1) as per the model nonprofit corporation act (mnca), a nonprofit corporation need not
have members for its existence.
2) ahmed cohen received a check for $5,000 for a used car he sold. the check was
marked pay to the order of ahmed cohen. on back of this check he wrote, in his
handwriting, ahmed cohen. this has the legal effect of:
a.making this instrument non-negotiable.
b.making this instrument void.
c.making this instrument order paper.
d.making this instrument bearer paper.
3) bobby goes to buy a cd player from sammys electronics. in testing one model, bobby
notices that the scan function does not allow scanning once a selection from a cd is
playing. bobby purchases the model despite this without mentioning the defect to
sammy. bobby takes the cd player to his office where he uses it for three months before
deciding that he wants to return it. under these circumstances:
a.bobby has rejected the cd player.
b.bobby has accepted the cd player.
c.if bobby informs sammy of the defect now, he can reject the cd player.
d.a court will not consider bobby to have accepted the cd player because it is defective.
4) bennett is in the process of making an important decision for his firm. which of the
following actions strengthens the argument that bennett is a utilitarian?
a.bennett chooses the alternative that promises the highest net welfare to society as a
whole.
b.bennett implements the alternative that allocates societys benefits and burden most
fairly.
c.bennett considers whether everyone is getting what he deserves.
d.bennett determines whether anyones rights are negatively affected by an alternative.
5) which of the following is not one of the presentment warranties that the holder of an
unaccepted draft makes to the drawee?
a.that the draft has not been altered.
b.that the draft is not subject to a defense or a claim in recoupment.
c.that the holder has no knowledge that the signature of the drawer is unauthorized.
d.that the holder is entitled or authorized to obtain payment.
6) which of the following represents an agency coupled with an interest?
a.a contingent fee arrangement in which a plaintiffs attorney will receive 20% of any
recovery she achieves.
b.a professional sports contract in which a team owner agrees to pay a player insurance
premiums on a policy that compensates the player should he suffer a career-ending
injury.
c.a loan agreement in which the borrower pledges collateral to the lender and gives the
lender the power to take the collateral should the borrower default on the loan.
d.a contract in which a sales agent is hired for three years at a salary of $80,000 plus
5% of sales.
7) a(n) _____ is something that is essential for the minors continued existence and
general welfare that has not been provided by the minors parents or guardian.
a.disaffirmance
b.necessary
c.estoppel
d.capacity
8) bing engaged dill to perform personal services for $2,200 a month for a period of
four months. the contract was entered into orally on july 1, 1984, and performance was
to commence september 1, 1984. on august 10, dill anticipatorily repudiated the
contract. as a result, bing:
a.may not assign his rights to damages under the contract to a third party.
b.can obtain specific performance.
c.may not enforce the contract against dill since the contract is oral.
d.can immediately sue for a breach of contract.
9) which of the following is an important state legislative power that works
concurrently with many congressional powers?
a.enumerated power
b.police power
c.independent checks
d.taxing power
10) carl writes a check made payable to patricia sullivan or william hayes. who may
negotiate the check?
a.neither patricia nor william: the check is unenforceable.
b.patricia as she is the first named party to whom the check is made payable.
c.william as he is the last named party to whom the check is made payable.
d.either patricia or william may negotiate the check.