BLAW FINAL part 3
d
A contract clause which specifies the amount of damages to be paid in the event of a breach is called a. an incidental damages clause. b. a covenant of damages clause. c. a reliance interest of damages clause. d. a liquidated damages clause.
false
Incorporators are required to sign the charter, deliver it to the proper state officials, and purchase a certain percentage of the initial stock offering.
a
Janelle has an art collection that she wants to sell. She calls Amber and tells her to sell the art collection for her at an upcoming auction. Amber agrees. This is an example of a. express authority. b. respondeat superior. c. intermediary agency. d. apparent authority.
b
Rich and Archie sign an agreement in which Archie agrees to deliver ten cases of champagne in 5 days. The parties negotiated and meant to say in the written agreement, delivery in 50 days. If the two cannot settle this dispute, and Archie still wants to deliver the champagne, then Archie should sue for the remedy of a. reliance. b. reformation. c. rescission. d. restitution
d
The principle of liability stating that an employer is liable for a physical tort committed by an employee acting within the scope of employment and a nonphysical tort of an employee acting with authority is called a. apparent authority. b. the equal dignities rule. c. fiduciary control. d. respondeat superior.
a
The remedy of reformation a. can be used to correct mistakes in the original contract. b. is available only if fraud is involved. c. applies only when money damages are inadequate. d. is a commonly used remedy.
c
Tina and Leroy have a contract for the sale of a vinyl record album. Tina, the seller, breaches the contract. A court will be most likely to order specific performance if there are __________ identical copies of the record album available for sale on the market. a. 2,000 b. 20,000 c. 2 d. 200,000
d
To "undo" a contract and put the parties where they were before they made the agreement is called a. restitution. b. reliance. c. remediation. d. rescission
b
To make a good faith purchase of goods similar to those in a contract is to a. breach. b. cover. c. rescind. d. mitigate.
b
Tom, the production manager at Esday, was told by his supervisor to hire Elton, a 15-year-old boy, to operate an industrial machine. Hiring the 15-year-old violates the child labor laws. What should Tom do in this situation? a. Tom should hire Elton; he has a duty of care to ensure that the government does not discover that Elton is 15 years old. b. Tom should not hire Elton; he has a duty to obey Esday's instructions only if they are legal and ethical. c. Tom should not hire Elton; he has a duty of care and he would not be caring for Elton. d. Tom should hire Elton; he has a duty to obey Esday's instructions.
c
Two parties are debating whether or not to put their contract into writing. In making their determination, which of the following factors would normally NOT be considered? a. whether or not the agreement falls within the Statute of Frauds b. the relationship between the two parties c. the length of time covered by the agreement d. the complexity of the agreement
d
What is a force majeure event? a. any finding in a contract that shows a provision was deliberately left unclear b. any happening that fulfills one of the conditions in the contract, making it enforceable c. any action that makes the contract unprofitable for either party d. a disruptive, unexpected occurrence for which neither party is to blame that prevents one or both parties from complying with a contract
a
What is the best definition of a fiduciary relationship? a. The trustee must act in the best interests of the beneficiary. b. The principal pays the agent to act on his or her behalf. c. A principal is liable for certain torts committed by an agent. d. The principal grants an agent permission to act, either by words or conduct.
a
What term identifies stock that has been authorized and sold? a. outstanding stock b. authorized and unissued stock c. treasury stock d. authorized and paid stock
a
When a partner leaves the partnership, whether it be voluntary or by expulsion, death or bankruptcy, it is called a. dissociation. b. termination. c. detachment. d. separation
b
When a principal is partially disclosed a. the agent and principal will be only jointly liable on the contract. b. the agent and principal will be jointly and severally liable on the contract. c. only the principal can be liable. d. only the agent is liable.
b
When a provision to a contract is accidentally unclear, it is called a. a scrivener's error. b. ambiguity. c. vagueness. d. a typo
d
Which is an advantage of a sole proprietorship? a. It offers its owner limited liability. b. It can offer multiple classes of stock. c. It can attract a wide variety of shareholders. d. It is very easy to form.
c
Which is true of an S corporation? a. A majority of shareholders must agree the company should be an S corporation. b. There can be no more than 50 shareholders. c. There can be only one class of stock. d. All of these are correct
c
Which of the following generally is NOT in the introductory paragraph of a contract? a. the nature of the contract b. the parties to the contract c. the covenants of the contract d. the date of the contract
b
Which of the following is NOT one of the three ways to amend a written contract? a. by crossing out the mistakes and writing in the corrections b. by verbally agreeing to the changes and shaking hands on the deal c. by writing and signing an amendment (or rider) d. by writing a totally new contract with the correct provisions
d
Which of the following is a duty of a principal to an agent? a. duty to provide information b. duty of loyalty c. All of these are correct. d. duty to indemnify for reasonable expenses
a
Which of the following is a standard provision frequently found in contracts? a. choice of forum b. mediation c. choice of compensation d. understanding
a
Which of the following is one of the four steps in reading a contract? a. What-ifs b. Re-write with a lawyer c. Final approval d. Scan for typos
c
Which of the following statements concerning liquidated damages is NOT TRUE? a. Nominal damages are not the same thing as liquidated damages. b. A liquidated damages clause will be enforced, if, when the contract was made, it was difficult to estimate actual damages. c. Liquidated damages are enforceable even if the amount is considered to be a penalty on the breaching party. d. The amount of liquidated damages must be a reasonable estimation of the actual harm resulting from a breach
c
Which of the following statements regarding social enterprises is TRUE? a. Social enterprises are essentially nonprofit organizations. b. The focus of social enterprises is the motto "reduce, reuse, recycle." c. Unlike charities, social enterprises can sell stock to investors. d. To become a socially conscious organization, one-half of the shareholders must approve
a
Which of the following states that a corporation cannot undertake any transaction unless its charter permits it? a. the ultra vires doctrine b. the estoppel doctrine c. the exculpatory clause d. the indemnification clause
a
Which of the following states that if an agent is empowered to enter into a contract that must be in writing, then the appointment of the agent must also be written? a. equal dignities rule b. duty to obey instructions c. fiduciary duty d. balanced contract rule
d
Which of the following would NOT be personally liable for the debts of the business? a. a partner in a general partnership b. a sole proprietor c. a partner in a joint venture d. an S corp shareholder
c
Which statement about the financial rights of partners is accurate? a. Partners share losses equally. b. All partnership property belongs to the individual partners. c. Partners share profits equally unless they agree otherwise. d. All of these are correct.
b
Which type of interest is designed to return to the injured party a benefit that he or she has conferred on the other party, which would be unjust to leave with that person? a. None of these are correct. b. restitution interest c. expectation interest d. reliance interest
c
Who elects the officers of a corporation? a. the shareholders b. the incorporators c. the directors d. the agents
a
Who signs the charter and files it with the secretary of state? a. the incorporator b. the promotor c. the chairman of the board d. the company president
b
hich of the following persons is NOT an agent? a. Craig, a telephone marketing employee. b. Harold, a trustee to the beneficiaries of an estate. c. Diane, a shoe salesperson for a retail store. d. Tim, a real estate broker for a large real estate company
d
A court may pierce an LLC's veil if a. members keep their assets and the assets of the LLC separate. b. the LLC has too many members. c. members treat the LLC like a separate organization. d. members fail to provide adequate capital
b
A severability provision a. transfers benefits under a contract to another person. b. asks the court to delete the offending clause and enforce the rest of the contract. c. rescinds the entire contract upon request of the party who drafted it. d. transfers the obligations of a contract to another party.
b
A social enterprise must do all of the following EXCEPT a. state in its charter that it is a benefit corporation. b. register with the state as a nonprofit organization. c. obtain approval of its charter from two-thirds of its shareholders. d. measure its social benefit using a standard set by an objective third party
a
A+ Modeling Agency signs a contract with Sandi to do a photo shoot for the local used car dealer's advertising. The contract was most likely written by a. A+ Modeling Agency's lawyer. b. the owner of A+ Modeling Agency. c. Sandi's lawyer. d. Sandi.
a
All Seasons, Inc. ordered $5,000 worth of Christmas decorations from Santa, Inc. The shipment of decorations was to arrive no later than October 1, but did not arrive until December 1. All Seasons was able to purchase some of the unfulfilled order through other suppliers, but had to pay 15% more than the price under contract with Santa, Inc. As a result of the delay, All Seasons' sales were down 25%. All Seasons can recover a. compensatory damages and consequential damages. b. nominal damages. c. punitive damages. d. compensatory damages, consequential damages, and punitive damages
a
All of the following are characteristics of a closely held corporation EXCEPT a. the shares are publicly traded. b. the shareholders usually restrict share transfer. c. the corporation can typically operate without a board of directors. d. minority shareholders are provided more protection than in regular corporations.
a
All of the following conditions must exist for partnership by estoppel to exist EXCEPT a. one partner agrees not to share in the profits of the enterprise. b. participants tell other people they are partners even though they are not. c. a third party suffers harm because he or she believed a partnership existed. d. a third party believes and relies upon the assertion that participants are partners.
d
All the business forms listed below have limited liability EXCEPT the a. "S" corporation. b. limited liability company. c. corporation. d. general partnership.
b
Anne and Mike were winding up their partnership. Mike was approached by a person who wanted the partnership to do some work for him. Mike agreed that the partnership would do the work. Generally speaking, in such a situation a. Anne is not liable since the partnership was in the winding-up phase. b. Anne is liable unless she filed a statement of dissolution with the secretary of state within 90 days of when Mike entered the contract. c. Anne is not liable since she did not consent to the work. d. Anne is not liable since Mike's conduct was wrongful.
a
Art and Alma made capital contributions of 60% and 40% respectively to their newly formed partnership, AA & Associates. They did not have a written partnership agreement. At the end of the first year, the partnership made a profit of which Alma now claims half. However, Art maintains he should receive 60%. Who is correct? a. Alma, as the UPA provides that profits are split equally unless the partners agree otherwise. b. Art, since it would only be fair. c. Alma, because she works in the business. d. Art, since the UPA presumes that profits and losses are divided in proportion to capital contribution.
d
At what stage are the partnership debts paid and the proceeds distributed to the partners? a. during termination b. during dissolution c. during dissociation d. during winding up
a
Becky asks her friend Maggie to walk her dog for her, and Maggie agrees. While out walking, the dog gets away from Maggie and runs into Mr. Edwards' garden, digging up some expensive plants. Which statement best characterizes this situation? a. Becky is liable for the damages to Mr. Edwards' garden, because she exercised control over her agent, Maggie. b. Both Becky and Maggie are equally liable for the damages to Mr. Edwards' garden--the dog belongs to Becky, but Maggie was walking him at the time of the damage. c. Neither Becky nor Maggie is liable for the damages to Mr. Edwards' garden because no agency relationship existed between Becky and Maggie. d. Maggie is liable for the damages to Mr. Edwards' garden, because she was walking the dog at the time of the damage
c
Bob, a house painter, contracts with Ollie to paint a rental house that Ollie owns. Bob hires Rob to take his place as the painter on this contract. What has Bob done? a. made a scrivener's error b. severed the contract c. delegated his duties d. assigned his rights
a
Cameron, editor of the local newspaper, assigned to Jim the writing of a story about pollution of a nearby stream. Although Jim used reasonable care in gathering and checking his information, unknown to Jim, the story contained a defamatory statement about Maureen. Maureen reads the story and sues Jim for libel. Cameron, who read and published the story a. must indemnify Jim for Maureen's claim. b. need not indemnify Jim for Maureen's claim because Jim should have checked his facts more carefully. c. can recover damages from Jim for any injury to the newspaper resulting from Jim's story. d. need not indemnify Jim for Maureen's claim because Jim breached his duty to obey instructions.
b
Carlos is hired to paint a house for $700. Before he starts, the woman who hired Carlos tells him she does not want the job done after all. Carlos finds another house-painting job that afternoon, but it pays only $500. If Carlos sues the woman for damages and is awarded $200, that amount is an example of a. nominal damages. b. direct damages. c. incidental damages. d. consequential damages.
b
Chance is a traveling marketing representative for a publishing company. He is an independent contractor and was hired without negligence. One afternoon while driving to a meeting, Chance negligently runs a stop sign and causes an accident. Judy is injured. Judy can a. not hold Chance or his company liable for her injury. b. hold Chance but not the company liable. c. hold both Chance and his company liable for her injury. d. hold the company but not Chance liable.
a
Circus Pizza contracted with Art to run its birthday parties. Art's responsibilities included supervising the children and organizing the games. Circus did not investigate Art's background, which included a history of assaulting children. Art assaulted a 7-year-old girl in the restaurant's kitchen during a birthday party. Circus Pizza a. may be held liable on the basis of negligent hiring. b. cannot be held liable for the damages because Art's conduct was not in the scope of employment. c. cannot be liable for the damages because Art committed an unforeseeable intentional tort. d. may be held liable only if Circus actually knew of Art's background.
d
Daniel, his parents, and three brothers own all the stock of their family farm corporation, and each person takes an active role in managing the enterprise. This corporation, which is taxed as a corporation, is most likely a(n) a. professional corporation. b. S corporation. c. proprietorship. d. close corporation.
d
Daria is a partner in a small coffeeshop. If she acts with actual or implied authority, then she has a. the right to bind the partnership, but not the power. b. the power to bind the partnership, but not the right. c. neither the power or the right to bind the partnership. d. both the power and the right to bind the partnership
b
Debra wanted to form a partnership with Lawrence. He agreed and they became co-owners in an equal partnership. This year, after expenses, the partnership had a profit of $200,000. How will the taxation of this profit be handled? a. The business will pay half of the tax liability, and Debra and Lawrence will pay the other half. b. Debra and Lawrence must both pay tax on the business's profit. c. Since the partnership was Debra's idea, she will pay income tax on the profit on her personal tax return. d. The business itself will pay the taxes on the business's profit
false
Doyle contributed $10,000 when he became a general partner in the existing partnership of R & Z Heating. If Albert wins a judgment for $25,000 against R & Z on a claim that was incurred before Doyle became a partner, Doyle shares joint and several liability with his new partners for the whole obligation.
a
Dusty dissociated from a partnership. To protect himself from debts of the partnership after he leaves, Dusty should a. file a statement of dissociation with the secretary of state. b. secure an indemnity bond. c. execute a formal written agreement with the remaining partners. d. demand that the partnership terminate.
b
Farmer Elvin is holding 200 pounds of potatoes in storage for Chef Noble but Chef Noble has breached the contract by failing to pay for the potatoes. If Farmer Elvin sells the potatoes to a local diner to make potato soup and salad, then this action would be considered a(n) a. attempt at reformation. b. reasonable mitigation of damages. c. attempt to realize an unwarranted profit. d. attempt to maximize damages.
a
Farmer's Fortune Insurance has a contract with Farmer Fran to insure her crops against insect damage. The contract does not specify which insects are covered or how much damage is necessary to make a claim. The contract will probably be enforced in favor of a. Farmer Fran. b. Cannot determine... would have to go through litigation to decide. c. Neither side, as it is ridiculous to try to insure against insects. d. Farmer's Fortune Insurance.
a
Gary and Herman are partners in a lawn mower repair business in Ohio. While Gary is on vacation, visiting his sister in Georgia, his sister's neighbor has trouble with her mower and Gary fixes it for her. She insists on paying him. Gary a. must turn the money over to the partnership because he earned it doing the kind of work that the partnership does. b. may keep the payment since he did the work while he was on vacation. c. may not accept the money because it would create a conflict of interest. d. may not accept the money because it would mean he was taking a business opportunity away from the partnership
d
Hank owns 100 shares of cumulative preferred stock in Wayside Transport, Inc. Kelsey owns 50 non-cumulative preferred shares, and Oleg owns 120 shares of common stock. Wayside does not pay dividends in 2015. In 2019 a. Hank and Kelsey must receive their 2019 dividends before Oleg is paid any 2019 dividends. b. Oleg cannot receive any 2019 dividends until Hank is paid for the 2015 dividends. c. Kelsey cannot receive the dividends Wayside could not afford to pay in 2015. She will just lose them. d. All of these are correct.
c
How is consent established in an agency relationship? a. The principal gives consideration to the agent. b. The principal and agent must have a written, notarized agreement. c. The principal must ask the agent to do something and the agent must agree. d. All of these are correct.
c
If a court awards nominal damages, it will generally a. not make a determination as to whether there has been a breach of the contract. b. award compensatory damages as well. c. award a very small amount of money. d. award punitive damages for the intentional breach of the contract
b
If the subject of the contract includes issues that may be controversial or "touchy," it is best to a. keep lawyers out of the negotiation, so relationships are not strained. b. deal with them up front before the relationship becomes strained. c. deal with them one at a time, as the problems arise. d. state your position up front and stand firm when the other party objects.
c
In a contract modification, the phrase "charged with such amendment" refers to a. the party who suggested the change. b. the party who did NOT suggest the change. c. the party who will be adversely affected by the change. d. the party who will benefit from the change.
a
In a promissory estoppel case, a court will generally award a. only reliance damages. b. specific performance. c. only nominal damages. d. both reliance and punitive damages
b
In breach of the partnership agreement, Trimble, a partner in the partnership of Morris, Newt, and Oppie, Ltd. quits the partnership and goes to work for a competitor. The former partners may ask the court for a. specific performance requiring Trimble to return to work for Morris, Newt, and Oppie, Ltd. b. an injunction to prevent Trimble from working in competition with the former partners. c. special damages under the rule of Hadley v. Baxendale. d. liquidated damages as compensation for the breach.
c
In determining if a partnership exists, the courts will consider all of the following factors EXCEPT a. actions of the persons involved. b. management of the business. c. the nature of the business. d. profit.
a
In many ways, a limited liability company can be thought of as a cross between a. a corporation and a sole proprietorship. b. a sole proprietorship and a social enterprise. c. a corporation and a franchise. d. a joint venture and a partnership
d
In the case of an undisclosed principal, a third party a. can only recover from the principal. b. can only recover from the agent. c. cannot recover at all. d. can recover from either the agent or the principal.
a
In the case of scrivener's errors, a court will usually a. reform the contract if it is clear that the mistake is not what the parties intended. b. enforce the contract as written. c. throw out the contract completely. d. instruct the parties to rewrite the contract without the errors
b
In which of the following situations is it likely that you may NOT need a written contract? a. You are dealing with a party you do not know well, so you need to remain flexible. b. The terms of the agreement are simple and the value of the transaction is small. c. You are buying land from a member of your family. d. You have negotiated with the other party enough that you both know what the other person intends.
c
Jill owns a retail business by herself and was sued by a customer who fell in the store. The customer claimed the business was negligent in caring for its floors. Which statement best describes Jill's potential liability? a. Jill cannot be held personally responsible; the woman's insurance must pay for the claim. b. Jill has no potential liability to the customer. c. Jill can be held personally liable to the customer since she is the owner. d. Jill can only be liable up to the amount she initially invested in the business.
a
Kayla and Marshall formed a partnership. Marshall incurred a debt in the ordinary course of the partnership business. If the debt is not paid, the creditor may sue a. the partnership and the partners together, or in separate lawsuits, or in any combination. b. only Marshall and the partnership in a lawsuit together or the creditor loses any right to sue the partnership. c. only Marshall. d. only the partnership.
d
Larry and Reed are partners in Custom Pet Grooming. As they are both nearing retirement age, when they form their partnership, they agree they will end their business relationship and sell Custom Pet Grooming in three years. Larry and Reed have a a. partnership at will. b. franchise. c. partnership by estoppel. d. term partnership
a
Larry purchased a Leisure Lawnmower because the company salesperson intentionally misled him by assuring him that the mower was self-propelled, had a mulching feature, and had a five-year unlimited manufacturer's warranty. When Larry finds out that his new Leisure Lawnmower is not self-propelled, does not mulch, and has a 90-day warranty, he may successfully sue for a. restitution and possibly punitive damages. b. restitution only. c. reformation of the contract only. d. compensatory damages only.
c
Lori and Dan own a small restaurant as partners. Dan works several hours a day cooking, waiting on tables, doing the books, and so forth. Dan believes he is entitled to be paid at least a standard wage for all his work since, at the present time, the part-time kitchen helpers earn more than he does! Lori claims Dan is not entitled to anything other than one-half the net profits. Is Lori right? a. No. Dan may collect only minimum wage, as required by federal law. b. No. Dan may collect a fair wage for the work he has performed. c. Yes, if there is no agreement between Lori and Dan allowing for either of them to be paid wages for work done at the restaurant. d. Yes. The UPA states a partner may not collect a "wage" from the partnership business under any circumstances.
c
Marsha and Antonio make a contract in which Marsha agrees to sell Antonio an expensive and rare piece of art. In the contract, Marsha states that she has the authority to enter into an agreement with Antonio, that she owns the piece of art, and that the art is authentic and not a forgery. These statements are examples of a. covenants. b. riders. c. representations and warranties. d. choice of law provisions.
a
Max, Jenny, and Craig are partners. They have purchased an elegant Victorian home and converted it into an office for their partnership. Craig decides to use the partnership's office to host some evening parties. Craig has a sideline business of arranging expensive gatherings and charging each person a handsome price to attend these "elite" parties. When Max and Jenny find out what Craig is doing, they demand that he pay them for the use of the property. How much money, if any, is Craig required to pay the partnership? a. He must turn over any profits he earned from this activity. b. Nothing, but he will be removed from the partnership for violating his fiduciary duty. c. Nothing. He is free to use partnership property for his own uses. d. He must pay the fair market value for the use of the hous
a
Mike is planning on incorporating his business in the state of Delaware. Which of the following regarding the name of Mike's business is TRUE? a. He will be able to use the words "Association" or "Institute" in his company name. b. His company name can be the same as another corporation that already exists in Delaware. c. He will not be able to use abbreviations (such as Inc. or Corp.) in his company name. d. His company name will not have to include one of the following words: Corporation, Incorporated, Company or Limited
c
Mohammad was an employee in the new product development department of Estay Inc. Mohammad was directly involved in the development of a new product that Estay intended to launch in 6 months. Estay took great care to keep information concerning the new product a secret. Ceries, Inc., a competitor of Estay, persuaded Mohammad to leave Estay to direct Ceries' marketing department. Which statement is correct? a. Mohammad can share with Ceries the confidential information he knows about Estay's new product because he was directly involved in its development. b. Mohammad can share with Ceries the confidential information he knows about Estay's new product because his agency relationship with Estay is terminated. c. Mohammad cannot share with Ceries the confidential information he knows about Estay's new product because he has a duty not to disclose confidential information he acquired during the agency. d. Mohammad cannot share with Ceries the confidential information he knows about Estay's new product because of the equal dignities rule.
a
Most franchisors and franchisees are a. corporations or LLCs. b. partnerships. c. social enterprises. d. sole proprietorships.
d
Mulligan Domestics Co. breached a contract by refusing to accept its order for 60 bolts of fabric from Wellington Mills, although the fabric met the contract specifications. In this situation, Wellington Mills a. has at least four remedies under the UCC. b. would be awarded consequential damages by most courts. c. may resell the fabric to someone else and, if it sues Mulligan, Wellington Mills will be awarded the full contract price. d. may choose not to resell the fabric and settle for the difference between the contract price and the market value.
c
Nancy was a partner of a small business. She could see that the business was beginning to fail and that it was very unlikely it would recover. Not wanting to lose her investment, she asked that the court require the partnership to dissolve since she did not have a legal right to withdraw at that time. Does a court have the authority to order a partnership to dissolve? a. Yes. Under the UPA, if a partner can show the court the business suffered a loss the year before the case was filed, the court can dissolve the partnership. b. No. A court can only dissolve a partnership at the request of all the partners. c. Yes. A court can dissolve a partnership when it is convinced that the partnership is unlikely to succeed. d. No. A court does not have authority to dissolve the partnership
a
Nate works as a sales representative. His employment contract specifies that he cannot work for a competitor for a period of two years from employment. This is an example of a. ambiguity. b. vagueness. c. duress. d. extortion
d
Provisions that a party agrees to perform only if the other side also does what it promised are called a. riders. b. choice of forum provisions. c. reciprocal promises. d. conditional promises.
a
Ralph is a professional football player. He signs a valid contract with the Jets. Later, the Giants offer him more money, so he signs a contract with them. If the Jets sue Ralph, what would the most likely result be? a. The court will issue a preliminary injunction barring Ralph from playing with any team other than the Jets during the course of the lawsuit. b. The court will order Ralph to play with the Jets. c. The court will order Ralph to play with the Jets, but Ralph is entitled to be paid the amount he negotiated under the Giants contract. d. The court will order Ralph to pay compensatory damages in the amount of the difference between the two contracts.
d
Ralph is a professional football player. He signs a valid contract with the Miami Dolphins. Later, he claims that he was also promised free use of the Dolphins' private jet, but this was not in the contract. What type of clause in his contract would prevent him from flying away with this claim? a. a severability clause b. a complete agreement clause c. a "no additional terms" clause d. an integration clause
c
Reformation is a. a type of restitution. b. the most common of all remedies. c. the least common of all remedies. d. a form of quasi-contract.
d
Rich and Archie sign an agreement in which Archie agrees to deliver ten cases of champagne in 5 days. The parties negotiated and meant to say in the written agreement, delivery in 50 days. If the evidence is clear that the two parties intended to agree to 50 days, the courts will probably a. rescind the contract. b. issue a warranty. c. issue a covenant. d. reform the contract.
b
Sandy, Ramon, and Bonnie were partners. Sandy dissociated from the partnership. Bonnie and Ramon decided to continue the business. When Sandy dissociated, there was a $50,000 debt owed to Great State Bank. Which statement is correct? a. Only Ramon and Bonnie are liable for the $50,000 debt owed to Great State Bank. b. Sandy remains liable on the $50,000 debt owed to Great State Bank. c. Whether Sandy remains liable depends on whether she filed a statement of dissociation. d. The debt is extinguished as a result of the dissociation.
c
Solomon breaches his contract with Neal to purchase the 500 pairs of socks he had promised to buy. Neal is able to sell the 500 pairs to Renny for a much lower amount. Neal then sues Solomon for damages. Neal will be able to recover a. the amount in the liquidated damages clause. b. Solomon's contract price. c. the difference between Solomon's contract price and the amount paid by Renny. d. an amount which depends on whether Solomon intentionally breached because he found cheaper socks somewhere else
a
Specific performance is always available in a. real estate contracts. b. agreements involving vehicles. c. employment contracts. d. agreements involving farm goods.
a
Specific performance may be available for the breach of a contract to sell a. an original painting. b. 20 shares of Walmart stock. c. a Nintendo Wii video game system. d. a 2007 Mustang in mint condition.
a
Standard provisions in a contract that are often listed under the heading "Miscellaneous" are called a. boilerplate. b. boilerpot. c. boilertape. d. boilerroom.
a
The Levitt Corporation charter authorizes 500,000 shares of stock. This stock is referred to as a. authorized stock. b. common stock. c. preferred stock. d. treasury stock.
d
The form of business ownership that is the MOST easily transferable is the a. close corporation. b. general partnership. c. sole proprietorship. d. corporation.
c
The goal of expectation interest is to a. put the non-breaching party in the position it would have been in had the contract never been formed. b. serve as a penalty for breaching a contract. c. put the non-breaching party in the position it would have been in if the contract hadn't been breached. d. award damages under the UCC when the sale of goods is the subject of the contract
c
The person who creates a corporation is called the a. incorporator. b. partner. c. promoter. d. agent
d
The phrase "piercing the company veil" applies to which type of organization? a. a general partnership b. a close corporation c. an S corporation d. a limited liability company
d
Wizardry Corporation's purpose clause in its charter states the following: "To operate a home-cleaning service business." After a few years of successful operation, Wizardry is offered the challenge of landscaping a neighboring business. If Wizardry accepts the offer, it would be violating its charter under a. an estoppel theory. b. the de facto doctrine. c. the de jure doctrine. d. the ultra vires doctrine
