Corporate Law Test
Preparation
Course Introduction
Corporate Law offers a comprehensive overview of the legal principles and frameworks governing the formation, management, and dissolution of corporations. The course explores key topics such as corporate personality, shareholder rights, the duties and responsibilities of directors and officers, financing, mergers and acquisitions, and corporate governance. Through case studies, statutes, and contemporary issues, students gain an understanding of how corporate law shapes business practices, safeguards stakeholders interests, and addresses ethical challenges within the corporate environment.
Recommended Textbook
Fundamentals of Business Law Summarized Cases 9th Edition by Roger LeRoy Miller
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41 Chapters
2290 Verified Questions
2290 Flashcards
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Page 2
Chapter 1: The Legal and Constitutional Environment of Business
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Sample Questions
Q1) 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
Q2) Beachside City enacts an ordinance that bans the distribution of all printed materials on city streets.Carl opposes the city's latest "revenue-enhancing" measure and wants to protest by distributing handbills.In his suit against the city,a court would likely hold the printed-materials ban to be
A)an unconstitutional restriction of speech.
B)constitutional under the First Amendment.
C)justified by the need to protect individual rights.
D)necessary to protect national interests.
Answer: A
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3
Chapter 2: Traditional and Online Dispute Resolution
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Sample Questions
Q1) Inferior Company sells products that are poorly made.Jack,who has never bought an Inferior product,files a suit against the company,alleging that its products are defective.The firm's best ground for dismissal of the suit is that Jack does not have A)certiorari.
B)jurisdiction.
C)standing.
D)sufficient minimum contacts.
Answer: C
Q2) A business firm may have to comply with the laws of any jurisdiction in which it actively targets customers.
A)True
B)False
Answer: True
Q3) The courts can decide whether the other branches of government have acted within the scope of their constitutional authority.
A)True
B)False
Answer: True
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4
Chapter 3: Ethics and Business Decision Making
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Sample Questions
Q1) Under the principle of rights theory,one person's set of values is as "right" as another's.
A)True
B)False
Answer: False
Q2) John is sales manager for Kleen 'N Brite Products,Inc.Compared to John's personal activities,his business activities most likely involve
A)more complex ethical issues.
B)no ethical issues.
C)simpler ethical issues.
D)the same ethical issues.
Answer: A
Q3) Halley,a lawyer on the staff of International Group,applies the utilitarian theory of ethics in business contexts.Utilitarianism focuses on A)moral values.
B)religious beliefs.
C)the consequences of an action.
D)the nature of an action.
Answer: C
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Chapter 4: Torts and Cyber Torts
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Sample Questions
Q1) Harm must be foreseeable to be considered the proximate cause of an injury in negligence.
A)True
B)False
Q2) To commit an intentional tort,one person must intend to harm a certain other person.
A)True
B)False
Q3) Self-defense is a defense to negligence.
A)True
B)False
Q4) In newspaper ads,Lo-Price Autos falsely accuses My-T Value Vehicles,a competitor,of selling stolen cars.My-T's sales decrease.Lo-Price has most likely committed
A)slander of quality.
B)slander of title.
C)wrongful interference with a business relationship.
D)none of the choices.
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Chapter 5: Intellectual Property and Internet Law
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Sample Questions
Q1) Canada and the United States are signatories of the Berne Convention.Doug,a citizen of Canada,publishes a book first in Canada and then in the United States.Doug's copyright must be recognized by
A)all of the signatories of the Berne Convention.
B)Canada and the United States only.
C)Canada only.
D)none of the signatories of the Berne Convention.
Q2) Beans Coffee & Cocoa Company makes and sells a chocolate-flavored coffee drink under the name "CoCoCafe." Darkroast Java,Inc. ,later markets a similar tasting drink under the name "KoKoKafe." This is most likely
A)copyright infringement.
B)patent infringement.
C)trademark infringement.
D)a theft of trade secrets.
Q3) A list of customers cannot be a trade secret.
A)True
B)False
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Chapter 6: Criminal Law and Cyber Crime
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Sample Questions
Q1) Herb,a computer programmer for Inventory Control Corporation,is arrested in his employer's parking lot on suspicion of larceny.Herb must be informed of his right to A)a trial by jury.
B)punishment.
C)question witnesses.
D)remain silent.
Q2) The crime of theft requires the taking of property,without regard to whether the perpetrator knew it belonged to another.
A)True
B)False
Q3) Most crimes must be prosecuted within a certain number of years. A)True
B)False
Q4) Only blue-collar crimes are prosecuted under RICO.
A)True
B)False
Q5) Money laundering includes making "dirty" money "clean" of legitimate businesses. A)True
B)False
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Chapter 7: Nature and Classification
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Sample Questions
Q1) Vernon claims that his contract with Ulani is voidable.If their contract is avoided
A)both parties are released from it.
B)both parties must fully perform their obligations under it.
C)a wholly different contract is agreed to.
D)a wholly different contract is imposed "as if" the parties had agreed.
Q2) When Jeff's car breaks down,he asks Kwik Tow,Inc. ,to tow it from its location to Loyal Repair Shop.There is no discussion of a price,and Jeff and Kwik do not sign any documents.After the tow,Kwik sends Jeff a bill.With respect to Jeff's obligation to pay the bill,this is
A)an express contract.
B)an implied contract.
C)a quasi contract.
D)no contract.
Q3) Parties can form a contract without putting the terms in writing.
A)True
B)False
Q4) An express contract must be in writing.
A)True
B)False
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Chapter 8: Agreement in Traditional and E-Contracts
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Sample Questions
Q1) An offeror's subjective intent determines the effectiveness of an offer.
A)True
B)False
Q2) Lively Toys Store and Movin' Products Company (MPC)enter into an e-contract under which MPC agrees to ship a case of electronic,remote-controlled bugs to Lively Toys,which agrees to pay on delivery.The Uniform Electronics Transactions Act (UETA)
A)denies the enforcement of such contracts.
B)does not apply to such contracts.
C)preempts all other laws with respect to such contracts.
D)supports the enforcement of such contracts.
Q3) An agreement is evidenced by a single event: an acceptance.
A)True
B)False
Q4) A record does not require a signature to have legal effect under the UETA.
A)True
B)False
Q5) An offer must be communicated to the offeree to be effective.
A)True
B)False
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Chapter 9: Consideration,capacity,and Legality
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Q1) A release does not require consideration to be legally binding.
A)True
B)False
Q2) On Tom's eighteenth birthday,he decides that he no longer wants to keep a car he bought from U-Pick Autos,when he was seventeen.His right to disaffirm the deal will depend on
A)the car's condition when Tom bought it.
B)the car's current condition.
C)whether Tom acts within a reasonable period of time.
D)whether U-Pick has the right to disaffirm.
Q3) A bargained-for exchange is one of the elements of consideration.
A)True
B)False
Q4) A severable contract is unenforceable as a violation of public policy.
A)True
B)False
Q5) If there is a statute that prohibits a certain action,a contract to do it is unenforceable.
A)True
B)False
Page 11
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Chapter 10: Defenses to Contract Enforceability
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Sample Questions
Q1) Refer to Fact Pattern 10-2.The parties' belief about the adjacency of the property is
A)a bilateral mistake.
B)a fraudulent misrepresentation.
C)a unilateral mistake.
D)unconscionable.
Q2) Refer to Fact Pattern 10-2.Because of the parties' belief about the adjacency of the property,their contract is
A)unavoidable.
B)unconscionable.
C)unenforceable.
D)voidable.
Q3) Reliance on a misrepresentation is justified if the misrepresentation is an obviously extravagant statement.
A)True
B)False
Q4) Misrepresentation of a material fact cannot occur through conduct alone.
A)True
B)False
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Chapter 11: Third Party Rights and Discharge
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Sample Questions
Q1) Concurrent conditions occur only when the parties to a contract are required to perform their respective duties simultaneously.
A)True
B)False
Q2) Super Toolmakers,Inc. ,contracts to sell its business to True Hardware Corporation.Before either party has performed,rescission of this contract requires A)a mutual agreement to rescind.
B)consideration.
C)performance by all of the parties.
D)an accord and satisfaction.
Q3) Roy and Sheila are parties to a contract.They subsequently agree that Tony should take Roy's place and assume all of his rights and duties under the contract.This is A)a novation.
B)an accord and satisfaction.
C)an assignment.
D)a modification.
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13
Chapter 12: Breach and Remedies
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Sample Questions
Q1) Expenses that are caused directly by a breach of contract-such as those incurred to obtain performance from another source-are incidental damages.
A)True
B)False
Q2) In a contract for a sale of goods,the usual measure of compensatory damages is the difference between the contract price and the market price.
A)True
B)False
Q3) Drew contracts to sell a residential duplex to Evan.The contract provides that if Drew does not close the deal by September 15,he must pay Evan one-half of the contract price.This provision is not enforceable because it is
A)a liquidated damages clause.
B)a mitigation clause.
C)a nominal damages clause.
D)a penalty clause.
Q4) A breach of contract may entitle the innocent party to rescind the contract.
A)True
B)False
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Chapter 13: The Formation of Sales and Lease Contracts
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Sample Questions
Q1) 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.
Q2) Under the UCC,the validity of a contract depends on its price term.
A)True
B)False
Q3) Aromatic Tea Company and Savory Stores,Inc. ,enter into a contract for a sale of tea.The contract includes the term "F.O.B.Upriver City," which is Savory's location.This means that the contract is
A)a bailment contract.
B)a destination contract.
C)a shipment contract.
D)a transportation contract.
Q4) A bailee is a buyer or lessee. A)True B)False
Page 15
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Chapter 14: Performance Breach of Sales Lease Contracts
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Sample Questions
Q1) On a lessee's insolvency,the lessor can stop delivery of the goods.
A)True
B)False
Q2) International Gem Corporation agrees to sell Jewel Outlets,Inc.(JOI),fifty new diamonds,but the contract does not specify a place of delivery.JOI is expected to pick up the goods.The place of delivery is
A)International's place of business.
B)JOI's place of business.
C)the Annual Gems and Jewels Convention.
D)the U.S.Postal Service office nearest to JOI's place of business.
Q3) A buyer who rightfully rejects nonconforming goods can resell the goods and keep the proceeds.
A)True
B)False
Q4) An unpaid seller can bring an action to recover the purchase price,on the buyer's breach of a contract,only if the goods are first disposed of.
A)True
B)False
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Page 16
Chapter 15: Warranties and Product Liability
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Sample Questions
Q1) Strict liability applies to the suppliers of component parts.
A)True
B)False
Q2) Sari buys a new sport utility vehicle (SUV)from Terrific Cars & Trucks,Inc.The most important factor in determining whether an express warranty is created is whether
A)Sari expresses to Terrific what she wants warranted.
B)Sari's desire for the SUV becomes part of her motivation to deal.
C)Terrific expresses to Sari what it expects of its customers.
D)Terrific promise becomes part of the basis of the bargain.
Q3) Any product may be made entirely safe for all consumption.
A)True
B)False
Q4) Big Screen Video Corporation sells high-definition television sets.Under most circumstances,Big Screen Video will be presumed to have warranted that its title to the TVs is
A)the same as each brand's name.
B)none of the choices-a warranty of title is not presumed.
C)good and valid.
D)the best that money can buy.
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Chapter 16: Negotiability,transferability,and Liability
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Sample Questions
Q1) Refer to Fact Pattern 16-2.Nat properly presents the note to Jake for payment,but Jake dishonors it.With timely notice to the proper parties,Nat may collect payment on the note from
A)Kim,Lou,or Mona.
B)Kim or Lou only.
C)Mona only.
D)no one.
Q2) The dishonor of an instrument relieves secondary parties of liability. A)True
B)False
Q3) A time draft is payable at a definite future time. A)True
B)False
Q4) Biff signs a note "payable to the order of County Credit Union." Unless Biff has a valid defense against payment,Biff's liability on this note is A)lateral. B)primary.
C)secondary.
D)tertiary.
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Chapter 17: Checks and Banking in the Digital Age
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Q1) Refer to Fact Pattern 17-3.When Mike receives his National statement,he demands that the bank investigate the matter and recredit his account.The bank
A)has no duty to investigate.
B)must investigate and,if the dispute is not resolved within ten days,recredit Mike's account (at least until the dispute is resolved).
C)must investigate and immediately recredit Mike's account (at least until the dispute is resolved).
D)must investigate but need not recredit Mike's account.
Q2) A bank that fails to detect an alteration to its customer's check is liable to the customer for the loss.
A)True
B)False
Q3) Unauthorized access to an electronic fund transfer system is a federal felony. A)True
B)False
Q4) A bank that has certified a check is under no obligation to accept it.
A)True
B)False
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Chapter 18: Security Interests in Personal Property
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Sample Questions
Q1) An improper filing renders a secured party unperfected.
A)True
B)False
Q2) A financing statement is effective only if it is filed electronically.
A)True
B)False
Q3) A secured party can release the collateral described in a filed financing statement only if the debtor has paid the debt.
A)True
B)False
Q4) Refer to Fact Pattern 18-1.Holly,a professional driver,buys an Excel from Fine to drive in a Grand Prix race.Holly's Excel is
A)a consumer good.
B)an accession.
C)equipment.
D)inventory.
Q5) To create an enforceable security interest,the secured party must give value. A)True
B)False
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Chapter 19: Creditors Rights and Bankruptcy
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Q1) Thirty-one days before filing a petition in bankruptcy,Frida transfers property and makes payments that favor one creditor over another.These are
A)affirmation agreements.
B)preferences.
C)secured interests.
D)unsecured debts.
Q2) Checkerboard Pizza,Inc.(CPI),files a petition in bankruptcy for relief through a reorganization.CPI's reorganization plan must contain
A)a plan to turn over its future income to the trustee.
B)a certificate proving attendance at a credit-counseling briefing.
C)a provision of adequate means for the plan's execution.
D a statement of preference for one creditor over another.
Q3) Speedy Delivery Company buys a white van from Tom's Terrific Vehicles,on credit under a guaranty signed by Ulysses,Speedy's president,making him personally liable if Speedy does not pay.Ulysses is
A)a surety.
B)a lienor.
C)a guarantor.
D)a creditor.
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Page 21
Chapter 20: Mortgages Foreclosures After the Recession
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Q1) If a homeowner defaults,the lender has the right to foreclose on the mortgaged property.
A)True
B)False
Q2) Seymour borrows $350,000 from Reliable Bank to buy a home.Seymour stops making payments on the loan ten months later.After the bank repossesses the property securing the loan but before it is sold,Seymour wants to buy it.This is
A)a deficiency judgment.
B)a reverse mortgage.
C)a violation of the law.
D)the right of redemption.
Q3) The annual percentage rate is the actual cost of a loan on a yearly basis.
A)True
B)False
Q4) A deficiency judgment requires a borrower to pay the amount of debt remaining after the collateral is sold.
A)True
B)False
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22
Chapter 21: Agency Relationships
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Q1) Sela agrees to act on Thom's behalf,subject to Thom's control,and Thom trusts Sela to so act.They set out the terms in a written document,which they both sign.This is
A)an agency by agreement.
B)an agency by estoppel.
C)an agency by ratification.
D)not the creation of an agency relationship.
Q2) A power of attorney is a written document.
A)True
B)False
Q3) A principal is liable for harm caused to a third party by an agent who commits a tort while acting in the scope of his or her employment.
A)True
B)False
Q4) An agency can terminate once its purpose is achieved.
A)True
B)False
Q5) An agent can take advantage of an agency relationship to make a "secret" profit.
A)True
B)False
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Chapter 21: Management Perspective:
Independent-Contractor Negligence
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Q1) According to the court in the Media General Operations,Inc.v.National Labor Relations Board case,in determining whether a discharge for an employee's "outburst" in violation of a workplace rule violates the NLRA,significant factors include
A)the ability of the employee to obtain employment elsewhere. B)the nature of an employee's outburst.
C)the sensitivity of those who witness the outburst.
D)the specific phrasing of the rule.
Q2) Gass Propane Company hires Hick,an independent contractor,to make deliveries.During a delivery,Iggy is killed in an accident caused by Hick's negligence.Iggy's widow Jade files a suit against Gass,asserting that the employer is liable.Gass argues that it had no control over the manner in which Hick did his work.The court is most likely to hold that Gass is
A)liable because Gass employed Hick.
B)liable because Gass should have investigated Hick's qualifications.
C)not liable because Gass did not control Hick's work.
D)not liable because the delivery vehicle was probably faulty.
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Chapter 22: Employment, immigration, and Labor Law
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Q1) The Americans with Disabilities Act of 1990 defines disabled persons as persons impaired mentally or physically "in any way."
A)True
B)False
Q2) All employers in the United States are subject to federal employment discrimination laws.
A)True B)False
Q3) An employer is not liable for the sexual harassment of an employee by the employee's supervisor.
A)True
B)False
Q4) Compensatory damages are only available for victims of intentional employment discrimination.
A)True B)False
Q5) Only state law governs drug tests of private-sector employees.
A)True
B)False
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Chapter 23: Sole Proprietorships, partnerships, Limited Liability Co
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Q1) Refer to Fact Pattern 23-1.Desi and Fred are
A)not partners,because Fred does not have an ownership interest or management rights in eSites.
B)not partners,because the lease includes a "base rental."
C)not partners,because the rent includes only 10 percent of the profits.
D)partners in a partnership for two years.
Q2) Location! Realty LLC is a limited liability company (LLC).Like other LLCs,for federal jurisdictional purposes,Location! Realty is most likely a citizen of A)all states.
B)every state in which its members are citizens.
C)no state.
D)only the state in which it was formed.
Q3) For federal income tax purposes,one-member limited liability companies are automatically taxed as sole proprietorships.
A)True
B)False
Q4) A sole proprietorship lacks continuity on the death of the proprietor.
A)True
B)False
Page 26
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Chapter 24: Corporate Formation, financing, and Termination
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Q1) A court will not pierce the corporate veil of a corporation that is formed merely to evade an existing legal obligation.
A)True
B)False
Q2) Normally,corporate shareholders are personally liable for the obligations of the corporation.
A)True
B)False
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.
Q4) A short-form merger is the legal combination of two or more corporations online.
A)True
B)False
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Chapter 25: Corporate Directors, officers, Shareholders
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Q1) For action to be taken during a shareholders' meeting,a quorum must be present.
A)True
B)False
Q2) Zero Sum Games Corporation has forty-three shareholders.The minimum number that must be present at a meeting for a shareholders' vote is
A)all of the shareholders.
B)a quorum.
C)a proxy.
D)three of the shareholders.
Q3) Guy is Hot Java Company's majority shareholder.Guy decides to sell his Hot Java stock.The sale will be an effective transfer of the control of the company.Does Guy owe a duty to Hot Java or its minority shareholders in this situation?
Q4) A board of directors can delegate some functions to corporate officers.
A)True
B)False
Q5) Shares issued for more than their fair market value are known as watered stock.
A)True
B)False
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Chapter 26: Investor Protection, insider Trading, Corp Gov
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Q1) Squeaky Clean Corporation wants to make an offering of securities to the public.This offering is not exempt from registration under the Securities Act of 1933.Before Squeaky sells its securities,it must provide investors with
A)a forward-looking financial forecast.
B)an investment contract.
C)a prospectus.
D)samples of its products.
Q2) A corporation can recapture any profits realized by an insider on any purchase or sale of the firm's stock within any six-month period.
A)True
B)False
Q3) A corporation whose security does not qualify for an exemption can avoid the cost and complexity associated with registration.
A)True
B)False
Q4) Before filing a registration statement,an issuer must offer to sell securities.
A)True
B)False
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Chapter 27: Personal Property and Bailments
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Q1) In most bailments,the bailor must notify the bailee of hidden defects that the bailor knows or could have discovered with reasonable diligence.
A)True
B)False
Q2) Tab stores video equipment with U-Store-It,Inc. ,under a contract that excuses the warehouser from liability for any damage.A fire due to U-Store-It's negligence destroys the equipment.The loss is most likely to be imposed on
A)neither Tab nor U-Store-It.
B)Tab and U-Store-It.
C)Tab only.
D)U-Store-It only.
Q3) Mona asks Ned if she can store her furniture in his garage while she serves a tour of duty with the U.S.Marines Corps.Ned agrees.This is a bailment for A)neither party's benefit.
B)the parties' mutual benefit.
C)the sole benefit of the bailee.
D)the sole benefit of the bailor.
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Chapter 28: Real Property and Landlord-Tenant Law
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Sample Questions
Q1) Luke owns a farm near Marshalltown,Iowa,with stands of trees serving as windbreaks.Luke grows corn on the property.When Luke sells the farm to Nina,if the contract does not specify otherwise,the sale includes
A)neither the crops nor the trees.
B)the crops and the trees.
C)the crops only.
D)the trees only.
Q2) Consumer Shops,Inc. ,signs a lease for a storefront owned by Downtown Building Company.Unlike a purchaser of real property,Consumer Shops
A)acquires only temporary possession of the premises.
B)enjoys exclusive possession of the premises.
C)holds only temporary title to the premises.
D)retains temporary,exclusive possession and title to the premises.
Q3) A tenant is not responsible for the ordinary wear and tear of leased premises.
A)True
B)False
Q4) A warranty deed provides the most protection against defects of title.
A)True
B)False
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Chapter 29: Insurance, wills, and Trusts
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Q1) Shingle & Tile Roofing Contractor,LLC,obtains an insurance policy against liability for injuries or losses sustained by employees during the course of their employment.The policy covers claims not covered by workers' compensation insurance.This is
A)casualty insurance.
B)fidelity or guaranty insurance.
C)key-person life insurance.
D)employer's liability insurance.
Q2) Benny dies without a will,with no surviving spouse or child.Benny's survivors include his granddaughter Callie,his nephew Duncan,and his cousin Earl.In most states,his estate would pass to
A)Callie.
B)Duncan.
C)Earl.
D)the state.
Q3) If a life insurance applicant pays a premium but dies before the physical exam,there is obviously no coverage.
A)True
B)False
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32
Chapter 30: Liability of Accountants Other Professionals
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Q1) An accountant who prepares a financial statement in good faith may avoid liability under Section 18 of the Securities Exchange Act of 1934.
A)True
B)False
Q2) Working papers are the documents through which a court orders an accountant to audit a public company.
A)True
B)False
Q3) An accountant is required to discover every impropriety,defalcation,and fraud in a client's books.
A)True
B)False
Q4) An accountant's liability under the Section 10(b)and Rule 10b-5 of the Securities Exchange Act of 1934 requires privity of contract.
A)True
B)False
Q5) Each state establishes rules that govern the conduct of attorneys
A)True B)False
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Chapter 31: International Law in a Global Economy
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Q1) Chiang Ltd. ,a Chinese firm,imports its goods into the United States and offers those goods for sale at "less than fair value." This is
A)confiscation.
B)defalcation.
C)dumping.
D)expropriation.
Q2) Expropriation occurs when a government seizes private property for an illegal purpose and awards just compensation.
A)True
B)False
Q3) Secure Investments,Inc. ,a U.S.firm,expands into international markets through a joint venture.In this situation,Secure owns
A)all of the operation,and its profits and liabilities.
B)all of the operation,and none of its profits and liabilities.
C)none of the operation,and none of its profits and liabilities.
D)part of the operation,and shares its profits and liabilities.
Q4) Congress cannot impose any restrictions on exports except taxes.
A)True
B)False
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Chapter 32: Adapting the Law to the Online Environment:
The Supreme Court Upholds a Law That Prohibits Pandering
Virtual Child Pornography
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Q1) In Smartphone Games Inc.'s suit against Thermopylae Apps Corporation,Thermopylae seeks to discover electronically stored information (ESI)that should be in Smartphone's possession.If Smartphone did not preserve the ESI despite a clear duty to do so,the company should most likely
A)ask the court to sanction Thermopylae for an unreasonable request.
B)reconstruct the ESI to the best of its ability.
C)refuse to provide the ESI on the ground that it is confidential.
D)settle the dispute.
Q2) Congress intends to enact a law to criminalize the distribution of illegal child pornography on the Internet.Most likely to be held constitutional is a statute that prohibits
A)offers to provide,and requests to obtain,child pornography.
B)the possession of virtual child pornography.
C)the possession of real and virtual child pornography.
D)a substantial amount of protected speech-especially pornography.
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Chapter
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Q1) Nina,a high school teacher,requires Milo and her other students to submit their assignments to a plagiarism service to be compared to the contents of an online database of scholarly works.The assignments are also archived in the database.A federal court is most likely to find that this A)infringes the studnets' copyright interests.
B)qualifies as "fair use" and does not infringe the students' copyrights.
C)falls under the definition of "loss" in the Computer Fraud and Abuse Act.
D)fits within the "damages" clause of the Virginia Computer Crimes Act.
Q2) According to the dissent 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.
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Chapter 35: Management Perspective: E-Mailed
Credit-Card Receipts
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Q1) The truncation (shortening)requirement of the Fair and Accurate Credit Transactions Act of 2003 applies only to receipts that are "electronically printed." Eagle Motorcycle Rents accepts reservations on-site and online.On-site customers are given tangible paper receipts.Online customers are sent an online confirmation.The truncation requirement applies to
A)Eagle's online confirmations only.
B)Eagle's tangible paper receipts only.
C)Eagle's online confirmations and tangible receipts.
D)none of Eagle's confirmations or receipts.
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.
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Chapter 34: Case Study With Dissenting Opinion: Prestridge
V Bank of Jena
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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 situation set out in either of the previous questions,the dissent in the Prestridge case 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.
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Chapter 36: Adapting the Law to the Online Environment: The Thorny Issue of Taxing Internet Sales
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Q1) According to the majority in Casserlie v.Shell Oil Co. ,a commercially reasonable and nondiscriminatory price is
A)evidence of a seller's good faith.
B)parol evidence.
C)unconscionable.
D)a requirement for an inquiry into the seller's motives.
Q2) 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.
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The Debt That Never Goes Awayits Discharged in
but Still on the Debtors Credit Report
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Q1) Dale's debts are discharged in a liquidation bankruptcy.With respect to Dale's prebankruptcy debt,Even Stevens Credit Reporting Agency must automatically report A)nothing.
B)the debt as "discharged," except the nondischargeable debt.
C)the debt as "discharged," including the nondischargeable debt.
D)the debt as "unpaid."
Q2) 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.
Q3) Orly's debts are discharged in a liquidation bankruptcy.Pester & Recover,Inc. ,buys the discharged debt obligations.With respect to these debts,Pester A)can do nothing.
B)can pressure Orly into paying them.
C)must give Orly additional help to rebuild her life after the discharge.
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D)must report the debts to credit reporting agencies as "discharged."
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Chapter 38: Adapting the Law to the Online Environment:
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Q1) Harley is an employee of ICU Identity Systems Corporation.Harley regularly posts messages on a company-sponsored blog,which is read by employees,shareholders,and other stakeholders.According to the Securities and Exchange Commission,Harley's posts are subject to
A)federal securities laws.
B)international communications regulations.
C)state blog and tweet rules.
D)no law.
Q2) Beyond Gamez,Inc. ,a video game retailer based in California,does business in all fifty states exclusively online.According to New York state tax law,an out-of-state online retailer must collect and remit state taxes to New York if the retailer
A)plans to establish a substantial physical presence in New York.
B)targets a potential marketing base in New York.
C)maintains a Web site accessible in New York.
D)pays a party within New York to solicit business for its products.
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Chapter 39: Case Study With Dissenting Opinion: Kovarik V
Kovarik
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Q1) In the facts in the previous question,according to the dissent in the Kavarik case,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.
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42
Chapter 40: Unit Case Study With Dissenting Opinion: Dole
Food Co V Patrickson
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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 question,according to the reasoning of the dissent in Dole Food Co.v.Patrickson,parties who would be potentially subject to suit in U.S.courts would include
A)Amigos and Bueno.
B)neither Amigos nor Bueno.
C)only Amigos.
D)only Bueno.
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