Archives: Quiz

The growth of nonstore retailing growth can be attributed to: a. Accerelerated communication technology and changing consumer lifestyles. b. Heightened global competition and increasing use of private labels. c. The development of off price retailers and supercenters. d. The rapid […]

Sara holds 1,000 shares of stock in Starr, Inc., which she purchased based upon financial statements that Travis had prepared. She now realizes that the statements were false and wants to sue Travis for common law fraud. What is Travis’s […]

Which of the following is NOT covered by the Fair Labor Standards Act? a. Minimum wages. b. Hours of employment. c. Child labor. d. Defined benefit plans. Because documents affecting ownership of property are recorded, a chronological record of transactions […]

If Eilene, a shareholder, sues in a derivative suit, the judgment will be paid to: a. the shareholders as a dividend. b. Eilene directly. c. the corporate treasury. d. the board of directors. If a small manufacturer of vacuum cleaners […]

Trade secrets are most frequently misappropriated in which of these ways? a. An employee wrongfully uses or discloses such secrets. b. A competitor wrongfully obtains them. c. Through inadvertent disclosure in advertisements. d. Both (a) and (b). Of the following […]

The UCC permits a seller to limit or modify the buyer’s remedies for breach of warranty: a. in all cases. b. except for unconscionable limitations or for exclusions of consequential damages. c. in no cases, as this would be contrary […]

Juanita works for Chevco but owns no Chevco stock. She buys 10 shares of a new issue of company stock as a savings plan and afterward receives the signed registration statement, which contains an untrue statement of material fact. Because […]

Russell promises to deliver and install living room carpeting for Nina. Classify as an express, implied-in-fact, or implied-in law condition Nina’s notification to Russell of her choice of type and color of carpeting. Compare and contrast this condition with the […]

The right of dissent results in payment of: a. a damage award to the shareholder. b. a price in exchange for shares. c. treble damages for violation of the charter. d. a bonus to dissenting shareholders. An offer that is […]

The Sarbanes-Oxley Act has all but which of the following provisions? a. Creating a five-person Accounting Oversight Board with authority to review and discipline auditors. b. Creating severe civil and criminal penalties for enterprises that engage in the commission of […]

Which of the following is not correct regarding the relationship between an independent contractor and a principal? a. The contractor is liable under respondeat superior. b. The contractor generally contracts to perform services but is not controlled by the principal. […]

Which of the following is considered “goods” within the meaning of Article 2? a. An unborn calf. b. A field of corn still in the field. c. Timber which has been removed by the seller. d. All of these are […]

The rule which permits the jury to infer both negligent conduct and causation from the mere occurrence of certain events is: a. proximate cause. b. res ipsa loquitur. c. causation in fact. d. comparative negligence. A periodic leasehold tenancy may […]

How may an easement be created? a. By prescription. b. By express reservation. c. By necessity. d. All of the above. Identify the type of indorsement each of the following represents: a. Pay to Bill, for collection. b. Pay to […]

Which of the following would NOT be a promise statutorily made enforceable without consideration? a. Hawkins, in good faith, changes the quantity of square yards of carpet ordered from Grant Mills. b. Jones promises to pay his cousin’s past-due cell […]

Sam writes a check drawn on his account at First Bank to State University to pay his tuition. In this case: a. Sam is the drawer. b. the university is the drawee. c. the bank is the payee. d. Sam […]

Which of the following terms would indicate a destination contract? a. F.O.B. city of buyer. b. F.O.B. city of seller. c. C.I.F. d. F.A.S. seller’s port. __________ is/are any property other than an interest in real property. a. Goods b. […]

The U.S. Constitution reserves to the states or to the people: a. powers also delegated to the federal government by the Constitution. b. the powers the Constitution does not prohibit to the states. c. police power. d. employee safety matters. […]

Which of the following debts would be discharged in bankruptcy? a. Consumer credit loans for a stove. b. Property taxes on a beach house. c. Student loans maturing one-year prior to bankruptcy filing. d. Alimony payments past due. Which of […]

Under copyright law, the doctrine of works for hire states that: a. if an employee prepares a work within the scope of her employment, her employer is considered the author of the work. b. if an employee prepares a work […]

Identify what law would govern: (a) a sale of a computer between a U.S. company and a U.S. consumer; (b) an insurance policy sale between a U.S. company and a U.S. consumer; and (c) a sale of manufactured goods between […]

The duties of a trustee are: a. to carry out the purposes of the trust. b. to act with prudence and care in the administration of the trust. c. to exercise a high degree of loyalty toward the beneficiary. d. […]

General contract law states that contracts that have to be in writing must: a. specify the parties to the contract. b. specify the subject matter and essential terms. c. be signed by the party to be charged or by his/her […]

The common law system is used in most of Europe, Scotland, and Latin America. Which of the following would be considered to be a misrepresentation of a material fact for purposes of establishing fraud in the inducement? a. A statement […]

Generally, State A may exercise “long-arm” jurisdiction over a defendant located in State B if the defendant: a. once resided in State A. b. uses a product produced in State A. c. made a contract in State A. d. has […]

Fred is a concert violinist who is scheduled to perform at Carnegie Hall for the first time. He buys what he is told is a Stradivarius violin from a well-known, reputable dealer in quality violins, and he pays the going […]

The court in Moulton Cavity & Mold Inc. v. Lyn-Flex Ind. held that: a. the sweaters did not conform to the express warranty in the contract. b. if the seller does not perform his contractual obligations exactly, the buyer has […]

Which of the following need NOT be included in the certificate filed by a limited partnership? a. The name of the limited partnership. b. The name and address of the agent for service of process. c. The names and addresses […]

An agreement to refrain from a particular trade, profession, or business is enforceable if: a. the purpose of the restraint is to protect a property interest of the promisee. b. the agreement is for no longer than two years. c. […]

Voidable preferences include all of the following EXCEPT: a. a transfer of property of the debtor to or for the benefit of a creditor. b. payment of taxes owed to a governmental unit. c. a transfer of property while the […]

The Revised Act was amended in 2002 to provide: a. conversion procedures permitting a corporation to change its state of incorporation, thus allowing a foreign business to become a domestic business. b. domestication procedures permitting a foreign partnership or LLC […]

The __________ gives shareholders who elect such a right in the articles of incorporation the power to dissolve the corporation. a. appraisal remedy b. U.C.C. c. Statutory Close Corporation Supplement d. None of the above. A corporation may acquire all […]

A fraudulent misrepresentation: a. must be material to obtain rescission. b. must be material to recover damages. c. may be innocent, meaning the representation was made without knowledge of its falsity but with due care. d. need not have the […]

A federal agency that wishes to adopt administrative rules must do so in compliance with the: a. Administrative Procedures Act. b. U.S. Constitution. c. agency’s enabling statute. d. All of the above. The reasonable person standard is: a. external and […]

A principal has no duty to compensate his or her agent if: a. the agent breached the duty of obedience. b. the agent breached the duty of loyalty. c. it is a gratuitous agency. d. All these are correct. An […]

If incorrect, which of the following would probably be considered a misrepresentation of a material fact? a. “This is the one that I think is the best buy.” b. “This is the best computer on the market.” c. “This car […]

The concerted action requirement of the Sherman Act Section 1: a. may be established by an express agreement. b. is not met when a parent corporation and its wholly owned subsidiaries agree to a restraint in trade. c. requires factors, […]

Fred contracts to sell a certain tract of land to Mary for $20,000, but the contract is silent as to the time of delivery of the deed and payment of the price. In this case, the: a. payment of the […]

Which of the following is correct with respect to the Code’s approach to impossibility of performance? a. A significant drop in demand for the goods will excuse the buyer’s performance. b. Increased production costs will excuse performance by the seller. […]

Cal sprayed pesticide on his crops in a very careful manner on a windless day. Nevertheless, some of the pesticide spray fell on his neighbor’s side of the fence and contaminated the cornmeal for the chickens. The chickens died and […]

How is ‘sovereign immunity” interpreted under U.S. law today? a. It gives absolute immunity to a foreign nation from all U.S. laws. b. It gives immunity to foreign governments for commercial activity carried on in the U.S. by the foreign […]

Which of the following can be the basis for an accountant’s liability under state law? a. Contract law and negligence, but not criminal law. b. Tort law, contract law, and criminal law. c. Negligence, criminal law, and strict liability. d. […]

Rose is working hard on Arlin’s mayoral campaign. She thinks that just a few more votes could win the election, so she promises to pay her friend Violet $50 if she will register and vote for Arlin. Violet does so, […]

What party(ies) is/are involved in a suretyship relationship? a. The principal debtor. b. An ancillary bailee. c. Principal bailee. d. All of the above. In the Brentwood Academy v. Tennessee Secondary School Athletic Association case, the U.S. Supreme Court held […]

Which of the following constitutes computer crime? a. Theft or vandalism of computer hardware, software, or secrets. b. Distributing child pornography via computer. c. Implanting a malicious code. d. All of the above. George has been declared incompetent by the […]

By the concept of ____________, a transferee of a negotiable instrument can acquire greater rights than the transferor had. a. holder in due course b. assignment c. commercial utility d. sight drafts Relationships that may lead to a court’s careful […]

The type of authority that arises from acts of the corporation that lead third parties to believe reasonably and in good faith that an officer has the requisite authority is: a. actual express authority. b. actual implied authority. c. apparent […]

A ninety-year-old patient walked away from a nursing home and wandered onto some nearby railroad tracks. Once on the tracks, the patient stumbled and sprained his ankle. A few minutes later a train approached. The engineer saw the man on […]

Under what circumstances may the buyer seek the remedy of replevin? a. Where the buyer has been unable to obtain cover. b. Where the goods have been shipped under reservation of a security interest in the seller and that interest […]

Why do governments impose tariffs? a. To protect domestic industries from foreign competition. b. To raise revenues. c. To attempt to improve their balance of trade. d. Governments impose tariffs for all of the above reasons. The duty of care […]