Opalina asks Paolo, who does not understand English, to sign what Opalina says is an
application to open a bank account. In fact, the “application is a note. If sued on the
note by an HDC
a. Paolo must pay the note.
b. Paolos best defense would be fraud in the execution.
c. Paolos best defense would be fraud in the inducement.
d. Paolos best defense would be mistake.
Garden Tool Company makes hedge trimmers. Troy is injured while using a Garden
Tool trimmer and sues the company for product liability based on neg-ligence. To win,
Troy must show that
a. Garden Tool did not use due care with respect to the trimmer.
b. Garden Tool misrepresented a material fact regarding the trimmer.
c. Troy was experienced in the use of trimmers.
d. Troy was in privity of contract with Garden Tool.
To test computer security and conduct encryption research, Tech SolutionsInc.
circumvents the encryption software and other technological antipiracy protection of
United Business Corporations software. Under the Digital Millennium Copyright Act,
this is
a. a violation of copyright law.
b. prohibited but not a violation of copyright law.
c. a “fair use exception to the provisions of the act.
d. permitted for reconsideration every three years.
Eton files a suit in a federal district court against Florida, alleging employment
discrimina-tion under the Age Discrimination in Employment Act of 1967. The state
asks the court to dismiss the suit. The court is most likely to rule that
a. the state is immune from the suit.
b. the suit can proceed.
c. Eton is immune from any defense the state might offer.
d. the court is immune from such request.
Mona offers Ned, a building inspector, $5,000 to overlook the violations in her new
warehouse. Ned accepts the cash and overlooks the viola-tions. Mona is charged with
the crime of bribery. The crime occurred when
a. Mona decided to offer the bribe.
b. Mona offered the bribe.
c. Ned accepted the bribe.
d. Ned overlooked the violations.
Great Gates, Inc. has a board of ten directors. Great Gates bylaws do not state any
quorum requirements. In most states, a quorum for Great Gates will be defined as
a. two directors.
b. six directors.
c. nine directors.
d. ten directors.
Downloading music into a computers random access memory, or RAM, is not copyright
infringement, even if it is done without authorization.
a. True
b. False
Julia owns and operates Collectable Dolls without creating a separate business
organization. She receives all the profits from the doll sales. Collectable Dolls is most
likely a
a. a corporation.
b. a limited liability company.
c. a partnership.
d. a sole proprietorship.
Commercial banking practices consider a check that has been outstanding for three
months to be a stale check.
a. True
b. False
A criminal case must be proved beyond a reasonable doubt.
a. True
b. False
Readmore Bookstore Corporation files a registration statement with the Securities and
Exchange Commission and provides a prospectus describing the securities to investors.
These items are intended to provide sufficient information so that the financial risks
involved can be evaluated by
a. market professionals to explain to all investors.
b. government regulators to disclose to the general public.
c. sophisticated investors only.
d. unsophisticated investors.
An offer does not need to be communicated to the offeree to become effective.
a. True
b. False