1) a partner in a partnership firm should make all attempts to take decisions that are in
the best interest of the firm. this is related to the concept of _____.
a.duty to serve
b.duty to act within actual authority
c.duty of care
d.duty to account
2) under the bankruptcy acts exemption provisions:
a.the debtor must choose either the state or the federal exemption scheme.
b.the full value of ones motor vehicle is exempt.
c.federal exemptions defeat state exemptions in case of a clash between them.
d.state exemption laws that exceed the federal limits (i.e., that are too generous) are
void.
3) the _____, enacted in 1970, required that an environmental impact statement be
prepared for every recommendation or report on legislation and for every major federal
action significantly affecting the quality of the environment.
a.comprehensive environmental response compensation and liability act
b.clean air act
c.national environmental policy act
d.toxic substances control act
4) a bank may lend money to a corporation in exchange for the corporations short-term
promissory notes, which are called:
a.shares.
b.commercial paper.
c.debentures.
d.bonds.
5) which of the following is true of termination of agency by operation of law?
a.the principals permanent loss of capacity ends the agency only if the agent is given
notice.
b.the bankruptcy of the agent automatically terminates the agency relationship.
c.termination by the death of the principal is effective only when the agent has notice of
the principals death.
d.the death of an individual agent does not terminate the agency relationship if the
principal is not an individual.
6) which of the following kinds of marks are denied placement on the principal
register?
a.those which are geographically descriptive
b.those containing fanciful names
c.those consisting of surnames
d.those consisting of government insignia
7) in united states v. colgate & co. (1919), the supreme court:
a.overruled a long-standing precedent that had required per se treatment for vertical
maximum pricefixing.
b.reaffirmed that horizontal divisions of markets are illegal per se and plainly represent
agreements not to compete.
c.held that a manufacturer could unilaterally refuse to deal with those who failed to
follow the manufacturers suggested resale prices.
d.held that vertical minimum price-fixing would be judged under the rule of reason
rather than the per se approach.
8) in 1978, frieda stayel opened a donut shop in the town of fort garth, indiana. her
shop, called stayel donuts, was the first of its kind in the community. over the years,
stayel donuts acquired a wide following, not only in fort garth but also throughout
indiana and even in surrounding states. persons traveling through indiana on their way
to another state often would go out of their way to stop at stayel donuts because of what
they had heard about the high quality of the baked goods sold there. various competing
donut shops opened in fort garth and in nearby communities during the years following
1978, but all had failed to acquire enough of a following to enable them to stay in
business for very long. as of mid-2003, approximately 95 percent of the donuts sold in
fort garth were stayel donuts. the latest of stayels competitors whose business failed
was duane duncan, the former operator of duncan donuts. duncans attorney has advised
him that stayel has a monopoly on the donut business and that duncan therefore has a
good antitrust claim against stayel under section 2 of the sherman act? is the attorneys
advice legally sound? why or why not?
9) ryan enters into a contract with dave, the neighborhood grocer, to supply fresh
vegetable daily. after four months, the grocery store expands its business considerably
and attracts customers from the neighboring areas as well. as a result, dave demands
that ryan triple his supply as he cannot keep up with the demand? which of the
following will apply in determining the amount that can be supplied in such
circumstances?
a.rule of reasonable price
b.rule of requirements
c.rule of needs
d.rule of good faith
10) the _____ requires periodic shareholder approval of executive compensation.
a.dodd-frank wall street reform and consumer protection act
b.burnett act
c.sarbanes-oxley act
d.debbie smith act
11) which of the following is defined to mean honesty in fact in performing the duties
assumed in the contract or in carrying out the transaction?
a.course of dealing
b.usage of trade
c.caveat emptor
d.good faith
12) the u.s. constitution provides distinct powers to the congress, the president, and the
federal courts. this is the principle of:
a.separation of powers.
b.federal supremacy.
c.judicial review.
d.due process of law.
13) which of the following is an example of substantive unconscionability?
a.terms that are stated in fine print
b.a disparity in bargaining power between the parties
c.high-pressure sales tactics
d.unjustifiably harsh terms
14) the parol evidence rule is relevant only in cases:
a.that are oral in nature.
b.where parties have expressed an agreement.
c.involving the sale of goods.
d.where subsequent modification do not have a suitable consideration.
15) which of the following is the oldest and also the simplest security device?
a.pledge
b.chattel mortgage
c.deed of trust
d.surety