A partner has implied authority to hire and fire employees whose services are necessary
to carry on the partnership business.
a. True
b. False
Almost all jurisdictions require that:
a. express trusts of real property be in writing.
b. trusts have at least four witnesses.
c. an inter vivos trust have at least two trustees.
d. a charitable trust have at least two trustees.
Sandy’s private secretary promises not to disclose the contents of an email 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.
a. True
b. False
The judicial branch of the United Nations is called the World Court.
a. True
b. False
Incorporation statutes generally require that each share of stock issued carry voting
rights.
a. True
b. False
Will makes an offer to Ike, but before Ike can accept, the state legislature passes a law
that makes Will’s offer illegal. The new statute:
a. automatically terminates the offer.
b. has no effect on the offer.
c. acts as a condition on the offer.
d. acts as a rejection of the offer by the offeree.
Creditors entitled to priority are paid before:
a. the debtor’s attorney.
b. secured creditors.
c. unsecured creditors who file their claims on time.
d. All of these.
The Bill of Rights:
a. serves as a major restriction on the powers and authority of the federal government.
b. does not apply directly to the states, but the Supreme Court has held that the
Fourteenth Amendment makes many of its principles applicable to the states.
c. consists of ten amendments to the U.S. Constitution that were adopted in 1791.
d. All of these are correct.
A clause apportioning the liability and responsibilities of the parties in the event of an
unforeseeable occurrence, such as a typhoon, tornado, or other disaster is a(n):
a. act of state clause.
b. OPIC clause.
c. letter of credit.
d. force majeure clause.
The federal government’s power to tax is subject to three major limitations.
a. True
b. False
All of the following are dischargeable in bankruptcy EXCEPT:
a. an unsecured note to a bank.
b. a car loan.
c. domestic support obligations arising from divorce or separation proceedings.
d. a court judgment against the debtor.
An LLCs limitation on liability will not affect the liability of a member who:
a. committed the wrongful act giving rise to the liability.
b. guaranteed the obligation.
c. Both of these.
d. None of these.
Prohibited bribery can result in fines and imprisonment under the antibribery provision
of :
a. the Private Securities Litigation Reform Act.
b. the Foreign Corrupt Practices Act.
c. the Securities and Exchange Commission.
d. None of these.
Under the CISG, avoidance of a contract cancels any provision for settlement of
disputes.
a. True
b. False
Which of the following is NOT an element of fraud?
a. Material misrepresentation.
b. Competent parties.
c. Knowledge of falsity.
d. Justifiable reliance.
An employer may have criminal liability for the acts of an employee.
a. True
b. False
A classic and important example of strict scrutiny of classifications based upon race is
the 1954 school desegregation case of:
a. Board of Curators of the University of Missouri v. Horowitz.
b. Brentwood Academy v. Tennessee Secondary School Athletic Association.
c. Parents Involved in Community Schools v. Seattle School District No. 1.
d. Brown v. Board of Education of Topeka.
A constitution restricts the powers of the government and specifies the rights and
liberties of the people.
a. True
b. False
As long as a decedents wishes are clear, the formalities of a will need not be strictly met
in order for the will to be valid.
a. True
b. False
A leasehold from week to week or month to month is called a(n):
a. fee simple absolute.
b. estate for years.
c. periodic tenancy.
d. tenancy at sufferance.
In determining a defendant’s liability for negligence, his or her superior skill or
knowledge will be attributed in applying the reasonable person standard, thus
increasing the chance that the defendant may be held liable.
a. True
b. False
It is a fundamental policy that if the parties do not provide definite enough terms in
their contracts, the courts will complete the contract in the court’s best judgment.
a. True
b. False
A corporation may accomplish acquiring all or substantially all assets of another
corporation by:
a. purchase or lease of other corporations’ assets.
b. purchase of a controlling stock interest in other corporations.
c. merger with other corporations.
d. consolidation with other corporations
e. All of these.
What are some of the matters involving fundamental changes in the corporation and
requiring shareholder approval?
a. Amendments to articles of incorporation.
b. Sale or lease of corporate assets in the regular course of business.
c. Selection of a corporate president.
d. Removal of the corporations officers.
e. All of these.
Categorizing a transaction as a lease rather than a security interest:
a. has significant implications for the parties and for third parties.
b. has significant implications only for the parties to the transaction.
c. would mean the provisions of Article 9 of the UCC apply to the transaction.
d. Two of these are correct.
The percentage of shares required for a quorum may vary from state to state and from
company to company.
a. True
b. False
Future goods can be the subject of a present sale.
a. True
b. False
Wanda has an idea for a novel, but she won’t have time to write it until next year. She
may protect it by means of:
a. a patent.
b. a copyright.
c. registration of the idea.
d. An idea that has not yet been developed into a tangible form cannot be protected.
Because there is no international currency, nations have sought to ease the flow of
capital between them.
a. True
b. False
Refusal of a tender of performance by one party to a bilateral contract will:
a. be treated as a repudiation, excusing the tendering party from further duty of
performance under the contract.
b. not discharge either party from further duty of performance under the contract.
c. be considered a condition subsequent.
d. None of these.
The EPA may impose criminal fines and seek incarceration or imprisonment for persons
who are convicted of violations of some environmental laws.
a. True
b. False