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The delivery of personal property to a creditor as security for the payment of a debt is:
a. perfection.
b. a pledge.
c. attachment.
d. a general intangible.
Which of the following is not covered by the Government in the Sunshine Act?
a. The Securities and Exchange Commission
b. The Federal Trade Commission
c. The Food and Drug Administration
d. The Consumer Product Safety Commission
e. All federal agencies are covered by the requirements of the Government in the
Sunshine Act.
Allen owns 500 of the 5,000 shares outstanding of General Myopics. GM plans to issue
600 new shares. If Allen has preemptive rights, he may buy:
a. all 600 shares before anyone else.
b. 600 shares at the same price he paid for the other stock.
c. 6 shares at a discount of 10%.
d. None of these.
An ethical relativist looks to a central authority, such as the Bible, to guide her in ethical
decision making.
a. True
b. False
Which of the following is correct regarding the fiduciary duties in a limited
partnership?
a. The general partner has a fiduciary duty to the limited partners.
b. Judicial authority seems to suggest that the limited partner has no fiduciary duty to
the partnership.
c. The fiduciary duty of the general partner is extremely important to the interests of the
limited partners, because they have no ability to manage or control the partnership
business.
d. All of these are correct.
A woman claiming sex discrimination because she was passed over for a promotion by
her employer, would have her case reviewed under the test of the Equal Protection
Clause.
a. rational relationship
b. intermediate
c. strict scrutiny
d. basic
The Bill of Rights applies directly to the states.
a. True
b. False
All written contracts are considered to be formal contracts.
a. True
b. False
Clark and David are partners. Clark has contributed $25,000. David has contributed
only his time and skill. On dissolution, after all firm debts are paid, $20,000 in assets
remains. Which of the following is NOT correct?
a. The $20,000 remaining after payment is profit that will be equally divided.
b. The partnership has sustained a loss of $5,000.
c. David is not entitled to any part of the $20,000.
d. David has no obligation to reimburse Clark for any loss.
In reviewing an agency action, which of the following is included in the questions of
law a court will consider?
a. Whether the agency violated any constitutional provision.
b. Whether the agency acted contrary to the procedural requirements of the law.
c. Whether the agency exceeded its authority.
d. All of these would be considered.
Lessees of property and holders of security interests have insurable interests in property.
a. True
b. False
Fraudulent or intentional misrepresentation is covered under Section of the
Restatement.
a. 525
b. 537
c. 538(a)
d. None of these.
What is the name given to the process by which an administrative agency promulgates
statements designed to implement, interpret, or process law or policy?
a. Rulemaking
b. Lobbying
c. Adjudication
d. Enforcement
All administrative agency decisions must include a statement of the appropriate rule,
order, sanction, or relief.
a. True
b. False
How does Immanuel Kant's approach to ethical decision-making differ from that of an
ethical fundamentalist?
a. Kant's approach is premised on man's rationality and not on principles handed down
from above.
b. Kant's approach stresses liberty and not justice.
c. Kant's approach judges society in moral terms by how it distributes goods and
services.
d. Kant's approach assesses each separate act according to whether it maximizes
pleasure over pain.
Speedy Stop sells necessities to neighborhood shoppers until 1 a.m. every day.
Dairyland delivered its order of milk products as usual around 6 a.m. while Mary, the
shopkeeper, was busy with the early coffee and donut crowd. The Dairyland driver left
12 crates in the refrigerator compartment and went on to the rest of his route. At 7:30
a.m., Mary went into the freezer to shelve the milk products and discovered that all 12
crates contained buttermilk rather than the usual mix of containers of whole milk, 2%,
skim milk, and cream variety she had ordered. What is her obligation with regard to the
goods?
If a "liquidation preference" is provided, preferred stock usually has priority over
common stock.
a. True
b. False
As a general rule, partial assignments of contract rights are not enforceable.
a. True
b. False
In nearly every jurisdiction in the United States, courts of common law and courts of
equity have combined into a single court that administers both systems of law.
a. True
b. False
The Wall Street Reform and Consumer Protection Act of 2010:
a. removes the SEC's power to bring enforcement actions under the 1933 Act against
aiders and abettors.
b. amends the 1933 and 1934 Acts to allow recklessness as well as knowledge to satisfy
the mental state required for the SEC to bring aiding and abetting cases.
c. amends the 1933 and 1934 Acts to allow negligence to satisfy the mental state
required for the SEC to bring aiding and abetting cases.
d. sets national standards for securities class action lawsuits involving nationally traded
securities.
The officers determine the capital structure and financial policy of the corporation.
a. True
b. False
If First Bank receives a check for collection on Friday at 4 p.m., it must present the
check to the payor bank by midnight Saturday.
a. True
b. False
A tailor agrees to sew a suit for Bryan, who promises in return to pay $500 for the suit
if he is satisfied with it. The tailor completes the suit, which fits Bryan perfectly.
Nevertheless, he says that he is not satisfied and refuses to accept or pay for it. Bryan is
honest in his dissatisfaction, but he is unreasonable. In this case:
a. Bryan must pay for the suit even if he is dissatisfied.
b. this is an illusory contract, because only the tailor is bound.
c. Bryan's approval is an objective standard.
d. the tailor has no recourse, because he agreed to the subjective standard.
According to the Restatement, manifesting an intention to act or an intention to refrain
from acting in a specified manner is considered to be:
a. an implied in fact contract.
b. an express contract.
c. a promise.
d. a quasi contract.
Indispensable paper includes:
a. documents of title.
b. accounts receivable for a business.
c. patents.
d. a contract evidencing literary rights.
The owner of the servient parcel is generally responsible for maintaining the easement
and keeping it in repair.
a. True
b. False
Steve purchases a four-wheel drive truck from Belk Auto Sales. Steve is only 17 years
of age. He wrecks the vehicle and attempts to disaffirm the contract and have Belk
repay him all that he has paid. In the majority of jurisdictions, Steve:
a. would be out of luck.
b. must have the truck repaired.
c. will receive his money less the depreciation in value of the vehicle.
d. may simply return the vehicle and get his money.
A shareholder's obligation to repay an illegally declared dividend depends on:
a. the shareholder's good or bad faith in accepting the dividend.
b. the solvency or insolvency of the corporation and, in some instances, special
statutory provisions.
c. the shareholder's knowledge of the facts.
d. All of these.
An agent is personally liable for the torts he commits while in the scope of his
employment.
a. True
b. False
A doctrine allowing a mortgagor who has defaulted to regain her property prior to its
sale by paying the debt in full with interest is known as:
a. rehabilitation.
b. the covenant of quiet title.
c. foreclosure.
d. the right of redemption.
An easement may be created by:
a. prescription.
b. implied reservation.
c. implied grant.
d. all of these ways.
A few states provide by statute that the parties need to provide no new consideration
when modifying any contract.
a. True
b. False
