Reference no: EM131335091

Question 1

With respect to transferability of ownership interests, a sole proprietor may:

not transfer her interests

may only transfer her interest with approval of the state

freely transfer her interests

transfer her interests to family members only

transfer her interests after paying a capital gains tax

Question 2

The ____ prohibits the introduction of oral evidence into a lawsuit where the evidence presented is contrary to the terms of a written contract.

parol evidence rule

real evidence rule

oral evidence rule

phone evidence rule

verbal evidence rule

Question 3

In Dunkin' Donuts Franchised Restaurants LLC v. Sandip, Inc., where Dunkin' Donuts claimed that Sandip breached their franchise agreements and Sandip protested that Dunkin' Donuts was not allowing them a reasonable chance to sell the franchise, the court held that:

Sandip had the right to continue using Dunkin' Donuts' marks until they sold the buildings

Dunkin' Donuts was not entitled to terminate the lease agreement because there was a suitable buyer

Dunkin' Donuts was not entitled to terminate the lease agreement, even though there was no suitable buyer

Sandip had the right to terminate the lease agreement and sell the buildings to whoever they wanted

none of the other choices are correct

Question 4

A ____ is one whose shares are held by one shareholder or a small group of shareholders.

nonprofit corporation

small corporation

limited corporation

shared corporation

none of the other choices are correct

Question 5

Elements of a contract include all of the following except:

an agreement among the parties

lawful subject matter

consideration

parties with legal capacity

all of the other choices are elements

Question 6

The ____ are the "rules" that regulate and govern the internal operations of the corporation.

the certificate of incorporation

the bond

the bylaws

statutes of business

the corporate constitution

Question 7

In Dunkin' Donuts Franchised Restaurants LLC v. Sandip, Inc., where Dunkin' Donuts claimed that Sandip breached their franchise agreements and Sandip protested that Dunkin' Donuts was not allowing them a reasonable chance to sell the franchise, the court held that:

Dunkin' Donuts was entitled to terminate the lease agreement

Dunkin' Donuts was not entitled to terminate the lease agreement because there was a suitable buyer

Dunkin' Donuts was not entitled to terminate the lease agreement, even though there was no suitable buyer

Sandip had the right to terminate the lease agreement and sell the buildings to whoever they wanted

Sandip had the right to continue using Dunkin' Donuts' marks until they sold the buildings

Question 8

Contract law is primarily:

federal statutory law

state common law

federal common law

state statutes

international code law

Question 9

A ____ is an artificial person, or legal entity, created under state law.

megabusiness

limited partnership

legal partnership

sole proprietorship

none of the other choices are correct

Question 10

The New York Stock Exchange is an example of a stock exchange where:

the stock of sole proprietorships can be traded

the stock of public corporations can be sold but not bought

the stock of private corporations can be traded

the stock of public corporations cannot be traded

none of the other choices are correct

Question 11

In Ironite Products v. Samuels, where a major shareholder (Samuels) of Ironite sued, contending the bylaws had been violated, the appeals court held that:

the bylaws had been violated because the Companies' bylaws did not clearly sanction the Board of Directors to manage the business and affairs of the company

the bylaws had been violated because the Companies' bylaws clearly sanctioned the Board of Directors to manage the business and affairs of the company

the bylaws had not been violated because the Companies' certificate of incorporation clearly sanctioned the Board of Directors to manage the business and affairs of the company

the bylaws were never properly approved and so there was no case for violation of bylaws

none of the other choices are correct

Question 12

Which of the following is usually included in the articles of incorporation:

name and address of the corporation

name and address of the corporation's registered agent

purpose of the business

names and addresses of the incorporators

all of the other specific choices are correct

Question 13

Which of the following is a type of damage award that may be granted by a court as a remedy for breach of contract:

compensatory

expectancy

liquidated

nominal

all of the other specific choices are correct

Question 14

To make an offer, the offeror must:

have known the offeree for at least 1 year

have the intent to be bound to the contract, but need not express or manifest that intent

have filed a copy of the offer with the county court house

have written documentation of the intent

none of the other choices are correct

Question 15

In Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc., where the EPA's "bubble rule" for measuring pollution from an industrial facility was challenged, the Supreme Court held that:

since Congress directly addressed the issue of the bubble policy it was not up to the EPA whether or not to use it

since Congress directly addressed the issue of the bubble policy it was up to the EPA whether or not to use it

since Congress gave the EPA special permission to enact whatever policy it wants, the EPA can have the bubble policy if it wants

since the EPA is not subject to regulation by Congress, it can have whatever policy it wants

none of the other choices are correct

Question 16

An adjudicatory hearing by an agency about a regulatory violation is often requested by companies hoping to clear the matter.

True

False

Question 17

Corporate charters used by state governments many years ago often granted some special privilege.

True

False

Question 18

In fulfilling the obligations of a contract, both parties are expected to act in good faith.

True

False

Question 19

If a person signs a contract because of "undue influence" by the other party to the contract, the person can later disaffirm the contract.

True

False

Question 20

In Japan, contract negotiations typically are quite time consuming.

True

False

Question 21

There are close to 30 million businesses in the U.S.

True

False

Question 22

In Chevron v. NRDC the Supreme Court held that court of appeals, when considering challenges to agency regulations, must give deference to an agency's "construction of of a statutory scheme."

True

False

Question 23

One agency created in the 1930s was the Federal Communications Commission.

True

False

Question 24

In a novation, all relevant parties agree to discharge one party from the contract and create a new contract with another party who accepts responsibility for the discharged party's performance.

True

False

Question 25

Limited liability companies, like corporations, are presumed to have perpetual life.

True

False

Question 26

The sale of counterfeit goods is estimated at about $20 billion a year in the U.S.

True

False

Question 27

Landlords have a privilege to enter the premises of rented property to make needed repairs.

True

False

Question 28

In Saadala v. East Brunswick Zoning Board, the appeals court held that the Board had failed to show "special reasons" why the zoning rules should change to allow a 7-Eleven to expand.

True

False

Question 29

Under the negligence standard, a manufacturer is required to exercise reasonable care under the circumstances in the production of its product.

True

False

Question 30

In U.S. v. Yang, where Yang was accused of bribing an employee of a company to give him some trade secrets, the appeals court held that Yang could be convicted of a federal crime.

True

False