An LLC (limited liability company) is not liable for injury caused by an LLC member
while acting within the ordinary course of business of the LLC.
For conscious parallelism to be proven, each manufacturer should be found to have
acted on its own.
The good faith test for an HDC applies to both transferor and transferee.
The Tax Reform Act of 1976 created the Public Company Accounting Oversight Board
(PCAOB).
The creation of a negotiable instrument is known as negotiation.
If Jim purchases an online license for a computer game, he becomes an e-licensor.
A federal administrative agency that proposes to adopt a substantive rule must give
interested persons an opportunity to participate in the rule-making process.
Persons who are shareholders on the record date are entitled to receive the dividend,
even if they sell their shares before the payment date.
A probate can be defined as a verification of a company’s books and records by a
certified accountant.
The UCC allows the title of goods to be passed without its identification.
Which of the following is true of the Department of Homeland Security?
A) It was constituted immediately after the attack on Pearl Harbor.
B) It provides services in information analysis and infrastructure protection.
C) It protects persons from harassment by federal administrative agencies.
D) It gives the public access to documents in the possession of federal administrative
agencies.
Which of the following criteria must be met for a company to be an S corporation?
A) Shareholders must be other corporations or partnerships.
B) Nonresident aliens cannot be shareholders.
C) The corporation must have more than 100 shareholders.
D) The corporation must have more than one class of stock.
A(n) ________ is a document that two or more persons must execute and sign that
makes a limited partnership legal and binding.
A) limited partnership agreement
B) certificate of limited partnership
C) article of limited partnership
D) limited trade affidavit
Nina wants to borrow money from Tina, but Tina refuses to lend the money unless
another person promises to pay the money in case Nina cannot clear the debt. James
agrees to pay the debt if Nina does not. James is the ________ in this transaction.
A) creditor
B) debtor
C) guarantor
D) facilitator
An agreement that requires selling shareholders to sell their shares to the other
shareholders or to the corporation at the price specified in the agreement is referred to
as a ________.
A) preemptive sale
B) right of first refusal
C) buy-and-sell agreement
D) shareholder voting agreement
When a buyer obtains a loan from a bank to pay a seller, the transaction is known as
a(n) ________.
A) attachment
B) floating lien
C) two-party secured transaction
D) three-party secured transaction
The Consumer Product Safety Commission is the federal administrative agency
empowered to enforce the Food, Drug, and Cosmetic Act (FDCA).
________ is an interest in real property that lasts for a specified person’s lifetime.
A) Life estate
B) Fee simple absolute
C) Servient estate
D) Fee simple defeasible
Allenby Spares Inc. is a shop that sells spare automotive parts from various
manufacturers. A customer buys a faulty brake manufactured by TurboDiezel Inc. from
Allenby Spares and is involved in an accident caused by the faulty brake in his vehicle.
Which of the following is true of this situation?
A) Allenby Spares cannot be held strictly liable since the brake was manufactured by
TurboDiezel.
B) TurboDiezel cannot be held strictly liable as the company is not the seller in this
case.
C) Neither Allenby nor TurboDiezel can be held strictly liable for the faulty brake.
D) Allenby Spares can be held strictly liable for the faulty brake as it is part of the
distribution chain.
A corporation in the state in which it was formed is referred to as a(n) ________.
A) foreign corporation
B) domestic corporation
C) alien corporation
D) overseas corporation
A(n) ________ visa allows U.S. employers to employ in the United States foreign
nationals who are skilled in specialty occupations.
A) H1
B) H4
C) H-1C
D) H-1B
Which of the following is considered intangible personal property?
A) vehicles
B) equipment
C) accessions
D) deposit accounts
________ refers to a court’s jurisdiction over the parties to a lawsuit.
A) In rem jurisdiction
B) Quasi in rem jurisdiction
C) In personam jurisdiction
D) Sua sponte jurisdiction
Creditors that violate the Consumer Lease Act are subject to the civil and criminal
penalties provided in the ________ Act.
A) Truth-in-Lending
B) Fair Credit Billing
C) Fair Credit and Charge Card Disclosure
D) Fair Debt Collection Practices