A principal who signs a contract with a third-party is obligated to perform that contract.
Attachment is a situation in which the value of a creditor’s collateral is insufficient to
satisfy the debt for which it is collated.
Workers cannot both receive workers’ compensation and sue their employers in court
for damages.
A misrepresentation of law is actionable as fraud as the innocent party cannot know
every legal detail that applies to the situation.
In the absence of a partnership agreement, profits and losses from a limited partnership
are shared on the basis of the value of each partner’s capital contribution.
Which of the following is true of an assignment?
A) It is considered as a negotiation under Article 3 of the Uniform Commercial Code
(UCC).
B) The transferee is known as a holder in due course.
C) Defenses to the enforcement of the contract against the assignor can be raised
against the assignee.
D) Only negotiable instruments can become assignments.
A(n) ________ is a distribution of an estate in which each grandchild and
great-grandchild of the deceased inherits equally with the children of the deceased.
A) abatement
B) per stirpes distribution
C) per capita distribution
D) ademption
Which of the following can end the existence of a corporation?
A) voluntary termination by shareholder
B) death of a shareholder
C) bankruptcy of a shareholder
D) voluntary termination by the corporation’s creditors
What is a vertical merger?
A) a merger between firms in totally unrelated businesses
B) a merger that integrates the operations of a supplier and a customer
C) a merger between two companies in similar fields whose sales do not overlap
D) a merger between two or more companies that compete in the same business and
geographical market
The ________ is a federal law that mandates the president of the United States to
suspend, prohibit, or dismantle the acquisition of U.S. businesses by foreign investors if
there is credible evidence that the foreign investor might take action that threatens to
impair the “national security.”
A) Williams Act
B) Securities Exchange Act of 1934
C) Investment Company Act of 1940
D) Exon-Florio Foreign Investment Provision
The owner of the policy in a life insurance without exception is the ________.
A) insurance company that issues the policy
B) person who pays the premiums
C) next of kin of the insured person
D) person who receives the insurance proceeds
Frank Hannigan sees a grand piano that his musician friend Scott Kristoff had been
looking for in an antique store. Frank enters into a contract to purchase the grand piano
from the antique seller and signs the contract, “Frank Hannigan, agent for Scott
Kristoff.” But because Frank is not Scott’s agent, Scott is not bound by the contract. If
Scott decides to accept the contract, what kind of agency would be created?
A) express agency
B) implied agency
C) agency by ratification
D) power of attorney
Which of the following has to be proved by a claimant pursuing compensation for an
injury under workers’ compensation?
A) The claimant was harmed intentionally by the employer.
B) The claimant was harmed when he or she was employed by the employer.
C) The claimant was harmed by an employment-related injury.
D) The claimant was harmed unintentionally by the employer.
The transfer of a negotiable instrument by a person other than the issuer to a person
who thereby becomes a holder is referred to as a(n) ________.
A) negotiation
B) assignment
C) indorsement
D) insurance
James hires Franco for a painting job. Their contract explicitly states that Franco’s
employment can be terminated if he is employed by another party during the contract
period. Two weeks into the job, James finds out that Franco is also working for a
painting agency two blocks away and terminates his employment. This is an instance of
________.
A) condition precedent
B) condition subsequent
C) concurrent condition
D) implied condition
Poole Contractors makes a contract with Delta Resources to pay $50,000 for the supply
of 500 truckloads of sand within a week. Delta Resources delivers the sand two days
after the contract was made, and Poole Contractors pays it $50,000 promised in the
contract. This is an instance of ________.
A) substantial performance
B) material breach
C) minor breach
D) strict performance
Derrick has 2,000 shares of Unistone Corporation, which is planning to vote for two
new directors. Through a special voting provision in the corporation’s articles of
incorporation, Derrick was able to vote for both his preferred candidates with 2,000
shares, which gave him a virtual voting count of 4,000 shares. What voting rule in the
articles of incorporation allows Derrick to achieve this?
A) supramajority voting
B) noncumulative voting
C) cumulative voting
D) preemptive voting
The ________ is a duty of the insurer to protect the insured against lawsuits or legal
proceedings that involve a claim within the coverage of the insurance policy.
A) duty of strict liability
B) duty to pay
C) duty of reasonable care
D) duty to defend
What was the key reason for the creation of law courts during the early development of
the English common law?
A) to administer law in a uniform manner
B) to help merchants form a standardized set of commercial laws
C) to increase the power of the king in law-making
D) to facilitate legal disputes for the wealthy and influential