A corporation as well as its subsidiaries can vote treasury shares.
Answer:
Under the Magnuson-Moss Warrant Act and the FTC regulations, the seller is not
required to give a written warranty.
Answer:
“Imminently hazardous consumer products” are those that pose an immediate and
unreasonable risk of death, serious illness, or severe personal injury.
Answer:
Describe the rights and general duties of partners.
Answer:
The chief executive officer (CEO) and chief financial officer (CFO) must certify
reports submitted to the SEC.
Answer:
The FCPA allows a company to pay governmental officials to secure routine
governmental action.
Answer:
A drawee bank is obligated to certify a check.
Answer:
The agreement between the creditor and the debtor may authorize the creditor to
repossess the collateral in case of default.
Answer:
People whose actions cause injuries of the kind the statute was designed to protect
against are considered to be negligent per se.
Answer:
The two components to a relevant market determination to decide if a firm has
monopoly power are the geographic market and the product market.
Answer:
Which of the following is TRUE with respect to criminal trial?
A. The defendant bears the burden of proof.
B. The burden of proof need only have “a preponderance of the evidence”.
C. The burden of proof should be “beyond a reasonable doubt”.
D. The burden of proof for a criminal case is the same as that for a civil case.
Answer:
A creditor can perfect a security interest by filing a public notice it.
Answer:
Shares are never worth more than the par or stated value.
Answer:
Ads for the sale of goods at a specified price are considered as ________ by the
courts.
A. giving everyone who sees the ad the power to bind into a contract
B. solicitation of an offer
C. an unfair offer
D. invitations to negotiate
Answer:
A contract calls for a farmer to send apples growing at his farm to the fruit market
every Monday and he promptly sends them fresh stock of apples every Monday as per
the contract. If the fruit market does not pay cash but rather sends a check the following
week then:
A. the farmer can object if he may want to rely on the late payment for canceling the
contract, but can do this only after six months of the contract period.
B. the farmer cannot object under any circumstances.
C. the farmer must object if he may want to rely on the late payment as grounds for
later canceling the contract.
D. the farmer can object only if he has not been paid for the apples he delivered.
Answer:
This is designed to stop speculative insider trading on the basis of insider information.
A. Short-swing profits regulation
B. Wash sale
C. Blue sky laws
D. Certificate of interest of participation
Answer:
Section 1 of the Sherman Act applies to:
A. unilateral actions.
B. joint actions.
C. nonimport trade.
D. mergers.
Answer:
A donee beneficiary:
A. is a third-party beneficiary to whom a gift of performance is given.
B. is a third-party beneficiary who is no longer a part of an agreement.
C. is a third-party beneficiary who incidentally benefits from a contract.
D. is a third party beneficiary who cannot recover the value of the promised
performance.
Answer:
Which of the following is least likely to make the employer liable for unjust dismissal
or wrongful discharge under the public policy exception to the employment-at-will
doctrine?
A. Firing an employee because his religious convictions cause him to refuse to work on
a contract for the Department of Defense.
B. Firing an employee for refusing to commit perjury in a million-dollar product
liability suit against the employer.
C. Firing a middle-level manager for refusing to violate Title VII by faking an
African-American subordinate’s job evaluation to prevent promotion of the
African-American.
D. Firing an employee for filing a workers’ compensation claim against the employer.
Answer:
Which of the following is TRUE of the obligations of an acceptor?
A. If the certification or acceptance does not state an amount then the acceptor is free of
all obligations.
B. If the certification of a check or other acceptance of a draft states the amount
accepted, the obligation of the acceptor is the amount of the instrument at the time a
holder in due course takes it.
C. If the certification of a check or other acceptance of a draft states the amount
certified or accepted, the obligation of the acceptor is that amount.
D. If the certification or acceptance does not state an amount, or if the amount of the
instrument is subsequently raised, then the obligation of the acceptor is the raised
amount.
Answer:
_____ is an unintentional breach of duty by the defendant that results in harm to
another.
A. Negligence
B. Liability
C. Injury
D. Malpractice
Answer:
Which of the following statements is TRUE?
A. The Securities Exchange Act of 1934 requires periodic disclosures from issuers of
securities.
B. The 1933 Act regulates the sale of securities while they are passing from the hands
of the issuer into the hands of the private investors.
C. The Securities and Exchange Commission (SEC) was created by the 1933 Act.
D. Unlike other federal administrative agencies, the SEC has only legislative functions.
Answer:
A common defense to the tort of interference with contract is:
A. lack of capacity.
B. privilege.
C. probable cause.
D. inducing a breach of contract.
Answer:
A major purpose of the Bankruptcy Code is:
A. to ensure that some creditors get more advantages than others.
B. to protect honest debtors against the demands for payment by creditors.
C. to ensure that a debtor can never be discharged of the debts he owes to the creditors.
D. to protect debtors from creditors who try to diminish the debtor’s assets.
Answer:
A resident of Ohio was convicted of bank robbery of $90000 in California. In which of
the following courts should his case be filed?
A. Small Claim Court
B. Trial Court
C. District Court
D. Justice of Peace Court
Answer:
The heirs of Mavis, a victim of Alzheimer’s, found on her death that she had sold her
house to her lawyer for $50,000, a week before her death. The market value of the
house at the time of the sale was $500,000. These heirs may attempt to have the sale set
aside, arguing that it was the product of:
A. undue influence.
B. duress.
C. fraud.
D. misrepresentation.
Answer:
Which of the following implied warranties addresses the status of the ownership of
goods?
A. Title
B. Merchantability
C. Fitness
D. Description
Answer:
According to the UCC’s rule, when forms are not exchanged:
A. acceptance cannot materially vary from the offer.
B. acceptance can have terms additional to the offer.
C. differing terms must be included as a part of the contract.
D. though the acceptance varies from the offer, it cannot be considered as a rejection.
Answer:
The RUPA holds that property belongs to the partnership if it was transferred to:
A. the partners in their individual capacities.
B. general partners only by a transfer document that specifically names the partnership
indicating that partnership exists.
C. any partner by transfer document indicating the partner’s status as a partner or
otherwise indicating that a partnership exists.
D. any partner by transfer document under the charging order.
Answer:
Which of the following is TRUE of the operation of stare decisis?
A. The lawyer or judge can only state narrowly, the rule to be applied from the
precedent cases.
B. A legislature cannot override stare decisis and change a common law rule by
enacting a statute.
C. The highest appeals court in a jurisdiction cannot overrule a precedent case.
D. A court has considerable freedom in picking precedent cases.
Answer:
Identify the statement that is TRUE of a bailee’s duty of care.
A. The bailee is liable to the bailor even if the property is lost or damaged without the
fault or negligence of the bailee.
B. If the bailment is solely for the benefit of the bailor then, the bailee may be held to a
higher degree of care.
C. If the bailment is for the sole benefit of the bailee then, the bailee may be held to a
lower degree of care.
D. The bailee must use the same kind of care a reasonable person would use to protect
his own property in a mutual benefit bailment.
Answer:
Negligent persons are generally held jointly liable (along with the negligent physician)
for negligent medical care their victims receive for their injuries. This is TRUE
according to:
A. the general causation rules
B. res ipsa loquitur
C. negligence per se
D. comparative negligence
Answer:
An artisan’s lien:
A. is ineffective against other creditors unless a proper financing statement has been
filed.
B. may be given priority even over perfected security interests in collateral if the artisan
has possession of the goods.
C. is invalid if the artisan did not inform the debtor, before beginning the work, that he
intended to claim a lien.
D. gives a retailer prevalence over someone who buys the collateral from the debtor if
the buyer gives value for goods.
Answer:
The Williams Act amendments to the 1934 Act were designed to:
A. provide penalties for fraudulent sales and permit the issuance of injunctions to
protect investors from anticipated fraudulent acts.
B. give investors the information they need to make intelligent decisions about whether
to purchase securities.
C. force corporations to comply with stockholder’s social goals of meeting the EPA’s
new source emission standards.
D. give the bidder and the target company equal opportunities to present their cases to
the shareholders.
Answer:
Today, many courts recognize which of the following about the doctrine of “caveat
emptor”?
A. That it is a necessary step to prevent a contract from being created.
B. That it enables the seller to rescind a contract.
C. That it often produces unfair results.
D. That it is wholly the duty of the buyer to be aware of all material facts about the
subject of the contract.
Answer:
A security interest in money can be perfected:
A. by filing a financing statement.
B. by change of possession.
C. by filing a public notice.
D. by mere attachment.
Answer:
If a buyer becomes concerned that the seller may not be able to perform required
contract obligations:
A. he may not assign his contract rights under the contract.
B. he may demand assurance from the other party that the contract will be performed.
C. he may refuse to perform the contract under the doctrine of commercial
impracticability.
D. he may be excused from performance under the doctrine of impossibility.
Answer:
Under the UCC, a buyer in the ordinary course of business:
A. is one who buys goods from a merchant, knowing that the sale violates the
ownership rights of a third party.
B. does not know that a sale violates the ownership rights of the original party.
C. takes goods free of any security interest in the goods that their seller may have given
a third party.
D. is a person who transacts only with nonmerchants.
Answer: