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1) a hotelkeeper is liable for loss or damage to property if it can be proved that it was
caused by:
a.the bailors negligence.
b.an act of a government authority.
c.the nature of the goods.
d.the bailees own conduct.
2) a trade secret differs from a patent, in that, a trade secret:
a.grants a monopoly to the creator.
b.stimulates creative activity.
c.is guarded by the creator.
d.is nonpublic by definition.
3) the new article 3 no longer considers _____ as restrictive indorsements.
a.indorsements for deposit
b.conditional indorsements
c.indorsements directing the indorsee to act for someone elses benefit
d.indorsements for collection
4) which of the following partnerships can be classified as nontrading partnership
engaged in providing services?
a.dairy farming
b.general contracting
c.real estate brokerage
d.manufacturing
5) if a partner fails to contribute the amount equal to her negative capital account
balance, then it can be recovered:
a.from that partners assets.
b.by obtaining an undertaking from that partner.
c.from the other partners.
d.by charging the creditors account.
6) the _____ is a very relaxed means-ends test of constitutionality which challenged
laws usually pass with ease.
a.rational basis test
b.intermediate scrutiny
c.due process test
d.full strict scrutiny
7) _____ voting may permit minority shareholders to obtain representation on the board
of directors.
a.preference
b.cumulative
c.ranked
d.straight
8) _____ is the failure to use reasonable care, with harm to another party occurring as a
result.
a.assault
b.recklessness
c.negligence
d.liability
9) the general rule is that, contracts entered into during minority can be disaffirmed as
soon as they are formed. which of the following is an exception to the rule?
a.contracts affecting investment.
b.contracts affecting the title to real estate.
c.contracts affecting necessary supplies to be provided to the minor.
d.contracts affecting his/her employment as a child actor.
10) the shipment of non-conforming goods intended as an accommodation to the buyer
is a(n) _____.
a.ambiguous offer
b.prompt shipment
c.counteroffer
d.inquiry regarding terms
11) according to the ctea, the protection period for pre-1978 works is:
a.50 years.
b.65 years.
c.75years.
d.95 years.
12) the effect of a valid delegation of duties is that it:
a.discharges the delegator from any further liability.
b.is an automatic novation.
c.discharges the obligee from any further liability.
d.appoints the delegatee to perform the delegators duty to the obligee.
13) under the business judgment rule, corporate managers:
a.must not make uninformed decisions.
b.may have conflicts of interest.
c.are not required to make reasonable investigations.
d.may not benefit even as shareholders.
14) dart corp. dismissed ritz as its general sales agent. dart notified all of ritzs known
customers by letter. bing corp., a retail outlet located outside of ritzs previously
assigned sales territory, had never dealt with ritz. however, bing knew of ritz as a result
of various business contacts. after his dismissal, ritz sold bing goods, to be delivered by
dart, and received from bing a cash deposit for 20 percent of the purchase price. it was
not unusual for an agent in ritzs previous position to receive cash deposits. in an action
by bing against dart on the sales contract, which of the following is true?
a.bing will win the lawsuit because darts notice was inadequate to terminate ritzs
apparent authority.
b.bing will win the lawsuit because dart, the principal, is an insurer of ritzs, the agents
acts.
c.bing will lose the lawsuit, because ritz lacked any express or implied authority to
make the contract.
d.bing will lose the lawsuit because bing was negligent while making a contract with
ritz.
15) which of the following characterizes a warehouseman?
a.he is a bailor of the stored goods.
b.he does not have a lien against the bailee of the stored goods.
c.he need not exercise care for the stored goods, as it is the bailees responsibility to do
so.
d.he can terminate the contract if the goods are about to deteriorate.
16) courts may decline to enforce unconscionable terms or contracts. this provision has
been laid down in:
a.section 12 of ucc.
b.section 208 of ucc.
c.section 4 of ucc.
d.section 208 of restatement (second) of contracts.
17) which of the following critical thinking errors is likely to occur among the
subordinates if a leader is unethical?
a.false analogy
b.bandwagon fallacy
c.false cause
d.gamblers fallacy
18) where the goods are to be delivered in installments, an installment delivery may be
rejected only if the nonconformity substantially affects the value of that delivery and:
a.if payment is to be made as per the contract price.
b.if the nonconformity cannot be corrected by the seller.
c.if the buyer accepted the goods with full knowledge of the nonconformity.
d.if payment has already been made.
19) sue wanted to purchase a car. she went to honest bobs used car sales. she was
interested in a classic 1956 jaguar xk 140 roadster. bob told her this is a great car-it runs
like a dream, it is a sweet ride. bobs statements are legally considered to be:
a.opinion statements.
b.material representations.
c.innocent misrepresentations.
d.fraudulent, if they are false.
20) rule _____ of the sec prohibits insider trading on nonpublic corporate information.
a.10b5
b.14e3
c.14a8
d.10c7
