The Sarbanes-Oxley Act has all but which of the following provisions?
a. Creating a five-person Accounting Oversight Board with authority to review and
discipline auditors.
b. Creating severe civil and criminal penalties for enterprises that engage in the
commission of two or more predicate acts within a period of ten years.
c. Increasing the penalties for existing federal crimes and creating new criminal
offenses.
d. Adding new financial disclosure requirements.
Which of the following is/are considered to be conduct to invalidate a will?
a. Duress.
b. Undue influence.
c. Fraud.
d. All of the above.
What term is used to describe the creation of a security interest that is enforceable
against the debtor?
a. Attachment.
b. Pledge.
c. Perfection.
d. Lien.
Which of the following would NOT be a voidable transfer if made within ninety days of
bankruptcy?
a. An exchange for new value.
b. A consumer’s transfer of property valued at $500.
c. A payment made in the ordinary course of business.
d. None of the above.
Administrative statutes issued by an agency are known as:
a. legislative rules or regulations.
b. interpretive rules.
c. hybrid rules.
d. procedural rules.
Redemption is not permitted if the corporation:
a. asks for an injunction.
b. would, by that action, reduce total assets below the stated capital amount.
c. has outstanding treasury shares.
d. is likely to be rendered insolvent.
The Fair Credit Reporting Act has to do with:
a. bills that are incorrectly added.
b. credit checks done by potential lenders.
c. reports made by credit agencies.
d. Both (b) and (c).
In reviewing an agency action, which of the following are included in the questions of
law a court will consider?
a. Whether the agency violated any constitutional provision.
b. Whether the agency acted contrary to the procedural requirements of the law.
c. Whether the agency exceeded its authority.
d. All of the above.
Which of the following is true regarding the Foreign Corrupt Practices Act of 1977?
a. It applies only to corporations whose securities are registered under the Securities Act
of 1934.
b. It applies only to corporations engaged in foreign commerce.
c. The Act makes it illegal to bribe foreign officials to obtain business.
d. All of these are correct.
In which of the following situations would an accountant be subject to criminal
liability?
a. Where the accountant negligently performed an audit.
b. Where the accountant willfully omitted a material fact on a securities registration
statement.
c. Where the accountant refused to turn over working papers to a client.
d. Where the accountant willfully breached a contract.
Which of the following is a type of collateral involving rights evidenced by
indispensable paper?
a. A certificated security.
b. An uncertificated security.
c. A security entitlement.
d. All of the above.
Maxine offered to sell her video camera to Tom for $200 and also stated to Tom, “I will
give you two weeks to accept my offer.” One week later Tom learned that Maxine had
sold the video camera to Cindy.
a. Maxine has revoked her offer to Tom.
b. Maxine’s offer is a firm offer and she must sell Tom a video camera for $200.
c. Maxine must get the camera back from Cindy if Tom accepts within two weeks.
d. An option contract was created, so Maxine is liable to Tom if she sells the camera to
someone else within the two-week period.
Which of the following is NOT a remedy available to an unpaid seller against the
buyer?
a. Recovery of the price.
b. Cover and sue for damages.
c. Recovery of incidental damages.
d. Cancellation of the contract.
Which of the following is NOT imposed by the business judgment rule regarding the
liability of officers and directors?
a. Strict liability.
b. Informed decisions.
c. Decisions in good faith without conflict of interest.
d. Reasonable business judgment.
Under the SEC’s 2005 revisions regarding written communications:
a. all issuers may use a free-writing prospectus after the filing of the registration
statement.
b. communications by issuers more than 30 days before filing a registration statement
are allowed as long as they reference a securities offering that is the subject of a
registration statement.
c. well-known seasoned issuers may engage at any time only in written communications
other than a free-writing prospectus.
d. unseasoned issuers may not publish forward-looking information.
The notice requirement of the Federal Trade Commission’s rule for consumer credit
contracts has the effect of:
a. limiting the types of defenses to payment available to a consumer.
b. eliminating the real defenses to payment.
c. permitting claims and defenses to payment to be asserted by a consumer, even against
holders in due course.
d. permitting some personal defenses to be asserted.
A transfer to a third party of a contractual obligation is known as a(n):
a. assignment of rights.
b. delegation of duties.
c. revocability of assignment.
d. partial assignment.
Amanda ordered fifty personalized sweatshirts from King Manufacturing Company.
After the shirts were specially imprinted, but before they were mailed, Amanda called
King Manufacturing to disavow the contract. The next day the sweatshirts were stolen.
In this case:
a. Amanda must pay the entire purchase price, because she breached the contract.
b. King Manufacturing will have to bear the entire loss, because it had not yet mailed
the shirts.
c. Amanda must bear the entire loss, because the shirts were identified to the contract.
d. King must first seek payment from its insurance carrier, and then collect from
Amanda for any amount not covered by insurance.
Authorized agents cannot execute negotiable instruments on behalf of their principals.
Revised Article 3 provides that the impostor rule does not include an impostor who
impersonates an agent of a principal and who induces someone to create a negotiable
instrument payable to the principal.
How does intentional infliction of emotional distress differ from assault and battery?
What types of situations are covered by intentional infliction of emotional distress that
would not be covered by assault and battery? Give an example.
The test for duress is objective and the act constituting duress must be a tort or a crime
in order to be wrongful.
The framers of the Constitution considered it unnecessary to include in the original
document liberties that the people were to keep for themselves.
If Able Corporation purchases all of the stock of Beta Corporation rather than all of its
assets, there is now a change in Beta Corporation’s legal status.
Nancy has no right to review or copy federal agency records about herself which are
subject to protection under the Privacy Act.
In an employment agreement with Carl, Arnold promises to work for Carl for the rest of
his life. This promise must be in writing to be enforceable.
An assignee of contractual rights acquires only the same rights as the assignor.