1) gary and felix are partners in a general partnership. gary does 2/3rd of the partnership
work, while felix does 1/3rd of the work. last year the partnership earned $300,000 in
profits. under the rupa, how much of the $300,000 is felix entitled to receive?
a.$200,000
b.$150,000
c.$100,000
d.$250,000
2) lyle and susie had three children: seed, sierra, and shasta. all three children are adults.
although sierra and shasta each attend college, seed hasnt quite found himself. seed
tours with various music bands. he plays guitar, spends most of the year hiking the
cascade mountains, and plans to live on a commune in big sur, california. lyle and susie
visited their attorney to plan their estates. they wish to leave equal shares of their estates
to their children, but they are concerned that seed will not be able to handle an
inheritance. what should they do with respect to seeds share?
3) the goods required for the performance of a contract are destroyed without fault of
either party prior to the time that the risk of loss passed to the buyer. in this case,
a.the contract cannot be cancelled.
b.the contract is voided.
c.the seller will not be excused.
d.the seller has to make good for the loss.
4) if a seller fails to deliver goods called for in the contract, the buyer may purchase
substitute goods and recover as damages the difference between the contract price and
the cost of the substituted goods. this is known as:
a.cover.
b.action for the price.
c.specific performance.
d.incidental damages.
5) you are standing on a street corner. a truck belonging to the safety first trucking co.
(sftc) carrying radioactive nuclear waste has a tire blown out, which causes the truck to
overturn near you. radioactive waste escapes from the truck and covers half your body.
as a result, you suffer serious medical harm. what legal theory of recovery is available
to you that will not require you to prove that sftc was at fault?
a.negligence
b.express warranty
c.implied warranty
d.strict liability
6) a principal need not compensate his agent if:
a.there was no agreement on the amount of compensation the agent was to receive.
b.the agent has committed a breach of a fiduciary duty.
c.there is no market price for the agents services.
d.the agent is a special agent.
7) a limited partner in a limited partnership:
a.provides capital and shares profits.
b.is a fiduciary of the business.
c.has management powers.
d.possesses complete liability for its obligations.
8) susan is hired to manage a business. this means that she has the authority to make
contracts that are reasonably necessary for conducting the business. this is called:
a.express authority.
b.apparent authority.
c.implied authority.
d.fixed authority.
9) a distinction between a surety and a co-surety is that only a co-surety is entitled to
the right of:
a.contribution.
b.exoneration.
c.subrogation.
d.reimbursement.
10) termination of the agency relationship at the option of the principal is known as
_____.
a.revocation
b.renunciation
c.falsification
d.liquidation
11) which of the following ethical theories focuses on a decisions or action alone,
irrespective of the result it produces?
a.deontological theory
b.teleological theory
c.profit maximization theory
d.utilitarian theory
12) which of the following draws on the personal property right connected with a
persons identity and her exclusive right to control it?
a.writing a political editorial on a public figure
b.signing a persons name on a petition that he/she is against
c.commercially using someones name
d.spreading malicious gossip about a well-known person
13) which of the following statements is true concerning multiple forgeries and
alterations?
a.a customer cannot hold the bank responsible for paying, in good faith, any altered
checks after he/she receives the statement of account.
b.a bank will be held liable for honoring altered checks which were presented to the
bank multiple times.
c.a customer bears the responsibility for any forgeries and subsequent forgeries that take
place, even if he/she has notified the bank.
d.a bank will be held liable even if it proves that it suffered a loss due to the customers
failure to examine his/her statement and notify the bank.
14) defending against a federal district court suit by paul, dan claims that paul has sued
him in the wrong federal district court. dan has raised a question of:
a.long-arm jurisdiction.
b.inpersonam jurisdiction.
c.venue.
d.standing.
15) which of the following is least likely to fall within the scope of what is protected by
the copyright on the work in which it appears?
a.the physical arrangement and ordering of pieces of factual information on pages in a
reference book.
b.the melody of a song.
c.the dialogue spoken by actors in a tv commercial.
d.the theme of a short story.
16) why is past consideration not a consideration in a present promise?
a.it falls under exceptions to consideration.
b.it does not pertain to the present exchange.
c.it is not covered under the ucc for consideration.
d.it involves an issue of moral obligation.
17) _____ creates three important periods of time in the life of a securities offering: (1)
the pre-filing period, (2) the waiting period, and (3) the post-effective period.
a.section 3 of the 1934 act
b.section 17 of the 1933 act
c.section 12 of the 1934 act
d.section 5 of the 1933 act