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The right of dissent results in payment of:
a. a damage award to the shareholder.
b. a price in exchange for shares.
c. treble damages for violation of the charter.
d. a bonus to dissenting shareholders.
An offer that is made by a merchant under the UCC and is irrevocable even though no
consideration is given to keep it open is known as a(n):
a. option.
b. firm offer.
c. requirements contract.
d. output contract.
The main categories of the law are (a) substantive and procedural, (b) public and
private, and (c) civil and criminal.
Brad wrote a check to Clara for $1,000 on his account at First Bank. He then took it to
his bank for certification. The bank wrote "certified" on the face of the check. Brad then
gave the check to Clara. When Clara took the check to First Bank, they refused to pay,
claiming that there was not enough money in Brad's account to cover the check. Which
of the following is correct?
a. First Bank is primarily liable on the check, because it has already accepted it.
b. Clara has no recourse under the circumstances.
c. Brad is secondarily liable on the check, because he is the drawer.
d. All of these are correct.
The U.S. Constitution provides that Congress has the power to regulate commerce with
other nations and among the states. The Commerce Clause has what effect(s)?
a. It provides a broad source of power for the federal government to regulate the
economy.
b. It restricts state regulations that obstruct or unduly burden interstate commerce.
c. Both (a) and (b).
d. Neither (a) nor (b).
The legislature may exercise control of administrative agencies in various ways. These
are:
a. through its budgetary power.
b. through the power to appoint and remove chief administrators.
c. by amending an enabling statute to increase, modify, or decrease an agency's
authority.
d. Both (a) and (c).
The FTC:
a. and an advertiser can enter into a consent decree to force the advertiser to both stop
the running of the advertisement and to publicly admit its advertisement was deceptive.
b. can order a false or misleading advertisement to be stopped through a "cease and
desist order," but cannot require the violator to correct its advertising.
c. can fine an advertiser for running a misleading advertisement if it fails to comply
with its order to "cease and desist."
d. All of these are correct.
Which of the following is/are considered in determining the application of the
reasonable person standard?
a. Physical disability.
b. Superior skill or knowledge.
c. Emergency circumstances.
d. All of these are correct.
All of the following are exempt from registration under the 1933 Act EXCEPT:
a. government bonds.
b. securities issued by medical facilities.
c. drafts issued for working capital.
d. state-regulated insurance company annuities.
An employer directs his vice-president of marketing to fix prices with their company's
competitors. If the employee does so:
a. only the employee is liable.
b. both the employee and the employer are liable.
c. only the employer is liable.
d. neither the employee nor the employer is liable.
Which of the following is correct regarding the Clayton Act?
a. It deals with price discrimination, tying contracts, and mergers.
b. It added criminal sanctions to the Sherman Act.
c. It repealed the Robinson-Patman Act.
d. It included labor organizations in its coverage.
In an attempt to limit the power of large purchasers, Congress amended Section 2 of the
Clayton Act in 1936 by adopting the:
a. Sherman Act.
b. Federal Trade Commission Act.
c. Robinson-Patman Act.
d. All of the above.
Which of the following is both a prejudgment and a postjudgment remedy for a
creditor?
a. Writ of execution.
b. Garnishment.
c. Attachment.
d. Supplementary proceeding.
A bank robbery has occurred, and the banker's association has offered a $1,000 reward
for information leading to the arrest and conviction of the robber. Several people are
claiming to be entitled to the money. Which of them is eligible?
a. The employees of the bank.
b. An on-duty sheriff's deputy in the county where the arrest occurred.
c. An off-duty deputy sheriff from a county other than the one where the arrest
occurred.
d. None of these are correct.
Trade symbols would include which of the following?
a. Service mark.
b. Certification mark.
c. Collective mark.
d. All of the above.
Which of the following describes the imposing of partnership duties and liabilities upon
a person who is not a partner in an existing partnership by reason of his consenting to
representation that he is a partner?
a. Partnership by estoppel.
b. Delectus personae.
c. A fiduciary duty.
d. Torts of partnership.
In order to lease substantially all of a corporation's assets not in the usual course of
business:
a. shareholder approval is necessary.
b. shareholder approval is required if so determined by a subjective test under the 1999
amendments to the Revised Act.
c. approval of the board and the majority of the corporation's outstanding shares is
required; dissenting shareholders do not usually have an appraisal remedy.
d. shareholder approval is unnecessary, unlike for the sale of assets.
If Arthur were as yet childless, which of the following present grants would be
considered a contingent remainder?
a. "To Arthur and his heirs forever and ever."
b. "To Arthur for life and then to his first-born son, but if he has no male children, then
to the Catholic Church."
c. "To Arthur for life, then to grantor.'
d. "To Arthur for 100 years and then to the Catholic Church."
ABC, Inc. calls the Widget Corporation of America to order 400 widgets at $2 a widget.
Widget accepts the oral order and then sends out an order confirmation form, with the
pre-printed name Widget Corporation of America on the top of the form. The form
states that an order has been received for "300" widgets and that it will be filled
promptly.
a. The confirmation fails to meet the UCC writing requirement, because it isn't signed.
b. ABC can enforce the contract for 300 widgets, but not for 400 widgets.
c. If ABC signs and returns the form, it will be able to sue for the extra 100 widgets
later.
d. The contract is enforceable for 400 widgets, because it has been partially performed.
If a manufacturer of a consumer product tells a buyer that he is selling it with no
warranties, there is a violation of the Magnuson-Moss Act.
Albert has a contract to buy 100 tables from Bartholomew at a price of $50 a table. Five
days before Bartholomew is to deliver the tables, he calls Albert to say that he is sorry
but $50 won't cover his costs; he will need at least $75 a table. Albert agrees, because
he needs the tables for his special sale. The modified contract is enforceable even
though Albert isn't getting any new consideration, as long as Bartholomew is acting in
good faith and the agreement to the new price is put in writing.
The Pregnancy Discrimination Act extended the benefits of Title VII to pregnant
women.
An illusory promise has the form of a promise but imposes no real obligation.
A person is a direct infringer if he knowingly sells or supplies a part or component of a
patented invention.
Peterson, an American exporter, sells lumber to a Japanese importer, using a
documentary letter of credit. Typically in this situation, the correspondent bank will be
in Japan.
Goods bearing a counterfeit mark may be destroyed without compensation to the owner
of the goods.
Claude is a shareholder in the Tel Ko Corporation. He learns of insider trading by one
of the directors and wants to sue the corporation on behalf of the corporation and its
shareholders. He cannot sue the corporation to enforce a right belonging to the
corporation.
