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1) for federal district court diversity jurisdiction to exist, the amount in controversy
must exceed $500,000.
2) a partnership and its partners are usually liable for a partners intentional torts.
3) most property insurance policies are open policies that allow the insured to recover
the fair market value of the property, subject to the limits in the policy.
4) in a partnership, each partner has limited personal liability to partnership creditors.
5) any authorized ownership and exercise over an instrument is referred to as
conversion.
6) if the bailee returns the goods in a damaged condition, there is a rebuttable
presumption of negligence on the part of the bailee.
7) sherman act violations may give rise to civil prosecutions only.
8) the uniform commercial code sufficiently addresses the concerns that parties have
when contracts are made to create or distribute information.
9) specific performance is almost never awarded in contracts for the sale of land.
10) a security interest is said to be a property interest in the collateral.
11) although agency captives and agency shadows are different phenomena, they
contribute to the same arguable result: an increase in agency independence.
12) an oral stop-payment order normally is good for 14 days.
13) for a battery to exist, the victim must be aware of a harmful or offensive contact at
the time that contact occurs.
14) which of the following is true about a nontrading partnership?
a.its regular business is buying and selling merchandise.
b.it has no normal borrowing needs.
c.it borrows money to avoid cash flow problems.
d.it has an inventory.
15) under the uniform limited partnership act (ulpa), a new partner may be admitted
only upon the fulfillment of which of the following conditions?
a.each partners consent is required.
b.a written agreement is required.
c.the secretary of states consent is required.
d.the vote of the partners is required.
16) generally, a landlord may evict a tenant by:
a.moving the tenant out himself and suing to recover unpaid rent.
b.moving the tenant out himself and changing the lock.
c.finding a new the tenant to occupy the place.
d.filing a lawsuit against the tenant.
17) amos, beverly, carlos, and dan were partners in a partnership in which the
agreement states that the partnership will continue until 2010. amos died in 2006. what
vote of the remaining partners is necessary to continue operating the partnership
business?
a.a simple majority vote
b.a two-thirds majority vote
c.a three-quarters majority vote
d.a unanimous vote
18) mini corp. and huge, inc. are competitors. mini holds the single largest market share
in the markets they compete in. huge is third in terms of market share. mini plans to
acquire huge. which of the following, if true, would help bolster a conclusion that the
acquisition is unlawful under clayton act section 7?
a.that mini has had a history of acquiring ownership over competitors in order to
increase its market share.
b.that there are about 25 competitors other than mini and huge while there were only 10
competitors 10 years ago.
c.that mini has a 25 percent market share now and would only be increasing its market
share by another 10 percent by acquiring huge.
d.that huge is an aggressive firm and it has developed a plethora of patentable
technologies in the last five years.
19) when personal property is used in conjunction with, real property in such a way as
to be treated as part of the real property, it is known as a _____.
a.consideration
b.gift
c.fixture
d.bailment
20) professionals are sued under securities law usually by:
a.clients.
b.brokers.
c.partners.
d.third parties.
21) which of the following corporation classes profits are taxed only at the shareholder
level?
a.an s corporation
b.for-profit corporation
c.not-for-profit corporation
d.publicly held corporation
22) _____ is a ground for lack of capacity only when it is so extreme that the person is
unable to understand the nature of the business at hand.
a.infancy
b.intoxication
c.misrepresentation
d.duress
23) quick corp. has $270,000 of outstanding accounts receivable. on march 10, 1988,
quick assigned a $30,000 account receivable due from pine, one of quicks customers, to
taft bank for value. on march 30, pine paid quick the $30,000. on april 5, taft notified
pine of the march 10 assignment from quick to taft. who is taft is entitled to collect the
$30,000 from?
a.either quick corp. or pine
b.quick corp. only
c.pine only
d.taft bank cannot claim any money because it notified quick corp. too late
24) ritz co. wished to acquire smart inc. in conjunction with its plan of acquisition, ritz
hired felix, a cpa, to audit the financial statements of smart. based on the audited
financial statements and felixs unqualified opinion, ritz acquired smart. within six
months, it was discovered that the inventory of smart had been overstated by $500,000.
ritz commenced an action against felix. ritz believes that felix failed to exercise the
knowledge, skill, and judgment commonly possessed by cpas in the locality, but is
unable to prove that felix either intentionally deceived it or showed a reckless disregard
for the truth. ritz is also unable to prove that felix had any knowledge that the inventory
was overstated. which of the following would provide ritz with a proper basis for
prevailing in a lawsuit against felix?
a.negligence and breach of contract
b.gross negligence and fraud
c.negligence and fraud
d.gross negligence and breach of contract
25) _____ agencies are required to prepare cost-benefit and least-cost analyses for all
major proposed rules and to submit this information to the office of management and
budget (omb) for review prior to seeking public comments.
a.independent
b.state
c.public interest
d.executive
26) which of the following helps a plaintiff to seize the property that belongs to the
defendant but is in the hands of a third party?
a.class action
b.garnishment
c.non obstante veredicto
d.settlement
27) which of the following is a criticism of strict tort liability that has been witnessed in
recent years?
a.increases in the frequency of punitive damage awards
b.greater costs imposed on defendants
c.impediment in the development of new products
d.greater imposition of strict liability
