1) lmnop corp. has been convicted under the sherman act for two distinct and separate
violations. lmnop may be fined as much as _____ for these two violations.
a.$50 million
b.$100 million
c.$200 million
d.$150 million
2) under the model business corporation act (mbca), dissenters rights apply only if the
shareholders shares are not traded on a national securities exchange.
3) shareholders may bring a suit on behalf of the corporation against the board of
directors. such a suit is generally called a(n) _____ suit.
a.class action
b.derivative action
c.shareholder action
d.injunction
4) which of the following is true of the emission trading scheme provided by the 1990
amendments to the clean air act?
a.allowances can be traded between companies, but cannot be sold.
b.allowances can be sold to other companies that may be finding it more difficult to
meet the standards.
c.it applies only to those companies engaged in interstate commerce.
d.allowances can be sold to government, but not among private firms.
5) the apparent authority of a partner to bind the partnership in dealing with third
parties:
a.would permit a partner to submit a claim against the partnership to arbitration.
b.must be derived from the express powers and purposes contained in the partnership
agreement.
c.will be effectively limited by a formal resolution of the partners of which third parties
are aware.
d.will be effectively limited by a formal resolution of the partners of which third parties
are unaware.
6) to establish a cause of action based on fraud in the inducement, one of the elements
the plaintiff must generally prove is that:
a.it is impossible for the plaintiff to fulfill the terms of the contract.
b.the contract is unconscionable.
c.the defendant made a false representation of a material fact.
d.there has been a mutual mistake of a material fact by the plaintiff and defendant.
7) an important difference between duress and undue influence is that:
a.duress occurs in a relationship of trust, while undue influence employs improper
threat.
b.duress involves physical compulsion, while undue influence involves economic
compulsion.
c.the scope of duress has contracted since the 19th century, while the scope of undue
influence has expanded since the 19th century.
d.duress is wrongful coercion, while undue influence is unfair persuasion.
8) which of the following factors will be most important in determining whether an
express warranty has been created concerning goods sold?
a.the sellers description of the goods formed the basis of the bargain.
b.the buyer or seller is a merchant with respect to the goods being sold.
c.the seller intended to create the express warranty.
d.the buyer relied on the sellers statements.
9) the usual title vii suit is a suit by _____.
a.the eeoc
b.the department of labor
c.the states
d.a private plaintiff
10) able borrowed $10,000 from baker, promising to return it with $1,000 interest on
january 1, 2006. there is no dispute that able owes baker $11,000 due on january 1,
2006. on that day, able gave baker a valid check in the amount of $10,500 marked
payment in full for loan due january 1, 2006. baker accepted that check and deposited it
into his account. if baker then sues able for the unpaid $500, what would the result be?
a.able wins, because baker accepted the lesser payment.
b.able wins, because baker made an implied promise to accept $10,500 as full payment,
thereby forgiving $500 of the loan.
c.baker wins, because able gave no consideration in exchange for bakers promise to
forgive $500 of the loan.
d.baker wins, because marking payment in full can never relieve a party of its original
obligations under a contract.
11) workers compensation systems have failed to eliminate which of the following
employer defenses?
a.injuries resulting from employee horseplay
b.implied assumption of risk by the employee
c.injuries resulting from the negligence of the employee
d.injuries resulting from the negligence of a co-employee
12) in the case of an intestate estate, the personal representative to it is called a(n)
_____.
a.trustee
b.executor
c.administrator
d.beneficiary
13) a member of an llc is treated as a transferee of his/her transferable interest only
after:
a.he/she transfers his/her transferable interest to another person.
b.he/she gives notices to third parties about the transfer.
c.a creditor receives his/her transferable interest.
d.his/her dissociation from the llc due to judicial expulsion.
14) a valid assignment always requires:
a.consideration.
b.writing.
c.filing with a local court.
d.an intention to assign.