Archives: Quiz

An agreement that consists of two or more parts and calls for corresponding performances of each part by the parties is called a: a. partial contract. b. divisible contract. c. performance contract. d. divided contract. An administrative regulation: a. is […]

Ordinarily, a promise to perform an existing legal obligation is: a. not consideration. b. binding if the promisor promises to perform with extra care. c. binding if the promisor promises to perform to suit the personal satisfaction of the promisee. […]

An employment contract of indefinite duration is: a. terminable at will. b. invalid. c. automatically terminated after five years. d. terminable only for good cause. The usual method of creating an agency is by: a. express authorization. b. conduct. c. […]

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. […]

A provision in a residential lease stating that the landlord cutting off heat or water will not constitute an eviction is: a. valid. b. a stipulation. c. a covenant. d. unconscionable. State statutes designed to protect the public from the […]

Which of the following is not a defense to a surety? a. fraud practiced by the debtor of which the creditor was unaware b. lack of consideration c. lack of capacity on the part of the surety d. mistake Because […]

A limited partnership can be formed by one (1) or more __________ partners and one (1) or more __________ partners. a. unreserved; reserved b. active; silent c. licensed; unlicensed d. general; limited Which of the following is not a factor […]

How do the warranty provisions under the CISG compare to the provisions of the UCC? a. In most instances, the standards are the same. b. In all instances, the standards are the same. c. The CISG standards are stricter when […]

It is probable that a zoning variance would be granted: a. even though many of the neighboring property owners object. b. on the ground of hardship, regardless of whether the landowner created the hardship. c. to an outside advertiser to […]

Due process requires that a hearing generally be held before an agency may make a judicial decision: a. in all actions. b. when the action affects the community generally. c. when the action concerns a class of persons. d. when […]

Describe the rights of employers to monitor the e-mail of employees who are using their employers’ email system. a. Employers may monitor employees’ e-mails, but only if the employees have consented. b. Employers may monitor employees’ e-mails, regardless of whether […]

The warranty of merchantability guarantees that the: a. party in question is a merchant. b. product is fit for the ordinary purposes for which it is sold. c. product will remain fit for its normal use for the applicable statute […]

Each limited partner in a limited partnership is entitled to which of the following? a. the right to have the limited partner’s name as part of the limited partnership name b. the right to sue the general partner to protect […]

An absolute privilege is available as a defense to slander liability when: a. the statement is made to only a few people. b. libel exists. c. a witness testifies in a court proceeding. d. no intent to harm is present. […]

Acceptance of goods is not shown by: a. modifying the goods. b. payment for the goods if they are sent COD. c. resale of the goods by the buyer. d. use of the goods by the buyer in manufacturing other […]

A __________ insider is someone retained by the corporation for professional services, such as an attorney, accountant, or investment banker. a. professional b. corporate c. temporary d. virtual What is not a correct statement concerning the Fair Debt Collection Practices […]

Title VII protects members of which racial grouping(s)? a. black only b. black, Native American, and Asian-Pacific c. white only d. all racial groupings A bill of lading that consigns the goods “to bearer” is called a: a. nonnegotiable bill […]

The standard statute of frauds: a. requires full disclosure in the case of consumer sales on credit. b. requires a seller of real estate to obtain a broker’s license. c. specifies the punishment of perjury. d. requires that a contract […]

Regarding distribution of assets upon winding up a partnership, what is paid first? a. debts to outside creditors b. return of capital c. debts of partners who are creditors d. profits A taker of an instrument who is a holder […]

A limited liability partnership must include which of the following terms in its name? a. LLP b. limited liability partnership c. either a. or b. d. neither a. nor b. In the absence of an express agreement permitting continuation of […]

Failure to mitigate damages limits recovery to: a. damages that would have been sustained had the plaintiff mitigated the damages where it was possible to do so. b. nominal damages and punitive damages. c. damages for consequential loss. d. exemplary […]

Eligibility for membership on a board of directors is determined by all of the following except: a. statute. b. certificates of filing. c. articles of incorporation. d. bylaws. Bankruptcy results in a discharge of contractual obligations by __________. a. default […]

Pursuant to the __________ theory, when a corporation is so dominated and controlled by shareholders, officers, and/or directors that the separate personalities of the individuals and the corporation no longer exist and there is a wrongful use of that control, […]

Which of the following is an incorrect statement about directors? a. Their eligibility requirements may be found in the bylaws. b. Bylaws may require that directors be shareholders in the corporation. c. The board of directors has authority to manage […]

Which is not a correct statement about deeds? a. The grantor must sign the deed. b. A deed must be recorded to effectively pass title. c. The fact that a deed is recorded provides notice to the world about who […]

The RMBCA provides that shareholders: a. have no preemptive rights unless the articles of incorporation so provide. b. have preemptive rights regardless of what the articles of incorporation provide. c. cannot have preemptive rights. d. have preemptive rights with respect […]

If an offer requires that acceptance be communicated by a specific date and the acceptance is properly dispatched by the offeree on the final date, a. no contract is formed, since the offeror will undoubtedly receive the dispatched acceptance after […]

Initially, ratification is a question of: a. intention. b. consideration. c. form. d. implication. A system in which a central government is given power to administer to national concerns and individual states administer to local concerns is called: a. bicameral. […]

A franchisor can require a franchisee to purchase certain supplies from the franchisor at an established price. If a seller is an expert and gives an opinion as an expert, then he or she usually creates an express warranty. Answer: […]

Guy is Hot Java Company’s majority shareholder. Guy decides to sell his Hot Java stock. The sale will be an effective transfer of the control of the company. Does Guy owe a duty to Hot Java or its minority shareholders […]

According to the Foreign Sovereign Immunities Act, a foreign state that has committed a tort in the United States is protected from the jurisdiction of the U.S. courts. The Second Amendment to the U.S. Constitution reserves all powers not delegated […]

Bylaws are the internal rules of management for a corporation. All oral contracts are enforceable under the UCC. Answer: F Home equity is the portion of a home’s value that is “paid off.” Answer: T In most contracts, promises of […]

Under the Age Discrimination in Employment Act of 1967, a plaintiff must prove that he or she was replaced by a person “outside the protected class.” There are additional disclosure requirements for a higher-priced mortgage loan. Answer: t Article 2 […]

Children must be at least thirteen years old to work in hazardous occupations. All states have intermediate appellate courts. Answer: F The First Amendment protects defamatory speech. Answer: F Generally, federal securities law are patterned after state’ antifraud laws. Answer: […]

Monopoly power may be proved by evidence that a firm used its power to control prices. The price that a secured party obtains on a sale of collateral is all that the creditor can recover on the debt. Answer: F […]

Antitrust legislation was created because of the belief that competition leads to lower prices. No contract can prohibit delegation of the duties of the contract. Answer: F Under the Sarbanes-Oxley Act, accountants must retain working papers relating to an audit […]

Life tenants are persons who share ownership rights simultaneously. A copyright owner must place a © or an ® on the work to have the work protected from copyright infringement. Answer: F There are three categories of property. Answer: F […]

If a contractual promise is not fulfilled, the person who made it may be required to perform the promised act. A partnership cannot be a shareholder in an S corporation. Answer: T Federal law encourages private lenders to modify mortgages […]

The courts consider legitimate competitive behavior permissible only if it does not result in the breaking of a contract. If a life insurance applicant pays a premium but dies before the physical exam, there is obviously no coverage. Answer: F […]

A business firm may have to comply with the laws of any jurisdiction in which it actively targets customers. Under the Restatement (Third) of Torts, accountants can be held liable for negligence to any third parties. Answer: F A court […]

Under the UCC, parties to a contract cannot limit or exclude consequential damages. The basis for an employee’s contribution to Social Security is the employee’s age. Answer: F Punitive damages are generally available in contract disputes. Answer: F If the […]

A written stop payment order is valid for only thirty days. Confiscation occurs when a government seizes private property for an illegal purpose or without just compensation. Answer: T A buyer who obtains substitute goods to replace goods that a […]

A customer has sixty days from the date of receipt of a statement of an electronic transfer to notify the financial institution of any errors. A court can refuse to enforce a contract that the court deems to have been […]

Fraud occurs only when there is reliance on a statement of opinion. Equity is a branch of law, founded in justice and fair dealing, that seeks to supply a remedy when no adequate remedy at law is available. Answer: T […]

A firm offer by a merchant may be oral. Dominique, a certified public accountant, provides accounting services to Eagle Corporation. The services include preparing Eagle’s financial reports and issuing opinion letters based on the reports. In 2008, Eagle falls into […]

Consideration is the value given in return for a promise. A buyer in the ordinary course of business has priority over any security interest created by the seller. Answer: T Substantive due process focuses on the substance of legislation. Answer: […]

Private parties cannot sue violators of Section 10(b) and Rule 10b-5. A mechanic’s lien is possessory. Answer: F An accountant’s liability under the Securities Act of 1933 requires privity of contract with the purchaser of a security. Answer: F An […]

An executed contract is one that has been fully performed by both parties. Conditioning the sale of one product on the purchase of another is an exclusive-dealing contract. Answer: F Discharge in bankruptcy is no defense on any instrument regardless […]

A void contract is enforceable if it is in writing. It is presumed that a co-tenancy is a tenancy in common unless it is clear that the parties intended to establish a joint tenancy. Answer: T Most franchise agreements provide […]

A joint venture resembles a partnership but is taxed like a corporation. A limited liability company can sue or be sued, enter into contracts, and hold title to property. Answer: T SEC Rule 10b-5 applies to almost all cases involving […]