There is no necessity to distinguish language which constitutes an offer from that which
merely solicits or invites offers.
a. True
b. False
If a shareholder dissents to a proposed business combination, he is entitled to receive
the fair value of his shares. In order to do so, the shareholder must do which of the
following?
a. Attack the validity of the corporate action that gives rise to his right to obtain
payment or to have the action rescinded
b. Obtain an appraisal of the value of the shares
c. Oppose the proposed corporate action verbally at a special meeting of the
stockholders
d. Make a written demand upon the corporation within the set time period
Amber, who is an agent for Peter, breaches her fiduciary duty to Peter. Amber:
a. is liable to Peter for breach of contract.
b. is liable to Peter in tort for any losses caused by the breach.
c. must make restitution for any profits or property received in breach of this duty.
d. All of these are correct.
A shareholder may bring a derivative suit on behalf of the corporation and any recovery
usually goes to the corporation’s treasury, or a shareholder may bring a direct suit to
enforce a claim he has against the corporation based on his ownership of shares and any
recovery goes to the shareholder plaintiff.
a. True
b. False
In which of the following types of cases can issues of accountant-client confidentiality
arise?
a. Civil litigation
b. Criminal cases
c. Tax disputes
d. All of these are situations where it can arise.
An example of a “certification mark” would be:
a. Holiday Inns.
b. Xerox.
c. Real Cheese.
d. Nabisco.
The legislative branch’s primary check on both the judicial and executive branches is
the power to:
a. veto executive or judicial decisions.
b. approve appointments to the courts and agencies.
c. appoint judges and cabinet officials.
d. pass laws that establish term limits for the president and judges.
Which of the following are basic objectives of the 1933 Securities Act?
a. To provide investors with material information concerning securities offered for sale
to the public.
b. To prohibit misrepresentation, deceit, and other fraudulent acts and unfair practices in
the sale of securities generally, whether or not they are required to be registered.
c. Both of these.
d. None of these.
If a landlord furnishes heat in the summer in order to force his tenant to move and the
tenant does in fact move, a court of law will probably decide that:
a. waste has occurred.
b. there has been a wrongful abandonment of the premises.
c. constructive eviction has taken place.
d. vacating of the premises constituted an assignment.
The RMBCA provides what period of time within which an otherwise barred claim may
be enforced for a claimant who did not receive notice of dissolution and liquidation?
a. Six months
b. One year
c. Three years
d. Five years
The FTC policy statement addressing the meaning of unfairness provides that an injury
is unfair if it is:
a. likely to mislead the consumer.
b. substantial and not outweighed by any benefits to consumers or competition.
c. one that the seller could reasonably have avoided.
d. All of these.
The European Community was formed through a merger between the Common Market,
the European Coal and
Steel Community, and the European Atomic Energy Community.
a. True
b. False
A cashier’s check is drawn by a bank upon itself to the order of a named payee.
a. True
b. False
Ronald says in the presence of three other people that he is giving his automobile to his
nephew, and then hands the keys to the car to the nephew. Delivery of the auto has
taken place.
a. True
b. False
A preauthorized fund transfer may be made from a consumer’s account if the
authorization is done in advance and in writing.
a. True
b. False
Avins Corporation wishes to acquire all of the shares of Solomon Corporation.
Approval would be required of:
a. Avins’ board of directors.
b. Solomon’s board of directors.
c. Avins’ shareholders.
d. Solomon’s shareholders.
An interest in the future that arises in a third party is called a(n):
a. reversion.
b. remainder.
c. assignment.
d. fee simple absolute.
Criticism of administrative agencies includes that they:
a. lack the knowledge or time necessary to provide continuous and flexible solutions to
evolving regulatory problems.
b. lack the broad powers necessary to effectively deal with regulatory problems.
c. are in effect miniature independent governments which have too much power
concentration since the same bodies establish rules and then act as prosecutors and
judges in determining whether those rules have been violated.
d. All of these are valid criticisms.
The jury in a jury trial decides issues of fact.
a. True
b. False
Mark, who is 16 years old, appoints Joe, age 21, as his agent to purchase a videotape
recorder from VideoWorld.
The transaction between Joe and VideoWorld is:
a. void because Mark is a minor.
b. voidable by VideoWorld because Mark is a minor.
c. voidable by Mark because he is a minor.
d. not voidable because Joe is not a minor.
Ownership interests in manager-operated LLCs are not considered to be securities.
a. True
b. False
“I promise to pay you $100 if you will promise to fix my car next month.” This is an
offer for a unilateral contract.
a. True
b. False
Which of the following is an exception to the suretyship provision requirement under
the statute of frauds?
a. A collateral promise made to the creditor
b. A promise, the leading object of which is to obtain an economic benefit for oneself
c. A collateral promise where there are three parties and two contracts involved
d. A promise by an executor to pay the debts of the decedent from the executor’s own
funds
Bodily contact that is harmful or offensive can give rise to the tort of:
a. assault.
b. battery.
c. defamation.
d. appropriation.
The purpose of reliance damages is to place the injured party in a position as good as he
would have held had there been no contract.
a. True
b. False
Under the RUPA, if a partner is dissociated from a partnership without resulting in
dissolution, the business may
choose whether to purchase the dissociated partner’s interest in the partnership.
a. True
b. False
Administrative hearings are held before a jury, just as are court hearings.
a. True
b. False
The nonbinding, informal process in which a third party is selected by the disputing
parties to attempt to help them reach a mutually acceptable agreement is known as:
a. conciliation.
b. negotiation.
c. consensual arbitration.
d. compulsory arbitration.
An interest in property limited in duration to the life or lives of one or more persons is
known as a:
a. future interest.
b. fee simple absolute.
c. fee simple determinable.
d. life estate.
The estate of a debtor includes wages earned aftercommencement of a Chapter 7
liquidation proceeding.
a. True
b. False