The Revised Act permits the board of directors to adopt certain charter amendments
without shareholder action, unless the articles of incorporation provide otherwise. These
amendments would include:
a. extending the duration of a corporation if it was incorporated when limited duration
was required by law.
b. changing each issued and unissued authorized share of an outstanding class into a
greater number of whole shares if the corporation has only one class of shares.
c. making minor name changes.
d. All of the above.
Diane, who is seventeen years old, purchased an auto from Elvira on credit. Florence
agreed to act as surety and signed a written surety agreement. At the time of purchase,
Diane specifically asked Elvira about the condition of the car’s motor and was told that
it had just been replaced with a new one and was in fine condition. This was blatantly
untrue, because Elvira knew it was in terrible shape and would only last a short time.
The auto has now stopped running and Diane refuses to make any more payments.
Elvira is now proceeding against Diane and Florence. What defenses, if any, are
available to (a) Diane, and (b) Florence?
Jack is a guest at Harry’s home. While there, he goes into the library and picks up a
music box that is part of Harry’s collection. Jack overwinds the stem and it breaks.
Hoping Harry won’t notice, Jack takes the music box for repair to a jeweler who sells
similar ones. The jeweler fixes it, but forgets to tag it and an unsuspecting clerk sells it
to Robert. Jack is frantic. Can Harry get the music box from Robert?
a. No, the jeweler gives good title to a bona fide purchaser for value.
b. No, the jeweler was not a merchant with regard to music boxes.
c. Yes, Robert was not a buyer in the ordinary course of business.
d. Yes, Robert has assumed only Jack’s title, which is no title at all.
In 1976, RCRA was enacted by Congress to:
a. provide a comprehensive scheme of treatment for hazardous solid waste.
b. establish a manifest system to be used by generators.
c. give states the primary responsibility for hazardous waste.
d. Both (a) and (b).
The Truth-in-Lending Act:
a. applies only to such lenders as banks and savings and loans.
b. prohibits inclusion of inaccurate or specified obsolete information in consumer
reports.
c. is regulated by the Federal Reserve Board under Regulation Z.
d. allows a buyer who is financing his home with a first mortgage to rescind that
transaction within three days.
United States trustees:
a. are government officials appointed by the U.S. Attorney General.
b. have administrative responsibilities in bankruptcy cases in almost all of the districts.
c. select bankruptcy trustees.
d. All of these are correct.
Respondeat superior:
a. imposes vicarious liability on the principal.
b. makes a principal liable for the acts of independent contractors.
c. makes a principal liable for the acts of employees committed within the scope of
employment.
d. Both (a) and (c).
Which of the following involves an invalid assignment that a court would NOT
enforce?
a. An assignment of a savings account accompanied by the delivery of the passbook.
b. An assignment lacking consideration.
c. An assignment of an automobile liability insurance policy accompanied by the
delivery of the policy.
d. An assignment in writing signed by the assignor and delivered to the assignee.
Automatic perfection means that:
a. no financing statement need be filed.
b. no agreement need be made between the debtor and the secured party.
c. no value need be advanced.
d. All of the above.
a. In general, what is considered a fundamental change in a corporation? Give three
examples of what would be considered a fundamental change.
b. Brian is a minority shareholder in Gryath, Inc. He opposes a fundamental change that
is approved and implemented. What rights does he have?
The 1999 Amendments to the Revised Act eliminate the appraisal remedy for:
a. an amendment abolishing a preferential right of the shares.
b. an amendment altering a preemptive right.
c. virtually all charter amendments.
d. no charter amendments.
A durable power of attorney is:
a. a written instrument that expresses the principal’s intention that the agent’s authority
will become effective upon the principal’s subsequent incapacity.
b. a written instrument that expresses the principal’s intention that the agent’s authority
will not be affected by the principal’s subsequent incapacity.
c. an irrevocable written or oral expression that an agent will have authority to make
contracts for and on behalf of the principal.
d. Both (a) and (b).
Which of the following are the two basic elements to consideration?
a. Bargained-for exchange and legal sufficiency.
b. Legal detriment and legal benefit.
c. Legal sufficiency and legal adequacy.
d. Promise and forbearance.
Which of the following is true regarding property distribution upon a person’s death
intestate?
a. At common law, property lineally ascended to parents if there was no surviving
spouse and there were no children.
b. Today, in all states, if there is a surviving spouse, he or she gets the entire estate.
c. Rules of descent vary widely from state to state.
d. Both (a) and (c).
The Electronic Signatures in Global and National Commerce Act validates:
a. contracts relating to transactions affecting interstate commerce formed by electronic
agents as long as the action of the electronic agent is legally attributable to the person to
be bound.
b. electronic signatures on codicils and testamentary trusts.
c. electronic signatures on divorces and other matters of family law.
d. electronic signatures on contracts governed by the UCC, other than sales and leases
of goods.
Article 2 of the Uniform Commercial Code does not apply to the sale of services.
The Truth-in-Lending Act establishes maximum amounts of interest that can be charged
for credit cards.
The Foreign Corrupt Practices Act makes it illegal for an American company to offer or
pay money to a foreign official to influence a decision of that official even if the offer is
not accepted.
Liability for the negligent conduct of a defendant requires not only that the conduct in
fact caused injury to the plaintiff but also that it was the proximate cause of the injury.
A corporation owned by one person is treated under the law as separate from that
person.
The Third Restatement of Torts has abandoned the defense of implied voluntary
assumption of risk.