1) unless the articles of incorporation state otherwise, directors cannot be removed with
or without cause.
2) property can be transferred by a will, if it is validly executed.
3) in general, ambiguities in a written agreement are resolved against the party who
drafted the agreement.
4) the robinson-patman act applies if a texas manufacturer discriminated in price in
sales to two texas customers.
5) title vii disparate impact suits involve situations in which an employer has treated an
individual differently because of the persons race, sex, color, religion or national origin.
6) a contract to commit a serious crime is a legal contract.
7) a partner charged with winding up of the partnership has implied authority to take
such appropriate actions necessary to accomplish the wind up.
8) a creditor who fails to file suit to collect a debt within the time prescribed by the
appropriate statute of limitations loses the right to collect it.
9) a contract may be voidable even if the person making the misrepresentation believes
in good faith that what he/she says is true.
10) in which of the following classes of corporation are the controlling shareholders the
only managers of the business?
a.for-profit corporation
b.close corporation
c.not-for-profit corporation
d.publicly held corporation
11) karen is attending the annual general meeting of shareholders of express
corporation. six directors are going to be elected from seventeen nominees during the
meeting through straight voting. karen owns 372 shares of express. what is the
maximum number of nominees karen can vote for?
a.1
b.6
c.10
d.17
12) the primary distinction between an action based on innocent misrepresentation and
an action based on common law fraud is that, in the former, a party need not allege and
prove:
a.that there has been a false representation.
b.the materiality of the misrepresentation.
c.reasonable reliance on the misrepresentation.
d.that the party making the misrepresentation had actual or constructive knowledge that
it was false.
13) _____ of the robinson-patman act makes it illegal for a buyer knowingly to induce
or receive a discriminatory price in violation of section 2(a) of the robinson-patman act.
a.section 2(f)
b.section 2(c)
c.section 2(d)
d.section 2(e)
14) which of the following considers a properly dispatched acceptance sent by a
reasonable means of communication within a reasonable time to be effective on
dispatch?
a.traditional contract laws
b.ucc
c.cisg
d.restatement (second)
15) tracy, age 12, is named the sole inheritor of her family mansion which is valued to
be worth millions. she has disaffirmed the agreement on the advice of her uncle and
guardian pete. this automatically transfers the title to the latter. which of the following
statements is true of the case?
a.tracy cannot disaffirm until she has reached majority.
b.tracys decision will be allowed by the family courts.
c.pete has every right to tracys property and can take legal possession of it.
d.tracys decision is valid as long as it is in writing.
16) the uniform securities act permits an issuer to register by coordination, which
means the issuer:
a.can file the 1933 act registration statement with the state securities administrator.
b.becomes exempt from registration under state securities registration law.
c.needs to file under the state securities registration law only and not the 1933 act.
d.need not register the securities statement once he/she has registered under the 1933
act.
17) which of the following is an exception to the mandatory availability schedules of
the expedited funds availability act?
a.cashiers checks
b.tellers checks
c.electronic payments
d.new accounts
18) if a person dies intestate, his real property will be distributed:
a.to the state in which the property is located.
b.to the state of the persons domicile.
c.according to the law of the state in which the property is located.
d.according to the law of the state of the persons domicile.
19) in a(n) _____ transaction, the borrower keeps the title of his real property with a
third party and in the event of default, the third party can sell the property so that the
creditor can recover his loan.
a.strict foreclosure
b.land contract
c.deed of trust
d.equity of redemption
20) most serious crimes require mens rea, or criminal:
a.behavior.
b.violation.
c.intent.
d.prosecution.
21) twentieth century product liability law is best characterized by the phrase:
a.res ipsa loquitur.
b.caveat venditor.
c.caveat emptor.
d.laissez-faire.