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1) melissa hurls a rock with the intention to hit dave, with whom she has just fought. the
rock hits stacey, instead, who is sitting next to dave. melissa is liable for battery under
the clause of:
a.conversion.
b.private nuisance.
c.actual malice.
d.transferred intent.
2) raider corporation (rc) attempted to take over targetnorth corporation (tc) using a
tender offer. the tender offer price was twice the market price for tc shares. tc
management opposed this takeover, as a result of which it failed. shareholders of tc who
had hoped to sell their shares at a large profit want to sue the management of tc for
spoiling the takeover. if they sue tc management, will the shareholders succeed?
a.yes, if they can show that tc management did not carefully study the rc tender offer.
b.yes, if they can show that they would have been much better off accepting the tender
offer.
c.no, the business judgment rule protects management in all cases of resisting a
takeover.
d.no, even if the shareholders can show that management resisted the takeover in their
own self-interest.
3) which of the following grants a person unconditional power to dispose of the
property during her lifetime or upon her death?
a.license
b.easement
c.fee simple absolute
d.profit
4) average corp. was convicted of violating the federal mail fraud statute due to the
activities of some of its employees, who had used the u.s. mail to perpetrate a
fraudulent scheme designed to advance the otherwise legitimate business interests of
average. average has appealed, arguing that its conviction should be set aside because
the employees in question were relatively minor officials of the company and were
acting without the knowledge or consent of any high-level corporate officer. in addition,
average argues that the involved employees were acting in violation of a longstanding
and well-known average policy against fraudulent schemes. should averages conviction
be set aside?
a.yes, because average could not have had the necessary mens rea.
b.no, because the involved employees were acting within the scope of their employment
and for the benefit of average.
c.no, because nothing in the facts indicates that average should qualify for the
protection of the due diligence defense recognized by most courts.
d.yes, because high-level corporate officers must be involvedand they were not
involved herein order for criminal intent to be imputed to the corporation.
5) outland corporation is incorporated in wyoming, where it has its executive office. it
has a manufacturing plant in utah, and a warehouse in new mexico, where most of its
sales are made. outland is subject to taxation in:
a.wyoming, utah, and new mexico.
b.wyoming and utah only.
c.wyoming and new mexico only.
d.new mexico only.
6) the process by which agency _____ rules are promulgated is highly regulated by the
apa and closely scrutinized by the courts.
a.procedural
b.interpretive
c.administrative
d.legistlative
7) which of the following is the most important type of equitable remedy provided by
the equity courts?
a.injunction
b.specific performance remedy
c.reformation
d.rescission
8) what is the laws main purpose in imposing the implied covenant of good faith and
fair dealing?
a.providing adequate remedial measures to injured parties
b.punishing the breaching parties in a contract
c.encouraging litigation regarding breach of contracts
d.encouraging ethical behavior in contracts
9) ralph, the owner of a medium-sized business which is operated as a sole
proprietorship, gives his vice-president, wanda, authority to hire a new manager for the
firm. ralph gives wanda detailed instructions about the salary she can contract to pay,
but tells her that under no circumstances can she make commitments regarding the new
managers pension. wanda contracts to hire nick for the new managerial position. but to
get nick to sign up, she has to make certain specific pension commitments to him. some
years later, nick sues ralph for copping out on those pension commitments. which of the
following is true in this case?
a.ralph has no liability, because he expressly told wanda that she didnt have authority to
bind him on pension matters.
b.ralph is bound on the basis of wandas apparent authority.
c.ralph is bound on the basis of wandas implied authority.
d.ralph is bound on the basis of wandas actual authority.
10) if jay signs milas name to a negotiable instrument without milas authorization or
approval:
a.the signature is not effective as the signature is of the unauthorized signer.
b.the signature cannot be ratified later by the person represented.
c.the signature does not bind the person whose name appears.
d.jay is not liable on the check.
11) which of the following is the most essential requirement while making a valid gift?
a.intention
b.delivery
c.consideration
d.acceptance
12) joe is the promoter of new corporation (nc). he entered into various
preincorporation contracts. nc was properly formed on january 1, 2006. as a result:
a.joe is no longer personally liable on those preincorporation contracts.
b.nc is automatically liable on those preincorporation contracts.
c.joe is jointly and severally liable on preincorporation contracts.
d.joe is not liable because nc released him from personal liability.
13) which of the following is true about mergers?
a.the shareholders of the surviving corporation must approve the merger.
b.the mbca does not recognize mergers done solely for the profit motive.
c.a merger may be invalidated if it freezes out minority shareholders.
d.shareholders of the acquired corporation must be paid a premium on their shares.
14) a contract may be enforced by a third-party beneficiary if that beneficiary:
a.is an incidental beneficiary.
b.is a witness to the contract.
c.is the intended beneficiary.
d.has given some consideration.
15) _____ refer(s) to the goods used or bought primarily for personal purposes.
a.inventory
b.fixtures
c.consumer goods
d.equipment
16) social security is mainly financed by _____.
a.fica
b.erisa
c.flsa
d.fmla
17) in general, liability for defamation requires:
a.widespread communication of the defamatory statement.
b.communication of the defamatory statement from the plaintiff herself.
c.publication of the defamatory statement.
d.the identification of the source of the defamatory statement.
