Legal Studies for Managers Practice Exam
Course Introduction
Legal Studies for Managers provides an essential overview of the legal principles and frameworks that impact business operations and decision-making. The course explores key topics including contract law, employment law, intellectual property, corporate governance, dispute resolution, and regulatory compliance. Emphasis is placed on understanding legal risks, ethics in business, and practical strategies for managing legal issues within organizations. By integrating real-world case studies and contemporary legal developments, the course equips future managers with the knowledge and analytical skills necessary to navigate the legal environment and make informed, responsible decisions.
Recommended Textbook
Business Law Text and Cases 13th Edition by ClarksonMiller
Available Study Resources on Quizplus
51 Chapters
2140 Verified Questions
2140 Flashcards
Source URL: https://quizplus.com/study-set/3679
Page 2
Chapter 1: Law and Legal Reasoning
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73238
Sample Questions
Q1) Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own rights.
A)True
B)False
Answer: False
Q2) Operational Processes, Inc., appeals a decision against it, in favor of Precision Manufacturing Corporation, from a lower court to a higher court. Operational Processes is
A) the appellant.
B) the appellee.
C) the defendant.
D) the respondent.
Answer: A
Q3) Clearly, a judge's function is to make the laws.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Courts and Alternative Dispute Resolution
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73239
Sample Questions
Q1) Transnational Corporation and United Shipping, Inc., agree to a contract that includes an arbitration clause. If a dispute arises, a court having ju?ris?dic?tion may
A) monitor any arbitration until it concludes.
B) order an arbitrator to rule in a particular way.
C) order a party to bring the dispute to court.
D) order a party to submit to arbitration.
Answer: D
Q2) A Maryland state court can exercise jurisdiction over National Insurance Corporation, an out-of-state company, if the firm has
A) minimum contacts with the state.
B) maximum contacts with the state.
C) medium contacts with the state.
D) no contacts with the state.
Answer: A
Q3) Mandatory arbitration clauses in employment contracts are generally enforceable.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Court Procedures
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73240
Sample Questions
Q1) In Precise Paving Company's suit against Ride, Park n' Go, Inc., the jury returns a verdict in Precise Paving's favor. The company will most likely ask the court to
A) enter a judgment in accordance with the verdict.
B) enter a judgment n.o.v.
C) enter a judgment on the pleadings.
D) order a new trial.
Answer: A
Q2) At the beginning of a trial, only the defendant's attorney makes an opening statement.
A)True
B)False
Answer: False
Q3) The expenses associated with an appeal can be considerable.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Business and the Constitution
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73241
Sample Questions
Q1) Generally, government inspectors do not have the right to enter business premises without a warrant.
A)True
B)False
Q2) A statute enacted by the Arizona state legislature to regulate trucking affects interstate commerce. In evaluating this statute, the courts will balance the burden that it imposes on interstate commerce against
A) the courts' authority to determine that a law is unconstitutional.
B) the purpose of interstate commerce.
C) the state's interest in regulating the matter.
D) the statute's impact on noneconomic activity.
Q3) Congress enacts a law prohibiting toys made in Indonesia from being sold in the United States. The Washington state legislature enacts a law allowing the sale of Indonesian-made toys. Washington's law will most likely be
A) rendered invalid under the supremacy clause.
B) held to be valid under the equal protection clause.
C) struck down under the taxing and spending clause.
D) upheld under the commerce clause.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Business Ethics
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73242
Sample Questions
Q1) Digital Analytics, Inc., considers the impact of its corporate decisions on various groups and often acts in the interest of a group that has a greater stake in a decision than Digital's shareholders. This approach is most likely to attract potential employees who are
A) investors focused on short-term profits.
B) older professionals.
C) information technology specialists.
D) recent college graduates.
Q2) Brewster, the chief executive officer of Cog & Gear Lubricants Corporation, wants to en?sure that Cog & Gear's activities are legal and ethical. The best course for Brewster and Cog & Gear is to act
A) in good faith.
B) out of ignorance of the law.
C) with regard for the firm's shareholders only.
D) in their own self-interest.
Q3) Some provisions of U.S. bribery laws are directed toward accountants.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Torts
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73243
Sample Questions
Q1) When outrageous conduct consists of speech about a public figure, the First Amendment's guarantee of freedom of speech limits emotional distress claims.
A)True
B)False
Q2) Brady knows that the brakes on his car do not work, but he tells Celia, a potential buyer, that there are no problems with the car. On this assurance, Celia buys the car. On learning the truth, she may sue Brady for A) trade libel.
B) conversion.
C) fraudulent misrepresentation.
D) appropriation.
Q3) Jayne develops a new color of lipstick. To market her lipstick, Jayne uses a computer design program to show a famous model using Jayne's lipstick. Jayne does not ask the model's permission. The model can sue Jayne for A) battery.
B) fraudulent misrepresentation.
C) defamation.
D) appropriation.
To view all questions and flashcards with answers, click on the resource link above.
8
Chapter 7: Strict Liability and Strict Liability
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73244
Sample Questions
Q1) Under a theory of market-share liability, a manufacturer sells "shares" of its potential strict liability and thereby spreads the risk and the cost.
A)True
B)False
Q2) The brakes on a train owned by Rolling Stock Railway Inc. malfunction. The train rolls towards main?te?nance workers on the tracks. Everyone gets out of the way except Sid, who wants to show off. The train hits Sid, who sues Train Components, Inc., the brakes' manufacturer. Train Components can raise the defense of
A) a component-part manufacturer.
B) assumption of risk.
C) privity.
D) product misuse.
Q3) The law imposes strict liability as a matter of public policy based in part on the assumption that manufacturers can better bear the costs associated with injuries caused by their products.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
9
Chapter 8: Intellectual Property Rights
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73245
Sample Questions
Q1) More than two hundred years ago, the Declaration of Independence recognized the importance of protecting creative works.
A)True
B)False
Q2) A service mark distinguishes products used by those in public service.
A)True
B)False
Q3) With a few exceptions, almost anything is patentable.
A)True
B)False
Q4) The theft of trade secrets is a federal crime.
A)True
B)False
Q5) René operates The Spicy Chocolatier Café chain of restaurants. "The Spicy Chocolatier Café" is
A) a certification mark.
B) none of the choices.
C) a service mark.
D) a trade name.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Internet Law, Social Media, and Privacy
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73246
Sample Questions
Q1) OntheWeb Company is an Internet service provider. OntheWeb's customer Phoebe commits copyright infringement. OntheWeb is not liable for Phoebe's activity
A) unless OntheWeb is aware of Phoebe's violation.
B) unless OntheWeb is not aware of Phoebe's violation.
C) unless OntheWeb shuts down Phoebe after learning of the violation.
D) under any circumstances.
Q2) Sly includes in his song "Sneaky" a few seconds of Wily's copyrighted sound recording "Wits" without permission. Some federal courts have found that such digital sampling is
A) a violation of copyright law.
B) a "fair use" exception to the provisions of the act.
C) not a "fair use" exception to the provisions of the act.
D) all of the choices.
Q3) Much of the material on the Internet, including software and database information, is not copyrighted.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Criminal Law and Cyber Crime
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73247
Sample Questions
Q1) An employer's failure to remit state withholding taxes that were collected from employee wages cannot constitute a crime.
A)True
B)False
Q2) Via the Internet, Porcio sabotages the computer system of Quik Chik'n Company, a fast-food restaurant operator, to alter the ingredients in the company's recipes and products so that consumers of the foods become ill. Porcio is a A) cyberterrorist.
B) botnet.
C) virus.
D) worm.
Q3) Farouk uses his computer to break into Global Financial Center's computer. Farouk is a
A) hacker.
B) virus.
C) phisher. D) worm.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Nature and Terminology
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73248
Sample Questions
Q1) In an express contract, the terms are fully and explicitly stated in words.
A)True
B)False
Q2) Otto mistakenly pays property taxes that should have been assessed against Pip. Otto can recover the amount from Pip in quantum meruit
A) even if Pip was not aware of the error.
B) only if Pip tried to conceal the error.
C) only if Pip was aware of the error.
D) only if Pip consents.
Q3) In contract law, intent is determined by the personal or subjective intent, or belief, of a party.
A)True
B)False
Q4) If a contract term is ambiguous, a court can consider extrinsic evidence.
A)True
B)False
Q5) A bilateral contract comes into existence at the moment promises are exchanged. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Agreement in Traditional and E-Contracts
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73249
Sample Questions
Q1) An important rule to keep in mind is that the offeree (the buyer) controls the acceptance and thus the resulting contract.
A)True
B)False
Q2) Farmland County Bank offers to lend money to Gino, the owner of Home Hardware Store, at 15 percent interest. Before Gino accepts, a state statute is enacted prohibiting loans at rates greater than 12 percent. Gino and the bank have
A) a contract for a loan at 15 percent interest.
B) a contract for a loan at 12 percent interest.
C) a contract for a loan at 0 percent interest.
D) no contract for a loan.
Q3) Standard Purchasing Corporation and Topmost Sales, Inc., enter into a part?nering agreement. Under a partnering agreement, parties agree
A) in advance to terms that apply to their future e-transactions.
B) to become partners.
C) to conduct transactions solely in electronic form.
D) to resolve all disputes without involving a third party.
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Consideration
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73250
Sample Questions
Q1) An obligation is enforceable only if it is made in return for actions or events that have already taken place.
A)True
B)False
Q2) While sailboarding, Jolene is injured when Kilroy carelessly crosses her path. Kilroy's insurance company offers Jolene $50,000 to release Kilroy from liability, and she accepts. Later, she learns that her injuries are more serious than she realized. The release is
A) enforceable.
B) unenforceable because Jolene's injuries are unforeseeably difficult.
C) unenforceable because Kilroy has a preexisting duty to pay.
D) unenforceable because the release is an illusory promise.
Q3) Chicken & Egg Farms promises to pay Dex $500 to install a sump pump in its warehouse. Dex com?pletes the installation. The act of installing the pump
A) imposes a moral obligation on Chicken & Egg to pay Dex.
B) imposes no obligation on Chicken & Egg unless it is satisfied with the job.
C) is not sufficient consideration because it is not goods or money.
D) is the consideration that creates Chicken & Egg's obligation to pay Dex.
To view all questions and flashcards with answers, click on the resource link above.
15
Chapter 14: Capacity and Legality
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73251
Sample Questions
Q1) Games Galore Corporation hires Haley, a minor, to create new customized game software for certain clients. Haley signs a contract that requires her to work for Games Galore for eighteen months. Before beginning work, however, Haley tells Games Galore that she will not create new software for Games Galore and that she is going to work for Ideal Worldcraft, Inc., a Games Galore competitor. Is Games Galore's contract with Haley en?forceable? Why or why not?
Q2) In a contract, an exculpatory clause releases a party from liability in the event of monetary or physical injury no matter who is at fault.
A)True
B)False
Q3) Jimenez is an emergency medical technician. Medical personnel such as Jimenez are pro?hibited by state statute from working more than a certain num?ber of consecutive hours. One month, Jimenez works more than the legal limit. Jimenez can recover for
A) the hours up to the statutory maximum but not more.
B) the hours up to the statutory maximum and the extra hours.
C) the hours up to the statutory maximum or the extra hours.
D) nothing.
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Mistakes, Fraud, and Voluntary Consent
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73252
Sample Questions
Q1) Seth offers to buy a house from Tia for less than Tia paid for it, stating that he would "hate to see anything bad happen to Tia or her house." Tia agrees to sell. Regarding this agreement, a court would likely
A) enforce it.
B) not enforce it.
C) reform it to reflect the true market value of the property.
D) order the parties to renegotiate the price.
Q2) Misrepresentation of a material fact cannot occur through conduct alone.
A)True
B)False
Q3) Courts typically set aside contracts because a party did not volunteer pertinent information.
A)True B)False
Q4) Misrepresentation can occur by words or actions, but not by silence. A)True B)False
Q5) To recover for fraud, a plaintiff must be twenty-one or more years of age.
A)True
B)False
17
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: The Writing Requirement and Electronic Records
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73253
Sample Questions
Q1) Grain Farms, LLC, and Harvest-to-Market Truck & Transport Company sign a writ?ten con?tract that does not involve a sale of goods. To be enforceable, the writing must include
A) a correct title, such as "Shipment Contract."
B) all essential and nonessential terms.
C) a statement of the consideration.
D) a description of the parties' businesses.
Q2) Benito orally promises Carolina that he will buy her modified 1968 Dodge Charger. For this promise to be enforceable under the doctrine of promissory estoppel, A) the Charger must be considered a customized good.
B) Carolina must act in reliance on Benito's promise to her detriment.
C) Benito's promise must have been overheard by a third party.
D) there must be written evidence of the deal.
Q3) Unless a party against whom enforcement of an oral contract is sought admits under oath that a contract for sale was made, the contract will not be enforceable.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 18
Chapter 17: Third Party Rights
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73254
Sample Questions
Q1) Julia, a world-famous chef, signs a contract to give lessons in French cooking to Kyle. Julia wants to transfer her duties under the con?tract to Leila, a short-order cook at Mom's Café. The transfer is
A) valid because the performance required is of a nonpersonal nature.
B) valid if Leila is a highly regarded short-order cook.
C) not valid because performance depends on Julia's personal skills.
D) not valid if Kyle does not hold Leila in high regard.
Q2) No contract can prohibit delegation of the duties of the contract.
A)True
B)False
Q3) A life insurance contract involves an intended beneficiary.
A)True
B)False
Q4) Intended beneficiaries can sue to enforce a contract.
A)True
B)False
Q5) Without exception, any duty can be delegated.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Performance and Discharge in Traditional
E-Contracts
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73255
Sample Questions
Q1) Anything less than complete performance is a material breach of contract.
A)True
B)False
Q2) If a contract condition is not satisfied, the obligations of the parties are suspended.
A)True
B)False
Q3) Polly agrees to buy Quinn's Cycle World store business on the express condition that Ridgeline Credit Union approves the financing. This approval is
A) not a condition.
B) a condition precedent.
C) a concurrent condition.
D) a condition subsequent.
Q4) The law allows an innocent party to be discharged when the other party has materially altered a written contract without consent.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 19: Breach of Contract and Remedies
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73256
Sample Questions
Q1) Ileana orally agrees to pay Jaime to plant and harvest a quarter of Ileana's farm acreage for four corn-planting seasons. After Jaime prepares the land and plants the first crop, Ileana says that their deal is off. Jaime can most likely recover
A) in quasi contract.
B) in reformation.
C) in restitution.
D) on the parties' existing contract.
Q2) Rescission is an equitable remedy used when the parties have imperfectly expressed their agreement in writing.
A)True
B)False
Q3) Metro Facilities, Inc., contracts to sell a parking garage to Nouveau Property Company. The contract pro?vides that if Metro does not close the deal by September 15, it must pay Nouveau one-half of the contract price. This provision is not enforceable because it is
A) a liquidated damages clause.
B) a waiver of breach clause.
C) a limitation-of-liability clause.
D) a penalty clause.
To view all questions and flashcards with answers, click on the resource link above.
Page 21
Chapter 20: Formation of Sales and Lease Contracts
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73257
Sample Questions
Q1) Over the course of a year, Suites & Sets Corporation sells household furnishings to customers to whom it extends credit. Suites & Sets orders the furnishings from The Storage Depot's warehouse, from which the items are shipped via common carrier to Suites & Sets customers. Article 2 of the UCC governs A) all of the parties' sales of the goods.
B) Suites & Sets' extension of credit.
C) The Storage Depot's storage of the goods.
D) each company's management of its operations.
Q2) On May 1, Newtown Motors, a used-car dealer, wrote a letter to O'Reilly, which stated, "We have a 1969 Pontiac Firebird in mint condition that we will sell you for $12,500 at any time before June 1. [Signed] Newtown Motors." By May 15, having heard nothing from O'Reilly, Newtown Motors sold the Firebird to another party. On May 25, O'Reilly told Newtown Motors that he accepted the offer and tendered $12,500. When Newtown Motors told O'Reilly it had sold the car to another party, O'Reilly claimed Newtown Motors had breached their contract. Is Newtown Motors in breach? Explain.
Q3) The UCC applies only to the extent that it has been adopted a state.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Title, Risk, and Insurable Interest
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73258
Sample Questions
Q1) With a bill of lading, Interstate Transport Company acknowledges possession of certain goods and contracts to deliver them. Interstate Transport is
A) a bailee.
B) a buyer in the ordinary course of business.
C) a good faith purchaser for value.
D) an F.O.B.
Q2) When a bailee is holding goods that are to be delivered under a contract without being moved, the risk of loss cannot pass to a buyer.
A)True
B)False
Q3) Under a destination contract, the risk of loss passes to the buyer when the goods are duly delivered to the carrier.
A)True
B)False
Q4) Generally, all contracts are assumed to be shipment contracts if nothing to the contrary is stated in the contract.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 22: Performance Breach of Sales Lease Contracts
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73259
Sample Questions
Q1) On May 1, Garage Prefabricators, Inc., agrees to sell four portable garages to Hiway Truck Service Center. Five days later, Hiway refuses delivery and cancels the contract.
Garage Prefabricators is enti?tled to
A) force Hiway to accept the garage.
B) recover any damages from Hiway but not resell the garage.
C) resell the garage and recover any damages from Hiway.
D) resell the garage but not recover any damages from Hiway.
Q2) Refer to Fact Pattern 22-B1. In this letter of credit, the account party is A) Global Mining.
B) Finish & Refining.
C) Economy Bank.
D) Great Britain.
Q3) Acceptance of goods precludes the buyer or lessee from exercising the right of rejection.
A)True
B)False
Q4) If a buyer breaches a contract, the seller can choose to simply cancel the contract.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: Warranties
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73260
Sample
Questions
Q1) Freddi buys bike shoes from Get n' Gear Store, telling the clerk that she wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition, caus?ing Freddi to be injured in a fall. Get n' Gear most likely breached
A) an express warranty.
B) an implied warranty of fitness for a particular purpose.
C) an implied warranty of merchantability.
D) a warranty of title.
Q2) Quade is an expert in twentieth-century art. Rachel visits Quade's gallery, seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. Quade's statement is
A) an express warranty.
B) an implied warranty.
C) an opinion.
D) puffery.
Q3) In sales law, a warranty is an assurance by the seller or lessor about the quality and features of the goods being sold or leased.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 24: International Law in a Global Economy
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73261
Sample Questions
Q1) Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optima's products in Canada. This is A) a distribution agreement.
B) a joint venture.
C) direct exporting.
D) licensing.
Q2) Franchising is a form of licensing.
A)True
B)False
Q3) Omega, Ltd., imports athletic shoes made in Southeast Asia into the United States. To obtain a larger share of the U.S. market, Omega sells the athletic shoes at lower prices here than in its exporting countries. With respect to these imports, the United States may A) do nothing.
B) assess antidumping duties.
C) order the return of the athletic shoes to the exporting countries.
D) confiscate the athletic shoes without just compensation.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 25: The Function Creation of Negotiable Instruments
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73262
Sample Questions
Q1) On a cashier's check, the drawer is also always the payee.
A)True
B)False
Q2) Bart, the owner of Clear Cut Corporation, signs an instrument that includes the phrase "payment for this note will be made from the pro?ceeds of next year's timber sale." This instrument is A) negotiable.
B) nonnegotiable, because payment can be made only out of a particular source. C) nonnegotiable, because it states an express condition to payment.
D) nonnegotiable, because the reasons for the note are not clear on its face.
Q3) On the back of an envelope, Clark writes, "I promise to pay Dobie or bearer $700 on de?mand. [Signed] Clark." What type of instrument is this? Is it nego?tiable? If not, why not?
Q4) An extension clause allows a payee or other holder of a time instrument to demand payment of the entire amount due, with interest, if a certain event occurs.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 27
Chapter 26: Transferability and Holder in Due Course
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73263
Sample Questions
Q1) A holder takes an instrument for value if he or she accepts the instru?ment in payment of a preexisting obligation.
A)True
B)False
Q2) At 1 A.m., on the sidewalk in front of Ace Credit Corporation, which is closed, Ben buys a $500 promissory note for $50 from Curt. When pre?sented with Ben's demand for payment, Diane, the maker of the note, could successfully claim that Ben A) acquired the note with notice that it was overdue.
B) did not acquire the instrument in good faith.
C) did not give value for the instrument.
D) none of the choices.
Q3) Roderick negotiates a bearer instrument to Shauna by A) assignment. B) delivery.
C) indorsement.
D) promising to pay it.
Q4) Usually, indorsements are qualified indorsements.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 28
Chapter 27: Liability, Defenses, and Discharge
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73264
Sample Questions
Q1) Fiona writes a check "pay to the order of Gerri" drawn on Fiona's account at Home State Bank. Gerri presents the check for payment to Home State, which ac?cepts it. Primarily liable on the check is
A) Fiona.
B) Gerri.
C) Home State.
D) none of the choices.
Q2) Lewis makes a note payable to MaxiFinance Corporation. MaxiFinance indorses the back of the note and negotiates it to Notes & Drafts Investments, Inc. Primarily liable on the note is
A) none of the choices.
B) MaxiFinance.
C) Notes & Drafts Investments.
D) Lewis.
Q3) Under the fictitious payee rule, the payee's indorsement is not treated as a forgery, and an innocent holder can hold the maker or drawer liable on the instrument.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 28: Banking in the Digital Age
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73265
Sample Questions
Q1) On Monday, Foster deposits in his account at Guaranty Bank a local check for $500. After 5:00 p.m. on Friday, from these funds, Foster can withdraw no more than
A) $100.
B) $400.
C) $500.
D) $600.
Q2) Shakira issues a check drawn on Thrifty Bank to Ranch & Farm Supply to pay for a rototiller. Later, Shakira discovers a defect in the device and orders Thrifty to stop payment on the check. Shakira does not renew the order, and the bank clears the check eight months later. The bank
A) must recredit Shakira's account.
B) must obtain funds from Ranch & Farm to cover the check.
C) must substitute acceptable goods.
D) need not recredit Shakira's account.
Q3) When receiving a stale check for payment, a bank has no option but to pay the check.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 29: Creditors Rights and Remedies
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73266
Sample Questions
Q1) Only a few types of property-a debtor's wages or bank account, for example-can be garnished.
A)True
B)False
Q2) Dina asks Edie to co-sign a credit application so that she can borrow money and buy a piano from First Chair, a musical instruments and supplies seller. If, after the loan agreement is signed, Dina agrees to a higher rate of interest without telling Edie, then Edie is
A) discharged from the agreement.
B) liable at the higher rate of interest.
C) liable at the lower rate of interest.
D) liable for the principal only.
Q3) Suretyship and guaranty provide debtors with the right to seek payment from a third party if the debtor, or principal, desires to default on his or her obligations.
A)True
B)False
Q4) With a mechanic's lien, real estate becomes security for a debt.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 31
Chapter 30: Secured Transactions
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73267
Sample Questions
Q1) Lenders Bank files a financing statement regarding a transaction with Metro Construction Company. To be valid, the financing statement must contain all of the following except
A) a description of the collateral.
B) a statement of the purpose for the transaction.
C) Lenders' name.
D) Metro's name.
Q2) Sweetwater Café defaults on debts to Town & Country Bank and Uno Loan Company. Town & Country perfected its security interest before Uno. Town & Country takes possession of the collateral in which it has a security interest. On a sale of the collat?eral, the proceeds will be applied first to
A) Sweetwater's previous payments on the debts.
B) Sweetwater's unpaid payments on the debts.
C) the balance of Sweetwater's debt to Town & Country.
D) the balance of Sweetwater's debt to Uno.
Q3) Either the security agreement or the financing statement-but not both-must describe the collateral in which the secured party has a security interest.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 32
Chapter 31: Bankruptcy Law
Available Study Resources on Quizplus for this Chatper
41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/73268
Sample Questions
Q1) Patsy files a petition in bankruptcy. At the moment of filing
A) an automatic stay goes into effect.
B) Patsy's debts are discharged.
C) Patsy's petition is dismissed.
D) Patsy's property is distributed to her creditors.
Q2) An involuntary bankruptcy occurs when the debtor forces his or her creditors into bankruptcy proceedings.
A)True
B)False
Q3) Generally, in a Chapter 11 case, no orders affecting the estate will be entered without the consent of the creditors' committee or after a hearing in which the judge is informed of the committee's position
A)True
B)False
Q4) In a Chapter 13 case, after the debtor has completed all payments, the court grants a discharge of all debts provided for by the repayment plan.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 33
Chapter 32: Agency Formation and Duties
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73269
Sample Questions
Q1) Rondi holds herself out as possessing special accounting skills. As an agent, she must exercise the degree of skill or care expected of
A) a person having those skills.
B) an average, unskilled person.
C) a reasonable person.
D) the principal.
Q2) Agency relationships do not permeate the business world.
A)True
B)False
Q3) Any copyrighted work created by an employee within the scope of his or her employment at the request of the employer is a "work for hire."
A)True
B)False
Q4) An agency relationship created for a purpose that is contrary to public policy may still be enforceable.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 34
Chapter 33: Agency Liability and Termination
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73270
Sample Questions
Q1) Garry drives a truck as an employee for Heavy Hauling, Inc. Garry would most likely be considered acting outside the scope of her employment if he
A) crashed into a car at the airport while off duty.
B) hit a pedestrian in a parking lot during a "working" lunch.
C) ran over an attendant at a gas station while refueling the truck.
D) smashed into a store-front while intoxicated on-duty.
Q2) An agent has the implied authority to do what is reasonably necessary to accomplish the objectives of the agency.
A)True
B)False
Q3) Mikayla, an agent for Nahir, enters into a contract on Nahir's behalf with Onora that must be in writing to be enforceable under the Statute of Frauds. Mikayla's authority to enter into this contract is not in writing. Under the equal dignity rule, this contract is A) enforceable.
B) void.
C) voidable at Nahir's option.
D) voidable at Onora's option.
To view all questions and flashcards with answers, click on the resource link above.
Page 35
Chapter 34: Employment, Immigration, and Labor Law
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73271
Sample Questions
Q1) Employees of private (nongovernment) employers have some privacy protection under the U.S. Constitution.
A)True
B)False
Q2) Certain employers must provide advance notice of a layoff to the affected workers or their representative (if the workers are members of a labor union).
A)True
B)False
Q3) Data & Data Accountants, a private employer, handles bookkeeping for small employers. In most circumstances, with exceptions, federal law clearly pro?hibits Data & Data from subjecting its employees to
A) job-skills tests.
B) monitoring of business communications.
C) drug tests.
D) lie-detector tests.
Q4) Children under fourteen years of age are not allowed to work.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 36
Chapter 35: Employment Discrimination and Diversity
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73272
Sample Questions
Q1) Emylee, an employee of Farm Supplies, Inc., files a sexual-harassment suit against Gowan, her supervisor. Emylee wins. Farm Supplies may also be liable if it had effective harassment policies and complaint procedures, and
A) none of the employees followed them.
B) Emylee followed them.
C) all of the employees were aware of them.
D) Gowan followed them.
Q2) Neville, a member of a protected class, applies for a job with Origami Paper Products Corporation, but fails the company's employment test and is not hired. Neville believes that the test has an unintentionally discriminatory effect. If so, this is
A) reverse discrimination.
B) disparate-impact discrimination.
C) disparate-treatment discrimination.
D) not discrimination.
Q3) Title VII of the Civil Rights Act of 1964 applies to employers with fifteen or less employees.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 36: Sole Proprietorships and Franchises
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73273
Sample Questions
Q1) A franchisee ordinarily does not pay a fee for a franchise license (the privilege of being granted a franchise).
A)True
B)False
Q2) The laws governing franchising are primarily designed to protect fran?chisors from dishonest franchisees.
A)True B)False
Q3) A franchisee is generally legally independent of the franchisor.
A)True B)False
Q4) FreezE Yogurt Corporation provides its prospective franchisees with projected earnings figures based on actual data. FreezE Yogurt must also disclose
A) the number and percentage of franchisees that achieved the figures.
B) hypothetical examples of potential earnings.
C) an answer to the entrepreneur's question, "How much will I make?"
D) none of the choices.
To view all questions and flashcards with answers, click on the resource link above. Page 38
Chapter 37: Partnerships and Limited Liability Partnerships
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73274
Sample Questions
Q1) Refer to Fact Pattern 37-1B. Cornell's assignment of his interest in Equity Lending to Financial Consultants Corporation results in
A) nothing with respect to Cornell or Equity Lending.
B) the automatic termination of Equity Lending's legal existence.
C) Cornell's liability for all of Equity Lending's debts.
D) Cornell's wrongful dissociation and liability for any damages.
Q2) No partner is deemed to be an agent of the other partners and of the partnership.
A)True
B)False
Q3) After a partner dissociates from a continuing partnership, the partnership is no longer bound by the acts of the dissociated partner, even on a theory of apparent authority.
A)True
B)False
Q4) Every act of the partner concerning partnership business and "business of the kind" and every contract signed in the partnership's name bind the partner, but not the firm.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 39
Chapter 38: Other Organizational Forms for Small Businesses
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73275
Sample Questions
Q1) Nichelle, Owen, and Porter organize a nonprofit business-Quality Markets, Inc.-to buy groceries from wholesalers and sell them to consumers who buy a membership in Quality Markets. Because the firm is a nonprofit entity, it is able to sell the groceries for less than a commercial grocer could. What form of business organization is Quality Markets? Is it significant that Quality Markets is incorporated?
Q2) For federal income tax purposes, one-member limited liability companies are not taxed.
A)True
B)False
Q3) Generally, a dissociated member of a limited liability company (LLC) has the right to buy his or her interest in the LLC from the other members.
A)True
B)False
Q4) Limited liability companies are entities apart from their owners.
A)True
B)False
Q5) A limited liability company must be managed by nonmembers.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 40
Chapter 39: Corporate Formation and Financing
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73276
Sample Questions
Q1) A corporation has perpetual existence unless the articles of incorporation state otherwise.
A)True
B)False
Q2) In corporate law, acts of a corporation that are beyond its express or implied powers are de facto or de jure acts.
A)True
B)False
Q3) When a corporation earns profits, it must pass them on to shareholders in the form of dividends.
A)True
B)False
Q4) A foreign corporation normally does not need a certificate of authority to sell goods or services via the Internet or by mail.
A)True B)False
Q5) The corporation is a creature of the common law.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 41
Chapter 40: Corporate Directors, Officers, Shareholders
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73277
Sample Questions
Q1) Normally, a corporate board of directors appoints itself as the first board at the time the corporation is created.
A)True
B)False
Q2) Rafi, a director of Super Service Station Corporation, does not attend a board meet?ing for three years. During that time, Twyla, Super's president, makes improper loans that cost the company $100,000. Rafi is most likely
A) liable for negligence or mismanagement.
B) liable for violation of the business judgment rule.
C) not liable because missing meetings is an honest mistake.
D) not liable because missing meetings is only poor judgment.
Q3) Alain is chairman of the board of Barber & Beauty Supply Corporation. Consuela, a con?sumer, is injured while using a Barber & Beauty product. She sues Barber & Beauty and Alain individu?ally. The corporation may pay Alain's legal fees under
A) under the director's right to participation.
B) under the director's right to compensation.
C) under the director's right to indemnification.
D) only on the firm's own initiative.
To view all questions and flashcards with answers, click on the resource link above. Page 42
Chapter 41: Mergers and Takeovers
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73278
Sample Questions
Q1) Generally, a corporation that purchases the assets of another corporation is automatically responsible for the liabilities of the selling corporation.
A)True
B)False
Q2) Online GPS Corporation owns 95 percent of the shares of Pinpoint App Inc. Through a certain transaction, Online GPS combines with Pinpoint App, but only Online GPS continues to exist. This is
A) a consolidation.
B) a share exchange.
C) a short-form merger.
D) a termination.
Q3) Federal law establishes the specific procedures for a share exchange.
A)True
B)False
Q4) When dissolution takes place by voluntary action, the members of the board of directors are responsible for winding up the affairs of the corporation.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 43
Chapter 42: Securities Law Corporate Governance
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73279
Sample Questions
Q1) Fleet Delivery Corporation is a public company with a market capitalization of less than $75 million. Fleet is poised to issue securities in a transaction that, under the Securities Act of 1933, is "exempt." This enables Fleet to
A) reduce the compliance costs by not requiring an auditor report.
B) buy and sell the securities without liability for "recaptures."
C) make forward-looking financial forecasts without liability.
D) withhold inside information from accredited investors.
Q2) Under the Sarbanes-Oxley Act of 2002, chief financial officers must certify the accuracy of information in corporate financial statements and reports that are filed with the Securities and Exchange Commission.
A)True
B)False
Q3) OnSpec, Inc., and its officers, directors, and share?holders, buy and sell securities. Section 16(b) of the Securities Exchange Act of 1934 covers purchases and sales of securities involving A) corporate insiders. B) misappropriation.
C) short-swing profits. D) tippers and tippees.
To view all questions and flashcards with answers, click on the resource link above.
Page 44
Chapter 43: Administrative Agencies
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73280
Sample Questions
Q1) Persons who favor the creation of a federal biotech agency to regu?late the production of genetically modified agricultural and animal products should con?cen?trate their lobbying ef?forts on A) Congress.
B) federal administrative agencies that oversee such products.
C) the United States Supreme Court.
D) the president of the United States.
Q2) There are no significant differences between a trial and an administrative hearing.
A)True
B)False
Q3) All federal agencies must follow specific procedural requirements when fulfilling their basic functions.
A)True
B)False
Q4) Administrative agencies at various levels of government work together and share the responsibility of enforcing particular regulations.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 45
Chapter 44: Consumer Law
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73281
Sample Questions
Q1) Labels on fresh meats are not required to indicate where the food originated.
A)True
B)False
Q2) Under federal law, the calorie content of the food on a menu must be posted by Organic Mix, LLC, if Organic Mix is
A) a restaurant chain with twenty or more locations.
B) a food distributor with twenty or more customers.
C) a food processor with twenty or more products.
D) a food producer with twenty or more acres.
Q3) Restaurants must post guidelines on the number of calories that an average person requires daily.
A)True
B)False
Q4) Lucy takes out a student loan from Midtown Bank. When she fails to make the scheduled payments for six months, Midtown advises her of further ac?tion that it will take. This violates
A) no federal law.
B) the Fair and Accurate Credit Transactions Act.
C) the Fair Debt Collection Practices Act.
D) the Truth-in-Lending Act.
To view all questions and flashcards with answers, click on the resource link above. Page 46
Chapter 45: Environmental Law and Sustainability
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73282
Sample Questions
Q1) Nashville, Tennessee, passes an ordinance to regulate waste disposal. The disposal of waste may also be regulated by
A) all other levels of government.
B) no other levels of government.
C) the federal government only .
D) the Tennessee state government only.
Q2) The operations of Commercial Concrete, Inc., are major sources of air pollu?tion. These operations must use
A) the absolutely cleanest air technology.
B) the best available filter technology.
C) the maximum achievable control technology.
D) the most affordable scrubbing technology.
Q3) There are no defenses to liability under the Comprehensive Environmental Response, Compensation, and Liability Act.
A)True
B)False
Q4) Only the federal government may restrict emissions from motor vehicles.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 47
Chapter 46: Antitrust Law
Available Study Resources on Quizplus for this Chatper
41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/73283
Sample Questions
Q1) A firm may be a monopolist even though it is not the sole seller in a market.
A)True
B)False
Q2) Office Warehouse Inc. and Paperclips Inc. are the chief competitors in their market. They agree that Office Warehouse will operate only east of the Mississippi River and Paperclips will operate only west of the waterway. Under antitrust law, this is most likely A) a per se violation.
B) a violation only if their competitors make similar deals.
C) a violation only if their customers agree to honor the deal.
D) not a violation.
Q3) Congress enacts a statute to outlaw a specific type of anticompetitive business agreement. Like other laws that regulate economic competition, this law is referred to as A) a federal trade commission act.
B) an antitrust law.
C) an interstate commerce act.
D) a suppressive restraint on trade.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 47: Professional Liability and Accountability
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73284
Sample Questions
Q1) An accountant's liability under the Securities Act of 1933 re?quires privity of contract with the purchaser of a security.
A)True
B)False
Q2) Cathy is an accountant with Discount Retail Corporation. Efrem buys Discount Retail stock and loses money on the investment. To recover from Cathy under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, Efrem must prove
A) only the purchase and sale of a security.
B) fraud, reliance, materiality, and lack of knowledge about securities.
C) fraud, reliance, materiality, and incompetence.
D) fraud, reliance, materiality, causation, and scienter.
Q3) Commerce Bank files a suit against Drake, its former accountant, al?leging constructive fraud. Drake may be held liable
A) if Commerce Bank cannot prove actual fraud.
B) if Drake was grossly negligent in the performance of his duties.
C) only if Drake acted with fraudulent intent.
D) only if Drake impersonated someone who could be liable for fraud.
To view all questions and flashcards with answers, click on the resource link above.
Page 49
Chapter 48: Personal Property and Bailments
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73285
Sample Questions
Q1) Intangible personal property may be bailed.
A)True
B)False
Q2) Quentin wants to give Rowena a pearl necklace that he has in his safe de?posit box at Security Bank. The bank is closed for a holiday. Quentin gives Rowena a key to the box and tells her to go to the bank after the holi?day and take the necklace. Rowena does this. The next day, Quentin dies unex?pectedly. His heirs want the necklace. What type of gift was this? Can Rowena keep the necklace?
Q3) EquipLease Company leases a thresher to Farm Harvest, Inc., a firm that contracts with farm owners to harvest their crops. The machine is seriously damaged through Farm Harvest's neglect. Most likely liable for the damage is A) EquipLease.
B) Farm Harvest.
C) the farm owners.
D) no one.
Q4) A bailment must be in writing to be valid.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 50
Chapter 49: Real Property Landlord-Tenant Law
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73286
Sample Questions
Q1) Buck owns five acres of land in California. On the land Buck has a house and a toolshed. There are ten large maple trees around the house. The real property includes A) the land only.
B) the land and the house only.
C) the land, the house, and the toolshed, but not the trees.
D) the land, the house, the toolshed, and the trees.
Q2) Kenneth has a periodic tenancy that requires him to pay rent weekly. Kenneth wishes to terminate his tenancy. Under the common law, he must give his landlord notice of at least
A) one week.
B) two weeks.
C) thirty days.
D) sixty days.
Q3) Mix-It Concrete Company has the right to enter Nim's land and remove the rock from Nim's quarry. This is
A) the power of eminent domain.
B) a license.
C) an easement.
D) a profit.
To view all questions and flashcards with answers, click on the resource link above.
Page 51
Chapter 50: Insurance
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73287
Sample Questions
Q1) Lamont applies for a health insurance policy with MedInsure, Inc., an insurance company, through Netta, an agent who works for MedInsure. Lamont pays the initial premium. Netta writes a binder, which A) acknowledges the application and promises to consider it. B) attests to the truth of each statement in the application C) evidences receipt of the payment of the initial premium. D) indicates that a policy is pending and states its essential terms.
Q2) An insurance company may require an applicant to give the company permission to access the applicant's private medical records and credit ratings, for the purpose of evaluating the risk.
A)True
B)False
Q3) Employer's liability insurance insures an employer against liability for injuries or losses sustained by employees during the course of their employment.
A)True
B)False
Q4) A broker is not an agent of the insurance company or the applicant.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 52
Chapter 51: Wills and Trusts
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73288
Sample Questions
Q1) Mason creates a trust to prevent his son, Newt, the beneficiary, from assign?ing his rights to future payments of income from the trust. This is
A) a charitable trust.
B) a constructive trust.
C) a spendthrift trust.
D) an illegal trust.
Q2) Meryl's daughter Nixie dies before Meryl, leaving Nixie's son Orman. On Meryl's death, it is learned that her will gives "to my daughter Nixie my farm near Pratt, Kansas." Most likely, the gift of the farm
A) abates.
B) will not lapse.
C) lapses in full.
D) lapses in part.
Q3) A power of attorney is usually limited to a specific context, such as negotiating a deal with a buyer.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 53