All of the following are characteristics of a corporation EXCEPT:
a. it has perpetual existence.
b. it is a legal entity of its own.
c. it is able to be sued and to sue.
d. it is usually managed by its owners.
James threatens to hit Kenneth in the head with a baseball bat unless Kenneth signs a
contract agreeing to pay James $400 for his saw. If, because of the threat, Kenneth signs
the contract:
a. this contract is voidable at Kenneth’s option.
b. James has committed physical duress against Kenneth.
c. this constitutes economic duress.
d. All of the above.
A contract in which both parties exchange promises is a:
a. voidable contract.
b. bilateral contract.
c. unilateral contract.
d. quasi contract.
The courts may grant a petition of involuntary dissolution if shareholders:
a. do not approve of fundamental changes of the board.
b. show that the corporation has not kept adequate records or filed annual reports.
c. did not receive their dividends.
d. show that corporate assets are being squandered.
An instrument is payable to order if it is payable:
a. to the order of an identified person.
b. to an identified person or order.
c. Both of the above.
d. None of the above.
NEPA requires that the EIS contain:
a. an analysis of the relationship between local short-term uses of the environment and
the maintenance and enhancement of long-term productivity.
b. reversible and retrievable commitments of resources involved.
c. only a brief outline of the adverse environmental effects of a proposed action.
d. All of the above.
Allen owns 500 of the 5000 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 percent.
d. None of the above.
David, a partner in the Speedy Delivery partnership, negligently drove his delivery
truck onto the curb during a rush-hour package delivery. Marlene was injured. Against
whom can Marlene collect?
a. Only David.
b. Speedy Delivery Partnership.
c. Any partner.
d. Both (b) and (c).
Nineteen-year-old Martin was raised in a good, Christian home and attended parochial
school through eighth grade. Martin is a good student and citizen who conforms to the
expectations of his church, family, and peers. He does so because he loves his family
and church, is loyal to them, and trusts them. Under Kohlberg’s schematic analysis,
Martin is most likely at what stage of moral development?
a. Pre-conventional.
b. Conventional.
c. Post-conventional.
d. Adult.
A __________ is a specialized form of promise to pay money given by a maker in
which the bank is the maker.
a. note
b. certificate of deposit
c. trade acceptance
d. cashier’s check
Which of the following is the most convincing evidence of a partnership arrangement?
a. Two or more persons are co-owners of property used in a business.
b. Two or more persons have a written agreement regarding a fundraiser for charity.
c. Two or more persons carry on a business for profit, but they have no formal
agreement.
d. Two person share a joint savings account in which they deposit money and share the
interest.
The antifraud provisions of the 1934 Act would prohibit which of the following?
a. Lying about the value of the firm’s assets to sell stock.
b. Disclosing that the firm has discovered oil on its property in order to sell stock.
c. Telling about the bad health of the CEO in a transaction to purchase stock.
d. Not disclosing the salaries of secretaries of a large firm whose stock is being sold.
In a classic study published in 1932, Adolf Berle and Gardner Means concluded that
great amounts of economic power had been:
a. widely dispersed among a large number of corporations. This trend has continued
steadily.
b. widely dispersed among a large number of corporations. This trend has declined
steadily.
c. concentrated in a relatively few corporations and shareholders had become far
removed from active participation in management. These trends have declined steadily.
d. concentrated in a relatively few corporations and shareholders had become far
removed from active participation in management. These trends have continued
steadily.
The CISG specifically excludes sales of which of the following?
a. Goods bought for personal, family, or household use.
b. Ships or aircraft.
c. Electricity.
d. All of the above.
If a debtor defaults on a credit contract, the creditor may:
a. impose a late charge.
b. garnish wages if there has been a court proceeding to enforce collection of a
judgment.
c. take possession of the property securing the debt and sell it.
d. All of the above.
Extinguishing a limited partnership involves:
a. dissolution.
b. winding up or liquidation.
c. termination.
d. All of the above.
The Consumer Product Safety Commission enforces the:
a. Federal Hazardous Substances Act.
b. Flammable Fabrics Act.
c. Refrigerator Safety Act.
d. All of the above.
The estate of a debtor includes wages earned after commencement of a Chapter 7
liquidation proceeding.
A disaffirmance must come either during a minor’s minority or within a reasonable time
after he reaches majority.
Under the Code, “goods” are defined as tangible personal property.
UCC Articles 2 and 2A have been amended to accommodate electronic commerce.
To establish trespass to land, a plaintiff must show interference with the right of
exclusive possession of the property.
A defamatory communication that is spoken or oral is designated as libel.
Identify the purpose of the U.S. Constitution as stated in its preamble.
The FLSA is not the federal minimum wage statute.
Intuitionism holds that rational persons possess inherent powers to assess the
correctness of actions.
If the debtor is in default and the secured party wants to repossess the collateral in order
to sell it, he must get a court order to do so.