In Alzado v. Blinder, Robinson & Company, Inc., Blinder, Robinson & Co. was found liable to partnership creditors as a general partner because it assumed control of the business and thus lost its limited partnership status. Answer: F Answer: F Answer: F A shareholders' written agreement, unlimited in duration, to vote in a specified
Business Law and The Regulation of Business 11th Edition
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Exam Prep
LB 268 Midterm 1
Juanita works for Chevco but owns no Chevco stock. She buys 10 shares of a new issue of company stock as a savings plan and afterward receives the signed registration statement, which contains an untrue statement of material fact. Because she works for Chevco, she recognizes the error. Can she sue
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Exam Prep
LB 273
A ninety-year-old patient walked away from a nursing home and wandered onto some nearby railroad tracks. Once on the tracks, the patient stumbled and sprained his ankle. A few minutes later a train approached. The engineer saw the man on the track and could have stopped, but the train's brakes
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Exam Prep
LB 323
The common law system is used in most of Europe, Scotland, and Latin America. Answer: F Answer: F Answer: F Which of the following would be considered to be a misrepresentation of a material fact for purposes of establishing fraud in the inducement? a. A statement of value, such as "This is the best car in
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Exam Prep
LB 340 Quiz
Sam writes a check drawn on his account at First Bank to State University to pay his tuition. In this case: a. Sam is the drawer. b. the university is the drawee. c. the bank is the payee. d. Sam is the maker. Answer: A Answer: A Answer: A Bodily contact that is harmful or offensive can give
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Exam Prep
LB 355 Quiz 2
Employers are subject to civil, but not criminal, penalties for violations of the Occupational Safety and Health Act. Answer: F Answer: F Answer: F Fraud in the inducement will render an agreement void. Answer: F Answer: F Answer: F A person cannot be guilty of trespass unless he or she intended to violate the other's rights. Answer: F Answer: F Answer:
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Exam Prep
LB 374 Quiz 1
Which of the following debts would be discharged in bankruptcy? a. Consumer credit loans for a stove. b. Property taxes on a beach house. c. Student loans maturing one-year prior to bankruptcy filing. d. Alimony payments past due. Answer: A Answer: A Answer: A Which of the following determines when to declare dividends and in what amount? a. The
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Exam Prep
LB 440 Quiz 2
The Magnuson-Moss Warranty Act contains disclosure and labeling requirements for sellers of consumer products containing a written warranty. Answer: T Answer: T Answer: T An "I.O.U." is a negotiable instrument. Answer: F Answer: F Answer: F A stepchild will not ordinarily inherit under intestacy statutes unless legally adopted. Answer: T Answer: T Answer: T Richard agrees to supply Henry with all his
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LB 446 Quiz
The U.S. Constitution reserves to the states or to the people: a. powers also delegated to the federal government by the Constitution. b. the powers the Constitution does not prohibit to the states. c. police power. d. employee safety matters. Answer: B Answer: B Answer: B An agent is not normally liable on a contract he makes with
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Exam Prep
LB 452
A gratuitous assignment is revocable by the assignor. Answer: T Answer: T Answer: T The Truth-in-Lending Act has disclosure requirements for both consumer loans and credit sales over $25,000. Answer: F Answer: F Answer: F Usually in cases where there is a known principal, the agent has liability for, and rights under, contracts made on behalf of a
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Exam Prep
LB 453 Quiz 3
D drew a $100 check on ABC Bank payable "to the order of P." P cashed the check at First Bank. First Bank is an agent of P until the drawee bank pays the check. Answer: T Answer: T Answer: T States have authorized the formation of limited liability companies. Answer: T Answer: T Answer: T Except in
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Exam Prep
LB 486
Criminal sanctions for accountants are limited to punitive fines. Answer: F Answer: F Answer: F For a misrepresentation to be material, it must be likely to induce a reasonable person to manifest assent or the maker must know that it would be likely to induce the recipient to do so. Answer: T Answer: T Answer: T The purpose of
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LB 493 Midterm
Robert paid William $1,000 for a rare first edition of an Edgar Allen Poe novel. The sales contract states that the book is to be delivered within ten days. William, however, refused to deliver the book as promised. In order to sue for specific performance under the UCC, Robert must
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Exam Prep
LB 496 Homework
In the case of Hochster v. De La Tour, the plaintiff was allowed to treat the repudiation by De La Tour as breach of contract and immediately bring suit. Answer: T Answer: T Answer: T Mediation, like arbitration, is often a compulsory process in which the mediator can render a decision that is binding
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LB 506
In some states, the vesting of a third party's rights occurs only when the third party learns of the contract and assents to it. Answer: T Answer: T Answer: T Only the intentional destruction of personal property and not the use of the property in an unauthorized manner can give rise to a cause
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LB 514
The duties of a trustee are: a. to carry out the purposes of the trust. b. to act with prudence and care in the administration of the trust. c. to exercise a high degree of loyalty toward the beneficiary. d. All of the above. Answer: D Answer: D Answer: D a. Under the Code, when can an injured
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LB 521
A fiduciary duty, arising out of a relationship of trust and confidence, is one of utmost loyalty and good faith. Answer: T Answer: T Answer: T The laws of the state in which a foreign limited partnership is organized govern its organization, its internal affairs, and the liability of its limited partners. Answer: T Answer: T Answer:
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LB 552
a. State and local governments require licenses for certain businesses and professional activities. Explain the difference between a regulatory licensing statute and a licensing statute enacted to raise revenue. b. Explain the significance in contract law between a regulatory license and a revenue raising license. c. Give an example of each type
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LB 567
Once a Chapter 13 plan has been confirmed, it may: a. be modified at the debtor's request but only if the trustee agrees. b. be modified only if all unsecured creditors agree. c. not be modified. d. be modified at the request of the debtor, the trustee, or a holder of an unsecured claim. Answer:
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LB 575 Midterm
An indorsement in trust creates a trust for the benefit of himself or others. Answer: T Answer: T Answer: T Some states prescribe by statute a time period, usually one year, in which a person who reached the age of majority may still disaffirm contracts made while a minor. Answer: T Answer: T Answer: T Explain how the
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Exam Prep
LB 618
Which of the following is empowered to issue industry-wide safety standards for consumer products? a. UCCC. b. RESPA. c. FCCPA. d. CPSC. Answer: D Answer: D Answer: D The person who files or commences a civil lawsuit is the: a. plaintiff. b. defendant. c. prosecuting attorney. d. attorney general. Answer: A Answer: A Answer: A Gerhardt is the president of the Pacer Bicycle Company. He also
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LB 625 Test 2
One hundred crystal flower vases have been identified to the contract and a down payment of $1,000 of the $10,000 purchase price has been paid. If the seller becomes insolvent, the buyer may still pay $9,000 and get the goods. Answer: T Answer: T Answer: T A contract is a binding agreement that the
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LB 628 Quiz
On April 18, Marco bought a sailboat from a local marina. The boat was defective and did not turn about properly. Marco used the boat extensively all summer and the boat was no longer in the same condition as when it was bought. By September 30, Marco had waived his
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LB 679 Quiz Rachel Agrees To Sell
Rachel agrees to sell Bill goods for $2,000. The value of the goods accepted is $1,500. If the goods had been as warranted, their value would have been $2,600. What are the buyer's damages for breach of warranty? a. $500. b. $600. c. $1,000. d. $1,100. Answer: D Answer: D Answer: D Match each statement with the correct
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LB 681 Final
Discuss preemptive rights. Are preemptive rights more important in a closely held corporation or in a publicly held corporation? Explain. Answer: Preemptive rights are a shareholder's rights to purchase a pro rata share of new stock. Preemptive rights are more important in a closely held corporation than in a publicly traded
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LB 697
In which of the following ways does a state constitution differ from the U.S. Constitution? a. State constitutions are often more restrictive of rights than the U.S. Constitution. b. A state constitution can guarantee rights beyond those provided in the U.S. Constitution. c. A state constitution is generally amended less frequently than the
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LB 708 Midterm 1
The UCC applies to real estate mortgages and trust deeds since they are security interests. Answer: F Answer: F Answer: F The bankruptcy definition of "insolvency" is a financial condition such that the sum of one's debts exceeds the sum of all one's property at fair valuation. Answer: T Answer: T Answer: T The UCC definition of "unconscionable"
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LB 754 Homework
A finance lease is a special type of lease transaction that generally involves three parties instead of two. Answer: T Answer: T Answer: T An agreement for an illegal substance will be enforced by the courts if all other elements of the contract are present. Answer: F Answer: F Answer: F Ken, a research chemist, has been promised a
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Exam Prep
LB 819 Quiz
The Revised Act was amended in 2002 to provide: a. conversion procedures permitting a corporation to change its state of incorporation, thus allowing a foreign business to become a domestic business. b. domestication procedures permitting a foreign partnership or LLC to become a domestic business corporation. c. domestication procedures permitting a domestic business
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LB 849 Quiz 3
Leases of personal property exceed $100 billion annually and are governed by Article 2A of the UCC. Answer: T Answer: T Answer: T Jared, a citizen of Missouri, brings suit in federal court against Cryden Corp., which has its principal place of business in Kansas. The court in this diversity of citizenship suit must apply
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LB 860 Quiz 2
In order to be sufficient, an agreement required to be written under the statute of frauds must be signed at the bottom and notarized. Answer: F Answer: F Answer: F Scienter is the element of fraud that requires that the misrepresentation must have been known by the one making it to be false, although
Business Law and The Regulation of Business 11th Edition
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Exam Prep
LB 861 Test 2
Identify what law would govern: (a) a sale of a computer between a U.S. company and a U.S. consumer; (b) an insurance policy sale between a U.S. company and a U.S. consumer; and (c) a sale of manufactured goods between a U.S. manufacturer and a buyer in another country. Answer: The
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Exam Prep
LB 878 Homework
The Code has expanded the rights of good faith purchasers with respect to sales by minors. Answer: T Answer: T Answer: T If no place of tender is indicated by the contract, delivery is presumed to be made at seller's place of business. Answer: T Answer: T Answer: T Unless otherwise agreed, an agent making a contract for
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LWB 158
If Gene mistakenly hits Audrey with his truck and kills her, when he intended to hit and kill Cerise, his intent to kill Cerise is transferred to Audrey, regardless of whether he even knew Audrey, for the purpose of fulfilling the mental element of the crime. Answer: T Answer: T Answer: T The difference
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344913
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LWB 159 Test 1
Under the Second Restatement, the bankruptcy of the principal terminates, without notice, the power of an agent to affect the principal's property that passes to the bankruptcy trustee. Answer: T Answer: T Answer: T Bailed property must be tangible. Answer: F Answer: F Answer: F Compare the liability of an intoxicated person to that of a person who
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LWB 179 Final
Under FTC regulations and state legislation, a seller may not advertise goods at one price and then raise the price once demand has been stimulated. Answer: T Answer: T Answer: T Affirmative action generally means active recruitment of a designated group of applicants. Answer: T Answer: T Answer: T Like domestic law, international law can be easily enforced,
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LWB 179 Homework
All but which one of the following is a purpose of bankruptcy legislation? a. To preserve existing business relations. b. To punish recalcitrant debtors. c. To bring about a quick, equitable distribution of the debtor's property among creditors. d. To allow rehabilitation of debtors. Answer: B Answer: B Answer: B In Saudi Arabia v. Nelson, the court held:
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LWB 186 Homework
What activities give rise to strict liability and what defenses are available to strict liability? Answer: Strict liability, or liability without fault, arises from: (a) performing abnormally dangerous activities; (b) keeping animals; and (c) selling defective, unreasonably dangerous products.Abnormally dangerous activities are those that: (a) necessarily involve a high degree of
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LWB 191 Midterm 2
All price discrimination is illegal under the Robinson-Patman Act. Answer: F Answer: F Answer: F All conversions are trespasses but not all trespasses are conversions. Answer: T Answer: T Answer: T A duty may not be delegated if there is an express provision in a contract against delegation. Answer: T Answer: T Answer: T Renunciation is a statutory right of a surviving
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LWB 209 Midterm
A federal agency that wishes to adopt administrative rules must do so in compliance with the: a. Administrative Procedures Act. b. U.S. Constitution. c. agency's enabling statute. d. All of the above. Answer: D Answer: D Answer: D The reasonable person standard is: a. external and objective. b. external and subjective. c. internal and objective. d. internal and subjective. Answer: A Answer: A Answer: A The
Business Law and The Regulation of Business 11th Edition
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LWB 237 Quiz 2
Brad doesn't like Carl and especially dislikes Carl's new felt hat, so he intentionally knocks it off Carl's head in order to embarrass Carl. Brad has committed a battery. Answer: T Answer: T Answer: T Discuss the types of deeds that can be used to transfer title. Answer: Warranty deeds, special warranty deeds, and quitclaim
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LWB 244 Quiz 3
The Securities Enforcement Remedies and Penny Stock Reform Act of 1990 granted the SEC the power to issue cease and desist orders. Answer: T Answer: T Answer: T All employees are agents, but not all agents are employees. Answer: T Answer: T Answer: T A possessor of land must warn licensees of dangerous conditions of which the possessor has
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LWB 257 Midterm 1
The FTC has the power to seek in a federal district court a preliminary injunction, pending completion of administrative proceedings, whenever the agency has reason to believe that a person has been violating FTC rules. Answer: T Answer: T Answer: T The purpose of the Office of Federal Contract Compliance Programs is to require
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LWB 274 Test 2
Intoxicated persons are liable in quasi-contract for necessaries furnished during their incapacity. Answer: T Answer: T Answer: T The recovery for a lessee's wrongful repudiation of a lease is the difference between the present value of the old rent due under the original lease and the market rent. Answer: T Answer: T Answer: T Pat told her friends that
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LWB 275
Which of the following is NOT a purpose of federal securities regulation? a. To ensure that only worthwhile securities are sold in interstate commerce. b. To ensure adequate disclosure by issuers of securities. c. To ensure that inside information is not abused. d. To prevent the use of fraud in the marketing of securities. Answer:
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LWB 290 Test 2
An express warranty may consist of a sample. Answer: T Answer: T Answer: T Under the Revised Act, the filing of the articles of incorporation by the Secretary of State is conclusive proof that the incorporators have satisfied all conditions precedent to incorporation so that a shareholder or creditor would be unable to challenge the
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LWB 303 Test 2
Sandy's private secretary promises not to disclose the contents of a letter she typed if Sandy will give her the next day off with pay. If the secretary takes the day off, Sandy does not have to pay her for the day. Answer: T Answer: T Answer: T All states have adopted the Uniform
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LWB 304 Quiz 3
A promissory note is an instrument that involves three parties in three capacities. Answer: F Answer: F Answer: F The courts may not create implied trusts. Answer: F Answer: F Answer: F The transfer of real estate requires consideration to be valid. Answer: F Answer: F Answer: F The principal objective of antitrust law governing mergers is to maintain competition. Answer: T Answer: T Answer:
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LWB 313
Contributory negligence is a defense to a warranty of merchantability cause of action. Answer: F Answer: F Answer: F Bradley buys a television set that turns out to be stolen. He can sue the seller for breach of warranty. Answer: T Answer: T Answer: T Explain what may constitute a material breach and list the several basic principles
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LWB 392 Quiz 1
Manuel applied for a variance from the local zoning ordinance in order to build a building. His neighbor, Sandra, appeared before the zoning board to speak in opposition to the application. At the hearing, Sandra testified under oath and made several untruthful statements regarding Manuel's character which she believed, but which
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LWB 413
Obligations contingent upon the happening or nonhappening of an event not certain to occur are known as conditional promises. Answer: T Answer: T Answer: T The courts have interpreted the Sherman Act as prohibiting all monopolies. Answer: F Answer: F Answer: F A depositary bank is any bank handling an item for payment. Answer: F Answer: F Answer: F To be a
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LWB 417
A shareholder who opposes a fundamental change to the corporation must make a written demand within the prescribed time period in order to be entitled to payment for his shares. Answer: T Answer: T Answer: T The Civil Rights Act of 1991 provides that victims of sex discrimination no longer face limits on compensatory
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LWB 425 Test
The most important federal statutes governing hazardous substances include: a. SARA. b. CEQ. c. FIFRA. d. Both (a) and (c). Answer: D Answer: D Answer: D Which of the following is NOT personal property? a. Trees that have been cut into logs. b. An air-conditioning system before it is installed in a house. c. Building materials. d. A 140-acre farm. Answer: D Answer: D Answer:
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345450
Exam Prep
LWB 444 Quiz 1
Why do governments impose tariffs? a. To protect domestic industries from foreign competition. b. To raise revenues. c. To attempt to improve their balance of trade. d. Governments impose tariffs for all of the above reasons. Answer: D Answer: D Answer: D The duty of care exercised by a collecting bank in handling an item transferred to it
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LWB 466
Under the RUPA, the partners are jointly and severally liable for all contract obligations of the partnership. Answer: T Answer: T Answer: T Michelle and Margaret agree to form a partnership. The partnership contract between Michelle and Margaret does not have to be in writing in order to be enforceable in the courts. Answer: T Answer: T Answer:
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LWB 488 Quiz
Al, the bus driver on a cross-country Greyhound, kisses Susie, a passenger, while she sleeps. Al could be sued for battery. Answer: T Answer: T Answer: T Restitution requires a return of value to the aggrieved party. Answer: T Answer: T Answer: T Statutory provisions do not protect creditors upon the dissolution of a corporation. Answer: F Answer: F Answer: F Revocation
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Exam Prep
LWB 492 Midterm
To recover on a claim under workers' compensation, the worker must prove the employer was negligent. Answer: F Answer: F Answer: F Divorce or marriage will result in a revocation of a will. Answer: F Answer: F Answer: F The creditor's rights against the principal debtor are determined by the contract between them. Answer: T Answer: T Answer: T Thomas is the treasurer
Business Law and The Regulation of Business 11th Edition
345679
Exam Prep
LWB 517
In the absence of agreement, payment is due at the time and place the buyer is to receive the goods, even though the place of shipment is the place of delivery. Answer: T Answer: T Answer: T Decisions of courts of appeal are published in volumes known as "reports." Answer: T Answer: T Answer: T Victims of racial
Business Law and The Regulation of Business 11th Edition
345627
Exam Prep
LWB 536 Midterm 1
Ron offers to sell Pete his stamp collection. Pete gives Ron $10 to induce Pete into keeping his offer open for a week. If Ron decides on day four of the week that he really does not want to sell to Pete, he can revoke his offer without fear of
Business Law and The Regulation of Business 11th Edition
345787
Exam Prep
LWB 549
If Dan sublets his apartment to Susan for the summer, Susan is primarily liable to pay the landlord the rent. Answer: F Answer: F Answer: F You are assigned to participate on a corporate committee responsible for creating a program to comply with the Federal Organizational Corporate Sentencing Guidelines. What should the program include,
Business Law and The Regulation of Business 11th Edition
345438
Exam Prep
LWB 556
Which of the following is true with regard to contractual relations between the principal and a third party? a. There is no liability on the part of the principal if the agent acts with implied authority. b. An undisclosed principal and the third party are contractually bound if the agent acts within her
Business Law and The Regulation of Business 11th Edition
345480
Exam Prep
LWB 593
Under copyright law, the doctrine of works for hire states that: a. if an employee prepares a work within the scope of her employment, her employer is considered the author of the work. b. if an employee prepares a work within the scope of her employment, the employee is considered the author
Business Law and The Regulation of Business 11th Edition
345648
Exam Prep
LWB 619 Quiz 2
Title VII of the Civil Rights Act of 1964 prohibits employment discrimination on the basis of race, color, gender, religion, or national origin in any employment-related process. Answer: T Answer: T Answer: T The principle of stare decisis gives stability to our system of jurisprudence. Answer: T Answer: T Answer: T An acceptance must be written on
Business Law and The Regulation of Business 11th Edition
345646
Exam Prep
LWB 625 Homework
Land and interests in land are considered "real property." Answer: T Answer: T Answer: T The principal has the duty to provide the employee with reasonably safe conditions of employment and to warn the employee of any unreasonable risks involved in the employment. Answer: T Answer: T Answer: T Discuss the concept of adequacy of consideration. Answer: Adequacy
Business Law and The Regulation of Business 11th Edition
345742
Exam Prep
LWB 629
A check is a draft payable on demand. Answer: T Answer: T Answer: T Jessica at the age of 15 entered into a contract to sell five acres of land to her uncle. She may disaffirm this contract at any time before reaching her majority. Answer: F Answer: F Answer: F Under the Revised Act, a corporation can act
Business Law and The Regulation of Business 11th Edition
345496
Exam Prep
LWB 655 Test 1
If Eilene, a shareholder, sues in a derivative suit, the judgment will be paid to: a. the shareholders as a dividend. b. Eilene directly. c. the corporate treasury. d. the board of directors. Answer: C Answer: C Answer: C If a small manufacturer of vacuum cleaners conditions the sales of its cleaners on the buyer's purchasing only that
Business Law and The Regulation of Business 11th Edition
345453
Exam Prep
LWB 696
The type of authority that arises from acts of the corporation that lead third parties to believe reasonably and in good faith that an officer has the requisite authority is: a. actual express authority. b. actual implied authority. c. apparent authority. d. ratification. Answer: C Answer: C Answer: C Damages a buyer may recover for loss resulting from
Business Law and The Regulation of Business 11th Edition
345765
Exam Prep
LWB 718
Wurst & Wurst is the accounting firm that has been used by the Intercontinental Bank for over twenty years. Tim approached Alfred, a Wurst partner, at a cocktail party. Tim asked about the bank's stability. Although Alfred knew that the bank's stock was overvalued, he felt a considerable amount of
Business Law and The Regulation of Business 11th Edition
344898
Exam Prep
LWB 751 Midterm 2
All of the following may, in general, revoke a will by operation of law EXCEPT: a. subsequent marriage. b. subsequent divorce, as far as a provision in the will of one party for the benefit of the other. c. birth of a child. d. None of the above. Answer: B Answer: B Answer: B The doctrine of respondeat
Business Law and The Regulation of Business 11th Edition
345725
Exam Prep
LWB 763 Quiz 1
A material breach by the seller will discharge the buyer from his obligations under a contract. Answer: T Answer: T Answer: T The Code requires that the affirmations, promises, or descriptions the seller makes be relied on by the buyer to be an express warranty. Answer: F Answer: F Answer: F Under the RMBCA, a pre-incorporation subscription may
Business Law and The Regulation of Business 11th Edition
345761
Exam Prep
LWB 783 Quiz 2
In their contract for the sale of window shades, Lela Window Treatments, Inc. and Shane agree that Lela will have the right to replace any defective goods that are delivered to Shane. This contractual provision will not have any effect because the perfect tender rule of the UCC will control
Business Law and The Regulation of Business 11th Edition
345774
Exam Prep
LWB 826
The student government of State University has a contract with a famous rock band to perform at the university on homecoming weekend. The band cannot assign its rights and delegate its duties under this contract. Answer: T Answer: T Answer: T A transferee who has been a party to fraud affecting the instrument can
Business Law and The Regulation of Business 11th Edition
345811
Exam Prep
LWB 846 Test 2
The "corporate veil" is most likely to be pierced in the case of closely held corporations and in parent-subsidiary relationships. Answer: T Answer: T Answer: T What is the doctrine of liability for a tort connected with a contract? Answer: Minors are generally liable for their torts. However, if a tort and a contract are
Business Law and The Regulation of Business 11th Edition
345647
Exam Prep
LWB 861
A patent last for life, while a copyright ends after fifty years. Answer: F Answer: F Answer: F The SEC would like to adopt some new rules to protect investors. What factors should it consider as part of the administrative process? Answer: Administrative rules can be legislative, interpretative, or procedural. The commission members should
Business Law and The Regulation of Business 11th Edition
345783
Exam Prep
LWB 883
An agreement to sell the entire production of a particular plant is a requirements contract. Answer: F Answer: F Answer: F Farmer Brown brings his crop of wheat to the local grain elevator where it is stored along with the grain of several other farmers. A few months later, the grain elevator declares bankruptcy.
Business Law and The Regulation of Business 11th Edition
345730
Exam Prep
LWB 884
The UCC modifies the common law rule by requiring additional consideration for the modification of a contract. Answer: F Answer: F Answer: F All contracts do not have to be in writing to be enforceable. Answer: T Answer: T Answer: T What is the purpose of the Code remedies for breach of sales contracts? How is this purpose
Business Law and The Regulation of Business 11th Edition
345485
Exam Prep
LWP 109
Which of the following would NOT be a promise statutorily made enforceable without consideration? a. Hawkins, in good faith, changes the quantity of square yards of carpet ordered from Grant Mills. b. Jones promises to pay his cousin's past-due cell phone bill. c. Dodds signs and delivers a waiver of a claim arising
Business Law and The Regulation of Business 11th Edition
345740
Exam Prep
LWP 129 Midterm 2
In a Chapter 11 or 13 proceeding, the bankruptcy estate of an individual includes wages earned after commencement of the proceeding. Answer: T Answer: T Answer: T Objective impossibility occurs if a particular contracting party is unable to perform because of financial inability or lack of competence. Answer: F Answer: F Answer: F For the general trial courts in
Business Law and The Regulation of Business 11th Edition
345460
Exam Prep
LWP 153 Midterm
Cal sprayed pesticide on his crops in a very careful manner on a windless day. Nevertheless, some of the pesticide spray fell on his neighbor's side of the fence and contaminated the cornmeal for the chickens. The chickens died and the neighbor sues. What is the likely result? a. Cal is
Business Law and The Regulation of Business 11th Edition
345457
Exam Prep
LWP 162
Rose is working hard on Arlin's mayoral campaign. She thinks that just a few more votes could win the election, so she promises to pay her friend Violet $50 if she will register and vote for Arlin. Violet does so, but Arlin loses the election, and Rose now refuses to
Business Law and The Regulation of Business 11th Edition
345733
Exam Prep
LWP 173
All jurisdictions have enacted laws making it a crime to write a check when there is not enough money in the account to cover the check. Answer: T Answer: T Answer: T Over the last half-century, the scope of administrative law has expanded enormously because of the increasing complexity of the social, economic, and
Business Law and The Regulation of Business 11th Edition
345793
Exam Prep
LWP 182 Midterm 2
A person who negligently places another person in imminent danger is not liable for injury sustained by a third-party rescuer. Answer: F Answer: F Answer: F Revocation of acceptance requires notice to the seller, whereas rejection does not. Answer: F Answer: F Answer: F Ready Equipment, Inc. authorized and specified in its charter 5,000 shares of stock to
Business Law and The Regulation of Business 11th Edition
345486
Exam Prep
LWP 196 Quiz 3
How may an easement be created? a. By prescription. b. By express reservation. c. By necessity. d. All of the above. Answer: D Answer: D Answer: D Identify the type of indorsement each of the following represents: a. Pay to Bill, for collection. b. Pay to the order of The American Bank for deposit only. c. Pay to Albert, without recourse. d.
Business Law and The Regulation of Business 11th Edition
345498
Exam Prep
LWP 201 Quiz 1
Sara holds 1,000 shares of stock in Starr, Inc., which she purchased based upon financial statements that Travis had prepared. She now realizes that the statements were false and wants to sue Travis for common law fraud. What is Travis's best defense? a. Sara lacks privity of contract. b. Travis gave a broad
Business Law and The Regulation of Business 11th Edition
345755
Exam Prep
LWP 202 Midterm 1
A security interest in consumer goods is always automatically perfected upon attachment. Answer: F Answer: F Answer: F Anne is hired to manage an unincorporated dress boutique owned by Betty. The two agree that Anne will receive one-third of the net profits, which amount is to be paid to her on a monthly basis.
Business Law and The Regulation of Business 11th Edition
345459
Exam Prep
LWP 227
How is 'sovereign immunity" interpreted under U.S. law today? a. It gives absolute immunity to a foreign nation from all U.S. laws. b. It gives immunity to foreign governments for commercial activity carried on in the U.S. by the foreign government. c. It exempts the public acts of a foreign government, such as
Business Law and The Regulation of Business 11th Edition
345677
Exam Prep
LWP 236 Midterm 2
Presentment is excused where the acceptor is undergoing bankruptcy. Answer: T Answer: T Answer: T The statute of frauds has to do with fraud in the inducement of a contract. Answer: F Answer: F Answer: F An implied warranty exists by operation of law. Answer: T Answer: T Answer: T What is a "merchant?" Identify the subject matter of four provisions in
Business Law and The Regulation of Business 11th Edition
345759
Exam Prep
LWP 259
Diane prepared a registration for the first issuance of stock of the Ledmar Corporation. Diane took the assignment very seriously and spent a great deal of time preparing the statement. Two years after the statement was filed, the SEC began to investigate the company and claims that the information in
Business Law and The Regulation of Business 11th Edition
345610
Exam Prep
LWP 261 Homework
Assume there are no provisions in the corporation's articles of incorporation or bylaws regarding quorum requirements. If there are 13 total directors of General Grain Corporation and the minimum number of directors are present to transact business, how many votes normally would be necessary for those present to approve an action
Business Law and The Regulation of Business 11th Edition
345689
Exam Prep
LWP 264 Quiz 3
As long as a decedent's wishes are clear, the formalities of a will need not be strictly met in order for the will to be valid. Answer: F Answer: F Answer: F The Fifth Amendment would protect a defendant from having to give blood samples to the prosecution since it would be a form
Business Law and The Regulation of Business 11th Edition
345785
Exam Prep
LWP 290
The delivery terms "ex-ship" and "no arrival, no sale" indicate that the contract is a shipment contract. Answer: F Answer: F Answer: F Contracts of a ward may be ratified by his guardian during the period of guardianship. Answer: T Answer: T Answer: T It is possible for a seller to have the power but not the right
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345747
Exam Prep
LWP 299 Final
A buyer is obliged to accept conforming goods and to pay for them according to the contract terms. Answer: T Answer: T Answer: T In most states, it is not necessary to record a deed for title to pass to the grantee. Answer: T Answer: T Answer: T An employer's interference with the employee's right to bargain collectively
Business Law and The Regulation of Business 11th Edition
345630
Exam Prep
LWP 308 Quiz 1
Corporations today outnumber unincorporated business associations plus sole proprietorships. Answer: F Answer: F Answer: F The Statutory Close Corporation Supplement to the Model and Revised Acts applies only to corporations having fewer than forty shareholders. Answer: F Answer: F Answer: F 'Dissolution' of a partnership and 'termination'of a partnership are synonymous. Answer: F Answer: F Answer: F Homemade Soup Co. has advertised
Business Law and The Regulation of Business 11th Edition
345626
Exam Prep
LWP 312 Midterm
If a will was burned in an electrical fire that destroyed the testator's home, the will is presumed to be revoked. Answer: F Answer: F Answer: F Some states have broadened their lemon law coverage to include used cars and motorcycles. Answer: T Answer: T Answer: T A reasonable person, as used in the law of torts, is
Business Law and The Regulation of Business 11th Edition
345807
Exam Prep
LWP 333 Test 1
The parol evidence rule applies only to integrated contracts, meaning those in which the parties have assented to the written agreement as the statement of the complete agreement between them. Answer: T Answer: T Answer: T List the implied warranties imposed by law on an assignor who has received value with respect to the assignee
Business Law and The Regulation of Business 11th Edition
345710
Exam Prep
LWP 349
Upon dissolution of a partnership, all authority of a partner to act on behalf of the partnership terminates. Answer: F Answer: F Answer: F A constitution is the fundamental law of a particular level of government, establishing the structure of government and defining the political relationships within it. Answer: T Answer: T Answer: T Bill has loaned Mark
Business Law and The Regulation of Business 11th Edition
345612
Exam Prep
LWP 380
The Revised Act permits the board of directors to adopt certain charter amendments without shareholder action, unless the articles of incorporation provide otherwise. These amendments would include: a. extending the duration of a corporation if it was incorporated when limited duration was required by law. b. changing each issued and unissued authorized share
Business Law and The Regulation of Business 11th Edition
345781
Exam Prep
LWP 415 Homework
Marie owes Nathan $900 and the parties agree that Marie will paint Nathan's house in satisfaction of the debt. The debt is not discharged until Marie performs the substituted agreement by painting Nathan's house. Answer: T Answer: T Answer: T When reviewing factual determinations of an administrative agency, the courts must always use the
Business Law and The Regulation of Business 11th Edition
345743
Exam Prep
LWP 423
Under the UPA, one of the advantages of the partnership form of doing business is continuity of existence. Answer: F Answer: F Answer: F Under a Kantian approach to ethics, a person should not lie to colleagues unless that person supports the right of all colleagues to lie to one another. Answer: T Answer: T Answer: T The
Business Law and The Regulation of Business 11th Edition
344907
Exam Prep
LWP 428 Quiz 3
Sarah has a checking account at First Bank. Orrin steals one of her blank checks, writes a check for $250 to himself, and then forges Sarah's signature. Orrin then indorses the instrument to Paul in payment of a debt. Paul, who does not know of the forgery, presents the instrument
Business Law and The Regulation of Business 11th Edition
345653
Exam Prep
LWP 429 Test
A general partnership is formed without any formality and no documents need be filed with the state. Answer: T Answer: T Answer: T A totten trust is revocable by the creator. Answer: T Answer: T Answer: T Article 9 of the UCC governs financing transactions involving security interests in real property. Answer: F Answer: F Answer: F Delivery of a deed may
Business Law and The Regulation of Business 11th Edition
345638
Exam Prep
LWP 487 Quiz 1
The Restatement Third, Torts, completed and approved in 2004, covers torts that involve economic loss not resulting from physical harm to persons or property. Answer: F Answer: F Answer: F Ordinarily, members of manager-managed LLCs have duties to the LLC and its members by reason of being members. Answer: F Answer: F Answer: F Congress enacted the Norris-LaGuardia
Business Law and The Regulation of Business 11th Edition
345440
Exam Prep
LWP 521 Midterm 2
Larson & Son manufactured welders that frequently malfunctioned, setting clothing on fire and causing serious burns. Larson & Son sold all of its assets to Swenson Co., which continued to manufacture the Larson welder product line. Eighteen months after Swenson's purchase, one of Larson's customers sued Swenson for injuries caused
Business Law and The Regulation of Business 11th Edition
345447
Exam Prep
LWP 563
All of the following are characteristics of a corporation EXCEPT: a. it has perpetual existence. b. it is a legal entity of its own. c. it is able to be sued and to sue. d. it is usually managed by its owners. Answer: D Answer: D Answer: D James threatens to hit Kenneth in the head with a
Business Law and The Regulation of Business 11th Edition
345721
Exam Prep
LWP 566
Briefly discuss legislation relating to computer crimes. Answer: Every state has enacted computer crime laws. At the federal level, the Computer Fraud andAbuse Act, originally passed in 1984, protects computers that facilitate interstate and international commerce and communications. The Act makes it a crime with respect to anycomputer that is used
Business Law and The Regulation of Business 11th Edition
345635
Exam Prep
LWP 566 Quiz
The act-of-state doctrine provides that to maintain international relations and trade, a host country must refrain from imposing its laws on a foreign sovereign nation present within its borders. Answer: F Answer: F Answer: F Jesse purchases 50 shares of Mountain Ridge Corporation stock. Explain what, if any, liability Jesse has to the corporation
Business Law and The Regulation of Business 11th Edition
345780
Exam Prep
LWP 577 Midterm 1
To perfect a security interest in personal property, a financing statement may be filed, eith er before or after the security interest attaches. Answer: T Answer: T Answer: T A voluntary choice from among perfectly legitimate alternatives may in some instances constitute economic duress. Answer: F Answer: F Answer: F A car buyer in the ordinary course of
Business Law and The Regulation of Business 11th Edition
345801
Exam Prep
LWP 613
Carolee, Joanna, and Ellen form Capital City Partnership. Carolee contributes expertise; Joanna, $15,000; and Ellen, $20,000. After a year, Joanna adds $12,000 as a loan. Ten years later, Capital owes $44,000 to creditors, total assets are $112,000, and the partners decide to dissolve the business. How will the assets be distributed, and
Business Law and The Regulation of Business 11th Edition
345735
Exam Prep
LWP 658 Test 1
What is the basic purpose of the World Trade Organization (WTO)? Answer: The basic purpose of the World Trade Organization is to facilitate the flow of trade by establishing agreements on potential trade barriers such as import quotas, customs, export regulations, anti-dumping restrictions (the prohibition against selling goods for less than
Business Law and The Regulation of Business 11th Edition
345617
Exam Prep
LWP 660 Quiz
An obligation imposed by law where there has been no agreement or expression of assent by word or act on the part of either party involved is a(n): a. implied in fact contract. b. express contract. c. void contract. d. quasi contract. Answer: D Answer: D Answer: D Which of the following is NOT true regarding specific performance? a.
Business Law and The Regulation of Business 11th Edition
345489
Exam Prep
LWP 669 Final
Which of the following is not correct regarding the relationship between an independent contractor and a principal? a. The contractor is liable under respondeat superior. b. The contractor generally contracts to perform services but is not controlled by the principal. c. The right of control is the essential and often decisive factor in
Business Law and The Regulation of Business 11th Edition
345688
Exam Prep
LWP 686
A draft involves three parties: a drawer, a drawee, and a payee. Answer: T Answer: T Answer: T Hugo wishes to raise money for his restaurant. He offers to sell stock to his brothers, sisters, aunts, uncles, and cousins. The offering is made by telephone to each of the investors and amounts to a
Business Law and The Regulation of Business 11th Edition
345762
Exam Prep
LWP 781
Neither the common law nor federal law recognizes an accountant-client privilege. Answer: T Answer: T Answer: T A reversion is held by a person other than the grantor or his successors. Answer: F Answer: F Answer: F Substantive unconscionability involves scrutiny by the court for "bargaining naughtiness." Answer: F Answer: F Answer: F The Securities Enforcement and Penny Stock Reform Act of
Business Law and The Regulation of Business 11th Edition
345436
Exam Prep
LWP 811 Midterm 1
The Code greatly alters the common law doctrine of material breach by adopting what is known as the: a. perfect tender rule. b. anticipatory repudiation rule. c. prevention of performance rule. d. discharge by operation of law rule. Answer: A Answer: A Answer: A a. What is the purpose of the Freedom of Information Act? b. To what categories
Business Law and The Regulation of Business 11th Edition
345657
Exam Prep
LWP 821 Quiz 1
A bank is permitted by statute to remove an original paper check from the check collection process and send instead of it a substitute check. Answer: T Answer: T Answer: T A bankruptcy petition may be filed by one creditor of a debtor as long as the debtor owes him more than $14,425 in
Business Law and The Regulation of Business 11th Edition
345611
Exam Prep
LWP 862 Test 2
To accomplish the basic purposes of contract remedies, which of the following limitations have NOT been imposed upon monetary damages? a. Foreseeability. b. Certainty. c. Mitigation. d. Restitution. Answer: D Answer: D Answer: D Steven makes a material misrepresentation of fact regarding his motorcycle to Thelma who agrees to buy the motorcycle based upon the misrepresentation. This contract
Business Law and The Regulation of Business 11th Edition
345678
Exam Prep
LWP 868 Homework
The Revised Act does not consider a transfer of its own stock by ZYX Corporation to its stockholders a distribution. Answer: T Answer: T Answer: T Venue has to do with which court has jurisdiction over the subject matter of a lawsuit. Answer: F Answer: F Answer: F Under the RULPA, a limited partnership may not use a
Business Law and The Regulation of Business 11th Edition
345698
Exam Prep
LWP 870 Quiz 3
The Love v. Hardee's Food Systems, Inc. case dealt with the responsibility of the owner or possessor of property to an invitee to warn of, remove, or barricade a dangerous condition of the premises. Answer: T Answer: T Answer: T The U.S. Supreme Court has eliminated the doctrine that commercial speech is wholly outside
Business Law and The Regulation of Business 11th Edition
345488
Exam Prep
LWP 875 Quiz 1
Which of the following is considered "goods" within the meaning of Article 2? a. An unborn calf. b. A field of corn still in the field. c. Timber which has been removed by the seller. d. All of these are correct. Answer: D Answer: D Answer: D Which of the following must the plaintiff prove in an action
Business Law and The Regulation of Business 11th Edition
345727
Exam Prep
LWP 887 Quiz 2
Define incidental damages and give an example. Answer: Incidental damages are those that arise directly out of the breach, such as costs incurred to acquire the nondelivered performance from some other source. As another example: Agnesemploys Benton for nine months for $30,000 to supervise construction of a factory, but fires him
Business Law and The Regulation of Business 11th Edition
345734
Exam Prep
LWP 892 Midterm
Constructive trusts are generally found where the creator clearly intended a trust to be formed. Answer: F Answer: F Answer: F The Magnuson-Moss Warranty Act is administered by the Federal Trade Commission. Answer: T Answer: T Answer: T How does liability based upon negligence differ from that based upon strict liability? Answer: Liability based upon negligence is liability based
Business Law and The Regulation of Business 11th Edition
345674
Exam Prep
M 117 Midterm
Each partner, unless otherwise agreed, has equal rights in the management and conduct of the business of a general partnership. Answer: T Answer: T Answer: T Any method of combination of corporations that involves issuing shares, proxy solicitations, or tender offers may be subject to federal securities regulation. Answer: T Answer: T Answer: T Describe how a criminal
Business Law and The Regulation of Business 11th Edition
345454
Exam Prep
M 126 Homework
By the concept of ____________, a transferee of a negotiable instrument can acquire greater rights than the transferor had. a. holder in due course b. assignment c. commercial utility d. sight drafts Answer: A Answer: A Answer: A Relationships that may lead to a court's careful scrutinization of contracts between the parties to make sure undue influence was
Business Law and The Regulation of Business 11th Edition
345737
Exam Prep
M 170
Under what conditions do courts impose a constructive trust? Answer: Constructive trusts are imposed by courts to rectify misconduct, to prevent unjust enrichment, or to undo a morally wrongful situation. A court will establish a constructive trust when a confidential relationship has been abused or where actual fraud or duress has
Business Law and The Regulation of Business 11th Edition
345812
Exam Prep
M 179
Legal sufficiency of consideration and adequacy of consideration are virtually synonymous terms. Answer: F Answer: F Answer: F It is common for transactions to involve multiple contracts. Identify at least four contracts that might be involved in Costello's sale of land to Johnston. Answer: Possible contracts include: (a) Costello's contract with a surveyor to specify
Business Law and The Regulation of Business 11th Edition
345800
Exam Prep
M 197
An accountant is negligent if she does not exercise the degree of care a reasonably competent accountant would exercise under the circumstances. Answer: T Answer: T Answer: T If the seller of goods is an expert and gives an opinion with regard to the goods, the seller may be liable for breach of warranty. Answer:
Business Law and The Regulation of Business 11th Edition
345809
Exam Prep
M 214 Homework
Unauthorized signatures include both forgeries and signatures made by an agent without authority. Answer: T Answer: T Answer: T Under the rule in Hadley v. Baxendale, only damages foreseeable at the time of entering into the contract can be recovered. Answer: T Answer: T Answer: T Misty wrote a check to Acme for $220. She is discharged from
Business Law and The Regulation of Business 11th Edition
345613
Exam Prep
M 214 Test 2
Al owes Tracy $500, due June 1. Al, Tracy, and Ted mutually agree that Ted will pay Tracy instead of paying Al the money Ted owes Al, and Al will be discharged from his debt to Tracy. Such an agreement is an example of: a. an accord. b. a novation. c. a satisfaction. d.
Business Law and The Regulation of Business 11th Edition
345675
Exam Prep
M 221 Test 1
Most states have special incorporation statutes governing nonprofit corporations. Answer: T Answer: T Answer: T An indorsement "Pay Alice Adams" is an assignment rather than a negotiation since it lacks words of negotiability. Answer: F Answer: F Answer: F The Bill of Rights restricts the power and authority of the federal government. Answer: T Answer: T Answer: T List the services that
Business Law and The Regulation of Business 11th Edition
345637
Exam Prep
M 236
When one party breaches the sales contract, the Code places the risk of loss on that party. Answer: T Answer: T Answer: T In what three situations will a seller recover the price of goods plus incidental damages? Answer: The Code permits the seller to recover the price plus incidental damages in the following situations:a.
Business Law and The Regulation of Business 11th Edition
345724
Exam Prep
M 250 Final
Within 30 days after relief is ordered, a meeting of creditors must be held, at which the debtor must submit to examination by creditors and the court. Answer: F Answer: F Answer: F If an agent tortiously injures a third party, the third party may not hold the principal personally liable. Answer: F Answer: F Answer: F Phoenix,
Business Law and The Regulation of Business 11th Edition
345656
Exam Prep
M 312
Assignment of a partner's interest will cause dissolution. Answer: F Answer: F Answer: F Under the RUPA, a partner is a co-owner of partnership property. Answer: F Answer: F Answer: F When the agency terminates, the agent's duty of confidentiality continues. Answer: T Answer: T Answer: T Under the common law, a partnership was generally considered to be a legal entity rather
Business Law and The Regulation of Business 11th Edition
345776
Exam Prep
M 316 Test 1
Mala in se crimes are those crimes that are not morally wrong but are declared wrongful by the legislature. Answer: F Answer: F Answer: F Arthur is authorized under a written power of attorney to collect accounts for Peter. Peter dies, and there is no notice given to Tessa, who pays Arthur, as she
Business Law and The Regulation of Business 11th Edition
345790
Exam Prep
M 319 Midterm
When the method used by an offeree to accept is unauthorized, the traditional rule is that the acceptance is effective when received by the offeror, provided that it is received within the time during which the authorized means would have arrived. Answer: T Answer: T Answer: T A letter sent to someone falsely accusing her
Business Law and The Regulation of Business 11th Edition
345684
Exam Prep
M 340 Quiz 3
Agency is a consensual relationship that the principal and agent may form by contract or agreement. Answer: T Answer: T Answer: T The usual method of enforcing a restrictive covenant is by specific performance. Answer: F Answer: F Answer: F Lowell recently graduated from college with a degree in business administration, but has been unable to find a
Business Law and The Regulation of Business 11th Edition
345795
Exam Prep
M 371 Quiz
In many states, judges are elected by the voters for a stated number of years. Answer: T Answer: T Answer: T Buying an instrument for a price less than face value means the buyer had notice of a defense or claim against the instrument. Answer: F Answer: F Answer: F The law does not provide a remedy for
Business Law and The Regulation of Business 11th Edition
345497
Exam Prep
M 376 Midterm 2
Which of the following is NOT covered by the Fair Labor Standards Act? a. Minimum wages. b. Hours of employment. c. Child labor. d. Defined benefit plans. Answer: D Answer: D Answer: D Because documents affecting ownership of property are recorded, a chronological record of transactions concerning the property can be obtained by a(n): a. warranty deed. b. title search. c.
Business Law and The Regulation of Business 11th Edition
345664
Exam Prep
M 382 Test 2
A crime is an act or omission in violation of public law and punishable by the government. Answer: T Answer: T Answer: T The Code follows the doctrine of election of remedies. Answer: F Answer: F Answer: F OPIC was established to facilitate the participation of U.S. private capital and skills in the economic and social development of
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M 437
The rule which permits the jury to infer both negligent conduct and causation from the mere occurrence of certain events is: a. proximate cause. b. res ipsa loquitur. c. causation in fact. d. comparative negligence. Answer: B Answer: B Answer: B A periodic leasehold tenancy may be terminated: a. upon expiration of the period. b. upon 6 months' notice
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M 459 Homework
The Weichert Co. Realtors v. Ryan case found that the parties formed an express contract by mutually manifesting assent to the essential terms. Answer: F Answer: F Answer: F A limited liability company is a relatively new form of unincorporated business association that blends the advantages of both general and limited partnerships, because all its
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M 465 Homework
What party(ies) is/are involved in a suretyship relationship? a. The principal debtor. b. An ancillary bailee. c. Principal bailee. d. All of the above. Answer: A Answer: A Answer: A In the Brentwood Academy v. Tennessee Secondary School Athletic Association case, the U.S. Supreme Court held that: a. state action may be found only if there is such a
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M 499 Test 2
Which of the following is NOT a special relationship giving rise to a duty to act to aid or protect one in peril? a. Hotel and guest. b. Aunt and niece. c. School and student. d. None of these are correct. Answer: B Answer: B Answer: B Sources of federal law include all but which of the following? a.
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M 526 Final
Protected individuals under the Restatement view of tort liability for an accountant include potential investors and the general public. Answer: F Answer: F Answer: F In interpreting a contract, terms which have been separately negotiated are given priority over standardized pre-printed terms. Answer: T Answer: T Answer: T When one partner is notified of any matter relating to
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M 531
Administrative agencies create more legal rules and decide more controversies than all the legislatures and courts combined. Answer: T Answer: T Answer: T The fourth Congress approved ten amendments to the U.S. Constitution, now known as the Bill of Rights, which were adopted on December 15, 1799. Answer: F Answer: F Answer: F What elements need to be
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M 567 Test
The court in Moulton Cavity & Mold Inc. v. Lyn-Flex Ind. held that: a. the sweaters did not conform to the express warranty in the contract. b. if the seller does not perform his contractual obligations exactly, the buyer has the right to reject the goods. c. the Code's perfect tender rule
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M 569 Quiz
Specific performance is an equitable remedy which seeks to compel the party in breach to perform the contract according to its terms. Answer: T Answer: T Answer: T Warrick makes a $10,000 investment in a debenture issued by Wryteway Company. Warrick is now an unsecured creditor of Wryteway Company. Answer: T Answer: T Answer: T Amber asked Trent,
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M 576
Under the CISG, if the buyer fails to perform any obligations, the seller may either require the buyer to pay the price or fix an additional period of time for the buyer to perform. Answer: T Answer: T Answer: T The seller has an insurable interest in goods even though he no longer owns
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M 613
Maria posted several signs in the neighborhood offering $50 for the return of her lost cat. Dave calls to get a description of the cat and tells Maria, "I'll look for your cat." A contract is formed by Dave's call to Maria. Answer: F Answer: F Answer: F Sue has a Bloomingdale's credit card.
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M 621 Quiz
Ownership of real property for a definite time or for the life of a person is a freehold estate. Answer: F Answer: F Answer: F The RUPA requires a central filing of a statement of partnership authority specifying the names of partners authorized to execute instruments transferring real property held in the name of
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M 646
Bob's brother, Steve, planned to visit over Labor Day weekend. Together they planned to build a deck in Bob's backyard. Bob ordered the lumber, concrete, nails, and other supplies to be delivered on Friday. He also arranged to rent a saw for the weekend (Sat., Sun., and Mon.) at a cost
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M 660
A principal may generally revoke the authority of an agent at any time. Answer: T Answer: T Answer: T Most student loans cannot be discharged under Chapter 13. Answer: T Answer: T Answer: T An agency contract appointing the agent for a period of more than one year must be in writing. Answer: T Answer: T Answer: T The purpose of pleadings
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M 662 Midterm 2
The UCC permits an oral agreement for the sale of goods to be enforced against a party who admits to the contract in court, even though the statute of frauds requires the agreement in writing. Answer: T Answer: T Answer: T A defective acceptance does not create a contract, but does constitute a new
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M 683 Quiz 3
According to Milton Friedman, the social obligation of a corporation is to return as much money as possible to its direct stakeholders. Answer: T Answer: T Answer: T The requirement of legally sufficient consideration is concerned with whether the bargain was good. Answer: F Answer: F Answer: F The executor-administrator provision applies to promises of an executor of
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M 691 Midterm
Both the Fifth and Fourteenth Amendments contain due process clauses. Answer: T Answer: T Answer: T Most types of contracts are valid without being written. Answer: T Answer: T Answer: T If a bank pays on a check even though it has a 'stop payment order," the bank is liable to the customer only if the customer can prove
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M 697
The validity, under antitrust law, of a joint venture depends on the competitors' purpose in forming it. Answer: T Answer: T Answer: T Members of an LLC share profits and losses equally. Answer: F Answer: F Answer: F A buyer in the ordinary course of business takes collateral (other than farm products) free of any security interest created
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M 731 Midterm 2
For purposes of defamation, a publication includes non-written, verbal communication to third parties. Answer: T Answer: T Answer: T Most forms of speech are protected by the strict or exacting scrutiny standard. Answer: T Answer: T Answer: T Ricardo posts a sign in the neighborhood offering $50 for the return of his Saint Bernard. Alicia, who knows nothing
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M 796
Which one of the following is NOT a personal defense? a. Infancy, to the extent that it is a defense to a simple contract. b. Breach of contract. c. Non-delivery of an instrument. d. Failure of consideration. Answer: A Answer: A Answer: A Clint induces David, by fraud in the inducement, to make an instrument payable to the
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M 798
Which of the following is NOT a breach of an agent's duty of obedience? a. Entering into an unauthorized contract for which his or her principal is then liable. b. Committing a tort for which the principal is now liable. c. Improperly delegating her authority. d. Not following a principal's instruction to misrepresent the
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M 798 Homework
If Gil assigns his lease to Jim, Gil has no further obligations to his landlord. Answer: F Answer: F Answer: F A maker must sign in the lower right-hand corner of the instrument. Answer: F Answer: F Answer: F An example of successful land purchases made by agents for an undisclosed principal took place in Florida for Walt
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M 829 Midterm
Tate brings an action against Marsheen for damages from trespass to Tate's property. Tate must prove the case by a preponderance of the evidence. Answer: T Answer: T Answer: T Discuss the concept of freedom of contract under Articles 2 and 2A of the UCC. Answer: Most of the Code's provisions are not mandatory but
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M 833
Compliance with a legislative enactment or administrative regulation does not prevent a finding of negligence if a reasonable person would have taken additional precautions to avoid harm. Answer: T Answer: T Answer: T A dissolution may be judicially decreed if a proceeding is brought by the state, a shareholder, or a creditor. Answer: T Answer: T Answer: T No
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M 842 Homework
A noncontractual promise may be enforceable where there has been justifiable reliance on the promise. Answer: T Answer: T Answer: T Agricultural and urban runoff are examples of point source pollution, which is inherently more difficult to control than nonpoint source pollution. Answer: F Answer: F Answer: F A signature may be made by an individual herself or
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M 869 Midterm
Zeelon Corporation stock may be summarized as follows: 100,000 authorized 90,000 issued 75,000 outstanding 15,000 treasury stock How many shares or proxies will have to be present for a quorum (assuming no special provision and that the Revised Act is not in effect)? a. 45,001. b. 37,501. c. 30,001. d. 50,001. Answer: B Answer: B Answer: B In a disparate treatment case: a. if
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M 879 Final
Is a promise to pay a pre-existing moral obligation enforceable? Explain. Answer: Under the common law and in most states, a promise made to satisfy a pre-existing moral obligation is made for past consideration and therefore is unenforceable for lack of consideration. Instances involving such moral obligation include promises to pay
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M 885
A witness to a will who is "interested" will be disinherited or disqualified. Answer: T Answer: T Answer: T Assume that you and your best friend have decided to form a partnership after graduation. You have both studied business law, so you both know the importance of having a written partnership agreement. Summarize the
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M 888
An output contract is a special form of an illusory contract. Answer: F Answer: F Answer: F Ron owes Matt an unsecured deposit of $3,000. Ron has a discharge of all his unsecured debts by a bankruptcy court. Can the contract between Matt and Ron be reinstated? Answer: Yes, the contract may be reinstated if
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M 889 Homework
The ADA provides for remedies that are generally the same as those available under Title VII. Answer: T Answer: T Answer: T In the case of Eastman Kodak Co. v. Image Technical Services, Inc. the U.S. Supreme Court stated that to violate Section 2 of the Sherman Act, Kodak would have to possess monopoly
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M 891
Everett delivers to Neely nonconforming goods. Neely accepts the goods, but upon discovering that they are defective, he rightfully revokes acceptance by timely notice to Everett. Discuss which party bears the risk of loss if the goods are then destroyed through no fault of either Everett or Neely. Answer: Neely may
Business Law and The Regulation of Business 11th Edition

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