An agent who commits a crime is:
a. always liable.
b. only liable if acting in self-interest.
c. only liable if the act is done to advance the interest of the principal.
d. never liable when acting in the role of an agent .
The Sherman Act applies to:
a. buying activities.
b. selling activities.
c. production activities.
d. all of the above.
Modern decisions hold the principal liable for which actions of the agent?
a. Fraudulent acts
b. Misrepresentations
c. Both a. and b.
d. Neither a. nor b.
When ambiguous language exists:
a. words control figures if a conflict exists.
b. handwriting supersedes typewritten words or terms.
c. typewritten terms supersede preprinted terms.
d. all of the above.
After a corporate charter has been forfeited, the owners and officers of the dissolved
corporation are __________ shielded from personal liability by using the corporate
name when making contracts.
a. still
b. conditionally
c. not
d. retroactively
As a general rule, courts will __________ in recovering money or property transferred
under an illegal agreement.
a. assist a commercial buyer
b. assist a non-commercial buyer
c. assist an institutional buyer
d. not aid either party
An agreement to slander a third person would not be enforceable because slander is
a(n):
a. crime.
b. civil wrong.
c. infringement of privacy.
d. assault.
Federal environmental laws can be enforced through:
a. penalties.
b. criminal sanctions.
c. suits by private citizens.
d. all of the above.
Costs generally are awarded to the prevailing party in litigation. Those costs usually
include:
a. filing fees.
b. service-of-process fees.
c. deposition transcript costs.
d. all of the above.
When an anticipatory repudiation of a contract occurs, the aggrieved person’s option(s)
include:
a. doing nothing and waiting for performance per the contract.
b. immediately declaring a breach of contract.
c. considering the contract cancelled.
d. all of the above.
The “public comment” period for proposed administrative agency rules must be at least
__________ days.
a. 30
b. 60
c. 90
d. 120
A person cannot become a holder through a holder in due course unless that person
satisfies the requirements for holder in due course status.
Whenever a contract is intended to benefit a third person, this person is referred to as a
delegator.
Due diligence is the process by which the buyer of property conducts a thorough
investigation of the property and its uses to determine whether environmental or
nuisance problems exist.
Under the General Agreement on Tariffs and Trade (GATT), the principle of trade
without discrimination is embodied in the most favored nation clause.
All of the directors of the XYZ Corporation were present at a meeting called on a
Monday evening at 9 p.m. Meetings normally were held on Friday evenings at 6 p.m.
At the Monday meeting, a report was made indicating that an agent of the corporation
was having difficulties formalizing a contract in a foreign country. The report indicated
that if funds were made available to a local political figure, the contract the company
desired would be obtained. The directors unanimously voted to forward the necessary
funds for this operation to the agent. An action was later commenced against the
directors, alleging illegal activities. In response, the directors argue that: (1) no illegal
activity had occurred; (2) if an illegal activity did occur, it was not at a valid meeting of
the corporation and was therefore not an official action of the board; and (3) if they had
to legally defend themselves, they would seek reimbursement from the corporation.
Discuss the directors’ contentions.
The “American rule” states that the losing party in a lawsuit is responsible for all
attorney fees.