LGST 87299

subject Type Homework Help
subject Pages 13
subject Words 2055
subject Authors David P. Twomey, Marianne M. Jennings

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page-pf1
Federal regulation of the sale of securities is based on the:
a. Securities Act of 1933 and the Securities Exchange Act of 1934.
b. Securities Act of 1933 and the Federal Trade Act of 1936.
c. Federal Trade Act of 1936 and the Blue Sky Act of 1933.
d. Fair Stock Act of 1932 and the Investment Securities Act of 1934.
The bubble concept:
a. refers to dirty areas that do not meet federal standards under the Clear Air Act.
b. controls whether new factories can be built in a nonattainment area.
c. is a method for determining total emissions in one area.
d. all of the above.
Generally, it is easiest to assign:
a. credit.
b. personal services.
c. money.
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d. all of the above.
Unfair competition is controlled by:
a. statutes.
b. administrative agencies.
c. administrative regulations.
d. all of the above.
A shareholder has a right to inspect the books of the shareholder's corporation if:
a. the request is made in good faith.
b. the request is made with proper motives.
c. the inspection takes place at a reasonable time and place.
d. all of the above.
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Which of the following will affect the perpetual life of a corporation?
a. a change in stock ownership
b. the death of a shareholder
c. both a. and b.
d. neither a. nor b.
A third person should recognize that a partner has limited or no authority if:
a. the partner seeks to act for the partnership concerning a matter not within the usual
business of the firm.
b. the third person knows that the partnership has been terminated.
c. the partner seeks to pay a personal obligation by issuing a promissory note in the
name of the firm.
d. all of the above.
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Clark is the senior payroll clerk for Gonzalez Corporation. When preparing the weekly
payroll, Clark added the name of Simmons, a fictitious employee, to the payroll list.
Lewis, the treasurer of the corporation, signed the payroll checks and delivered them to
Clark. Clark distributed checks to the correct employees and kept the one made payable
to the order of Simmons. Clark indorsed the name of Simmons to the check, cashed it at
Diamond Check Cashing. In this situation:
a. an indorsement was not necessary to negotiate the instrument.
b. the Gonzalez Corporation can seek recovery against Diamond Check Cashing.
c. the forged signature is given the same effect as though it had been authorized by the
named payee.
d. Clark is not subject to civil or criminal liability.
Which of the following will not result in dissolution of the partnership by court decree?
a. A partner becomes incapable of performing the terms of the partnership agreement
b. A partner persistently or willfully acts in such a way that it is not reasonably
practicable to carry on the partnership business
c. The withdrawal of a partner.
d. All of the above.
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Substantial impairment:
a. only requires proof that goods do not conform to the contract.
b. requires that the goods are shown to be worthless.
c. requires proof that the use to the buyer is materially different than the contract
promised.
d. none of the above.
When a surety pays a debt that it is obligated to pay, it automatically acquires the claim
and the rights of the creditor through:
a. assignment.
b. exoneration.
c. subrogation.
d. default.
A(n) __________ contract is a contract to buy all requirements of the buyer from the
seller.
a. output
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b. essentials
c. necessaries
d. requirements
The defendant in a defective product suit may be:
a. the seller.
b. the manufacturer.
c. the manufacturer of a component part.
d. all of the above.
An action for injunctive relief may be granted:
a. if money is due and payable.
b. if the breach consists of doing a prohibited act.
c. if the breach would cause nominal damages.
d. if the breach would cause consequential damages.
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When a party expressly declares that performance will not be made when required, this
declaration is a(n):
a. anticipatory repudiation.
b. injunction.
c. negotiating technique.
d. waiver of breach.
To protect themselves against liability, franchisors often require individual franchisees
to:
a. take out fraud insurance.
b. register with the attorney general.
c. publicly disclose their own separate business identities.
d. disavow any connection with the franchisor.
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The failure to act or perform in the manner called for by a contract is a:
a. waiver.
b. breach.
c. forbearance.
d. reservation of right.
Advertising regulations are designed to:
a. give the consumer an accurate description of the product.
b. punish sellers who knowingly make false statements about the product offered for
sale.
c. punish sellers who state a false opinion about the product.
d. give the consumer information about other similar products that are available.
Statutes which are drafted from Uniform State Laws are often used to regulate:
a. business.
page-pf9
b. foreign countries.
c. criminal behavior.
d. none of the above.
When a debtor tender a check stating "paid in full" and the creditor cashes the check,
the debt:
a. is always discharged.
b. may be discharged if it is a liquidated debt.
c. may be discharged if it is a unliquidated debt.
d. is never discharged.
Service of process refers to:
a. a demand letter sent by the plaintiff to the defendant.
b. a reply sent to the plaintiff by the defendant.
c. giving the defendant proper notice that a legal action is pending.
d. a record of the court's preliminary hearing.
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The agent of a disclosed principal is liable for harm caused to third persons by:
a. the fraudulent acts of the agent.
b. the malicious acts of the agent.
c. both a. and b.
d. none of the above.
Each partner has to a right to:
a. take an equal part in transacting the business of the firm.
b. receive compensation for any work done for the partnership.
c. both a. and b.
d. neither a. nor b.
page-pfb
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.
When parties intend to negotiate an order instrument but the holder fails to indorse it:
a. there is no negotiation.
b. the transfer has the effect of a contract assignment .
c. the transferee has the right to require the transferor's indorsement if consideration
was given.
d. all of the above.
Some states have rejected the requirement of privity but not adopted any set rule.
Instead, these states function under the __________ rule.
page-pfc
a. known user
b. contact
c. flexible
d. foreseeable user
The goal of the North American Free Trade Agreement (NAFTA) is to eliminate all
tariffs between the United States and Europe.
A written stop payment order or confirmation is effective for:
a. fourteen (14) days.
b. thirty (30) days.
c. six (6) months.
d. one (1) year.
page-pfd
The concept of immunity from liability means that:
a. one who harms another can be held liable only for voluntary acts.
b. certain persons are not subject to tort liability.
c. one who harms another without intending to do so is not subject to tort liability.
d. one who harms a child can never be sued by the parents of the injured child.
Which federal agency is most often authorized to adopt standards and regulations to
carry out the provisions of environmental statutes?
a. FTC
b. ICC
c. EPA
d. SEC
The Robinson-Patman Act:
page-pfe
a. prohibits charging different prices to different buyers when the margin costs are the
same.
b. allows sellers to offer incentives and bonuses to certain customers.
c. allows sellers to refuse to deal with anyone for any reason.
d. all of the above.
The Sherman Act focuses on:
a. unfair methods of competition.
b. combinations or contracts in restraint of trade.
c. permitted price discriminations.
d. intrastate commerce.
A surety is liable from the moment of default whereas a guarantor is ordinarily only
liable if the creditor cannot collect from the principal debtor.
page-pff
Homeowner's insurance is a combination of the standard fire insurance policy and
comprehensive personal liability insurance.
There is often a conflict between the goal of making money for shareholders and the
goal of solving social problems through business.
The purpose of the first ten amendments to the Constitution was to enlarge the power of
the federal government.
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Under United States law, the legal owner (titleholder) of property is free to engage in
any use of the property that he or she may desire.
A bank's customer whose signature has been forged may be barred from holding the
bank liable if the customer's negligence substantially contributed to the making of the
forgery.
A de facto corporation is not accorded legal recognition due to some recognized defect
in its incorporation.
A unilateral mistake as to a fact does not affect the contract when the mistake is
unknown to the other contracting party.
page-pf11
Statutes often require that the attestation of witnesses be made in the presence of the
testator and in the presence of each other.
Generally, contracts are discharged by the performance of the terms of the contract.
Instruments are transferable, written, signed promises or orders to pay a specified sum
of money.
page-pf12
The legal concept of property includes rights in the property.
A constitution is a body of principles that establishes the structure of a government and
the relationship of that government to the people who are governed.
When an accountant fails to complete a contract, the accountant is still entitled to the
accountant's fee.
Howard bought goods from Williams. Howard sent Williams a draft covered by a letter
of credit issued by First National Bank. Is the bank required to investigate to determine
whether the goods sent by Williams conform to the contract?
page-pf13
Franchising is a form of licensing that now is very common in international business.

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