Cole is a shareholder of Donut Holes, Inc. Cole will be deemed to have a fiduciary duty
to Donut Holes and its minority shareholders if he has
a. a restriction on the transferability of his shares.
b. a right of first refusal.
c. a sufficient number of shares to exercise de facto control.
d. voting rights.
To “publish” a will means to release it to the media.
The case of Max v. National Credit Co. is heard in a trial court. The case of O! Boy! Ice
Cream Co. v. Refrigerated Transport, Inc. is heard in an appellate court. The difference
between a trial and an appellate court is whether
a. the proceedings focus on the presentation of evidence and the examination of
witnesses.
b. the court is appealing.
c. the parties question how the law applies to their dispute.
d. the subject matter of the case involves complex facts.
Brad, Carlos, and Dora are general partners in Eastside Physicians, a medical clinic.
The partners decide to dissolve Eastside. Dora collects and distributes the firm’s assets.
This results in
a. nothing with respect to the firm’s existence.
b. the continuation of the firm’s business.
c. the termination of the firm’s legal existence.
d. the temporary suspension of the firm’s business.
Revenue & Sales Corporation and Software Solutions, Inc., enter into a contract for the
design of custom software for which Revenue & Sales agrees to pay $4,500. Software
Solutions transfers the right to payment under the contract to Creditline Company.
Creditline is
a. an assignor.
b. an assignee.
c. an obligee.
d. a delegate.
Finn and Glenda want to form and do business as Hobby Crafts Corporation. A
corporation is
a. a natural person.
b. a tangible thing.
c. an artificial legal person.
d. a visible radiance.
Helene’s debt to Imprints Printers is past due. Imprints obtains a judgment against
Helene, but she refuses to pay it. Imprints asks the court for an order that directs the
sheriff to seize and sell any of Helene’s nonexempt real or personal property that is
within the court’s geographic jurisdiction. This is a request for
a. a writ of execution.
b. a composition agreement.
c. an order that would violate most state laws.
d. an order of garnishment.
Gustaf and Hilltop Country Club disagree as to the exact amount Hilltop owes Gustaf
for his landscaping work. They form a new agreement that, on fulfillment, will
discharge the prior obligation. This is
a. a covenant not to sue.
b. an accord and satisfaction.
c. a release.
d. promissory estoppel.
Fred goes to Carla, a knowledgeable dog breeder, and tells her that he wants to get a
dog that will be good with small children. Carla sells Fred a dog. When Fred takes the
dog home, it bites both his small children and causes them serious injuries. Fred can sue
Carla for breach of
a. an express warranty.
b. an implied warranty of fitness for a particular purpose.
c. an implied warranty of merchantability.
d. a warranty of title.
Dick’s Burgers n” Shakes enters into an oral contract with Restaurant Equipment
Warehouse (REW) for REW’s sale to Dick’s of a single-spindle milkshake mixer for
$300. Assuming the terms can be proved, the contract is enforceable by
a. the seller or the buyer.
b. the manufacturer of the mixer.
c. any third party with an interest in the deal, such as one of Dick’s customers.
d. none of the choices.
Vending Products Company operates a vending machine manufacturing plant on
Wandering River. Discharging pollutants from the plant into the river can result in
a. civil penalties and criminal penalties.
b. civil penalties only.
c. criminal penalties only.
d. no penalties.
Custom Business Applications Corporation substantially complies with all conditions
precedent to incorporation. Custom Business is most likely
a. a corporation by estoppel.
b. a de facto corporation.
c. a de jure corporation.
d. ultra vires.
O.K. Oil holds itself out to others as being a corporation but makes no attempt to
incorporate. In this circumstance, O.K. is most likely
a. a corporation by estoppel.
b. a de facto corporation.
c. a de jure corporation.
d. ultra vires.
Ben, who runs a livestock breeding business, owes the Circle C Ranch $40,000. Ben
agrees to pay the Circle C a percentage of his profits each month until the debt is paid.
Because of this agreement, the Circle C is
a. Ben’s creditor and partner.
b. Ben’s creditor only.
c. Ben’s partner only.
d. neither Ben’s creditor nor his partner.
Drew contracts to sell a residential duplex to Evan. The contract provides that if Drew
does not close the deal by September 15, he must pay Evan one-half of the contract
price. This provision is not enforceable because it is
a. a liquidated damages clause.
b. a mitigation clause.
c. a nominal damages clause.
d. a penalty clause.
Lenders Loan Company and Mortgage Service CorporationNadya’s creditorscontract
with Nadya for the discharge of her 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.
Animal Feed Corporation and Beneficial Trucking, Inc., enter into a contract for
Beneficial to transport a truckload of hay for which Animal Feed agrees to pay. Due to
schedule conflicts, Beneficial contacts Crop Transport Company, to which Beneficial
“assigns all rights under the contract.” This transfer is
a. an assignment and a delegation.
b. an alienation and a negotiation.
c. an obligation and a cancelation.
d. prohibited.
Pete borrows $5,000 from Willy in a secured transaction using Pete’s BMW as
collateral. Pete then borrows $7,000 from Janet using the same car as collateral. Neither
Willy nor Janet perfects their security interests. Pete defaults on the loans. The party
with priority is
a. Willy, because his interest was the first to attach.
b. Janet, because Pete owes her more money.
c. Janet, because her interest was the second to attach.
d. Willy, because Pete owes him less money.
Jeannie runs a dude ranch called J Bar B Dude Ranch and has a Web site called
www,jbarbduderanch.com. Ben starts another dude ranch and registers a Web site called
www,jbarbduderanch.com. Ben is
a. cybersquatting.
b. cyberstalking.
c. not doing anything illegal.
d. counterfeiting.
Mythic Games Company employs two hundred workers full-time. If Mythic Games
plans to have a mass layoff, it must provide its employees with at least
a. thirty days of notice.
b. sixty days of notice.
c. ninety days of notice.
d. one year of notice.
Seth offers to buy a house from Tia for less than Tia paid for it, stating that he would
“hate to see anything bad happen to Tia or her house.” Tia agrees to sell. Regarding this
agreement, a court would likely
a. enforce it.
b. not enforce it.
c. reform it to reflect the true market value of the property.
d. order the parties to renegotiate the price.
Trek Transport Company uses a mark associated with its name to distinguish its
services from those of other trucking firms. This mark is
a. a certification mark.
b. a collective mark.
c. a service mark.
d. a trade name.
Marshall owns a piece of land, but James owns the mineral rights to Marshall’s land.
James wishes to sell the mineral rights. James
a. cannot sell the mineral rights.
b. can only sell the mineral rights if Marshall agrees.
c. must give Marshall 30 percent of the proceeds of the sale of the mineral rights.
d. can sell the mineral rights without consulting Marshall.
Rhett works at Scarlett’s Sandwich Caf. After work, in the parking lot, Rhett finds a
diamond ring lost by Thalia. Title to the ring is possessed by
a. Rhett.
b. Scarlett’s.
c. Thalia.
d. the state.
Corporate Properties, Inc., attempts to acquire a substantial number of the shares of
Downtown Investment Corporation through a public offer to Downtown’s shareholders.
This is
a. a consolidation.
b. a tender offer.
c. a short-form merger.
d. a termination.
Beans Coffee & Cocoa Company makes and sells a chocolate-flavored coffee drink
under the name “CoCoCafe.” Darkroast Java, Inc., later markets a similar drink under
the name “KoKoKafe.” This is most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. a theft of trade secrets.
The functions of the Social Security Administration, like those of other administrative
agencies, include
a. adjudication.
b. declaration.
c. enunciation.
d. pronunciation.
In some cases, foreign states are not immune from the jurisdiction of U.S. courts. These
circumstances are governed by the
a. Uniform Commercial Code.
b. Foreign Sovereign Immunities Act.
c. European Union.
d. North American Free Trade Agreement.
Congress enacts a statute, the Federal Deposit Insurance Corporation (an administrative
agency) issues rules, the Southeast Financial Institutions Association (a private
organizations) issues instructions, South Valley Bank posts a memo with orders for its
employees, and Tina tells her co-worker about a recent news story. Sources of law
include
a. the instructions issued by private associations.
b. the orders posted by employers.
c. the rules issued by federal administrative agencies.
d. the stories released by news agencies.
Jill, in good faith and for value, gets from Kiley a negotiable bearer instrument. Jill
does not know that Kiley stole the instrument. Jill is
a. an HDC.
b. not an HDC, because Kiley did not acquire the instrument for value.
c. not an HDC, because Kiley did not acquire the instrument in good faith.
d. not an HDC, because the instrument is a bearer instrument.
Owen is a federal judge whose judicial decisions are part of case law, which does not
include interpretations of
a. other case law.
b. constitutional provisions.
c. statutes.
d. sound bites in the media.
The First Amendment requires a complete separation of church and state.
A breach of contract entitles the nonbreaching party to sue for monetary damages.
“Blue sky laws” regulate securities data stored in cloud computing servers.
Property acquired by the partnership is the property of the partners individually.
The doctrine of sovereign immunity cannot immunize a foreign nation from the
jurisdiction of U.S. courts.
Dissolution is the legal death of the artificial “person” of a corporation.
Bribing foreign officials to obtain favorable business contracts is not a crime.
If a creditor wins a judgment against a debtor and the debtor will not or cannot pay the
amount due, the dispute is at an end.
An employer can refuse to bargain collectively with a duly designated employee
representative.
Floramaria is an elderly woman who lives with her niece Galaxy. Floramaria is
dependent on Galaxy for support. Galaxy advises Floramaria to “invest” in Galaxy’s
“professional gambling” venture, or Galaxy will no longer support her. Floramaria
liquidates her other investments and signs a contract with Galaxy, to whom Floramaria
gives the funds. Can Floramaria set aside this contract?
Law consists of enforceable rules governing relationships among individuals and
between individuals and their society.
Businesspersons are expected to make decisions that are ethically sound.
Employers that fall under the provisions of the Federal Unemployment Tax Act of 1935
are taxed at regular intervals.
Administrative law consists of the rules, orders, and decisions of administrative
agencies. .
Dieter’s will provides for a distribution of his assets on his death. Who will “distribute”
Dieter’s property, and what are the steps involved?
Whistleblower statutes protect employers who report their employees’ wrongdoing.
For consideration to have “legally sufficient value,” it must consist of goods or money.
An employee’s resignation must be the foreseeable result of an employer’s
discriminatory action to support a showing of constructive discharge.
The act of state doctrine does not have important consequences for firms doing business
in other countries.
A customer has sixty days from the date of receipt of a statement of an electronic
transfer to notify the financial institution of any errors.