Vito borrows $110,000 from Watershed Bank to buy a home. If he fails to make
payments on the mortgage, the bank has the right to repossess and auction off the
property securing the loan. This is
a. a short sale.
b. forbearance.
c. foreclosure.
d. the right of redemption.
Answer:
Hillside Vineyards is a family limited liability partnership. All of the partners must be
a. natural persons only.
b. natural persons or persons acting as fiduciaries for natural persons.
c. persons acting as fiduciaries for natural persons only.
d. related.
Answer:
Donatello files a suit against Erasmus. Before going to trial, the parties meet, with their
attorneys to represent them, to try to resolve their disÂpute without the involvement of
a third party. This is
a. arbitration.
b. mediation.
c. negotiation.
d. not a legitimate form of dispute resolution.
Answer:
Cotton Products Corporation is a public company whose shares are traded in the public
securities markets. With respect to financial and other significant information
concerning its securities, the Securities Act of 1933
a. imposes increased responsibility on chief corporate executives.
b. prevents insiders from trading among themselves.
c. requires disclosure.
d. creates a ‘safe harbor’ for companies to make forward-looking statements.
Answer:
A well-known seasoned issuer cannot file a registration statement until after it
announces a new offering.
Answer:
Voluntary consent may be lacking because of misrepresentation but not because of a
mistake.
Answer:
A recording statute allows deeds to be recorded to give notice to the public.
Answer:
The alter-ego theory can be applied to a corporation, but not a limited liability company.
Answer:
An innocent party does not need to suffer an injury to collect damages as a result of a
misrepresentation.
Answer: