Legal final

Question 1

Respect enterprise employs Quinn to buy something. He buys some and sells for profit. This is a breached duty of what?

Answer 1

Loyalty

Question 2

Agent under a written agreement that describes the rights and duties of both parties. This is what type of authority?

Answer 2

Express

Question 3

Amber is a lighting technician who hires out on her project basis to film a television production company. In this capacity, Amber is most likely is what?

Answer 3

independent contractor

Question 4

Jill introduces Kelley to her friend as, “my associate.” Kelley reports to act as Jill’s agent in several business transactions with those friends. If Jill is liable for Kelley’s actions, it will be under what type of doctrine?

Answer 4

Doctrine of Estoppel

Question 5

Mona is an agent for nationwide restaurant corporation, and as an agent, she follows all of NRC’s instruction. This responsibility arises under the agent’s duty of what?

Answer 5

Duty of Obedience

Question 6

Ellen, an agent for First Credit Corporation, enters into an unauthorized contract with Great Expectations Inc. reportedly on FC’s behalf. This contract is enforceable if ratified by?

Answer 6

First Credit Corporation (FC)

Question 7

Ozzy is an officer of Prudent Financial Corporation. With respect to binding PFC’s contracts, Ozzy is

Answer 7

An agent and has the authority

Question 8

Without authorization, Ralph contracts on behalf of Saari to have Teej paint the interior and exterior of Saari’s house. Saari ratifies the contract, and later, Saari tries to rescind the contract relating to the exterior. This attempt will be what?

Answer 8

Totally unsuccessful

Question 9

Katie, an agent for Lebron, enters into a contract on Lebron’s behalf with Maj for the sell of land. Katie’s authority to enter this contract is not in writing, and under the equal dignity rule, this contract is?

Answer 9

Unenforceable (because not in writing)

Question 10

Based on Poppy’s conduct, Odell believes Poppy has the authority to act on Nan’s behalf even though Poppy has no authority to do so. Under this circumstance, Poppy has what?

Answer 10

No authority

Question 11

Jock hires Kim to act as an agent to purchase Lifetime Gym and Fitness Inc. Jock tells Kim to reveal that she is buying the firm on behalf of a third party and to tell Lifetime’s seller who that third party is. Jock is?

Answer 11

Disclosed Principle

Question 12

Nora is an executive for Omega Corporation, and when acting for Omega is a business situation, Nora is?

Answer 12

Agent Only

Question 13

Joyce works for Capa Services Corporations as an independent contractor if what?

Answer 13

Capa does not control Joyce’s work

Question 14

Hugh is an agent for Industrial Solvents Inc. He owes that company the duty of what?

Answer 14

Loyalty

Question 15

Tad, an agent for United Financial Corporation, executes an unauthorized contract with Variety Sales Inc. that is highly advantageous to United. Variety does not withdraw from the deal, and United ratifies the contract. The contract is?

Answer 15

Valid

Question 16

Cody is a partner in Delta Accounting Service. Cody can inspect what?

Answer 16

All of Delta’s books and records

Question 17

Faben and Tyler agree while talking on the phone to form a partnership. Their partnership agreement is legally binding if?

Answer 17

Without anything more

Question 18

Danny is considering forms of business organization for her Financial Advisory Firm. Like most states, Danny’s state requires that to form a limited liability company (L.L.C.) she must file with a state agency what?

Answer 18

Articles of Organization

Question 19

Pat and Quinn sign a five year partnership agreement to do business as Pat’s Landscaping Service. At the end of the fifth year, they decide to continue without specifying a new term. This partnership is terminable when?

Answer 19

At any time be either partner

Question 20

Fae is a member of Garden Grove’s L.L.C. Like other member’s of limited liability companys, Fae’s liability for regarding gross obligations resembles the liability of what?

Answer 20

Shareholder of a corporation

Question 21

Serious Gamers L.L.C. is a limited liability company. Among the members, a dispute arises that their operating agreement does not cover. No statute applies; the dispute is governed by the principles of?

Answer 21

partnership law

Question 22

Bernie wants to go into the business of construction contracting. Among the reasons that would probably convince Bernie to set up his business as a sole proprietorship would be?

Answer 22

Greater Flexibility

Question 23

Crystal is a member of Laboratory C.S.I. Services L.L.C., a member-managed limited liability company. Crystal can participate in the firm’s management when?

Answer 23

To any extent

Question 24

Jim organized and owns and operates Jim’s Planting Service. In the simplest form of business organization, this is what?

Answer 24

sole proprietorship

Question 25

Sustainable Cafe L.L.C. is a limited liability company. Like any other L.L.C., unless Sustainable Cafe chooses otherwise, the firm will be taxed as what?

Answer 25

Partnership

Question 26

Flip is a member of Great States Trucking L.L.C. Flip's relationship to Great States end, but the firms continues to do business. This is what?

Answer 26

Dissociation

Question 27

Coco is considering forms of business organization for her concession business, Coco's Cupcakes. Most states require a limited liability company have what?

Answer 27

At least one member

Question 28

Boe and Clansy decide to do business as marketing and promotion services. To be a partnership, this association can result from an agreement that is what?

Answer 28

Oral, Written, or Implied by conduct

Question 29

The shares of Capital Corporation are.....

Answer 29

Publicly held corporation (because they are publicly traded in security's market)

Question 30

Nina is a director of Omega Inc. Under the standard of due care owed by directors of a corporation, Nina's decisions must be what?

Answer 30

informed and reasonable

Question 31

Freida and Gregor want to market a new line of fishing gear. To avoid income taxes at the corporate level, they should form what?

Answer 31

S corporation

Question 32

Convenience Mart Inc. is a closely held corporation. Convenience Mart is what?

Answer 32

Generally allowed to restrict the transfer of its stock

Question 33

Raafi, a director of Super Service Station Corporation, does not attend a board meeting for three years. During that time, Twyla, Super's President, makes improper loans that cost the company $100,000. Raafi is most likely what?

Answer 33

Liable for negligence and mismanagement

Question 34

Luke is a director of Motor Parts Corporation; Luke makes decisions with respect to Motor Parts in good faith, in what he believes is the firm's best interest, and without violating any duties owed to it. If despite these circumstances, Luke exercises poor business judgement under the poor business judgement rule, Luke is what?

Answer 34

Immune from liability

Question 35

Denise, Urban, and Flem, occupy the positions of directors on the board at Gallery Corporation. As directors, they may not what?

Answer 35

Support businesses that directly compete with Gallery

Question 36

Thor Power Products Corporation permits its directors to be elected by cumulative voting. This what?

Answer 36

Allows minority shareholders to be represented on the board

Question 37

Brad is a shareholder of Concert Promotion Corporation. As the shareholder, Brad can do what?

Answer 37

Vote to amend the articles of the corporation or bylaws

Question 38

Odell, Prince, and Quinn, are shareholders of Write Corporation. Before a shareholder's meeting, they agree in writing to vote their shares together in a certain manner. Usually such agreements are held to be what?

Answer 38

valid and enforceable

Question 39

Lubby is a shareholder of Matchless corporation with preemptive rights. With these rights, Lubby can do what?

Answer 39

Buy a prorated share of a new issue of stock before other buyers

Question 40

Ida, Jersey, and Kit are directors of Liberty Convenience Stores Inc., Liberty has 9 officers and 46 shareholders. Dividends are ordered by the firms what?

Answer 40

Board of Directors

Question 41

Natalie is a shareholder of Off road Vehicle Company. As a shareholder, Natalie does not have what?

Answer 41

Right to compensation

Question 42

Rusty and Sylvia are shareholders of Triad Hotel Corporation. Triad's director's failed to declare a dividend. Rusty and Sylvia could succeed in asking a court to order the directors to meet and declare a dividend if what?

Answer 42

If withholding a dividend is an abuse of the director's discretion

Question 43

Startup Corporations substantially complies with all conditions precedent to a corporation. Startup has what?

Answer 43

De Jure Existence

Question 44

The bylaws of corporations...?

Answer 44

Are adopted at its first organizational meeting

Question 45

Inez and Jason are the shareholders and directors of Clean Custodial Corporation. Lilly and Moe are Clean's officers. As another corporation, the responsibility for overall management of Clean rests with who?

Answer 45

Board of Directors

Question 46

Sylvia is an officer of Triad Hotel Company. As an officer, with respect to the company, Sylvia is what?

Answer 46

A fiduciary

Question 47

Financial Innovations Inc. issues bonds, which are also known as what?

Answer 47

Debt securities

Question 48

Lexie and Mort act as the incorporators for New Game Corporation. After the first board of directors is chosen, subsequent directors are elected by a vote of New Game's who?

Answer 48

Shareholders