Finance and Business Law
Test Preparation
Course Introduction
This course offers an integrated exploration of the principles of finance and the legal foundations that impact business decision-making. Students will study key financial concepts such as capital structure, risk management, investment analysis, and financial markets, alongside the regulatory and legal framework that governs business transactions. Topics include contracts, agency, bankruptcy, securities regulation, and ethical considerations in financial operations. By analyzing real-world case studies, learners develop the skills to navigate the legalities of finance and apply legal reasoning to complex business challenges, preparing them for thoughtful leadership in todays evolving economic environment.
Recommended Textbook Business Law and the Regulation of Business 10th Edition by Richard A. Mann
Available Study Resources on Quizplus
51 Chapters
4337 Verified Questions
4337 Flashcards
Source URL: https://quizplus.com/study-set/1874 Page 2
Chapter 1: Introduction to Law
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/37406
Sample Questions
Q1) American jurists and Supreme Court Justices Oliver Wendell Holmes and Benjamin Cardozo defined law as "a rule of civil conduct prescribed by the supreme power in a state, commanding what is right, and prohibiting what is wrong."
A)True
B)False
Answer: False
Q2) Laws passed by Congress are the supreme law of the land in the United States and take precedence over the United States Constitution.
A)True
B)False
Answer: False
Q3) If conflicts exist, which of the following sources of law would be paramount?
A)A state constitution.
B)A federal administrative rule.
C)A federal court decision.
D)A state statute.
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Business Ethics
Available Study Resources on Quizplus for this Chatper
67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/37407
Sample Questions
Q1) Which arguments oppose business involvement in socially responsible activities?
A)Lack of corporate focus on profitability.
B)Unfairness to company employees and shareholders.
C)Lack of accountability.
D)All of the above.
E)(a) and (c), but not (b)
Answer: D
Q2) A major criticism of utilitarianism as an ethical theory is:
A)it is rigid.
B)in some important instances it ignores justice.
C)it results in the judgment that a person's actions are always moral for that person and therefore exempt from punishment.
D)it is excessively formal.
Answer: B
Q3) Philosophers have found that the most effective way to develop dependable and universal methods for making ethical judgments is to fashion a priori guidelines.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Civil Dispute Resolution
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/37408
Sample Questions
Q1) In many states, judges are elected by the voters for a stated number of years.
A)True
B)False Answer: True
Q2) The appellate court does not hear any new evidence but rather takes the case upon the record, abstracts, and briefs.
A)True
B)False Answer: True
Q3) Only a small percentage of petitions to the U.S.Supreme Court for review by certiorari are granted.
A)True
B)False Answer: True
Q4) An appeal from a small claims court is taken to the state court of appeals where a trial de novo is begun.
A)True
B)False Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Constitutional Law
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/37409
Sample Questions
Q1) The State of Hawaii enacts a piece of legislation that taxes all airplanes that land in the state.Several airlines challenge the legislation as unconstitutional.What is the likely result of the court case? Explain.
Q2) In relation to the Takings Clause, public use has been held to be synonymous with public purpose.
A)True
B)False
Q3) Under the Commerce Clause, any state statute that affects interstate commerce is unconstitutional.
A)True
B)False
Q4) Judicial review is the process by which courts review governmental action to determine whether such actions conform to the U.S.Constitution.
A)True
B)False
Q5) Eminent domain is not one of the recognized inherent powers of government.
A)True
B)False
Q6) Briefly discuss the Contract Clause of the Constitution.
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Administrative Law
Available Study Resources on Quizplus for this Chatper
76 Verified Questions
76 Flashcards
Source URL: https://quizplus.com/quiz/37410
Sample Questions
Q1) Over the last half-century, the scope of administrative law has expanded enormously because of the increasing complexity of the social, economic, and industrial life of the United States.
A)True
B)False
Q2) Much of federal, state, and local law in this country has been established by __________, which people label as the "fourth branch of government" because they possess tremendous power.
A)executive committees
B)administrative agencies
C)the courts
D)legislatures, including Congress
Q3) An administrative agency's discretion to compel the disclosure of information is subject to any legal privileges to withhold such information.
A)True
B)False
Q4) A statute may preclude judicial review of an agency action.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Criminal Law
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/37411
Sample Questions
Q1) At common law, __________ was defined as a breaking and entering of a dwelling of another at night with the intent to commit a felony.
A)burglary
B)bribery
C)robbery
D)theft
Q2) There are no federal common law crimes.
A)True
B)False
Q3) The Sarbanes-Oxley Act passed in 2002 is the first comprehensive federal statute prohibiting computer crime.
A)True
B)False
Q4) The Sixth Amendment protects persons against self-incrimination, double jeopardy, and being charged with a capital offense except by grand jury indictment.
A)True
B)False
Q5) Under what circumstances has it been held that a search warrant is not necessary?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Intentional Torts
Available Study Resources on Quizplus for this Chatper
104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/37412
Sample Questions
Q1) Smith, a witness in a lawsuit against Weaver, made a defamatory statement about Weaver at trial because she was jealous of Weaver and wanted her to be found guilty.Smith has the absolute privilege to make such a statement, so Weaver cannot successfully sue Smith for defamation.
A)True
B)False
Q2) Defenses of absolute, conditional, and constitutional privilege apply to defamation and also to publication of any matter that is an invasion of privacy.
A)True
B)False
Q3) The tort of __________ is a false communication, which injures a person's reputation and good name by disgracing him and diminishing the respect in which he is held.
A)false light
B)intrusion
C)defamation
D)disparagement
Q4) Define appropriation and give an example.
Q5) Identify the elements of a tort and the objectives of tort law.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Negligence and Strict Liability
Available Study Resources on Quizplus for this Chatper
164 Verified Questions
164 Flashcards
Source URL: https://quizplus.com/quiz/37413
Sample Questions
Q1) Joe intentionally pushed Bill into a fence negligently erected by Sam around Sam's swimming pool.The fence caved in and Bill nearly drowned.Who is liable?
A)Sam because of his negligent conduct.
B)Sam because Joe's conduct would be foreseeable.
C)Joe because of his intentional intervening conduct.
D)Sam and Joe because they both contributed to the harm.
Q2) administrative law
Q3) If a raccoon gets loose from a cage and harms someone, the owner can escape liability by showing that he took great care to keep the animal confined.
A)True
B)False
Q4) 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)True
B)False
Q5) superseding cause
Q6) private law
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Introduction to Contracts
Available Study Resources on Quizplus for this Chatper
73 Verified Questions
73 Flashcards
Source URL: https://quizplus.com/quiz/37414
Sample Questions
Q1) An implied in fact contract is not as enforceable as an express contract.
A)True
B)False
Q2) A promisee is the person making a promise.
A)True
B)False
Q3) __________ is/are any property other than an interest in real property.
A)Goods
B)Personal property
C)Tangible property
D)None of the above.
Q4) The court in the Weichert Co.Realtors v.Ryan case held that the performing party was entitled to recoup the reasonable value of the services rendered under:
A)an express contract.
B)quantum meruit.
C)promissory estoppel.
D)Article 2 of the UCC.
Q5) Article 2 of the Uniform Commercial Code does not apply to the sale of services.
A)True
B)False
11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Mutual Assent
Available Study Resources on Quizplus for this Chatper
96 Verified Questions
96 Flashcards
Source URL: https://quizplus.com/quiz/37415
Sample Questions
Q1) Death or insanity of either the offeror or the offeree ordinarily terminates the offer.
A)True
B)False
Q2) A standard determined in terms of the business judgment of reasonable persons familiar with the practices customary in the type of transaction involved and in terms of the facts and circumstances of the case is:
A)good faith.
B)a subjective standard.
C)commercial reasonableness.
D)None of the above.
Q3) Distinguish between a rejection of an offer and a revocation of an offer.
Q4) An ad in a newspaper or a circular describing goods and stating prices would generally be considered:
A)a firm offer if made by a merchant.
B)an offer if made by a merchant, but not a firm offer.
C)an offer irrespective of who made the offer.
D)an invitation to buyers to make an offer to buy goods.
Q5) What are the ways in which an offer may be terminated?
Q6) Discuss silence as acceptance of an offer.
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Conduct Invalidating Assent
Available Study Resources on Quizplus for this Chatper
77 Verified Questions
77 Flashcards
Source URL: https://quizplus.com/quiz/37416
Sample Questions
Q1) In the Lesher v.Strid case, the court held that:
A)a representation is material if it is likely to influence a reasonable person.
B)for a misrepresentation to be actionable, it must be one of fact rather than of opinion.
C)a mutual mistake of fact renders a contract voidable by the adversely affected party if the mistake is so fundamental that it frustrates the purpose of the contract.
D)the contract's "as is" clause expressly excluded reliance on extrinsic representations such as the defendant's representation about the four-acre water rights.
Q2) Nonfraudulent representation is made without scienter.
A)True
B)False
Q3) Which of the following need NOT be proved in order to establish the defense of economic duress?
A)That one side involuntarily accepted the terms of another.
B)That circumstances permitted no other alternative.
C)That one party explicitly made the economic threat.
D)That the circumstances leading up to the contract were the result of coercive acts of the opposite party.
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Consideration
Available Study Resources on Quizplus for this Chatper
84 Verified Questions
84 Flashcards
Source URL: https://quizplus.com/quiz/37417
Sample Questions
Q1) Breton owes Parkerson $750, which is due on June 1.Discuss the sufficiency of consideration if Breton offers Parkerson: (a) $600 in full settlement on June 1 if the debt is undisputed; (b) $600 in full settlement on April 10 if the debt is undisputed; and (c) $500 on June 1 to settle the debt if the amount of the debt is validly disputed.
Q2) Under the common law, in order to be enforceable, a modification of an existing contract must be supported by mutual consideration.
A)True
B)False
Q3) 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 the day.
A)True
B)False
Q4) In a unilateral contract, a promise is exchanged from one party to another for a promise to forbear to act.
A)True
B)False
Q5) Discuss the concept of adequacy of consideration.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Illegal Bargains
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/37418
Sample Questions
Q1) Courts will not enforce either illegal agreements or agreements induced by criminal conduct.
A)True
B)False
Q2) The usual means of enforcing an agreement prohibiting an employee from competing in a described territory for a stated period of time is by injunction.
A)True B)False
Q3) The legal effect of a usurious loan varies from state to state.
A)True
B)False
Q4) Philip has been in training for several months and now plans to run in the school-sponsored, 10-mile, fun-run mini-marathon.He completes and signs an entry blank which contains the statement, "I hereby agree to hold the sponsors harmless for any injury sustained as a result of participation in this event no matter how such injury may be caused."
a.What is the legal term for this clause in the agreement?
b.Is the clause valid and legally enforceable? Explain its legal effect.
Q5) Distinguish between procedural and substantive unconscionability.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Contractual Capacity
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/37419
Sample Questions
Q1) The doctrine of necessaries applies in the same way to minors and mental incompetents.
A)True
B)False
Q2) The case of In Re The Score Board, Inc.involved the issue of:
A)a minor's liability for misrepresentation of age.
B)whether an incompetent person's contracts are void or voidable.
C)ratification of a contract upon attaining majority.
D)liability for necessaries.
Q3) The exercise of the power to avoid a contract is known as:
A)ratification.
B)disaffirmance.
C)ab initio.
D)restitution.
Q4) Everyone is regarded as having contractual capacity unless the law, for public policy reasons, holds that the individual lacks such capacity.
A)True
B)False
Q5) What are the two tests for mental competency?
Q6) What is the doctrine of liability for a tort connected with a contract?
Page 16
To view all questions and flashcards with answers, click on the resource link above.
Chapter 15: Contracts in Writing
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/37420
Sample Questions
Q1) Which of the following is true regarding noncompliance with the statute of frauds?
A)The basic legal effect under the statute of frauds and the UCC differs.
B)The statute of frauds applies to executed and executory contracts.
C)A party to a contract which was unenforceable because of the statute of frauds but who relied upon the contract may recover in restitution the benefits he conferred on the other party.
D)The doctrine of promissory estoppel cannot displace the requirement of a writing under a statute of frauds.
Q2) Under the Restatement and the Code, when can supplemental evidence be used with a written contract?
Q3) The statute of frauds generally requires that both parties sign the writing.
A)True
B)False
Q4) E-Sign specifically excludes:
A)wills, codicils, and testamentary trusts.
B)divorces.
C)UCC transactions other than sales and leases of goods.
D)All of the above.
Q5) Define the statute of frauds and give an example of what is covered.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Third Parties to Contracts
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/37421
Sample Questions
Q1) A duty may not be delegated if there is an express provision in a contract against delegation.
A)True
B)False
Q2) Professor Doright has a life insurance policy on his own life that provides that in the event of his death, his mother will receive the proceeds.Professor Doright's mother is a(n):
A)incidental beneficiary.
B)creditor beneficiary.
C)donee beneficiary.
D)assignee.
Q3) In England and in a minority of states, the first of two or more assignees to give notice to the obligor is entitled to the assigned performance.
A)True
B)False
Q4) A partial assignment is a transfer of a portion of the contractual rights to one or more assignees.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Performance, Breach, and Discharge
Available Study Resources on Quizplus for this Chatper
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/37422
Sample Questions
Q1) A material breach by the seller will discharge the buyer from his obligations under a contract.
A)True
B)False
Q2) Jack recently borrowed $50 from Ricardo for a couple of weeks.Jack, still short of cash, tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you." Ricardo tells Jack, "OK, that's great!" Jack's performance of his new duty will be:
A)an accord.
B)a novation.
C)a rescission.
D)a satisfaction.
Q3) A and B enter into a contract on January 1 of this year.A's friend C tells A, "The law generally restricts the time within which an action can be brought by either party to a contract." C's statement is:
A)false.
B)true because of statutes of limitations.
C)true because of the law of repudiation.
D)true because of covenants not to sue.
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Contract Remedies
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/37423
Sample Questions
Q1) Which of the following is correct with respect to election of remedies?
A)The Code rejects any doctrine of election of remedies in contracts for the sale of goods; its remedies are cumulative.
B)The remedy of specific performance is inconsistent with that of restitution.
C)A person who seeks an injunction may also seek incidental damages for the breach.
D)All of the above are correct.
Q2) Equitable remedies will not be granted when:
A)the terms of the contract are fair.
B)monetary damages would adequately compensate the injured party.
C)fraud, duress, undue influence, or mistake are not present.
D)All of the above.
Q3) A remedy available for breach of contract is:
A)restitution.
B)monetary damages.
C)the equitable remedies of specific performance and injunction.
D)All of the above.
Q4) firm offer
Q5) assignment
Q6) undue influence
Page 20
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: Introduction to Sales and Leases
Available Study Resources on Quizplus for this Chatper
62 Verified Questions
62 Flashcards
Source URL: https://quizplus.com/quiz/37424
Sample Questions
Q1) The CISG specifically excludes sales of:
A)goods bought for personal, family, or household use.
B)ships or aircraft.
C)electricity.
D)All of the above.
Q2) Under the Code, a contract for the lease of goods for $500 or more is unenforceable without a writing sufficient to evidence a contract.
A)True
B)False
Q3) Leases of personal property exceed $100 billion annually and are governed by Article 2A of the UCC.
A)True
B)False
Q4) Article 2A of the UCC affords special treatment for consumer leases.
A)True
B)False
Q5) What is a "merchant?" Identify the subject matter of four provisions in Article 2 that apply to merchants, but not to others.
Q6) Discuss the concept of freedom of contract under Articles 2 and 2A of the UCC.
Page 21
To view all questions and flashcards with answers, click on the resource link above.
Chapter 20: Performance
Available Study Resources on Quizplus for this Chatper
59 Verified Questions
59 Flashcards
Source URL: https://quizplus.com/quiz/37425
Sample Questions
Q1) In their contract for the sale of window shades, Lela Window Treatments, Inc.and Shane agree that Lela will have the right to replace any defective goods that are delivered to Shane.This contractual provision will not have any effect because the perfect tender rule of the UCC will control in a sale of goods transaction.
A)True
B)False
Q2) If a contract contains the term "no arrival, no sale," title and risk of loss do not pass to the buyer until the seller makes a tender of the goods after they arrive at their destination.
A)True B)False
Q3) Seller, through no fault of its own, is unable to deliver the goods to buyer because the agreed type of carrier is unavailable.Explain what the Code requires.
Q4) Increased production costs will allow the seller to avoid a contract based upon commercial impracticability.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
22
Chapter 21: Transfer of Title and Risk of Loss
Available Study Resources on Quizplus for this Chatper
67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/37426
Sample Questions
Q1) Jack is a guest at Harry's home.While there, he goes into the library and picks up a music box that is part of Harry's collection.Jack overwinds the stem and it breaks.Hoping Harry won't notice, Jack takes the music box for repair to a jeweler who sells similar ones.The jeweler fixes it, but forgets to tag it and an unsuspecting clerk sells it to Robert.Jack is frantic.Can Harry get the music box from Robert?
A)No, the jeweler gives good title to a bona fide purchaser for value.
B)No, the jeweler was not a merchant with regard to music boxes.
C)Yes, Robert was not a buyer in the ordinary course of business.
D)Yes, Robert has assumed only Jack's title, which is no title at all.
Q2) Mere possession of goods by a bailee authorizes the bailee to sell them.
A)True
B)False
Q3) The Code provides that goods must be both existing and identified to the contract before any interest in them can pass.
A)True
B)False
Q4) A void title may allow good title to pass in special circumstances.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 22: Product Liability: Warranties and Strict Liability
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/37427
Sample Questions
Q1) Terrell asks a salesperson what size of water heater he should buy for their twenty-unit motel.If Terrell purchases a tank based on the salesperson's suggestion, the salesperson's recommendation is:
A)an express warranty of merchantability regarding the water heater.
B)an implied warranty of merchantability regarding the water heater.
C)an implied warranty of fitness for a particular purpose.
D)no warranty, but only a statement of opinion.
Q2) If the buyer inspects the goods before entering into the contract, then implied warranties:
A)still apply to any defects.
B)will in no circumstances be applicable.
C)do not apply to defects that are apparent upon reasonable inspection.
D)None of the above.
Q3) Barry buys a car from a dealer, which is sold to him "as is" and "with all faults." The next day, the engine blows up.Barry can sue the dealer for breach of the implied warranty of fitness.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
24
Chapter 23: Sales Remedies
Available Study Resources on Quizplus for this Chatper
107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/37428
Sample Questions
Q1) FOB place of shipment
Q2) lease
Q3) The Code's remedies are cumulative, therefore, a seller may both withhold delivery of the goods and identify goods to the contract.
A)True
B)False
Q4) Where the seller fails to make delivery, the buyer can cancel the contract, but he must give the seller notice of his cancellation.
A)True
B)False
Q5) The Code follows the doctrine of election of remedies.
A)True
B)False
Q6) statute of repose
Q7) destination contract
Q8) The contract between the buyer and the seller cannot provide for any additional remedies other than those specified in the Code.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 25
Chapter 24: Form and Content
Available Study Resources on Quizplus for this Chatper
67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/37429
Sample Questions
Q1) An assignee of contractual rights acquires only the same rights as the assignor.
A)True
B)False
Q2) A promise or order is unconditional unless it states that:
A)there is an express condition to payment.
B)the promise or order is subject to or governed by another writing.
C)rights or obligations concerning the order or promise are stated in another writing.
D)All of the above.
Q3) Which of the following is not a negotiable instrument?
A)A check.
B)A draft.
C)A certificate of deposit.
D)A stock certificate.
Q4) Jones signed a 90-day note promising to pay $1,000 plus interest.The note states that interest is to be based on a variable, published rate external to the note.The sum the borrower must repay is uncertain, so the note is not negotiable under Revised Article 3.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 26
Chapter 25: Transfer
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/37430
Sample Questions
Q1) A person can be a holder if:
A)the instrument has been issued to that person.
B)the instrument has been transferred to that person by negotiation.
C)the instrument is ambiguous.
D)Both (a) and (b) are correct.
Q2) A conditional indorsement is one by which the indorser makes the rights of the indorsee subject to the happening or nonhappening of a specified event, but such an indorsement is ineffective under Revised Article 3.
A)True
B)False
Q3) A negotiation can be effective to transfer an instrument even if made by a person without capacity.
A)True
B)False
Q4) If the issuer and the person paying an instrument subject to the impostor rule are both negligent, comparative negligence would apply.
A)True
B)False
Q5) What is negotiation? How does one become a "holder" of an instrument?
To view all questions and flashcards with answers, click on the resource link above. Page 27
Chapter 26: Holder in Due Course
Available Study Resources on Quizplus for this Chatper
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/37431
Sample Questions
Q1) A Federal Trade Commission rule limits the rights of a holder in due course of an instrument that evidences a debt arising out of:
A)a consumer credit contract.
B)an insurance contract.
C)a consumer purchase paid for with a check.
D)a construction contract.
Q2) To become a holder in due course the transferee must first be a holder.
A)True
B)False
Q3) Alice Jones receives a bonus of $500 from her boss.She needs cash for her vacation, so she indorses the check to Charlie who gives her $300 cash and an IOU for $200.When Charlie presents the check to Alice's company for payment, her boss says the check was meant for Alex Jones instead of Alice; it was all a big mistake.What will Charlie be able to collect from the company?
A)$500.
B)$300.
C)$420.
D)Nothing.
To view all questions and flashcards with answers, click on the resource link above.
28
Chapter 27: Liability of Parties
Available Study Resources on Quizplus for this Chatper
73 Verified Questions
73 Flashcards
Source URL: https://quizplus.com/quiz/37432
Sample Questions
Q1) Thomas is the treasurer of Oklaw, Inc.He has authority to sign on behalf of the company.One day, he signs a note as follows: "Thomas, as treasurer." The company's name does not appear on the note.Is the company liable on the note? Is Thomas liable on the note? Explain.
Q2) An acceptance must be written on the draft.
A)True
B)False
Q3) Jan Arthur writes a $200 check to Bruce Nole who indorses it "Bruce Nole." Bruce gives the check to Anne Tate who indorses it "Without Recourse.Anne Tate." Anne sends the check to Joe Black, MD to pay her medical bill.If the bank refuses to honor the check, Black:
A)can collect only from Jan Arthur.
B)can collect only from Jan Arthur or Bruce Nole.
C)can collect from the drawer or any indorser whose name appears on the check. D)has no other recourse.
Q4) Primary liability does not apply to issuers of cashier's checks.
A)True
B)False
Q5) List and generally explain the warranties on presentment.
Q6) Discuss the effect of an unauthorized signature on an instrument.
Page 29
To view all questions and flashcards with answers, click on the resource link above.
Chapter 28: Bank Deposits, Collections, and Funds
Transfers
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/37433
Sample Questions
Q1) If First Bank receives a check for collection on Friday at 4:30 p.m., it does not have to present the check to the payor bank by midnight Saturday.
A)True
B)False
Q2) If a bank pays on a check even though it has a "stop payment order," the bank is liable to the customer only if the customer can prove a loss because of the payment.
A)True
B)False
Q3) A preauthorized electronic transfer from a consumer's account:
A)may be orally authorized at the time the transfer is to be made.
B)must be authorized in writing in advance of the time the transfer is to be made.
C)may be stopped only by written notice to the financial institution at least five business days before the scheduled date of transfer.
D)is limited to an amount of $500 or less.
Q4) A depositary bank is any bank handling an item for payment.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 30
Chapter 29: Relationship of Principal and Agent
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/37434
Sample Questions
Q1) Discuss the nature of agency, including the scope of agency purposes.
Q2) A fiduciary duty, arising out of a relationship of trust and confidence, is one of utmost loyalty and good faith.
A)True
B)False
Q3) 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 the above are correct.
Q4) Diane appoints Edward as her agent to sell goods in markets where the highest price can be obtained.Edward sells the goods in a market that is glutted and obtains a low price, even though he could have obtained a higher price in a nearby market by using more care in obtaining the available market information.Edward is liable to Diane for breach of the duty of diligence.
A)True
B)False
Q5) What is an independent contractor? Can an independent contractor also be an agent? Explain.
To view all questions and flashcards with answers, click on the resource link above. Page 31
Chapter 30: Relationship With Third Parties
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/37435
Sample
Questions
Q1) When is a principal liable for her own tortious conduct involving the use of agents?
Q2) Ratification:
A)can only occur after the third person withdraws from the transaction and gives notice of such withdrawal.
B)cannot be effective against a corporation.
C)is equivalent to prior authority.
D)Both (a) and (b) are correct.
Q3) Actual express authority depends on the third party having knowledge of the manifestations or statements made by the principal to the agent.
A)True
B)False
Q4) Actual authority consists of both express and implied authority.
A)True
B)False
Q5) Actual notice requires a written, not oral, communication to the third party.
A)True
B)False
Q6) Discuss the requirements and effect of ratification of an agent's acts.
To view all questions and flashcards with answers, click on the resource link above. Page 32
Chapter 31: Formation and Internal Relations of General Partnerships
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/37436
Sample Questions
Q1) Andre invested $100,000 in a partnership with Erik and Louis.Andre's contract with the partnership states he will receive a portion of partnership profits, but he will be liable for partnership's debts only to the extent of the $100,000 he invested.Andre is:
A)a subpartner.
B)a dormant partner.
C)a limited partner.
D)an aggregate partner.
Q2) General partnerships are used frequently in finance, insurance, accounting, real estate, law, and other services.
A)True
B)False
Q3) A corporation is a legal entity separate from its owners who have limited liability for the corporation's obligations.
A)True
B)False
Q4) Sole proprietors have limited liability for the sole proprietorship's debts.
A)True
B)False
Page 33
To view all questions and flashcards with answers, click on the resource link above.
Chapter 32: Operation and Dissolution of General Partnerships
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/37437
Sample Questions
Q1) Which of the following can be done with the consent of only a majority of the partners in a partnership?
A)Submission of a partnership claim to arbitration.
B)Confession of judgment.
C)The sale of an office computer.
D)All of the above.
Q2) A partner may bind the partnership by her act if she has:
A)actual authority, express or implied, to perform the act.
B)apparent authority to perform the act.
C)Both (a) and (b) are correct.
D)None of the above.
Q3) Define dissolution under the UPA and discuss its three causes.
Q4) Winding up involves all but which one of the following?
A)Selling assets for cash.
B)Collecting debts owed to the partnership.
C)Taking orders for business.
D)Paying creditors.
Q5) The UPA marshaling of assets doctrine is abolished by the RUPA.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 34
Chapter 33: Limited Partnerships and Limited Liability Companies
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/37438
Sample Questions
Q1) Some statutes permit the operating agreement of a limited liability company to deny members the right to withdraw from the company.
A)True
B)False
Q2) A general partnership that, by making the statutorily required filing, limits the liability of its partners for some or all of the partnership's obligations is known as a:
A)limited liability partnership.
B)limited liability company.
C)limited liability limited partnership.
D)limited partnership.
Q3) The certificate of a limited partnership must be amended if a new general partner is admitted.
A)True
B)False
Q4) The laws of the state in which a foreign limited partnership is organized govern its organization, its internal affairs, and the liability of its limited partners.
A)True
B)False
Page 35
To view all questions and flashcards with answers, click on the resource link above.
Chapter 34: Nature and Formation of Corporations
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/37439
Sample Questions
Q1) All of the following are characteristics of a corporation EXCEPT:
A)it has perpetual existence.
B)it is a legal entity of its own.
C)it is able to be sued and to sue.
D)it is usually managed by its owners.
Q2) All of the following are true of promoters of a corporation EXCEPT:
A)They solicit investors to begin the corporation.
B)They prepare the formal documents of incorporation.
C)They may make contracts in the name of the corporation.
D)They continue to solicit capital whenever needed after incorporation.
Q3) A corporation is a creature of the state and may be formed only by substantial compliance with a state incorporation statute.
A)True
B)False
Q4) What statutory powers does a corporation normally possess?
Q5) In many states, the services of the incorporators are perfunctory and short-lived.
A)True
B)False
Q6) What are the consequences of a defective incorporation?
Page 36
To view all questions and flashcards with answers, click on the resource link above.
Chapter 35: Financial Structure of Corporations
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/37440
Sample Questions
Q1) The earned surplus test does not permit capital surplus to be used for the payment of dividends.
A)True
B)False
Q2) Which of the following is correct with regard to common stock?
A)The Revised Act has eliminated the terms "preferred" and "common."
B)Common stock does not have any special contract rights or preferences.
C)Common stock generally bears the greatest risk of loss in the event of the failure of the enterprise.
D)All of the above are correct with regard to common stock.
Q3) The earned surplus test for the issuance of dividends by a corporation is less restrictive than the surplus test.
A)True
B)False
Q4) A distribution may be in the form of:
A)declaration of a dividend.
B)a purchase, redemption, or other acquisition of shares.
C)a distribution of indebtedness.
D)All of the above.
Q5) How does the Revised Act define the term "distribution"?
Page 37
To view all questions and flashcards with answers, click on the resource link above.
Chapter 36: Management Structure of Corporations
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/37441
Sample Questions
Q1) Virtually all shareholders who vote for directors do so through the use of a proxy.
A)True
B)False
Q2) What are some of the areas where the board determines corporation policy?
A)Selecting and removing officers.
B)Determining the corporation's capital structure.
C)Initiating fundamental changes and declaring dividends.
D)Setting management compensation.
E)All of the above.
Q3) Unlike voting trusts, shareholder voting agreements are not limited in duration.
A)True
B)False
Q4) Assume that 12,000 shares are represented at a shareholder meeting.How many votes are normally necessary to carry a motion?
A)4,001
B)8,001
C)6,001
D)10,000
Q5) Discuss the business judgment rule.
To view all questions and flashcards with answers, click on the resource link above. Page 38
Chapter 37: Fundamental Changes of Corporations
Available Study Resources on Quizplus for this Chatper
130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/37442
Sample Questions
Q1) preemptive right
Q2) limited liability partnership
Q3) proxy
Q4) A __________ is a general invitation to all of the shareholders of a target company to sell their shares for a specified price.
A)compulsory share exchange.
B)tender offer.
C)buyout.
D)None of the above.
Q5) A dissenting shareholder who complies with all applicable requirements is entitled to an appraisal remedy.
A)True
B)False
Q6) derivative suit
Q7) Conversion procedures are used to eliminate minority shareholders by forcing them to accept cash or property for their shares.
A)True
B)False
Q8) stock options
To view all questions and flashcards with answers, click on the resource link above. Page 39
Chapter 38: Secured Transactions and Suretyship
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/37443
Sample Questions
Q1) Under the Code, collateral is classified according to:
A)its nature and use.
B)the fundamental rights of the secured party.
C)the fundamental rights of the debtor.
D)None of the above.
Q2) Temporary 20-day automatic perfection of a negotiable instrument would prevent any future holder of the instrument from taking priority.
A)True
B)False
Q3) The promise of a surety is binding even without consideration.
A)True
B)False
Q4) Every consensual secured transaction involves:
A)a debtor, a secured party, and collateral.
B)value and a surety.
C)a security agreement and a security interest.
D)All of the above.
E)Both (a) and (c).
Q5) Explain how the Revised Act facilitates electronic filing of a financing statement.
To view all questions and flashcards with answers, click on the resource link above. Page 40
Chapter 39: Bankruptcy
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/37444
Sample Questions
Q1) A debt is an obligation to pay money owed by a debtor to a creditor.
A)True
B)False
Q2) Edward's Excursions Inc.filed for Chapter 7 bankruptcy.It has $100,000 in assets.The outstanding debts include:
$50,000 to Arthur secured by a boat worth $25,000.$30,000 to Bradley secured by a truck worth $30,000.$20,000 to Clarence unsecured.The month before Edward's closed and filed for bankruptcy, its employees earned $10,000 for which they did not get paid.They also should have been credited with $3,000 for their pension plan.Edward's owes $4,000 in back taxes.In the process of administering the estate, the trustee paid $5,000 in attorney fees.In what order will these claims be paid?
Q3) Discharge relieves the debtor in bankruptcy from liability for all of his debts.
A)True
B)False
Q4) Federal district courts may hear all matters collateral to the bankruptcy, even if these matters are not normally permitted to be brought in federal court.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 41
Chapter 40: Securities Regulation
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/37445
Sample Questions
Q1) The Securities Act of 1933 has two basic objectives, one of which is to:
A)extend protection to investors trading in outstanding, issued securities.
B)grant the SEC power to impose administrative, civil penalties up to $600,000.
C)regulate disclosure requirements on publicly held corporations.
D)prohibit misrepresentation, deceit, and other fraudulent acts and unfair practices in the sale of securities generally, whether or not they are required to be registered.
Q2) Only civil liability may be imposed for violations of the Securities Act of 1933.
A)True
B)False
Q3) Insiders may refrain from trading on inside information rather than disclose it to avoid liability under Rule 10b-5.
A)True
B)False
Q4) The antifraud provisions of the 1933 Act pertain to both unregistered and registered securities.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
42
Chapter 41: Intellectual Property
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/37446
Sample Questions
Q1) The union mark attached to many goods in the United States is a collective mark.
A)True
B)False
Q2) A design patent:
A)has a duration of 14 years.
B)refers to ornamental designs for manufactured products.
C)requires a showing of novelty, ornamentality, and nonobviousness.
D)All of the above.
Q3) An example of a "certification mark" would be:
A)Holiday Inns.
B)Xerox.
C)Real Cheese.
D)Nabisco.
Q4) Electronic surveillance for the purpose of acquiring trade secrets is permissible under the law of unfair competition.
A)True
B)False
Q5) One way of keeping a trade secret is to obtain a patent on it.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 43
Chapter 42: Employment Law
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/37447
Sample Questions
Q1) Elmer has been a faithful worker at the Mid-America Manufacturing Company for over thirty years.One day when he comes to work, he gets called into the foreman's office and is told that the company has decided to lay off all of its 250 current employees and move the plant to Mexico just south of the Texas border.
a.Does Elmer have any protections under the common law doctrine of employment at will? Explain.
b.Does Elmer have any protections under employment discrimination law? Explain.
Q2) Garaty, Inc.is currently engaged in negotiations with one of its major unions.The company is covered by the NLRA.If Garaty issues a factually correct statement regarding its financial status along with the opinion of its auditors that meeting the union demands would require the company to close down, it is likely that Garaty will be in compliance with the act.
A)True
B)False
Q3) Affirmative action generally means active recruitment of a designated group of applicants.
A)True
B)False
Q4) What are the remedies available for violations of the Civil Rights Act of 1964?
To view all questions and flashcards with answers, click on the resource link above. Page 44
Chapter 43: Antitrust
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/37448
Sample Questions
Q1) W & W, Inc.manufactures and sells widgets.It sells widgets to Marklin of Marklin's Department Store and gives him a preference in pricing that discriminates against other retailers.Does Marklin have liability for price discrimination? Does W & W, Inc.have liability for price discrimination? Explain.
Q2) Which of the following occurs when the seller of a product, service, or intangible conditions its sale on the buyer's purchasing a second product, service, or intangible from the seller?
A)Boycott.
B)Tying agreement.
C)Monopoly.
D)Price fixing.
Q3) The Robinson-Patman Act adds to the Clayton Act merger provisions.
A)True
B)False
Q4) Under the 2004 amendments, corporate offenders who violate Sections 1 or 2 of the Sherman Act face fines of up to $100 million per violation.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
45
Chapter 44: Accountants Legal Liability
Available Study Resources on Quizplus for this Chatper
67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/37449
Sample Questions
Q1) An accountant is negligent if she does not exercise the degree of care a reasonably competent accountant would exercise under the circumstances.
A)True
B)False
Q2) In what situations is the accountant-client privilege recognized?
A)It is only recognized in federal court proceedings.
B)It is recognized by virtue of the common law in most states.
C)It is recognized only in those states that have enacted statutes creating such a privilege.
D)It is recognized in most states by reason of court decisions.
Q3) The common law recognizes an accountant-client privilege.
A)True
B)False
Q4) An accountant is generally held to be the owner of the working papers he uses in performing an audit.
A)True
B)False
Q5) Upon what is an accountant's potential criminal liability in rendering professional services based?
To view all questions and flashcards with answers, click on the resource link above. Page 46
Chapter 45: Consumer Protection
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/37450
Sample Questions
Q1) Which of the following is empowered to issue industry-wide safety standards for consumer products?
A)UCCC
B)RESPA
C)FCCPA
D)CPSC
Q2) The FTC remedy of "affirmative disclosure" would require:
A)a new ad that admits the first ad was false.
B)providing certain information in a company's ad.
C)that the advertiser desist from deception in all products it markets.
D)All of the above would be required.
Q3) 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 contact the company and are given a purchase agreement but no additional information.They sign the purchase agreement and send it back.Then, a week later they decide they would prefer to winter in either New Zealand or Australia.Can the Brauns get out of the contract?
Q4) Discuss ARMs and their regulation.
Q5) Discuss the role of the state attorneys general in consumer protection.
Page 47
To view all questions and flashcards with answers, click on the resource link above.
Chapter 46: Environmental Law
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/37451
Sample Questions
Q1) The Clean Water Act imposes civil penalties but not criminal penalties for violations of the Act.
A)True
B)False
Q2) To establish trespass to land, a plaintiff must show interference with the right of exclusive possession of the property.
A)True
B)False
Q3) The term "nuisance" in the law may mean two distinct types of wrongful actions: one a private nuisance, the other a public nuisance.
A)True
B)False
Q4) If, after making an environmental assessment, a federal agency decides no EIS is required, it must make this decision available to the public.
A)True
B)False
Q5) What are the two major substantive sections of the National Environmental Policy Act?
To view all questions and flashcards with answers, click on the resource link above. Page 48
Chapter 47: International Business Law
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/37452
Sample Questions
Q1) patent
Q2) The European Union currently has how many full members?
A)10.
B)15.
C)25.
D)27.
Q3) multinational enterprise (MNE)
Q4) Only approximately 50 nations have become parties to the Convention on the Settlement of Investment Disputes Between States and Nationals of Other States.
A)True
B)False
Q5) bubble concept
Q6) The U.S.Constitution provides that all valid treaties have the legal force of a federal statute.
A)True
B)False
Q7) copyright
Q8) consumer credit
Q9) horizontal merger
To view all questions and flashcards with answers, click on the resource link above. Page 49
Chapter 48: Introduction to Property, Property Insurance,
Bailments, and Documents of Title
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/37453
Sample Questions
Q1) To prevent the use of the insurance policy for wagering purposes, the person who is to be indemnified under the contract must have:
A)good faith.
B)an insurable interest.
C)a binder.
D)a coinsurance clause.
Q2) An inter vivos gift is a gift:
A)of live animals.
B)contingent upon the donee's surviving the donor.
C)made by a donor during her lifetime.
D)None of the above.
Q3) The delivery necessary for a gift may be accomplished constructively.
A)True
B)False
Q4) Fire insurance policies are standardized in the United States, either by statute or by order of the state insurance departments, so coverage cannot be enlarged to cover any other perils.
A)True
B)False
Q5) Why are delivery and acceptance both necessary for a valid gift? Explain.
To view all questions and flashcards with answers, click on the resource link above. Page 50
Chapter 49: Interests in Real Property
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/37454
Sample Questions
Q1) According to the James v.Taylor case, at common law, if the wording in a deed was ambiguous, the law favored a:
A)tenancy by the entireties.
B)tenancy in partnership.
C)tenancy in common.
D)joint tenancy.
Q2) The Arbor Apartments can legally restrict tenants to those who are married couples.
A)True
B)False
Q3) Which of the following is NOT an example of co-ownership?
A)A joint tenancy.
B)A tenancy by the entireties.
C)A tenancy in common.
D)A lease between a landlord and a tenant.
Q4) If Gil assigns his lease to Jim, Gil has no further obligations to his landlord. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 51
Chapter 50: Transfer and Control of Real Property
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/37455
Sample Questions
Q1) An enabling statute:
A)delegates the power to zone to local city and village authorities.
B)typically allows municipalities to regulate and limit building heights.
C)typically grants the power to limit the intensity of use in a particular area.
D)All of the above.
E)None of the above.
Q2) A deed is not effective to transfer title to land until delivery.
A)True
B)False
Q3) Title to land may be transferred by which of the following?
A)Deed.
B)Will, or by the law of descent upon the death of the owner.
C)Open, continuous, and adverse possession by a nonowner for a statutorily prescribed period of years.
D)All of the above.
Q4) Which of the following carries with it no warranties or guarantees of title?
A)Warranty deed.
B)Quitclaim deed.
C)Special warranty deed.
D)All types of deeds carry a warranty of title.
Page 52
To view all questions and flashcards with answers, click on the resource link above.
Chapter 51: Trusts and Wills
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/37456
Sample Questions
Q1) Testamentary capacity refers to:
A)the age of the testator.
B)the same capacity as required to contract.
C)the ability to understand the nature and extent of one's property, to appreciate the natural objects of one's bounty, and the ability to formulate an orderly plan of disposition.
D)the influence of others over the testator.
Q2) Which of the following is/are considered to be conduct to invalidate a will?
A)Duress.
B)Undue influence.
C)Fraud.
D)All of the above.
Q3) Which of the following would be charged to the life tenant's interest in the course of administering a trust?
A)Expenses of selling a trust investment.
B)The costs of establishing the trust.
C)Ordinary repairs to trust property.
D)Long-term improvements to the trust property.
Q4) intangible property
Q5) easement
To view all questions and flashcards with answers, click on the resource link above. Page 53