Voidable preferences include all of the following EXCEPT:
a. a transfer of property of the debtor to or for the benefit of a creditor.
b. payment of taxes owed to a governmental unit.
c. a transfer of property while the debtor was insolvent.
d. a transfer that enables a creditor to receive more than he would have received under
Chapter 7.
In relation to fraud, scienter is a legal term which means:
a. that a buyer has justifiably relied upon the seller’s representation.
b. that the seller had knowledge that his statements are false and had the intention to
deceive.
c. sales puffery.
d. All of the above.
Two or more sureties bound for the same debt of a principal debtor are known as:
a. absolute sureties.
b. cosureties.
c. conditional guarantors of collection.
d. co-creditors.
If a statute is found to be applicable to a fact situation, then the courts will hold that an
unexcused violation of that statute which causes an injury to another is:
a. strict liability.
b. res ipsa loquitur.
c. negligence per se.
d. assumption of the risk.
Because defamation involves a communication, the protection of the __________
Amendment applies.
a. Fourth
b. Fifth
c. First
d. Fourteenth
A “merchant” is defined as a person who:
a. is a dealer in a particular type of goods.
b. by his occupation holds himself out as having knowledge or skills peculiar to certain
goods or practices.
c. employs an agent or broker whom he holds out as having such knowledge or skill.
d. All of the above.
Which of the following is true with respect to the distribution of assets following
dissolution of a limited partnership?
a. Partners are paid before ex-partners for unpaid distributions.
b. Limited partners who are creditors are paid at the same priority as third-party
creditors of the partnership.
c. The amount limited partners are paid on dissolution has no relation to the proportion
in which they share in distribution of profits.
d. Capital contributions are paid before unpaid distributions.
E-Sign specifically excludes:
a. wills, codicils, and testamentary trusts.
b. divorces.
c. UCC transactions other than sales and leases of goods.
d. All of the above.
Mom and Carolyn own a farm as joint tenants. When Mom dies, her share will pass to:
a. Carolyn.
b. her heirs.
c. her beneficiaries.
d. Carolyn’s heirs.
An example of waste as used in real property law would include:
a. the failure to repair a building.
b. neglect of an adequate conservation policy.
c. not collecting rents as prescribed by contract.
d. Both (a) and (b).
Daniel is a general partner in a real estate investment firm. Hank and Barry are limited
partners. Daniel, without the consent or ratification of Hank and Barry, can:
a. admit another limited partner.
b. act as an agent of the partnership.
c. rename the partnership using Hank’s last name.
d. not have almost exclusive managerial control of the business.
Identify and give the basic characteristics of each of the following specialized types of
corporations.
a. Professional
b. Public corporations
c. Non-profit corporations
Leslie purchased 100 flower pots from a local merchant. Warranties which are not
included in her sales contract, but exist by “operation of law,” are the:
a. express warranties.
b. exclusive warranties.
c. quasi warranties.
d. implied warranties.
The __________ provides that the federal government shall provide the accused with a
speedy and public trial by an impartial jury.
a. Fourth Amendment
b. Fifth Amendment
c. Sixth Amendment
d. Eighth Amendment
The party to whom a contractual duty of performance is owed is known as the:
a. obligee.
b. obligor.
c. assignee.
d. assignor.
Which of the following is true about the regulation of pesticide use by the EPA?
a. A pesticide may be legally registered only if it will perform its intended function
without posing unreasonable risk to humans or the environment.
b. The EPA may balance the economic and social costs of use of a pesticide in deciding
whether to register it.
c. Once a pesticide is registered, the registration cannot be canceled for five years.
d. Both (a) and (b).
A contract has an open price term if the agreement:
a. says nothing as to price.
b. provides that the parties shall agree later as to the price and they fail to so agree.
c. fixes the price in terms of some agreed market or other standard, as set by a third
person or agency, and the price is not so set.
d. All of the above.
In the Bigelow-Sanford, Inc. v. Gunny Corp. case, the court found:
a. the buyer did not purchase substitute goods in good faith and without unreasonable
delay.
b. the Code permits a buyer to cover by buying substitute goods if the buyer acts in
good faith and without unreasonable delay.
c. since the buyer did not specifically allocate the spot market replacements to the
individual sellers’ accounts, the cost of cover could not be determined in this case.
d. the buyer was required to obtain cover and its failure to do so bars other Code
remedies.
In the Moore v. Kitsmiller case, the Texas Court of Appeals held that:
a. the burden of proof of the affirmative defense of contributory negligence was on the
plaintiff to prove beyond a reasonable doubt.
b. it was unreasonable for the jury to infer that Moore was contributorily negligent.
c. the affirmative defense of contributory negligence requires proof both that the
plaintiff was negligent and that this negligence proximately caused his injuries.
d. foreseeability does not require that a person of ordinary intelligence should have
anticipated the danger created by a negligent act or omission.
What is the effect of a qualified indorsement and a restrictive indorsement?
Massey Fabrications sells some equipment to Keiser Co., warranting its suitability for
Keiser’s purpose. The equipment, which is not suitable for Keiser’s purpose, causes
$5,000 in damage to Keiser’s property and $12,000 in personal injuries. Keiser can
recover $17,000 in consequential damages.
An accountant-client privilege is statutorily recognized in all states, permitting the
accountant to refuse to disclose confidential information gleaned from his client.
The 1934 Act rules governing proxy solicitations require a proxy statement describing
the material items to be voted upon.
Businesses wishing to safeguard their technology while doing business in the
international sector would not want to consider the use of wholly owned subsidiaries.