The owners of a limited liability company are known as:
a. members.
b. partners.
c. contributors.
d. electors.
Ordinarily, a temporary impossibility __________ the duty to perform.
a. suspends
b. excuses
c. discharges
d. none of the above
The Blanchard and Peale three-part test for resolving ethical dilemmas consists of the
following questions:
a. Is it legal? Is it ethical? Is it moral?
b. Is it legal? Is it balanced? How does it make me feel?
c. Is it ethical? Is it right? Does it pass the €front page of the newspaper€ test?
d. Is it right? Is it balanced? Is it fair?
Mabel issues a negotiable promissory note to the order of Rachel. Rachel endorses the
note to Batton, who takes it as a holder in due course. Batton gives the note to his
brother, Albert, as a gift. In this situation:
a. Albert will acquire Batton’s rights.
b. Albert is a holder through a holder in due course.
c. both a. and b.
d. none of the above.
A warranty is limited if:
a. only the original buyer is covered by the warranty.
b. the buyer must pay any cost for repair or replacement of a defective product.
c. it covers only part of the product purchased.
d. all of the above.
An offer that is indefinite may be clarified by reference to another writing through:
a. incorporation.
b. reference.
c. annotation.
d. indexing.
Armenia purchased life insurance on her life. Regarding the beneficiary:
a. Armenia must name a person with a pecuniary interest in her life.
b. Armenia must name a close relative.
c. Armenia must name a close relative or business associate.
d. Armenia may name whomever she wishes.
Philip Laws leased an apartment from Candice Sutton. Laws had notified Sutton on
more than one occasion that the wooden steps to his apartment were decaying and in
need of repair. Laws claimed that he had to leave the outside light on to avoid portions
of the steps that no longer would bear his weight when he came in at night. Sutton
promised to repair the steps while Laws was away on a business trip. Accordingly,
Laws did not leave lights on during his absence. When he returned three nights later,
Laws was injured when one of the steps broke under his weight as he was entering his
apartment. Laws sued Sutton. Sutton replied that she should not bear liability for Laws’
injury because Laws knew of the condition of the steps and had not taken the customary
precaution of lighting the area. Based on what you have learned in this chapter, decide
the case.
Vertical mergers:
a. occur between firms that have a competitor relationship.
b. occur between firms that have buyer and seller relationships.
c. are not covered by the Clayton Act.
d. are always protected by the federal government.
The process by which the buyer conducts a thorough investigation of the property and
its current and former uses to determine whether there are any problems with respect to
environmental law or nuisance is called:
a. continuing the nuisance.
b. due diligence.
c. nuisance per se.
d. nuisance per fact.
A forged or unauthorized indorsement is by definition:
a. an indorsement of the person by whom it appears to have been made.
b. no indorsement of the person by whom it appears to have been made.
c. binding on the party who refuses to ratify the instrument.
d. incapable of being ratified.
When the privity rule is applied, a bank lending money to the client of an accountant
cannot sue the accountant for malpractice.
A writing required by the statute of frauds may be a signed note or memorandum.
In some states, a ‘service-letter” statute requires an employer on request to furnish a
discharged employee with a letter stating the reason for the discharge.
The Market Reform Act of 1990 empowers the SEC to suspend all trading when
markets are excessively volatile.
An administrative agency cannot hold a hearing without a jury.
Algonquin Industries was a small business that hired mostly recent immigrants to the
United States and paid them a minimum wage. The business prospered and people
began to come around to organize the workers into a union. Officials of Algonquin
spoke against the advisability of joining the union. Finally, a date for a certification vote
was set. In the days leading up to the vote, Algonquin officials began to intimate that
those workers who voted against the union would receive overtime opportunities “as
they became available.” A charge has been brought that this is an unfair labor practice.
Decide.
The past performance of the parties under a continuing contract is important in
determining what the contract means.
In an emergency, an administrative agency can act beyond the scope of the statute that
created it.