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Each limited partner in a limited partnership is entitled to which of the following?
a. the right to have the limited partner's name as part of the limited partnership name
b. the right to sue the general partner to protect the limited partners' interest.
c. Neither a. nor b.
d. Both a. and b.
Negotiation of order paper requires:
a. delivery only.
b. endorsement only.
c. both endorsement and delivery.
d. neither endorsement nor delivery.
If an offeree accepts an offer before it is effectively revoked:
a. a void contract is formed.
b. a voidable contract is formed.
c. an unenforceable contract is formed.
d. a valid contract is formed.
__________ refers to laws and precedent applicable to Internet transactions and
communications.
a. Cyberlaw
b. Cyborglaw
c. Silicalaw
d. Simlaw
Under the Computer Software Copyright Act of 1980, a written program:
a. must be written in object code in order to be protected.
b. must be written in source code in order to be protected.
c. is protected as any other copyrighted material, even if it is in written form.
d. is protected as any other copyrighted material, but only if it is in written form.
Law is:
a. a body of religious principles held by all members of society.
b. a body of principles that society establishes to keep things running smoothly.
c. always the result of case-law decisions.
d. derived solely from the United States Constitution.
The U.S. Constitution is a document that:
a. is clear in allocating the rights and responsibilities of people and our government.
b. can be interpreted only according to the bedrock principles of 1776.
c. can be interpreted only in accordance with current values.
d. must be interpreted to accommodate both stability and flexibility.
Sources of American law include:
a. state constitutions.
b. statutes enacted by state legislatures.
c. court decisions.
d. all of the above.
In a merger situation, what is the right of a dissenting shareholder?
a. to block the merger until satisfied regarding its terms
b. to have its shares appraised and purchased by the corporation
c. to enforce a consolidation instead of a merger
d. none of the above, since dissenting shareholders have no rights with respect to a
merger
An affirmative action plan that "unnecessarily trammels" the interests of nonminority
employees:
a. is an example of reverse discrimination.
b. is lawful if women are the favored group.
c. is lawful to aid in the hiring of blacks and Native Americans.
d. is unlawful unless the favored group has been severely disadvantaged.
Which of the following is true?
a. An agent has the power to contract on behalf of a principal.
b. An employee generally does not have the power to contract on behalf of the
employer.
c. An independent contractor controls work performed by the independent contractor.
d. All of the above are true.
Generally, what would not be considered a "reasonable accommodation" for persons
with disabilities?
a. making an accommodation that would constitute an "undue hardship" for the
employer
b. making existing facilities accessible to and usable by individuals with disabilities
c. modifying work schedules
d. restructuring jobs
Which is not a correct statement concerning rescission of a contract?
a. The breach must be material.
b. The injured party who rescinds may recover money paid under the contract.
c. The contract remains in effect after the rescission.
d. Rescission is the undoing of the contract.
The Fourth Amendment to the United States Constitution's protection against
unreasonable searches applies to:
a. personal homes only.
b. businesses only.
c. both homes and businesses.
d. none of the above.
A letter of credit:
a. is an advance arrangement for financing.
b. is used only in domestic sales.
c. is used only in international trade.
d. involves only two parties.
The transferring of an instrument in such a way as to make the transferee the holder of
the paper is termed:
a. an assignment.
b. a conversion.
c. a sale.
d. a negotiation.
The registration requirement of the Securities Act of 1933 applies to:
a. the issuing of stocks, bonds, and other investment securities.
b. the issuing of certificates of deposit by a national bank.
c. shares issued by nonprofit corporations.
d. issues of $1.5 million or more.
Which of the following is not a classification of ordinary bailments?
a. for the sole benefit of the bailor
b. for the sole benefit of the bailee
c. for the sole benefit of the third party beneficiary
d. for the mutual benefit of the bailor and the bailee
Straight voting:
a. increases the voting power of minority shareholders.
b. is the normal method for shareholder voting on corporate matters.
c. restricts each shareholder to one vote, regardless of the number of shares owned.
d. all of the above.
Testing of prospective employees:
a. cannot have been developed by one employer and applied by another.
b. can be adjusted to favor members of a particular race.
c. must bear no relationship to job performance.
d. must be "job-related."
The dissolution and winding up of a limited partnership is governed by the same
principles applicable to a __________.
a. "Subchapter S" corporation.
b. limited liability company.
c. general partnership.
d. none of the above.
A __________ action restores the property to the landlord's possession unless the tenant
complies with payment requirements.
a. forcible entry and detainer
b. forcible exit and retainer
c. passive entry and detainer
d. passive exit and retainer
Public zoning:
a. establishes uniformity of land use.
b. establishes uniformity of land use subject to the exception of preexisting
nonconforming uses.
c. establishes uniformity of land use subject to the exceptions of preexisting
nonconforming uses and subsequently granted variances.
d. allows each landowner to make the most profitable use of the land.
If the insured lives to the end of the policy period of an endowment insurance policy,
the policy pays:
a. nothing.
b. one-half of the face amount of the policy.
c. the face amount of the policy.
d. double the face amount of the policy.
An individual who has been authorized to vote the share of another stockholder is said
to be voting by:
a. trust.
b. proxy.
c. estoppel.
d. agency.
Sally operates a large manufacturing firm near a federal land preserve known for its
waterfowl and fauna. The federal government has just filed suit against Sally and her
corporation, charging them with criminal violations of various environmental protection
statutes. What rights do Sally and her corporation have that are guaranteed under the
United States Constitution?
Article 3 of the UCC establishes a __________-year statute of limitations for most
actions involving negotiable instruments.
a. one
b. two
c. three
d. four
Which of the following is not a duty of a trustee?
a. to use reasonable skill
b. to defend the trust in court
c. to invest trust assets
d. to deliver possession of trust assets to the settlor for the trust period
The right of privacy consists of:
a. the right to be secure against unreasonable searches by the government only.
b. the right to protection against intrusions by others only.
c. both the right to be secure against unreasonable searches by the government and the
right to protection against intrusions by others.
d. none of the above.
Legislation and government regulations typically are enacted in response to:
a. isolated but serious ethical transgressions by businesses.
b. ongoing technological changes that make it easier to circumvent old laws.
c. widespread abuses of gaps in existing laws that are fundamentally unfair.
d. changes in the availability of organizational resources.
The commercially reasonable charges incurred by a seller in caring for goods after the
buyer's breach are recoverable by the seller in an action for damages as:
a. contract damages.
b. punitive damages.
c. additional damages.
d. incidental damages.
Laws that prohibit theft, operation of a factory in areas zoned residential, and copyright
infringement exist primarily:
a. for protection of the person.
b. for protection of public health, safety, and morals.
c. for protection of property.
d. for protection of the state.
The type of patent that may be granted to developers of plant reproduction methods is
called a:
a. process patent.
b. functional or utility patent.
c. improvement patent.
d. plant patent.
When the effect of an antitrust violation is to raise prices:
a. damages are automatically considered doubled.
b. each plaintiff must sue individually.
c. imprisonment for the guilty is mandatory.
d. the state attorney general may bring a class action suit for damages.
The ethical category of fairness is best expressed as:
a. Do unto others as you would have them do unto you.
b. Let the buyer beware.
c. He who laughs last laughs best.
d. No harm, no foul.
Tom Creighton hired Destroy, Inc., a demolition company, to level an old building on a
busy downtown lot. Destroy, Inc. was given full rein to decide on the amount of
explosives needed and the placement of the charges. Security for the site on the day of
the explosion was contracted out to a private security firm. When the appointed day
arrived, the building was brought down. However, the building fell in a slightly
different direction than that anticipated by Destroy, Inc. Numerous pieces of adjoining
property, both real and personal, were severely damaged. Creighton claims that the use
of an independent contractor such as Destroy, Inc. has insulated him from liability. How
do you respond to Creighton's claim?
A holographic will is an unwitnessed will that is written by the testator entirely by hand.
Individual intentions, as expressed in contracts and wills, will not be given effect in the
United States unless expressly authorized by law.
Regulation of the Federal Reserve system, negotiable instruments, and installment
credit transactions are designed largely to facilitate trade.
Homeowner's insurance is a combination of the standard fire insurance policy and
comprehensive personal liability insurance.
Pursuant to the commerce clause, the United States Supreme Court has the power "to
regulate commerce with foreign nations, and among the several states, and with the
Indian tribes."
The Constitution may be amended, but it always has been interpreted in the same way.
Protection against fraud and exploitation are found both in securities laws and Food and
Drug Administration regulations.
A noncompetition covenant may be held invalid because of vagueness concerning the
duration and geographic area of the restriction.
The trustee may void any fraudulent transfer made by the debtor within two (2) years of
bankruptcy when the debtor's actual intent was to hinder, delay, or defraud creditors by
engaging in the transfer.
A security interest is a property right that enables the creditor to take possession of the
property if the debtor does not pay the amount owed.
A person who makes a promise is the promisor, while a person to whom the promise is
made is the promisee.
To successfully pursue a Title VII lawsuit, the plaintiff generally must belong to a
protected class.
Subchapter S corporations have the benefits of limited liability as in partnerships and
are taxed as corporations.
A showing that an invention as a whole would have been obvious to a person of
ordinary skill in the art when the invention was patented is called 'subsequent art."
The Sherman Act provides that every contract in restraint of trade is illegal.
Antedating an instrument affects an instrument's negotiability.
A restrictive indorsement reduces the risk of theft or unauthorized transfer by
eliminating the bearer quality of a blank indorsement.
An employer can be held liable for the sexual harassment of an employee by a
supervisor.
