Under the Revised Uniform Partnership Act partners owe each other loyalty.
Informal rulemaking consists of publishing notice of a new rule in the Federal Registrar
and allowing interested parties an opportunity to comment on the rule.
Directors and officers are liable to the business for losses resulting from their lack of
due care.
An individual can sue a former employer for OSHA violations that the individual
witnessed.
One partner leaving a limited partnership will not cause the partnership to be dissolved.
The law of Agency generally calls for the principal to indemnify the agent against
financial loss while carrying out his/her duties.
A subagent is an agent of an agent.
You can form a partnership with one individual.
Clean up of Superfund sites is paid for by federal tax funds.
Estoppel is the concept that a principal may be liable to a third party if that party
justifiable believed that the agent had authority to act for the principal and there was a
detrimental change in the third party’s position.
Unless established differently in the Articles of Incorporation, a quorum for a
shareholders meeting is a simple majority.
Incorporating a business involves following state law.
Limited Liability Companies (LLC) are formed under federal law for international
commerce purposes.
The decision on what form of business to make a startup business is important because
it will affect how much the business owner is liable and has control over the new
business.
Not-for-profit corporations have members instead of shareholders and none of their
surplus revenue may be distributed to their members.
FIFRA regulates what environmental area?
A.Agricultural chemicals
B.Clean drinking water
C.Fishing waters
D.City air quality
Judge Blue is evaluating a case of professional negligence involving a claim against an
auditor. Where will Judge Blue look to determine what the ordinary standard of care is
for the auditing profession?
A.The auditing industry, in particular the GAAS or Generally Accepted Auditing
Standards and any other standards the industry has implemented.
B.The United States Department of Labor.
C.The Secretary of State office in the state where the business is incorporated.
D.The shareholders of the corporation in questioned.
What document gives authority to a managing partner to run the business?
A.Articles of Organization
B.Managing Articles
C.Articles of Incorporation
D.International Articles of Trade
The Government in the Sunshine Act had what as its purpose?
A.That meetings of government agencies are open to public observation
B.To enable the government to operate for profit corporations
C.To regulate International owned corporations
D.To regulate healthcare industry
Mr. Smith and Mr. Blue enter into a partnership at will in which each owns half of the
business. Mr. Blue decides to leave the partnership. What should Mr. Blue be paid for
leaving the business?
A.Mr. Blue should be paid half of the value of the business.
B.Mr. Blue should receive 15% of the value of the business for leaving agreement.
C.Mr. Blue receives 1/3 of the value of the business for leaving.
D.Mr. Blue receives nothing for his dissociation.
In reference to Section 8 of the Clayton Act, what does the term interlock mean?
A.When the same corporate officers serve in competing corporations
B.When the capital funding a corporation is from a foreign country
C.When a corporation is incorporated by federal government instead of the state
D.When competitors are using the same supplier in the same market
What is the term for a dissociation that violates the partnership agreement?
A.Wrongful dissociation
B.Breach dissociation
C.Fraud dissociation
D.Agent dissociation
Mr. Blue and Mr. Yellow own all the casinos in Delta City. Mr. Green wants to open but
finds it too difficult to break into the market. Mr. Green sues Mr. Blue and Mr. Yellow
for antitrust violation under the Clayton Act. What is the likely reason for the case being
dismissed?
A.The Clayton Act does not deal with antitrust issues associated with real estate and
services.
B.The Clayton Act does not permit a plaintiff to sue two defendants.
C.Gambling is a vice and as such cannot be litigated in the court system.
D.The common law is that businesses cannot sue after failing to establish themselves in
the commercial market.
Which of the following are exempted from antitrust violations under the Clayton Act?
A.Funeral homes and services
B.Roofers and shingle manufactures
C.Agricultural Cooperatives
D.Wireless phone services
A professional has duty to perform their contractual duties to what standard for his/her
client?
A.To ensure all parties make a profit
B.To perform as an ordinary prudent person in the profession would perform
C.To ensure that all shareholders are happy with the work the professional has
performed
D.To the standards of the International Labor Agreement (ILA)
What type of partner in a Limited Liability Limited Partnership (LLLP) contributes
capital and manages the business.
A.General Partner
B.Limited Partner
C.Foreign Partner
D.Domestic Partner
What form of statute would authorize an individual to form an LLLP?
A.Federal statute
B.State statute
C.International statute
D.City statute
Supermart Inc., a manufacturer of lawn furniture, is ordered by the FTC to place a
warning on their TV advertisements that the price shown does not include everything
that is shown, some items are additional costs. This remedy by the FTC is called what?
A.Affirmative disclosure
B.Fair Credit Monitoring
C.Imprisonment
D.Hybrid order
Under what condition may a partner compete against the partnership business?
A.If the business is in the IT field
B.If all the partners have consented to the partner’s activities
C.If the business is in a high demand field
D.If the partner pays a royalty to the partnership business
What article of the Uniform Commercial Code (UCC) governs the issuance of stocks by
a corporation?
A.Article 8
B.Article 2
C.Article 13
D.Article 9