Corporate Law
Exam Solutions
Course Introduction
Corporate Law is an area of legal study that focuses on the formation, operation, and regulation of corporations and other business entities. This course covers key topics including corporate governance, the roles and duties of directors and officers, shareholder rights, mergers and acquisitions, and the regulatory framework under which corporations operate. Students will examine statutes, case law, and practical applications that shape the organization, management, and dissolution of corporations. Emphasis is placed on understanding legal principles that promote fairness, transparency, and accountability within corporate structures, as well as the impact of corporate law on economic and social environments.
Recommended Textbook
Business Law Today Standard Text and Summarized Cases 10th Edition by Roger LeRoy Miller
Available Study Resources on Quizplus
37 Chapters
2663 Verified Questions
2663 Flashcards
Source URL: https://quizplus.com/study-set/3783 Page 2
Chapter 1: The Legal Environment
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75500
Sample Questions
Q1) No state has adopted the Uniform Commercial Code.
A)True
B)False
Answer: False
Q2) Judge Julia decides that the precedent for the case she is hearing is no longer correct due to technological changes. She overturns the precedent when she decides the case. It is most likely that her case will
A) go unnoticed by the public.
B) be thrown out of court.
C) receive a great deal of publicity.
D) be ignored by the media.
Answer: C
Q3) The Uniform Commercial Code has been adopted, at least in part, in A) all states.
B) forty-five states.
C) thirty-five states.
D) no state.
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Constitutional Law
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75501
Sample Questions
Q1) Tami's Tasty Tacos, a fast food outfit, files a suit against the state of Texas, claiming that a Texas state law violates the commerce clause. The court will agree if the statute imposes a substantial burden on
A) a local government.
B) interstate commerce.
C) noneconomic activity.
D) the state.
Answer: B
Q2) The Children's Internet Protection Act requires public schools and libraries to use filtering software to block children's access to adult contact on Web sites.
A)True
B)False
Answer: True
Q3) Substantive due process focuses on the substance of legislation.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Courts and Alternative Dispute Resolution
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75502
Sample Questions
Q1) Megan, a resident of Ohio, runs a red light in Texas and hits Sarah, a Texas resident. Sarah files suit against Megan. The statute that allows the Texas court to exercise jurisdiction over Megan is called a(n)
A) long arm statute.
B) in personam statute.
C) in rem statute.
D) out-of-state jurisdiction statute.
Answer: A
Q2) Arbitration is always legally binding.
A)True
B)False
Answer: False
Q3) Interrogatories are written questions for which written answers are prepared and signed under oath.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Torts and Cyber Torts
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75503
Sample Questions
Q1) Ike pushes Joan, who falls and breaks her arm. Ike is liable for the injury
A) if Ike intended to push Joan.
B) only if Ike did not intend to break Joan's arm.
C) only if Ike had a bad motive for pushing Joan.
D) only if Ike intended to break Joan's arm.
Q2) Class-action lawsuits are suits in which a number of persons join together to bring an action.
A)True
B)False
Q3) Obie accuses Portia, a broker with QT Financial Services, of fraudulently inducing him to invest in Risky Development Company, whose stock price declines in value. The reliance that gives rise to liability for fraud requires
A) a subjective statement.
B) misrepresentation of a fact knowing that it is false.
C) puffery.
D) seller's talk.
Q4) Self-defense is a defense to negligence.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Intellectual Property and Internet Law
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75504
Sample Questions
Q1) The need to protect intellectual property is recognized in the Declaration of Independence.
A)True
B)False
Q2) Sayers is very clever and spends lots of time creating new things. Which of the following is not copyrightable?
A) A sculpture of Sayers's horse
B) A book about Sayers's life
C) A movie about Sayers's life
D) Sayers's idea for a new way to play the guitar
Q3) Elvin publishes a book titled First Place, which includes a chapter from Frank's copyrighted book Olympic Winners & Losers. Elvin's use of the chapter is actionable provided
A) consumers are confused.
B) Elvin's use is intentional.
C) Elvin's use reproduces Frank's chapter exactly.
D) Elvin does not have Frank's permission.
Q4) The TRIPS agreement covers computer programs.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Criminal Law and Cyber Crime
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/75505
Sample Questions
Q1) The purpose of the exclusionary rule is to deter police from misconduct.
A)True
B)False
Q2) A bank employee stealing funds from a client is an example of embezzlement.
A)True
B)False
Q3) Briana, an employee of Cotillion Bank, is charged with embezzlement, which requires
A) fraudulently appropriating another's property.
B) obtaining lawful possession of property.
C) physically taking property from its owner.
D) the use of force or fear.
Q4) Public officials prosecute criminal defendants.
A)True
B)False
Q5) There is at least one circumstance in which a person cannot refuse to testify on Fifth Amendment grounds.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Ethics and Business Decision Making
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75506
Sample Questions
Q1) In deciding questions of corporate social responsibility, Valley Disposal & Recycling, Inc., is concerned with
A) how the corporation can best fulfill any ethical duty to society.
B) the effect on corporate profits of ignoring any ethical duty to society.
C) whether the corporation owes any ethical duty to society.
D) all of the choices.
Q2) Fealty Credit Corporation asks its employees to evaluate their actions and get on the ethical business decision-making "bandwagon." Guidelines for judging individual actions most likely include all of the following except
A) an individual's conscience.
B) business rules and procedures.
C) loopholes in the law or company policies.
D) promises to others.
Q3) A business firm can sometimes predict whether a given action is legal.
A)True
B)False
Q4) Management's behavior sets the ethical tone of a firm.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: International Law in a Global Economy
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75507
Sample Questions
Q1) All international sales contracts should have a choice-of-language clause to designate the official language by which the contract will be interpreted.
A)True
B)False
Q2) The primary goal of the North American Free Trade Agreement is to eliminate tariffs among the United States, Canada, and Mexico.
A)True
B)False
Q3) Yokio, Ltd., and Zeno, S.A., transact an international sale of goods. At the request of these parties, a court in Portugal resolves a dispute between them. A U.S. court will most likely honor the judgment
A) if it is consistent with U.S. laws and public policy.
B) if it is consistent with Portuguese laws and public policy.
C) if it does not benefit the U.S. to deny it.
D) under no circumstances.
Q4) Quotas are limits on the amounts of goods that can be exported.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Nature and Classification
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75508
Sample Questions
Q1) An executed contract is one that has been fully performed by both parties.
A)True
B)False
Q2) Scot and Tiffany enter into an implied contract. The parties' conduct
A) defines the contract's terms.
B) finds the contract's facts.
C) terminates any unintended consequences.
D) undercuts any terms based on the facts.
Q3) Phil agrees to work for Vacation Resorts, Inc., as a chef. In determining whether a contract has been formed, an element of prime importance is
A) the parties' intent.
B) Phil's rate of pay.
C) Phil's education.
D) the terms of Phil's employment.
Q4) An offeroree is a person who makes an offer.
A)True
B)False
Q5) A quasi contract arises from a mutual agreement between two parties.
A)True
B)False
11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Offer and Acceptance
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75509
Sample Questions
Q1) First Design Corporation, a business firm, and Glen, a consumer, make a deal over the Internet that involves e-signatures. Under the E-SIGN Act, the e-signatures
A) are as valid as signatures on a paper document.
B) must be encrypted to be enforceable.
C) must have been inscribed on a digital tablet to be authenticated. D) must relate to a partnering agreement.
Q2) Peter and Ray are riding their horses together. Peter jokingly tells Ray that Ray's horse is too slow. Ray laughs and jokingly responds "Yes, he is too slow! I would sell him for $5!" Peter hands Ray $5. This is
A) a valid acceptance because Peter gave Ray the money in a reasonable time.
B) a valid acceptance because there is consideration on both sides.
C) not a valid acceptance because Ray's offer was made in jest.
D) not a valid acceptance because Ray's horse is worth more than $5.
Q3) The primary purpose of the Uniform Electronic Transactions Act (UETA) is to remove barriers to e-commerce.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: Consideration, Capacity, and Legality
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75510
Sample Questions
Q1) In general, if a contract is illegal, a court will not enforce it.
A)True
B)False
Q2) Rollo promises to perform, for a price, shoe repair services in affiliation with Togs 'n Things, a clothing store. To support a contract, the consideration exchanged by the parties must be
A) adequately considerate.
B) equally valuable.
C) legally sufficient.
D) wisely priced.
Q3) Frugal Insurance Company sells a policy to Grover Company, insuring the life of one of Grover's key executives. When the executive dies, Frugal re?fuses to pay, noting that it was not licensed to sell insurance in Grover's state and arguing that thus, its policy cannot be enforced. Grover can recover
A) the amount of the policy from Frugal in full.
B) the amount of the premiums that Grover paid to Frugal.
C) as much of the amount of the policy from Frugal as will cover Grover's costs.
D) nothing.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Defenses to Contract Enforceability
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75511
Sample Questions
Q1) Words or terms in contracts that are subject to more than one reasonable interpretation can lead to bilateral mistakes.
A)True
B)False
Q2) Lou uses undue influence to induce Mona to sign a contract to invest her student loan funds in National Overseas Bank. Mona may
A) avoid the contract or choose to carry it out.
B) do nothing once she has signed the contract.
C) recover from her lender for a failure to influence her "due."
D) recover from the bank for a failure to undo Lou's influence.
Q3) Duress is a defense to the enforcement of a contract, but not a ground for rescission of a contract.
A)True B)False
Q4) A prenuptial agreement must be in writing to be enforceable.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Third Party Rights and Discharge
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75512
Sample Questions
Q1) Dylan enters into a contract to manage the operations of Cash's accounting office for one year, renewable for subsequent one-year terms. If this contract is discharged like most contracts, it will be A) breached. B) rescinded. C) altered. D) performed.
Q2) A novation occurs when there is a substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated. A)True B)False
Q3) Vested is the condition in which rights have taken effect and cannot be taken away. A)True B)False
Q4) There are no exceptions to the rule that any duty can be delegated. A)True B)False
To view all questions and flashcards with answers, click on the resource link above.
15
Chapter 14: Breach and Remedies
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75513
Sample Questions
Q1) Earl holds 1,000 pounds of perishable fruit in storage for Fresh Food Corporation. Fresh Food does not pay for the storage. Earl sells the fruit to Green Grocers, Inc. This sale represents A) a breach of contract.
B) a mitigation of damages. C) rescission and restitution. D) specific performance.
Q2) Ordinarily, the remedy for a seller's breach of a contract for a sale of real estate is damages.
A)True
B)False
Q3) If a party breaches a contract, the other party can choose one or more of several remedies.
A)True
B)False
Q4) When a breach of contract occurs, the innocent injured party has a duty to mitigate the damages.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: The Formation of Sales and Lease Contracts
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75514
Sample Questions
Q1) Sweets Store buys chocolate from Tasty Candies, Inc. The parties agree that the chocolate will be shipped "F.O.B. Sweets" via United Railroad Corporation. The chocolate is lost in transit. The loss is suffered by
A) Sweets and Tasty, but not United.
B) Sweets only.
C) Sweets, Tasty, and United.
D) Tasty only.
Q2) Trend-Rite Clothiers, Inc., sells t-shirts to Brand Name Stores, Inc., under an existing contract. When textile costs increase, Brand agrees to a price increase, but later wants to cancel the contract. Brand may
A) cancel the contract immediately.
B) cancel the contract only after accepting a final shipment.
C) cancel the contract only on reasonable notice.
D) not cancel the contract.
Q3) A buyer and a seller cannot normally have an insurable interest in identical goods at the same time.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Performance and Breach of Sales Lease Contracts
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75515
Sample Questions
Q1) Craft Engineering, Inc., contracts for a sale of technical instruments to Detail Design Company. Before the date on which performance is due, Craft notifies Detail that it will not perform. This is
A) anticipatory repudiation.
B) perfect tender.
C) rejection of performance.
D) revocation of acceptance.
Q2) Kim's Pony Rides orders ten saddles from Little Horse Saddles, Inc. The sales contract states that if the saddles are defective, Kim's will allow Little Horse Saddles to repair or replace them instead of rejecting the shipment. When the saddles arrive, they are defective. In this case, the perfect tender rule
A) does not apply.
B) applies to both parties.
C) applies only to Little Horse Saddles.
D) applies only to Kim's Pony Rides.
Q3) In contracts involving a carrier, a seller can complete performance through a shipment contract or a destination contract.
A)True
B)False
Page 18
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Warranties and Product Liability
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75516
Sample Questions
Q1) Courts in many jurisdictions will consider the negligent actions of both the plaintiff and the defendant when apportioning liability in a product liability action.
A)True
B)False
Q2) The dangers associated with using sharp knives are so commonly known that manufacturers need not warn users of those dangers
A)True
B)False
Q3) In sales law, product liability is assurance by one party of the existence of a fact on which the other party can rely.
A)True
B)False
Q4) If a seller is an expert and gives an opinion as an expert, then he or she usually creates an express warranty.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 19
Chapter 18: Negotiable Instruments: Transferability Liability
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75517
Sample Questions
Q1) A time draft is payable on sight.
A)True
B)False
Q2) InterComp normally sells $50,000 worth of software to Power Source, a retail electronics store, each summer on terms requiring payment in sixty days. One year, InterComp wants cash, but Power Source wants the usual sixty days. To meet both needs, the parties can arrange
A) a certificate of deposit.
B) a bearer bond.
C) a trade acceptance.
D) an international letter of credit.
Q3) Jeff's grandmother is the payee of a promissory note for $7,500. Jeff's grandmother gives Jeff the note for his sixteenth birthday. Jeff is
A) an HDC.
B) not an HDC, because he received the note as a gift.
C) not an HDC, because he is a minor.
D) not an HDC, because the note was for less than $10,000.
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Checks and Banking in the Digital Age
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75518
Sample Questions
Q1) The Uniform Commercial Code governs checks.
A)True
B)False
Q2) A bank may contractually shift to the customer the risk of forged checks created by the use of facsimile or other nonmanual signatures.
A)True
B)False
Q3) Elmo pays First National Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service. This is
A) a cashier's check.
B) an overdraft.
C) a stale check.
D) a stop-payment order.
Q4) Martha has a checking account with Homeplace Bank. Martha signs a check "payable to Phillipa" drawn on Martha's account. Homeplace Bank is A) the payer.
B) the drawee.
C) the drawer.
D) the payee.
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Secured Transactions
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75519
Sample Questions
Q1) Corporate Bank wants to perfect its security interest in inventory owned by Outdoor Outfitters, Inc. Most likely, a financing statement should be filed with A) the bank manager.
B) the county clerk.
C) the U.S. Department of the Interior.
D) the secretary of state.
Q2) Refer to Fact Pattern 20-1. Suppose that Helpful perfects its security interest when GLC takes possession of the equipment. In that circumstance, the party with priority to the collateral on GLC's default would be
A) GLC.
B) Helpful and Interstate proportionately.
C) Helpful only.
D) Interstate only.
Q3) The last security interest to be perfected is the first in priority over any other perfected security interests.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 22
Chapter 21: Creditors Rights and Bankruptcy
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75520
Sample Questions
Q1) A surety can assert the debtor's bankruptcy as a defense.
A)True
B)False
Q2) A husband and wife may file a joint petition for bankruptcy.
A)True
B)False
Q3) A discharge will be denied to a debtor who received a discharge within eight years of filing the current petition.
A)True
B)False
Q4) In most states, state law determines the amount of a debtor's property that is exempt from distribution on bankruptcy.
A)True
B)False
Q5) The filing of a petition for bankruptcy will automatically stay most legal actions against the debtor.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 22: Mortgages Foreclosures After the Recession
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75521
Sample Questions
Q1) If a homeowner defaults, the lender has the right to foreclose on the mortgaged property.
A)True
B)False
Q2) Erin and Dooley, a married couple, borrow $120,000 from Capital & Credit Bank to buy a home. When Erin and Dooley divorce, they are unable to make payments on the mortgage. The market value of the home has declined to less than the balance of the loan. Capital & Credit agrees to a sale of the property for this amount. This is
A) a deed in lieu of foreclosure.
B) a home equity loan.
C) a reverse mortgage.
D) a short sale.
Q3) Refer to Fact Pattern 22-1. Under federal law, disclosures with respect to one of Northeast's loans must be provided
A) a certain number of days after the loan is finalized.
B) a certain number of days before the loan is finalized.
C) at the same time at which the loan is finalized.
D) at whatever time is most rational and appropriate.
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: Agency Relationships in Business
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75522
Sample Questions
Q1) Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on
A) any transaction causing a loss to Miklos.
B) Miklos's death or incapacity.
C) Miklos's sixty-fifth birthday.
D) Nathalie's handling of one of each stipulated transaction.
Q2) The equal dignity rule requires that a principal and agent treat each other with "equal dignity."
A)True
B)False
Q3) An agency can terminate once its purpose is achieved.
A)True
B)False
Q4) An agent has a duty to keep and make available to the principal an account of all property and funds received and paid out on behalf of the principal.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 25
Chapter 24: Employment, Immigration, and Labor Law
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75523
Sample Questions
Q1) An employee can usually recover workers' compensation for injuries occurring on the commute to and from work.
A)True
B)False
Q2) Network Industries, Inc., wants to monitor its employees' electronic communications. To avoid liability under laws related to employee monitoring, Network should announce the monitoring to A) no one.
B) the employees.
C) the government.
D) the public generally.
Q3) There is federal regulation of employers' retirement plans for employees.
A)True
B)False
Q4) Employers are not allowed to interfere with employees' efforts to form or join a union under
A) the Norris-LaGuardia Act.
B) the National Labor Relations Act.
C) the Labor-Management Reporting and Disclosure Act.
D) the Labor-Management Relations Act.
Page 26
To view all questions and flashcards with answers, click on the resource link above.
Chapter 25: Employment Discrimination and Diversity
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75524
Sample Questions
Q1) Title VII of the Civil Rights Act of 1964 does not apply to employers with only five employees.
A)True
B)False
Q2) Elsa participates in a Title VII investigation at the firm where she works. As a result, Elsa's employer demotes her. Elsa can file a
A) harassment complaint.
B) retaliation claim.
C) constructive discharge claim.
D) disparate-impact discrimination claim.
Q3) A plaintiff who proves unlawful discrimination may be awarded reinstatement, back pay, but not retroactive promotions.
A)True
B)False
Q4) Erica is sixty-year-old woman with cerebral palsy. Erica is a member of A) one protected class.
B) two protected classes.
C) three protected classes.
D) no protected classes.
To view all questions and flashcards with answers, click on the resource link above. Page 27
Chapter 26: Sole Proprietorships and Private Franchises
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75525
Sample Questions
Q1) A sole proprietor may own and manage any type of business.
A)True
B)False
Q2) A franchise exists when the owner of a trademark licenses its use to another party to sell goods or services.
A)True
B)False
Q3) Some states require that a franchisor submit advertising aimed at prospective franchisees to the state for approval.
A)True
B)False
Q4) In determining whether a franchisor acted in good faith in terminating a franchise relationship, a court would balance the rights of both parties.
A)True
B)False
Q5) The laws governing franchising are primarily designed to protect franchisors from dishonest franchisees.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 28
Chapter 27: All Forms of Partnership
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75526
Sample Questions
Q1) Connie, Drew, and Ellen are the general partners of Foreign Auto Repair, a limited partnership. Connie dies. The partnership can
A) continue only after a distribution of its assets.
B) continue only as a general partnership.
C) continue only if Drew and Ellen consent.
D) not continue because Connie's death dissolves the firm.
Q2) Tom and Bill are partners in Tough Trucks Towing. James is not a partner. In dealing with Fred, James holds himself out to be a partner in Tough Trucks Towing and Fred contracts to have Tough Trucks Towing tow some vehicles for him. If Tough Trucks fails to tow the vehicles, a court may conclude that
A) a partnership by estoppel exists and James is liable to Fred.
B) no partnership exists and James is not liable to Fred.
C) a partnership by estoppel exists and Fred has all partnership rights.
D) no partnership exists, but Tom and Bill are liable to Fred.
Q3) On a partner's dissociation, his or her duty of loyalty to the partnership ends.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 29
Chapter 28: Limited Liability Companies Special Business
Forms
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75527
Sample Questions
Q1) Generally, a dissociated member of a limited liability company (LLC) has the right to have his or her interest in the LLC bought out by the other members.
A)True
B)False
Q2) Greta is a member of Hovercraft LLC. As a member, Greta is
A) a manager or officer, but not an owner.
B) an investor, but not a manager, officer, or owner.
C) an owner.
D) a participant, but not an investor, manager, officer, or owner.
Q3) A limited liability company is not a citizen of any state.
A)True
B)False
Q4) National Capital Corporation and International Investments, Inc., form a joint stock company. The ownership of a joint stock company is represented by A) partnership certificates.
B) shares of stock.
C) title documents.
D) trust certificates.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 29: Corporate Formation, Merger, and Termination
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75528
Sample Questions
Q1) In most cases, only a corporation's common stockholders need to approve a merger.
A)True
B)False
Q2) When a sale of assets amounts to what in fact is a consolidation, the acquiring corporation inherits the selling corporation's liabilities.
A)True
B)False
Q3) Wings2Go Corporation fails to hold an organizational meeting. In this circumstance, at common law Wings2Go is most likely
A) a corporation by estoppel.
B) a de facto corporation.
C) a de jure corporation.
D) ultra vires.
Q4) A corporation does not possess the same right of access to the courts as natural persons.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 30: Management and Ownership of a Corporation
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75529
Sample Questions
Q1) Nina is a director of Omega, Inc. Under the standard of due care owed by directors of a corporation, Nina's decisions must be
A) ambiguous and questionable.
B) arguable and defensible.
C) informed and reasonable.
D) perfect and unassailable.
Q2) Denise, Ervin, and Flem occupy the positions of directors on the board of Gallery Corporation. As directors, they may not
A) authorize major corporate policy decisions.
B) decide to issue stock and bonds, and declare dividends.
C) select and remove corporate officers.
D) subordinate the corporation's welfare to their personal interests.
Q3) After the first board, the directors are chosen by the corporate officers. A)True
B)False
Q4) A corporation's officers and other executive employees are hired by corporate shareholders.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 32
Chapter 31: Investor Protection, Insider Trading, Corp Gov
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75530
Sample Questions
Q1) Securities that are exempt from the registration requirement can generally be sold and resold without being registered.
A)True
B)False
Q2) To raise $12 million to expand operations, Star Corporation makes a stock offering directly to sixty accredited investors and twenty sophisticated, but unaccredited investors. Star plans to notify the SEC of sales. Under the Securities Act of 1933, this issue may qualify as an "exempt" transaction
A) as is.
B) if all of the investors are also given certain material information.
C) if the offering is also made available to the general public.
D) under no circumstances.
Q3) The Securities Exchange Act of 1934 provides for continuous, periodic disclosures by publicly held corporations.
A)True
B)False
Q4) Sales of securities must occur within five days of registration.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 33
Chapter 32: Promoting Competition
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75531
Sample Questions
Q1) A suit is filed against Dormroom Furniture Unlimited, Inc., alleging that the firm has committed the offense of monopolization. To determine whether Dormroom has committed this offense, the court will consider the extent of Dormroom's market power and
A) how Dormroom acquired its power.
B) how Dormroom makes its products.
C) Dormroom's customers.
D) Dormroom's suppliers.
Q2) The offense of monopolization does not require the intent to monopolize.
A)True
B)False
Q3) Cooperative research by small-business firms is exempt from antitrust law.
A)True
B)False
Q4) Monopoly power is a minor amount of market power.
A)True
B)False
Q5) Territorial and consumer restrictions are per se violations.
A)True
B)False
34
To view all questions and flashcards with answers, click on the resource link above.
Chapter 33: Consumer and Environmental Law
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75532
Sample Questions
Q1) Green River Energy Corporation wants to begin operations that include the discharge of waste into navigable waters. Under the Clean Water Act, Green River must install certain equipment
A) after beginning operations.
B) before beginning operations.
C) during operations.
D) only if a regulatory agency challenges the discharge.
Q2) When a release of hazardous chemicals from a site occurs, potentially responsible parties can avoid liability through transfer of ownership.
A)True
B)False
Q3) Odiferous Waste Company is a subsidiary of Precarious Investments, Inc. Odiferous operates a hazardous waste disposal site. QuikChem Corporation is one of many parties who generate waste disposed of at the site. Odiferous borrows money from Regal Bank, which takes over the site when Odiferous goes bankrupt. The Environmental Protection Agency discovers a leak at the site. Can any of these private parties be forced to pay for the clean up? If so, who?
To view all questions and flashcards with answers, click on the resource link above. Page 35
Chapter 34: Liability of Accountants Other Professionals
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75533
Sample Questions
Q1) Under the Restatement (Third) of Torts, accountants can be held liable for negligence to any third parties.
A)True
B)False
Q2) Accountants and other professionals do not face liability under the common law for any breach of contract.
A)True
B)False
Q3) In most courts, auditors cannot be held liable to third parties for negligence in the performance of their duties.
A)True
B)False
Q4) Filtration Products, Inc., files a suit against Emmett, its former accountant, alleging constructive fraud. Emmett may be held liable
A) if Filtration cannot prove actual fraud.
B) if Emmett was grossly negligent in the performance of his duties.
C) only if Emmett acted with fraudulent intent.
D) only if Emmett impersonated someone else who could be liable for fraud.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 35: Personal Property and Bailments
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75534
Sample Questions
Q1) Airline passengers are subjects of a bailment.
A)True
B)False
Q2) Killing a wild animal amounts to assuming ownership of it.
A)True
B)False
Q3) A joint tenant's sale of his or her interest terminates the joint tenancy.
A)True
B)False
Q4) Constructive delivery occurs when property is physically transferred.
A)True
B)False
Q5) Victor leaves his Dodge sport utility vehicle at Gordo's Auto Service for an oil change. This is
A) a bailment.
B) a gift.
C) accession.
D) production.
To view all questions and flashcards with answers, click on the resource link above. Page 37
Chapter 36: Real Property and Landlord-Tenant Law
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75535
Sample Questions
Q1) Refer to Fact Pattern 36-1. Nika's ownership interest is
A) a fee simple absolute.
B) a leasehold estate.
C) a life estate.
D) an easement.
Q2) Jacob owns five acres of land in northern California. On his land Jacob has a house and a toolshed. There are ten large maple trees around the house that were there when Jacob bought the land. Since buying the land, Jacob has planted an apple tree. Jacob's real property includes
A) the house and toolshed only.
B) the house only.
C) the house, toolshed and maple trees only.
D) the house, toolshed, maple tress and apple tree.
Q3) Constructive eviction occurs when a tenant moves off the premises in retaliation against the landlord.
A)True
B)False
Q4) Generally, contract doctrines apply to a landlord-tenant relationship.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 38
Chapter 37: Insurance, Wills, and Trusts
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/75536
Sample Questions
Q1) Patty, who is divorced, owns a house. She has no reasonable expectation of benefit from the life of Quinn, her ex-spouse, but she applies for insurance on his life anyway. She also obtains a fire insurance policy on the house, which she later sells. Five years later, Quinn dies and the house is destroyed in a fire. Can Patty obtain payment on either the death of Quinn or the loss of the house? Explain.
Q2) Eighty-year-old Clark exhibits confusion, forgetfulness, and disorientation. Dave, Clark's doctor, believes that the symptoms indicate dementia. Elsa, who has significant contact with Clark, believes that he is in a state of mental decline. These facts indicate A) an urgency that Clark distribute his assets.
B) Clark's lack of capacity.
C) Dave's misdiagnosis.
D) Elsa's intent to take advantage of Clark.
Q3) The consideration paid to an insurer to obtain an insurance policy is the premium. A)True B)False
To view all questions and flashcards with answers, click on the resource link above.