Contract Law
Solved Exam Questions
Course Introduction
Contract Law explores the fundamental principles governing legally enforceable agreements. The course covers the formation of contracts, including offer, acceptance, consideration, and intention to create legal relations. Students will examine the role of terms, conditions, representations, and the circumstances that may vitiate a contract, such as misrepresentation, mistake, duress, and undue influence. Additionally, remedies for breach of contract, such as damages, specific performance, and injunctions, are analyzed. Through case studies and statutory interpretation, the course provides a comprehensive understanding of how contract law operates in both commercial and personal contexts.
Recommended Textbook
Fundamentals of Business Law Summarized Cases 9th Edition by Roger LeRoy Miller
Available Study Resources on Quizplus
41 Chapters
2290 Verified Questions
2290 Flashcards
Source URL: https://quizplus.com/study-set/3711 Page 2
Chapter 1: The Legal and Constitutional Environment of Business
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73907
Sample Questions
Q1) Brad stands in front of Rustler's Round-Up Café,shouting "fighting words" that are likely to incite Rustler's patrons to respond violently.The First Amendment protects such speech
A)all of the time.
B)none of the time.
C)only if it is noncommercial.
D)only if it is symbolic.
Answer: B
Q2) Expression of all kinds is subject to reasonable restrictions.
A)True
B)False
Answer: True
Q3) Business Markets Coalition (BMC),a political lobbying group,wants a certain policy enacted into law.If BMC's policy conflicts with the U.S.Constitution,a law embodying it can be enacted by
A)any state legislature and Congress.
B)any state legislature but not Congress.
C)Congress but not any state legislature.
D)none of the choices.
Answer: D
Page 3
To view all questions and flashcards with answers, click on the resource link above.
Chapter 2: Traditional and Online Dispute Resolution
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73908
Sample Questions
Q1) Hua,a resident of Illinois,owns a warehouse in Indiana.A dispute arises over the ownership of the warehouse with Jac,a resident of Kentucky.Jac files a suit against Hua in Indiana.Regarding this suit,Indiana has
A)federal question jurisdiction.
B)in personam jurisdiction.
C)in rem jurisdiction.
D)no jurisdiction.
Answer: C
Q2) Refer to Fact Pattern 2-1.If Java and Kaffe have a long-standing business relationship that they would like to continue,a preferred method of settling their dispute may be mediation because
A)the case will be heard by a mini-jury.
B)the dispute will eventually go to trial.
C)the process is not adversarial.
D)the resolution of the dispute will be decided an expert.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Ethics and Business Decision Making
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73911
Sample Questions
Q1) Dion,an accountant for Entertainment Sports,Inc. ,attempts to apply a duty-based approach to ethical reasoning in conflicts that occur on the job.This approach is based on the idea that a person must
A)achieve the greatest good for the most people.
B)avoid unethical behavior regardless of the consequences.
C)conform to society's ethical standards.
D)place his or her employer's interest first.
Answer: B
Q2) 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.
Answer: D
Q3) An action may be legal and ethical.
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/73913
Sample Questions
Q1) Liu enters Mountain Triathlon,an athletic competition in which Liu has never competed.Regarding the risk of injury,Liu assumes the risks
A)attributable to the Triathlon in any way.
B)different from the risks normally associated with the Triathlon.
C)greater than the risks normally associated with the Triathlon.
D)normally associated with the Triathlon.
Q2) Under the doctrine of comparative negligence,both the plaintiff's and the defendant's negligence are taken into consideration.
A)True
B)False
Q3) To avoid liability for negligence,a business owner must protect its patrons against all risks.
A)True
B)False
Q4) The doctrine of negligence per se applies if an event causing harm does not normally occur in the absence of negligence.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
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/73915
Sample Questions
Q1) Mary Kate Corporation allows Ashley Company to use Mary Kate's trademark as part of Ashley's domain name.This is
A)a license.
B)a likelihood of consumer confusion.
C)cybersquatting.
D)trademark dilution.
Q2) It is possible to copyright an idea.
A)True
B)False
Q3) A certification mark distinguishes products approved,or "certified," by the government.
A)True
B)False
Q4) A suggestive use of ordinary words may not be trademarked.
A)True
B)False
Q5) Trade dress has the same legal protection as trademarks.
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
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73917
Sample Questions
Q1) Identity theft occurs when a wrongdoer steals another's form of identification.
A)True
B)False
Q2) Leah gains access to government records and alters certain dates and amounts in her favor.This is A)embezzlement.
B)forgery.
C)larceny.
D)no crime.
Q3) Britney,an employee of Computer Associates,is arrested at work.A grand jury issues a formal charge against Britney for larceny.This charge is A)an arraignment.
B)an indictment.
C)an information.
D)an inquisition.
Q4) It may be a crime to take another's property,but it is not a crime to receive stolen goods.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Nature and Classification
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73919
Sample Questions
Q1) One of the requirements of a valid contract is its acceptance.
A)True
B)False
Q2) Phil enters into a contract with Vacation Resorts,Inc. ,to work as a chef.Under the plain meaning rule,the meaning of this contract must be determined by reference to A)any available evidence.
B)any relevant extrinsic evidence.
C)the face of the instrument.
D)the later testimony of the parties.
Q3) Cory enters into a contract with Dian to act as her personal sports trainer.If they later dispute the meaning,and the contract contains unclear terms,the rules of contract interpretation will give effect to
A)the parties' intent as expressed in their contract.
B)what the defendant claims was the parties' intent.
C)what the plaintiff claims was the parties' intent.
D)what the parties now agree they intended.
Q4) Offers may not be revoked before they are accepted.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Agreement in Traditional and E-Contracts
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/73921
Sample Questions
Q1) An offer must be practical to be effective.
A)True
B)False
Q2) An offer must be communicated to the offeree to be effective.
A)True
B)False
Q3) Shelby offers to make digital copies of Relay Company's business conference videotapes,CDs,DVDs,and other media for $500.Under the mailbox rule and the Uniform Electronic Transactions Act (UETA),Relay's acceptance by e-mail will be considered effective when A)received.
B)sent.
C)followed up by a confirmation letter sent by regular mail.
D)composed on a Relay computer.
Q4) An electronic symbol,adopted by a person with the intent to sign an e-record,is an e-signature.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Consideration,capacity,and Legality
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73923
Sample Questions
Q1) A promise to do something that one has a prior legal duty to do is not consideration.
A)True
B)False
Q2) A promise to pay for an act that has already occurred is enforceable because the event is certain.
A)True
B)False
Q3) A court adjudicates Huck mentally incompetent and appoints Inez to be his guardian.Later,without Inez's knowledge,Huck signs a contract to sell his farm to Kyle for its real market value.The contract is
A)enforceable if Huck comprehended the consequences.
B)enforceable if Huck knew the market value of the farm.
C)enforceable if Huck was the record owner of the farm.
D)void.
Q4) In most states,a release requires a signed writing.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Defenses to Contract Enforceability
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73925
Sample Questions
Q1) Misrepresentation of a material fact cannot occur through conduct alone.
A)True
B)False
Q2) An innocent party may seek damages for a fraudulent contract.
A)True
B)False
Q3) Misrepresentation of an opinion is an element of fraud.
A)True
B)False
Q4) A mistake of fact can only be bilateral.
A)True
B)False
Q5) Hillside Homes,Inc. ,and Ideal Builders,Inc. ,enter into a construction contract that includes six pages of detailed calculations.Later Hillside,whose project manager compiled the figures,discovers that some numbers were multiplied incorrectly,but Ideal refuses to make changes.A court would most likely
A)allow the parties to rescind the contract.
B)award damages to Hillside for the mistakes.
C)award damages to Ideal for the mistakes.
D)enforce the contract without requiring changes.
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Third Party Rights and Discharge
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73926
Sample Questions
Q1) Ellen contracts to buy six cases of vintage Fertile Valley wine from Grapes & Vines Winery for $1,200.The contract states that delivery is to be made at Ellen's residence "on or before May 1,to be used for daughter's wedding reception on May 2." On May 1,Grapes & Vines's delivery van is involved in an accident,no wine is delivered that day,and no one from Grapes & Vines tells Ellen.On the morning of May 2,Ellen buys the wine from Happy Hill Winery.That afternoon,just before the reception,Grapes & Vines tenders delivery of the wine at Ellen's residence.She refuses tender.Grapes & Vines sues her for breach of contract.How is the court most likely to rule?
Q2) A novation revokes and discharges a prior contract.
A)True
B)False
Q3) Refer to Fact Pattern 11-1.With respect to Mutual's duties,Neil's performance most likely
A)discharges Mutual from the contract.
B)has no effect on Mutual's performance.
C)increases Mutual's duties under the contract. D)suspends Mutual's duty to perform.
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Breach and Remedies
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73927
Sample Questions
Q1) Restitution involves one party's recapture of a benefit through which another party has been unjustly enriched.
A)True
B)False
Q2) Specific performance is the remedy customarily used when one party has breached a contract for personal services.
A)True
B)False
Q3) General Equity Corporation enters into a contract with Honi,who agrees to create artwork for General's main office building.Honi delays and eventually refuses to perform.Meanwhile,General contracts to sell the building to Ideal Investments,Inc. ,but before the transaction is complete,Jewel Funds Company offers to pay a higher price.General refuses to transfer the building to Ideal.In separate suits by General against Honi and by Ideal against General,each plaintiff seeks specific performance.How might the court rule in each case,and why?
Q4) Punitive damages are never awarded in breach of contract actions.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: 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/73928
Sample Questions
Q1) Timber Products,Inc. ,and Walt,a consumer,enter into a contract for a sale of plywood.If the contract includes a clause that is perceived as grossly unfair to Walt,its enforcement may be challenged under the doctrine of A)good faith.
B)square dealing.
C)the mere image rule.
D)unconscionability.
Q2) Uri sells 100 cases of vitamins to Wanda,but before she takes physical possession,the cases are lost.Under the UCC,the parties' rights and obligations with respect to the loss depend on the concept of A)physical possession.
B)product liability.
C)risk of loss.
D)title.
Q3) Article 2 of the UCC governs contracts for sales of services.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Performance Breach of Sales Lease Contracts
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73929
Sample Questions
Q1) Refer to Fact Pattern 14-1.Java can
A)assign its rights under the contract but cannot terminate it.
B)do nothing.
C)suspend performance under the contract until Java is fully paid.
D)terminate the contract and seek damages.
Q2) Owen and Pablo enter into a contract for a sale of fifty Western saddles.Pablo pays,but Owen does not deliver.Pablo can normally recover as damages the difference between
A)any loss avoided and any profit gained.
B)the actual price and the hoped-for price.
C)the contract price and the market price.
D)the current prices in the parties' locations.
Q3) Text Publishers,Inc. ,contracts for a sale of textbooks to University Bookstores,Inc.Vital Shipping Corporation,the carrier,transports the books to Warehouse Storage Company.Text's right to stop delivery is lost when University's rights to the goods are acknowledged by
A)the appropriate government agency only.
B)Vital Shipping only.
C)Vital Shipping or Warehouse Storage.
D)Warehouse Storage only.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Warranties and Product Liability
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73930
Sample Questions
Q1) Open Country,Inc. ,makes grills,camp ovens,and other outdoor cooking appliances.Under the Restatement (Third)of Torts: Products Liability,Open Country could be liable for a warning defect if there is a foreseeable risk of harm posed by one of its products and
A)the omission of a warning renders the product not reasonably safe.
B)there is a reasonable alternative design.
C)there is a lack of care in making of the product.
D)none of the choices.
Q2) Forest & Field Company makes and leases a backhoe to Zach.Due to a defect attributable to Forest & Field's negligence,Zach is injured in an accident in which his neighbor Aron is also hurt.In a product liability suit based on negligence,Forest & Field may be liable to
A)Aron only.
B)no one.
C)Zach and Aron.
D)Zach only.
Q3) A product is unmerchantable if an accident could arise in connection with the goods.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Negotiability,transferability,and Liability
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73931
Sample Questions
Q1) USA Oil Corporation signs an instrument that states it is being executed "in accord with a contract for the purchase of 4,000 barrels of oil dated May 1." This instrument is A)negotiable.
B)nonnegotiable,because information about the sale must be obtained from another source.
C)nonnegotiable,because it states an express condition to payment.
D)nonnegotiable,because the terms of the sale are not clear.
Q2) A person who receives an instrument as a gift normally possesses the rights of an HDC.
A)True B)False
Q3) A person whose name is forged on an instrument is liable to pay only a holder in due course the value of the forged instrument. A)True
B)False
Q4) An instrument is not defective because it has been previously dishonored. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
18
Chapter 17: Checks and Banking in the Digital Age
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/73932
Sample Questions
Q1) Refer to Fact Pattern 17-2.Tom's bank is
A)the cashing bank.
B)the depositary bank.
C)the intermediary bank.
D)the payor bank.
Q2) A drawer is not liable to the holder of a check if the check is not honored.
A)True
B)False
Q3) Generally,a cash deposit is not available for withdrawal until the next business day.
A)True
B)False
Q4) The death of a customer revokes a bank's authority to pay an item.
A)True B)False
Q5) A bank is subject to a civil suit if its customer writes a bad check. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Security Interests in Personal Property
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73933
Sample Questions
Q1) Summit Credit Corporation lends funds to Toby,a consumer,to apply to the cost of a sport utility vehicle (SUV),which is the collateral for the loan.An enforceable security interest also requires
A)a written agreement and Summit's possession of the SUV.
B)a written agreement or Summit's possession of the SUV.
C)the vehicle seller's acknowledgement of the loan in writing.
D)Toby's possession of the SUV.
Q2) Mona lives in New Jersey,but she works in New York.Mona borrows $1,000 from National Bank,using her motorcycle as collateral.To perfect its security interest,the bank must file its financing statement in at least A)every state.
B)New Jersey.
C)New Jersey and New York.
D)New York.
Q3) Intermittent advances against a line of credit can be subject to the same collateral.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 19: Creditors Rights and Bankruptcy
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73934
Sample Questions
Q1) Delilah files a petition in bankruptcy.The proceeding is governed by the Bankruptcy Code,which is part of
A)state law.
B)federal law.
C)the U.S.Constitution.
D)international law.
Q2) One of the primary effects of a discharge is to relieve the liability of a co-debtor.
A)True
B)False
Q3) If a debtor's income is below the median income,there is a presumption of bankruptcy abuse.
A)True
B)False
Q4) Refer to Fact Pattern 19-2.If Nina recovers less than she is owed,she can realize the difference from
A)any property that Mary owns.
B)only exempt property that Mary owns.
C)only nonexempt property that Mary owns.
D)property that any other member of Mary's family owns.
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Mortgages Foreclosures After the Recession
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73935
Sample Questions
Q1) Milo borrows $125,000 from North State Bank to buy a home.To comply with the Statute of Frauds,the mortgage must be
A)a highly formal document.
B)a particular form.
C)in the same format as the lender's other loans.
D)in writing.
Q2) Lenders can require balloon payments for loans with terms of five years or less.
A)True
B)False
Q3) Shade Tree Lending Corporation advertises loans as fixed-rate loans but,in fact,their rates or payment amounts will change.This is
A)a legal and ethical-but morally arguable-financial ruse.
B)a legal-but unethical-business practice.
C)a necessary tactic to generate a profitable loan in today's market.
D)a violation of the law.
Q4) Negative amortization occurs when the monthly payments are insufficient to cover the interest due on a loan.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Agency Relationships
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73936
Sample Questions
Q1) An agency relationship cannot exist in the absence of a formal agreement.
A)True
B)False
Q2) An independent contractor can be an agent for his or her employer.
A)True
B)False
Q3) An independent contractor's physical conduct is controlled,or subject to control,by his or her employer.
A)True
B)False
Q4) A principal is not liable to a third party for any contract made by the agent acting outside the scope of his or her authority.
A)True
B)False
Q5) An agent can take advantage of an agency relationship to make a "secret" profit. A)True
B)False
Q6) A power of attorney is a written document.
A)True
B)False
Page 23
To view all questions and flashcards with answers, click on the resource link above.
Chapter 21: Management Perspective:
Independent-Contractor Negligence
Available Study Resources on Quizplus for this Chatper
7 Verified Questions
7 Flashcards
Source URL: https://quizplus.com/quiz/73918
Sample Questions
Q1) Jewel Property Company hires Klint,an independent contractor,to wash the windows of Jewel's commercial building.Jewel's tenant Lucy is injured when Klint closes a window on her hand.In determining whether Jewel is liable for Lucy's injury,the most important factor is
A)Jewel's employment of Klint.
B)Jewel's investigation of Klint's background and experience.
C)the condition of the premises,especially the window.
D)the degree of control that Jewel maintained over Klint's actions.
Q2) According to the dissent's opinion in Media General Operations,Inc.v.National Labor Relations Board,in determining whether a discharge for an employee's "outburst" in violation of a workplace rule violates the NLRA,the court should focus on whether A)the arrest of the employee is warranted.
B)the NLRA generally protects the employee from discharge.
C)the remark undermines workplace discipline.
D)the rule is fair and justifiable.
To view all questions and flashcards with answers, click on the resource link above.
Page 24
Chapter 22: Employment, immigration, and Labor Law
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73937
Sample Questions
Q1) An employer with fewer than fifteen employees is automatically shielded from federal employment discrimination laws.
A)True
B)False
Q2) Link and Meryl are employees of Natural Resources,Inc.(NRI).When Odel,the president of NRI,learns that Link and Meryl are active in union activities,he discharges them.Link and Meryl may bring an action against NRI under
A)federal labor law.
B)federal or state unemployment law.
C)state workers' compensation law.
D)the employment at-will doctrine.
Q3) Seafood Canning Corporation keeps a file of I-9 verifications forms.To inspect this file,the appropriate government officer must obtain
A)a subpoena and a warrant.
B)a subpoena or a warrant,but not both.
C)not a subpoena,a warrant,or the employer's consent.
D)the employer's consent.
To view all questions and flashcards with answers, click on the resource link above. Page 25
Chapter 23: Sole Proprietorships, partnerships, Limited Liability Co
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73938
Sample Questions
Q1) Noah and Orin do business as Pest Control Partners.In most states,for the purposes of suing and being sued,Pest Control Partners would be treated as
A)an aggregate of the individual partners.
B)a natural person.
C)an entity.
D)a non-existent party.
Q2) The liability of the members of a limited liability company is limited to the amount of their investments.
A)True
B)False
Q3) In a limited partnership,a limited partner is personally liable to the partnership's creditors.
A)True
B)False
Q4) Joint ownership of property in and of itself creates a partnership.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 26
Chapter 24: Corporate Formation, financing, and Termination
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73939
Sample Questions
Q1) Mall Stores Corporation owns 95 percent of the shares of Niche Retail Corporation.Mall Stores combines with Niche Retail,but only Mall Stores continues to exist.This transaction was
A)a consolidation.
B)a share exchange.
C)a short-form merger.
D)a termination.
Q2) A merger between Grain Mills Corporation and Farm2Fork Distribution Inc.can be expressed as Grain Mills + Farm2Fork = A)Farm2Fork.
B)Harvest Dining Corporation.
C)Harvest Dining Corporation + EZ Brewing Company.
D)EZ Brewing Company.
Q3) Superior Home Products,Inc. ,is a corporation.Superior's implied powers enable it to A)amend the articles of incorporation.
B)bring a derivative suit.
C)declare dividends.
D)perform all acts reasonably appropriate and necessary to accomplish its corporate purposes.
To view all questions and flashcards with answers, click on the resource link above. Page 27
Chapter 25: Corporate Directors, officers, Shareholders
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73940
Sample Questions
Q1) A dividend may be paid from undistributed net corporate profits.
A)True
B)False
Q2) The article of corporation cannot exclude shareholders' voting rights.
A)True
B)False
Q3) Kelly transfers shares of stock that she owns in Lone Starz Company to Max.A shareholders' meeting takes place before Max's ownership is entered in Lone Starz's stock book.A vote at the meeting can be cast by
A)Kelly and Max.
B)Kelly only.
C)Max only.
D)neither Kelly nor Max.
Q4) Corporate directors and officers are insurers of business success.
A)True
B)False
Q5) Officers are required to exercise a reasonable amount of supervision over the corporate directors.
A)True
B)False
28
To view all questions and flashcards with answers, click on the resource link above.
Chapter 26: 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/73941
Sample Questions
Q1) The key to liability under Section 10(b)of the Securities Exchange Act of 1934 and SEC Rule 10b-5 is whether undisclosed inside information is material.
A)True
B)False
Q2) Della,an officer for Energy Petrol Corporation (EPC),buys 100 shares of EPC stock.One week later,EPC announces that it will merge with a competitor,Fuel Oil Company,and the price of EPC stock increases.One month later,Della sells her shares for a profit.Under Section 16(b)of the Securities Exchange Act of 1934,Della would not be liable if,after buying the stock,she had waited
A)less than fourteen days to sell it.
B)more than six months to sell it.
C)ninety days to sell it.
D)two months to sell it.
Q3) SEC Rule 10b-5 prohibits the commission of fraud in connection with the purchase or sale of any security.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 29
Chapter 27: Personal Property and Bailments
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73942
Sample Questions
Q1) Personal property is sometimes referred to as personalty or chattel.
A)True
B)False
Q2) Refer to Fact Pattern 27-1.TTC can avoid liability
A)by proof that TTC did not convert the goods and was not negligent.
B)by proof that TTC's warehouse is located in a high-crime area.
C)by proof that Unlimited Sales was negligent in hiring TTC.
D)under any circumstances.
Q3) A gift is a voluntary transfer of property for which no consideration is given.
A)True
B)False
Q4) Constructive delivery does not satisfy the delivery requirement for an effective bailment.
A)True
B)False
Q5) In an ordinary bailment,a bailee has the right to limit his or her liability.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 30
Chapter 28: 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/73943
Sample Questions
Q1) Patsy possesses twenty-four acres of remote,rugged land.Patsy has the right to use the property,including extracting silver from an existing mine,for life.Patsy also has the right to lease the land for a period not to exceed her life.Patsy's ownership interest is A)a fee simple absolute.
B)a leasehold estate.
C)a life estate.
D)the power of eminent domain.
Q2) Real estate sales contract are often made contingent on the buyer obtaining financing.
A)True
B)False
Q3) Constructive eviction occurs when a tenant moves off the premises in retaliation against the landlord.
A)True
B)False
Q4) Even after a tenant assigns a lease,the tenant may be obligated to pay rent.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 29: Insurance, wills, and Trusts
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73944
Sample Questions
Q1) Ratzo is asked to be a witness to Sade's will.Before attesting to the will,
A)Ratzo does not have to read the will or be informed of its contents.
B)Ratzo must read the will and recite its contents.
C)Sade must orally tell Ratzo of the will's contents.
D)Sade's attorney must read the will aloud to Ratzo.
Q2) Undue influence can occur when a named beneficiary is in a position to influence the making of a will.
A)True
B)False
Q3) If a life insurance applicant pays a premium but dies before the physical exam,there is obviously no coverage.
A)True
B)False
Q4) Liability insurance protects against liability imposed on the insured as a result of injuries to the person or property of another.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 30: Liability of Accountants Other Professionals
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/73945
Sample Questions
Q1) Lebron,an attorney,allows a statute of limitations to lapse on a claim by Midwest Metal Fabrication Company,a client.Lebron
A)can be held liable for malpractice.
B)has violated an ethical standard but cannot be held liable.
C)is subject to criminal penalties under the statute of limitations.
D)will be automatically disbarred.
Q2) Leslie,an accountant,enters into a contract to provide services to Marty.Leslie does not finish the work within the contract's deadline.Leslie is A)liable for breach of contract.
B)not liable,because Leslie is a professional.
C)not liable,because Leslie's failure must have been Marty's fault.
D)not liable,because the work took longer than foreseen.
Q3) An accountant is not liable for a misleading statement that affects the price of a security if the accountant acted in good faith.
A)True
B)False
Q4) Malpractice is professional negligence.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 33
Chapter 31: 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/73946
Sample Questions
Q1) A clause in a contract between Timber Corporation,a U.S.business,and Wang,Ltd. ,a Japanese business,specifies that disputes over the contract will be adjudicated in the United States.This is
A)a choice-of-forum clause.
B)a choice-of-law clause.
C)a force majeure clause.
D)an arbitration clause.
Q2) An international custom is a general practice accepted in the international arena as law.
A)True
B)False
Q3) Call Center Corporation,a U.S.firm,owns property in India.The government of India seizes the property for a proper public purpose and pays Call Center just compensation.This is
A)confiscation.
B)defalcation.
C)dumping.
D)expropriation.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 32: Adapting the Law to the Online Environment:
The Supreme Court Upholds a Law That Prohibits Pandering
Virtual Child Pornography
Available Study Resources on Quizplus for this Chatper
9 Verified Questions
9 Flashcards
Source URL: https://quizplus.com/quiz/73906
Sample Questions
Q1) Global Enterprises Corporation (GEC)engages in what some unhappy ex-employees and disgruntled consumers consider to be bad corporate behavior.These individuals post "horror stories" about GEC on rogue Web sites.By providing a forum for complaints,the potential for damage to the reputation of any corporation via the Internet has
A)decreased.
B)increased.
C)neither decreased nor increased.
D)both decreased and increased.
Q2) Arizona enacts a statute that directly conflicts with a federal law.Under the supremacy clause of the U.S.Consitution,
A)Arizona's statute is rendered invalid.
B)the federal law is rendered invalid.
C)Arizona's statute and the federal law are both rendered invalid.
D)Arizona's statute and the federal law apply concurrently.
To view all questions and flashcards with answers, click on the resource link above.
35
Available Study Resources on Quizplus for this Chatper 9 Verified Questions
9 Flashcards
Source URL: https://quizplus.com/quiz/73909
Sample Questions
Q1) O.K.Valve Company applies for a patent for a valve.Meanwhile,O.K.licenses its products,including the valve,to Petro Pumps,Inc. ,which uses the valve to make oil pumps.Under the terms of the license,Petro agrees to pay royalties on O.K.'s "patented" products.When a patent is granted on the valve,O.K.asks Petro to pay royalties on the sales of its pumps.Petro wants to challenge the validity of O.K.'s patent.According to the majority in MedImmune,Inc. ,v.Genentech,Inc.case,a patent licensee can challenge the validity of a licensed patent
A)only after breaching the license agreement.
B)only before breaching the license agreement.
C)without breaching the license agreement.
D)under no circumstances.
Q2) One night,Bertram discovers Clu,an intruder,in Bertram's Deli Delite store after the store is closed.Bertram shoots and kills Clu.With respect to criminal prosecution for this use of deadly force,under a duty-to-retreat law Bertram
A)is presumed innocent or may be exempt from prosecution.
B)must prove that he first told Clu to "Get out!" or to "Retreat!"
C)must prove that he first tried to retreat or that his life was in danger.
D)must prove that Clu did not try to retreat or acted without regard for his own life.
To view all questions and flashcards with answers, click on the resource link above. Page 36
Chapter 35: Management Perspective: E-Mailed
Credit-Card Receipts
Available Study Resources on Quizplus for this Chatper
5 Verified Questions
5 Flashcards
Source URL: https://quizplus.com/quiz/73910
Sample Questions
Q1) Gabe asks his cousin Francie to sacrifice her career,move her home and family,and provide services,at a lower salary than usual,to Gabe's new Farm-to-Fork Produce Company.Gabe tells Francie that she will jointly own and run the firm.Francie agrees.Later,after the firm gains the benefit of Francie's services,Gabe forces Francie out.According to the dissent in the Braddock case,these facts sufficiently allege the elements of a claim for A)damages based on quasi contract.
B)recovery in fraud.
C)relief from a unilateral mistake.
D)none of the choices.
Q2) Dani asks her cousin Cedric to sacrifice his career,move his home and family,and provide services,at a lower salary than usual,to Dani's new Commercial Shipping Company.Dani tells Cedric that he will jointly own and run the firm.Cedric agrees.Later,after the firm gains the benefit of Cedric's services,Dani forces Cedric out.According to the majority in the Braddock case,these facts sufficiently allege the elements of a claim for A)damages based on quasi contract.
B)recovery in fraud.
C)relief from a unilateral mistake.
D)none of the choices.
Page 37
To view all questions and flashcards with answers, click on the resource link above.
Chapter 34: Case Study With Dissenting Opinion: Prestridge
V Bank of Jena
Available Study Resources on Quizplus for this Chatper
3 Verified Questions
3 Flashcards
Source URL: https://quizplus.com/quiz/73914
Sample Questions
Q1) More than thirty days after Rhett receives his account statement from Silverado Bank,he notifies the bank that Thalia forged Rhett's name on some of the checks that the bank has cashed.The majority in Prestridge v.Bank of Jena would most likely hold Silverado liable for A)all checks.
B)checks that were cashed less than thirty days after the statement. C)checks that were cashed more than thirty days after the statement. D)no checks.
Q2) In the facts of the previous question,suppose that Thalia had had access to Rhett's checks through his carelessness.The majority in the Prestridge case would then most likely hold Silverado liable for A)all checks.
B)checks that were cashed less than thirty days after the statement. C)checks that were cashed more than thirty days after the statement. D)no checks.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 36: Adapting the Law to the Online Environment:
The Thorny Issue of Taxing Internet Sales
Available Study Resources on Quizplus for this Chatper
7 Verified Questions
7 Flashcards
Source URL: https://quizplus.com/quiz/73912
Sample Questions
Q1) Tour Vista,an online travel company,buys blocks of rooms from Skyview Towers,a hotel in River City,at a wholesale rate.Tour Vista reslls the rooms to consumers at a retail rate.In recent efforts to collect taxes from e-commerce,some cities claim that hotel occupancy taxes should be assessed and remitted directly to the cities based on
A)the dire financial straits of the cities during the latest recession.
B)the retail rates of the rooms.
C)the states of residency of the consumers who reserve the rooms.
D)the wholesale rates of the rooms.
Q2) New York enacts a statute that requires a label on a video game to warn parents when "the range of options available to a player include dismembering or sexually assaulting the image of a human being." On appeal from a challenge by gamemakers,the state asks a federal court to enforce the statute.Based on the decisions of other federal courts in cases involving similar statutes,the court in this case is most likely to
A)refuse to extend restrictions on sex-based content to violence in video games.
B)expand the label's warning to include other forms of violence.
C)impose market-share liability on makers of violent video games.
D)replace the voluntary rating system currently in use.
To view all questions and flashcards with answers, click on the resource link above. Page 39
The Debt That Never Goes Awayits Discharged in Bankruptcy but Still on the Debtors Credit Report
Available Study Resources on Quizplus for this Chatper
5 Verified Questions
5 Flashcards
Source URL: https://quizplus.com/quiz/73916
Sample Questions
Q1) In the facts of the first question,according to the reasoning of the dissent in the Central case,the prevailing party would be
A)both Vance and WSU.
B)neither Vance nor WSU.
C)Vance.
D)WSU.
Q2) Unicameral Production,Inc. ,files for bankruptcy.Vance,Unicameral's bankruptcy trustee,wants to recover a transfer that Unicameral made to Wisconsin State University (WSU)less than ninety days earlier.WSU asserts its sovereign immunity.Under the majority's holding in Central Virginia Community College v.Katz,the party most likely to prevail in this situation is
A)both Vance and WSU.
B)neither Vance nor WSU.
C)Vance.
D)WSU.
To view all questions and flashcards with answers, click on the resource link above. Page 40
Chapter 38: Adapting the Law to the Online Environment:
Available Study Resources on Quizplus for this Chatper
9 Verified Questions
9 Flashcards
Source URL: https://quizplus.com/quiz/73920
Sample Questions
Q1) Sayer is an employee of Thorny Foliage Eradication,Inc.Sayer tweets messages about Thorny Foliage to employees and outside interested parties,including investors and others.According to the Securities and Exchange Commission,Sayer's messages are subject to
A)federal securities laws.
B)international communications regulations.
C)state blog and tweet rules.
D)no law.
Q2) Rewind Investments Inc.owns 90 percent of Swift Blades Inc.(SBI).Rewind's majority shareholders are also its directors and the directors of SBI.SBI's business is the design and assembly of wind-driven turbines.SBI is offered the opportunity to buy Typhoon Turbines,Inc. ,a competitor,but SBI's board turns it down.Within six months,Rewind buys Typhoon.Based on the court's reasoning in Notz v.Everett Smith Group,Ltd. ,,a minority SBI shareholder could bring
A)a claim against Typhoon's former directors.
B)a direct claim against SBI's majority shareholders.
C)a shareholder's derivative suit against Rewind.
D)no claim.
To view all questions and flashcards with answers, click on the resource link above. Page 41
Chapter 39: Case Study With Dissenting Opinion: Kovarik V
Kovarik
Available Study Resources on Quizplus for this Chatper
3 Verified Questions
3 Flashcards
Source URL: https://quizplus.com/quiz/73922
Sample Questions
Q1) Glen and Heidi are married.Later,Heidi's parents invest their savings in certificates of deposit (CDs)in the names of Heidi and her sister Irene.Their parents keep the CDs.When Glen files for divorce from Heidi,he lists the CDs as marital assets.Before the court divides the assets,Irene cashes in the CDs at her parents' instruction without sharing the proceeds with Heidi.Under the reasoning of the majority in Kovarik v.Kovarik,the court will most likely rule that,with respect to Glen and Heidi's marital estate,the CDs are
A)not included because Heidi's parents did not intend to give them to her.
B)not included because Irene cashed them without sharing the proceeds.
C)included because Glen and Heidi were married when the CDs were acquired.
D)included because Heidi's parents gave up control when the CDs were placed in the names of Heidi and Irene.
Q2) In the facts in the previous question,if the CDs are seen as the property of Heidi and Irene,the sisters are most likely
A)joint tenants.
B)tenants at sufferance.
C)tenants by the entirety.
D)tenants in common.
To view all questions and flashcards with answers, click on the resource link above.
Page 42
Chapter 40: Unit Case Study With Dissenting Opinion: Dole
Food Co V Patrickson
Available Study Resources on Quizplus for this Chatper
3 Verified Questions
3 Flashcards
Source URL: https://quizplus.com/quiz/73924
Sample Questions
Q1) Amigos,Ltd. ,and Bueno,S.A. ,are Chilean firms.Amigos owns a majority of the shares of Bueno.The government of Chile owns a few shares of Amigos.Under the decision in Dole Food Co.v.Patrickson,parties who are immune from suit in U.S.courts under the Foreign Sovereign Immunities Act,as instrumentalities of foreign states,would include A)Amigos and Bueno.
B)neither Amigos nor Bueno.
C)only Amigos.
D)only Bueno.
Q2) In the facts of the previous questions,a U.S.court might pierce Amigos and Bueno's corporate status to impose liability on their owners,including the government of Chile,if the firms failed to follow or be involved in
A)business activities.
B)corporate formalities.
C)ethical practices.
D)foreign affairs
To view all questions and flashcards with answers, click on the resource link above.
Page 43