business law final

Which of the following types of agreements according to the Statute of Frauds need to be in writing?

An agreement containing a promise in consideration of marriage

The officers of a corporation:

Are the agents of the corporation.

Which of the following best describes a proxy?

A person authorized to vote for another

As fiduciaries of the corporation, directors incur liability for losses when they are caused by bad faith.

True

Once the directors of a corporation declare a cash dividend, it cannot later be rescinded

True

When a partnership is dissolved, its assets are first paid to:

Creditors to pay partnership debts.

The Water Pollution and Control Act is responsible for preventing the illegal discharge of pollutants into interstate and navigable waters.

True

The board of directors is the primary policy-making body of the corporation

True

A corporation that is incorporated in another country is known as a(n) _____.

alien corporation

Which of the following is true of dividends paid to shareholders?

Dividends can be paid with stock a corporation owns in another company.

An antitrust violation occurs when a business firm seeks to have cooperation within its firm to diminish competition.

False

An offer made in jest that does not appear to be seriously intended to an offeree is considered a valid offer.

False

One who contracts with an independent contractor has more control over the performance of the work than does an employer.

False

Performing or promising to perform what one is already obligated to do is a valid consideration.

False

Stockholders, by virtue of their investment in a corporation, have the right to act as its agent.

False

The sale of food or drink, to be consumed off the seller's premises, is not a sale.

False

To recover damages for an intentional tort, the plaintiff is required to prove that there was a breach of duty by the tortfeasor to the plaintiff

False

Which of the following best describes a prospectus?

It is a document containing specified information about a stock offering and the corporation.

Which of the following is true of a corporation?

It is an artificial being, existing only in contemplation of law.

Which of the following is true of a binding contract?

It is created when an offeree accepts an offer that has been properly communicated.

Which of the following best describes a share?

It is the unit value of a company's total stock

Which of the following is true of undue influence?

It refers to a person in a special relationship causing another's action contrary to free will

Which of the following is true of the doctrine of promissory estoppel?

It requires the promisor to reasonably expect the promise to induce action by the promisee.

An offeree's response that rejects an offer by varying its terms is known as a(n) _____.

counteroffer

To recover for a tort based on negligence, the plaintiff must show:

the breach of the tortfeasor's duty to the injured party

The principal may terminate the agency by taking actions that are inconsistent with the continuation of the agency.

True

Which of the following is true of contracts that limit the freedom of marriage?

An agreement not to marry during minority is valid

Which of the following is most likely to be a tort based on negligence?

Automobile accidents

Which of the following is likely to be governed under the Title VII of the Civil Rights Act of 1964?

Dan refusing to hire Ann on the grounds of sex

A deceased employee's family cannot recover damages for death which occurred during the course of employment

False

A merger occurs when two corporations combine to form a new corporation.

False

A person may obtain shares of stock by subscription only after a corporation is organized

False

A sole proprietor has very limited flexibility in managing the business.

False

If a merchant displays a coat at a particular price, he has a binding requirement to sell at that price.

False

The default tax classification of a limited liability company having two or more members, is that of a sole proprietorship.

False

Certificates called shares of stock represent ownership in a stock corporation.

True

Contracts made by people who were intoxicated to such an extent that they would not have entered into it if they were sober, makes the contract voidable.

True

The location where a case is to be tried is known as a venue.

True

The _____ consists of ten amendments to the U.S. constitution specifically designed to protect the civil rights and liberties of citizens and the states.

​Bill of Rights

Which of the following is true of a contract between two minors?

​Each minor has the right to avoid the contract.

Which of the following is true of the United States Supreme Court?

​It has appellate jurisdiction in cases based on the U.S. Constitution

Which of the following is an example of a contract contrary to public policy?

A agrees to appoint B as sheriff, provided he helps him win the local elections

What precaution can a business person take when contracting with a minor?

A business person can require an adult to join the contract as a cosigner.

Which of the following constitutes valid consideration?

A promise to refrain from doing an act that can be lawfully done

Jack, as a disclosed agent for Mike, purchases two tons of wheat on credit from Bryan. According to the agency contract, Jack is entitled to make such purchases under Mike's name. However, Mike refuses to make payment. Which of the following is true?

Bryan can sue Mike for damages.

ANZ Inc., a cement manufacturer, releases hazardous chemicals into the atmosphere and also into nearby streams. The pollutants released into the atmosphere exceed acceptable levels and the company is facing a suit from the residents of nearby towns. Under which of the following acts can the company be sued?

Clean Air Act

Which of the following is true of a quorum?

Statutes, bylaws, or the articles of incorporation ordinarily require a majority of outstanding stock to constitute a quorum.

A contract not to compete is valid in which of the following instances?

The buyer of a business prohibiting the seller from engaging in the same business in a certain town

Which of the following is an advantage of a written contract over an oral one?

The existence of a contract cannot be denied if it is in writing.

Which of the following best describes whistleblowers?

They are people who expose wrongdoing in an organization.

Which of the following is true of state trial courts?

They handle cases that are first instituted in them

A hostile work environment exists when harassing conduct alters the terms or conditions of employment.

True

A publicly traded corporation is required to follow the regulations as set forth in the Securities Exchange Act of 1934.

True

According to the Statute of Frauds, an agreement to sell goods for $500 or more must be in writing.

True

Which of the following is a duty of an employer towards an employee?

​The employer must provide a reasonably safe place to work.

South Carolina is part of the Fourth Federal Judicial Circuit.

True

Allen enters into a contract with Joe to sell his car. However by mistake, he undervalues his car. Though the actual value of the car is $6000, he sells it to Joe for $3000. During the purchase, Joe is aware of the actual value but does not communicate this fact to Allen. Which of the following is likely to be true in such a scenario?

​Joe is entitled to keep the car because the contract is valid.

In which of the following situationsdoes The Family and Medical Leave Act allow an employee to take an unpaid leave of up to twelve workweeks in a twelve-month period?

In cases of sickness or a serious health condition of an employee's spouse

Brothers Inc., a partnership, consisted of three partners Jessie, Mark, and Jake. However, Jessie was declared bankrupt at a time the company suffered considerable losses. Which of the following is likely to be true?

Jessie's unlimited liability is destroyed