Archives: Quiz

Solver can generate a Sensitivity report for integer models. Point estimates do not provide any indication of the magnitude of the potential error in the estimate. Answer: TRUE A good regression model has the fewest number of explanatory variables providing […]

In a MATCH function, the default value for match_type = 0. The Excel function NORM.DIST finds probabilities for the standard normal distribution. Answer: FALSE The expected value and variance of the Poisson distribution are equal to λ. Answer: TRUE A […]

D drew a $100 check on ABC Bank payable “to the order of P.” P cashed the check at First Bank. First Bank is an agent of P until the drawee bank pays the check. States have authorized the formation […]

Legal sufficiency of consideration and adequacy of consideration are virtually synonymous terms. It is common for transactions to involve multiple contracts. Identify at least four contracts that might be involved in Costello’s sale of land to Johnston. Answer: Possible contracts […]

The “corporate veil” is most likely to be pierced in the case of closely held corporations and in parent-subsidiary relationships. What is the doctrine of liability for a tort connected with a contract? Answer: Minors are generally liable for their […]

An indorsement in trust creates a trust for the benefit of himself or others. Some states prescribe by statute a time period, usually one year, in which a person who reached the age of majority may still disaffirm contracts made […]

Unauthorized signatures include both forgeries and signatures made by an agent without authority. Under the rule in Hadley v. Baxendale, only damages foreseeable at the time of entering into the contract can be recovered. Answer: T Misty wrote a check […]

Everett delivers to Neely nonconforming goods. Neely accepts the goods, but upon discovering that they are defective, he rightfully revokes acceptance by timely notice to Everett. Discuss which party bears the risk of loss if the goods are then destroyed […]

The parol evidence rule applies only to integrated contracts, meaning those in which the parties have assented to the written agreement as the statement of the complete agreement between them. List the implied warranties imposed by law on an assignor […]

If Gil assigns his lease to Jim, Gil has no further obligations to his landlord. A maker must sign in the lower right-hand corner of the instrument. Answer: F An example of successful land purchases made by agents for an […]

The Magnuson-Moss Warranty Act contains disclosure and labeling requirements for sellers of consumer products containing a written warranty. An “I.O.U.” is a negotiable instrument. Answer: F A stepchild will not ordinarily inherit under intestacy statutes unless legally adopted. Answer: T […]

The same conduct cannot be both a crime and a tort, which is a civil wrong. A limited liability partnership is a limited partnership which falls under special statutes not requiring filings to limit partners’ liability. Answer: F The majority […]

In the case of Hochster v. De La Tour, the plaintiff was allowed to treat the repudiation by De La Tour as breach of contract and immediately bring suit. Mediation, like arbitration, is often a compulsory process in which the […]

The business law topics of contracts, agency, property, and trusts are governed primarily by the common law. If the SEC requires an amendment to a registration, the twenty-day waiting period begins again. Answer: T A proxy is revocable to the […]

Carolee, Joanna, and Ellen form Capital City Partnership. Carolee contributes expertise; Joanna, $15,000; and Ellen, $20,000. After a year, Joanna adds $12,000 as a loan. Ten years later, Capital owes $44,000 to creditors, total assets are $112,000, and the partners […]

An accountant is negligent if she does not exercise the degree of care a reasonably competent accountant would exercise under the circumstances. If the seller of goods is an expert and gives an opinion with regard to the goods, the […]

Nonfraudulent representation is made without scienter. The State of Minnesota has been negotiating with the Canadian government on issues involving acid rain and eventually reaches an agreement with Canadian officials. This is a valid treaty under the United States Constitution. […]

Garnishment is only a post-judgment remedy. After passage of a week, the buyer of six crates of strawberries will be deemed to have accepted the goods. Answer: T A liquidated damages provision sets forth the amount of damages the parties […]

Sandy’s private secretary promises not to disclose the contents of a letter she typed if Sandy will give her the next day off with pay. If the secretary takes the day off, Sandy does not have to pay her for […]

Ownership of real property for a definite time or for the life of a person is a freehold estate. The RUPA requires a central filing of a statement of partnership authority specifying the names of partners authorized to execute instruments […]

In many states, judges are elected by the voters for a stated number of years. Buying an instrument for a price less than face value means the buyer had notice of a defense or claim against the instrument. Answer: F […]

Brad doesn’t like Carl and especially dislikes Carl’s new felt hat, so he intentionally knocks it off Carl’s head in order to embarrass Carl. Brad has committed a battery. Discuss the types of deeds that can be used to transfer […]

A person who negligently places another person in imminent danger is not liable for injury sustained by a third-party rescuer. Revocation of acceptance requires notice to the seller, whereas rejection does not. Answer: F Ready Equipment, Inc. authorized and specified […]

Explain the reasons why the accountability of the management of a corporation is a cultural issue. The duration of a copyright is the same whether the copyright is owned by the author or if it is a work for hire. […]

The FTC has the power to seek in a federal district court a preliminary injunction, pending completion of administrative proceedings, whenever the agency has reason to believe that a person has been violating FTC rules. The purpose of the Office […]

When the method used by an offeree to accept is unauthorized, the traditional rule is that the acceptance is effective when received by the offeror, provided that it is received within the time during which the authorized means would have […]

A payee cannot be a holder in due course under the Code. Discharge by performance is the most frequent method of discharging a contractual duty. Answer: T Article 8 of the UCC covers rules applicable to transfers of investment securities. […]

If Dan sublets his apartment to Susan for the summer, Susan is primarily liable to pay the landlord the rent. You are assigned to participate on a corporate committee responsible for creating a program to comply with the Federal Organizational […]

The delivery terms “ex-ship” and “no arrival, no sale” indicate that the contract is a shipment contract. Contracts of a ward may be ratified by his guardian during the period of guardianship. Answer: T It is possible for a seller […]

The majority of states allow the injured party who has been induced to enter into a contract by fraud to recover only “out-of-pocket” damages equal to the difference between the value of what she has received and the value of […]

An agreement to sell the entire production of a particular plant is a requirements contract. Farmer Brown brings his crop of wheat to the local grain elevator where it is stored along with the grain of several other farmers. A […]

A shareholder who opposes a fundamental change to the corporation must make a written demand within the prescribed time period in order to be entitled to payment for his shares. The Civil Rights Act of 1991 provides that victims of […]

Marie owes Nathan $900 and the parties agree that Marie will paint Nathan’s house in satisfaction of the debt. The debt is not discharged until Marie performs the substituted agreement by painting Nathan’s house. When reviewing factual determinations of an […]

To perfect a security interest in personal property, a financing statement may be filed, eith er before or after the security interest attaches. A voluntary choice from among perfectly legitimate alternatives may in some instances constitute economic duress. Answer: F […]

The Weichert Co. Realtors v. Ryan case found that the parties formed an express contract by mutually manifesting assent to the essential terms. A limited liability company is a relatively new form of unincorporated business association that blends the advantages […]

To recover on a claim under workers’ compensation, the worker must prove the employer was negligent. Divorce or marriage will result in a revocation of a will. Answer: F The creditor’s rights against the principal debtor are determined by the […]

Ad substantiation, as required by an FTC policy statement, requires a company to survey consumers to test their perception of a product. An agent will not be authorized to act for a principal unless he receives some consideration for the […]

Mala in se crimes are those crimes that are not morally wrong but are declared wrongful by the legislature. Arthur is authorized under a written power of attorney to collect accounts for Peter. Peter dies, and there is no notice […]

The Bill of Rights was approved by the first Congress to guarantee that the federal government would not abuse its powers. The United States Postal Service plays an important role in consumer protection as it files many cases to close […]

The student government of State University has a contract with a famous rock band to perform at the university on homecoming weekend. The band cannot assign its rights and delegate its duties under this contract. A transferee who has been […]

The Fair Labor Standards Act regulates child labor in agricultural employment. Governments can use nontariff barriers to give local industries a competitive advantage. Answer: T Administrative hearings are held before a jury, just as are court hearings. Answer: F By […]

A drawee bank is primarily liable after it accepts the check. When a treaty and a right declared under a subsequent federal statute conflict, the treaty must prevail. Answer: F Restrictive covenants are strictly construed against the party asserting their […]

A resulting trust depends on a contract or agreement as evidenced by the parties’ acts. Andria, an attorney, has a personal injury case which is set for trial next week. She needs a good doctor to testify on behalf of […]

A promissory note is an instrument that involves three parties in three capacities. The courts may not create implied trusts. Answer: F The transfer of real estate requires consideration to be valid. Answer: F The principal objective of antitrust law […]

A corporation may purchase its own shares only out of earned surplus unless the articles of incorporation or the shareholders permit purchase out of capital surplus. Misuse or abuse of the product is a defense to an action brought under […]

A copyright would protect a photograph. A thief stole Harold’s car and installed a DVD player in it. Later the police caught the thief and returned the car to Harold. Harold now owns the DVD player by accession. Answer: T […]

The UCC applies to real estate mortgages and trust deeds since they are security interests. The bankruptcy definition of “insolvency” is a financial condition such that the sum of one’s debts exceeds the sum of all one’s property at fair […]

Wurst & Wurst is the accounting firm that has been used by the Intercontinental Bank for over twenty years. Tim approached Alfred, a Wurst partner, at a cocktail party. Tim asked about the bank’s stability. Although Alfred knew that the […]

What is a condition? Give an example of each of the following types of conditions: condition precedent, condition concurrent, conditions subsequent. A trust for the establishment and maintenance of a public museum would be a charitable trust. Answer: T Like […]

The Securities Exchange Act of 1934 primarily deals with secondary transactions in stock. A license is generally subject to revocation by the property owner at any time. Answer: T Chapter 3 of the Bankruptcy Code contains provisions dealing with the […]