The RMBCA provides that shareholders:
a. have no preemptive rights unless the articles of incorporation so provide.
b. have preemptive rights regardless of what the articles of incorporation provide.
c. cannot have preemptive rights.
d. only have preemptive rights with respect to the transfer of a block of stock as
consideration.
Most limited liability company statutes provide that a LLC will dissolve:
a. by the consent of the members.
b. upon the death of a member.
c. upon the expulsion of a member.
d. all of the above.
A transfer of possession, but not title, is called:
a. a bailment.
b. an option to purchase.
c. a gift
d. all of the above.
The person who initiates a civil lawsuit is called the:
a. defendant.
b. prosecutor
c. plaintiff.
d. judge.
When goods are sold at an auction in separate lots, the title to each lot passes:
a. when the winning bidder tenders payment for the lot.
b. when the lot is received by the winning bidder.
c. only when all lots have been sold.
d. when the auctioneer announces that the lot in question has been sold to the bidder.
State intestacy statutes commonly provide for distribution in the following order:
a. spouse, parents, lineals, collateral heirs.
b. spouse, lineals, collateral heirs, parents.
c. spouse, lineals, parents, collateral heirs.
d. spouse, lineals, collateral heirs, parents,.
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
What is a principal purpose of the Superfund?
a. to establish environmentally-friendly zoning plans
b. to establish appropriate eminent domain compensation
c. to pay the cost of eliminating or containing condemned waste sites
d. to pay the cost of funding environmental impact statements for public projects
Anyone promoting the sale of a real estate development that is divided into fifty (50) or
more parcels of less than five (5) acres each must file a(n) __________ statement with
the secretary of Housing and Urban Development.
a. building plan
b. development
c. environmental impact
d. real property
Fraud in the inducement is a:
a. limited defense not available against a holder in due course.
b. universal defense available against all holders.
c. limited defense available against all holders.
d. universal defense not available against a holder in due course.
__________ refers to laws and precedent applicable to Internet transactions and
communications.
a. Cyberlaw
b. Cyborglaw
c. Silicalaw
d. Simlaw
U.S. courts will assume jurisdiction and apply antitrust laws to conduct business outside
the United States if the activities of the business firms outside the United States have a
direct, substantial, and foreseeable impact on U.S. commerce. This is based on what
principal?
a. the “jurisdictional rule of reason”
b. the “act”of’state doctrine
c. the “effects” doctrine
d. comity
_______ occurs when a bank is able to require the debtor account holder to clear all
transactions in that account.
a. Control
b. Perfection.
c. Termination
d. Redemption
A carrier owned and operated by the shipper is:
a. a common carrier.
b. a contract carrier.
c. a private carrier.
d. a consignor.
Knowingly making false statements in a loan application to a federally insured bank:
a. is a form of embezzlement
b. is a federal crime.
c. is a crime in the state the bank operates in.
d. all of the above.
The Equal Pay Act:
a. does not allow variances in wages pursuant to a seniority system.
b. generally requires that members of both sexes be paid equally for equal work.
c. prohibits all variations in wage rates paid to men and women.
d. all of the above.
Meetings are to be open to the public under:
a. the Administrative Protection Act.
b. the Sunshine Act.
c. the Freedom of Information Act.
d. none of the above.
Which of the following is a possible remedy for a nuisance?
a. termination by police authority
b. injunction
c. money damages
d. all of the above
One of the motions that can be made after a verdict has been entered is a motion for a:
a. mistrial.
b. summary judgment.
c. directed verdict.
d. judgment notwithstanding the verdict.
Deirdre read that bids were being solicited for the construction of an apartment tower.
Deirdre submitted the lowest bid and was offered the contract contingent on her
providing acceptable sureties in the amount of $1 million. Because Deirdre never had
done work on this scale, it was virtually impossible for her to obtain the appropriate
sureties. She convinced Reassuring Sureties, Inc. to issue the necessary commitment by
misrepresenting that she was a famous builder in Canada. As the work progressed, it
seemed to be going well and Deirdre was asked to make the project 52 stories instead of
50 stories, which was the original contract height. She agreed to this change.
After the work was completed, many breaches of contract on the part of Deirdre
became evident. Reassuring Sureties was sued for a $500,000 loss. Reassuring Sureties
defended on the grounds of fraud and material change in the contract. Decide.
Which of the following is true about judicial review of agency action?
a. Judges tend to substitute their own judgment for that of the agency.
b. Courts will reverse agency decisions merely because the court would have made a
different decision based on the same facts.
c. Courts will reverse a decision if they disagree with the legal interpretation.
d. All of the above
If no termination date is specified for an offer, the offer will remain open:
a. for one year.
b. for six months.
c. for a reasonable period of time.
d. until someone accepts the offer.
A qualified indorsement is given by using the phrase __________.
a. “as is”
b. “without recourse”
c. “with all faults”
d. “buyer beware”
John’s son was not his agent but contracted to purchase a computer in the name of John.
When John learned of this, John sternly rebuked his son but continued to use the
computer for several weeks. After losing interest in the computer, John offered to return
it, saying that the purchase was unauthorized. John:
a. is not liable on the purchase.
b. expressly ratified the purchase.
c. is liable because all children have the apparent authority to contract for their parents.
d. ratified the purchase by John’s conduct.
When goods are sold for consumer use and personal injuries are sustained, a total
exclusion of liability in the sales contract is:
a. enforceable.
b. unenforceable.
c. unconscionable.
d. both b. and c.
The maximum amount of time that a minor has to disaffirm a contract is:
a. one year from the date of the agreement.
b. 30 days from learning of his or her right to disaffirm.
c. the age of majority.
d. a reasonable period of time after reaching the age of majority.
If an issuer requests its correspondent bank where the beneficiary is located to notify
the beneficiary of the issuance of a letter of credit, the correspondent bank is called
a(n):
a. advising bank.
b. foreign bank.
c. consulting bank.
d. coissuer.
If there are twelve (12) or more creditors, at least __________ of those creditors whose
unsecured and undisputed claims total __________ or more must sign the involuntary
petition.
a. one (1); $14,425
b. three (3); $14,425
c. one (1); $15,575
d. three (3); $15,575
Which of the following is not a necessary element of promissory estoppel?
a. The promisor and the promisee must engage in a bargained-for exchange.
b. The promisor must intend or should reasonably expect that the promisee will rely on
the promise.
c. The promisee must in fact rely on the promise in some definite and substantial
manner.
d. Enforcement of the promise is the only way to avoid injustice.
The Pregnancy Discrimination Act does not:
a. require employers to treat pregnancy as other disabilities are treated.
b. require women disabled by pregnancy to be provided with the same benefits as other
disabled workers.
c. require an employer to provide paid sick leave benefits to pregnant women if it does
not provide them to other disabled workers.
d. prevent termination because of pregnancy
A contract is created by which the terms are stated to be for consideration in the amount
of $3,000. If typewritten in the contract is the term “four thousand dollars,” while the
amount of $3,000 is printed within the form:
a. the contract will be interpreted to be for $3,000.
b. the contract will be interpreted to be for $4,000.
c. there is a contract but the courts will not specify the dollar amount, as a conflict
exists.
d. a compromise settlement amount of $3,500 will be used.
To which of the following parties does the landowner owe a duty to take reasonable
steps to discover any danger and a corresponding duty to warn the party of or correct
the discovered danger?
a. trespasser
b. licensee
c. invitee
d. all of the above
The Alexo Corporation has been charged in a United States court with violation of
American antitrust laws in its foreign dealings. The firm has raised the defense that its
actions were compelled by the government of its host country. Alexo based its defense
on the__________ doctrine.
a. act-of-state
b. sovereign compliance
c. sovereign immunity
d. Treaty of Rome
A gift causa mortis is revoked if:
a. the donor does not die.
b. the donor revokes the gift before dying
c. the donee dies before the donor.
d. all of the above.
The legal definition of a guest of a hotel requires that the person:
a. live at least five miles from the hotel.
b. is a guest of a registered occupant of the hotel.
c. is a transient.
d. stay at the hotel for at least 24 hours.
Commercial paper facilitates the transfer of funds and payment.
A check may be certified by a bank on request of the drawer or the holder.
At least 30 days must elapse from the date of a company’s filing a registration statement
with the SEC to the date the registration becomes effective.
An unlicensed insurance broker who cannot personally recover a fee because of the
absence of a license can effectively circumvent the statutory requirements by having a
friend who is a licensed broker bill for the services and collect the payment for him.
General contract law determines whether a limitation clause is a part of the contract
between the warehouser and the customer.
Third persons are prohibited from recovering from an accountant who commits fraud.
The first federal legislation that dealt with air pollution was the Air Pollution Control
Act of 1955, which was simply a statutory recognition of a concern about air quality.
Securities acquired under Rules 506, 505 and 404 exemption from registration are
considered restricted securities, and their resale may require registration.
An obligor required to render a performance under a contract can transfer the duty to
perform to another person whenever desired.
A contract carrier holds itself out as willing to furnish transportation for compensation
without discrimination to all members of the public who apply.
When a negotiable instrument is transferred by negotiation, the transferee is recognized
as the holder of the paper.
John, a 17-year-old, purchased a ping-pong table and four new ping-pong paddles. A
week after he turned 18, John tried to return the ping-pong paddles. He told the seller
that he had decided to keep the table. Can John avoid the contract in this way?
One desiring to leave the balance of an estate to a specified person or group after
specific bequests are satisfied may do so by making a residuary bequest in a will.
If a warehouse receipt provides for the delivery of the goods “to the bearer,” the receipt
may be negotiated by transfer of the document.
As a general rule, the nondisclosure of information that is not asked for does not impose
fraud liability or impair the validity of a contract.
Jared agrees to purchase twelve computers from Zack Enterprises, Inc. for sale in
Jared’s department store. Twelve boxes from Zack Enterprises have just arrived at the
department store. What are Jared’s rights and responsibilities?