Quiz 23-30 Flashcards Preview

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Flashcards in Quiz 23-30 Deck (27)
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1
Q

Title warranties can be disclaimed…2

A

1 Only by specific language

2 which clearly indicates to buyer that there is disclaimer of
warranty title

2
Q

In order to have a contract 4 elements must be present

A

1 agreement
2 consideration
3 legal purpose
4 competent parties

3
Q

According to the statute of frauds, a transfer of an interest in land…

A

Must generally be in writing

4
Q

Under the statute of frauds, in a contract to sell land, and only one party puts their intentions in writing. The contract would…

A

Only be enforceable against the party that put their intentions in
writing

5
Q

Under the statute of frauds, in a contract to sell land, and only one party puts their intentions in writing. Oral acceptance by the buyer is…2

A

1 Only enforceable if buyer takes possession and/or

2 makes value able improvements on the land

6
Q

Are multiple members allowed in an S-Corp?

A

No

7
Q

A party with a collateralized negotiable promissory note, which had 2 prior endorsers, releases the collateral, what affect will releasing collateral have on the negotiable promissory note?

A

Party will not be able to receive payment from prior endorsers if
maker defaults

8
Q

A party with a collateralized negotiable promissory note, which had 2 prior endorsers, releases the collateral, what are the endorsers known as?

A

Future holders

9
Q

A party with a collateralized negotiable promissory note, which had 2 prior endorsers, releases the collateral. The future holders (endorsers)…

A

Relied on the existence of the maker’s collateral, so they can’t be
Held liable for nonpayment of maker

10
Q

Under Rule 505, Regulation D, the SEC…

A

SEC must be notified within 15 days of first sale of offering

11
Q

Under Rule 505, Regulation D, the sale can be made to…

A

An unlimited number of accredited investors

12
Q

Under Rule 505, Regulation D, general solicitation…

A

Is not permitted

13
Q

Under Rule 505, Regulation D, only if investor is nonaccredited they must…

A

Be provided a prospectus

14
Q

A holder in due course is a person who has…3

A

1 acquired a negotiable instrument for value

2 in good faith

3 without notice that debtor may have defenses to payment

15
Q

UCC states a seller that is a merchant regularly dealing in goods of the kind warrants that…

A

Goods shall be delivered free of rightful claim of any third person
By way of infringement

16
Q

When a contract contains a contingent clause that buyer will not be obligated to purchase the property if it is not rezoned to commercial zoning classification by the specified date.

A

If it is not rezoned by the specified date and buyer refuses to buy
Property, there is no breach of contract

17
Q

Under both common law and statute law, every partner has the right to…

A

Inspect the books of the partnership

18
Q

According to the Revised Uniform Partnership Act, a partnership shall provide access to its books and records to…3

A

1 partners and their agents

2 attorneys

3 includes inactive partners

19
Q

Securities from insurance companies are…

A

Regulated by the ‘33 Act

20
Q

Securities issued by savings and loans and similar financial institutions are…

A

Exempt from regulation of the ‘33 act

21
Q

When a party merely signs their name on the back of a check, that has the effect of…

A

Converting the paper into a bearer instrument

22
Q

When a party merely signs their name on the back of a check and puts the words without recourse under their name…

A

Does not change the bearer quality of his endorsement

23
Q

If an individual takes possession of the paper, the legal implication of without recourse endorsement is…

A

Limited to that endorser avoiding contractual liability on the paper

24
Q

Avoiding contractual liability, from endorser writing “without recourse”

A

Endorser won’t pay if earlier parties on the instrument will not pay

25
Q

Since the paper is bearer paper, negotiation may be completed…

A

By mere delivery

26
Q

A qualified endorsement (“without recourse”) does not…

A

Does not render the instrument nonnegotiable

27
Q

Under the UCC, even if a sale is made with a disclaimer of any and all warranties, the seller…

A

Still makes implied warranties relative to title

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