21. Ethical reasoning is the process through which an individual rationalizes whatever action he or she chooses to take. (Points : 1) True False
Question 22. 22. The state governments retain all powers not specifically delegated to the federal government. (Points : 1)
Question 23. 23. A corporate officer is not expected to be informed on corporate matters. (Points : 1)
Question 24. 24. Cole is a shareholder of Donut Holes, Inc. Cole will be deemed to have a fiduciary duty to Donut Holes and its minority shareholders if he has (Points : 1)
a restriction on the transferability of his shares. a right of first refusal. a sufficient number of shares to exercise de facto control. watered stock.
Question 25. 25. Fruits & Vegetables, Inc., employs hundreds of seasonal and permanent workers, both skilled and unskilled, in seven states. Fruits & Vegetables can hire illegal immigrants (Points : 1)
if either the employer or the immigrants file special forms. only if the employer files a special form. only if the immigrants file special forms. under no circumstances.
Question 26. 26. A limited liability company cannot be taxed as a corporation. (Points : 1)
Question 27. 27. Omni Products, Inc., and Plenty Sales Corporation transact a deal over the Internet. Their contract does not mention the UETA. The UETA covers (Points : 1)
none of the contract. only the part of the contract that does not involve e-commerce. only the part of the contract that involves e-signatures. the entire contract.
Question 28. 28. Voir dire is a process for presenting evidence in a case. (Points : 1)
Question 29. 29. Specific performance is the remedy customarily used when there is no actual contract or agreement between two parties. (Points : 1)
Question 30. 30. Rite-Bilt Contractors, Inc., agrees to build a motel for Slumber Motels Corporation. The project proceeds according to plan, but before it is done, Slumber tells Rite-Bilt to quit. Rite-Bilt may recover (Points : 1)
the contract price less costs of materials and labor. the contract price. the costs needed to complete construction. profits plus the costs incurred up to the time of the breach.
Question 31. 31. Gregor uses duress to force Honi to agree to pay him for protecting Honi's Coffee Shop against vandalism and destruction. Honi may (Points : 1)
avoid the contract or choose to carry it out. do nothing once she has agreed to pay. recover from her insurer for a failure to direct her "protection." recover from the local police for a failure to protect her "direction."
Question 32. 32. In making business decisions, Brian, personnel manager for Conservative Investments, Inc., applies his belief that all persons have fundamental rights. This is (Points : 1)
a religious rule. the categorical imperative. the principle of rights. utilitarianism.
Question 33. 33. Joint ownership of property in and of itself creates a partnership. (Points : 1)
Question 34. 34. The UETA provides that a document cannot be notarized electronically. (Points : 1)
Question 35. 35. Begin Anew Enterprise, Inc., completes its registration process and begins advertising the availability of its new issue of securities. The firm places a tombstone ad in the financial papers. This ad tells prospective investors (Points : 1)
about investing. about the company. where to buy the securities. where to obtain a prospectus.
Question 36. 36. Julio contracts to provide lawn-mowing services to Kevin for $140 per month. Julio cannot transfer this duty (Points : 1)
under any circumstances. without continuing to be potentially liable. without Kevin’s consent. without paying Kevin at least one monthly fee.
Question 37. 37. Complete performance occurs when conditions in a contract are fully satisfied. (Points : 1)
Question 38. 38. Most courts are usually very concerned about the fairness of contracts. (Points : 1)
Question 39. 39. An employer must modify its job-application process so that those with disabilities can compete for jobs with those who do not have disabilities. (Points : 1)
Question 40. 40. Mit-E Clean Corporation wants to make an offering of securities to the public. This offering is not exempt from registration under the Securities Act of 1933. Before the firm sells its securities, it must provide investors with (Points : 1)
a forward-looking financial forecast. an investment contract. a prospectus. a road show.
Question 41. 41. A reference to "28 U.S.C. Section 1332" means that a federal court’s decision can be found on Page 28 of Section 1332 of the United States Cases. (Points : 1)
Question 42. 42. An employer must verify documents establishing a prospective worker's identity and eligibility to work in the United States. (Points : 1)
Question 43. 43. Musical Production Company and Nora enter into a contract that calls for Nora to write six songs for which Musical agrees to pay her. Nora transfers her right to payment under the contract to Omni Entertainment Agency. Nora is (Points : 1)
a delegator. an assignor. a payor. a righter.
Question 44. 44. Justifiable reliance on a misrepresentation is an element of fraud. (Points : 1)
Question 45. 45. Gus is an employee of Harden Steel Company. Under federal labor law, Gus and other employees have the right to (Points : 1)
bargain collectively with Harden through their representatives. insist that Harden require union membership as a condition of work. interfere with the efforts of others to form labor organizations. refuse to bargain with Harden through their representatives.
Question 46. 46. Outstate Properties, Inc. (OPI), agrees to sell certain acreage to Pia. OPI repudiates the deal. Pia sues OPI and recovers damages. Pia can now obtain (Points : 1)
an amount in quasi contract. damages representing restitution. specific performance of the deal. nothing more.
Question 47. 47. Mona asserts that a contract she entered into with Nate is unenforceable. Defenses to the enforcement of a contract include (Points : 1)
a desire not to perform. adverse economic consequences. results that do not match expectations. the lack of a party's genuine assent.
Question 48. 48. In 2009, Sara writes Terror at the Track, a novel about racecar driving. Sara does not register the work with the appropriate government office. Under federal copyright law, Sara’s work is protected (Points : 1)
for ten years. for twenty years. for the life of the author plus seventy years. forever.
Question 49. 49. Portia, a businessperson, is convicted of RICO offenses. Portia's penalties may include (Points : 1)
dissolution of her business but not forfeiture of its assets or imprisonment. forfeiture of the business assets but not dissolution of the business or imprisonment. imprisonment and dissolution of her business but not forfeiture of its assets. dissolution of her business, forfeiture of its assets, and imprisonment.
Question 50. 50. State securities laws apply only to interstate transactions. (Points : 1)
Question 51. 51. The four broad types of damages in contract law are compensatory, consequential, punitive, and actual damages. (Points : 1)
Question 52. 52. To recover workers' compensation, an employee must prove that an injury was not the fault of the employer. (Points : 1)
Question 53. 53. Vista Properties, Inc., leases an office building to World Corporation. At the time, the amount of damages on World's default is difficult to determine, so the parties reasonably estimate, and the lease provides, that if World defaults, Vista is entitled to $50,000 as "liquidated damages." This amount is (Points : 1)
an unenforceable limitation of liability. an unenforceable penalty. liquidated damages. punitive damages.
Question 54. 54. Protective Finishes, Inc. (PFI), agrees to paint Quinn's house, using a particular brand of "discount" paint. PFI completes the job but uses a different brand of discounted paint. This is most likely (Points : 1)
a complete excuse for Quinn's refusal to pay. a material breach. complete performance. substantial performance.
Question 55. 55. Alienation is a transfer of the ownership of land. (Points : 1)
Question 56. 56. Rescission is the substitution of one party to a contract for a third party, who agrees to assume the contractual duties. (Points : 1)
Question 57. 57. Quix Fix-It, Inc., offers Polly a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate (Points : 1)
after a reasonable period of time. after a typical work week (five business days). after a usual month (thirty calendar days). never.
Question 58. 58. Barb allows Candy to enter Barb's warehouse and take a DVD player. Charged with theft, Candy can successfully claim, as a defense, (Points : 1)
Question 60. 60. High-Tech Services, Inc., and Internet Investments Corporation enter into a con¬tract that would otherwise be subject to the UETA but purports to "opt out." The UETA covers (Points : 1)
none of the contract. only the part of the contract that concerns computer information. only the part of the contract that does not concern computer information. the entire contract.
Question 61. 61. Sunny is a salesperson for Tech Instruments, Inc. (TI). She misrepresents to Universal Piping Company, a customer, that a certain device has a certain capability. In reliance, Universal buys the device. Liable for this misrepresentation is (Points : 1)
Sunny and TI. Sunny only. TI only. Universal but neither Sunny nor TI.
Question 62. 62. Don enters into a contract with Emma, who does not have contractual capacity. Don can enforce the contract only if Emma (Points : 1)
elects not to avoid the contract. is a minor. is intoxicated or mentally incompetent. is a minor, intoxicated, or mentally incompetent.
Question 63. 63. Directors are rarely compensated, but when they are, they cannot set their own compensation. (Points : 1)
Question 64. 64. Kelly is an appliance salesperson. Kelly commits fraud if, to make a sale, she (Points : 1)
discloses the truth. represents as a fact something that she knows is untrue. states an opinion concerning something that she knows nothing about. uses puffery.
Question 65. 65. An offer must be communicated by mail or in person. (Points : 1)
Question 66. 66. Bess, an agent for Calm Harbor Marina, Inc., enters into an unauthorized contract with Dropt Anchor Worx, Inc., purportedly on behalf of Calm Harbor, which refuses to perform. Bess is liable to (Points : 1)
Calm Harbor and Dropt Anchor for breach of contract. Calm Harbor for misrepresentation. Dropt Anchor for misrepresentation. no one.
Question 67. 67. An employee who leaves a job voluntarily cannot later claim to have been "constructively discharged" on the basis of unlawful discrimination. (Points : 1)
Question 68. 68. A promisee is a person who makes a promise. (Points : 1)
Question 69. 69. Seafood Canning Corporation keeps a file of I-9 verifications forms. To inspect this file, the appropriate government officer must obtain (Points : 1)
a subpoena and a warrant. a subpoena or a warrant, but not both. not a subpoena, a warrant, or the employer's consent. the employer's consent.
Question 70. 70. A Massachusetts state statute imposes a prison term, without a trial, on all street vendors who operate in certain areas. A court would likely hold this statute to be (Points : 1)
constitutional. unconstitutional under the commerce clause. unconstitutional under the due process clause. unconstitutional under the free exercise clause.
Question 71. 71. Parents are required by law to provide necessaries for their minor children. (Points : 1)
Question 72. 72. Wrongful termination of an agency relationship can subject the canceling party to a suit for damages. (Points : 1)
Question 73. 73. Like the bylaws of other corporations, the bylaws of Retail Sales, Inc., (Points : 1)
establish the operating name of the corporation. establish the value and classes of corporate stock. were adopted at its first organizational meeting. were submitted for approval to the public official in charge.
Question 74. 74. Leo, a resident of Missouri, owns a warehouse in Nebraska. He becomes involved in a dispute over the ownership of the warehouse with Opal, a resident of Kansas. Opal files a suit against Leo in Nebraska. Regarding this suit, Nebraska has (Points : 1)
diversity jurisdiction. in personam jurisdiction. in rem jurisdiction. no jurisdiction.
Question 75. 75. Preemptive rights entitle shareholders to bring a derivative suit against the corporation. (Points : 1)
Question 76. 76. Sanitary Supplies Company requires its customers to pay by check. Tyla, a Sanitary driver, tells customers on her route that they can pay her with cash. When Sanitary learns of Tyla's collections, it takes no action to stop her. Tyla steals some of the cash. Sanitary may suffer the loss under the doctrine of (Points : 1)
Question 77. 77. National Insurance Company violates a statute when selling an insurance policy to Opal. The policy may be enforced by (Points : 1)
National Insurance only. National Insurance or Opal. no one. Opal only.
Question 78. 78. Damages awarded in a shareholder's derivative suit go to the shareholder personally. (Points : 1)
Question 79. 79. Criminal liability depends on the commission or omission of an act. (Points : 1)
Question 80. 80. Any corporation with more than $10 million in assets and 500 or more shareholders must register with the Securities and Exchange Commission. (Points : 1)
Question 81. 81. A corporation whose security does not qualify for an exemption can dispense with the requirement of a registration statement. (Points : 1)
Question 82. 82. If a price quotation contains a mistake in the adding of a number of figures, the contract may not be enforceable. (Points : 1)
Question 83. 83. An expert's false statement to a naive buyer about a technical detail may entitle the buyer to rescind a contract. (Points : 1)
Question 84. 84. To act ethically is to think narrowly about what is best in the short run for one’s employer. (Points : 1)
Question 85. 85. An accord and satisfaction requires that the amount of a debt must not be in dispute. (Points : 1)
Question 86. 86. Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 P.M. and 6 A.M. nightly for six months. At the end of the term, if there has been no vandalism or theft in the Park, Safe-T's performance will have been (Points : 1)
absolute. complete. conditional. substantial.
Question 87. 87. B2B, LLC, is a limited liability company. Among its members, a dispute arises that the operating agreement does not cover. The dispute is governed by (Points : 1)
the applicable state LLC statute. a federal Uniform LLC Law. the principles of partnership law. a state corporation statute.
Question 88. 88. Cory enters into a contract with Dian to act as her personal sports trainer. If they later dispute the meaning, and the contract contains unclear terms, the rules of contract interpretation will give effect to (Points : 1)
the parties' intent as expressed in their contract. what the defendant claims was the parties' intent. what the plaintiff claims was the parties' intent. what the parties now agree they intended.
Question 89. 89. Common law is a term for social manners and customs that are familiar to most of us. (Points : 1)
Question 90. 90. Mary, who is charged with a crime, claims that Nick, a government agent, entrapped her. For entrapment to be a valid defense (Points : 1)
Mary must not have been predisposed to commit the crime. Nick must have pressured Mary into committing the crime. Nick must have suggested that the crime be committed. all of the choices.
Question 91. 91. General Construction Company engages in blasting in its operations. This is subject to strict liability because (Points : 1)
blasting is an abnormally dangerous activity. blasting is a negligent activity. construction can be done without blasting. General is a construction company.
Question 92. 92. Oral evidence of the meaning of a contract with incomplete terms can be introduced at a trial. (Points : 1)
Question 93. 93. Genetic Seed Company hires Howie to work in its shipping office, accepting deliveries and dealing with other companies' drivers. With respect to Genetic, Howie is most likely (Points : 1)
an agent. an independent contractor. a principal. a work for hire.
Question 94. 94. Giant Lift Corporation purchases all of the assets of Heavy Hydraulics Corporation. With respect to Heavy Hydraulics’s liabilities, Giant Lift is (Points : 1)
automatically responsible. not responsible under any circumstances. responsible if Heavy Hydraulics is a competitor of Giant Lift. responsible if the sale is actually a merger or consolidation.
Question 95. 95. Cody wants to appeal his case against Digital Corporation to the United States Supreme Court. Cody must ask the Court to issue a writ of (Points : 1)
certiorari. jurisdiction. standing. venue.
Question 96. 96. Before filing a registration statement, an issuer must attempt to sell, or at least offer to sell, the securities. (Points : 1)
Question 97. 97. Heavy Hauling, Inc., is a public company whose shares are traded in the public securities markets. Under the Sarbanes-Oxley Act of 2002, to ensure that Heavy Hauling’s financial results are accurate and timely, the firm’s senior officers must set up and maintain (Points : 1)
internal "disclosure controls and procedures." external "release and reveal timetables." personal "peruse and review liability policies." public "information and discussion forums."
Question 98. 98. A party seeking to recover compensatory damages may also be entitled to recover incidental damages. (Points : 1)
Question 99. 99. An offer to form a unilateral contract is accepted by a promise to perform. (Points : 1)
Question 100. 100. Hobie, the chief executive officer of Ideal Gamers, Inc. (IGI), intentionally understates the amount of IGI’s debts in information provided to investors as part of an issue of IGI stock. Jaq buys the stock and suffers a loss. Hobie may be subject to (Points : 1)
government prosecution and Jaq's suit. neither government prosecution nor Jaq's suit.