1. Libel is oral defamation while slander is written.
a. Trueb. False
2. The majority of tort cases in the United States are ________________cases.
a. Intentional tortb. Negligencec. Nuisanced. Strict liability
1. An assignee “steps into the shoes” of the assignor and acquires only the rights that the assignor had.
a. Trueb. False
2. To whom can a thief pass good title to stolen goods?
a. Any purchaser or donee that does not have reason to know that the goods are stolen.
b. Any good faith purchaser for valuec. Any buyer in the ordinary course of business
d. A thief can pass good title to no one.
1. If a buyer rejects non-conforming goods, he can recover the cost of inspection from the seller.
a. Trueb. False
2. Which of the following warranties forms part of the bargained-for-exchange in the contract?
a. Express warrantiesb. Warranties of Titlec. Implied warranties of fitness for a particular purposed. Implied warranties of merchantability.
1. To collect state unemployment insurance, a worker must be actively seeking a replacement job that is appropriate for someone with his skills, education and work history.
a. Trueb. False
2. To be subject to the Age Discrimination in Employment Act, an employer must
a. Be engaged in interstate commerce and have at least 20 employees.
b. Be engaged in interstate commerce and have at least 40 employees
c. Be engaged in either intrastate or interstate commerce and have at least 40 employees.
d. Be organized as a corporation or limited liability company and have at least 40 employees.
1.Partnership agreements often fund the purchase of a deceased partners’
partnership interests with
a. Life insurance policiesb. Distribution of retained earningsc. Levies on partnership interests
d. Partner advances
2. State laws regulating the sale of securities within the state are called red herring laws.
a. True b. False
1. Which of the following statements about corporate bonds is true?
a. Bond holders are creditors of the corporationb. Bond holders have the right to vote for directorsc. Bonds pay a stated rate of interest.
d. A and Be. A and C
2. In a limited partnership, a general partner’s fiduciary duty is breached when limited partners are not permitted to participate in management.
a. Trueb. False
1. All of the following could accurately be described as factors that motivated the government regulation of securities, except:
a. To provide information to potential purchasers and the investing public.
b. To deter the investing public from investing in large corporations.
c. To require disclosures of information to be made by corporations to the public.
d. To deter those with inside knowledge about a corporation from taking advantage of those without that knowledge.
2. A bank must use ordinary care in performing collection operations when it receives a check for collection.
1. A negotiable instrument must contain a ____________ to pay.
2. A person who leaves a blank space on an instrument bears the risk of wrongful completion.
1. Payment usually discharges a party’s liability for an instrument.
2. The capacity in which a person signs commercial paper is usually obvious because of the __________ of the signature.
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