1) An executor is a personal representative named in a will.
2) In most bailments, the bailee can retain the goods given by the bailor and return
equivalent property.
3) Under the doctrine of comparative negligence, only the plaintiff’s negligence is
computed and the liability for damages is distributed accordingly.
4) A law that prohibits or inhibits only some persons from exercising a fundamental
right will be subject to ‘strict scrutiny” by the courts.
5) An unconscionable contract is one that is so unfair and one sided that it would be
unreasonable to enforce it.
6) A request or invitation to negotiate is an offer.
7) Under a coinsurance clause, a homeowner who insures a home for 80 percent of its
value can recover only 80 percent of the cost for damage to it.
8) The Securities and Exchange Commission does not enforce the antifraud provisions
of the securities laws in the online environment.
9) The board of directors normally can remove a corporate officer at any time with or
without cause.
10) International law requires nations to honor the actions of other nations.
11) Limited liability company operating agreements typically contain provisions
relating to management.
12) Voting rights in a corporation apply only to the election of the firm’s board of
directors.
13) The shareholder’s appraisal right extends to mergers and consolidations.
14) A fixture is normally included in a sale of land unless the sales contract specifies
otherwise.
15) Commercial Credit & Finance is a limited partnership. Derry,Eleni, and Frey are the
general partners. Derry dies. The partnership can
a.continue only after a distribution of its assets.
b.continue only as a general partnership.
c.continue only if Eleni and Frey consent.
d.not continue because Derry’s death dissolves the firm.
16) Whitewater Canyon Adventures, Inc., and Xtra Overstock Company enter into an
oral contract for Xtra’s sale to Whitewater of five rafts for $2,000 each. Before
Whitewater takes possession of the rafts, this contract is enforceable by
a.Xtra only.
b.Whitewater only.
c.any interested third party, such as a Whitewater tour guide.
d.none of the choices.
17) Noah and Orin do business as Personnel Providers, an employment agency. In most
states, for purposes of suing and being sued, Personnel Providers, which is a
partnership, would be treated as
a.an aggregate of the individual partners.
b.a natural person.
c.an entity.
d.a non-existent party.
18) Dry Gulch Farms hires Elliot to repair its irrigation system on site on a certain date
for $2,500, but Elliot does not show up as agreed. Dry Gulch hires Fernando to do the
job for $2,000. Dry Gulch may recover from Elliot
a.nothing.
b.compensatory damages.
c.consequential damages.
d.nominal damages.
19) In Research & Development Company’s suit against Structural Engineers, Inc.,
Research & Development wants to introduce evidence that it claims is relevant.
Relevant evidence is evidence that
a.establishes the degree of probability of a fact or action.
b.tends to disprove a fact in question.
c.tends to prove a fact in question.
d.all of the choices.
20) Utah enacts a law that restricts certain kinds of advertising to protect consumers
from being misled. This law would likely be held by a court to be
a.an unconstitutional restriction of speech.
b.constitutional under the First Amendment.
c.justified by the need to protect individual rights.
d.necessary to protect state interests.
21) Raphaelle employs a variety of will substitutes to transfer her assets, which consist
principally of cash and investments in mutual funds, outside the probate process. In this
situation, the most important consideration is to
a.avoid the cost of probate.
b.ensure that the arrangements benefit the intended persons.
c.establish grounds for a court’s review of the arrangements.
d.follow the same principles as apply to testamentary transfers.
22) 10.Scuba AdventuresInc. and Tours of the Sea Company decide to consolidate. This
corporate combination does not require the approval of
a.Scuba and Tours directors.
b.Scuba and Tours officers.
c.Scuba shareholders.
d.Tours shareholders.
23) Emylee, an employee of Farm Supplies, Inc., files a sexual-harassment suit against
Gowan, her supervisor. Emylee wins. Farm Supplies may also be liable if it had
effective harassment policies and complaint procedures, and
a.none of the employees followed them.
b.Emylee followed them.
c.all of the employees were aware of them.
d.Gowan followed them.
24) Roadtrip County Fairs Corporation orders from Stuffed Animal Sales, Inc., goods
that are stored in a Toy Box Maxi-Storage warehouse. Roadtrip pays for the goods,
delivery is via the transfer of a negotiable warehouse receipt, and Roadtrip moves the
goods out of the warehouse. The risk of loss passes to the buyer when it
a.orders the goods.
b.pays for the goods.
c.receives the negotiable warehouse receipt.
d.moves the goods out of the warehouse.
25) Garden Supply Company and Home & Lawn Corporation plan to consolidate. Most
likely, the articles of consolidation will be filed with
a.the county recording office.
b.the local retailers’ association.
c.the state’s secretary of state.
d.theU.S. Department of Commerce.
26) Luke is playing a video game on a defective disk that melts in his game player,
starting a fire that injures his hands. Luke files a suit against Mystic Maze, Inc., the
game’s maker under the doctrine off strict liability. A significant application of this
doctrine is in the area of
a.cyber torts.
b.intentional torts.
c.product liability.
d.unintentional torts.
27) Iago believes that he is a victim of a form of employment discrimination that falls
under the Civil Rights Act of 1964. Compliance with this statute is monitored by
a.employees and job applicants, not an administrative agency.
b.employers and businesses, not an administrative agency.
c.the courts and Congress, not an administrative agency.
d.the Equal Employment Opportunities Commission.
28) Pipes & Culverts Company orders six irrigation pumps from Quality Plumbing, Inc.
The pumps are stored in Restorers Warehouse. Under the terms of the order, Quality
must give Pipes & Culverts a warehouse receipt for the goods, which the buyer will
then pick up. Title to the goods passes to Pipes & Culverts when
a.Quality stores the drives.
b.Pipes & Culverts orders the drives.
c.Pipes & Culverts picks up the drives.
d.Quality gives Pipes & Culverts a warehouse receipt for the drives.
29) Employees who use social media in a way that violates their employer ‘s stated
policies cannot be disciplined or fired from their jobs.
30) Rulings from bankruptcy courts are final – they cannot be appealed.
31) A seller who makes a statement that relates to the value or worth of the goods
creates an express warranty.
32) An agent has the implied authority to do what is reasonably necessary to
accomplish the objectives of the agency.
33) For fraud to occur, seller’s talk must be involved.
34) Alex is a shareholder of Brick & Mortar Retail Corporation. For the last few years,
business has not been profitable for Brick & Mortar. The firm has lost money on its
operations. There has been some profit through sales of company assets, but the board
of directors has refused to declare a dividend. This last year, the firm’s accountants
failed to file federal income tax returns and the board refused to pay the tax. Alex takes
a close look at the firm and protests to the board, in particular over the failure to declare
a dividend, but the board ignores the complaint. Which of these events, if any, would
form a ground for a court to order the dissolution of Brick & Mortar, on Alex’s petition?
If the court denies the petition, could Alex and the other shareholders dissolve Brick &
Mortar?