An instrument is conditional if:
a. it contains an order for the payment of money out of a particular fund.
b. it is to be paid from the assets of an existing trust.
c. it is to be paid from the assets of an existing estate.
d. none of the above.
Which statement is true concerning administrative hearings?
a. The findings are turned over to a court of law for the final decision.
b. Denial of a jury trial is a denial of due process.
c. It is generally necessary to give notice of an administrative hearing and to allow
affected persons to be present.
d. Traditional courtroom rules of evidence must be applied.
If the parties to a contract agree to undo the agreement and return any consideration
involved, the contract is discharged by:
a. mutual cancellation
b. mutual rescission.
c. novation
d. accord and satisfaction
Price regulations:
a. may be imposed by the national government.
b. may be imposed by state governments.
c. include rules regarding credit terms and other charges.
d. all of the above.
A parents’ group in a small town formed an association to run a little league baseball
team. Tom and Mary were members of the association, which was never incorporated.
Tom was elected president of the association and ordered some uniforms for the team.
When the uniforms were not paid for, the baseball supply company sued Tom and Mary
for the contract price. Regarding the liability of Mary:
a. Mary is liable because she is a member of an unincorporated association.
b. Mary is not liable because members of an unincorporated association have no
personal liability.
c. Mary is liable if she authorized or ratified the purchase.
d. Mary is liable but only for 50% of the outstanding debt.
When a partner disassociates with a partnership:
a. the partnership is no longer bound by acts of that partner, whether or not a notice is
filed.
b. the disassociated partner is prohibited from competing with the partnership for a
period of one year.
c. the disassociated partner may be liable for damages for breach of contract.
d. none of the above.
In states that have adopted the Revised Model Business Corporation Act, the secretary
of state may commence proceedings to administratively dissolve a corporation under all
but which of the following circumstances?
a. the corporation adopts more than one business purpose.
b. the corporation does not pay franchise taxes within sixty (60) days after they are due
c. the corporation does not file its annual report within sixty (60) days after it is due.
d. the corporation is without a registered agent or registered office for sixty (60) days or
more.
Among the guidelines for balancing the interests of various stakeholders to resolve
ethical dilemmas in business are:
a. identify potential parties who could be injured by the proposed action.
b. define the problem from both the decision maker’s and opposing viewpoints.
c. ask whether you would be willing to describe a proposed action to your family, the
board of directors, a congressional hearing, or other public forum.
d. all of the above.
Which of the following is true about administrative agencies?
a. Administrative agencies exercise powers guaranteed to them in the U.S. Constitution.
b. Administrative agencies exercise powers allocated to them by the president.
c. Administrative agencies make decisions that are rarely reviewed by the courts.
d. Administrative agencies make decisions that are effectively reviewed by voters.
If a tenant fails to pay rent on time the landlord:
a. has an automatic lien on the tenant€s personal property for the money due.
b. has the right to lock the tenant out of the property.
c. may take legal steps to evict the tenant.
d. all of the above.
The party making an assignment is called the:
a. assignee.
b. assignor.
c. obligor.
d. successor.
In a cash sale not requiring the movement of goods, each party has the right to demand
that the other perform at the same time.
Consequential damages are available to the buyer but not to the seller.
A noncompetition covenant may be held invalid because of vagueness concerning the
duration and geographic area of the restriction.
An insurance company cannot refuse to pay the fire loss of the buyer of a house on the
grounds that the sales contract for the house was not binding because it was not
properly signed.
Under the common law, the reason a landlord terminates a lease by notice is immaterial.
Hiring an individual with a criminal record is conclusive proof that the employer is
liable for the tort of negligent hiring.
To prevail in an action for trade dress infringement, a plaintiff must prove that its trade
dress is distinctive and nonfunctional and the defendant€s trade dress is confusingly
similar to the plaintiff€s.