Which of the following is true regarding contracts?
A contract that is completely performed by all parties is called an executory contract.
A contract that has been completely performed by one party, but not the other, is called an executed contract.
A contract that has been performed by A but not by B is executory as to B and executed as to A.
To be enforceable, a contract must be executed.
Question 2
Which of the following is a true statement?
A.
Goods are defined as only intangible personal property such as stocks, bonds, money, and patents.
B.
The Uniform Commercial Code does not have any Statute of Frauds provisions.
C.
A fixture is personal property affixed to real property but which can be readily removed.
D.
The Uniform Commercial Code’s implied warranty of merchantability is only imposed on merchants.
Question 3
When is an employer responsible for the negligent torts of its employees?
a.
When there is vicarious liability and the doctrine of respondeat superior applies.
b.
When the torts are committed by the employee acting in the “course and scope of employment.”
c.
When the employer is directly negligent for selecting and/or supervising an incompetent and careless employee who commits the tort.
d.
All of the above.
Question 4
Which express warranties are sellers of goods required to make by the UCC?
A.
Warranties regarding the quality of goods.
B.
Warranties regarding the length of time that the product can be returned.
C.
Warranties regarding the length of time that the seller will repair the product.
D.
None of the above.
Question 5
Agents can bind principals:
a.
If they have actual authority.
b.
If they have implied authority.
c.
If they have apparent authority.
d.
All of the above.
Question 6
Which type of mistake usually will make a contract voidable at the option of the mistaken party?
a.
A bilateral or mutual mistake
b.
A unilateral mistake
c.
A unilateral palpable mistake
d.
Both a. and c.
Question 7
Which of the following best describes how a corporation, which has not made any special tax elections, and its shareholders, are taxed?
The corporation is not taxed, but the shareholders are taxed on their dividends.
The corporation is taxed, but the shareholders are not taxed on their dividends.
The corporation is taxed, and the shareholders are taxed on their dividends.
Neither the corporation nor its shareholders are taxed.
Question 8
The tort of assault and the tort of battery are:
A.
Two names for the exact same tort.
B.
Strict liability torts.
C.
Independent torts which can occur separately from one another.
D.
Require proof of each of the separate elements of negligence.
Question 9
Which of the following is a true statement?
A.
Third parties cannot acquire enforceable rights under a contract.
B.
The beneficiary of a life insurance policy is an intended third party beneficiary.
C.
A party who wants to get out of a contract that he or she entered into because it was not as good a deal as originally thought of can successfully interpose the doctrine of unconscionability.
D.
If a court finds that the subject matter of a contract is illegal, the court usually will undo the contract and place the parties back in the status quo.
Question 10
Which of the following contracts is not required as a general rule to be in writing under the Statute of Frauds?
A contract to be performed in less than one year.
A contract involving the sale of land.
A contract for the sale of goods over $500.
A guaranty contract to pay someone else’s debt if they fail to.
Question 11
A method of avoiding litigation for a breach of contract is
Mediation
Arbitration
Accord and satisfaction
All of the above
Question 12
Which of the following statements is not true regarding the assignment of a partner’s interest in the partnership?
The partnership interest is personal property.
The partnership interest may be assigned without the permission of the other partners.
The assignment makes the person receiving it (the assignee) a new partner.
The assignment allows the person receiving it (the assignee) to receive the partnership profits of the assignor.
Question 13
The United States Constitution established the following branches of the national (federal) government?
a.
Legislative, Executive, Judicial, and Administrative Bureaus and Agencies
b.
Legislative, Executive, Judicial, Administrative Agencies, and the Media
c.
Legislative, Executive, Judicial
d.
Legislative, Executive, Judicial, and the Church.
Question 14
Which of the following is not true of a valid voting trust?
It must be in writing, filed with the corporation, and have a maximum duration of ten years.
The trustees are vested with legal title to the shares for the duration of the trust, including full authority to vote the shares in accordance with the trust agreement.
Shareholders can use the voting trust as an indirect way to control the corporation.
All of the above are true.
Question 15
Which of the following is a false statement?
A voidable contract is a valid contract that can still be avoided by at least one of the parties to it.
A quasi-contract has no legal efficacy since it is a “pretend” contract.
Pursuant to the common law “mirror-image” rule, an offer must be accepted in its entirety without modification or conditions or else no contract can be formed.
An advertisement is generally not treated as an offer to enter into a contract pursuant to U.S. law.
Question 16
The Uniform Commercial Code is
A state law governing commerce
A federal law governing commerce
An international law governing commerce
A model act
Question 17
Duties under a contract:
Are freely assignable under all circumstances.
Can be delegated, but only if there is a signed writing.
May be delegated without assigning rights.
May be delegated only if there is a corresponding assignment of rights.
Question 18
In which of the following are the partnership events listed in the correct order of occurrence?
Winding up, dissolution, termination.
Dissolution, termination, winding up.
Dissolution, winding up, termination.
Termination, dissolution, winding up.
Question 19
Corporations typically are required to hold shareholders’ meetings at least:
Annually
Every six months.
Twice a year, but they are not required to be held every six months.
Quarterly.
Question 20
Martha is a minority shareholder in the ABC Corporation. Which method of voting would give Martha the best chance to elect someone to the board of directors?
Cumulative.
Noncumulative.
Proxy.
Supermajority.
Question 21
The board of directors of Omega, Inc., announces a cash dividend. A cash dividend may not be paid from
accumulated surplus.
gross profits.
net profits.
retained earnings.
Question 22
National Sales, Inc., wants to make an offering of securities to the public. The offer is not exempt from registration. Before National sells these securities, it must provide investors with
a marketing and management plan.
a prospectus.
a registration statement.
a tombstone ad.
Question 23
Which of the following is a TRUE statement?
A.
A contract made by a duly authorized agent acting within the scope of employment is not binding on the principal unless the principal approves the contract in a signed writing.
B.
The CEO of a corporation has the implied authority to enter into any and all contracts on behalf of the corporation.
C.
An employer is responsible for all the torts committed by his or her independent contractor committed while working for the employer.
D.
Independent contractors are not entitled to federal overtime pay requirements.
Question 24
Which of the following is FALSE about damages for a breach of contract?
a.
Money damages can consist of compensatory and consequential damages.
b.
Consequential damages must be reasonably foreseeable by the parties as likely damages stemming from a breach.
c.
Liquidated damages must be a reasonable amount and not an excessive “penalty.”
d.
The Mitigation of Damage rule does not apply when an employer breaches a contract with an employee since the employer is usually the dominant entity, and thus the wrongfully discharged employee does not have any obligation to look for other employment.
Question 25
Which of the following is a false statement?
A.
An agent who has held herself out as having higher-than-customary knowledge and skills will be held to that higher standard when doing the principal’s business.
B.
The “reasonable person” standard typically applies to the degree of care required of an agent when conducting the principal’s business.
C.
Most information that comes to the attention of an agent is assumed to be known by her principal.
D.
Duties of loyalty and accountability are not duties that the agent owes to his or her principal since the agent is not a fiduciary like a partner.
Question 26
Which statement is FALSE about the National Labor Relations Act (NLRA)?
a.
Employers can commit ULPs (unfair labor practices) by using inflammatory “scare tactics” and coercive techniques against the employees to prevent unionization.
b.
Secondary boycotts of companies doing business with a company that the union is striking are permissible so as to enhance the union’s power against the typically more powerful employer.
c.
Supervisors and managers are not covered by the NLRA.
d.
Both the employer and the union have a legal duty to bargain in good faith on the terms and conditions of a contract.
Question 27
“Stare decisis” is the doctrine of:
Separation of powers so that decisions are not made by a single branch of government.
Following precedent so that legal principles in earlier similar cases are followed in later cases.
Constitutional principles applied when making any decision.
Spending long periods of time looking at facts before making a decision.
Question 28
Which of the following statements is false?
Notice-and-comment rulemaking is the most common rulemaking procedure used by administrative agencies in the United States to make law.
Tort law provides legal remedies for both personal injury and property damage.
To commit an intentional tort, a person must intend the consequences of his or her act or know with substantial certainty that certain consequences will occur.
To commit an intentional tort, a person always must act with an evil motive to commit physical harm.
Question 29
Generally, a country can exercise its jurisdiction to adjudicate and enforce judgments against foreigners EXCEPT:
A.
A person is physically present in a country’s territory (unless he or she is merely in transit).
B.
A person is a resident of that country.
C.
A person regularly carries on business in that country.
D.
When a business owner in a foreign country uses the Internet to advertise and to seek customers in other countries.
Question 30
Where there is no agreement to share profits in a partnership, but one partner has devoted twice as much time to the partnership as the other over the course of the year, how are profits to be split?
In the ratio of time devoted to the partnership.
Fairly, as determined by a court or other neutral party.
The profits must remain in the partnership and not be distributed.
Equally.
Question 31
Which of the following is the most correct statement of the requirements for a bona fide occupational qualification?
Job related and cost effective.
Job related and nondiscriminatory.
Job related and a business necessity.
Rationally based and evenly and ethically applied.
Question 32
Under the UCC a merchant is best described as a
A salesman or saleswoman
A retailer
An inventor
A Venetian
