Michael, a citizen of Ireland, and Nina, a citizen of the United States, enter into a
contract. When Nina breaches the contract, Michael obtains an award of damages in an
Irish court. He asks a U.S. court to enforce the award. The U.S. court defers to and
enforces the Irish court’s decree. This is
a. a travesty of justice.
b. the act of state doctrine.
c. the doctrine of sovereign immunity.
d. the principle of comity.
Answer:
Riverwalk Restaurants Corporation is a noninvestment company that wants to isÂsue
stock of $3 million in a twelve-month period. Riverwalk, with less than $20 milÂlion in
annual sales, qualifies as a small business issuer. Before Riverwalk sells the stock, it
must provide investors with
a. an offering circular.
b. a notice of the issue.
c. a red herring prospectus.
d. a tombstone ad.
Answer:
Misha and Nguyen are shareholders of Outsourcing Solutions, Inc. Misha’s written
authorization to Nguyen to vote her shares at a shareholders’ meeting is
a. a violation of the duty of loyalty.
b. a preemptive right.
c. a proxy.
d. a quorum.
Answer:
Renee is a director of Sharp Focus Lens Corporation. With respect to Sharp Focus,
Renee can access the corporation’s books and records. Renee has this access under
a. the director’s right to participation.
b. the director’s right of inspection.
c. the director’s right to indemnification.
d. the articles of incorporation or corporate bylaws.
Answer:
Sustainable Products Corporation regularly expresses opinions on political issues.
Under the First Amendment, corporate political speech is given
a. discouraged.
b. forbidden.
c. protected.
d. required.
Answer:
Kari is the sole proprietor of Living Earth Garden Shop. As a sole proprietor, on the
business’s profits, Kari pays
a. no income taxes.
b. only personal income taxes.
c. only business income taxes.
d. both personal and business income taxes.
Answer:
Rafi, a van driver for Speedy Delivery Company, causes a multi-vehicle accident on a
city street. Rafi and Speedy are liable to
a. all those who were injured.
b. only those who were uninsured.
c. only those whose injuries could have been reasonably foreseen.
d. only those whose vehicles were closest to Rafi’s van.
Answer:
Dollars & Sense, Inc., is incorporated in the state of New Jersey and is doing busiÂness
in the state of New York. In New York, Dollars & Sense is properly referred to as
a. a domestic corporation.
b. a foreign corporation.
c. an alien corporation.
d. a public corporation.
Answer:
Bob’s Big Burgers n’ Shakes Restaurant brings a suit, seeking a remedy at law. A
remedy at law is
a. monetary damages.
b. a decree of specific performance.
c. a judicial proceeding for the resolution of a dispute.
d. an injunction.
Answer:
To identify Omar and verify his eligibility to work in the United States, Poultry
Processing Corporation relies on a school identification card. The card later proves to
be invalid. Poultry Processing may
a. be sanctioned for violating antidiscrimination law.
b. be sanctioned for violating immigration law.
c. not be sanctioned for violating any law.
d. be sanctioned for violating principal-agent law.
Answer:
Arnold buys a backhoe from Big Dig Equipment Inc. Arnold is unaware that Credit
Collection Company holds a lien against the backhoe when he buys it. If Credit
Collection repossesses the backhoe, Arnold can
a. recover from Big Dig for breach of warranty.
b. do nothing.
c. file criminal charges against Big Dig and Credit Collection.
d. recover damages from Credit Collection for breach of warranty.
Answer:
Persons who favor the creation of a federal biotech agency to reguÂlate the production
of genetically modified agricultural and animal products should conÂcenÂtrate their
lobbying efÂforts on
a. Congress.
b. federal administrative agencies that oversee such products.
c. the United States Supreme Court.
d. the president of the United States.
Answer:
InfoFree Inc., makes and sells devices and services for the circumvention of encryption
software and other technological antipiracy protection. Under the Digital Millennium
Copyright Act, this is
a. a violation of copyright law.
b. prohibited but not a violation of copyright law.
c. a ‘fair use’ exception to the provisions of the act.
d. permitted for reconsideration every three years.
Answer:
Arnold loses his suit against Buffy in a Colorado state trial court. Arnold apÂpeals to a
state intermediate court of appeals and loses again. Arnold would appeal next to
a. a U.S. district court.
b. the Colorado Supreme Court.
c. the United States Supreme Court.
d. the U.S. Court of Appeals for the Ninth Circuit.
Answer:
Build-It Construction Company contracts with Classic Beverage Corporation to build
Classic Beverage’s corporate headquarters. Build-It Construction contracts with
Dependable Tools & Materials Inc. for construction supplies but refuses to pick up the
order. Meanwhile, Classic Beverage hires Elmo, a certified public accountant, to work
in its cost-accounting division as an employee, with no authority to hire or supervise
others. Elmo asks Fayette, an outside experienced accountant, to advise him on certain
accounting procedures but fails to pay Fayette for the service. Classic Beverage also
contracts with Gloria, a salesperson, to solicit orders for its products in a designated
territory. Gloria obtains an order from Highpoint Concessions, Inc., which is assured
the order will be filled soon. But Gloria does not follow through with the paperwork
and fails to submit the order to Classic Beverage. Highpoint Concessions suffers a loss.
Dependable Tools, Fayette, and Highpoint Concessions claim Classic Beverage is liable
under agency law. Discuss fully whether an agency relationship was created by Classic
Beverage with Build-It Construction, Elmo, or Gloria.
Answer:
A limited liability company is a citizen of every state of which their members are
citizens.
Answer:
Community property it is created when a real property owner or lessor agrees to convey
the right to possess and use the property to a lessee (tenant) for a certain period of time.
Answer:
An executive officer of a corporation normally can conduct ordinary business
transactions without obtaining written authority from the corporation.
Answer:
The checks and balances in the U.S. Constitution prevent any one branch of
government from exercising too much power.
Answer:
The key consideration in determining whether an employment manual creates an
implied contract is the employee’s reasonable expectations.
Answer:
A surety is entitled to receive from the debtor the actual amount of the debt paid to the
creditor on behalf of the suretyship arrangement but not other expenses incurred.
Answer:
Trademarks may be registered only with the federal government.
Answer: