BUS110 Final Exam (Module 9-16) (Remotely Proctored) Attempt Score 192 out of 200 Question 1 4 / 4 pts Bill purchased a plot of land for which the deed sta... [Show More] tes that the grantor transfers the property "to grantee and his or her heirs". This would have the legal effect of creating a(n) _____. fee simple absolute leasehold estate accession fixture fee simple defeasible Question 2 4 / 4 pts The western states of the U.S. have adopted the riparian rights theory to deal with a landowner's rights to water. False True Correct! Correct! Question 3 4 / 4 pts Possession by one co-tenant is deemed permissive as either or all are legally entitled to possession. True False Question 4 4 / 4 pts The tenant of a cooperative does not own a particular unit, but, rather, a share in the entire building. True False Question 5 4 / 4 pts A tenant cannot transfer his/her leasehold interest in order to make money on the leasehold itself. False True Question 6 4 / 4 pts Which of the following is a characteristic of periodic tenancy? No periodic tenancy may last longer than from year to year. It is sometimes called a tenancy for years. It can be ended only by a notice of termination by the landlord. No prior notice needs to be given for the termination of the tenancy. The tenant cannot be ejected without his consent. Question 7 4 / 4 pts Jacob's will stated that $100,000 each would be given to his wife, Melisa, and two children, Tim and Ben. But upon his death, it was found that his estate was worth only $240,750. Hence, the bequests to his wife and two children are said to have _____, and each would only get $80,250. abated devised exempted converted executed Question 8 4 / 4 pts Which of the following would be considered an ordinary receipt under the Uniform Principal and Income Act (UPIA)? Rent payments received Stock dividends Revenue from sale of trust assets Proceeds from insurance on assets All income accrued at the testator's death Question 9 4 / 4 pts Which of the following is one of the main characteristics of a whole-life insurance policy? It provides insurance protection over one's entire lifetime. It furnishes protection for a limited number of years. Nothing is paid in case of survival. It terminates with no maturity value. The face amount of the policy is payable only if the insured's death occurs during the stipulated term. Question 10 4 / 4 pts James, a landlord, was negligent in repairing the broken step. Lily, the tenant, tripped and broke her ankle. She sued James for his negligence and demanded a sum of $3,457.82. Which of the following types of insurance would have covered the risk for James? Homeowner's insurance Property insurance Disability insurance Health insurance Liability insurance Question 11 4 / 4 pts Which of the following is true of general agents? They can alter the principal's legal relationships with third parties. They are appointed for business purposes but not personal purposes. They cannot appoint subagents to carry out the principal's business. They are also known as independent contractors. They have authority to act only in a specifically designated instance. Question 12 4 / 4 pts Garry hired Draco, who is a realtor, to help him buy a house. Draco has rights to speak to Ron, the realtor of a house that Garry wants to buy, on Garry's behalf. He may discuss prices that Garry is willing to pay for the house, but does not have the right to close the sale by himself. It can be said that Draco is a(n) _____. servant term agent subagent special agent independent contractor Question 13 4 / 4 pts A principal can be held responsible for an agent whose authority has previously been terminated if the principal does not make the termination known to the parties who previously did business with the agent. This is known as _____ authority. lingering express implied master-servant inter vivos Question 14 4 / 4 pts According to the doctrine of _____, a person will not be allowed to deny a promise or assertion he/she previously made where there has been detrimental reliance on that promise or assertion. employment-at-will shop rights ultra vires respondeat superior estoppel Question 15 0 / 4 pts If partners have no partnership, their relations are governed by the UPA or its derivatives. True False Question 16 4 / 4 pts Partnership law permits an investor to put capital into a general partnership and realize tax benefits without liability for the acts of the other partners. False True Question 17 0 / 4 pts Able, Baker, and Carr run an auto-repair business as partners. Carr, needing a little extra income, begins to repair some customer's cars on weekends in his home garage. Able and Baker have no right to any interest in this activity. True False Question 18 4 / 4 pts After the partnership's creditors are satisfied, each partner is entitled to reimbursement of his or her capital contribution when the business is terminated. True False Question 19 4 / 4 pts The original source of limited partnership law is the _____ that was drafted in 1916. Uniform Limited Partnership Act (ULPA) Revised Uniform Limited Partnership Act National Conference of Commissioners on Uniform Laws Companies Act Limited Liability Partnership Act Question 20 4 / 4 pts The down-side to hybrid business forms is mostly They tend to encourage moral hazard. They "escape" double taxation of business income. It is usually easy to divest oneself of interest in the firm. They are deceptively easy to create: like a partnership, they can be created by mistake. They require centralized management, like a corporation. Question 21 0 / 4 pts The Citizens United case struck down some federal statutory limits on corporate electioneering communications. True False Question 22 4 / 4 pts A corporate veil could be pierced in which of the following circumstances? The corporation is inadequately financed. When the corporate acts like a closely held corporation. When the corporation fails to have more than 100 shareholders. When the publicly held corporation provides free transferability of shares. When a corporation does not have a single uniform class of stock. Question 23 4 / 4 pts The term _____ describes the sum of the par value of the issued par value stock and the consideration received (or stated value) for the no-par stock stated capital venture capital authorized capital preference capital bond capital Question 24 4 / 4 pts Willa holds 1,000 preferred shares of Fun Games Inc. Hence, she would have a right to: receive the assets of the company on liquidation prior to the common stockholders. express her ownership interest in the corporation by voting. receive interest over her investment prior to its distribution to the bondholders. ratable participation in the earnings of the corporation. ratable participation in the distribution of net assets of Fun Games Inc. on liquidation. Question 25 4 / 4 pts _____ is a shareholder voting method that permits the holder to distribute his or her total votes in any manner that he or she chooses-all for one candidate or several shares for different candidates. Cumulative voting Deprivation voting Divestiture voting Derivative action Proxy voting Question 26 4 / 4 pts G&C Inc. has outstanding 10,000 shares with par value of ten dollars and Tiffany owns 5,000 of those shares. At the annual meeting, the shareholders decide to issue an additional 10,000 shares at par and to sell them to Sharon. Tiffany vehemently objects in order to protect dilution of her percentage of share ownership. Tiffany is exercising her _____ in this scenario. preemptive rights cumulative voting rights abatement rights proxy rights divestiture rights Question 27 0 / 4 pts In Reves v. Ernst and Young, the accounting firm had allegedly inflated the assets of a bankrupt cooperative that plaintiffs had invested in. The Court said that Ernst & Young should be exonerated because the "shares" were not securities Ernst and Young had no secondary liability for aiding and abetting The plaintiffs' shares could be deemed "securities" within the meaning of the federal securities acts. b and c Question 29 4 / 4 pts Ending the legal existence of a corporation by unanimous written consent of its shareholders is known as _____. a and b Question 28 4 / 4 pts Dino, a director of LetsGo Inc., purchases 100 shares of the company at $100 per share on 5 January 2011 and sells them on 15 February at $110 per share. Because the shares were bought and sold within a sixmonth period, Dino will have to return the $1,000 profit to the company under the _____ rule. th th res judicata profit preemptive profit short-swing profit proxy solicitation profit ultra vires profit 5/22/2020 Final Exam (Module 9-16) (Remotely Proctored): BUS110-93751 (F2F) Bus Law/Legal Environment voluntary dissolution involuntary dissolution forward vertical integration backward vertical integration amalgamation Question 30 4 / 4 pts Purchasers of corporate assets can avoid successor liability. True False Question 31 4 / 4 pts Under the _____ a seller who deals with two or more retail customers but passes their orders on to a single wholesaler and sells the total quantity to the wholesaler in one transaction, can be held to have violated Section 2 of the Clayton Act. indirect purchaser doctrine parens patriae doctrine Parker immunity doctrine Res judicata doctrine Question 32 4 / 4 pts The owner of B&K Inc., a cookie manufacturing company, entered into an agreement with Edwin, a retailer. According to the agreement, Edwin was not allowed to sell the cookies of B&K at a price lesser than $2 per pack. This is an example of a(n) _____. vertical restraint of trade closed shop agreement open shop agreement horizontal restraint of trade runaway shop agreement Question 33 4 / 4 pts In the _____ Act of 1912, Congress for the first time empowered a federal agency to investigate and deter acts of unfair competition. Federal Trade Commission Federal Protective Service Federal Emergency Management Federal Law Enforcement Training Question 34 4 / 4 pts The _____ is a marketing device through which the consumer responds to the seller only if he or she wishes not to receive the product. negative option open shop closed shop garnishment action usury tool Question 35 4 / 4 pts American labor relations have not be characterized by strife, judicial opposition to unions, and deadly violence, as was history of labor law in Britain. False True Question 36 4 / 4 pts "An employee was fired because he complained to the state environmental agency that his employer was allowing polluted water into the storm drainage system, in violation of environmental laws. If he was an at-will employee, his firing was allowable." True False Question 37 4 / 4 pts Thomas Sumner, a U.S. citizen from Minnesota, was accused of murder while he was in St. Petersburg, Russia. Sumner claimed that only the district court of Minnesota can try him for murder. Russia disagrees. The _____ invalidates Sumner's claim. territorial principle nationality jurisdiction principle blue sky principle stare decisis doctrine res judicata doctrine Question 38 4 / 4 pts What is the significance of the GATT agreement? The effort to implement the nationality jurisdiction principle began with this agreement. The effort to implement abatement policies began with this agreement. The effort to implement the territorial principle began with this agreement. Correct! Correct! The effort to implement free trade began with this agreement. The effort to implement hot cargo clauses began with this agreement. [Show Less]
