Question 1
Vicky is a shareholder in Web Services, Inc. Vicky could typically exercise
appraisal rights if Web was involved in
a consolidation only.
a merger only.
a consolidation or a merger.
neither a consolidation nor a merger.
0.5 points
Question 2
A transaction in which two corporations combine such that afterwards only one
of them still exists and owns all the assets previously owned by either
corporation is best called a:
Merger.
Consolidation.
Purchase of assets.
Share exchange.
0.5 points
Question 3
Even an employee at-will can sue for wrongful discharge when he or she:
a.
Is discharged in violation of Title VII of the Civil Rights Act.
b.
Is discharged in violation of the Public Policy doctrine.
c.
Is negligently discharged by the employer.
d.
All of the above.
0.5 points
Question 4
X Business Corporation markets its products in three states. Under the
Constitutionâs commerce clause, Congress can regulate
any and all commercial activity in the United States.
only commercial activities that are in interstate commerce.
only commercial activities that are local.
only activities that have nothing to do with commerce.
0.5 points
Question 5
Which of the following is not a correct statement concerning the reasons sufficient
to give a court power to dissolve a partnership?
A partnership may be dissolved if one of the partners is declared physically
disabled or mentally incompetent.
A partnership may be dissolved because a partner is shown to be not adequately
performing his or her part of the partnership contract.
A partnership may be dissolved if the business can only be carried on with
substantial continuing losses.
A partnership may be dissolved if one of the partners commits misconduct or
gross negligence or materially breaches the partnership agreement.
0.5 points
Question 6
A promoter’s preincorporation contract:
binds only the promoter unless adopted by the corporation.
binds both the promoter and the corporation.
binds only the corporation.
binds neither the promoter nor the corporation if rejected by the corporation.
0.5 points
Question 7
Where the principal makes representations to a third party about the role that
an agent is to play, which kind of authority usually arises?
Apparent authority.
Authority by ethics.
Inherent authority.
Implied authority.
0.5 points
Question 8
Standard Company and Tom wish to enter into an agency relationship for the
purpose of buying computers for Standardâs offices. The relationship requires
as a general rule:
a written agreement and consideration
a written agreement only
consideration only
neither a written agreement nor consideration
Question 17
A bank
representative closes the bank vault at night before going home. Unknown to the
bank representative, a customer was inside auditing his safe deposit box with
the permission of a bank teller. Everyone goes home and the bank representative
carelessly forgets to look inside the vault before closing it. The bank vault
is closed; and the customer is locked inside for 24 hours. When the vault is
opened, the customer is found and rushed to the hospital due to lack of oxygen
in the vault. The bank customer ultimately recovers from his injuries, but has
medical bills and has been traumatized too. He now sues the bank (and probably
will win) pursuant to what legal theory?
a.
Negligence
b.
False
Imprisonment
c.
Intentional
Tort
d.
Breach of
Warranty
0.5 points
Question 18
Allie, an adult, is injured while using a very sharp kitchen knife manufactured
by Fearless Cutting to prepare a dinner. The knife is manufactured according to
Fearless’ product standards. There is an adequate handle for the knife, a
sheath to enclose the knife, but no warning on the box, sheath, or knife itself
that the knife is very sharp. Allie sues Fearless pursuant to the doctrine of
strict liability, contending that the knife is a defective product. The likely
result of such a lawsuit would be:
a.
Fearless
loses since it is deemed to be an insurer of an ultra-hazardous product which
caused harm to a consumer.
b.
Fearless
loses since there was no warning on the product that the knife was sharp and
could cut.
c.
Fearless
loses since the knife was a flawed product.
d.
Allie
loses since the product was not defective and a reasonable person should have
been aware of the risk of being cut by a knife.
Question
14
Samir, a
legal resident of the U.S., applies for a job position with an employer as a
word processor. The position requires that a person type into Word documents
various old books, many of which have “fine” print, so that they
can be converted into electronic editions. Which of the following is NOT a
violation of U.S. civil rights laws?
a.
Samir
does not get the job because he is dark-skinned.
b.
Samir
does not get the job because he is from Pakistan.
c.
Samir
does not get the job because his eyesight is very, very poor and not
sufficiently correctable.
d.
Samir
does not get the job because he is a Muslim.
0.5 points
Question
15
A-One
Products Corporation and Best Manufacturing, Inc., enter into a contract for
a sale of goods that does not include a price term. In a suit between A-One
and Best over this contract and the price, a court will
determine
a reasonable price.
impose
the lowest market price for the goods.
refuse
to enforce the agreement.
return
the parties to the positions they held before the contract.
Question
11
Metro
Transport asks for bids on a construction project. Metro estimates that the
cost will be $200,000. Most bids are about $200,000, but A&B
Construction bids $150,000. In adding a column of figures, A&B
mistakenly omitted a $50,000 item. Because Metro had reason to know of the
mistake
A&B
can avoid the contract because Metro knew or should have known of the
errors.
A&B
can avoid the contract because the errors were the result of negligence.
Metro
can enforce the contract because the errors were unilateral.
Metro
can enforce the contract because the errors were material.
0.5
points
Question
12
The
legislature of the state of Florida approves casino gambling in Florida,
but just in three locations in southeast Florida, and with the significant
limitation that the casinos will not be allowed to advertise in any Florida
media. The legislature wants to protect the people living in the state from
being bombarded and seduced by continuous, sleek, sexy, and seductive
casino ads and consequently gambling their life-savings away. The casino industry
contends that the ban on advertising is unconstitutional. The likely result
of the constitutional challenge will be:
a.
The
state of Florida wins since it had the best interests of the people in
the state “at heart” since the legislature was trying to
protect people from the “vice” of gambling.
b.
The
casino industry wins since the advertising is clearly “political
speech” and Florida does not have a “compelling government
interest” in restricting the speech.
c.
The
casino industry wins if the advertising is truthful and not deceptive and
not aimed at minors since the advertising is protected “commercial
speech.”
d.
The
casino industry wins since advertising is speech and the First Amendment
to the Constitution absolutely protects all kinds of speech and
expression
Question
2
The
District of Columbia sues several big gun manufacturers contending that
the guns they sell in large quantities legally in Virginia often
illegally find their way into the District where they are used to commit
crimes and to injure residents of the district as well as the criminals.
The District wants to recover its public hospital expenses from the gun
manufacturers and accordingly sues them for the tort of negligence. The
likely result of this lawsuit will be:
The
District will win since guns are very dangerous products for which the
gun manufacturers are absolutely liable for.
The
District will win if the residents who are shot by the guns do not have
health insurance.
The
District will lose if it cannot establish a factual and proximate
causation connection between the original sale of the guns and the harm
to the District residents.
The
District will lose since Virginia is a state and the District is not a
state.
