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1) corporations may be held criminally liable even in the absence of proof that high
corporate officers ordered or acquiesced in the offense charged.
2) a claim in recoupment is a claim of the person obligated on the instrument against
the original payee of the instrument.
3) an insurance contract, though transferring existing risk, is legally permissible and
valid contract.
4) a credit card issuer that fails to comply with the fair credit billing act forfeits its right
to collect the disputed amount from the cardholder.
5) the judgment winner can seek to enforce the judgment by obtaining a writ of
execution or by garnishment.
6) when a judges sentencing decision is challenged on appeal, the governing standard
will be one of reasonableness.
7) as an association, a partnership is a voluntary and consensual relationship.
8) for a noncompetition clause to be enforceable, the clause must serve a legitimate
business purpose.
9) an accountant who substantially performs her duties to her client triggers the clients
duty to pay the contract price, less any damages resulting from defects in her
performance.
10) an order telling the respondent to cease engaging in the deceptive or unfair conduct
is the usual penalty resulting, from a successful ftc adjudicative proceeding.
11) an agent filing for bankruptcy automatically terminates the agency relationship.
12) section 5 of the 1933 act provides an exemption from registration for transactions of
securities by any person other than an issuer, underwriter, or dealer.
13) potter owes george $500. potter writes a check payable to george for that amount.
later, george loses the check. potter is now discharged from his liability on the check.
14) ratification makes a contract valid from its inception.
15) evan plans to open a company named maryland for which her trademark is m. this
trademark in no way resembles the famous mcdonalds trademark. however, she fears
that the latter might think otherwise and sue her in future. evan does not want to take
any risk and hence seeks the courts judgment on the issue. can she do it?
a.yes, she can do it because she wishes to seek the courts opinion.
b.yes, she can do it under state and federal declaratory judgment statutes.
c.no, she cannot agitate an issue that has not yet arisen.
d.no, she cannot agitate the issue as she knows that the two marks are not similar.
16) settlements in liability cases occur only when:
a.the insurer issues a declaratory judgment.
b.the third party gives up the legal right to litigate.
c.the third party demands prelitigation payment.
d.the third party institutes litigation.
17) before a court can determine a defendants market share, it must first define the
relevant market. one of the components of a relevant market determination is the
relevant:
a.resource market.
b.supply market.
c.geographic market.
d.competitive market
18) which of the following is an advantage of a sole proprietorship?
a.owners of sole proprietorships can raise a lot of capital quickly for expansion
purposes.
b.the owner of a sole proprietorship has complete control over the business.
c.the sole proprietorships existence does not depend entirely upon the sole proprietor.
d.the owner of a sole proprietorship has no liability.
19) an agreement in which a party promises to supply all the other partys needs for a
particular commodity is called a(n):
a.requirements contract.
b.composition agreement.
c.output contract.
d.nominal consideration.
20) kathy was accused of securities fraud. during the government investigation, she
destroyed relevant documents. under the sarbanes-oxley act of 2002, kathy may:
a.be civilly but not criminally liable for the destruction of documents.
b.face fines but not prison for the destruction of documents.
c.face fines and/or a maximum of 20 years in prison.
d.be considered a whistleblower.
21) in which of the following is the implied warranty of habitability applicable?
a.both residential and commercial property leases
b.only residential property leases
c.only commercial property leases
d.only agricultural property leases
22) a trademark is considered to be abandoned when:
a.the owner fails to use it.
b.it acquires a generic meaning.
c.it has been obtained by fraud.
d.it is suggestive or arbitrary.
23) which ethical theory justifies the protection of a neo-nazis right to hateful speech,
even though the cost of such speech includes damage to relations between ethnic
groups, which may far outweigh any benefits the society receives from the speech?
a.rights theory
b.teleological theory
c.profit maximization theory
d.utilitarian theory
24) any attempt to limit consequential damages for injury caused to a person by
consumer goods is considered prima facie _____.
a.unconscionable
b.reasonable
c.punitive
d.penal
