Compensatory damages:
a. compensate consumers for their actual loss.
b. are imposed to punish the defendant for wrongdoing.
c. both a. and b.
d. none of the above.
A successor enterprise is not subject to the contract obligations of the former business
if:
a. one corporation is absorbed by another through merger.
b. a corporation merely purchases the assets of another business.
c. two or more corporations consolidate.
d. none of the above.
Rights guaranteed in the United States Constitution:
a. cannot be taken away by statutes or court decisions.
b. can be taken away by statutes.
c. can be taken away by court decisions.
d. can be taken away by local ordinances.
ERISA establishes an insurance plan to protect employees when the employer goes out
of business. To provide this protection, the statute created a:
a. pension surety system.
b. Pension Benefit Guaranty Corporation.
c. Pension Accrual Compensation System.
d. bond system of payment.
A __________ is a combination of co-ownership and individual ownership.
a. cooperative
b. residential lease
c. commercial lease
d. condominium
When goods are delivered to a common carrier for immediate shipment and while they
are in transit, who is normally liable for any loss or damage to the goods?
a. the shipper
b. the consignee
c. the carrier
d. the individual designated as responsible in the bill of lading
If a man names his wife as beneficiary of his life insurance and the two are thereafter
divorced, the insurance policy:
a. is canceled automatically.
b. is not affected.
c. is divided into two policies on the life of each for one-half the amount of the original
policy.
d. becomes the property of the former wife.
The Revised Model Business Corporation Act:
a. has eliminated the certificate of incorporation.
b. has made the process of incorporation more difficult.
c. states that corporate existence begins when the secretary of state issues a certificate
of incorporation.
d. has eliminated the need for articles of incorporation.
A hotelkeeper’s lien on the baggage of a guest is terminated when:
a. the guest checks out of the hotel.
b. the guest pays the hotel bill in full.
c. the hotelkeeper posts a notice to limit liability.
d. all of the above.
Prohibited transactions by a partner without the consent of other partners include:
a. a contract that makes it impossible for the firm to conduct its usual business.
b. submitting controversies of the firm to arbitration.
c. making a general assignment of firm property for the benefit of creditors
d. all of the above.
A __________ indorsement consists of the signature of the indorser and words
specifying the person to whom the indorser makes the instrument payable.
a. qualified
b. restrictive
c. special
d. blank
The sole issue addressed in the Fair Labor Standards Act is child labor.
A license may be terminated at the will of the licensor.
The types of provisions that make contracts unconscionable include clauses that award
excessive damages or the application of credit payments across purchases over time so
that the consumer is never able to pay off any goods.
In approximately 50% of all bankruptcies no unsecured creditors receive any payments.
A sole proprietorship must pay, at the corporate income tax rate, income taxes based on
the net earnings of the sole proprietorship.
What constitutes negligence is the same for an accountant who is a full-time employee
as it is for an independent outside auditor.
Regulations properly adopted by agencies are important, but they do not have the full
force of law as do statutes.