Which of the following is the basic governing document of a corporation?
a. A subscription.
b. A charter, after filing.
c. The set of bylaws.
d. A certificate of authority.
A patent would be appropriate in all but which one of the following cases?
a. The discovery of a medical use for moon rocks.
b. The invention of a miniature portable generator.
c. The discovery of a method of making soap from sand.
d. The invention of a fingernail-sized radio.
Jerry takes a $400 check to Primary Bank, where he asks for $75 in cash and he
deposits the remaining balance. Primary Bank has “given value as far as the
requirements of holder in due course status to the extent of $75.
a. True
b. False
The branch of public law that deals with the various regulatory functions and activities
of agencies of the government is:
a. criminal law.
b. administrative law.
c. Constitutional law.
d. substantive law.
Section 1 of the Sherman Act provides that U.S. antitrust laws shall have a narrow
reach.
a. True
b. False
A restrictive indorsement:
a. disclaims contract liability.
b. removes warranty liability.
c. attempts to restrict the rights of the indorsee in some fashion.
d. always destroys negotiability.
A possibility of reverter is the complementary estate to a:
a. fee simple.
b. qualified fee.
c. life estate.
d. reversion.
Which of the following are prohibited under Title VII of the 1964 Civil Rights Act?
a. Seniority systems.
b. Affirmative action programs.
c. Disparate impact.
d. All of these.
Unauthorized signatures include both forgeries and signatures made by an agent
without authority.
a. True
b. False
Actual authority consists of both express and implied authority.
a. True
b. False
Which of the following defenses does not apply to discrimination based on race?
a. A bona fide seniority system.
b. A professionally developed ability test.
c. A bona fide occupational qualification.
d. None of these.
The antifraud provisions of the 1933 Act pertain to only registered securities.
a. True
b. False
Mary agrees to sew Georgia’s prom dress for $50 plus costs. Georgia decides that she
wants ruffles around the neck and calls Mary who says it will now cost $60. When
Mary finishes the dress (with ruffles), Georgia must pay:
a. $50, since that is the original agreement.
b. $50, since a modification must be in writing.
c. $60, since the modified agreement is supported by additional consideration.
d. $60, since any subsequent agreement is enforceable.
The incorporators would typically do which of the following?
a. Purchase the outstanding shares.
b. Assemble the assets.
c. Sign the charter.
d. Prepare the incorporation papers.
The role of shareholders in managing the corporation is generally restricted to:
a. election of directors.
b. approval of certain extraordinary measures.
c. the approval of corporate transactions that are void or voidable unless ratified.
d. All of these are restrictions.
e. None of these are restrictions.
The Consumer Financial Protection Bureau is an independent executive agency housed
within the Federal Reserve and was established to regulate consumer financial products
or services solely under the Consumer Financial Protection Act of 2010.
a. True
b. False
The Fair Housing Act is Title VIII of the Civil Rights Act.
a. True
b. False
The Securities Act of 1934 imposes sanctions for noncompliance with its disclosure and
antifraud requirements. These sanctions include:
a. civil liability to injured investors and issuers.
b. civil penalties.
c. criminal penalties.
d. All of these.
An intended donee beneficiary may enforce the contract against the promisor only.
a. True
b. False
Mary’s car was parked just outside the east door of the Civic Center. When she tried to
exit, three ominous-looking gang members were blocking that door. She called the
police who arrested the three for loitering. If Mary brings suit against them for false
imprisonment:
a. she will lose if there was another exit she could have used.
b. she will lose because she was not harmed by the confinement.
c. she will win even if there was another way out because she was, in effect, being
confined to the Civic Center.
d. she will win because they were blocking her passage to her car.
The case in which the court held that a newspaper advertisement was an offer because it
contained a promise of performance in definite terms in return for a requested act was:
a. Catamount Slate Products, Inc. v. Sheldon.
b. Sherrod v. Kidd.
c. Lefkowitz v. Great Minneapolis Surplus Store, Inc.
d. Giannetti v. Cornillie.
Congress outlawed the practice of redlining through what legislation?
a. The Gramm-Leach-Bliley Financial Modernization Act.
b. The Home Mortgage Disclosure Act.
c. The Dodd-Frank Act.
d. The Equal Credit Opportunity Act.
Demrow Co., which contracted to buy 400 fishing poles from Royal Industries,
anticipatorily breached the contract. Royal may proceed to identify to the contract
conforming goods in its possession so that it can exercise the remedy of resale of the
goods.
a. True
b. False
The principle of __________ concerns the compatibility of a law or governmental
action with fundamental constitutional rights such as free speech.
a. procedural due process
b. substantive due process
c. the rational relationship test
d. equal protection
Administrative statutes issued by an agency are known as:
a. legislative rules.
b. interpretive rules.
c. hybrid rules.
d. procedural rules.
The 2010 Horizontal Merger Guidelines:
a. were issued by the Justice Department to be additional to the FTC’s separate
guidelines.
b. require a mechanical application; in order to reduce the previously used analytic
framework, which was far too subjective and uncertain.
c. rejects use of the Herfindahl-Hirschman Index.
d. clarify that merger analysis does not use a single methodology.
R-T, Inc. must notify the EPA before it manufactures a new chemical, and the EPA
administrator may limit or prohibit the chemicals manufacture or distribution.
a. True
b. False
A disaffirmance must come either during a minor’s minority or within a reasonable time
after he reaches majority.
a. True
b. False
The anthropology department of Towers University is doing an excavation on property
that belongs to the Browns. If, in the process of excavation, the university finds some
valuable lost items, they will belong to the Browns and not to the university.
a. True
b. False
The court must confirm a plan of reorganization before it is binding on the parties.
a. True
b. False
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.
a. True
b. False