1) chapter 13 bankruptcy petitions may be either voluntary or involuntary.
2) mei issues purchase order to june for goods which costs $ 25,000. june agrees to
provide the same but she doesn’t sign the purchase order. mei can file a suit for the
breach of contract.
3) unless state law says otherwise, a bankrupt party may choose either the states
exemptions or the federal exemptions when deciding which property to exempt from
bankruptcy.
4) a statement in an advertisement can sometimes be considered an express warranty.
5) in order to facilitate the operation of the board of directors, many tasks and decisions
are delegated to a committee of the board.
6) under the theory that alcohol and drug use should not be rewarded, today most courts
say that contracts made by intoxicated people are perfectly binding, no matter how
severe the intoxication.
7) james owns great expectations, a trendy restaurant in manhattan. he enters into a
contract with mary, who makes and sells pastries. the contract states that mary will
supply all of great expectations needs for pastries for the next year. is this contract
enforceable?
a.yes, because this is a requirements contract.
b.yes, but only if james buys all of the pastries produced by mary in the next year.
c.no, because the promise fails to specify the quantity of goods to be purchased.
d.no, because james might not need any pastries in the next year.
8) which of the following is true of the code’s rules on title to goods?
a.buyers may reject the goods and yet keep title to them.
b.sellers are less important title holders to the goods in a contract.
c.parties cannot use a negotiable document of title for professional carriers.
d.title passes to a buyer only when the seller performs his duties completely.
9) in determining whether an offeree accepted an offer, the court is looking for the same
_____ on the part of the offeree that it found on the part of the offeror.
a.present intent to contract
b.inquiry regarding terms
c.subjective standard
d.silent acceptance
10) for _____, cost justification is the primary statutory defense to liability under
section 2(a) of the robinson-patman act.
a.functional discounts
b.accumulation pricing
c.quantity discounts
d.predatory pricing
11) which of the following is true about the sellers right to reclaim goods from an
insolvent buyer?
a.this right is superior to the rights of a good faith purchaser for value of the goods.
b.the seller must make a demand for the goods within ten days of their receipt by the
buyer.
c.the seller must physically repossess the goods within ten days of their receipt by the
buyer.
d.the buyer must have misrepresented his solvency to the seller in writing within three
months before delivery of the goods.
12) the 2005 revisions of the bankruptcy code makes it the responsibility of the _____
to determine that a pleading of insolvency is well grounded in fact and is either
warranted by existing law or is based on a good faith argument for extending existing
law.
a.attorney
b.debtor
c.creditor
d.court
13) commissioners or board members of which of the following can be removed only
for cause?
a.the occupational safety and health administration
b.the food and drug administration
c.the internal revenue service
d.the interstate commerce commission
14) which of the following is true regarding reorganizations under chapter 11?
a.only corporations are eligible for chapter 11.
b.chapter 11 proceedings are voluntary only.
c.no trustee can be appointed.
d.the court must confirm any reorganization plan approved by the creditors.
15) bob is a merchant in new york and betty is a merchant in california. bob wants to do
business with betty but he is concerned that if a lawsuit should result from their
transaction, he might have to travel to california and hire a california litigation lawyer
to litigate the dispute. what type of clause should bob try to include in his contract with
betty that will probably assure him that if litigation ensues, it will take place in new
york?
a.confession of judgment clause
b.forum selection clause
c.choice of law clause
d.substantive clause
16) a check becomes overdue:
a.30 days after its date.
b.60 days after its date.
c.90 days after its date.
d.after a reasonable period of time, in the light of trade practice.
17) which of the following factors is most likely to distinguish employees from
independent contractors?
a.whether or not consideration is given by the principal for the agents performance
b.the principals right to control the manner and means of the agents performance
c.whether the agent has authority to bind the principal by his actions
d.the agents personal liability for illegal actions taken on behalf of the principal
18) which of the following statements about vehicle emission standards under the clean
air act is accurate?
a.individual owners need to get their vehicles certified by the epa for emission
standards.
b.manufacturers are required to warrant that certified vehicles will always meet
emission standards.
c.epa can order manufacturers to recall and repair vehicles that do not meet emission
standards.
d.epa performs emission tests on all the vehicles it certifies for emission standards.
19) consideration can be a(n) _____ in the case of a unilateral contract.
a.security
b.guarantee
c.act
d.promise
20) martin nowak, an accountant, entered into a written contract with jane gibson to
perform certain tax services for jane. shortly thereafter, jane was assessed additional
taxes and she wanted to appeal the assessment. jane was required to appeal immediately
and the workpapers held by martin were necessary to appeal. martin refused to furnish
jane with the workpapers unless he was paid a substantially higher fee than was set
forth in the contract. jane reluctantly agreed in order to meet the filing deadline. the
contract as revised is:
a.voidable at janes option based on undue influence.
b.voidable at janes option based on duress.
c.void on the ground of undue influence.
d.void on the ground of duress.
21) _____ analysis of behavior challenged under section 1 of the sherman act is thought
to provide reliable guidance to business.
a.quick-look
b.rule of reason
c.secondary
d.per se
22) a(n) _____ clause is a provision in a contract that purports to relieve one of the
parties from tort liability.
a.exculpatory
b.implied-in-fact
c.quasi
d.expressed
23) as per rupa, if a nonwrongfully dissociated partner demands payment from the
partnership, he should be paid:
a.within 90 days from the date of demand.
b.within 120 days from the date of demand.
c.within no such specified period.
d.within such time as per the terms and conditions of the partnership.
24) who amongst the following is an expert under section 11 of the securities act of
1933?
a.a consultant who is an independent director of a company making a public
distribution of securities.
b.an auditor who issues an opinion regarding financial statements of a company making
a public distribution of securities.
c.an accountant in the accounts division of a publicly traded company which is issuing
new securities to the public.
d.an underwriter who is involved in issuance of new securities to the public by a
publicly traded company.
25) the ucc states that a properly dispatched acceptance sent by a reasonable means of
communication within a reasonable time is effective on dispatch. what does the ucc
mean by reasonable here?
26) joe goes into bankruptcy under chapter 7 and in due course all of his debts are
discharged thereby. after the discharge is granted, joe signs an agreement promising to
repay one of those discharged debts. joes attorney certifies that joe is able to pay the
debt. is joe bound to pay this debt?
27) jereboah company is a nonpublic company that wants to sell $2.7 million of
preferred shares under rule 506 of regulation d of the securities act of 1933. jereboah
plans to sell to 42 investors, including 10 mutual funds. the other 32 investors are
individual investors with various levels of experience in making securities investment
decisions. jereboah also hopes to attract additional investors using an advertisement in
the wall street journal. may jereboah use rule 506? assuming it can, what disclosure
must jereboah make to the investors?
28) soundco, inc., a leading manufacturer of stereo equipment, sells equipment to both
wholesalers and retailers. soundco regularly charges wholesalers less than it charges
retailers for the same equipment. contending that this pricing practice violated the
robinson-patman act, various retailers have sued soundco. what should soundco argue
in an effort to avoid liability?
29) a person distributes unsolicited e-mails to large numbers of employees of the
company. he does so illegally from the companys e-mail system without consent of the
company. has the distributor committed tort of trespass to personal property?
30) what is an equity of redemption?