1) when an offer is unclear about the form of acceptance it requires, ideally it must not
be accepted.
2) minutes of the meetings are usually kept by the board of directors.
3) a principal who instructs an agent to perform an unethical act will have no recourse
against an agent who refuses to perform.
4) it is possible to create a corporation without a governments permission.
5) one requirement of a joint tenancy is that the co-owners must be married.
6) on june 1, mike writes a check payable to pete. without ever being paid, the check is
eventually negotiated to hal, who receives it on september 15, with notice of the date on
its face. hal is not a holder in due course of the check.
7) a party can withdraw repudiation before the other party has canceled the contract or
has materially changed position by clearly indicating that the person intends to perform
his obligations.
8) the two step process for obtaining an enforceable security interest consists of
attachment and perfection.
9) a partner may not compete against the partnership unless he or she obtains consent
from the other partners.
10) a totten trust is created to avoid fraud.
11) one example of procedural unconscionability is the use of fine print in stating a
contractual provision.
12) pat is a rich boy whose parents supply him with every conceivable necessity of life.
while still a minor, pat buys a coat on credit from a mens store for $5,000. after wearing
the coat for a while, pat decides that it bores him and that he would like to disaffirm.
which of the following is most likely to be true? assume that pat is still a minor.
a.pat can disaffirm the contract, and he must return the coat.
b.pat cannot disaffirm the contract, but he is liable only for the reasonable value of the
coat.
c.pat cannot disaffirm the contract, and he is liable for the full price of the coat
($5,000).
d.pat can disaffirm the contract, but the store will sue him for deceit.
13) an individual may be fined up to _____ and imprisoned for up to _____ for a
criminal violation of the 1934 act.
a.$15 million; 10 years
b.$5 million; 10 years
c.$15 million; 20 years
d.$5 million; 20 years
14) when a promoter is liable on a preincorporation contract, the promoter is released
from liability on the contract:
a.only after the contract has been fully performed.
b.when the corporation ratifies the contract.
c.when the corporation and the third party to the contract agree to release the promoter
from liability.
d.when the corporations articles have been filed by the secretary of state.
15) a(n) _____ case involves harm caused by the principals negligence regarding the
agent.
a.respondeat superior
b.direct liability
c.vicarious liability
d.implied warranty
16) a _____ is oral in nature.
a.nuncupative will
b.holographic will
c.notarial will
d.self-proved will
17) according to the rupa:
a.partners have no liability for the obligations of the partnership.
b.a partnership cannot sue or be sued in its own name.
c.a partnership does not have a life apart from its owners.
d.partnerships have continuity of existence.
18) banks can retain the legible copy of check for a period of:
a.seven months.
b.thirty days.
c.seven years.
d.thirty weeks.
19) most of the common law of corporations deals with:
a.creditor and shareholder rights.
b.incorporation of not-for-profit organizations.
c.promoter and manager rights.
d.incorporation of sole proprietorships.
20) if the party who repudiated the contract changes his mind, the repudiation can be
withdrawn:
a.before the other party has canceled the contract.
b.after the other party has materially changed position.
c.at any point in time.
d.even if the contract has been cancelled.
21) steve, martha, and pete formed an llc two years ago. steve has contributed
$100,000, martha has contributed $50,000, and pete has contributed $50,000 to date to
the llc. the llc made a profit of $30,000 in two years. by default, how much will steves
share of profits be?
a.$10,000
b.$20,000
c.$15,000
d.$30,000
22) the traditional objective of the business corporation has been to:
a.act in a socially and morally responsible manner.
b.act consistently with the purpose clause of the corporation.
c.serve the community in which the business resides.
d.enhance corporate profits and shareholder gain.
23) in case a particular agency enabling legislation provides for stricter procedures than
the administrative procedure act (apa), those procedures will be considered void.
24) which of the following ethical theories is closely related to the profit maximization
theory?
a.utilitarianism
b.kantianism
c.deontological theory
d.rights theory
25) in which of the following orders are the proceeds from the sale of collateral by the
secured party distributed?
a.debtor, creditors debt, selling expenses, and junior interests
b.selling expenses, creditors debt, junior interests, and debtor
c.creditors debt, selling expenses, debtor, and junior interests
d.junior interests, debtor, selling expenses, and creditors debt
26) which of the following characterizes the codes standards of definiteness?
a.it sees courts as contract enforcers.
b.it requires a high degree of definiteness in contracts.
c.it can create contractual liabilities.
d.it cannot fill in gaps in contracts.
27) what remedy is provided by states that allow disaffirmance to adults who suffer
losses due to a minors misrepresentation of age?
a.there is no remedy
b.tort of necessaries
c.tort of deceit
d.emancipation
28) an accident on a state highway rendered jill in comatose state for nearly a month.
there was an old nurse who used to take care of her then. after her recovery, jill felt so
indebted to the nurse that she contracted to transfer all her assets to her to fulfill her
(jills) moral obligation. although this contract lacks ______, it can be enforced.
a.value
b.consideration
c.acceptance
d.capacity