Shareholder approval is not required to make any changes in a corporation.
The violation of a statute that proximately causes an injury is termed as negligence per
se.
Premiums are based on an estimate of the number of parties within the pool who will
suffer the risks insured against.
If a checking account customer fails to report a series of forgeries or alterations by the
same wrongdoer on the same account within 30 days from receiving the monthly
statement of account, then the bank is discharged from liability on all similar forged or
altered checks after that date and prior to notification.
If an agent reveals confidential information of a principal to a third party, one of
principal’s courses of action may be to obtain an injunction against the third party.
Mary, Harold, Harvey, and William form an LLC (limited liability company) by
contributing $20,000, $50,000, $55,000, and $150,000, respectively. The LLC is
designated to be member-managed. When a decision is put to vote, Mary, Harvey, and
Harold vote “yes,” whereas William votes “no.” Which of the following is true in this
context?
A) William’s decision prevails as he has invested the maximum capital.
B) No conclusion can be derived as the vote is not unanimous.
C) Mary, Harvey, and Harold’s decision prevails due to simple majority.
D) The decision is put to vote among the employees of the company.
The ________ is the right of a seller or lessor to demand the return of goods from the
buyer or lessee under specified situations.
A) right to dispose of goods
B) right to recover damages
C) right to recover purchase price
D) right to reclaim goods
Kenneth purchased a car from his local dealership, Quartent Cars. However, since the
car was not available in the color that Kenneth favored, the sales contract stipulated that
Kenneth could immediately pick up the car of his preferred color from a nearby
warehouse. The warehouse was owned by Mr. Henderson. Kenneth received the
document of title for the car upon payment and presented it to Mr. Henderson a week
later. But Mr. Henderson informed Kenneth that the car was damaged during a fire at
the warehouse. If Mr. Henderson had refused the document of title provided by
Kenneth, who would have borne the risk of loss to the car?
A) The risk would have to be borne jointly by Quartent Cars and Kenneth.
B) The risk would have to be borne by Kenneth.
C) The risk would have to be borne by Quartent Cars.
D) The risk would have to be borne by Mr. Henderson.
The legal rights that an owner has to possess, use, and enjoy the property are known as
________.
A) future interests
B) estate in land
C) easement rights
D) estoppel by deed
The ________ is a bankruptcy rule that applies to a debtor who has a median family
income that exceeds the state’s median family income for families the same size as the
debtor’s family.
A) means test
B) median income test
C) Chapter 13 discharge
D) Chapter 13 plan of payment
What is cross-examination?
A) inspection of evidence by the trier of facts
B) prospective jurors being questioned by the judge or lawyers of each party
C) witnesses being questioned by the plaintiff’s attorney
D) witnesses being questioned by the defendant’s attorney
Which of the following statements is true of insurance?
A) It has to be paid after the risk has been encountered.
B) It can be obtained even if one has no insurable interest in the property being insured.
C) It is a means of transferring and distributing the risk of loss.
D) It cannot be modified once issued.
A ________ is an interest a creditor automatically obtains when he or she extends credit
to a consumer to purchase consumer goods.
A) purchase money security interest
B) cumulative security interest
C) future advance monetary interest
D) default interest
An ________ is an estate in which the owner has a present possessory interest in the
real property.
A) estate pour autre vie
B) freehold estate
C) future interest
D) easement
Which of the following powers allows administrative agencies to issue substantive
rules?
A) rule-making
B) executive power
C) judicial authority
D) licensing
When a creditor extends credit to a debtor and takes a security interest in some personal
property of the debtor, it is called a ________.
A) super-priority lien
B) collateral claim
C) collateral disposition
D) secured transaction