1) a promissory note is a credit instrument.
2) any notice given to a partner is deemed to be a notice given to the partnership firm.
3) if a partnership leases a building that belongs to one of the partners, the property is
said to be owned by the partnership.
4) if the goods delivered by the seller do not conform to the contract, the buyer need not
pay for the units accepted at the price per unit provided in the contract.
5) order paper that is indorsed in blank becomes bearer paper.
6) an assignee can notify the obligor of the assignment at any point of time that he/she
desires.
7) a donee beneficiary of a contract can recover under that contract.
8) when congress created the u.s. sentencing commission and charged it with creating
sentencing guidelines, congress sought (among other things) to decrease the discretion
of judges in making sentencing decisions.
9) which of the following items of a debtors property are exempt from sale in a
bankruptcy proceeding under the federal set of exemptions?
a.life insurance contracts valued at $10,000.
b.real or personal property valued at $50,000.
c.jewelry whose value exceeds $10,000.
d.individual retirement account exceeding $1 million.
10) if repurchased shares are neither canceled nor restored to unissued status, they are
called _____ shares.
a.preferred
b.treasury
c.golden
d.outstanding
11) a fact is considered to be material in a misrepresentation case when:
a.the misrepresentation is considered to be innocent.
b.it plays an important role in inducing a person to enter into a contract.
c.it is relied upon by a person, even though it could not possibly be true.
d.it is similar to an opinion or promise about some future happening.
12) hagus was a partner at ace-star general partnership. the partnership agreement stated
that all partners would continue as partners until the year 2010. however, in 2006, hagus
was offered another business opportunity that was more attractive than remaining a
partner with ace-star. following this, he dissociated himself from ace-star. which of the
following is true with regard to this situation?
a.hagus dissolved the ace-star general partnership.
b.hagus used his power to dissociate to withdraw from the partnership.
c.hagus eliminated his liability to the partnership obligations.
d.hagus used his right to dissociate to withdraw from the partnership.
13) joe smith has just died. three months ago, when he knew that his death was
impending, joe established a spendthrift trust for the protection of his 16-year old son
bobby. the trust property consists mainly of $500,000 in investment securities. the
trustee is jack purdy, a cpa. the trust agreement does not discuss the trusts termination.
answer the following questions regarding the trust. can jack invest trust assets
differently than joe invested them? for example, can he sell trust securities and buy
others? why or why not? must jack hire an investment professional to make trust
investments?
14) the owners of an llc are called:
a.natural persons.
b.members.
c.partners.
d.managers.
15) joe writes a check payable to advanced autos. the check is drawn on his checking
account with the progressive bank. the drawee on this check is:
a.joe.
b.progressive bank.
c.advanced autos.
d.the federal reserve.
16) in general, which of the following statements is correct with respect to
unemployment compensation?
a.an employee who voluntarily quits work without a reasonable cause is entitled to
unemployment compensation.
b.an individual who has been discharged from employment because of work-connected
misconduct is ineligible for unemployment compensation.
c.the maximum period during which unemployment compensation may be collected is
uniform throughout the united states.
d.the maximum amount of unemployment compensation paid by a state is determined
by federal law.
17) roger and erick make a bet concerning whether a certain rich citizen will die within
the next year. neither party has any economic interest in this persons fate, except for
that created by the bet. this agreement is:
a.unenforceable if the statutes prohibit wagering agreements.
b.unenforceable because it tends toward the commission of a crime.
c.unconscionable because it contemplates the destruction of life.
d.a valid and enforceable risk-allocation agreement.
state legislatures occasionally enact statutes that declare certain types of agreements
unenforceable, void, or voidable.
18) when a court applies the exclusionary rule in a criminal case, it means that:
a.the case will be dismissed.
b.the defendant will be convicted.
c.the evidence will not be admitted at trial.
d.an arraignment will not take place.
19) a retailer of consumer goods who relies on attachment of a security interest to
perfect it does not prevail over a bona fide purchaser:
a.who has knowledge of the security interest.
b.who gives value for the goods.
c.who buys goods for commercial use.
d.who resells the good in the absence of a financing statement.