Business Law 27094

subject Type Homework Help
subject Pages 16
subject Words 3091
subject Authors David P. Twomey

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page-pf1
Failure to mitigate damages limits recovery to:
a. damages that would have been sustained had the plaintiff mitigated the damages
where it was possible to do so.
b. nominal damages and punitive damages.
c. damages for consequential loss.
d. exemplary damages.
Which of the following is an incorrect statement about officers?
a. Their duties are generally set forth in the corporation's bylaws.
b. They have a fiduciary obligation to the corporation.
c. They are agents of the corporation.
d. Their authority as agents is increased if they are shareholders.
In the absence of a provision in the partnership agreement on the sharing of profits,
partners share profits:
a. according to their status in the firm.
b. in proportion to their contribution of services.
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c. in proportion to their capital contribution.
d. on an equal basis without regard to capital or services contributed.
The fact that information is distributed so quickly over the Internet leads to the
conclusion that damages for defamation in cyberspace, in contrast to traditional settings
for defamation, are potentially:
a. the same.
b. smaller.
c. greater.
d. non-existent.
The due process clause:
a. allows the U.S. government to take private property without due process.
b. allows a state to take private property without due process.
c. is, by liberal interpretation, held to be a guarantee of protection from unreasonable
legal procedures.
d. does not apply to state governments.
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Real property includes:
a. land.
b. buildings and fixtures.
c. rights in the land of another.
d. all of the above.
Uniform State Laws are used as a basis for laws by which of the following entities?
a. Congress
b. international trade associations
c. state legislatures
d. local governmental entities
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Partnership property may consist of:
a. real property only.
b. personal property only.
c. any and all property acquired by the partnership.
d. all property contributed by the partners or acquired for the firm or with its funds.
Some states have rejected the requirement of privity but not adopted any set rule.
Instead, these states function under the __________ rule.
a. known user
b. contact
c. flexible
d. privity
Pursuant to the CARD Act of 2009, all credit card companies must have bills in
consumers' hands not less than __________ before the bill is due.
a. seven (7) days
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b. fourteen (14) days
c. twenty-one (21) days
d. one (1) month
A corporation must have:
a. a name.
b. more than one incorporator.
c. a corporate seal.
d. none of the above.
A parents' group in a small town formed an association to run a little league baseball
team. Tom and Mary were members of the association, which was never incorporated.
Tom was elected president of the association and ordered some bats and uniforms for
the team. When the uniforms were not paid for, the baseball supply company sued Tom
and Mary for the contract price. Regarding the liability of Mary:
a. Mary is liable because she is a member of an unincorporated association.
b. Mary is not liable because members of an unincorporated association have no
personal liability.
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c. Mary is liable if she authorized or ratified the purchase.
d. Mary is not liable regardless of whether she authorized the purchase.
Which of the following statements is true regarding the World Trade Organization
(WTO)?
a. The WTO has been in place since 1947.
b. The WTO coordinates its activities with GATT.
c. It provides a dispute settlement body to promote the resolution of trade disputes.
d. It has the ability to impose criminal penalties.
A deposition:
a. is the testimony of a witness taken under oath.
b. is conducted outside of the courtroom.
c. can be used to impeach a witness.
d. all of the above.
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It is lawful to refuse to extend credit to a consumer based on the consumer's:
a. race.
b. marital status.
c. credit history.
d. age.
"Primum non nocere" is Latin for:
a. Above all, do no harm.
b. Let the buyer beware.
c. Hear no evil, see no evil, and speak no evil.
d. No news is good news.
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A right of __________ refusal is the right of a party to meet the terms of a proposed
contract before it is executed, such as a real estate purchase agreement.
a. concomitant
b. conditional
c. formal
d. first
Three defenses are commonly raised to the extraterritorial application of U.S. antitrust
laws. They are:
a. act"of-state, sovereign compliance, and sovereign immunity doctrines.
b. jurisdictional rule of reason, effects doctrine, and comity.
c. foreign legislation, sovereign compliance, and comity.
d. foreign antitrust laws, sovereign immunity doctrine, and International Monetary Fund
applications.
A prospectus sets forth:
a. the key information contained in the registration statement.
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b. information on stocks approved by the SEC.
c. information that the SEC has not reviewed.
d. none of the above.
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.
In applying the "front-page-of-the-newspaper" test to a contemplated course of conduct
one should ask:
a. Would I be found criminally liable if this winds up on the front page of the
newspaper?
b. Would I be liable for monetary damages if this winds up on the front page of the
newspaper?
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c. Would I be willing to have my spouse, friends, and children read about this if it winds
up on the front page of the newspaper?
d. Would I be able to explain this to the authorities if it winds up on the front page of
the newspaper?
Under the Semiconductor Chip Protection Act's __________ exemption, competitors
may not only study mask works, but they may also use the results of that study to
design their own semiconductor chip products embodying their own original masks,
even if the masks are substantially similar, so long as their products are the result of
substantial study and analysis and not merely the result of plagiarism.
a. reverse racketeering
b. forward engineering
c. reverse engineering
d. forward racketeering
California passed a law prohibiting any transporting of nuclear waste in the state unless
the company doing so is a resident or is owned by residents of California. What
constitutional issues does this law raise?
page-pfb
If the parties to a contract agree to undo the agreement and return any consideration
involved, the contract is discharged by:
a. mutual cancellation
b. mutual rescission.
c. novation
d. accord and satisfaction
If a plaintiff seeking damages in a breach of contract action receives $1 in damages, the
damages would most likely be classified as:
a. punitive damages.
b. exemplary damages.
c. nominal damages.
page-pfc
d. compensatory damages.
__________ of the federal environmental laws carry criminal penalties for violations.
a. All
b. Most
c. Only a few
d. None
A certified check was presented for payment to the drawee bank, and the drawee bank
dishonored the check. Which of the following parties is/are potentially liable to the
holder?
a. the drawee only
b. the drawer only
c. the drawer and the drawee
d. the maker
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Which of the following parties will recover in a lawsuit if no defense is raised?
a. only a holder in due course
b. only a holder through a holder in due course
c. only an ordinary holder
d. any holder or assignee
A direct sale to customers in a foreign country is a(n):
a. foreign distributorship.
b. agency arrangement.
c. licensed sale.
d. export sale.
page-pfe
When a tort or crime is committed by an employee:
a. the principal is vicariously liable.
b. the principal is not vicariously liable.
c. vicarious liability cannot be imposed on the employer because an employee is not an
agent.
d. vicarious liability could be imposed on the employer if the act was committed within
the course of employment.
Which is not an element of attachment?
a. the filing of a financing statement
b. a security agreement
c. value received by the debtor
d. the debtor has rights in the collateral
If the costs of performing a contract have risen so unexpectedly and dramatically that
performance would result in a substantial loss, the contract may be discharged on the
grounds of:
a. commercial impracticability.
page-pff
b. commercial impossibility.
c. economic frustration.
d. economic stability.
The main purpose of the International Monetary Fund is to:
a. provide easy access to money for multinational corporations.
b. facilitate the expansion and balanced growth of international trade.
c. create a model simplified lending system.
d. facilitate currency exchanges.
An offer gives the offeror the power to bind the offeree by contract.
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The Railway Express Agency delivered a shipment of goods to Lorraine. Payment for
the goods was made with a certified check, payable to the order of the Railway Express
Agency. The check was drawn by Lorraine on the First National Bank of Detroit. Later,
the bank refused to pay the check when it was presented by Railway Express, the
holder, because the bank had become insolvent and stopped doing business. The
Railway Express Agency sued Lorraine. Lorraine claimed that she was not liable on the
check because it was certified. Is she correct?
The issuer of a letter of credit must verify that the underlying transaction has been
performed.
Trust is a fundamental basis of the capitalist system that is central to the expectations of
investors, customers, and other firm stakeholders.
page-pf11
Generic terms that refer to a type or class of goods are never subject to trademark
protection.
Tuttle died at age 96, leaving a will that she made at age 40 that provided that her three
children would share her estate equally. At the time of her death, only one child, Anna,
was living. Tuttle's two deceased children, Bill and Caroline, each had two children
who were living at the time of Tuttle's death. Anna is claiming that she is entitled to the
entire estate because the bequests to Bill and Caroline lapsed upon their deaths prior to
Tuttle's death. How will the estate be settled?
A proof of claim is not required for a creditor to participate in the distribution of the
proceeds of the liquidation of the debtor's estate.
page-pf12
Barnes agrees with Morgan to enter into the management of a new subdivision of
residential housing. Morgan appoints Barnes as his manager for the duration of the
development program. During the course of the construction, Barnes decides to use
funds specified for the subdivision for an office space project that Barnes alone has
been interested in completing. Morgan is very angry on learning of Barnes' actions and
terminates the agency. Barnes insists that the agency cannot be terminated in this
manner. Is Barnes correct?
The judge, not the decedent, has the privilege of naming who is to administer the estate
of a person who has died with a will.
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The sharing of profits and losses is conclusive evidence of partnership.
Differences among businesses preclude the development of any universal categories of
ethical behavior.
An oral contract to sell custom-made goods to a buyer is binding if the goods are not
suitable for sale to anyone else in the ordinary course of the seller's business, and the
seller has made a substantial beginning in manufacturing or procuring the goods.
If there is a reference to a third party to determine a dispute, most often the loser is not
allowed to appeal the third party's decision.
page-pf14
An easement is not only a right in the land of another, but it is also a right that belongs
to the land that is benefited.
Exchanges, brokers, and dealers who deal in the securities traded in interstate
commerce or on any national security exchange must register with the SEC unless
exempted by it.
If an instrument is drawn in favor of an officer of a named corporation, the instrument
is payable to the corporation, the officer, or any successor to such officer.
page-pf15
Subject to constitutional limitations, corporations may be regulated by state statutes.
Morris rented an apartment in a relatively safe neighborhood of a major city. The door
to Morris' apartment had two locks, and one of these was of the deadbolt variety
designed to prevent burglaries. Morris left for work and engaged both locks. When
Morris returned from work, Morris found that a burglar had broken into the apartment
by forcibly breaking the locks. Morris sustained a substantial loss of money and
property from this burglary. Morris notified the building superintendent and the owner
who had the locks repaired. The attempted repairs were not entirely successful,
inasmuch as the locks did not properly lock on some occasions. This enabled the door
to be readily opened whenever anyone pushed against the door. Morris complained
frequently about the condition of the locks, but the owner would take no further action
regarding them. Finally, a burglar again broke into Morris' apartment, stealing
substantial sums. This time, there was no breaking of the locks. The evidence was that
the locks were not working properly at the time of the burglary. Morris sued the owner
for the losses from the two burglaries. Decide.
The sovereign immunity rule allows management immunity from liability for corporate
acts where there is a reasonable indication that the acts were made in good faith and
with due care.

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