1) In most states, statutes require leases for terms exceeding one year to be in writing,
and state or local law often dictates permissible lease terms.
2) Most states do not permit the corporate articles or bylaws to authorize compensation
for directors.
3) If a corporation has S corporation status, it can avoid the imposition of income taxes
at the corporate level.
4) Labor law regulates the circumstances and conduct of strikes.
5) A seller is prohibited from making an exclusive-dealing contract if the effect is to
tend to create a monopoly.
6) Most employers with fifty or more employees are required to offer health-insurance
benefits.
7) There is a requirement that testators give their estate to the natural heirs.
8) A limited liability company is a citizen of every state of which their members are
citizens.
9) If a member’s dissociation from a limited liability company is rightful, normally the
dissociated member has the right to force the LLC to dissolve.
10) Under a destination contract, the risk of loss passes to the buyer when the goods are
duly delivered to the carrier.
11) Advertising that contains an endorsement by a celebrity will not be deemed
deceptive.
12) Restitution involves one party’s recapture of a benefit conferred on the other party
that has unjustly enriched him or her.
13) Any party who does not receive what he or she considers a fair bargain can argue
mistake.
14) When processing a check, Superior Bank encodes information, such as the amount
of the check, on the item. Superior thereby warrants to any subsequent bank or payor
a.the item has been returned to the drawer.
b.nothing.
c.the check has been processed manually.
d.the encoded information is correct.
15) Ruta is a supervisor for Subs & Suds, a restaurant. Tim is a Subs employee. The
owner announces that some employees will be discharged. Ruta tells Tim that for sexual
favors she will give him an excellent performance review and recommend a raise. This
is
a.harassment on the basis of sexual orientation.
b.hostile-environment harassment.
c.not harassment.
d.quid pro quo harassment.
16) Oleg takes a PowerMade-brand rototiller to QuikFix Inc. for repairs. Lacking
certain parts, QuikFix ships the rototiller to Repair & Parts Company. While in Repair
& Parts’s possession, the machine is damaged. QuikFix can recover for the damage
from
a.no one.
b.Oleg.
c.PowerMade.
d.Repair & Parts.
17) Medical Billing Collection Corporation and Naturopath Clinic make a deal for
Medical Billing’s services via e-records. Under the UETA, an e-record is considered
received when
a.it enters the recipient’s processing system in a readable form.
b.the recipient is aware of its receipt.
c.the recipient is aware that it has been sent.
d.it leaves the sender’s control.
18) Congress enacts a law prohibiting toys made in Indonesia from being sold in the
United States. The Washington state legislature enacts a law allowing the sale of
Indonesian-made toys. Washington€s law will most likely be
a.rendered invalid under the supremacy clause.
b.held to be valid under the equal protection clause.
c.struck down under the taxing and spending clause.
d.upheld under the commerce clause.
19) Alana is a dissenting shareholder of Bulls-Eye Arrow Company whose management
is considering a tender offer by Crossbow, Inc. Alana and Bulls-Eye cannot agree on the
fair value of the stock. The value will be determined by
a.a court.
b.Alana.
c.Bulls-Eye.
d.Crossbow.
20) OnSpec, Inc., and its officers, directors, and shareholders, buy and sell securities.
Section 16(b) of the Securities Exchange Act of 1934 covers purchases and sales of
securities involving
a.corporate insiders.
b.misappropriation.
c.short-swing profits.
d.tippers and tippees.
21) Ileana orally agrees to pay Jaime to plant and harvest a quarter of Ileana’s farm
acreage for four corn-planting seasons. After Jaime prepares the land and plants the first
crop, Ileana says that their deal is off. Jaime can most likely recover
a.in quasi contract.
b.in reformation.
c.in restitution.
d.on the parties’ existing contract.
22) Amelia executes a separate written instrument to amend her prior will. This separate
document is
a.a codicil.
b.a holographic will.
c.a living will.
d.a nuncupative will.
23) Green Hybrid Auto Corporation pays its executives an excessive amount relative to
what lower-level employees at the company receive and to what executives at
competitive companies are paid. Green Hybrid’s pay scale is most likely to be
challenged as
a.illegal.
b.unprofitable.
c.unconscionable.
d.unethical.
24) Niles, an accountant, certifies several audit reports on Optimal Operational
Processes, Inc., Niles’s client, knowing that the company intends to use the reports to
borrow money from Prime Business Lending Company to buy new equipment. Niles
believes that the reports are true and does not intend to deceive Prime Business, but
does not check the reports before certifying them. Can Niles be held liable to Prime
Business?
25) Able Trucking Corporation files a suit in a state court against Bob€s Service
Company (BSC), and wins. BSC appeals the court€s decision, asserting that the
evidence presented at trial to support Able Trucking€s claim was so scanty that no
reasonable jury could have found for the plaintiff. Therefore, argues BSC, the appellate
court should reverse the trial court€s decision. Is the appellate court likely to reverse the
trial court€s findings with respect to the facts? Explain.
26) With respect to negotiability, an order on an instrument may be addressed to one
person or to more than one person, either jointly or alternatively.
27) Banks must pay interest based on the full balance of a customer’s interest-bearing
account on the day the bank posts the interest.
28) The doctrine of quasi contract generally can only be used when there is an actual
contract that covers the matter in controversy.
29) Directorsare prevented from ever having financial dealings with the corporations
they serve.