A stock split results in a larger proportion of corporate ownership by the shareholder.
a. True
b. False
Intellectual property consists of which of the following?
a. Trade secrets
b. Patents
c. Trade symbols
d. All of these are considered intellectual property.
A distinguishing characteristic of a business trust is that:
a. the trust estate is devoted to the conduct of a business.
b. each beneficiary must have the consent of all the other beneficiaries in order to sell or
transfer his interest in the trust.
c. the trustees and beneficiaries share the functions of management and control.
d. All of these.
Under the RUPA, a partnership agreement may be written or oral, but not implied.
a. True
b. False
An employer:
a. must not provide electronic bulletin boards and chat rooms because of provisions of
the CDA.
b. should act quickly to remove any defamatory statements brought to its attention
because Section 230 of the
CDA grants immunity from defamation liability only to ISPs.
c. need not be concerned about allegedly defamatory statements on e-forums it controls
because Section 230 of the CDA grants any employers immunity from liability for
defamation for publishing information originating from a third party.
d. cannot be held liable for unauthorized online defamatory statements made by
employees.
Which of the following requires consideration in order to be binding upon the parties?
a. A written promise by a merchant to keep an offer to buy goods open for 14 days
b. Material modification of a sale of goods contract under Article 2 of the UCC
c. Material alteration of a personal service contract
d. Settlement of a disputed debt
An accountant-client privilege is statutorily recognized in some states and would
generally permit the accountant to refuse to disclose confidential information gleaned
from his client.
a. True
b. False
A person who engages an independent contractor may control the method and manner
used by the contractor to perform the job.
a. True
b. False
A demand note is dishonored if the maker does not pay it:
a. on the day of presentment.
b. before midnight of the day following presentment.
c. within three days of presentment.
d. within ten days of presentment.
Taylor Corp. rents a warehouse where it conducts a small manufacturing operation. As a
condition of its lease, it pays a fire insurance premium. Taylor needs more room and
rents larger quarters. Taylor then subleases its old warehouse to Mack. Taylor also
assigns its already-paid insurance policy to Mack. This action is:
a. appropriate, so long as Taylor and Mack agree to it.
b. appropriate, so long as the landlord agrees to it.
c. not binding on the insurer.
d. totally within the rights of Taylor, who already paid the premium.
A __is an offeree’s refusal to accept an offer.
a. revocation.
b. counteroffer
c. rejection
d. statutory irrevocability
If a secured party moves within the state after filing the financing statement, the filing
becomes ineffective.
a. True
b. False
Assuming a note made by Barbara payable to Carol, which indorsement will limit
negotiability?
a. “Pay Al. Carol”
b. “For deposit only, Acct. #602-043. Carol”
c. “Pay Connie for Al. Carol”
d. “Pay Claudia as attorney for John Jones. Carol”
Tammy joined a religious cult while a student at college. Her father hired a
deprogrammer who spent several weeks with her, during which they occasionally went
on outings. After Tammy met with her boyfriend one weekend, she rejoined the cult. If
she sues her father and the deprogrammer for false imprisonment, Tammy:
a. will win because this is clearly false imprisonment.
b. will lose if she had a reasonable means of escaping and voluntarily consented to the
confinement.
c. has committed the tort of malicious prosecution.
d. would lose on the false imprisonment charge, but could win against her parents if she
brought a suit on a charge of intrusion.
The tort of false light imposes liability if the matter in question is objectionable to a
reasonable person but is not necessarily defamatory.
a. True
b. False
Which of the following can be raised as a defense to a claim of defamation?
a. That the statement was true.
b. That there was a constitutional privilege to comment about the plaintiff who is a
public figure and that the statement was made without malice.
c. That there was a conditional privilege to make defamatory comment on another’s
statements in order to protect legitimate self-interest.
d. All of these.
The test under the one-year provision of the statute of frauds is whether the terms of the
contract make it possible for performance to occur within one year.
a. True
b. False
A corporation whose principal place of business operation is Florida must be
incorporated in Florida.
a. True
b. False
Perry is building his house and orders a hot water heater from Jones Co. to be installed
by them. The hot water heater they sent has a 45-gallon capacity when Perry ordered a
60-gallon capacity. Jones cannot provide a 60-gallon heater for two months, so Perry
cancels the contract and gets a heater from Stosill’s. Jones Co. says it must be allowed
to install the heater purchased from Stosill’s. What result?
a. Jones wins; Perry can only cancel the contract as regards the goods.
b. Jones wins; Perry can only cancel if installation is also delayed two months.
c. Perry wins since the contract breach goes to the whole contract.
d. Perry can cancel the whole contract, but he is then limited in his recovery of
damages.
The Food and Drug Administration is the oldest federal consumer protection agency.
a. True
b. False
The shareholders elect the key corporate officers.
a. True
b. False
The most important element in determining whether a sales contract has been made is
the:
a. language of the contract.
b. fact that the terms of the offer and acceptance are exactly alike.
c. number of open terms.
d. intention of the parties to make a contract.
Three torts comprise the misuse of legal procedure: malicious prosecution, wrongful
criminal proceedings, and verbal abuse.
a. True
b. False
Darinel insures a $150,000 building with Morales Insurance Co. for $50,000 and with
Washington Insurance Co. for
$100,000. The building is partially destroyed by fire, causing $25,000 in damages.
Darinel will be able to collect:
a. one-third of the damages from Morales Insurance Co.
b. one-half of the damages from Morales Insurance Co.
c. from neither Morales nor Washington since it was fraudulent to purchase policies
covering the same property from two different insurance companies.
d. $25,000 from either Morales or Washington Insurance Co., but cannot collect from
both insurers.
Embezzlement and forgery are considered white-collar crimes.
a. True
b. False
In most statutes granting an accountant-client privilege, it belongs to the client and not
to the accountant.
a. True
b. False
In recent years, the courts have unanimously reinforced the common law doctrine of
employment at will.
a. True
b. False
Which of the following is not generally required in order to have a valid contract?
a. Mutual assent
b. A lawful purpose
c. Fairness of the bargain
d. Parties who have contractual capacity
Consumer leases are treated no differently than business leases under the UCC.
a. True
b. False
Mark, a college student, agreed to sell his horse to Henry for $1,000. The contract
required Mark to take the horse
on that same day to Idlewild Stables where Henry was going to board the horse. Henry
paid Mark the money, patted the horse and said, “I’m glad you’re mine, you beauty,” and
drove off. Mark then led the horse into the trailer and set off for the two-hour drive to
Idlewild. Has there been a sale?
a. No, not until delivery to Idlewild.
b. No, not until Henry sees the horse again.
c. Yes, since Henry already paid for it.
d. Yes, since the contract was made earlier in the day.
Which of the following is correct with respect to a grand jury?
a. The grand jury decides guilt or innocence of the defendant.
b. The grand jury always hears testimony from the defendant.
c. The grand jury can issue an indictment if it finds sufficient evidence to justify a trial
on the charges alleged.
d. None of these.
A distribution in a partnership may be:
a. a payment made to compensate a partner for services rendered to the partnership.
b. a division of profits.
c. repayment of a loan to a partner.
d. All of these.
A reasonable person, as used in the law of torts, is a fictitious individual who is always
careful, prudent, and never negligent.
a. True
b. False
Courts treat contracts of incompetents and intoxicated persons essentially the same,
except they are stricter with
intoxicated persons because of intoxication’s voluntary nature.
a. True
b. False