Legal Environment of Business Exam Practice Tests
Course Introduction
The Legal Environment of Business introduces students to the fundamental principles of law and how they apply to business operations. The course explores the American legal system, sources of law, and the roles of courts in resolving disputes. Key topics include contracts, torts, agency, employment law, business organizations, and government regulation. Emphasis is placed on understanding how legal concepts affect decision-making, risk management, and the ethical responsibilities of businesses. Through case studies and real-world examples, students develop the ability to identify legal issues and apply legal reasoning to effectively navigate the modern business environment.
Recommended Textbook
Essentials of Business Law and the Legal Environment 11th Edition by Richard A. Mann
Available Study Resources on Quizplus
50 Chapters
4286 Verified Questions
4286 Flashcards
Source URL: https://quizplus.com/study-set/2545 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/50597
Sample Questions
Q1) The main categories of the law are (a)substantive and procedural, (b)public and private,and (c)civil and criminal.
A)True
B)False
Answer: True
Q2) Which of the following is correct regarding the decisions of state trial courts?
A)They are generally not reported.
B)They are reported in regional reports.
C)They are reported in state court reports.
D)They are binding upon lower courts based upon the principle of stare decisis.
Answer: A
Q3) Courts of equity:
A)have remained separate court systems in nearly every jurisdiction in the United States. B)ordinarily do not involve juries.
C)in all cases recognized new rights that were not enforceable at common law.
D)All of the above.
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
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/50598
Sample Questions
Q1) A major criticism of utilitarianism as an ethical theory is that:
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
Q2) What is unjust to a social egalitarian will also be unjust to a libertarian.
A)True
B)False
Answer: False
Q3) From a Kantian perspective,for an action to be moral,it must be possible for it to be made into a universal law and it must be respectful of the autonomy and rationality of all human beings.
A)True
B)False
Answer: True
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/50599
Sample Questions
Q1) Attorneys for Tigre Corp.and Swindal Co.are entering a structured settlement process whereby they conduct limited discovery and then present evidence to a panel of managers from each company as well as to a neutral retired judge.They are involved in an alternative dispute resolution technique known as a mini-trial.
A)True
B)False
Answer: True
Q2) Stare decisis has no application in a dual court system.
A)True
B)False Answer: False
Q3) The function of appellate courts is to examine the record of a case on appeal and to determine whether the trial court committed prejudicial error.
A)True
B)False Answer: True
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/50600
Sample Questions
Q1) Only the __________ Amendment to the Constitution,which abolishes slavery or involuntary servitude,applies to the actions of private individuals.
A)First
B)Ninth
C)Thirteenth
D)Fourteenth
Q2) Federalism is the division of governing power between the federal government and the states.
A)True
B)False
Q3) Under the Due Process Clause,entitlements conferred by the government,such as social security payments,are property,which cannot be revoked without procedural due process.
A)True
B)False
Q4) The federal government's power to tax has no limitations.
A)True
B)False
Q5) Briefly discuss the Contract Clause of the Constitution.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Administrative Law
Available Study Resources on Quizplus for this Chatper
77 Verified Questions
77 Flashcards
Source URL: https://quizplus.com/quiz/50601
Sample Questions
Q1) What is an administrative agency? What powers does an administrative agency possess?
Q2) Under the Administrative Procedure Act
A)True
B)False
Q3) 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
Q4) A statute may preclude judicial review of an agency action.
A)True
B)False
Q5) Parties that seek to challenge agency action must:
A)have standing.
B)have exhausted their administrative remedies.
C)be a party injured by the agency action.
D)All of the above.
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/50602
Sample Questions
Q1) The __________ Amendment prohibits excessive bail and prohibits cruel and unusual punishment.
A)Fourth
B)Fifth
C)Sixth
D)Eighth
Q2) The Fifth Amendment protects all individuals against unreasonable searches and seizures.
A)True
B)False
Q3) The crime of larceny includes in its definition:
A)the nontrespassory taking and control of personal property.
B)the trespassory taking and carrying away of personal property.
C)assault.
D)the taking and control of personal or real property.
Q4) What defenses can be raised by a criminal defendant who is found to have committed a criminal act?
Q5) Some states still recognize common law crimes.
A)True
B)False
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/50603
Sample Questions
Q1) If Smith works for Jones under an informal arrangement by which there is no contract stating dates for beginning or ending the relationship,Brown Co.could induce Smith to quit her job with Jones and come to work for Brown Co.without liability to Jones.
A)True
B)False
Q2) The cause of action of infliction of emotional distress protects a person from abusive language by a supervisor.
A)True
B)False
Q3) Bodily contact that is harmful or offensive can give rise to the tort of: A)assault.
B)battery.
C)defamation.
D)appropriation.
Q4) A privilege may result in immunity from tort liability. A)True
B)False
Q5) Compare and contrast the intent necessary to commit a tort to the intent necessary to commit a crime.
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
165 Verified Questions
165 Flashcards
Source URL: https://quizplus.com/quiz/50604
Sample Questions
Q1) For an action of negligence,six elements must be proved.
A)True
B)False
Q2) By law,all apartment buildings in the state where Mary lives must have smoke alarms in the ceilings.Mary suffers smoke inhalation because the smoke alarm in her apartment building was not yet installed.To win a negligence action against the building owner,Mary would have to prove:
A)a duty existed toward her.
B)a breach of that duty.
C)injury and causation.
D)All of the above.
Q3) All intervening events that occur subsequent to the defendant's negligent conduct will relieve the defendant of liability.
A)True
B)False
Q4) The standard of conduct which is the basis for the law of negligence is usually determined by a cost-benefit or risk-benefit analysis.
A)True
B)False
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
74 Verified Questions
74 Flashcards
Source URL: https://quizplus.com/quiz/50605
Sample Questions
Q1) A contract to sell life insurance is covered by Article 2 of the Uniform Commercial Code.
A)True
B)False
Q2) A contract is a binding agreement that the courts will enforce.
A)True
B)False
Q3) The requirement that each party to a contract must intentionally exchange something of value as an inducement to the other party to make a return exchange is known as:
A)mutual assent.
B)consideration.
C)legality of object.
D)contractual capacity.
Q4) According to the UCC,an enforceable agreement involving the transfer of title of goods from a seller to a buyer for a price is called a(n):
A)commercial contract.
B)express contract.
C)formal contract.
D)sale.
Page 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/50606
Sample Questions
Q1) If there is no time specified for the acceptance of an offer,when does the offer terminate?
A)After 48 hours from receipt of the offer.
B)After two weeks from dispatch of the offer.
C)After 30 days from receipt of the offer.
D)After a reasonable period of time, which depends on the circumstances.
Q2) If Megan intends to offer and believes she is offering for sale to Alexis her RL1500 space heater and Alexis reasonably believes Megan is offering her RL1900 heater and accepts on that belief,a contract has not been formed because there was no agreement as to the subject matter.
A)True
B)False
Q3) An offer can only be communicated by words; conduct cannot constitute an offer. A)True
B)False
Q4) Discuss silence as acceptance of an offer.
Q5) a. What are the three essentials of an offer?
b. How does one distinguish between an offer and an invitation seeking offers?
Q6) Discuss how parties show mutual assent and what standard is used to determine agreement.
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
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/50607
Sample Questions
Q1) Identify two situations in which silence or nondisclosure constitutes a misrepresentation.
Q2) A contract was made for 125 bales of cotton to arrive on a ship named "Peerless" from Bombay.Unbeknownst to either party to the contract,there were two ships named "Peerless," both of which were sailing from Bombay.One sailed in October and the other in December.The buyer had in mind the ship sailing in October,but the seller had in mind the ship sailing in December.Each party held his belief in good faith.When the goods failed to arrive on time,the buyer sued for breach of contract.The court found:
A)the seller was in breach and must pay damages.
B)the seller was guilty of fraud in the inducement for failing to disclose to the buyer which ship would contain the goods.
C)no contract existed due to mistake in meaning of terms.
D)two of the above, (a) and (b).
Q3) Which of the following is NOT an element of fraud?
A)Material misrepresentation.
B)Competent parties.
C)Knowledge of falsity.
D)Justifiable reliance.
Q4) What elements need to be proved to establish each type of fraud?
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/50608
Sample Questions
Q1) A modification of a preexisting contract occurs when the parties agree to change one or more of its terms.
A)True
B)False
Q2) Nathan entered a contract while he was seventeen.If,upon reaching the age of majority,he has not avoided the contract and promises to perform those contractual obligations,new consideration is required for the contract to be enforceable.
A)True
B)False
Q3) What transactions are enforceable even though they are not supported by consideration?
Q4) Ken,a research chemist,has been promised a fellowship with a stipend of $10,000 to do research on synthetic fuel oil.Under the terms of the fellowship,Ken is free to use the money as he sees fit.Ken decides to build his own laboratory,so he will not have to rent one.He hires a carpenter who begins working on shelving and cabinets in the laboratory.Then Ken receives a telegram saying the fellowship has been canceled.No reason is given for the cancellation.If Ken sues,will he be able to collect the money from the foundation which promised the fellowship? Explain your answer using legal terminology.
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
67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/50609
Sample Questions
Q1) Delbert won a $500 bet with Samuel on the outcome of the World Series,but Samuel refuses to pay.Discuss what recourse Delbert has.If Delbert had instead bought a ticket from a state-operated lottery,would his recourse be different?
Q2) Which of the following would generally be considered to be a revenue-raising licensing law?
A)A statute requiring that doctors be licensed.
B)A statute requiring that salespeople be licensed, but not establishing any educational or training requirements.
C)A statute requiring public school teachers to be licensed.
D)A statute that requires insurance agents to pass a test before selling insurance in a state.
Q3) Which of the following would always be considered to be contrary to public policy?
A)A contract which contains a covenant not to compete.
B)A contract offered on a take-it-or-leave-it basis.
C)An agreement to pay someone to make false statements about a competitor's product.
D)An agreement which contains an exculpatory clause.
Q4) 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/50610
Sample Questions
Q1) Percy,age 17,purchased a used mobile home from a mobile home dealer for $20,000.This price,however,is twice the reasonable value of that mobile home.Several months later,Percy wants to disaffirm the contract.If the mobile home is considered a necessary item:
A)Percy can disaffirm the contract based on the wrongful act of the dealer.
B)Percy can disaffirm the contract because the minor can live in an apartment rather than a mobile home.
C)Percy is only liable for the reasonable value of the mobile home.
D)Percy must keep the mobile home and abide by the original terms of the contract.
Q2) An automobile will never be considered be a necessary item for a minor.
A)True
B)False
Q3) Intoxicated persons are liable in quasi-contract for necessaries purchased during their incapacity.
A)True
B)False
Q4) Ratification of a contract,once effected,is final and cannot be withdrawn.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Contracts in Writing
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/50611
Sample Questions
Q1) The statute of frauds applies to executory contracts only.
A)True
B)False
Q2) A collateral promise is an undertaking to be primarily liable for the principal debtor's debt.
A)True
B)False
Q3) In determining the meaning of a contract,which of the following will have first priority?
A)Course of performance.
B)Course of dealing.
C)Usage of trade.
D)Express terms.
Q4) Most types of contracts are valid without being written.
A)True
B)False
Q5) The main purpose doctrine is a court-developed exception to the suretyship provision.
A)True
B)False
Page 17
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: Third Parties to Contracts
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/50612
Sample Questions
Q1) Sean has a right against Tanner and assigns it for value to Megan.Later,Sean gives Tanner a release.Megan:
A)will be unaffected by Sean's action.
B)may recover damages from Sean for breach of an implied warranty.
C)may recover damages from Tanner for breach of an implied warranty.
D)has lost her right and has no remedy.
Q2) Give an example of an assignment of rights and explain the relationship of the parties.
Q3) When contract terms prohibiting the assignment of rights exist,most courts will:
A)strictly construe them.
B)interpret a general term prohibiting assignments as a mere promise not to assign.
C)award the obligor a right to damages for the breach of the terms forbidding the assignment.
D)All of the above.
Q4) Contract rights are generally assignable.
A)True
B)False
Q5) List the implied warranties imposed by law on an assignor who has received value for the assignment.
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/50613
Sample Questions
Q1) Which of the following is true with respect to substantial performance?
A)It has particular importance in the construction industry.
B)Substantial performance does not defeat the purpose of the contract.
C)When one party to a contract has substantially performed, the other party cannot recover damages for the imperfect performance.
D)All of the above.
E)Two of the above, (a) and (b) are correct.
Q2) Belinda has a household insurance policy,which requires that she notify the insurance company within 30 days of any loss before she is eligible to receive payment for her loss.The notification requirement is a condition precedent to the insurance company's obligation to perform,even though the notification must occur subsequent to the loss.
A)True
B)False
Q3) The Code and the Restatement have no provisions for discharge of contractual duties in cases involving commercial impracticability.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 18: Contract Remedies
Available Study Resources on Quizplus for this Chatper
94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/50614
Sample Questions
Q1) In the case of Hadley v.Baxendale,the plaintiff was seeking damages for:
A)restitution.
B)lost profits.
C)failure to convey land.
D)failure to specifically perform a contract.
Q2) Marcella pays $12,000 down on a houseboat which Hugh had agreed to sell to her for $64,000.Marcella then repudiates the contract.Hugh sells the houseboat to Lloyd in good faith for $60,000.Marcella may recover from Hugh:
A)nothing, since she was the one who repudiated the contract.
B)her $12,000 down payment since Hugh's contract with Lloyd created a novation and discharged any duty Marcella had to pay anything toward the houseboat.
C)$8,000 in restitution, which represents Marcella's $12,000 down payment less the $4,000 in damages Hugh sustained because of Marcella's breach.
D)only a nominal amount.
Q3) When will a court enforce a liquidated damage clause? When will a court refuse to enforce one?
Q4) Explain consequential damages.Give an example.
Q5) Explain three limitations on monetary damages.
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Introduction to Sales and Leases
Available Study Resources on Quizplus for this Chatper
61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/50615
Sample Questions
Q1) "Goods" for purposes of the Code are essentially defined as tangible,movable,personal property.
A)True
B)False
Q2) Under the CISG,contracts for the sale of goods do not have to be evidenced by a writing to be enforceable,unless one of the parties has its place of business in a country that provides otherwise.
A)True
B)False
Q3) The most important element in determining whether a sales contract has been made is the:
A)language of the contract.
B)fact that the terms of the offer and acceptance are exactly alike.
C)number of open terms.
D)intent of the parties to make a contract.
Q4) The common law "mirror image" rule has been modified by the Code.
A)True
B)False
Q5) Discuss the concept of freedom of contract under Articles 2 and 2A of the UCC.
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Performance
Available Study Resources on Quizplus for this Chatper
59 Verified Questions
59 Flashcards
Source URL: https://quizplus.com/quiz/50616
Sample Questions
Q1) A buyer is obliged to accept conforming goods and to pay for them according to the contract terms.
A)True
B)False
Q2) J & J Co.offers a "subscription" for baby toys to be delivered every two months from the birth of a child.Payment must be made within two weeks of delivery.The Markham family accepted the J & J plan when their son,Timmy,was born.When Timmy was four months old,one J & J toy arrived smashed to pieces.Markham:
A)can treat the whole contract as breached and refuse to pay for past installments as well as future installments.
B)can reject the installment and cancel the contract immediately.
C)can reject the installment and refuse to pay for it if J & J cannot cure it.
D)cannot reject the installment since it is part of a series.
Q3) Under the __________,a buyer may reject goods for even the slightest defect.
A)revocation of acceptance rule
B)perfect tender rule
C)rules for inspection
D)excuses for nonperformance
To view all questions and flashcards with answers, click on the resource link above. Page 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/50617
Sample Questions
Q1) A sale exists after the buyer takes:
A)the title to the goods.
B)the risk of loss on the goods.
C)an insurable interest in the goods.
D)a special property interest in the goods.
Q2) Security interests,defined by the Code as interests in personal property or fixtures that ensure payment or performance of obligations,are governed by Article 6 of the UCC.
A)True
B)False
Q3) The bulk sales portion (Article 6)of the Code applies only to transfers in the ordinary course of business.
A)True
B)False
Q4) The UCC and the common law are essentially the same in regard to their treatment of risk of loss or damage to identified goods.
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
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/50618
Sample Questions
Q1) The use of a sample or model is another means of creating an implied warranty.
A)True
B)False
Q2) Under the CISG,the seller must deliver goods,unless otherwise agreed,that are fit for the purposes for which goods of the same description would ordinarily be used.
A)True
B)False
Q3) Oral warranties made before the execution of a written agreement containing an express disclaimer are subject to the parol evidence rule.
A)True
B)False
Q4) Identify at least four means states have used to limit the punitive damages a plaintiff can collect in a product liability lawsuit.
Q5) The Code requires that the affirmations,promises,or descriptions the seller makes be relied on by the buyer to be an express warranty.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: Sales Remedies
Available Study Resources on Quizplus for this Chatper
107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/50619
Sample Questions
Q1) A seller's remedies upon the buyer's default:
A)may be goods oriented, money oriented, or obligation oriented.
B)are subject to the doctrine of election of remedies.
C)are, under the UCC, the same as a buyer's remedies for the seller's breach.
D)All of the above.
Q2) Article 2A authorizes liquidated damages payable by either party for default or any other act or omission.
A)True
B)False
Q3) Under the CISG,if the contract is avoided and the seller has resold the goods in a reasonable manner and within a reasonable time after avoidance,the seller may recover:
A)the difference between the contract price and the resale price.
B)incidental damages only.
C)consequential damages.
D)Both (a) and (c).
Q4) A buyer's incidental damages include reasonable expenses or commissions in effecting cover.
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/50620
Sample Questions
Q1) 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
Q2) All but which one of the following is required of a negotiable instrument?
A)It must be payable only out of a particular fund.
B)It must contain an unconditional promise or order to pay a fixed amount in money.
C)It must be payable on demand or at a definite future date.
D)It must be in writing and signed by the maker or drawer.
Q3) What are the requirements of negotiability under the Code? List and briefly summarize them.
Q4) An incomplete instrument is not negotiable.However,when it is completed,it may become negotiable.
A)True
B)False
Q5) Who are the parties to checks and notes?
To view all questions and flashcards with answers, click on the resource link above.
Page 26
Chapter 25: Transfer and Holder in Due Course
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/50621
Sample Questions
Q1) "Pay to the order of Jose Dejesus" is a special indorsement.
A)True
B)False
Q2) A forged or otherwise unauthorized signature necessary to negotiation breaks the chain of title to the instrument.
A)True
B)False
Q3) David makes and delivers a promissory note for $500 to the order of Kerry,who indorses the note and delivers it to Stan in payment of an outstanding debt Kerry owes him.Stan has given value as far as the Code requirements for a holder in due course.
A)True
B)False
Q4) If a person paying an instrument subject to the impostor rule fails to exercise ordinary care,the issuer may recover from the payor to the extent the payor's negligence contributed to the loss.
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: Liability of Parties
Available Study Resources on Quizplus for this Chatper
73 Verified Questions
73 Flashcards
Source URL: https://quizplus.com/quiz/50622
Sample Questions
Q1) The signature of the maker of a note may be typewritten or signed by means of a signature stamp so long as it represents a present intention to authenticate the instrument.
A)True
B)False
Q2) An unauthorized signature may bind a principal who allowed the signature to be made through his own negligence.
A)True
B)False
Q3) Morgan is the maker of a promissory note payable to Hillary on August 29.If Hillary fails to make proper presentment of the note to Morgan on August 29,Morgan's liability on the note is not affected.
A)True
B)False
Q4) The time for dishonor of a check can vary greatly depending on the number of banks involved in the collection process.
A)True
B)False
Q5) Discuss the effect of an unauthorized signature on an instrument.
To view all questions and flashcards with answers, click on the resource link above. Page 28
Chapter 27: Bank Deposits, Collections, and Funds Transfers
Available Study Resources on Quizplus for this Chatper
91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/50623
Sample Questions
Q1) What is electronic funds transfer? Why do banks like it? What provisions are in the law to protect the customer who uses electronic funds transfer?
Q2) ABC Bank sent Joanne,a depositor,her January statement on January 31.Within what length of time after this date will Joanne have to notify ABC bank of any instruments containing alterations or unauthorized signatures included in her January statement?
A)10 days.
B)A reasonable period of time, not to exceed 30 days.
C)60 days.
D)Three years.
Q3) Theresa has just started working for Citizens Bank as a teller.A man comes into the bank with a $100 check that is 8 months old.She goes to the manager to ask whether she should pay it.If you were the manager,what would you advise her?
Q4) Which of the following is true about UCC Article 4A?
A)It is designed to overlap coverage of the Electronic Funds Transfer Act.
B)It covers both credit and debit transactions.
C)It covers wholesale funds transfers.
D)It does not allow parties to vary their rights and obligations by agreement.
To view all questions and flashcards with answers, click on the resource link above. Page 29
Chapter 28: Relationship of Principal and Agent
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/50624
Sample Questions
Q1) The appointment of an agent by a minor or an incompetent not under guardianship and any resulting contracts are voidable.
A)True
B)False
Q2) The concept of conflict of interest as it relates to the law of agency includes which of the following?
A)An agent may take a position that conflicts with the principal only if the principal, with full knowledge of all the facts, consents.
B)An agent may not represent her principal in a transaction in which the agent has a personal interest.
C)An agent may not act on behalf of adverse parties to a transaction without both principals' approval of the dual agency.
D)All of the above.
Q3) If Elizabeth,agent for Wade,finds out one of Wade's customers has become insolvent,she has the duty to communicate this information to Wade.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 29: Relationship With Third Parties
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/50625
Sample Questions
Q1) If an agent tortiously injures a third party,the third party may not hold the principal personally liable.
A)True
B)False
Q2) Which of the following is true with regard to contractual relations between the principal and a third party?
A)There is no liability on the part of the principal if the agent acts with implied authority.
B)An undisclosed principal and the third party are contractually bound if the agent acts within her actual authority, unless the contract specifies otherwise.
C)A principal cannot be bound if the agent acts without any authority.
D)An unidentified principal is bound only if the agent acts within the scope of actual authority.
Q3) Under the rule of the Third Restatement,if a principal becomes incapacitated,the agency relationship terminates and all authority ceases.
A)True
B)False
Q4) Compare and contrast ratification and adoption of unauthorized contracts.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 30: 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/50626
Sample Questions
Q1) General partnerships are used frequently in finance,insurance,accounting,real estate,law,and other services.
A)True
B)False
Q2) A partner has all but which of the following duties?
A)A duty of faithful service to the best of his ability.
B)A duty to act in accordance with the partnership agreement.
C)A duty not to engage in any other business while a partner.
D)A duty not to acquire for himself a partnership opportunity without the consent of all the partners.
Q3) Alice and Brad enter into a partnership,which becomes insolvent,as does Brad.Alice is fully liable for the debts of the partnership.
A)True
B)False
Q4) Compare "partnership property" with a "partner's interest." Consider such factors as the definition,the possession,the assignability,how attachment occurs,and the inheritability of each.
Q5) What are the ways the RUPA recognizes a partnership as an entity?
Page 32
To view all questions and flashcards with answers, click on the resource link above.
Chapter 31: Operation and Dissolution of General Partnerships
Available Study Resources on Quizplus for this Chatper
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/50627
Sample Questions
Q1) The UPA provides that partners are __________ liable on all debts and contract obligations of the partnership.
A)jointly
B)strictly
C)jointly and severally
D)partially
Q2) Under the RUPA,dissolution occurs automatically upon the happening of an event specified in the partnership agreement as resulting in dissolution.The partners may not agree to continue the business.
A)True
B)False
Q3) __________ is available to a third person to whom a representation is made and who justifiably relies on the representation.
A)Delectus personae
B)Respondeat superior
C)Culpable negligence
D)Partnership by estoppel
Q4) Define dissolution under the UPA and discuss its three causes.
Page 33
To view all questions and flashcards with answers, click on the resource link above.
Chapter 32: Limited Partnerships and Limited Liability Companies
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/50628
Sample Questions
Q1) Describe an LLC and the rights of its members.
Q2) An operating agreement is adopted by members of a limited liability company.
A)True
B)False
Q3) If the written partnership agreement makes no provision for sharing profits and losses in a limited partnership,they are shared equally.
A)True
B)False
Q4) The RULPA requires that the limited partnership certificate list the capital contribution of each general and limited partner.
A)True
B)False
Q5) A limited partnership agreement may not provide that limited partners have the right to vote on matters as a class separate from the general partners.
A)True
B)False
Q6) Discuss the duties of general partners to limited partners.
Q7) What are the liabilities of a limited partner in a limited partnership?
To view all questions and flashcards with answers, click on the resource link above. Page 34
Chapter 33: Nature and Formation of Corporations
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/50629
Sample Questions
Q1) Which of the following is correct regarding a foreign corporation?
A)A foreign corporation is incorporated in a foreign country.
B)Failure to obtain a certificate of authority to transact business in the state impairs the validity of a contract entered into by the corporation.
C)A foreign corporation transacting business within a particular state without having first qualified cannot use the state court to maintain a lawsuit until the corporation obtains a certificate of authority.
D)All of the above are correct.
Q2) What is a Subchapter S Corporation,and what are its requirements?
Q3) A corporation is considered to be a person within the meaning of the Fifth Amendment protection against self-incrimination.
A)True
B)False
Q4) Zeron Corporation is incorporated in the state of West Virginia.It now wants to open a retail outlet in Kentucky.Zeron must obtain a certificate qualifying it to do business in the state of Kentucky.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 35
Chapter 34: Financial Structure of Corporations
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/50630
Sample Questions
Q1) Even if it has been lawfully and properly declared,a stock dividend may be revoked unless it has been actually distributed.
A)True
B)False
Q2) Clayton Tile has a secured bond on specific property of Ceramic Creations,Inc.Clayton's claim against Ceramic is enforceable only against that specific property.
A)True
B)False
Q3) "Capital surplus" would be credited with the excess received over par value for shares issued by the corporation.
A)True
B)False
Q4) The most customary type of dividend is a:
A)stock dividend.
B)cash dividend.
C)property dividend.
D)liquidating dividend.
Q5) Discuss the use of and types of stock options.
Q6) What are the two major issues regarding payment for shares?
Page 36
To view all questions and flashcards with answers, click on the resource link above.
Chapter 35: Management Structure of Corporations
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/50631
Sample Questions
Q1) To protect a shareholder's interest in the corporation,the law provides shareholders with certain enforcement rights.
A)True
B)False
Q2) Regarding the election of directors:
A)under the Revised Act, directors are elected by a majority of the votes.
B)cumulative voting is a right of shareholders in all states.
C)cumulative voting permits minority shareholders to obtain majority representation on the board.
D)under straight voting, shareholders owning a majority of the voting shares can always elect the entire board of directors.
Q3) A proxy is effective until the shareholder revokes it.
A)True
B)False
Q4) As the shareholders' elected representatives,the board of directors are delegated the power to direct the business of the corporation.
A)True
B)False
Q5) Discuss the business judgment rule.
To view all questions and flashcards with answers, click on the resource link above. Page 37
Chapter 36: Fundamental Changes of Corporations
Available Study Resources on Quizplus for this Chatper
115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/50632
Sample Questions
Q1) After dissolution,the corporation must cease carrying on its business except as is necessary to wind up.
A)True
B)False
Q2) A purchaser of all the assets normally does not assume the liabilities of that company.
A)True
B)False
Q3) Dissolution of a corporation does not terminate its existence,and does not require that it liquidate its assets.
A)True
B)False
Q4) The statutory provisions governing dissolution and liquidation usually prescribe procedures to safeguard the interests of the corporation's creditors.These procedures include:
A)the required mailing of notice to known creditors.
B)a general publication of notice.
C)the preservation of claims against the corporation.
D)All of the above.
Q5) Discuss the similarity between a management buyout and a cash-out combination.
To view all questions and flashcards with answers, click on the resource link above. Page 38
Chapter 37: Secured Transactions and Suretyship
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/50633
Sample Questions
Q1) Article 9 of the UCC is flexible,simple,and it allows a variety of forms of secured financing.
A)True
B)False
Q2) A field warehouse,under Article 9 of the UCC,is:
A)one kind of a pledge.
B)a common arrangement for financing inventory.
C)an agreement that allows the debtor access to the pledged goods and simultaneously gives the secured party control over the pledged property.
D)All of the above.
E)None of the above.
Q3) Tony is a surety for Monica on a debt she owes to Francis.If Monica properly tenders full payment and Francis refuses it,both Monica and Tony are discharged from the debt.
A)True
B)False
Q4) Explain how the 1998 Revisions to Article 9 facilitate electronic filing of a financing statement.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 38: Bankruptcy
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/50634
Sample Questions
Q1) What is the trustee in bankruptcy and what is the role of the trustee in bankruptcy proceedings? What powers and duties does the trustee have and what sorts of transactions the trustee can attack?
Q2) Chapter 7 applies to all debtors,with the exception of railroads,insurance companies,banks,savings and loan associations,homestead associations,and credit unions.
A)True
B)False
Q3) Any person eligible to be a debtor under a given bankruptcy proceeding may file a voluntary petition and must be insolvent to do so.
A)True
B)False
Q4) Individual debtors must receive credit counseling before filing a bankruptcy petition under most circumstances.
A)True
B)False
Q5) Most student loans cannot be discharged under Chapter 13. A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 40
Chapter 39: Securities Regulation
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/50635
Sample Questions
Q1) A registration statement must be signed by the issuer,its CEO,CFO,CAO,and majority of its board of directors.
A)True
B)False
Q2) Rule 505,as promulgated by the SEC,provides a nonexclusive safe harbor for securing the intrastate exemption.
A)True
B)False
Q3) The 1934 Act rules governing proxy solicitations would require a proxy statement describing the material facts relating to items to be voted upon.
A)True
B)False
Q4) The Securities and Exchange Commission (SEC)is an independent,quasi-judicial agency consisting of five commissioners.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 41
Chapter 40: Intellectual Property
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/50636
Sample Questions
Q1) The NET Act was enacted to:
A)require publication of certain utility and plant patent applications 18 months after filing even if the patent has not yet been granted.
B)protect the owner of a trademark or service mark from any person who, with a bad faith intent to profit from the mark, uses a domain name which is a protected trademark or word.
C)extend U.S. copyright protection to works required to be protected under the World Intellectual Property Organization Copyright Treaty and the WIPO Performances and Phonograms Treaty.
D)to close a loophole in the Copyright Act which permitted infringers to pirate copyrighted works willfully and knowingly as long as they did not do so for profit.
Q2) Kartov Corporation is in the business of developing pharmaceutical products.It uses a number of highly technical secret processes in its business.Martin worked for the company for five years and then left after an argument with one of the vice presidents of the company.He then went to work for one of Kartov's competitors,which has begun to market similar products that seem to have been produced using the secret processes developed and used by Kartov.What,if any,recourse does Kartov have under the circumstances?
To view all questions and flashcards with answers, click on the resource link above.
42
Chapter 41: Employment Law
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/50637
Sample Questions
Q1) To recover on a claim under workers' compensation,the worker must prove the employer was negligent.
A)True
B)False
Q2) Challenges to affirmative action plans adopted by private or government employers are tested under the Equal Protection Clause of the Constitution.
A)True
B)False
Q3) Which of the following would violate the Taft-Hartley Act?
A)Union officials boycotting meetings with Tel Ko Computer Corp. representatives.
B)Union officials meeting on Tel Ko Computer Corporation's property.
C)Union members striking to gain more fringe benefits.
D)Union members wearing membership badges.
E)Both (a) and (d) above are correct.
Q4) The Pregnancy Discrimination Act protects the job reinstatement rights of women returning from maternity leave.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 43
Chapter 42: Antitrust
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/50638
Sample Questions
Q1) In the case of Eastman Kodak Co.v.Image Technical Services,Inc.the U.S.Supreme Court identified the exact conduct,beyond mere possession of monopoly power,which violates Section 2 of the Sherman Act.
A)True
B)False
Q2) The Federal Trade Commission was created by the Sherman Act and its powers are limited to preventing unfair methods of competition as set forth in the Sherman Act.
A)True
B)False
Q3) What are the major functions of the Federal Trade Commission (FTC)and what power does the FTC have?
Q4) In an attempt to limit the power of large purchasers,Congress amended Section 2 of the Clayton Act in 1936 by adopting the:
A)Sherman Act.
B)Federal Trade Commission Act.
C)Robinson-Patman Act.
D)All of the above.
To view all questions and flashcards with answers, click on the resource link above.
44
Chapter 43: Accountants Legal Liability
Available Study Resources on Quizplus for this Chatper
67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/50639
Sample Questions
Q1) An accountant may not disclose the contents of his working papers under any circumstances.
A)True
B)False
Q2) What is the basis of an accountant's potential criminal liability in rendering professional services?
Q3) Pam certified a statement prepared by John,her employee,without checking John's work.He was never known to be anything but diligent and his integrity had never been questioned.The audit contained gross misstatements.Pam defends a suit against her claiming "due diligence." She will:
A)succeed, since she had no reason to believe her employee would lie.
B)succeed, because a reasonable person would have inquired further.
C)fail, because due diligence requires reasonable investigation.
D)fail, because she is automatically liable for her employee's act.
Q4) Martin agrees to perform an audit within 30 days,knowing that time is of the essence.After the 30 days,Martin has only performed 60% of the audit.Martin has materially breached his contract.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 45
Chapter 44: Consumer Protection
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/50640
Sample Questions
Q1) The Home Equity Loan Consumer Protection Act:
A)defines a principal dwelling to include second or vacation homes.
B)amends the Truth-in-Lending Act to require that lenders provide a disclosure statement to potential borrowers at least five days before they receive an application for the loan.
C)only covers loans with adjustable rate mortgages.
D)forbids the creditor from accelerating the outstanding balance of the loan if the consumer fails to make payments on time.
Q2) The United States Postal Service plays an important role in consumer protection.
A)True
B)False
Q3) The Equal Credit Opportunity Act would not prohibit which of the following? First Bank refuses to extend credit to:
A)females.
B)men over 70 years of age.
C)people with incomes below $10,000.
D)people from Italy.
Q4) Discuss ARMs and their regulation.
Q5) Discuss the role of the state attorneys general in consumer protection.
To view all questions and flashcards with answers, click on the resource link above. Page 46
Chapter 45: Environmental Law
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/50641
Sample Questions
Q1) What are the two major issues that the NEPA (National Environmental Policy Act)addresses?
Q2) The FIFRA registration is legal only if:
A)it is completed within 60 days of the pesticide's distribution.
B)the pesticide complies with FIFRA labeling requirements.
C)the pesticide will not cause any adverse environmental effects when used in accordance with commonly recognized practice.
D)All of the above.
Q3) Because private causes of action have proved to be inadequate to recompense and prevent environmental damage,the federal,state,and local governments have enacted statutes designed to protect the environment.
A)True
B)False
Q4) Phoenix,Arizona might be classified as a PSD area with respect to some pollutants,but not with respect to others.
A)True
B)False
Q5) List and define the common law remedies for environmental damage.
Q6) What is the purpose of the Montreal Protocol?
Page 47
To view all questions and flashcards with answers, click on the resource link above.
Chapter 46: International Business Law
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/50642
Sample Questions
Q1) An "anti-dumping" statute:
A)is applied to both foreign companies and domestic companies which charge a higher price for products sold in the U.S. than the price charged abroad.
B)has been declared invalid because of the inherent discrimination against foreign corporations.
C)is administered by the FTC.
D)makes illegal the sale of exported goods from one country to another country at less than normal value.
Q2) Define and discuss the doctrine of "sovereign immunity." Discuss how the Foreign Sovereign Immunities Act of 1976 has codified this area of law.Give examples of how the Act works.
Q3) A specialized U.N.agency or a U.N.organ may seek an advisory opinion from the International Court of Justice,but an individual or a sovereign state may not.
A)True
B)False
Q4) The World Bank established the MIGA to eliminate the practice of dumping. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 48
Chapter 47: 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/50643
Sample Questions
Q1) The regulation of insurance has been left to the states.
A)True
B)False
Q2) Personal property so firmly attached to real property that an interest in it arises under real property law is known as a(n):
A)fixture.
B)tangible property.
C)intangible property.
D)None of the above.
Q3) Sales of tangible personal property involve the transfer of title.
A)True
B)False
Q4) A gift causa mortis is a gift:
A)made by a donor after death in her will.
B)that is conditional.
C)made in the contemplation of the donor's imminent death.
D)Both (b) and (c) are correct.
E)Both (a) and (b) are correct.
Q5) Why are delivery and acceptance both necessary to have a valid gift?
To view all questions and flashcards with answers, click on the resource link above. Page 49
Chapter 48: Interests in Real Property
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/50644
Sample Questions
Q1) A leasehold from week to week or month to month is called a(n):
A)fee simple absolute.
B)estate for years.
C)periodic tenancy.
D)tenancy at sufferance.
Q2) Constructive eviction would result in a discharge of any obligation to pay rent if:
A)proper notice is given to the landlord.
B)the tenant abandons possession within a reasonable time.
C)the tenant fixes the problem.
D)the tenant serves the landlord with a court order.
Q3) A tenancy for years must have a duration of at least two years,and notice to terminate must be given at least one month before ending the lease.
A)True
B)False
Q4) For a person to acquire an easement,he must have the permission of the owner to use the land.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 49: Transfer and Control of Real Property
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/50645
Sample Questions
Q1) Which of the following are the most usual covenants to convey title of realty?
A)Covenant of title.
B)Covenant against encumbrances.
C)Quiet enjoyment.
D)All of the above.
E)Both (a) and (b), but not (c).
Q2) A deed of trust is almost identical to a warranty deed.
A)True
B)False
Q3) The usual method of enforcing a restrictive covenant is by specific performance. A)True
B)False
Q4) An uncommon but possible way to obtain title to property is by adverse possession. A)True
B)False
Q5) In most states,it is not necessary to record a deed for title to pass to the grantee.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 51
Chapter 50: Trusts and Wills
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/50646
Sample Questions
Q1) The duties of a trustee are:
A)to carry out the purposes of the trust.
B)to act with prudence and care in the administration of the trust.
C)to exercise a high degree of loyalty toward the beneficiary.
D)All of the above.
Q2) A trust will fail for lack of:
A)consideration.
B)a trustee.
C)definite and specific property forming the trust corpus.
D)All of the above.
Q3) The characteristics of a spendthrift trust include which of the following?
A)Spendthrift provisions are not valid in most states.
B)Trust creditors can never seize income from a spendthrift trust.
C)A settlor may provide, in a spendthrift trust, that the beneficiary cannot, by assignment or otherwise, impair her rights to receive principal or income.
D)All of the above.
Q4) A witness to a will who is "interested" will be disinherited or disqualified.
A)True
B)False
Q5) Under what conditions do courts impose a constructive trust?
Page 52
To view all questions and flashcards with answers, click on the resource link above.