CLASS / COURSE: BA365 / Business Law
1. Under which of the following transfers by a tenant of the tenant's rights in a lease can the landlord enforce the lease directly against the transferee of the rights?
C) Both Sublease and Assignment
D) Neither Sublease or Assignment
2. Amy owned a collection of antique swords. Amy agrees to allow Mark to display the swords at his office building at no charge. Mark picks up the swords, places them in the back seat of his car and drives to the building. He stops along the way, parks and locks his car, and goes into a store to buy something. When he returns, someone has broken into the car and stolen all of Amy's swords. Amy sues Mark for the value of the swords. In this situation:
A) Mark is liable; he owed a duty of ordinary care, which he did not meet.
B) Mark is liable; he owed a duty of slight care, which he did not meet.
C) Mark is liable; he is an insurer of Amy's swords.
D) Mark is not liable; he owed a duty of ordinary care, which he met by locking the doors of the car.
E) Mark is liable; he owed a duty of utmost care, which he did not meet.
3. Mark owns a lot where he would like to build a duplex, but the zoning ordinance only allows single-family homes. Mark believes that he should be able to build a duplex because his lot is larger than most in the neighborhood. In addition, Mark's land is worth less if only a single-family home can be built on it. Mark can:
A) apply for a variance that would allow him to build contrary to the zoning regulations.
B) build the structure because it would not impose an undue hardship on the neighborhood and then apply for a special use permit once it was completed.
C) sue the city on the grounds that the ordinance is a private nuisance as it applies to Mark.
D) sue the city on the grounds that the zoning ordinance amounts to a taking because it reduces the value of his land.
4. Which of the following is correct about the World Trade Organization (WTO)?
A) The WTO was created in the 1940s.
B) The WTO adopted a judicial-based dispute resolution system to replace the politically oriented system in place previously.
C) Only a few nations have a representative on the WTO dispute settlement body.
D) China has not been admitted to the WTO.
E) Parties to a dispute have a veto power over any decision reached by the WTO.
5. The standard form fire insurance policy that is required to be used in most states comes from which state?
C) New York
6. Henry purchases an insurance policy under which he pays annual premiums for his entire life, but ending at age 65. If he pays all the premiums then he is covered for his entire life, and can receive a fixed amount of cash monthly for the remainder of his life after age 65. What type of policy is this?
A) Term life
B) Whole life
C) An annuity
D) Indemnity life
E) Universal life
7. What is the difference between an administrator and an executor?
A) Administrators distribute real property and executors distribute personal property.
B) Administrators administer trusts and executors administer wills.
C) Administrators are used for per capita distributions and executors are used for per stirpes distributions.
D) Administrators are appointed by the court and executors are named in the will.
E) Executors are used where the decedent has surviving children under age 18 and administrators are used where the decedent has no surviving children under age 18.
8. Bobby, a 17 year-old half-blind musician, has been playing in a band for 4 years and is now starting to get contracts to play his music at local dinner clubs. He tells his mom and dad that he wants to live on his own. If Bobby is declared emancipated, what responsibilities do his parents have, if any?
A) They would still be responsible for home schooling him.
B) No responsibilities, as Bobby would be emancipated.
C) They would still be legally responsible beyond the age of majority, since he is blind.
D) They would be obligated to provide food, shelter, and clothing.
9. Which of the following actions is consistent with the maximizing profits theory of the social responsibility of business?
A) Raising wages because it is expected to lower employee turnover and long-term overall compensation expenses.
B) Raising wages because it is believed that workers are underpaid relative to the industry average and that employee relations will be improved even though overall compensation expenses will increase.
C) Raising wages to avoid a strike that would cost more than the increased costs of the wage increase.
10. The holder of a life estate can do all of the following with her life estate except:
A) give it away.
B) leave it to someone in her will.
C) sell it.
D) mortgage it.
E) lease it to another.
11. Which of the following is not one of the types of commercial leases commonly used?
A) Triple net lease
B) Gross lease
C) Net lease
D) Double gross lease
E) Double net lease
12. If a tenant transfers all of his rights under a lease to another party, such that the original tenant is still liable on the lease, it is called a(n):
A) restrictive covenant.
D) lease renewal.
E) illegal action.
13. Katrina is walking through a store when she accidentally drops her wallet. Katrina does not know that she has dropped it, so she continues on. Billy finds the wallet and notifies the owner of the store. Going in order from superior to inferior rights, who has the best right to the wallet.
A) Katrina, storeowner, Billy.
B) Katrina, police, storeowner, Billy.
C) Katrina, Billy, storeowner.
D) Katrina, storeowner, police, Billy.
14. Peter runs an auto air conditioning repair shop. Because of the phase-out of the ozone-depleting refrigerants used in older auto air conditioners, auto air conditioning repairers have become subject to numerous new laws and regulations, some of which are costly and burdensome with which to comply. Although it costs him more, Peter decides to follow all the statutes and regulations so long as everyone else does the same. Peter has reached his decision in accordance with:
A) ethical relativism.
C) ethical fundamentalism.
D) Kantian ethics.
E) Rawls's distributive justice theory.
15. The theory of business social responsibility that holds that a business owes duties solely to produce the highest return for its shareholders is:
A) the social audit theory.
B) the corporate citizenship theory.
C) the maximizing profits theory.
D) the moral minimum theory.
E) the stakeholder interest theory.
16. The person who receives the trust corpus after the termination of the trust is the:
A) residual recipient.
B) life beneficiary.
17. In real estate law, the distinguishing feature of a profit is:
A) the right to lease the property and keep the rents.
B) the right of an owner to exclude others from the land.
C) the right to remove something from the property of another.
D) the right to use the land of another.
18. Can the holder of a life estate mortgage his life estate?
A) No, because of the uncertainty over how long the interest will last.
B) Yes, so long as the mortgage term is limited to the length of the life estate.
C) Yes, but only if the holder of the remainder interest or reversion also simultaneously mortgages that interest.
D) No, because a life estate is not real property.
E) Yes, with the only restrictions being those applicable to a mortgage of a fee simple interest.
19. Which of the following applies to the court's approval of an adoption? (More than one answer may be correct.)
A) The court will consider the home environment of the adoptive parents.
B) The decision of the court will be based on the best interest of the parents.
C) The adoptive couple is subject to a probation period once the court approves the adoption.
20. The finder of lost property acquires:
A) rights to use the property until it must be turned over to the state.
B) rights that are good against everyone including the true owner.
C) a life estate in the found property.
D) rights that are good against everyone but the true owner.
E) no rights in the property.
21. If a car insurance policy provides that it will pay the medical expenses of other drivers who are injured through the actions of the insured, the coverage is:
A) no fault.
C) medical payments.
22. Which of the following is not necessary for bailment?
A) Duty to return the property to the owner
B) Actual delivery of possession
C) Personal property
D) Both Actual delivery of possession and personal property
E) Both Duty to return the property to the owner and actual delivery of possession.
23. Karen is going downtown to shop. She pulls her car into a parking lot, stops, pays for and receives a ticket, parks her car, and leaves. Karen keeps her keys and may get her car at any time. Several hours later, when Karen returns, she learns her car has been stolen. Which of the following statements best describes this situation?
A) This is a bailment.
B) This is not a bailment because there was no compensation paid.
C) This is not a bailment because there was no taking of possession by a bailee.
D) This is not a bailment because the bailee had no duty to return the goods.
E) This is not a bailment because there is no personal property.
24. Which of the following is true about the European Union?
A) An EU central bank has been established.
B) Customs tariffs have been eliminated between member nations and nonmember nations.
C) Member nations have not given up any sovereignty to the EU.
D) Its primary purpose is military defense.
E) The EU includes a couple of nations from Northern Africa with European ties.
25. The moral theory of ethical relativism can best be characterized by:
A) the belief that the moral rules should be determined by persons who have a "veil of ignorance" about their place or station in society.
B) the belief that a person must decide what course of action is proper based on that person's own set of beliefs or feelings.
C) the consultation of an outside source, such as a book or person, for guidance.
D) a set of universal rules based on reasoning that must be applied in all situations and is characterized by reversibility.
E) determining which course of action produces the greatest amount of good for the greatest number of people.
26. Sean decides to purchase some property in 50/50 ownership with one of the guys at work. They plan to build a vacation home on it. Sean wants to make sure that if he dies his wife and kids will get his share of the property. Sean and his friend should own the property as:
A) tenants by the survivorship.
B) tenants in common.
C) tenants for life and death.
D) joint tenants.
E) tenants by the entirety.
27. Which of the theories of the social responsibility of business includes obligations of a business to parties other than shareholders?
A) Corporate citizenship only
B) Moral minimum and stakeholder interest
C) Stakeholder interest only
D) Stakeholder interest and corporate citizenship
E) Moral minimum, stakeholder interest, and maximizing profits
28. Under international law, what is the difference between a treaty and a convention?
A) Conventions usually have only a few signatory nations whereas treaties usually have many.
B) The two terms have the same meaning, thus there is no difference between them.
C) A treaty is an agreement negotiated directly be the signatory nations, whereas a convention is first drafted by a sponsoring international organization, after which, nations can decided whether to be bound by it.
D) A treaty is an agreement, and a convention is typically the meeting at which the treaty was drafted.
29. Modification of an existing insurance contract is usually accomplished by means of a(n):
30. The contractual arrangement of an accountant with the client is often referred to as a(n):
31. Lance had a 2-year lease with Lisa. At the end of the 2 years, Lance stayed in the leased premises and kept making his rent payments. Lisa consented to this arrangement. This arrangement is best described as a:
A) tenancy at fee simple.
B) tenancy at will.
C) tenancy at sufferance.
D) tenancy for years.
E) periodic tenancy.
32. When someone has been left a specific item that is no longer owned by the testator at the testator's death, the beneficiary receives nothing under the doctrine of:
A) per stirpes distribution.
33. If a tenant transfers only some of his rights under a lease to another party, such that the original tenant is still liable on the lease, it is called a(n):
A) illegal action.
C) lease renewal.
D) restrictive covenant.
34. Which of the following is true when someone accidentally makes an improvement to the personal property of another where the owner was unaware of the improvement until after it had been made?
A) The property owner gets to keep the improvement in all cases, but must pay the party who improved it the reasonable value of the improvement.
B) The party who made the improvement can remove it if this is possible, otherwise the owner of the property gets to keep the improvement and is not required to pay for it.
C) The property owner gets to keep the improvement in all circumstances and is not required to pay for it.
D) The party who made the improvement can remove it if this is possible, otherwise the owner of the property gets to keep the improvement and must pay the party who improved it the reasonable value of the improvement.
35. The due diligence defense is applicable to actions filed under:
A) Section 10(b) of the Securities Exchange Act of 1934.
B) Section 11 of the Securities Act of 1933.
C) Both Section 10b and Section 11 of the Securities Act
D) Neither Section 10b and Section 11 of the Securities Act
36. Which of the following elements is the most important in determining whether personal property has become a fixture?
A) Whether the property is used in the same manner as the realty.
B) Whether the property can be removed without damaging the realty.
C) The intent of the parties.
D) Whether the property has been attached to the realty.
37. When an accountant has conducted an audit with reckless disregard for the accuracy of the financial statements, the accountant has committed:
A) actual fraud.
B) strict liability carelessness.
C) privity of the contract.
D) constructive fraud.
38. Which of the following best describes the modern rule regarding divorce?
A) An individual must prove the other person was insane.
B) An individual must prove the other person was at fault for causing a major problem with continuing the marriage.
C) An individual must prove the other person abandoned him or her.
D) A mere citing of irreconcilable differences is enough to obtain a divorce.
E) An individual must prove the other person physically abused him or her.
39. A famous psychologist has written a highly acclaimed book targeted at victims of domestic abuse. This book gives practical advice on getting out of such abusive relationships and avoiding further injury prior to getting out of the relationship. Pat thinks the book is excellent, but knows that many persons who could benefit from the book are unaware of its existence and unable to afford its $39.95 price. Pat is considering photocopying significant portions of the book and selling the photocopied portions to such persons at the cost of photocopying, which is much less than $39.95. In using a utilitarianism approach to decide whether to undertake this, Pat would:
A) look to an outside source regarding the photocopying and selling.
B) look for a universal rule about photocopying and selling such material.
C) determine if the total good to the world would be increased if Pat were to undertake the photocopying and selling of the copied book sections.
D) try to determine the fairest thing to do.
40. If a farmer takes some grain to a storage facility and later returns to retrieve an equal quantity of grain that is not the same grain placed in storage, the farmer has acquired ownership of the retrieved grain by:
41. Andrew and Jessica were married for 7 years when Jessica decided that Andrew was not the man she thought she had married. The couple had a 5 year-old boy, Sam who, has muscular dystrophy and has at times had to be home schooled. Jessica is a writer and does the majority of her work at home. Andrew and Sam are a very close father and son team, however Andrew, an engineer, is often taken out of town for company business. Each parent wants custody of Sam. What are the factors a judge might look at when deciding the couple's custody dispute?
A) The ability of each parent to provide for the special needs of Sam.
B) The desire of both Andrew and Jessica to provide for the needs of Sam.
C) The ability of each parent to provide for a stable environment for Sam.
D) The ability of both Andrew and Jessica to provide for Sam's educational needs.
42. Which of the following lists, in descending priority, of sources considered by most courts in settling questions of international law?
A) Treaties, customs, conventions, comity.
B) Treaties, customs, conventions, general principles of law.
C) Treaties, customs, general principles of law, judicial decisions and teachings.
D) Conventions, comity, customs, general principles of law.
E) Conventions, treaties, comity, customs.
43. The procedure that an accountant performs to determine whether the financial statements of a business are materially accurate is a(n):
E) account sampling.
44. Kathy needs to drive to a city some distance away. Kathy's car is in for repairs, so Kathy borrows Gloria's car at no charge. While Kathy is driving on the highway, one of the tires comes off the car, Kathy crashes, and is seriously injured. Gloria did not know of the defect, but a reasonable inspection would have indicated that a repair was needed. Kathy sues Gloria. In this situation:
A) Gloria is not liable because this is a lease and not a bailment.
B) Gloria is not liable because she did not charge Kathy for using the car.
C) Gloria is liable because she should have discovered the defect by inspection.
D) Gloria is not liable because she did not know of the defect.
E) Gloria is liable because she is an insurer of Kathy's safety.
45. Under an automobile insurance policy, what does comprehensive coverage protect against?
A) All types of damage to the covered vehicles of the insured.
B) Coverage for all losses in connection with the vehicle of the insured that are caused by other parties.
C) All types of damage to the covered vehicles of the insured except for damage caused by collision.
D) All types of losses caused by the insured to other parties.
E) All types of loss in connection with the ownership and operation of a vehicle.
46. Under the Uniform Simultaneous Death Act, when two persons who would inherit property from each other die together in such a way that it is impossible to determine who died first, the property of each is distributed:
A) as if the other person had not been left anything in the will.
B) as if he or she had died after the other person.
C) as if each had half the combined assets of both parties.
D) as if he or she had died first.
E) as if the older person had died first.
47. If an auditor determines that the financial statements fairly present the financial results and position of the client except for one fairly minor, but material, item that is not properly presented, the auditor would issue a(n):
A) unqualified opinion.
B) qualified opinion.
C) adverse opinion.
D) disclaimer of opinion.
48. Which of the following statements is true regarding the relationship of law and ethics?
A) In some cases the law will require a higher standard of conduct than ethics, but never vice versa.
B) Depending on the circumstances, the law can require a higher, lower, or the same standard of conduct as ethics demands.
C) In some cases ethics will require a higher standard of conduct than the law, but never vice versa.
D) The legal requirements will almost always be the same as the ethical requirements because the law is based on the ethical standards.
49. The Foreign Corrupt Practices Act prevents each of the following except:
A) bribes to candidates for office in foreign nations.
B) bribes to foreign officials.
C) bribes to foreign political party officials.
D) bribes to foreign officials if the payment is legal under the local written laws.
50. Father transfers realty to his three children as tenants in common. This means that:
A) the children own the property with rights of survivorship.
B) each child owns a life estate; reversion to father.
C) only one child may possess that property at any one time.
D) each child has an undivided one-third interest in the entire property.
E) each child owns a specific one-third of that property.
Completed Solution is attached. Click on Buy button and then download file to get full solution.
SUBJECTS / CATEGORIES:
1. Business Law/Corporate Law
2. General Law