1) which of the following are frequently used to cure technical defects in the chain of
title to property?
a.insurable deeds
b.quitclaim deeds
c.general warranty deeds
d.special warranty deeds
2) when a court says that an agreement is illegal, it most likely means that the
agreement:
a.has not mentioned a time period for which the agreement is valid.
b.does not identify the parties involved in the agreement.
c.is related to buying and selling of trade secrets.
d.violates public policy.
3) which of the following is true of a corporation?
a.a corporation is not a tax-paying entity for federal income tax purposes.
b.a corporation does not have a life separate from its owners and its managers.
c.a corporation has the ability to attract capital, more than the limited partnership.
d.a corporation is owned by partners who have founded the business and have the right
to manage it.
4) which of the following is not an essential element in the formation of an express
trust?
a.conveyance of specific property
b.proper purpose
c.legal capacity
d.appointment of trustee
5) agreements made by unmarried people who are living together:
a.are unenforceable regardless of their nature.
b.are enforceable if they do not involve the division of property.
c.are unenforceable if one of the parties is married to someone else.
d.are considered to be against public policy.
most courts hold that agreements between unmarried couples are not against public
policy unless they are explicitly based on illegal sexual relations as the consideration
for the contract or unless one or more of the parties is married to someone else.
6) in which of the following contexts is a professional most likely to experience a
nonclient action?
a.an accountant who prepares and audits financial statements of companies.
b.a consultant who gives advice to companies for improving performance.
c.a securities broker who provides investment advice to retail investors.
d.an attorney who advises companies on corporation and business laws.
7) _____ is a financial management tool offered by banks and by third-party,
internet-based companies.
a.account management
b.check management
c.account aggregation
d.check scraping
8) which damages are especially awarded by the court to punish the defendant?
a.punitive
b.compensatory
c.monetary
d.liquidated
9) an exception to the general rule is that if goods are entrusted to a merchant who deals
in goods of that kind, the merchant has:
a.the power to keep rights to the goods, even if the goods are sold to a buyer.
b.the power to transfer all rights of the entruster to a buyer in the ordinary course of
business.
c.no power to sell the goods without the physical presence of the entruster.
d.the power to deprive the entruster from any benefit so caused by the transaction.
10) in which of the following situations will a business incorporated in ohio be required
to qualify to do business in kentucky?
a.the business maintains a stock of goods in kentucky from which it sells to customers
in kentucky.
b.the business owns a building in kentucky, which it holds for investment.
c.the business sends a sales agent to kentucky to solicit orders from customers in
kentucky, while orders are brought back to and accepted in ohio.
d.the business sells its goods to customers in kentucky through independent distributors
located in kentucky.
11) which of the following is the first step in the contract formation process?
a.signing the agreement
b.an offer in definite terms
c.selection of partners
d.drafting the agreement
12) an argumentum ad populum used in an argument is a wrong conclusion:
a.that does not follow from the facts or premises set out.
b.based on a false analogy.
c.that relies on the idea that a popular belief is true.
d.based on an attack against the speaker, not his/her reasoning.
13) gertrude has not paid rent for five months and mary, her landlord, wants to evict her.
while gertrude is at work, mary enters the apartment and changes the lock. mary moves
all of gertrudes belongings into a storage locker. when gertrude comes home from work,
mary gives the key to the storage locker. which of the following is an accurate
statement?
a.mary was not entitled to act as she did because gertrude was just five months behind
in her rent.
b.mary was entitled to act as she did because she protected gertrudes belongings by
placing them in a storage locker.
c.mary was entitled to act as she did because a landlord has a right to self help in a
situation like this.
d.mary was not entitled to act since she performed an illegal eviction.
14) the benson bearing company sells textron, inc. a quantity of baseball bats that were
stored in an independent warehouse at the time of the sale. the contract says that textron
is to pick up the bats at the warehouse. the risk of loss passes to textron:
a.at the time of the contract.
b.at the time it receives a negotiable warehouse receipt for the bats.
c.at the time it pays for the bats.
d.at the time it picks up the bats.