Klondike and Leola own 10,000 shares of stock in My-T Gro Corporation. On the death
of ether owner, that owners interest in the stock passes to the surviving owner. This is
a. a joint tenancy.
b. a tenancy by the entirety.
c. a tenancy in common.
d. ownership in fee simple absolute.
Dani is considering forms of business organization for her financial advisory firm. Like
most states, Danis state requires that to form a limited liability company, she must file
with a central state agency
a. articles of certification.
b. articles of formation.
c. articles of organization.
d. no specific documents.
Liu and MidgeNeros creditorscontract with Nero for the discharge of Neros liquidated
debts on payment of a lesser sum. This is
a. a composition agreement.
b. a subrogation.
c. a suretyship agreement.
d. in violation of most states laws.
On May 1, City Auto & Truck Sales agrees to sell a car to Dino. Five days later, Dino
refuses delivery and cancels the contract. City is entitled to
a. force Dino to accept the car.
b. recover any damages from Dino but not resell the car.
c. resell the car and recover any damages from Dino.
d. resell the car but not recover any damages from Dino.
Ludwig receives from Milo a marimba stolen from Nadine. To be criminally liable,
Ludwig must know
a. Milo.
b. Nadine.
c. that the marimba is stolen.
d. what a marimba is.
Applied Business Corporation makes and markets its products nationwide. Under the
stakeholder approach, to be considered socially responsible when making a business
decision, Applied must take into account the needs of
a. its consumers, the community, and society only.
b. its employees and owners only.
c. its employees, owners, consumers, the community, and society.
d. no one.
Cathy uses, on her new recording Drive By, the exact note-for-note melody of a song
written by Earl without his permission. This is
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. a theft of trade secrets.
One night, Izzy discovers Joe, an intruder, in Izzys Kwik Spot convenience store after
the store is closed. Izzy shoots and kills Joe. With respect to criminal prosecution for
this use of deadly force, in a state that has a stand-your-ground law, Izzy
a. is presumed innocent or may be exempt from prosecution.
b. must prove that he first told Joe to “Stop! or “Stand your ground!
c. must prove that he first tried to retreat or that his life was in danger.
d. must prove that Joe did not try to retreat or acted without regard for his own life.
Serene City enacts an ordinance that bans the use of ‘sound amplifying systems on
public streets. Tyler wants to campaign for a seat on the city council by broadcasting his
message through speakers mounted on a truck. In Tylers suit against the city, a court
would likely hold the ordinance to be
a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect national interests.
International Gem Corporation agrees to sell Jewel Outlets, Inc. (JOI), fifty new
diamonds, but the contract does not specify a place of delivery. JOI is expected to pick
up the goods. The place of delivery is
a. Internationals place of business.
b. JOIs place of business.
c. the Annual Gems and Jewels Convention.
d. the U.S. Postal Service office nearest to JOIs place of business.
Jelly Jar Company includes in its online offers a provision that indicates any disputes
arising under the contract must be resolved in Kansas. Lena, a resident of Maine,
accepts Jelly Jars offer. If a dispute arises, a court will most likely rule that it must be
resolved in
a. Kansas.
b. Kansas or Maine.
c. Maine.
d. the location selected by the first party to file a suit.
Qang and other foreign citizens allege human rights violations committed overseas by
the government of Burma on behalf of Railway Construction Company, a U.S. firm. To
seek redress for their injuries in a U.S. court, these citizens can
a. issue a letter of credit.
b. bring civil suits under the Alien Tort Claims Act.
c. file criminal complaints under Title VII of the Civil Rights Act.
d. do nothing.
Based on Blutos conduct, Cass reasonably believes that Dee has the authority to act on
Blutos behalf even though Dee does not have the actual authority to do so. Cass makes
a payment to Dee for Bluto. Dee keeps the money and disappears. Bluto
a. can demand that Cass make a repayment directly to Bluto.
b. can obtain damages from Cass for Dees misconduct.
c. may be estopped from denying that Dee had authority.
d. must repudiate Dees misconduct to avoid liability.
Mike is arrested at a warehouse in North Industrial Park. A government prosecutor
issues a formal charge against Mike for receiving stolen property. This charge is
a. an arraignment.
b. an indictment.
c. an information.
d. an inquisition.
Feta is a partner in the game design firm GR8 Games, Inc., which obtains key-person
life insurance on Feta in the amount of $1 million from Halo Insurance Company. Feta
quits GR8 Games to join Icy Applications, Inc. Feta dies. Under the principle of
insurable interest, Halo must pay the $1 million to
a. Fetas spouse Jo.
b. GR8 Games.
c. Icy Applications.
d. no one.
Community Trust Bank provides Devlin with a mortgage to buy a home. The rate of
interest is fixed for seven years. At the end of that period, a large payment for the entire
balance of the mortgage loan is due. This is
a. a balloon mortgage.
b. a hybrid mortgage.
c. a reverse mortgage.
d. a violation of the law.
Capital Diversified Corporation (CDC) owns assets in Dagistan, a new country in Asia.
The government of Dagistan wants to nationalize all assets owned by foreign firms and
investors. What can CDC do? Can it at least obtain payment for the assets?
Orin creates a living trust to pass his assets, including stock in Petro Oil Company and
other business investments, to his heirs. One advantage of this arrangement is that
a. income taxes do not have to be paid on trust earnings.
b. the assets are sheltered from the payment of estate taxes.
c. the assets can be transferred without going through probate.
d. the trust does not come into existence until the grantors death .
Shelby offers to make digital copies of Relay Companys business conference
videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule and the
Uniform Electronic Transactions Act (UETA), Relays acceptance by e-mail will be
considered effective when
a. received.
b. sent.
c. followed up by a confirmation letter sent by regular mail.
d. composed on a Relay computer.
Alan, the president of Bayside Investments, Inc., and Colin, Baysides accountant, are
charged with a crime, after the police search Baysides offices. Under the exclusionary
rule
a. certain Bayside records are excluded from subpoena.
b. certain parties to a criminal action may be excluded from a trial.
c. illegally obtained evidence must be excluded from a trial.
d. persons who have biases that would prevent them from fairly deciding the case may
be excluded from the jury.
Mona asserts that a contract she entered into with Nate is unenforceable. Defenses to
the enforcement of a contract include
a. a desire not to perform.
b. adverse economic consequences.
c. results that do not match expectations.
d. the lack of a partys genuine assent.
Main Street Lenders, Inc., attempts to coerce Nolanwho specializes in determining the
value of real and personal propertyinto misstating the value of a property on which a
loan is to be issued. This is
a. a legal and ethicalbut morally arguablefinancial ploy.
b. a legalbut unethicalbusiness practice.
c. a necessary tactic to generate a profitable loan in todays market.
d. a violation of the law.
Dora leases a house from Evan for a two-year term. To ensure the validity of their lease,
it should include
a. a description of the premises.
b. a due date for the payment of the property taxes.
c. a requirement that Dora perform structural repairs to the house.
d. a requirement that Evan carry liability insurance.
Cole drives into Dinos Service Station and asks Erin, the attendant, to fill the tank in
Coles hybrid vehicle. After Erin fills the tank, but before Cole pays for the gas, any
contract between Cole and Dinos is
a. executed.
b. executory.
c. quasi.
d. unenforceable.
Overnight Delivery Service delivers a package to Pam. At the request of Overnights
delivery person, to acknowledge receipt Pam signs a digital pad. This signing creates
a. a cybernotarized signature.
b. a digitized handwritten signature.
c. an asymmetric cryptosystemic signature.
d. a public-key infrastructure digital signature.
Zeke files a petition in bankruptcy for relief through an individuals repayment plan.
Zekes plan must provide for
a. the turnover of his future income to the trustee.
b. his attendance at a credit-counseling briefing.
c. adequate means for the petitions execution.
d a preference for one creditor over another.
Over the course of a year, Retail Marketers, Inc., sells goods from its inventory and one
of its warehouses. In exchange, Retail receives checks and other items that substitute
for cash, which Retail uses to repay a loan from Savings Bank. Article 2 of the UCC
governs
a. the checks.
b. the payment of the loan.
c. the sale of the buildings.
d. the sale of the goods.
In Fancy Frills Corporations suit against Glamour Stores, Inc., the jury returns a verdict
in Fancys favor. Glamour files a motion asking the judge to set aside the verdict and
begin new proceedings. This is a motion for
a. a judgment in accordance with the verdict.
b. a judgment on the pleadings.
c. a new trial.
d. judgment n.o.v.
Cooks Pantry Appliances, a retail store, must use reasonable care on its premises to
warn its patrons of
a. all risks.
b. hidden risks.
c. obvious risks.
d. no risks.
Ren is a shareholder of Star Corporation. Ren wants to amend Stars bylaws to require it
to publish the names of shareholder-nominated candidates for positions on the board of
directors. Under the Securities and Exchange Commissions “notice and access e-proxy
rules, Ren can solicit proxies from other Star shareholders on this proposal by posting
proxy materials on a publicly accessible Web site and sending a paper notice to
a. any Star shareholder Ren selects.
b. each Star shareholder.
c. Star Corporation.
d. the Securities and Exchange Commission.
Secure Investments, Inc., a U.S. firm, expands into international markets through a joint
venture. In this situation, Secure owns
a. all of the operation, and its profits and liabilities.
b. all of the operation, and none of its profits and liabilities.
c. none of the operation, and none of its profits and liabilities.
d. part of the operation, and shares its profits and liabilities.
Miklos grants an ordinary power of attorney to Nathalie to handle a list of financial
transactions on Mikloss behalf. This power will terminate on
a. any transaction causing a loss to Miklos.
b. Mikloss death or incapacity.
c. Mikloss sixty-fifth birthday.
d. Nathalies handling of one of each stipulated transaction.
Ewa is a shareholder of Farm Fresh Foods, Inc., whose management is considering a
tender offer by Growers Market Corporation. Ewa elects appraisal rights. This affects
a. Farm Freshs consideration of the offer.
b. Ewas shareholder status.
c. Growers Markets offer.
d. nothing.
A recording statute allows deeds to be recorded to give notice to the public.
Life tenants are persons who share ownership rights simultaneously.
A check “payable to the order of bearer is neither an order instrument nor a bearer
instrument.
Property voluntarily placed somewhere by its owner and inadvertently forgotten is
abandoned property.
A creditors composition agreement is usually held to be unenforceable.
Under the act of state doctrine, a firm whose assets a foreign government has expro-
priated may not recover compensatory damages in a U.S. court.
A corporation is liable for the torts committed by its officers within the course and
scope of their employment.
A remedy is the relief provided to an innocent contracting party when the other party
breaches the contract.
A gift to a dying donee is a gift causa mortis.
To have standing to sue, a party must have been harmed or have been threatened with
harm by the action about which he or she complains.
A promise to do something that one has a prior legal duty to do is not consideration.
A board of directors cannot conduct business outside a formal meeting.
An employer can refuse to bargain collectively with an elected employee representative.
An arbitrary use of ordinary words may not be trademarked.
Simply obeying the law does not fulfill all ethical obligations.