Archives: Quiz

Dissociation refers to those situations in which the RUPA requires a partnership to wind up and terminate. A valid contract is one that meets all of the requirements of a binding contract. Answer: T In a sale of goods, the […]

A bank is permitted by statute to remove an original paper check from the check collection process and send instead of it a substitute check. A bankruptcy petition may be filed by one creditor of a debtor as long as […]

Assignment of a partner’s interest will cause dissolution. Under the RUPA, a partner is a co-owner of partnership property. Answer: F When the agency terminates, the agent’s duty of confidentiality continues. Answer: T Under the common law, a partnership was […]

A principal may generally revoke the authority of an agent at any time. Most student loans cannot be discharged under Chapter 13. Answer: T An agency contract appointing the agent for a period of more than one year must be […]

The Model Business Corporation Act is a state statute that, like the UCC, has been adopted by all of the states in the United States to make state incorporation statutes uniform throughout the United States. A principal who authorizes his […]

A general partnership is formed without any formality and no documents need be filed with the state. A totten trust is revocable by the creator. Answer: T Article 9 of the UCC governs financing transactions involving security interests in real […]

A noncontractual promise may be enforceable where there has been justifiable reliance on the promise. Agricultural and urban runoff are examples of point source pollution, which is inherently more difficult to control than nonpoint source pollution. Answer: F A signature […]

The term “past consideration” is not really consideration at all because the law will not find a contract where there is no bargained-for-exchange. Bailments for the bailee’s sole benefit are usually limited to the gratuitous loan of personal property for […]

The state may bring an action for involuntary dissolution of a company if the corporation has not paid its annual franchise tax. A preliminary hearing is held in a criminal case to determine whether there is probable cause to believe […]

White-collar crime is defined as a nonviolent crime usually involving deceit, corruption, or breach of trust. Under the common law, in order to be enforceable, a modification of an existing contract must be supported by mutual consideration. Answer: T The […]

Title VII of the Civil Rights Act of 1964 prohibits employment discrimination on the basis of race, color, gender, religion, or national origin in any employment-related process. The principle of stare decisis gives stability to our system of jurisprudence. Answer: […]

A patent last for life, while a copyright ends after fifty years. The SEC would like to adopt some new rules to protect investors. What factors should it consider as part of the administrative process? Answer: Administrative rules can be […]

Land and interests in land are considered “real property.” The principal has the duty to provide the employee with reasonably safe conditions of employment and to warn the employee of any unreasonable risks involved in the employment. Answer: T Discuss […]

A witness to a will who is “interested” will be disinherited or disqualified. Assume that you and your best friend have decided to form a partnership after graduation. You have both studied business law, so you both know the importance […]

Specific performance is an equitable remedy which seeks to compel the party in breach to perform the contract according to its terms. Warrick makes a $10,000 investment in a debenture issued by Wryteway Company. Warrick is now an unsecured creditor […]

Bob’s brother, Steve, planned to visit over Labor Day weekend. Together they planned to build a deck in Bob’s backyard. Bob ordered the lumber, concrete, nails, and other supplies to be delivered on Friday. He also arranged to rent a […]

Accountants are exempt from civil suits based on the Racketeering Influenced and Corrupt Organizations Act. What is the doctrine of promissory estoppel, and when is it used? Answer: Promissory estoppel is a doctrine used to enforce noncontractual promises where there […]

Indorsers of all instruments incur primary liability on the instrument. Collecting banks give to a transferee the same basic warranties as those given by other parties who transfer commercial paper, except they also may give encoding warranties. Answer: T The […]

The Restatement Third, Torts, completed and approved in 2004, covers torts that involve economic loss not resulting from physical harm to persons or property. Ordinarily, members of manager-managed LLCs have duties to the LLC and its members by reason of […]

When one party breaches the sales contract, the Code places the risk of loss on that party. In what three situations will a seller recover the price of goods plus incidental damages? Answer: The Code permits the seller to recover […]

Attachment must occur in order to make a security interest enforceable against the debtor and against third parties. The U.S. Supreme Court can invalidate a law if it conflicts with the U.S. Constitution. Answer: T The Gramm-Leach-Bliley Financial Modernization Act […]

The act-of-state doctrine provides that to maintain international relations and trade, a host country must refrain from imposing its laws on a foreign sovereign nation present within its borders. Jesse purchases 50 shares of Mountain Ridge Corporation stock. Explain what, […]

The UCC permits an oral agreement for the sale of goods to be enforced against a party who admits to the contract in court, even though the statute of frauds requires the agreement in writing. A defective acceptance does not […]

Incorporation statutes usually provide for both voluntary and involuntary dissolution of a corporation. Directors may vote by proxy when they are not able to be present for a meeting. Answer: F Pointing an unloaded gun at someone who believes it […]

A minor’s declaration of trust is voidable. The Labor-Management Reporting and Disclosure Act is aimed at eliminating corruption in labor unions. Answer: T The term mala prohibita refers to the bad act element of a crime. Answer: F The Congressional […]

Corporations today outnumber unincorporated business associations plus sole proprietorships. The Statutory Close Corporation Supplement to the Model and Revised Acts applies only to corporations having fewer than forty shareholders. Answer: F ‘Dissolution’ of a partnership and ‘termination’of a partnership are […]

All price discrimination is illegal under the Robinson-Patman Act. All conversions are trespasses but not all trespasses are conversions. Answer: T A duty may not be delegated if there is an express provision in a contract against delegation. Answer: T […]

Compliance with a legislative enactment or administrative regulation does not prevent a finding of negligence if a reasonable person would have taken additional precautions to avoid harm. A dissolution may be judicially decreed if a proceeding is brought by the […]

Ron offers to sell Pete his stamp collection. Pete gives Ron $10 to induce Pete into keeping his offer open for a week. If Ron decides on day four of the week that he really does not want to sell […]

If a will was burned in an electrical fire that destroyed the testator’s home, the will is presumed to be revoked. Some states have broadened their lemon law coverage to include used cars and motorcycles. Answer: T A reasonable person, […]

In equal protection cases involving economic regulation, the courts use the rational relationship test. To qualify as an innocent landowner under SARA, a person must have, at the time of acquiring the property, asked about the previous ownership and uses […]

In order for Mitchell, the owner of a cement factory, to obtain a permit from the Colorado Environmental Protection Agency in a PSD area, he must demonstrate that his factory will utilize the best available control technology. The board of […]

If an anticipatory repudiation substantially impairs the value of the contract, the aggrieved party may: a. await performance for a commercially reasonable time. b. resort to any appropriate remedy for breach. c. All of the above. d. None of the […]

In which of the following ways does a state constitution differ from the U.S. Constitution? a. State constitutions are often more restrictive of rights than the U.S. Constitution. b. A state constitution can guarantee rights beyond those provided in the […]

Which of the following is NOT a purpose of federal securities regulation? a. To ensure that only worthwhile securities are sold in interstate commerce. b. To ensure adequate disclosure by issuers of securities. c. To ensure that inside information is […]

The RULPA specifies the events that will trigger a dissolution, after which the limited partnership’s affairs must be liquidated. These events include which of the following? a. The expiration of the time period specified in the certificate. b. The unanimous […]

Enforcement and interpretation of the Truth-in-Lending Act was given to the: a. Commerce Department. b. Justice Department. c. Federal Trade Commission. d. Federal Reserve Board. Jerry received a check from McGregory Corporation as a dividend on his preferred shares. Two […]

An obligation imposed by law where there has been no agreement or expression of assent by word or act on the part of either party involved is a(n): a. implied in fact contract. b. express contract. c. void contract. d. […]

Maria posted several signs in the neighborhood offering $50 for the return of her lost cat. Dave calls to get a description of the cat and tells Maria, “I’ll look for your cat.” A contract is formed by Dave’s call […]

Roscoe Braun, who lives in Cleveland, receives a mailing from Florida from the SwampLand and Reclamation Project. It states that the Brauns can purchase one-acre sites as part of a newly planned development located in Leon County, Florida. The Brauns […]

Al owes Tracy $500, due June 1. Al, Tracy, and Ted mutually agree that Ted will pay Tracy instead of paying Al the money Ted owes Al, and Al will be discharged from his debt to Tracy. Such an agreement […]

The Revised Act permits the board of directors to adopt certain charter amendments without shareholder action, unless the articles of incorporation provide otherwise. These amendments would include: a. extending the duration of a corporation if it was incorporated when limited […]

To accomplish the basic purposes of contract remedies, which of the following limitations have NOT been imposed upon monetary damages? a. Foreseeability. b. Certainty. c. Mitigation. d. Restitution. Steven makes a material misrepresentation of fact regarding his motorcycle to Thelma […]

Assume there are no provisions in the corporation’s articles of incorporation or bylaws regarding quorum requirements. If there are 13 total directors of General Grain Corporation and the minimum number of directors are present to transact business, how many votes […]

Sylvan Learning, The UPS Store, AAMCO Transmissions, H&R Block, and Lawn Doctor are examples of what kind of vertical marketing channel? a. Wholesaler-sponsored voluntary group b. Contractual channel system c. Administered system d. Retailer-owned cooperative e. Conventional marketing system When […]

It is important to know the history of retailing because it: a. teaches you the basics of retailing. b. gives you past retailing ideas that you can use today. c. helps you to understand current retailing theory. d. will help […]

_____ price fixing occurs when a retailer collaborates with the manufacturer or wholesaler to resell an item at an agreed upon price. a. Deceptive b. Horizontal c. Vertical d. Negotiated e. Coordinated What do the formats of stores such as […]

The _____ method of merchandise planning requires that, in addition to a base stock level, there will be a variable amount of inventory that will increase or decrease at the beginning of each sales period. a. base level b. base […]

Which variable of the retailing mix has the greatest influence on a consumer’s initial perception of a retailer? a. The store’s personnel b. The store’s price points c. The store’s promotional campaign d. The store’s merchandise e. The store itself […]

Reductions in the price of an item that are taken in order to stimulate sales are termed: a. maintained price cuts. b. promotional price cuts. c. shortages. d. markdowns. e. initial price cuts. The eight marketing functions are buying, selling, […]