Mike is planning on incorporating his business in the state of Delaware. Which of the
following regarding the name of Mike’s business is TRUE?
a. He will be able to use the words “Association” or “Institute” in his company name.
b. He will not be able to use abbreviations (such as Inc. or Corp.) in his company name.
c. His company name will not have to include one of the following words: Corporation,
Incorporated, Company or Limited.
d. His company name can be the same as another corporation that already exists in
Delaware.
Agreeing not to open a competing business could be consideration.
a. True
b. False
The FTC blocked the merger of Staples, Inc. and Office Depot because they controlled
a large percentage of the national market for office supplies.
a. True
b. False
Fashions, Inc. has 12 shareholders. There is no shareholder agreement concerning the
board of directors. The company is subject to the Model Act. How many directors is
Fashions, Inc. required to have?
a. None.
b. One.
c. Two.
d. Five.
In contract law, a minor is someone under the age of 21.
a. True
b. False
Illegally obtained evidence is not permitted to be used at a criminal trial based upon the
a. silver plate doctrine.
b. exclusionary rule.
c. fair play doctrine.
d. Eighth Amendment.
When a contract falls within the Statute of Frauds but is not in writing, the contract is
a. illegal.
b. unenforceable.
c. void.
d. voidable.
Contracts must use formal terminology such as “whereas” and “heretofore” in order to
be legal.
a. True
b. False
Generally, a contract may include language that limits or alters the damages recoverable
for a breach of warranty, as long as the restrictions are not unconscionable.
a. True
b. False
After a meeting with his advisor to register for a class at State University, Ron forgot
his calculator in the dean’s outer office. Theresa, another student, found the calculator.
The calculator is treasure trove and Theresa may keep it.
a. True
b. False
“Bait and switch” is
a. advertising a product for sale and then giving the customer a rain check.
b. placing the store brand and the national brand side-by-side in a store to confuse
customers.
c. selling the store brand at a lower price than the national brand.
d. advertising certain goods and then pressuring the customer to buy different, more
expensive goods.
TriColor, Inc. purchased a piece of land from HBC, Inc. Hazardous waste was
subsequently discovered on the land. Even though TriColor did nothing illegal, it may
be liable under CERCLA for the cleanup costs.
a. True
b. False
A seller may not make repairs or adjustments after the goods have been tendered, even
if that action will bring the goods into conformity in order to “cure” nonconforming
goods.
a. True
b. False
The doctrine of stare decisis
a. makes the legal process more expensive.
b. is an equitable remedy.
c. makes the law more predictable.
d. is unimportant to the common law.
Which of the following is true about wills?
a. A will can be amended to change specific terms by execution of a codicil.
b. The testatrix cannot disinherit her minor children without stating a reason in the will.
c. If the will meets the legal technicalities, the surviving spouse cannot override it.
d. Once a will is written, it cannot be changed.
Sharon fell while making an inspection of a machine at work and in the fall, she broke
her arm. Can she collect workers’ compensation for the time she had to be away from
work as she recovered?
a. Yes, since the injury occurred while she was engaged in her job at work.
b. Yes, if she can prove that the injury was caused by a fellow employee.
c. No, she can only receive compensation for her medical expenses.
d. No, she will have to sue her employer if she wants to collect for lost wages.
Brad was having financial difficulties and thought bankruptcy might be in his future. He
transferred his sports car to his brother with the agreement that if he didnt file for
bankruptcy within the next 18 months, his brother would return the car to him. Brad did
file for bankruptcy in ten months. The bankruptcy trustee can bring the car back into
Brads estate for the purpose of providing assets for Brads creditors.
a. True
b. False
If a foreign government hires an American consulting firm to help the country’s textile
industry improve production operations, the contract is commercial, and if the foreign
government refuses to pay, the consulting firm may sue the government in American
courts.
a. True
b. False
A business corporation can be incorporated under either state law or federal law.
a. True
b. False
Cameron, editor of the local newspaper, assigned to Jim the writing of a story about
pollution of a nearby stream. Although Jim used reasonable care in gathering and
checking his information, unknown to Jim, the story contained a defamatory statement
about Maureen. Maureen reads the story and sues Jim for libel. Cameron, who read and
published the story
a. must indemnify Jim for Maureens claim.
b. need not indemnify Jim for Maureens claim because Jim should have checked his
facts more carefully.
c. need not indemnify Jim for Maureens claim because Jim breached his duty to obey
instructions.
d. can recover damages from Jim for any injury to the newspaper resulting from Jims
story.
Specific performance is available when the subject matter of the contract is unique.
a. True
b. False
The Consumer Financial Protection Bureau (CFPB) was created to represent consumers
by filing suit in federal court asking for damages on behalf of the injured consumer.
a. True
b. False
GBH, an accounting firm, was hired to prepare financial statements for E-treme. Great
State Bank has asked to see GBH’s working papers since it is thinking about extending
a $4 million line of credit to E-treme. Which of the following statements is correct?
a. GBH can show the bank the working papers because Great State Bank has a proper
purpose.
b. GBH can show the bank the working papers because Great State Bank is a known
third party.
c. GBH cannot show the bank the working papers under any circumstances as they are
not finalized.
d. GBH cannot show the bank the working papers unless E-treme gives permission.
The three branches of government in the United States are
a. the executive, legislative, and administrative.
b. the administrative, executive, and statutory.
c. the executive, legislative, and judicial.
d. the administrative, legislative, and international.
If you have an established relationship with a buyer, you can sell small tracts of land
without a written contract.
a. True
b. False
In a contract modification, the phrase “charged with such amendment refers to
a. the party who suggested the change.
b. the party who will benefit from the change.
c. the party who will be adversely affected by the change.
d. the party who did NOT suggest the change.
Walter enters a dentist office and points to a damaged tooth. The dentist, Matt, treats the
tooth. If Walter refused to pay and Matt sued,
a. Walter would win as there was no contract.
b. Walter would win because of the UCC.
c. Matt would win; this is an implied contract.
d. Matt would win in quantum meruit.
DoorWay Computers, Inc., the trademark owner of “DoorWay,” sought a court
injunction to prevent Handyman Hardware, Inc. from using the domain name,
“DoorWay.com.” A jury will decide whether DoorWay is entitled to this remedy.
a. True
b. False
If Sara makes an interstate phone call to sell land that she does not own, Sara is guilty
of
a. wire fraud.
b. larceny.
c. mail fraud.
d. nothing. She merely thought of and executed a clever way to make money.
Owners in a joint tenancy with the right of survivorship cannot transfer their interest
during their lifetime.
a. True
b. False