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1) The key to liability under Section 10(b) of the Securities Exchange Act of 1934 and
SEC Rule 10b-5 is whether information omitted or misrepresented in connection with
the purchase or sale of a security is material.
2) A principal has a duty to cooperate with the agent and to assist the agent in
performing his or he duties.
3) A misrepresentation leads another to believer in a condition that is different from the
condition that actually exists.
4) An international custom can be defined as "evidence of a general practice accepted as
law."
5) A method of accomplishing a property transfer without a will is through the joint
ownership of property.
6) The key consideration in determining whether an employment manual creates an
implied contract is the employee's reasonable expectations.
7) Mandatory arbitration clauses in employment contracts are generally enforceable.
8) Expropriation occurs when a government seizes a privately owned business or
privately owned goods for a proper public purpose and awards just compensation.
9) Predatory pricing is a legitimate marketing practice, not a form of anticompetitive
conduct.
10) A resulting trust arises from the conduct of the parties.
11) Each director present at a meeting of the board of directors has one vote for each
outstanding share of corporate stock that he or she holds.
12) Trademark dilution occurs when a person registers a domain name that is the same
as, or confusingly similar to, the trademark of another and then offers to sell the domain
name back to the original owner.
13) Expressly designating a third party as a beneficiary in a contract does not indicate
whether the beneficiary is intended or incidental.
14) Compensatory damages are not available in cases of intentional discrimination in
violation of Title VII of the Civil Rights Act of 1964.
15) Slow-Brew Coffee Company sells coffee and related beverages. The company′s ad
contends that ambitious businesspersons "Drink Us & Rise Up in the World!."The
Federal Trade Commission would consider this ad to be
a.false and misleading.
b. impermissibly vague and general.
c.a deceptive half-truth.
d.none of the choices.
16) Janet is the secured party in a secured transaction with Michelle. Janet could also be
referred to as the
a.debtor.
b.secured creditor.
c.collateral.
d.filing officer.
17) Vito borrows $110,000 from Watershed Bank to buy a home. If he fails to make
payments on the mortgage, the bank has the right to repossess and auction off the
property securing the loan. This is
a.a short sale.
b.forbearance.
c.foreclosure.
d.the right of redemption.
18) Space Trips Inc. files a registration statement with the SEC before making an
offering to the general public. The registration contains false, immaterial statements of
which the investors are unaware. Space Trips is charged with violating the Securities
Act of 1933. Space Trips′s best defense is
a.the investors were not aware of the misrepresentations.
b.the issuer reasonably believed the misstatements were true.
c.the offering was made available to the general public.
d.the untrue statements were not material.
19) Frictionless Lubricant Corporation and Grease, Inc., are the principal suppliers of
their product in their market. They agree that Frictionless will sell exclusively to
retailers and Grease will sell exclusively to wholesalers. Under antitrust law, this is
most likely
a.a per se violation.
b.a violation only if their competitors make similar deals.
c.a violation only if their customers agree to honor the deal.
d.not a violation.
20) Dreyfus points a gun at Eton, threatening to shoot him if he does not steal from his
employer, Freddy's Gas & Shop store, and give the stolen funds to Dreyfus. Charged
with theft, Eton can successfully claim, as a defense
a.nothing.
b.duress.
c.entrapment.
d.self-defense.
21) Kari, a real estate agent, assures Linc that a certain parcel of commercial property
fronts on the most highly trafficked street in Metro City. Linc buys the property and
then discovers that the street has no more traffic than any other in its vicinity. Linc is
most likely a victim of
a.opinion.
b.fraud.
c.mistake.
d.nothing.
22) Bowie is a holder of a promissory note obtained from Credit Lenders, Inc.
Regarding the defenses against payment of the note to which Credit Lenders is subject,
Bowie, as an ordinary holder, is subject to
a.more defenses.
b.no defenses.
c.some defenses, but not as many.
d.the same defenses.
23) Genevieve, a twenty-year-old, wants to execute a will before she undertakes a
mountain-climbing trip on a peak in the Himalaya Mountains. In most states, the legal
age for executing a will is
a.sixteen.
b.eighteen.
c.twenty-one.
d.any age.
24) Gabriellais a beneficiary of a business trust. As a beneficiary, she is required to
a.distribute the trust's profits.
b.assume responsibility for the trust's debts.
c.draft a written trust agreement.
d.none of the choices.
25) Merlin is a drug addict who has completed a supervised drug-rehabilitation
program. Nabil used drugs casually in the past. Both work for Omni Insurance &
Investments Inc. Considered to have a disability under the Americans with Disabilities
Act of 1990
a.are Merlin and Nabil.
b.is Merlin only.
c.is Nabil only.
d.none of the choices.
26) The UCC applies to the formation of sales and lease contracts and observes the
same degree of formality used in forming other types of contracts.
27) Corporations can demonstrate corporate social responsibility by promoting goals
that society deems worthwhile.
28) The First Amendment does not require a complete separation of church and state.
29) An integrated contract is the complete and final statement of the terms of the
agreement.
30) Exceptions to the automatic stay include investigations by a securities regulatory
agency, which can continue despite the suspension of other actions against a debtor the
moment a bankruptcy petition is filed.
31) A determination of whether consideration exists depends on a comparison of the
values of the things exchanged.
32) A instrument "payable to the order of bearer" is neither an order instrument nor a
bearer instrument.
33) Clearly, a judge€s function is to make the laws.
34) It is guaranteed that any judgment will be enforceable.
