The inaccessibility exception is a rule that permits employees and union officials to
engage in union solicitation on company property if the employees are beyond reach of
reasonable union efforts to communicate with them.
Writ of garnishment is an order of the court that enables a government officer to seize
property of the breaching party and sell it at auction to satisfy a judgment.
The right to cure rule allows buyers to claim replacements for noncorforming goods.
A minor who does not misrepresent his or her age can disaffirm negotiable instruments.
According to the Fair Labor Standards Act, children under the age of 14 are forbidden
from working, including as newspaper deliverers.
Neither the general partners nor the limited partners have personal liability for the debts
and obligations of the LLLP.
A C corporation pays taxes at the corporate level and the shareholder’s level.
In a special warranty deed, the seller is liable for defects in title that existed before the
seller obtained the property.
Overtime pay is given to nonexempt employees who work more than 40 hours in a
work week.
Individuals and businesses can directly approach the International Court of Justice for
cases involving international contracts.
A gift is a voluntary transfer of property without payment of consideration by the
donee.
Child actors and performers are exempt from the child labor restrictions of the Fair
Labor Standards Act.
Which of the following statements is true of a personal articles floater?
A) The insured can insure specific body parts using this policy.
B) The coverage includes insurance of intangible properties.
C) The coverage does not include loss or damage caused during travel.
D) The insurance company will charge an increased premium based on the articles
insured.
Which of the following is true of proxies?
A) Proxies are not permitted to be submitted electronically.
B) Proxies are signed by a corporation and sent to shareholders.
C) Directors or officers of a corporation cannot hold proxies.
D) Corporations are permitted to solicit proxies from shareholders.
Consistency and ________ are the two principles of Kantian ethics that state that a
person must abide by the rule he or she uses to judge the morality of someone else’s
conduct.
A) reversibility
B) relativity
C) perspectivism
D) utilitarianism
Owners of a corporation who elect the board of directors and vote on fundamental
changes in the corporation are known as ________.
A) spectators
B) shareholders
C) electors
D) associates
Which of the following is true of the management of a general partnership?
A) The number of votes a general partner has depends on the proportion of his or her
capital investment.
B) Partnership matters are decided by unanimous agreement only.
C) Only general partners in the board of directors have the authority to participate in the
management.
D) If the vote is tied, the action being voted on is considered to be defeated.
Unless otherwise agreed to by the parties, if the buyer purchases goods on credit sale
from the seller, the credit period starts from the time ________.
A) the goods are shipped
B) the buyer receives the goods
C) the contract is signed by the buyer
D) the buyer accepts the shipment
A(n) ________ grants the owner all the incidents of a fee simple absolute except that
ownership may be taken away if a specified condition occurs or does not occur.
A) future interest
B) servient estate
C) fee simple defeasible
D) easement estate
Under a(n) ________ agreement, an employer agrees to hire only employees who are
already members of a union.
A) union shop
B) agency shop
C) confirmed shop
D) closed shop
Which of the following is true of an unqualified indorsement?
A) It does not limit or disclaim liability.
B) It obligates the indorser to pay for the instrument.
C) It guarantees payment of the instrument if the maker defaults.
D) It protects subsequent indorsees from liability.
Ron uses his status message on his Facebook account to invite his friends to buy his
desktop computer. His friend Carl is interested and calls Ron to express his interest.
Ron tells him that he is selling the computer for $400. Carl offers to pay $350 and Ron
accepts the offer. They decide to complete the sale after three days. The next day, Ron
puts up another update on his Facebook account stating he has decided not to sell his
computer. Which of the following describes Ron’s action of deciding not to sell his
computer?
A) revocation
B) rejection
C) counteroffer
D) unequivocal acceptance
Which of the following indorsements would be considered a nonrestrictive
indorsement?
A) pay to the order of Jane Doe
B) pay to Jane Doe only
C) for deposit only
D) pay to Jane Doe, trustee
In terms of copyright law, the use of copyrighted material in a satire or parody would be
an example of ________.
A) copyright infringement
B) application of fair use doctrine
C) piracy
D) copyright sharing
Holly Lane is an accountant with Mildred & Lane Co. and she has recently been asked
to visit Maine Manufacturers to survey their financial records, assess their compliance
with federal and state laws, and provide an opinion reflecting the state of the company’s
financial records. Holly’s assessment of the financial records of Maine Manufacturers is
called a(n) ________.
A) probate
B) audit
C) arraignment
D) easement
Which of the following is true of the board of directors of a corporation?
A) The directors of the board can act individually on the corporation’s behalf.
B) Each director has the power of two votes.
C) Directors cannot vote by proxy.
D) Meetings of the board of directors cannot be held without shareholder
representation.
Pursuant to federal securities laws, an audit must be performed by a certified public
accountant (CPA) who works closely with the company in the capacity of a chief
executive officer (CEO) or a chief financial officer (CFO).
Kinetosphere Automation Inc. (K.A.) makes a mandatory employment contract with all
its employees. The contract states that K.A.’s employees are not to work for any other
organization while they are employed by it. If K.A. finds an employee who is also
serving another company, it can approach the court to obtain a(n) ________ to prevent
the employee from working in the other company.
A) restitution
B) rescission
C) injunction
D) subjugation
Which of the following is true of corporate bylaws?
A) They only contain rules on how the corporation can deal with the government.
B) They are only adopted by the shareholders of the corporation.
C) They are not binding on the directors, or shareholders of the corporation.
D) They do not have to be filed with any government official.