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1) baronial company plans to make a registered offering of its preferred shares pursuant
to the securities act of 1933. after filing a registration statement with the securities and
exchange commission but prior to its effective date, which of the following will violate
section 5 of the securities act of 1933?
a.sending letters to 50 prospective investors noting that projected earnings are up 15
percent.
b.an oral offer at a sales meeting attended by 50 prospective investors.
c.an oral offer to sell the shares made by telephone to 50 prospective investors.
d.in-person oral offers to sell the shares to 50 prospective investors.
2) s agrees to specially manufacture a machine for b. after s finishes the job, b breaches
the contract. knowing that there is no market for the machine, s does not try to resell it.
instead, s sues b for the price of the machine. which of the following is true? assume
that there truly was no market for the machine.
a.s can recover only the input price invested in making the machine.
b.no recovery, because s was obligated to make an effort to resell the partially
completed machine for scrap.
c.no recovery, because here s was obligated to sue b for his lost profit on the deal.
d.s can recover the price of the machine from b.
x
3) if no agreement is made on the place where the goods will be delivered, then the
goods are to be delivered at:
a.a neutral location.
b.the buyers place of business.
c.the buyers warehouse.
d.the sellers place of business.
4) shelly, age 15, sells a car to fiona, age 25. fiona in turn sells the car to raphael. under
section 2-403 of the uniform commercial code, if shelly chooses to disaffirm the
contract with fiona:
a.shelly can get the car back from raphael.
b.raphael will have to sell it back to shelly.
c.shelly can do so since she is a minor.
d.shelly needs to file a breach of contract against both fiona and raphael.
5) an essential element of the tort is that the alleged defamatory statement must be of
and concerning the plaintiff. why?
a.it is extremely difficult to prove.
b.it places a burden on the defendant.
c.this aims to protect reputation.
d.it concerns public figures.
6) which of the following is most likely to constitute ratification of a contract made by a
minor?
a.not performing ones duties under the contract after reaching the age of majority.
b.nonperformance of the other party to the contract after the age of majority.
c.failing to disaffirm a completely executory contract within one month after the age of
majority.
d.making an oral statement that i will ratify the contract.
7) the _____ exercise(s) the greatest control over agency behavior.
a.president
b.states
c.congress
d.courts
8) respondents who sign consent orders:
a.agree to discontinue the business practice that triggered the agency action.
b.admit to their wrongdoing.
c.retain all rights to judicial review.
d.need not accept sanctions imposed by the agency.
9) in which of the following circumstances would the bailee be expected to exercise
ordinary care?
a.harold promises to look after kates puppy in exchange for her cleaning his car.
b.dave looks after staceys dog while she is on vacation with her friends.
c.nigel borrows a rare book from his professor to write a class report.
d.melissa helps old mrs. henderson clean her garage on sunday afternoon.
10) west is seeking to collect on a property insurance policy covering certain described
property which was destroyed. the insurer has denied recovery based upon wests
alleged lack of an insurable interest in the property. in which of the situations described
below will the insurance company prevail?
a.west is not the owner of the insured property but a long-term lessee.
b.the insured property belongs to someone else, but west holds the mortgage on it.
c.the insured property does not belong to west, but instead to a corporation which he
controls.
d.the property has been willed to wests father for life, and upon his fathers death, to
west as the remainderman.
11) borg is the vice-president of purchasing for crater corp. he has authority to enter
into purchase contracts on behalf of crater provided that the price under a contract does
not exceed $2 million. dent, who is the president of crater, is required to approve any
contract that exceeds $2 million. borg entered into a $2.5 million purchase contract with
shady corp. without dents approval. shady was unaware that borg exceeded his
authority. neither party substantially changed its position in reliance on the contract.
what is the most likely result of this transaction?
a.crater will be bound because of borgs apparent authority.
b.crater will not be bound because borg exceeded his authority.
c.crater will only be bound up to $2 million, the amount of borgs authority.
d.crater will be bound because of borgs actual authority.
12) which of the following is true of check collection?
a.checks and other drafts collected through the banking system usually have two
partiesthe drawer and the drawee bank.
b.if the payee deposits the check at a bank other than the drawee bank, the latter will
take a series of steps necessary to reflect the deposit as a credit to the payees account.
c.if the payee deposits the check at the same bank as the drawee bank, the depositary
bank will make the ledger entry showing the deposit as a credit to the payees account.
d.if the drawee and depositary banks are in the same town or county, the depositary
bank will indorse the check and deliver it to the drawee bank for payment.
13) what legal effect does death or insanity of the offeror have on the offer?
a.it terminates the offer automatically.
b.it terminates only the last contract that has been formed with that offeror.
c.it has no legal effect unless and until the offeree is notified of the death of the offeror.
d.it makes the offer voidable.
14) bob was a partner in f & b co., a partnership. bob dissociated himself from it on
june 1, 2000. on december 1, 2000, f & b co. entered into a contract with carey. under
which of the following scenarios may bob be held liable to carey, even though he is no
longer a partner?
a.bob files a statement of dissociation with the secretary of state.
b.bob tells carey on november 1, 2000 that he is no longer a partner.
c.the contract was entered into on the companys premises and bobs name is still listed
as a partner on the office door.
d.bob files a statement of dissociation with the court.
15) which of the following contracts is void?
a.a contract made by an unemancipated minor.
b.a contract made by a person who has been adjudicated insane and institutionalized.
c.a contract made by a person under the influence of mind-altering drugs.
d.a contract made by a minor who receives no support from a parent or guardian.
16) for which of the following sale contracts does title and risk of loss remain with the
seller until the buyer accepts the goods?
a.a sale on approval
b.a sale or return
c.a bulk sale
d.a sale fas [point of origin]
17) which of the following is not a defense specified in revised article 3?
a.by way of damages
b.real defenses
c.claims to an instrument
d.claims in recoupment
