1) the charging order creditor is a lien creditor and is entitled to receive only the
partners share of the partnership distributions.
2) one of the kinds of property that is exempt from bankruptcy under chapter 7s federal
exemptions is ones interest (not to exceed $3,450 in value) in one motor vehicle.
3) in a foreclosure by action and sale, deficiency judgments are generally not permitted
if the property sold is the residence of the debtor.
4) courts provide remedy for the breach of illegal agreements.
5) acceptances by instantaneous forms of communication are effective immediately
upon communication to the offeror.
6) a defendants constitutional right to be free from compelled testimonial
self-incrimination not only bars the prosecution from calling him/her as a witness at the
trial of a criminal case against him/her, but also bars the plaintiff from calling him/her
as a witness at the trial of a civil case against him/her.
7) consequential damages do not include an injury to a person or property caused by a
breach of warranty.
8) partners have a right to be indemnified for expenditures they make for the
partnership from their personal funds.
9) in order to satisfy the writing requirement of the statute of frauds, both parties must
sign the writing.
10) each partner in a limited partnership owns a transferable interest in the partnership.
this is deemed as personal property.
11) utilitarianism is based on the laissez faire theory of capitalism.
12) chica, a womens fashion retailer, buys merchandise from tammy, a fashion designer,
promising to pay for the merchandise within 30 days after receipt. this is an example of
an unsecured credit transaction.
13) presentment warranties are made by any prior transferor of the instrument at the
time the person transfers the instrument.
14) to accept an offer for a bilateral contract, the offeree must perform the requested act.
15) the most important requirement of goods regarding their merchantability is that they
must:
a.be fit for the ordinary purposes for which they are used.
b.be passed without objection in the trade.
c.be adequately contained, packaged, and labeled.
d.conform to any promises or statements of fact made on the label.
16) an otherwise valid contract whose enforcement is barred by the applicable contract
statute of limitations is an example of a(n):
a.voidable contract.
b.quasi-contract.
c.bilateral contract.
d.unenforceable contract.
17) which of the following corresponds to the priority rule for purchase money security
interest in inventory?
a.the pmsi has priority if it is perfected at the time the debtor receives possession of the
inventory.
b.the pmsi has priority if it is perfected within 20 days after the debtor receives
possession of the inventory.
c.the pmsi has priority if the holder of the competing security interest received
notification within three years before the debtor receives the inventory.
d.the pmsi has priority when it has been filed or perfected before the other interest on
the same collateral.
18) a _____ check is a draft on which the drawer and drawee are the same bank (or
branches of the same bank).
a.cashiers
b.tellers
c.certified
d.travelers
19) which of the following statutes enacted by congress is also known as the “refuse
act”?
a.the marine protection, research, and sanctuaries act
b.the safe drinking water act
c.the clean water act
d.the river and harbor act
20) resale price maintenance is also known as:
a.horizontal price-fixing.
b.vertical divisions of market.
c.horizontal divisions of market.
d.vertical price-fixing.
21) the national cooperative research act (ncra) that applies to joint research and
development ventures (jrdvs):
a.provides that treble damages may be recovered for losses flowing from a jrdv
ultimately found to be in violation of section 1 of the sherman act.
b.requires firms contemplating a jrdv to provide the department of justice and the
federal trade commission with advance notice of their intent to do so.
c.lacks provisions to allow the parties to a challenged jrdv to recover attorneys fees
from an unsuccessful challenger.
d.requires application of a per se rule, rather than a reasonableness standard, when a
jrdvs legality is determined.
22) a trading partnership:
a.borrows money to avoid cash flow problems.
b.engages in providing services.
c.has no substantial inventory.
d.buys but does not sell merchandise.
23) although not a complete defense to criminal liability, _____ may diminish the
degree of a defendants responsibility in a crime.
a.voluntary intoxication
b.premeditation
c.infancy
d.insanity
24) the apparent authority of a general agent for a disclosed principal will terminate
without notice to third parties when:
a.the principal dismisses the agent.
b.the third party has notice of the principals death.
c.the purpose of the agency relationship has been fulfilled.
d.the time period set forth in the agency agreement has expired.
25) the first amendment provides that “congress shall make no law . . . abridging the
freedom of speech”. what is often described as being at the “core” of the first
amendment?
a.commercial speech
b.artistic speech
c.advertisements
d.political speech
26) jack was an employee of abc corp. harry, the president of abc, had reasonable
grounds to believe that jack had stolen money from the corporation. abc fired jack. one
month later, jack applied for employment at def corp. the vice president for human
relations at def contacted harry and asked about jacks performance at abc. harry
responded i believe that jack stole money while working here. def declined to hire jack.
jack later discovered what harry had said, and is now suing harry for defamation. what
is the likely outcome of this case?
a.jack will win because harrys statement harmed him.
b.jack will win because harry did not have absolute proof that jack had stolen money.
c.harry will win because he had a conditional privilege to make that statement.
d.harry will win because he had an absolute privilege to comment on a former
employees performance.
27) which of the following is an advantage of a limited partnership?
a.it has the ability to attract large amounts of capital.
b.it is a non-tax paying entity.
c.it can be created by default.
d.it cannot be transferred to another person.