Which of the following is an incorrect statement about directors?
a. Their eligibility requirements may be found in the bylaws.
b. Bylaws may require that directors be shareholders in the corporation.
c. The board of directors has authority to manage the corporation.
d. Courts will interfere with the board’s discretion when they disagree with its actions.
The relatives of an individual who dies without a valid will may acquire title to the
decedent’s property through:
a. intestate succession.
b. the right of replevin.
c. testate succession.
d. the right of acquisition.
The rules and regulations enacted by a corporation to govern the affairs of the
corporation and its shareholders, directors and officers are called:
a. articles of incorporation.
b. corporate management agreements.
c. bylaws.
d. articles of organization.
The parol evidence rule does not prohibit proof that:
a. the contract was thereafter modified.
b. conduct exists that violates the law.
c. the written contract is not a binding agreement.
d. all of the above.
Ordinarily, a promise to perform an existing legal obligation is:
a. not consideration.
b. binding if the promisor promises to perform with extra care.
c. binding if the promisor promises to perform to suit the personal satisfaction of the
promisee.
d. binding if the promisee would experience substantial loss due to breach of the
promise.
Pasquale and Paul were sureties on the debt of Rose. Each had a $100,000
responsibility. Upon Rose’s default, Pasquale paid $50,000 to the creditor. How much
may Pasquale recover from Paul under the concept of contribution?
a. Zero
b. $50,000
c. $10,000
d. $25,000
Which of the following is part of an administrative agency€s power to investigate?
a. an investigation to determine whether additional administrative rules need to be
adopted
b. an investigation to ascertain facts with respect to a particular suspected or alleged
violation
c. an investigation to determine whether the defendant in a proceeding before the
agency is complying with its final order
d. all of the above
The commerce clause of the Constitution:
a. prohibits the U.S. government from engaging in interstate commerce.
b. prohibits the U.S. government from regulating interstate commerce.
c. has been expanded by Supreme Court interpretations to give the U.S. government the
power to regulate the general welfare of the nation.
d. was declared unconstitutional in 1937.
An unsolicited distribution of credit cards to persons who have not applied for them is:
a. always allowed.
b. voidable.
c. illegal.
d. only allowed if the recipient is at least 21 years old .
It is expected that in the future, the limited liability company will in many instances
replace which of the following forms of business ownership?
a. the general partnership
b. the limited partnership
c. the close corporation
d. all of the above
Describe the rights of employers to monitor the e-mail of employees who are using
their employers€ email system.
a. Employers may monitor employees’ e-mails, but only if the employees have
consented.
b. Employers may monitor employees’ e-mails, regardless of whether employees have
consented.
c. Employers may monitor employees’ e-mails, but only if notice is given.
d. Employers may not monitor employees’ e-mails.
The Securities Act of 1933 deals with the original distribution of securities by the
issuing corporations.
A special agent is authorized by the principal to handle a definite business transaction
or do a specific act.
An absolute guaranty creates the same obligation as a suretyship.
The doctrine of substantial performance is concerned with the issue of whether an
imperfect performance will be considered adequate to discharge one’s responsibilities
under a contract.
Jurisdiction over bankruptcy proceedings is vested in the federal district courts.
The warranties of both merchantability and fitness for a particular purpose exist under
the Convention on Contracts for the International Sale of Goods (CISG).
Sally Gomez is interested in starting a new business. Although Gomez has developed
her business plan and is ready to implement her ideas, she lacks the necessary finances
to begin her new business. Along with a lack of finances, Gomez worries about the
potential liability involved with starting a new business. Gomez would hate to lose all
that she has personally accumulated to date in the event of a successful lawsuit against
her. She is considering a sole proprietorship, a partnership, or a corporation as the
organizing structure of her new venture. Which type of business would best serve
Gomez’s needs at this given time?
Consequential damages may not be recovered, even if they were within the
contemplation of the parties at the time of contracting.
Whenever a sale of goods is made, certain warranties are implied unless they are
expressly excluded.
A deed, like a contract, must be supported by consideration to be effective.