Under Regulation D, Rule 506, sales may be made to:
a. an unlimited number of accredited investors
b. an unlimited number of unaccredited investors
c. no more than 500 accredited investors
d. no more than 35 unaccredited investors
The situation in which an individual impersonates the holder of a savings account and,
by presenting a forged withdrawal slip to the savings bank, receives from the bank a
check payable to the bank’s customer, is covered by the:
a. impostor rule.
b. negotiation rule.
c. assignment rule.
d. bank rule.
The taking of an image off someone’s web site and using it for commercial advantage is
called:
a. appropriation.
b. defamation.
c. gleaning.
d. subordination.
In a minitrial:
a. only three jurors are used.
b. the trial addresses only portions of the case or certain issues related to the case.
c. the decision is always fully binding on the parties.
d. none of the above.
Title VII of the Civil Rights Act of 1964 applies to:
a. the hiring process.
b. discipline.
c. discharge
d. all of the above.
Under which organizational structure would the death of the owner have no legal
effect?
a. a partnership
b. a corporation
c. a sole proprietorship
d. all of the above
An oral contract can be enforced when it relates to:
a. the purchase of a television set for $200.
b. the sale of an interest in land for $400.
c. managing a factory for five years.
d. a promise to answer for the debt of another.
Which of the following is an incorrect statement about officers?
a. Their duties are generally set forth in the corporation’s bylaws.
b. They have a fiduciary obligation to the corporation.
c. They are agents of the corporation.
d. Their authority as agents is increased if they are shareholders.
The power given to courts to hear certain types of cases is called:
a. jurisdiction.
b. mediation.
c. arbitration.
d. summary judgment.
Bribery is defined as:
a. giving money, property, or any benefit to a person to influence that person’s
judgment.
b. using one€s position as a public official to make an illegal demand.
c. using one€s position as a nonpublic official to make an illegal demand.
d. exerting improper political influence.
The usual method of creating an agency is by:
a. express authorization.
b. conduct.
c. operation of law.
d. ratification.
The standard statute of frauds:
a. requires full disclosure in the case of consumer sales on credit.
b. requires a seller of real estate to obtain a broker’s license.
c. specifies the punishment of perjury.
d. requires that a contract for the sale of land be evidenced by a writing.
A major disadvantage of the sole proprietorship is:
a. no organizational fees.
b. the sole proprietor obtains all of the profits.
c. the sole proprietor is personally liable for the debts of the sole proprietorship.
d. the sole proprietor is free to make all business decisions concerning operation of the
sole proprietorship.
Sally operates a large manufacturing firm near a federal land preserve known for its
waterfowl and fauna. The federal government has just filed suit against Sally and her
corporation, charging them with criminal violations of various environmental protection
statutes. What rights do Sally and her corporation have that are guaranteed under the
United States Constitution?
Joan brought her car into Ace Service Station for a tune-up. After tuning up the car, Ace
(the owner of the service station) decided to visit his mother. Ace drove Joan’s car. Ace
was following all safety precautions when a negligent driver without insurance struck
Joan’s car. Joan sued Ace for the damages to her car. The probable result is:
a. Ace will win, since he was taking reasonable care of the bailed goods.
b. Ace will win, since the bailee has the right to use the bailed goods.
c. Joan will win, since the harm was sustained during the bailee€s unauthorized use of
the property.
d. Joan will win, since bailees are absolutely liable for bailed goods in their possession
and control.
Maria intentionally attempts to have Patty break a contract with Alfred. Maria will be
liable under which theory of tort?
a. Libel
b. product disparagement
c. contract interference
d. intentional infliction of emotional distress
The Alexo Corporation has been charged in a United States court with violation of
American antitrust laws in its foreign dealings. The firm has raised the defense that its
actions were compelled by the government of its host country. Alexo based its defense
on the__________ doctrine.
a. act-of-state
b. sovereign compliance
c. sovereign immunity
d. Treaty of Rome
Which party to an illegal agreement may get relief from the court?
a. Plaintiff
b. Defendant
c. the less-guilty party, when public interest is advanced by granting relief
d. a doctor who was unlicensed at the time of the making of an agreement for the
provision of medical services, but who later obtained a proper license
An instrument may be transferred by negotiation or by assignment.
The decision of an association tribunal is binding on both the association member and
the consumer.
A condominium is a combination of co-ownership and individual ownership.
An agency coupled with an interest is an exception to the general rule regarding
termination of the agency and the agent cannot be discharged or fired before the
expiration of the interest.
A lessor can always refuse to renew the lease of a tenant who reports the landlord to the
fire department for violation of fire safety laws.
If there is a written contract, a disclaimer of the implied warranty of merchantability
must be conspicuous.
Under Revised UCC Article 9, a financing statement must be signed by the debtor.
Most states permit action to be taken by the board of directors without holding an actual
meeting.