Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
A crime that is punishable by a fine or imprisonment in a local jail is a:
a. felony.
b. white-collar crime.
c. misdemeanor.
d. mala prohibita crime only.
A demand note is dishonored if the maker does not pay it:
a. on the day of presentment.
b. before midnight of the day following presentment.
c. within three days of presentment.
d. within ten days of presentment.
A buyer's right to purchase, in good faith and without unreasonable delay, substituted
goods from Seller B when Seller A breaches a sales contract is:
a. cover.
b. specific performance.
c. replevin.
d. reclamation.
The Fourth Amendment to the Constitution:
a. requires a speedy trial.
b. prohibits double jeopardy.
c. protects against unreasonable search and seizure.
d. All of the above.
Constructive eviction would result in a discharge of any obligation to pay rent if:
a. proper notice is given to the landlord.
b. the tenant abandons the apartment.
c. the tenant fixes the problem.
d. he serves the landlord with a court order.
Which warranties does a collecting bank give?
a. Warranty of no alteration only
b. Good title, authentic signatures, no alteration, no defense good against it, and no
knowledge of insolvency
c. Good title and genuine signatures only
d. A collecting bank does not give any warranties
Richard owns and operates a small business at an outdoor market where he sells fruits
and vegetables. What does the UCC specifically require of Richard with respect to his
customers?
a. Observance of reasonable commercial standards of fair dealing
b. Honesty in fact
c. Both (a) and (b).
d. No specific standards of behavior apply to Richard.
A trust:
a. is a fiduciary relationship in which one person holds both legal and equitable title to
property which is the subject matter of the trust.
b. may take effect only during the lifetime of the person creating the trust.
c. may be created by such words as "I leave [certain property] to Swigert in full
confidence and hope that Swigert will care for Adamson."
d. may not be created "to benefit and maintain Southside Park," since this purpose
would be too vague to be enforceable.
Which of the following is correct with respect to the fixed amount requirement of
negotiability under Revised Article 3?
a. The fixed amount requirement applies only to the principal.
b. Interest may be stated in an instrument as a fixed or variable amount of money or it
may be expressed as a fixed or variable rate or rates.
c. A sum certain may be payable in installments or with a fixed discount if paid before
maturity.
d. All of the above are correct.
To be effective, notice of revocation of an offer:
a. must be communicated directly to the offeree before the offeree has accepted.
b. may be communicated indirectly to the offeree through a third person.
c. must be dispatched before the offeree accepts; when notice actually reaches the
offeree is not important.
d. is not addressed in the Restatement.
Andrew owns a store in Polk County. His trade extends throughout River City, but not
beyond the county limits. He sells his store to Betty and, as part of the transaction,
agrees not to engage in the same business anywhere in River City for a period of five
years. The agreement:
a. is reasonable regarding the geographic restraint.
b. is unreasonable.
c. unduly interferes with the interest of the public.
d. Both (b) and (c).
In determining the duty of care owed by a defendant using the reasonable person
standard, the court will consider which of the following factors?
a. The existence of emergency conditions
b. A physician's training and years of experience
c. A person's severe mental retardation
d. Both (a) and (b), but not (c).
Emanuel issues a blank check to Patrick, who is supposed to complete it when the exact
amount is determined. Although the amount is determined to be $650, Patrick
fraudulently fills out the check for $1,650 and then negotiates the check to Coletta. In
this case:
a. if Coletta is a holder in due course, she can collect the $1,650 from Emanuel.
b. if Coletta is a holder in due course, she can collect the $1,650 from Patrick.
c. if Coletta is not a holder in due course, she can collect $1,650 from Patrick, but she
has no recourse against Emanuel.
d. regardless of whether or not Coletta is a holder in due course, she can only collect
$650 on the check.
e. Answer choices (a), (b), and (c) are correct.
A court would be likely to enforce an illegal contract:
a. under certain circumstances in which the aggrieved party was unaware of the
illegality.
b. where, although the contract is unconscionable, there is only procedural
unconscionability.
c. where the agreement is with an unlicensed attorney.
d. under no circumstances.
Albert recently graduated from college with a degree in business administration, but has
been unable to find a job. He has decided to file a Chapter 7 petition with the
Bankruptcy Court. He has the following assets:
a. a $250 ring.
b. $5,000 in equity in a condominium secured by a mortgage.
c. $100 a week in unemployment benefits after being laid off from his previous job.
d. $750 in business administration books, including a barely-used copy of Business
Law.
e. a $1,000 retainer for his teeth prescribed by his orthodontist.
f. $1,200 in equity in a new car which he purchased with a loan from the bank.
His debts are as follows:
a. $10,000 in student loans.
b. $20,000 to the bank for his car. The loan is secured by the car.
c. $5,000 in unsecured credit card debts.
What can he keep? What will each of the creditors receive? Explain.
Match the following:
a. Transaction used to eliminate minority shareholders and take a publicly held
corporation private.
b. Authorization to vote another's shares at a shareholder meeting.
c. Device designed to concentrate corporate control in one or more persons; transfer of
corporate shares' voting rights to another person.
d. Right to receive fair value of one's shares.
e. Entitles shareholders to multiply the number of votes they are entitled to cast by the
number of directors for whom they are entitled to vote.
f. Minimum number necessary to be present at a meeting in order to transact business.
g. Brought by a shareholder on behalf of the corporation to enforce a right belonging to
the corporation.
h. Brought by a shareholder against the corporation based upon his ownership of shares.
i. Must exercise ordinary care and prudence.
j. Procedure permitting a corporation to change its state of incorporation.
k. Must act within respective authority.
l. The combination of assets of two or more corporations into one of the corporations.
m. Precludes imposing liability on directors and officers for honest mistakes if they act
with due care, in good faith, and in a manner reasonably believed to be in the best
interests of the corporation.
n. A writing evidencing that owners of shares will vote in a specified manner.
o. A general invitation to all of the shareholders of a target company to tender their
shares for sale at a specified price.
1) cumulative voting
2) direct suits
3) voting trust
4) duty of obedience
5) merger
6) duty of diligence
7) tender offer
8) shareholder voting agreement
9) proxy
10) derivative suits
11) business judgment rule
12) cash-out combination)
13) appraisal remedy
14) quorum
15) domestication
Jane, Kelly, and Lois are partners in an accounting firm, but Jane intends to retire and
withdraw from the partnership at the end of the year. Under the RUPA, Jane is liable to
the firm's creditors:
a. for a partnership obligation incurred within two years after her dissociation if at the
time of entering into the transaction the other party reasonably believed Jane was then a
partner, did not have notice of Jane's dissociation, and is not deemed to have had
constructive notice of the dissociation.
b. only for all debts incurred prior to her retirement.
c. until the day of her retirement when she will be absolved of all liability.
d. for an amount not to exceed her partnership interest on the day of her retirement.
A and B enter into a contract on January 1 of this year. A's friend C tells A, "The law
generally restricts the time within which an action can be brought by either party to a
contract." C's statement is:
a. false.
b. true, because of statutes of limitation.
c. true, because of the law of repudiation.
d. true, because of covenants not to sue.
A judicial lien against a partner's transferable interest in a partnership is known as a(n):
a. legal aggregate.
b. delegation of assets.
c. charging order.
d. assignment.
Amber, who is an agent for Peter, breaches her fiduciary duty to Peter. Amber:
a. is liable to Peter for breach of contract.
b. is liable to Peter in tort for any losses caused by the breach.
c. must make restitution for any profits or property received in breach of this duty.
d. All of the above are correct.
The power to zone is generally given to:
a. states by the state constitutions.
b. states by adverse possession statutes.
c. local authorities by enabling statutes.
d. local authorities by master plans adopted by the states.
The characteristics of a special warranty deed include:
a. the grantor warrants the title so far as it concerns his acts or omissions.
b. the grantor warrants the title to be free of defects caused by acts or omissions of
others.
c. a general warranty of title.
d. All of the above.
From a commercial standpoint, which of the following is considered the most important
international treaty?
a. The ICJ
b. The EC
c. The WTO
d. The IMF
Most zoning ordinances provide that a nonconforming use may be terminated:
a. immediately.
b. after 6 months of the structure's future useful life.
c. when a nonconforming structure is destroyed or substantially damaged.
d. All of the above.
Requirements for a memorandum that satisfies the statute of frauds include that the
writing:
a. must be a single document.
b. must exist at the time of the litigation.
c. needs to be notarized.
d. None of the above.
Jack is a guest in Harry's home. While there, he goes into the library and picks up a
music box that is part of Harry's collection. Jack overwinds the stem and it breaks.
Hoping Harry won't notice, Jack takes the music box for repair to a jeweler who sells
similar ones. The jeweler fixes it, but forgets to tag it and an unsuspecting clerk sells it
to Robert. Jack is frantic. Can Harry get the music box from Robert?
a. No, the jeweler gives good title to a bona fide purchaser for value
b. No, the jeweler was not a merchant with regard to the music box
c. Yes, Robert was not a buyer in the ordinary course of business
d. Yes, Robert has assumed only Jack's title, which is no title at all
A share dividend:
a. is a type of distribution.
b. makes no difference in the assets of the corporation or in the shareholder's relative
interest in the net worth of the corporation.
c. is also known as a property dividend.
d. All of the above.
Individuals may use reasonable force to protect themselves, their property, and other
individuals. In this context, reasonable force would mean:
a. deadly force is reasonable to protect property.
b. deadly force is never reasonable to protect property.
c. deadly force is reasonable if an attack threatens the victim with serious bodily harm.
d. Both (b) and (c).
In determining whether a contract containing both a sale of goods and a service is a
UCC or general contract, the majority of states follow the:
a. CISG.
b. predominant purpose test.
c. parol evidence test.
d. procedural or bargaining scrutiny.
Terry and Ernest agree to become partners in advertising and promoting the Midway
Fair to be held three years hence. If they agree orally, will the partnership agreement be
enforceable?
a. Yes, since no writing is required
b. Yes, as long as a division of profits is achieved
c. No, because the venture cannot be performed within one year
d. No, due to arguments about terms
Which of the following is correct with regard to successive assignments of the same
right?
a. It is impossible for an assignor to assign the same right more than once.
b. In England, the first assignee to notify the obligor prevails.
c. The Restatement does not recognize the validity of any successive assignments.
d. The majority rule in the United States is that the first assignee to notify the obligor
prevails.
Jones signed a 90-day note promising to pay $1,000 plus interest. The note states
interest is to be based on a variable published rate external to the note. The sum the
borrower must repay is uncertain; therefore, under Revised Article 3, the note is not
negotiable.
Goods and other inventory items cannot be used as collateral.
The debtor alone decides upon the reorganization plan in Chapter 11 proceedings.
Ron says to Matt, "If you design and landscape my front lawn by the time I return from
Paris next month, I will pay you $5,000." Matt does not respond but has the landscaping
done by the time Ron returns. This is an example of a unilateral contract.
One of the objectives of NAFTA is to promote conditions of fair competition in the
United States, Canada, and Mexico.
No private employer may terminate the employment of or discriminate with respect to
employment against an individual solely because he is or has been a debtor under the
Bankruptcy Code.
The purpose of an agency relationship is to allow principals to extend their business
activities.
"Blue sky laws" are state laws that regulate corporate stock issuance and sale.
Respondeat superior has no application to situations where a partner commits a tort,
because only the partner, and not the partnership, is liable.
After an assignment, only the assignee has a right to the obligor's performance.
Businesses that conduct their business activities through employees are liable for their
employees' torts committed in the course of employment.
The RUPA authorizes the optional, central filing of a statement of partnership authority
specifying the names of partners authorized to execute instruments transferring the
partnership's real property. A filed statement is effective for six-year, renewable terms.
In general, a minor may only disaffirm a contract after he has reached the age of
majority.
A totten trust involves a bank account opened by the settlor of the trust.
An agent may be liable to his principal if he improperly delegates his authority.
