1) if there is no time specified in contract by the parties, then it is presumed that
performance shall be completed whenever possible.
2) separation of power issues seldom arise with regard to administrative agencies
because agencies owe their existence to the absolute constitutional right of the
legislative branch to delegate its power as it sees fit.
3) the activities of a corporation and its wholly owned subsidiary will not constitute the
concerted action necessary for a violation of section 1 of the sherman act.
4) although an administrative agencys interpretive rules do not have the force of law, its
legislative rules do.
5) a holder of a check or draft who wants to get payment on it should first present the
check or draft to the drawer.
6) under the pennsylvania system, the general contractors failure to perform his contract
or his abandonment of the work has a direct effect on the lien rights of subcontractors
and materialmen.
7) the securities and exchange commission is an example of an independent agency.
8) once a party properly delegates a duty to the delegatee, that party is relieved of any
obligation to perform the duty.
9) cisg applies only to sale of goods and commercial parties.
10) the federal reserve operates a domestic wire transfer system known as fedwire.
11) special duties that run from possessors of real estate to those who enter the property
are called premises liability cases.
12) profit maximization compels a decision maker to consider stakeholders other than
the corporation and its shareholders.
13) a promise to refrain from smoking cannot be legal consideration because it does not
convey anything of economic value to the other party.
14) which of the following is true in case of death or incompetence of a customer?
a.a bank cannot pay checks of a deceased customer until it has notice of the customers
death.
b.if a bank knows of a customers death, it can pay checks written by the customer prior
to his/her death, for a period of 30 days.
c.the deceased persons heirs or other persons claiming an interest in the account can
order the bank to stop payment.
d.a bank can declare checks signed by the customer while he/she was alive, as null and
void.
15) helen and casey are partners. helen contributes capital of $20,000 to the partnership
and casey contributes $10,000. they agree that helen will receive 60 percent of all
profits and that casey will receive 40 percent. they have not decided how to share
losses. the partnership makes a loss of $7,000. what is helens share of the loss?
a.$2,800
b.$4,200
c.$3,500
d.$5,500
16) one of the differences between fraud and misrepresentation is that:
a.there is a requirement of materiality in fraud cases.
b.in fraud cases, the injured party has the option of suing for monetary damages.
c.misrepresentation requires scienter.
d.a false statement of opinion cannot be the basis for a claim of misrepresentation.
17) john died without leaving a will. he left a wife and two children. he lived in boise,
idaho, and he owned a ski condo in aspen, colorado. how will johns ski condo be
distributed upon his death?
a.the law of intestate succession of idaho will be followed, because idaho is the state
where john was domiciled at the time of his death.
b.the law of intestate succession of colorado will be followed, because colorado is
where johns condo is located.
c.the federal law of intestate succession will be followed, because johns property is
located in more than one state.
d.the property will escheat to the state of idaho.
18) which of the following is a wrongful dissociation?
a.a partner retires at age 70 when the partnership agreement allows partners to retire at
age 60
b.a partner assigns his partnership assets to a personal creditor
c.a judicial dissociation due to a partners persistent and substantial use of partnership
property for his own benefit
d.death of a partner
19) which of the following causes dissociation?
a.a partners transfer of his transferable partnership interest
b.a creditors obtaining a charging order
c.a partners wrongful conduct materially affecting the partnership business
d.the addition of a new partner to a partnership
20) which of the following is true of apparent authority?
a.it arises when an agent falsely claims to be acting under the authority of a principal.
b.it requires express authorization, in words or writing, from the principal.
c.it arises when the principal leads a third party to believe that an agent is authorized.
d.it requires that the agent receive consideration from the principal, i.e., the agent is not
a gratuitous agent.
21) under the model business corporation act, a corporations existence begins:
a.only after the promoters substantially comply with each of the mandatory conditions
precedent to incorporation and hold an organization meeting.
b.only after the articles of incorporation are filed with the secretary of state.
c.when the secretary of state returns to the corporation a copy of the articles stamped
filed.
d.when the shareholders approve of all the changes in the articles.
22) if the seller has justifiably withheld delivery of the goods because of the buyers
breach, the buyer may:
a.not recover any money nor goods he has delivered to the seller.
b.not recover the goods.
c.recover only goods which he has not delivered.
d.recover any money or goods he has delivered to the seller over and above the agreed
amount of liquidated damages.
23) with respect to property insurance, the insurable interest requirement:
a.need only be satisfied at the time the policy is issued.
b.must be satisfied both at the time the policy is issued and at the time of the loss.
c.will be satisfied only if the insured owns the property in fee simple absolute.
d.will be satisfied by an insured who possesses a leasehold interest in the property.