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1) which of the following is true about the fifth amendment and the production of
records?
a.it would allow a bogus, inc., officer who has custody of bogus records to resist a
subpoena demanding production of those records if the contents of the records could
incriminate that officer personally.
b.it would prevent a sole proprietor from being compelled to produce his/her business
records if the act of producing such records was not testimonial in nature.
c.it may be asserted by a corporation, partnership, or other collective entity on the same
basis that an individual human being could assert it.
d.it does not protect required records from being subpoenaed and used against the
record keeper in criminal prosecutions.
2) _____ is the plaintiffs voluntary consent to a known danger.
a.contributory negligence
b.product misuse
c.no privity
d.assumption of risk
3) which of the following is the only form of perfection that occurs without the giving
of public notice?
a.perfection by public filing
b.perfection by attachment
c.perfection by possession
d.perfection by control
4) _____ shares are shares that have been sold to shareholders.
a.preferred
b.issued
c.authorized
d.outstanding
5) _____ are long-term, unsecured debt securities.
a.options
b.warrants
c.bonds
d.debentures
6) what is the principals duty when his agent makes express or implied authorized
expenditure while acting on his behalf?
a.duty to compensate
b.duty to take care
c.duty of accounts
d.duty to reimburse
7) tennessee-alabama fireworks company (taf) is incorporated in tennessee. it maintains
year-round retail stores in tennessee and alabama. it also sells fireworks to individual
consumers at a gas station parking lot in indiana for a period of 20 days before the
fourth of july. must taf qualify to do business in indiana?
8) jerry hall makes out a note for $100 in such a way that someone could alter it to read
$100,000. someone alters the note and negotiates it to pete mason, who can qualify as a
holder in due course. which of the following statements is true for this situation?
a.jerry shall share the loss with the bank where she holds an account.
b.jerry does not have to pay pete who currently possesses the note.
c.pete can collect $10,000 from the person who raised the note.
d.pete can collect $10,000 from jerry.
9) which of the following is true about dissolution and winding up the partnership?
a.in liquidation, the assets may not be sold separately.
b.winding up always requires the sale of assets.
c.during winding up, the partners continue as fiduciaries to each other.
d.most firms provide the partners with the firms assets rather than proceeds from the
sale of the same.
10) what is the number of events considered sufficient under the minimum contacts test
to confer jurisdiction on a states courts?
a.10
b.20
c.1
d.5
11) under revised article 3, a person is a(n) _____ if she is in possession of an
instrument that is payable to bearer or made payable to an identified person and she is
that identified person.
a.payor
b.issuer
c.bailor
d.holder
12) which of the following is correct concerning the management of close corporations?
a.the mbca statutory close corporation supplement grants the shareholders unlimited
power to restrict the discretion of the board of directors.
b.modern close corporation statutes require close corporations to comply with most
management formalities.
c.the mbca statutory close corporation supplement permits a close corporation to
dispense with shareholders and directors.
d.the california general corporation law permits a close corporation to be managed as if
it were a sole proprietorship.
13) not-for-profit corporations are regulated primarily by the:
a.states.
b.federal court.
c.federal government.
d.supreme court.
14) parsons, a pedestrian watching a construction project, sees that a metal beam being
lifted by a crane is about to drop on some unsuspecting workers. thus, he rushes to the
scene to warn the workers. for his efforts, he is struck by the falling beam. he sues the
construction company in negligence. which of the following is true? assume that the
falling beam was caused by a breach of duty on the companys part.
a.parsons will recover against the company.
b.parsons will recover, because it is foreseeable that a pedestrian would run onto the
scene of an accident such as this.
c.parsons will not recover, because he knowingly and voluntarily assumed the risk of
being struck by the beam.
d.parsons will not recover, because he should have instead sued the worker operating
the crane.
15) earl is halls agent for a real estate transaction. which of the following will terminate
the agency relationship by act of the parties?
a.earl revokes his agency.
b.hall announces that he is filing for bankruptcy.
c.hall dies, but earl is not informed.
d.notice of the death of hall published in a newspaper.
16) john buys a machine for $10,000 under a contract that excludes consequential
damages and limits the buyers remedies to repair and replacement of defective parts.
john later discovers that the machine is not working properly. under these circumstances
if the remedy of limitation is enforceable, then, to what extent will john be successful?
a.john can recover $10,000.
b.john will have to pay an additional amount for any repairing done.
c.john is entitled to any damages since he did not check the machine on purchase.
d.john can only get the machined replaced or repaired by the seller.
17) selena delegates her rights under a contract. the clause delegating her rights are
termed: all my rights under the contract are hereby effectively delegated to. this
language shows that the contract is of:
a.delegation only.
b.assignment only.
c.assignment and delegation.
d.a third-party beneficiary.
18) if the deceased had no surviving relatives, the property goes to _____.
a.the executor
b.a charity picked by an assigned trustee
c.his friends
d.the state
19) which of the following is true about the williams act?
a.it regulates tender offers only when the bidder intends to hold at least 2 percent of the
subject companys shares.
b.it requires bidders to solicit shares from at least 100 shareholders.
c.it does not permit tendering shareholders to withdraw their tendered shares.
d.it protects investors and gives the bidder and the subject company equal opportunities
to present their cases to the shareholder.
