Finance Unit 3 Test

The owners of a corporation are called

-shareholders

When a party to a contract does not perform as required,

-there is a beach of contract

Which form of businesss incurs double taxation

LLC's

Bozo if you wash my car ill pay you 10, he doesnt say anything but washes the car. This may be;:

a unilateral contract

. ____ is an offeree's expression of assent or agreement to the terms of an offer

acceptance

. Elements of a contract include all of the following except:

all the above

To create a limited liability company, must produce:

articles of organication

___ is something of value or something bargained for in exchange for a promise

consideration

Tracy drinks beer then goes and orders a new car. Then claims he was drunk and should not have to buy the car

depends if tracy culd prove he was incapatcited after a few beers

When both parties to an agreement are mistaken as to material fact, the contract:

may be voidable

When a breach of contract occurs, the non-breaching party is required to:

mitigate her losses

Buys a farm for 100,000 then finds out its only worth 55,000.

must pay 100,000

Without consideration:

neither party can enforce a promise or agreement

You leave your dog and they wash the dog and do an extra $10 service without you asking. What happens

no contract existed, no extra payment

A court award of 1.00 dollar in damages would be called:

nominal

Divorce agreement: alice agreed to assume the debt on credit card. This is an example of:

novation

Ads are usally considrered

nvitations for others to submit offers to buy

You pay $200 for the ight to be the only buyer a selelr will deal with for ten days for a piece of property that is for sale for 250,000.

option contract

Gary and sue are co owners

partnership

A sole propertiero ship comes into extistence when:

person does business by himsels

Which of the following statments is true? Corporatinons are not entitled to consitituion protected:

privleges against self incrimination

Many states now allow groups of doctors in practie to form legal entitie allowed by a statute called:

professional coprotation

When a aprty breaches a contrct the court may discourage such behavior

punitive

Today a corporation must be created according to:

state law

If NC bys toys from China and the contract does not specifiy which law applies

the CISG

If a conttact for the sale of goods does not speicify where to be delivered, the UCC presues

the delier is at the sellers place of business

Smith, drives you crazy, you agree to give Rat $5000 if he gets rid of smith, he returns for his money, you refuse to pay. He sues

unenforceable because it involves illegal agreement

An offeror can terminate an offer by:

withdrawing it

Under ___________ proceedings the debtor files a plan for payment of creditors over five years

Chapter 13

Miller needs to paint. Paint peels away, company advertising its good for such use.

a beach of implied warranty, relied on markers judgment and claims

An unconscionable contract is:

a contract so unfair to an innocent party taht hte courts cant enforce

Partners in a partnership owe each other:

a fiduciary duty

Which of the following is most likely to fall under UCC article 2:

buying seatbelts to install in cadialacs

If scott makes a nonbinding promise to lee and then fails to fulfill it:

court cant enfforce

A bord of directors fiduciary duty of loyalty requires that:

directors place the interts of the corporation before their own interests

. Ill sell you my car for 5 grand and she declines but then comes back and says ill take it

does not have to sell bc counter offer is a rejection

A ____ is created by a sellers promise or guarantee as to quality, safety, of goods being sold

express warranty

Your college wants 10 million a year later you froget and tell them to leave you alone.

have to pay the money under the rule of promissory estoppel

When a court "pierces the corporate veil" it:

holds shareholders personally liable for corporate debts

Filing for bankruptcy under chapter 13 of the bankruptcy code results in ____ of debts

reorganization

According the UCC's statute of frauds all:

sale of goods worth more than 500 dollars must be in writing

Len agrees to sell doug propetty. Len later refuses to convey the land, doug may sue for:

specific performance

A 16 year old goes to a used car dealership and pays 2,000 to buy it off the low

• 16 year old can bring car back and demand money back bc he is a minor

1. In a breach of contract case, compensatory damages are damages that:

• Allow the party suffering to recover costs incurred by replying on the promise of the other party

An offer that has unclear major terms, or is missing important terms

• Cannot be the basis for a contract

Article 2 of the UCC covers the sale of:

• Investment secuirites

Contract law is primarily

• State common law

A drawback of sole proprietorships and partnerships is that the parties involved have:

• Unlimited liability