Deck 1: Midterm One

Question 1

General partnerships must have a written partnership agreement.

Answer 1

False

Question 2

A living will allows for the health care proxy to commit euthanasia.

Answer 2

False

Question 3

A nonlawyer may not be appointed to be someone's attorney-in-fact.

Answer 3

False

Question 4

In a partially disclosed agency,the agent is not liable to the third party with whom the agent has transacted business.

Question 5

"I hereby give to my secretary my Krups coffee maker" is a specific gift.

Question 6

Paternity actions are brought to establish who the biological mother of a child is.

Question 7

Attestation is the process where a will put through the legal process in order to distribute the testator's property.

Question 8

Limited partners give up their right to profits in exchange for limited liability.

Question 9

If a bride-to-be breaks her engagement,she generally must return the engagement ring under both the fault rule and the objective rule standards.

Question 10

Spouses can engage in discovery-getting dirt on each other-in no fault divorces.

Question 11

A sole proprietorship protects the owner from unlimited liability.

Question 12

There are no significant differences between a principal-agent and a principal-independent contractor relationship.

Question 13

A partner cannot violate the terms of the partnership agreement and withdraw and dissolve the partnership at any time.

Question 14

A holographic will must be in writing.

Question 15

An annulment is the legal equivalent of saying,"you and your spouse were never married."

Question 16

The only requirement to marriage eligibility is that the parties be at least 18,unless they have their parents' permission.

Question 17

A person may not be both a general partner and a limited partner in the same limited partnership.

Question 18

The party who agrees to act on behalf of another is called the principal.

Question 19

In an agency by ratification,the principal approves of,or agrees to be bound by,the agent's unauthorized act.

Question 20

Lineal descendants share equally when without degree of relationship when the distribution is made per stirpes.

Question 21

A patent is granted for useful inventions.

Question 22

The mortgagee is the home buyer and the mortgagor is the bank.

Question 23

The 1934 Securities Exchange Act regulates the conduct of brokerage companies,but not publicly traded companies.

Question 24

If a mortgage is not recorded,the creditor is still protected,at least as it concerns the debtor's obligation to pay.

Question 25

The Truth-In-Lending Act requires that consumers be told whether they can afford the debt they are considering incurring.

Question 26

The federal securities laws came about after the stock market crash.

Question 27

A greeting card can be copyrighted.

Question 28

Trademark protection lasts for renewable 10-year terms.

Question 29

The Securities and Exchange Commission is an example of specific government regulation.

Question 30

The Federal Trade Commission regulates the labeling of consumer goods.

Question 31

A plaintiff in a copyright infringement suit can win an order ordering the infringing material to be destroyed.

Question 32

Article 2 of the UCC governs secured transactions in personal property.

Question 33

For purposes of the SEC's rules,an insider includes an employee at any level of the company.

Question 34

A Visa card is an example of unsecured credit.

Question 35

The SEC has the power to prohibit the issuance of a security because the registration statement is insufficient.

Question 36

The owner of a trade secret is obligated to take all reasonable precautions to prevent those secrets from being discovered by others.

Question 37

Financing statements,having been filed,perfect the creditor's security interest.

Question 38

A manufacturing facility is an example of a stationary source of air pollution.

Question 39

If an investor owns shares in Microsoft,for instance,he or she does not have to register with the SEC before reselling those shares.

Question 40

The FDA allows for some contamination of foods sold the American public.

Question 41

The most dominant form of business organization in America is the:

A)Partnership.
B)Proprietorship.
C)Limited Partnership.
D)Corporation.

Question 42

The partners in a limited liability partnership are liable for the debts of the LLP:

A)Beyond their investment.
B)Not beyond their investment.
C)Both of the above.
D)None of the above.

Question 43

If a testator's will leaves his red Ferrari to his butler and his yellow Ferrari to his maid,and at the time of his death,the yellow Ferrari was sold,the following doctrine applies:

A)Abatement.
B)Ademption.
C)Recrimination.
D)Bequestability.

Question 44

"If my niece has predeceased me,then I give my double-barrel shotgun to my nephew" is what type of gift?

A)Residuary.
B)Specific.
C)Barbaric.
D)General.

Question 45

The FedEx delivery person gets in an accident while delivering a package.Who is liable?

A)The delivery person.
B)FedEx.
C)Both of the above.
D)None of the above.

Question 46

A child who voluntarily leaves their parents and then lives on their own is:

A)An idiot.
B)Paroled.
C)Emancipated.
D)Allowed to vote,but not drink and smoke.

Question 47

Under the objective rule,following the breakup of the engagement,the groom-to-be gets the engagement ring back:

A)If the darn thing is under a carrot.
B)Never.
C)If the bride is at fault for the breakup.
D)Always.

Question 48

The parent who has legal custody of a child has:

A)The right to make day-to-day decisions concerning the child's matters.
B)The physical custody of the child as well,generally.
C)Both of the above.
D)None of the above.

Question 49

The document that in great detail governs the internal management structure of the corporation is called the:

A)Articles of Incorporation.
B)Executive compensation agreement.
C)Meeting minutes.
D)Bylaws.

Question 50

A limited liability company is most like the following organizations:

A)A sole proprietorship.
B)A general partnership.
C)A limited liability partnership.
D)A corporation.

Question 51

An employee in a factory who is injured by his or her employer's negligence can sue:

A)No one.
B)The employer.
C)Him- or herself.
D)The worker's compensation board.

Question 52

All of the following are required for an adoption to take place except:

A)The biological parents and adoptive parents personally meet each other.
B)All procedures of the state law for adoption are met.
C)The biological parents' legal rights as parents are terminated by legal decree or death.
D)A court formally approves the adoption.

Question 53

Which of the following is not a characteristic of a corporation?

A)Limited liability of shareholders.
B)Perpetual existence.
C)Pass-through taxation.
D)Centralized management.

Question 54

The "coming and going" rule says that principals are generally not liable for injuries caused by their agents and employees:

A)On their way to the bathroom.
B)On their way to a business meeting.
C)On their way to a business lunch.
D)On their way to work.

Question 55

Title VII prohibits employment discrimination in the following:

A)Decisions regarding promotion or demotion.
B)Compensation.
C)None of the above.
D)Both of the above.

Question 56

The type of trust that is created in someone's will is a:

A)Testamentary trust.
B)Inter vivos trust.
C)Implied trust.
D)Causa mortis trust.

Question 57

All of the following are exceptions to the rule that a principal is not liable for the independent contractor's torts except:

A)Nondelegable duties.
B)Special risks.
C)Negligence per se.
D)Negligence in the selection of an independent contractor.

Question 58

The following type of property is considered community property:

A)Money placed in pension funds.
B)The value of a business owned by one of the spouses.
C)None of the above.
D)Both of the above.

Question 59

The following is not required to make a will:

A)Testamentary capacity.
B)Writing.
C)Self-proving clause.
D)Testator's signature.

Question 60

Intestate succession involves looking for:

A)Intestate property.
B)Heirs.
C)Estate property.
D)Escheat.

Question 61

The following is an example of exempt property of the bankruptcy estate:

A)College loans.
B)A high definition television.
C)A 2 carat engagement ring.
D)Alimony.

Question 62

During which period of the registration process may an issuer sell the offered securities?

A)The prefiling period.
B)The waiting period.
C)The posteffective period.
D)The medieval period.

Question 63

A trademark is granted to :

A)A useful invention.
B)A symbol used to signify a product.
C)None of the above.
D)Both of the above.

Question 64

All of the following types of assets are securities except:

A)Mineral rights.
B)Debentures.
C)Houses.
D)Stocks.

Question 65

The following type of activity would not be stealing a trade secret:

A)Reverse engineering.
B)Theft.
C)Bribery.
D)Learning the secret while working for the company.

Question 66

To qualify as a patent,an invention must be all of the following except:

A)Useful.
B)Novel.
C)Valuable.
D)Nonobvious.

Question 67

Insider trading can be committed by:

A)The CEO of a publicly traded company.
B)The temporary employee of a publicly traded company.
C)Both of the above.
D)None of the above.

Question 68

The Fair-Use doctrine protects the use of the following:

A)Using someone's movie as the basis for a television show.
B)Using someone's television show as the basis for a parody.
C)Using someone's photograph in a picture book without permission.
D)Using someone's statue in an art show.

Question 69

The Truth-In-Lending Act applies to:

A)Commercial credit.
B)Consumer credit.
C)Both of the above.
D)None of the above.

Question 70

The following types of works are eligible for copyright protection:

A)Dance routines.
B)Photographs.
C)None of the above.
D)Both of the above.

Question 71

A loans B money,and C promises to pay the loan if B defaults.C is a:

A)Surety.
B)Guarantor.
C)Cosigner.
D)Fool.

Question 72

States with air pollution problems that fail to develop or implement an approved plan for dealing with nonattainment areas are subject to the following sanctions:

A)Loss of federal highway funds.
B)Limitations on new sources of emissions.
C)Both of the above.
D)None of the above.

Question 73

The type of bankruptcy that is also called straight bankruptcy is Chapter:

A)7)
B)9)
C)11.
D)13.

Question 74

Who brings criminal actions against those charged with willfully violating the Securities Act of 1933?

A)The Securities and Exchange Commission.
B)The Justice Department.
C)The Federal Securities Laws Enforcement Department.
D)The National Department of Securities Violators.

Question 75

A short-swing profit (the buying and selling of securities by a statutory insider)concerns the following time period:

A)Less than one year.
B)More than two weeks.
C)The life span of a television series on UPN.
D)Within six months.

Question 76

The following type of debt is discharged in Chapter 13,but not in Chapter 7:

A)Alimony.
B)Debts incurred through fraud.
C)Child Support.
D)None of the above.

Question 77

In a Chapter 7 bankruptcy,the highest priority claim is a:

A)Debt owed for child support.
B)Tax obligations.
C)Wages earned by the debtor's employees.
D)Secured creditors.

Question 78

Which of the following products does not need to be approved by the FDA before being sold to the public?

A)Antidepressants.
B)Cosmetics.
C)Steroids.
D)Vitamins.

Question 79

The Consumer Product Safety Commission is empowered to:

A)Conduct research on the safety of consumer products.
B)Tell the public which toys they should buy.
C)Warn the public that some clothing doesn't fit well.
D)Compare the flavor quality of competing sodas.

Question 80

Caveat emptor means:

A)Let the seller beware.
B)Let the buyer beware.
C)Don't forget to brush.
D)Empty the cave.