Archives: Quiz

Lance indorses a promissory note to Connie in exchange for consideration. Unknown to Lance, the note is not good because the maker’s signature was forged. Connie later attempts to present the instrument for payment to the original alleged maker, Lilly, […]

Betsy’s elderly father gave her written authority her to sell the family house. Her father lived in Arizona and she lived in Minnesota. After about two months she found a buyer for the house and signed an acceptance of the […]

Which person argued that a corporate manager’s primary responsibility is to the shareholders of the organization and that managers should make the company as profitable as possible while also complying with the law? a. John Rawls b. John Stuart Mill […]

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales business, a. the contract may indicate a method for determining the price, without stating a definite price. b. […]

The Foreign Sovereign Immunities Act (FSIA) provides that American courts generally cannot hear suits against foreign governments. Describe the three possible exceptions to this rule. Jolene hired Lacy to find a buyer for her house. Adam was interested in buying […]

At her neighbor’s garage sale, Constance buys a vanity dressing table from her neighbor, Carlos, for $160. Constance purchased the vanity table for her own personal use, without any knowledge that Carlos had signed a security agreement giving All Purpose […]

According to Michael Porter, a company should not undertake a corporate social responsibility project unless a. it is profitable for the company in its own right. b. it improves the company’s reputation. c. it truly makes a difference in the […]

If a buyer does not receive goods by the contract deadline, remedies available include all of the following EXCEPT a. incidental and consequential damages. b. cover. c. damages for non-delivery. d. cure. Chapter 13 bankruptcy a. is used by businesses […]

Under the Fair Debt Collection Practices Act, a collection company is legally permitted to a. call the debtor at any time of the day. b. call acquaintances of the debtor to tell them that the consumer is in debt. c. […]

Under the 1934 Act, an issuer must register with the SEC if a. it has not completed a public offering under the 1933 Act. b. its securities are not going to be traded on a national exchange. c. it will […]

Jim was a mechanic. One day when he attempted to weld a car’s gasoline tank, it exploded and he was hurt. He filed to collect workers’ compensation. His employer resisted on grounds that Jim had been negligent and had also […]

Which of the following are generally considered to be legal offers? a. placing an item up for auction b. catalog advertisements c. price lists d. a note scribbled on a restaurant napkin that includes the details of the offer Nevada […]

In a derivative lawsuit, any proceeds awarded by the court must be paid to the corporation, not the shareholders themselves. a. True b. False Which of the following is TRUE in cases based on claims of disparate treatment? a. The […]

Which of the following statements best exemplifies how society as a whole benefits from ethical behavior? a. Consumers are willing to pay more for a product they believe to be ethically produced. b. People feel better when they behave ethically. […]

Farmer Elvin is holding 200 pounds of potatoes in storage for Chef Noble but Chef Noble has breached the contract by failing to pay for the potatoes. If Farmer Elvin sells the potatoes to a local diner to make potato […]

Dr. Gavornne advises his very ill patients to prepare a living will. The purpose of a living will is to a. make a disposition of property. b. express a desire not to have extreme medical treatment that would prolong their […]

In Jones v. Clinton, the court held that a. Paula Jones did not demonstrate the essential elements for her claim. b. Paula Jones was entitled to a summary judgment. c. the case be dismissed because of the Presidents governmental position. […]

Jorgeson Co., on its website, promised the company would not give a customer’s personal information to third parties without the customers consent, but then gave out such information anyway. This practice violates Section 5 of the FTC Act. a. True […]

A buyer’s material breach gives the seller the right to refuse to deliver the goods. a. True b. False “Scriveners error is another (fancier) name for a typo. a. True b. False Answer: True The “tipper” of inside information can […]

Which of the following persons is NOT an agent? a. Diane, a shoe salesperson for a retail store. b. Tim, a real estate broker for a large real estate company. c. Craig, a telephone marketing employee. d. Harold, a trustee […]

Harriett raises and sells hippos. In order to keep her hippos happy and healthy, she feeds them Hippo Chow, which she buys from the local pet store. Under the UCC, Harriett is a. a merchant of both hippos and Hippo […]

Buddy was hired to play drums for a rock group scheduled to tour the Midwest. Part way through the tour, Buddy was tragically killed in a plane crash. The tour had to be discontinued until a new drummer could be […]

The Federal sentencing guidelines are just guidelines. Judges do not have to follow them. In a construction contract, there is a $1000 per day estimate of damages for each day that the contract runs over the completion date. The contractor […]

The accounting firm of Griggs, Macon, and Fiurre audits the financial records of Chasse Co. The Sarbanes-Oxley Act prohibits the accounting firm from providing consulting services to Chasse on human resource matters. Ricardo has agreed to sell his family farm […]

An Environmental Impact Statement must be prepared for every major federal action that significantly affects the quality of the environment. The two principal requirements of the Foreign Corrupt Practices Act involve bribes and grease payments. Answer: F First Federal loaned […]

Researchers who study happiness find that people expect material goods to make them happier than they actually do. Define and discuss the purposes of the “business judgment rule.” Answer: The business judgment rule is a common law concept that a […]

Identify the basic job of a President of the United States, the source of executive power, and three key powers associated with the position of President. Jacob has been quite ill. When three of his neighbors come to visit one […]

Opinion is generally a valid defense in a defamation lawsuit because it is not meant to be a factual statement. Big Corporation is served with a subpoena to turn over business records to an administrative agency. What are three possible […]

Texas v Johnson dealt with the legality of burning an American flag. Under the Equal Pay Act of 1963 an employee may not be paid at a lesser rate than employees of the opposite sex for tasks requiring equal skill, […]

Krista, the Director of Advertising at Trein, Inc., approved a series of magazine advertisements using a close-up photograph of celebrity look-alike models driving a train engine with the slogan, “Get on Board with Trein. Each ad included a signature, meant […]

Erica’s supervisor told her to arrange for a conference room at the Kelly Inn. Erica has express authority to contract for the room. If Velma, as a birthday present, assigns to Jim her contractual right to collect $50 from Wood […]

A draft is always a check, but a check is not always a draft. Singleton, an eighty-year-old widower, remarried. The next day, he made a will leaving everything to his son, Joey. A week after his marriage, Singleton died. How […]

Which of the following would probably not be required of employers to reasonably accommodate for religious beliefs? a. flexible scheduling. b. closing the business on Sundays. c. reassigning employees within the company. d. allowing employees to switch work schedules. When […]

Which of the following would be an example of a civil lawsuit? a. George is being prosecuted for bank fraud. b. The government has initiated an action against Jeff for operating a motor vehicle under the influence of alcohol. c. […]

The burden of proof required in a criminal case is: a. clear and convincing. b. a preponderance. c. beyond a reasonable doubt. d. highest degree of honesty. In the first decade of this century, music sales at American record labels […]

Which of the following Acts sets goals without regard to the cost involved in meeting the goals? a. Clean Water Act. b. Clean Air Act. c. Both the Clean Water Act and the Clean Air Act. d. Neither the Clean […]

Donna defaulted on her loan owed to Second State Savings and Loan. The loan was secured with Donna’s car. Donna used the car for personal and family reasons. Which statement is correct? a. Second State may take Donna’s car without […]

Congresswoman Sloan introduced a bill in the House of Representatives. If the bill is approved by the House committee specializing in that subject, the bill will go to: a. a Senate committee specializing in the subject matter of the proposed […]

Fact Pattern 30-1 David has worked as a CPA for Accountants R Us for about eight months. When his wife had a baby, he requested to take some time off. He believes he is allowed to do so pursuant to […]

Kyle was eating clam chowder soup in a restaurant when a very small piece of bone lodged in his throat. Fortunately, he was able to remove the bone with his fingers. However, he was upset by the incident and sued […]

The EPA brought an administrative action against Boch Industries for violating the Clean Air Act. The administrative law judge ruled in the EPA’s favor. Boch Industries: a. can appeal the decision to a U.S. Court of Appeals and then to […]

In order for a copyright holder to collect money damages from a person who used copyrighted material, it must be proven that: a. the infringement was intentional. b. the copyright holder sustained more than $500 in actual damages. c. the […]

Which statement is true about procedures for filing a Title VII case? a. The plaintiff must file within 60 days of the wrongdoing. b. The plaintiff must exhaust all legal remedies through the courts before filing a case with the […]

Molly and Craig are the original parties to a contract. Craig is obligated to design a Website for Molly. They subsequently make an agreement with Eric that Eric should take the place of Craig and assume all of Craig’s rights […]

Mentally infirmed Sasha contracts to purchase a piano for $2,500 in 60 monthly installment payments. Six months later she tries to void the contract on grounds of mental impairment. A court will: a. normally void the contract without requiring anything […]

When can shareholders of a corporation be held personally liable for the liabilities of the corporation. a. if corporate shareholders do not comply with the technicalities of corporation law. b. If they are corporate officers c. If they are corporate […]

Which of the following is not required to create a valid trust: a. mental capacity of the grantor. b. witnesses. c. a beneficiary(ies). d. property transferred to the trust. If the subject of the contract includes issues that may be […]

A major advantage of an Asset Protection Trust is: a. It is shielded from creditors that arise after the trust is established b. Its proceeds are tax-free. c. Its value cannot decline due to stock market fluctuations. d. It has […]

If a foreign company “dumps” goods on the United States market: a. the goods will be considered illegal goods and not be allowed to be sold in the United States. b. the United States will issue trade sanctions against the […]

A major motion picture distributor offers to provide a television station with three very popular, desirable films. However, as part of the agreement, the distributor requires that the television station also purchase four films that are not very desirable. This […]