An S corporation must pay federal income tax at the corporate level.
A decree of judicial dissolution is granted to a partner whenever it is not reasonably
practical to carry on the business in conformity with the limited partnership agreement.
Implied warranties are made when a negotiable instrument is originally issued.
An operating agreement can be amended orally.
Manufacturers and others in the chain of distribution are not strictly liable for failure to
provide adequate instructions on assembly and use of a product.
Corporations and businesses can seek protection under privilege against
self-incrimination.
A contract is bilateral contractif the offeror’s promise is answered with the offeree’s
promise of acceptance.
States are allowed to enact minimum wage laws that set minimum wages higher than
the federal level.
A reaffirmation agreement is an agreement whereby a creditor agrees to discharge the
debtor of certain debts that may be included in the bankruptcy.
A writ of ________ is a postjudgment court order that permits the seizure of a debtor’s
property that is in the debtor’s possession.
A) execution
B) garnishment
C) exigent
D) attachment
Building codes specify the ________.
A) policies on the implied warranty of habitability for residential leases
B) rules on proper delivery of possession to the tenant
C) standards for property owners to maintain and repair leased premises
D) laws regulating the extent to which a landlord can interfere with a tenant’s right to
quiet enjoyment
Which of the following best describes a wildcat strike?
A) Union members occupy the employer’s premises while striking.
B) Union members strike part of the day or workweek and work the other part.
C) Individual union members go on strike without proper union authorization.
D) The union declares indefinite cessation of work.
________ refers to a defect that occurs when a manufacturer does not place information
about the dangers of using a product on its packaging, causing injury if the dangers are
unknown.
A) Failure to warn
B) Defect in manufacture
C) Failure to provide adequate instructions
D) Defect in packaging
In which of the following cases can the name of a limited partnership include the
surname of a limited partner?
A) the limited partner has stayed longer than all other partners
B) the name is also the surname of a general partner
C) the limited partner has invested more than the general partner
D) the name is unanimously voted for by other limited partners
A due diligence defense cannot be asserted by an accountant against the civil liabilities
of Section 11(a) of the Securities Act of 1933.
Which of the following is true of an independent contractor’s liability?
A) The agent is liable for torts committed by an independent contractor.
B) The contractor is personally liable for all his or her torts.
C) The principal is liable for the independent contractor’s torts.
D) Both the principal and the independent contractor are liable for the contractor’s torts.
A(n) ________ indorsement includes the notation “without recourse” or similar
language that disclaims liability of the indorser.
A) qualified
B) unqualified
C) promissory
D) competent
Which of the following is true of Chapter 7 liquidation?
A) The debtor is not permitted to keep any of his or her assets.
B) The 2005 bankruptcy act has eased the process of applying for a Chapter 7
bankruptcy.
C) The debtor’s future income cannot be reached to pay the discharged debt.
D) Petitioning for Chapter 7 liquidation does not permit the debtor to petition for
bankruptcy under any other chapter.
General partnerships that exist for more than ________ must have their general
partnership agreement in writing under the Statute of Frauds in order to deal in real
estate.
A) six months
B) 180 days
C) five years
D) one year
A right that allows the mortgagor to redeem real property after default and before
foreclosure is known as ________.
A) garnishment
B) right of redemption
C) lien release
D) power of sale
Damages that are generally equal to the difference between the value of the goods as
warranted and the actual value of the goods accepted at the time and place of
acceptance are known as ________.
A) punitive damages
B) incidental damages
C) compensatory damages
D) future damages
In the U.S. Supreme Court, if all the justices voting agree as to the outcome and
reasoning used to decide a case, it is a ________ decision.
A) tie
B) plurality
C) majority
D) unanimous
How does the doctrine of stare decisis help in creating stability in a legal system?
A) by ensuring that witnesses of a case will be protected by the state
B) by ensuring that the legal rights of a defendant are preserved
C) by allowing the use of precedence in deciding future cases
D) by allowing the use of writs
Which of the following defines a remainder as a form of future interest?
A) It is a right of possession that returns to the grantor after the expiration of a limited
or contingent estate.
B) It is a right of possession that returns to a third party upon the expiration of a limited
or contingent estate.
C) It is a form of concurrent possession of a multiple-dwelling building in which a
corporation owns the building and the residents own shares in the corporation.
D) It is a form of concurrent possession that includes the right of survivorship.
Which of the following is a provision of Article 4 of the Uniform Commercial Code?
A) establishing the requirements for negotiable instruments, such as checks
B) establishing the rules and principles that regulate bank deposit procedures for
checking accounts offered by commercial banks
C) stipulating the rules that regulate the creation and collection of and liability for wire
transfers
D) reviewing and revising guidelines for ownership of securities by investors
________ are courts that hear cases of a general nature that are not within the
jurisdiction of limited-jurisdiction trial courts.
A) Courts of record
B) Intermediate appellate courts
C) Inferior trial courts
D) State supreme courts
Sinbad Cola, a soft drink manufacturer, recently opened a plant in Buron. The wastages
from the plant were dumped in the Buron Sea, situated a mile away from the plant.
Dumping of wastes in the sea resulted in water pollution, which negatively affected the
Buron fishing business, and also resulted in groundwater contamination. Sinbad Cola
compensated by bringing contamination levels down with additional filters and paying
damages to the local fishermen. Which theory of business social responsibility did
Sinbad Cola meet when they compensated for their harmful wastage disposal methods?
A) moral minimum
B) stakeholder interest
C) corporate citizenship
D) maximizing profits
Which of the following is true of a member-managed LLC (limited liability company)?
A) Each member has equal rights in the management of the business of the LLC.
B) The member with the highest capital contribution becomes the de facto manager of
the LLC.
C) Any matter relating to the business of the LLC is decided by a unanimous vote of the
members.
D) Shareholders are not allowed to decide matters relating to the business of the LLC.
Which of the following is the implied default title conveyed in a sale of real estate?
A) life estate
B) servient estate
C) fee simple absolute
D) fee simple defeasible