A corporation or group of investors may seek to acquire control of another corporation
by offering cash for all of its shares made available for sale by a certain date. This
action is called a(n):
a. cash tender offer.
b. stock redemption offer.
c. stock reclamation offer.
d. offer for value.
Straight voting:
a. increases the voting power of minority shareholders.
b. is the normal method for shareholder voting on corporate matters.
c. restricts each shareholder to one vote, regardless of the number of shares owned.
d. all of the above.
Which of the following is not an element of an accord and satisfaction?
a. a bona fide dispute
b. a proposal to settle the dispute
c. performance of the agreement to settle the dispute
d. reservation of rights under the federal Consumer Credit Protection Act
What is not part of the presumptions of the business judgment rule concerning
directors?
a. that the decision they reached was profitable to the corporation
b. that they acted on an informed basis
c. that they acted in good faith
d. that they acted in the honest belief that the action taken was in the best interest of the
corporation
The principal must:
a. perform the contract according to its terms.
b. compensate the agent for services.
c. indemnify the agent for loss in some circumstances.
d. all of the above.
Letters testamentary:
a. are given to an administrator.
b. are given to an executor.
c. require a bond to be filed by the person to whom they are given if the will exempts
the requirement.
d. none of the above.
Under which circumstance will an employee not be entitled to Workers’ Compensation
benefits for an on-the-job injury?
a. an injury that is the result of an employee’s own negligence
b. an injury that is the result of an employee’s own gross negligence
c. an injury that is caused by a fellow employee
d. an injury that is the result of an employee’s intoxication
Due process rights apply to:
a. individuals only.
b. corporations only.
c. both individuals and corporations.
d. individuals, but only in their official capacity within a business.
Which of the following is not consideration for a present promise?
a. a good faith adjustment
b. compromise and release of claims
c. the promise to pay one’s child support obligation, consistent with a pre-existing court
order.
d. the performance of a requested act
The bubble concept:
a. refers to dirty areas that do not meet federal standards under the Clear Air Act.
b. controls whether new factories can be built in a nonattainment area.
c. is a method for determining total emissions in one area.
d. all of the above.
One element involved in the determination of unconscionability is:
a. the comparative bargaining power of the parties.
b. the opportunity to make a contract for better terms with someone else.
c. the course of the economy after the contract is made.
d. whether a loss will be sustained by performance of the contract.
Sources of American law include:
a. state constitutions.
b. statutes enacted by state legislatures.
c. court decisions.
d. all of the above.
When an employer has a contract with an employee for the employee to work for a set
period of time, which of the following would not justify discharging the employee?
a. financial hardship of the employer
b. nonperformance of duties by the employee
c. theft by the employee
d. possession of drugs by the employee
A __________ action restores the property to the landlord€s possession unless the
tenant complies with payment requirements.
a. forcible entry and detainer
b. forcible exit and retainer
c. passive entry and detainer
d. passive exit and retainer
A holder is a party in possession of an instrument that €runs€ to him. An instrument
runs to a party if it is:
a. payable to his or her order.
b. bearer paper.
c. indorsed to him or her.
d. all of the above.
An antimodification clause specifies that a waiver to any breach automatically modifies
the contract .
Agreements that are contrary to public policy are not binding.
Manuel sued Patricia on a promissory note. Patricia admitted signing the note, but
raised the defense that Manuel was not a holder in due course. Can Manuel recover
without proving that he is a holder in due course?
A quasi-public corporation is one that is organized for charitable or benevolent
purposes.
A trust may be terminated by its own terms.