Which of the following is an equity instrument?
A.debenture
B.bond
C.common stock
D.promissory note
If the offer specifies no time limit in which to accept:
A.the offeree has 10 days to accept.
B.the offeree has 30 days to accept.
C.the offeree has an unlimited time to accept as long as a revocation has not been made.
D.the offeree has a reasonable time to accept.
Privately held corporations may issue a ________ in lieu of conducting a formal annual
meeting.
A.testament of meeting occurrence
B.unanimous consent resolution
C.statement of meeting substitution
D.proof of alternative meeting
Assume that Iowa has just passed a statute requiring all non-citizens to sit in the back of
public busses. That statute would be reviewed using:
A.rational basis scrutiny
B.intermediate scrutiny
C.strict scrutiny
D.no particular form of scrutiny is required in this situation
The UCC will permit an incomplete or slightly ambiguous contract to be enforced using
each of the following criteria except:
A.past commercial conduct.
B.industry standards or norms.
C.judicial input of any terms necessary to maintain fairness.
D.correspondence or verbal exchanges between the parties.
April has refereed high school and women’s college soccer for ten years. She is fit,
knows the rules without question and has always received excellent evaluations. When
she applies to referee men’s college games, the men’s college referee administrator tells
her that he can’t use her because women won’t get the player’s respect and that the game
looks more serious and acceptable with men refereeing. April is the victim of:
A.disparate treatment discrimination.
B.mixed motives discrimination.
C.disparate impact discrimination.
D.pretextual discrimination.
Once the plaintiff has established a prima facie case under the McDonnell Douglas
standard and the defendant has presented justification for the actions taken, the plaintiff
must now prove any of the following except:
A.the defendant’s stated reasons had no basis in fact.
B.the stated reasons were not the true and accurate reasons.
C.the stated reasons were insufficient to explain the defendant’s actions.
D.the stated reasons contain a mixed motive.
Redrock GP has decided to go out of business. The sale of the partnership assets and the
making of payments to creditors will occur during the ________ phase of the closing of
a partnership.
A.dissolution
B.dissociation
C.winding up
D.termination
Bill has voluntarily organized office birthday parties for the past 10 years because he
enjoys making people happy. One day, Brenda, his boss tells him that he’s been doing
such a great job that she’s going to pay him an extra $200 next month. However, when
Bill gets his check, it’s the same amount that it has always been. Which of the following
is correct?
A.Brenda’s promise is enforceable because it is based on a bargained for exchange
B.Brenda’s promise is unenforceable because it is based on past consideration
C.Brenda’s promise is enforceable because Bill performed a service for the company
and should be paid even if it’s not part of the job description
D.Brenda’s promise is unenforceable because the situation is governed under the
preexisting duty rule
What is not a major change to bankruptcy law in the Bankruptcy Abuse Prevention and
Consumer Protection Act?
A.credit counseling
B.means test
C.proof of income
D.lowering the priority of alimony payments
Trade secrets are protectable:
A.for nine years.
B.for seventeen years.
C.for twenty three years.
D.for as long as the company desires.
Nobel Prize winning economist Milton Friedman believed that:
A.managers that pursue social initiatives with corporate funds are morally correct and
pursuing a path that is required regarding their fiduciary duties owed to stakeholders.
B.Adam Smith’s belief that the common good is best served when economic institutions
don’t pursue a common good but instead pursue an economic advantage is wrong and
misguided.
C.the only responsibility a business has is to maximize shareholder wealth.
D.Adam Smith’s ” invisible hand” theory that the profits realized by amoral business are
justification for the organization’s acts and will ultimately be accepted by society.
Which agency had their oversight power over credit card issuers increased by the Credit
Card Accountability Responsibility and Disclosure Act of 2009?
A.Interstate Commerce Committee
B.Consumer Protection Agency
C.Securities and Exchange Commission
D.Federal Trade Commission
The United Nations Convention on Contracts for the International Sale of Goods, with
regard to cure:
A.does not recognize cover as a seller’s remedy.
B.follows the same cure rules as stated in the UCC.
C.allows an absolute right and obligation for a seller to cure and the buyer must allow
the seller to cure even if the time for performance is past due.
D.requires that the seller apply to the International Court of Justice for the right to cure
and the court will evaluate each case individually.
Jon and Amy work for Dover Farm and Home Company. Jon and Amy are caught one
day, stealing a tractor. The next day, Jon was given a verbal warning and Amy was
terminated.
A.Amy has a claim for discrimination based on gender discrimination.
B.if the company has a written policy providing for termination for theft, Amy does not
have a claim for discrimination based on gender discrimination.
C.Amy does not have a claim for discrimination based on gender discrimination if Jon
has more seniority.
D.Amy does not have a claim for gender discrimination if she is paid more than Jon.
In a destination contract, risk of loss passes to the buyer:
A.when the goods are tendered at the specific destination.
B.when the goods are delivered by the seller to the carrier.
C.when the goods begin the journey to the destination point.
D.when the goods have passed the half way point to the destination.
Which of the following literary works, although fictional, has been extremely
influential in affecting American statutory law and is often cited in legislative histories
regarding employment law?
A.Paradise Lost by John Milton
B.The Grapes of Wrath by John Steinbeck
C.What is to Be Done? Burning Questions of Our Movement by Vladimir Lenin
D.The Jungle by Upton Sinclair
The primary authorization of Constitutional powers is given to Congress under:
A.the Preamble to the Constitution
B.Article I of the Constitution
C.Article VI of the Constitution
D.the Bill of Rights
Sadie is looking to buy a new pair of running shoes. She tells the salesperson that she is
a marathoner and need shoes for distance. The salesperson suggests that Sadie buy a
pair of Mercury running shoes. Mercury shoes are actually designed for walking rather
than running. On mile 21 of her first training run, the shoes start to wear through in the
heel. What type of warranty has been breached?
A.express
B.merchantability
C.fitness for a particular purpose
D.no warranty was made in this situation
Shelly is a state legislator. A bill to legalize gambling has been introduced in her state
and she is deciding how to vote on it. Shelly owns 10,000 shares of stock in a company
that manufactures slot machines. She wants to remain ethical and is not sure if she
should disclose her holdings and disqualify herself from the vote.
A.Shelly need not disclose her holdings and disqualify herself if her vote is based on
what is best for the state and not for her
B.Shelly need not disclose her holdings and disqualify herself from voting as long as
she has nothing to do with negotiating the contract for the slot machine provider
C.Shelly should disclose her holdings and but not disqualify herself from voting
because as long as she doesn’t hide anything she can’t be faulted
D.Shelly should disclose her holdings and disqualify herself from voting because her
potential conflict of interest, real or not, would make her actions ethically questionable
Which of the following is formed to remedy unjust enrichment?
A.implied contracts.
B.contracts based on promissory estoppel.
C.express contracts.
D.quasi contracts.
What is the purpose of the FTC in relation to consumers?
A.the FTC does not apply to consumers
B.to prevent unfair or deceptive act in commercial transactions
C.ensure that the UCC is followed
D.promote interstate commerce
Voting rights of LLC principals are governed by:
A.state law where the LLC is filed.
B.the Uniform Limited Liability Company Act.
C.IRS regulations.
D.the operating agreement.
Fred’s Flooring (FF) contracts with Harry homeowner to install wood flooring
throughout Harry’s home. Harry was to purchase the flooring and the contract was
solely for installation. Payment was to be 20% at the time that the work commenced
and 80% once the flooring was installed. Harry purchased the flooring materials and
paid the 20%, so FF began work. When FF was half way completed, Harry realized that
he didn’t have the money to pay FF upon completion so he bolted the doors and refused
access. If FF wants to rescind the contract and be paid for work completed, FF would
sue for:
A.compensatory damages.
B.consequential damages.
C.restitution.
D.liquidated damages.
Personal financial contributions may be required by previous agreement with regard to:
A.LLCs.
B.LLPs.
C.business trusts.
D.franchisors.
Which of these is not a major part of the Foreign Corrupt Practices Act?
A.requiring corporations to keep accurate records, books, and accounts
B.requiring corporations to refrain from committing copyright violations abroad
C.prohibiting bribery by American corporations of foreign officials
D.requiring issuers registered with the Securities and Exchange Commission to
maintain a responsible internal accounting control system
Which of the following is not required in order to show standing to assert a claim?
A.the party must have suffered an injury in fact
B.the party must be a citizen or taxpayer eligible to use the U.S. court system
C.the party must suffer harm that is direct, concrete and individualized
D.the party must articulate what legal redress exists to compensate for the injury
Every time you hit the delete button on your new computer you get a small electrical
shock. Your friends with the same computer are suffering the same problem. These
computers have a ________ defect.
Explain how the Electronic Communications Privacy Act applies to employee privacy
and protections.
What does the parole evidence rule say and how does it affect contracts?
Do you agree with the court’s decision in Fontainebleau Hotel v. Eden Roc? Explain. Is
this case the same as if your neighbor, who you don’t get along with, builds a 40′ fence
on her property blocking air and light to your deck and swimming pool, claiming she’s
doing it for security and privacy?
Owners in an LLC are called _______.
Explain the structure of the U.S. government and how the checks and balance system
operates to maintain equalization of power between the different parts of the
government.
Donald is an agent representing Xmart, a large department store chain. Xmart has sent
him to deal with Fred to purchase Fred’s land in order to erect a new store. When
Donald first meets Fred, Fred calls Xmart to verify that Donald is in fact an agent
authorized to deal on their behalf. Xmart sends Fred a written confirmation of Donald’s
authorization to act as their agent and states that a contract signed by Donald would be
honored by Xmart. Donald and Fred meet every other day during the negotiations.
While the negotiations are still ongoing, Donald is fired by Xmart because they don’t
feel that he is making sufficient progress. Why is it important for Xmart to
communicate with Fred regarding Donald’s firing?
Delaware’s court which exclusively hears commercial matters is called the Delaware
________ Court.
With regard to international business transactions conducted on-line, what are the two
theories used to determine whose law applies in a dispute?
Being blameworthy in criminal law is called _____.
Imagine that the SEC had investigated ENRON prior to its collapse and had found
extremely serious violations of various securities statutes and regulations. What two
things might the SEC have done in the exercise of their delegated executive powers and
administrative enforcement powers?
In Sisco v. Quicker Recovery, Inc., Sisco, reroute to tow an impounded truck, was
stopped by police for speeding. He refused to provide identification and was arrested
pursuant to state statute. He was injured while resisting arrest and filed a workers’
compensation claim. How did the courts decide the issue of his eligibility for benefits
and what was their reasoning? How was Sisco’s conduct evaluated?
In the case of U.S. v. Colgate, the court found that ________ boycotts do not fall under
the Sherman Act.
What is the underlying goal and function of the UCC and why is it crucial to business?
A ________ is a contract that specifies the parties, describes the collateral, states the
obligations of the debtor, and states the remedies available to the secured party.
Brent has opened a fruit and vegetable business named Brent’s Country Stand, near an
affluent suburban neighborhood. After six months Brent wishes to raise capital for
expansion so he offers a number of his customers the following deal. If the individual
gives Brent $10,000, Brent will provide a promissory note, payable in five years with
full repayment of the principal and a 10% interest rate of return. Brent’s Country Stand
is the maker of the notes and about ten customers have purchased these promissory
notes. Do these promissory notes qualify as securities? Why or why not?
Clyde has been hired to deliver a truckload of hogs to a cross state slaughter house. On
the way there he stops to visit his girlfriend Samantha who lives five minutes off of his
prescribed route. He spends five minutes with her. During those five minutes he is
considered to be on a ______.
Regarding business owners and managers, what is generally considered the most
important part of the Truth in Lending Act? Why?
When hiring a new employee, or when continuing the current employment of an
employee, how and why must an employer take specific steps to protect the public?
A formal filing by a magistrate which binds a defendant over for trial is called an
_____.
