1) Securities generally do not include any documents evidencing corporate ownership
or debt.
2) There are age requirements for the witnesses who attest to a will.
3) Procedural law consists of all laws that outline the methods of enforcing rights.
4) Only the federal government may restrict emissions from motor vehicles.
5) A publicly held corporation is any corporation whose shares are publicly traded in a
securities market.
6) The state can suspend the entity’s corporate status until the taxes are paid or even
dissolve the corporation for failing to pay taxes.
7) Each director can access the corporation’s facilities and premises.
8) In a contract for a sale of goods, the usual measure of compensatory damages is the
difference between the contract price and the market price.
9) A testamentary trust is created by will and comes into existence on the grantor’s
death.
10) One who dies after having made a valid will is said to have died intestate.
11) For a party to take by adverse possession, the party’s possession must be peaceable,
and not hostile or adverse.
12) Company codes are not law.
13) Coco is considering forms of business organization for her concessions
business-Coco’s Cakes. Most states require that a limited liability company have
a.no minimum number of members.
b.at least one member.
c.at least two members.
d.at least three members, including one general partner.
14) Fact Pattern 9-B2
CallTalk Corporation, a smartphone and phone-time seller, chooses to use and register
“calltalk” as its second-level domain. Later, CallTalk ‘s less successful competitor,
CellTalk Company, chooses to use and register “caltalk” (an intentional misspelling of
“calltalk”) as its second-level domain. Still later, Call&Talk, Inc., uses the domain name
“callltalk” (also a deliberate misspelling of “calltalk”) without CallTalk ‘s authorization,
to sell pornographic phone conversations.
Refer to Fact Pattern 9-B2. Call&Talk ‘s use of the domain name “callltalk,” without
CallTalk ‘s authorization, to sell pornographic phone conversations, is
a.goodwill.
b.fair use.
c.a license.
d.trademark dilution.
15) Fifi, a clerk at a Games n’ Gamers store, takes a video game player and a selection
of new games from the store without permission. Fifi is liable for
a.appropriation.
b.conversion.
c.malicious prosecution.
d.wrongful interference with a business relationship.
16) On behalf of Bobble Head Manufacturing Company, Carmela types her name at the
bottom of an e-mail purchase order and submits the order to Designer Parts Company.
Under the UETA, Carmela’s typed name qualifies as
a.a ‘signature.”
b.a statement of future intent.
c.a partnering agreement.
d.a preliminary negotiation.
17) During the trial phase of Sof’ Drink Soda Corporation’s suit against TimeOut
Convenience Stores, Inc., their attorneys engage in voir dire. This is
a.an assessment of the arguments on the issues.
b.the determination of the issues to be argued.
c.the testimony by a party to the lawsuit or by any witness, recorded by an authorized
court official.
d.the selection of jurors.
18) Dynamic Oil Corporation, a U.S. firm, owns property in Ecuador. When the
government of Ecuador seizes the property, Dynamic Oil asks a U.S. court to order the
property’s return. The court rules that Ecuador is exempt from the court’s jurisdiction.
This is
a.a travesty of justice.
b.the act of state doctrine.
c.the doctrine of sovereign immunity.
d.the principle of comity.
19) Much of American law is based on
a.the English legal system.
b.the French legal system.
c.Greek civil law.
d.ancient Chinese law.
20) Lowell runs Medical Debt Collection Agency. He collects debts by misrepresenting
the facts and pretending to be licensed to perform various occupations. Lowell’s
conduct most likely warrants
a.an admonition for unethical behavior but no other sanctions.
b.an injunction plus other sanctions.
c.no sanctions but no praise.
d.praise for the aggressive approach to collecting debts.
21) Congress enacts a statute to outlaw a specific type of anticompetitive business
agreement. Like other laws that regulate economic competition, this law is referred to
as
a.a federal trade commission act.
b.an antitrust law.
c.an interstate commerce act.
d.a suppressive restraint on trade.
22) To resolve a dispute in nonbinding arbitration, Alyson in Baltimore and Chuck in
Denver utilize E-Resolve, an online dispute resolution (ODR) service. This limits these
parties€ recourse to the courts
a.not at all.
b.until the ODR service has issued a decision.
c.with respect to any dispute arising between them.
d.with respect to this dispute only.
23) Start Up Investors, LLC, is a limited liability company without a written operating
agreement. Among the members, a dispute arises concerning the division of profits.
Under most LLC statutes, the profits will be
a.distributed according to the members’ proportionate shares of ownership in the firm.
b.divided equally among the members.
c.forfeited to the state.
d.reinvested in the business until the dispute is resolved.
24) Robin claims that her contract with Stroud for tennis lessons is voidable. If their
contract is avoided,
a.both parties are released from it.
b.both parties must fully perform their obligations under it.
c.both parties will agree to a wholly different contract.
d.a wholly different contract is imposed “as if” the parties had agreed.
25) Mallory’s sister Naomi gives Mallory a leather working kit for Christmas. Mallory
uses the kit to make a saddle. Mallory’s acquisition of the saddle is by
a.gift.
b.accession.
c.confusion.
d.production.
26) Beatrix defaults on a debt to Credit Loan Corporation (CLC). As a creditor, CLC
can place liens on all of Beatrix’s property except
a.motor vehicles used to commute to work.
b.stock in various corporations.
c.items that the debtor selects.
d.vacant commercial property.
27) 5.Street Bikes, Inc., makes and sells a bicycle to Theo. Street Bikes fails to exercise
“due care” to make the bicycle safe, however, and Theo is injured as a result. Street
Bikes is most likely liable for
a.market-share liability.
b.none of the choices.
c.negligence.
d.product misuse.
28) Kim is asked to serve as a witness to Lian’s will. To qualify, Kim must be
a.a collateral heir.
b.a lineal descendant.
c.at least eighteen years old.
d.mentally competent.
29) To be negotiable, an instrument must be payable in money.
30) The Bill of Rights protects individuals, but not business entities, against various
types of interference by the government.
31) Identification takes place when specific goods are designated as the subject mater of
a sales or lease contract.
32) Under the UCC, an offeror must be notified within a reasonable time that the
offeree has accepted.
33) Rini, the owner of Simply Sushi, is a sole proprietor. What are the chief
characteristics, advantages, and disadvantages of this form of business organization?
Riniwants to obtain additional capital to expand Simply Sushi, but she does not want to
lose control of the firm. As a sole proprietor, what is her best option to attain these
goals?
34) In the distribution of the debtor’s estate, secured creditors take priority over
unsecured creditors.
35) When receiving a stale check for payment, a bank has no option but to pay the
check.
36) When a debtor has not assets, creditors are notified of the debtor’s petition for
bankruptcy but are instructed not to file a claim.
37) A party seeking court review of an administrative action must first exhaust all of his
or her administrative remedies before seeking court review.
38) Essentially, adequacy of consideration concerns the fairness of the bargain.