Archives: Quiz

Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination in Employment Act do not apply to U.S. citizens employed abroad by U.S. employers or by foreign companies controlled by U.S. employers. […]

Sexual harassment is covered by Title VII. Only the intentional destruction of personal property and not the use of the property in an unauthorized manner can give rise to a cause of action for conversion. Answer: F The Code and […]

If an agent exceeds his actual and apparent authority, the principal is not bound, which makes the agent a party to the contract. A friendly fire is one that is contained in its intended place such as a fireplace, stove, […]

Criminal sanctions for accountants are limited to punitive fines. A promisor and a promisee may provide that the benefits under a contract will never vest in a third person. Answer: T Julie writes a letter to Mitchell authorizing him to […]

Under the Magnuson-Moss Warranty Act, a seller who makes a written warranty cannot disclaim any implied warranty. The liability of partners for a tort or breach of trust committed by any partner is unlimited, personal liability. Answer: T An employee’s […]

If Sheree, a county commissioner, threatened Brent that unless she received a 15 percent interest in his proposed development she would use her influence to prevent approval of the development, she has committed criminal extortion. Glenn indorsed his paycheck by […]

Disaffirmance may be express, but it may not be implied. The 1933 Act imposes only civil, not criminal, sanctions for violation of its provisions. Answer: F In most statutes granting an accountant-client privilege, it belongs to the client and not […]

What are the requisite elements of fraud? Al owns a farm that he believes is worth $150,000. Betty knows that there is oil under the farm and offers Al $160,000 for it. Al is suspicious and asks her why she […]

In interpreting a contract, terms which have been separately negotiated are given priority over standardized, pre-printed terms. Watkins Manufacturing has furniture, some of which it has sold to Home Interiors, stored in Central Warehouse. It is to be delivered without […]

The International Monetary Fund was established in 1945 to promote international monetary cooperation and now has approximately 50 member countries. Legal detriment means the obtaining by the promisor of that which he had no prior legal right to obtain. Answer: […]

In order to violate the FTC rules on advertising, a product would have to be affirmatively mislabeled. Azurapi Corporation plans to start marketing products worldwide. What forms of multinational business enterprise are available? What factors should influence the decision on […]

Monetary damages are the most frequently granted remedy for breach of contract. To sustain a case of fraud in the inducement, the injured party must prove that he actually relied upon the false representation. Answer: T What is the purpose […]

The UCC treats merchants more leniently than others in transactions involving goods. The failure to appoint a trustee will destroy a trust. Answer: F About half of all bankruptcy petitions are involuntary petitions. Answer: F Under the Code, a contract […]

Title VII applies only to employers with 15 or more employees. Banks like electronic funds transfers because they eliminate the float time that a drawer enjoys on a checking account and the paperwork involved in processing checks. Answer: T Charles […]

Under Revised Article 3, a promise to pay only out of a particular fund will destroy the negotiability of an instrument. Presenters’ warranties are exactly the same as transferors’ warranties. Answer: F The distinction between horizontal and vertical restraints often […]

An express trust may be found if the intent of the grantor to create a trust is unmistakable. A person who knows that an instrument is overdue or has been dishonored cannot become a holder in due course. Answer: T […]

Discuss the three types of privileges that are defenses to defamation. How do they differ? In what context are they used? Why do these defenses exist? A limited partnership agreement may not provide that limited partners have the right to […]

Upon the lessor’s breach, the lessee may protect himself by leasing substitute goods. A proxy is revocable to the same extent as an agency. Answer: T When the power of eminent domain is exercised, the owners must be given the […]

In an assignment or delegation, the third parties’ rights or duties arise after the contract is made. The basic remedy for misrepresentation is restitution. Answer: F If the partnership is bound by a contract, then each general partner has unlimited […]

If a contract is not clearly a destination or a shipment contract, the law assumes that it is a shipment contract. Tender can be made any time of the day or night when the seller feels like delivering the goods. […]

The law assumes that respective performances under a contract are concurrent conditions, unless there is an agreement to the contrary. The operation of agency involves at least three persons. Answer: T The general law of contracts is displaced by the […]

A payee may be a holder in due course under the Code. Cheryl is a 17-year-old high school student who was elected homecoming queen and does part-time modeling to earn money for college. She has an important interview with a […]

A debtor has the option of using either federal or state exemptions; however, the 2005 Act imposes limits on the use of a state homestead exemption to the extent that the homestead was obtained through fraudulent conversion of nonexempt assets […]

What six elements must be present for the crime of larceny to exist? The validity of zoning is based on the police power reserved to the states. Answer: T Incellmed Corporation is in the business of developing genetically engineered pharmaceutical […]

The payor bank and the drawee bank are two separate banks. A drawee bank “accepts” a check by certification. Answer: T If a will was burned in an electrical fire that destroyed the testator’s home, it will be presumed to […]

All fifty states have enacted similar statutes regulating tender offers. Negligenceper se is a defense in a negligence case. Answer: F In most states, a contract under seal is binding without consideration. Answer: F A person who purports to act […]

The EEOC allows discrimination in employment because of differences in bona fide occupational qualifications. The computation of time for the one-year provision of the statute of frauds starts when the agreement is made, not when the performance is to begin. […]

Scienter is not a requirement for an accountant to be civilly liable under Rule 10b-5. All interests in property that can be conveyed carry the right to immediate possession. Answer: F An indorsement that says, “Pay to the Order of […]

If the buyer is insolvent and has not paid for goods received, the seller may reclaim the goods. The contract liability of the principal may depend upon whether the principal is disclosed, partially disclosed, or undisclosed. Answer: T The board […]

While employed and even after termination of employment, an employee cannot divulge trade secrets to a competitor. Insiders may refrain from trading on inside information rather than disclose it to avoid liability under Rule 10b-5. Answer: T An employer may […]

Closely held corporations sometimes impose supermajority or unanimous quorum requirements even though this creates the possibility of deadlock at the director level. Hugo wishes to raise money for his restaurant. He offers to sell stock to his brothers, sisters, aunts, […]

Ownership interests in manager-operated LLCs are not considered to be securities. Recording of a deed is necessary to pass title from the grantor to the grantee. Answer: F Duress is a valid defense to larceny, but not to murder. Answer: […]

Tim and his friend are playing catch in the back yard when Tim intentionally throws the ball over the fence into the neighbor’s yard. This is trespass to real property, even if Tim himself does not go onto the property […]

Henry prepared a registration for the first issuance of stock of the Winzell Corporation. Henry took the assignment very seriously and spent a great deal of time preparing the statement. Two years after the statement was filed, the SEC began […]

Clara types a letter to David setting forth the terms of their contract that falls within the statute of frauds. At the end of the letter, she types her name but does not sign her signature to it. If David […]

Generally, rights under an option contract are not assignable. Federal regulation prohibits a credit seller or lender from obtaining a nonpossessory security interest in household goods if the interest is not a purchase money security interest. Answer: T The Foreign […]

Under the common law, a landlord is under an obligation to provide or maintain the premises in a livable condition. Lydia makes a contract to purchase a used car on her seventeenth birthday. Six months later, her ratification of the […]

The bankruptcy and the equity definitions of insolvency are the same. In a Chapter 13 proceeding, only the debtor may submit a plan of reorganization. Answer: T Although, in general, internal affairs of foreign corporations are not regulated by the […]

Which of the following is correct with respect to the buyer’s obligation of payment? a. In the absence of agreement, payment is due at the time and place the buyer is to receive the goods. b. Payment by check is […]

In which of the following situations has conversion NOT occurred? a. When a drawee bank pays an instrument containing a forged indorsement b. When a drawee to whom a draft is delivered for acceptance properly returns it upon request c. […]

Which of the following are remedies for violation of the American’s with Disabilities Act (ADA)? a. Injunctive relief b. Reinstatement c. Back pay d. Compensatory and punitive damages e. All of the above Social Security benefits are funded by: a. […]

Andrew owns a store in Polk County. His trade extends throughout River City, but not beyond the county limits. He sells his store to Betty and, as part of the transaction, agrees not to engage in the same business anywhere […]

A crime that is punishable by a fine or imprisonment in a local jail is a: a. felony. b. white-collar crime. c. misdemeanor. d. mala prohibita crime only. A demand note is dishonored if the maker does not pay it: […]

Susan bought Green Acre subject to a $500,000 mortgage granted by Joe to First Bank. If Joe leaves for Bolivia and does not pay the mortgage, which of the following is true? a. Susan will not have to pay the […]

Participating stock will: a. share with common stock any additional dividends after preferred and common stockholders receive their normal dividends. b. accumulate dividends that will be paid later. c. participate in earnings only to the extent that all other classes […]

Mom and Carolyn own a farm as joint tenants. When Mom dies, her share will pass to: a. Carolyn. b. her heirs. c. her beneficiaries. d. Carolyn’s heirs. Millie, a tenant, abandons her apartment after 6 months, even though there […]

The Sarbanes-Oxley Act: a. establishes new criminal offenses as well as substantially increasing penalties for existing crimes. b. imposes fines and/or imprisonment of up to 20 years for knowingly altering, destroying, or falsifying any document with the intent of impeding […]

A number of states have enacted statutes exempting the following types of lenders from their usury laws: a. eligible lenders of installment loans. b. lenders for large consumer loans. c. Both (a) and (b). d. None of the above. Only […]

A draft is payable “to the order of Joe Jones or to bearer.” Sally finds it and demands payment. Should the drawer pay Sally? a. No, unless Joe Jones’ name is crossed off b. No, unless “bearer” is handwritten c. […]

The Uniform Electronic Transactions Act, in effect in all of the states, covers contracts not governed by Articles 2 and 2A. A limited partner’s financial obligation to the partnership may be increased if the: a. limited partner acts as agent […]