1-5
Phoebe tells Joey that she will buy his textbook from last semester for $65. Joey agrees. Phoebe and Joey have
a. a quasi contract
b. an express contract
c. an executed contract
d. an implied contract
b. What is an express contract?
Eric offers to pay Amy $50 for a golf lesson for his son, Caleb. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have
a. no contract
b. a unilateral contract
c. a trilateral contract
d. a bilateral contract
d. What is a bilateral contract?
Megan contracts to work for the City of Flagstaff during July for $4500. On June 30, Flagstaff cancels the contract. Megan declines a similar job with the City of Williams, which would have paid $4000. Megan files a suit against Flagstaff. As compensatory damages, Megan can recover
a. $4500
b. $500
c. $4000
d. $0
b. What is $500?
Lauren promises to pay Jonah $500 because "he does not have as much money as other people." Lauren's promise is
a. enforceable because society wants people to keep their promises
b. enforceable because the redistribution of wealth is a valid social goal
c. not enforceable because Lauren could have given more
d. not enforceable because Jonah has not given consideration in return
d. What is not enforceable because Jonah has not given consideration in return?
The UCC provides a framework for
a. international distribution agreements
b. domestic and foreign transactions in real estate
c. prosecuting crimes against business interests
d. commercial transactions for the sale of and payment for goods
d. What is commercial transactions for the sale of and payment for goods?
The simplest form of business organization is
a. corporation
b. sole proprietorship
c. limited liability company
d. partnership
b. What is a sole proprietorship?
For purposes of holding title to property, in most states an LLC is considered
a. a non-participating third party
b. to be the group of members of the LLC who jointly own the property
c. a part of the family of each member
d. a legal entity apart from the members
d. What is a legal entity apart from the members?
The UETA applies, if at all, only to those transactions in which the parties agree to use
a. notarized documents
b. paper documents
c. updates and cross-checks to orally verify any e-terms
d. electronic means
d. What are electronic means?
CJ is a director of Lyman Corporation. Without informing Lyman, CJ starts up Ziegler, Inc., to compete with Lyman. CJ is most likely liable for breach of
a. no duty or rule
b. the business judgment rule
c. the right of participation
d. the duty of loyalty
d. What is the duty of loyalty
To be enforceable under the UCC, a written contract must include
a. a correct title
b. the parties' contract information
c. a date
d. a quantity term
d. What is a quantity term?
Alex contracts to repair a hole in the wall of Justin's Cafe for $100. If Alex does not perform, Justin must pay her
a. $100
b. $10
c. $50
d. $0
d. What is $0?
Zoey wants to go into the business of floral arranging. Among the reasons that would probably convince Zoey to set up her business as a sole proprietorship would be
a. its limited liability
b. its perpetual existence
c. the ability to borrow money easily
d. its greater flexibility
d. What is its greater flexibility?
George, the owner of a sole proprietorship, wants to stay a sole proprietorship but also needs more capital (money to run the business). This can best be accomplished by
a. selling the business
b. bringing in partners
c. issuing stock
d. borrowing funds
d. What is borrowing funds?
Joanie and Richie are directors and shareholders of Cunningham Hardware Inc. Joanie's written authorization to Richie to vote Joanie's shares at a Cunningham shareholders' meeting is
a. a preemptive right
b. a violation of the duty of loyalty
c. a quorum
d. a proxy
d. What is a proxy?
Bree and Adam enter into a contract for the sale of Bree's condominium to Adam. Adam transfers his right to be recorded as the owner of the property to his brother Chase. This transfer is
a. an assignment
b. a delegation
c. a negotiation
d. prohibited
a. What is an assignment?
A franchise is
a. a contractual relationship for a very specific purpose and a very limited time.
b. a category of limited liability company that requires at least 4 members.
c. a type of corporation.
d. a contractual relationship between two business entities.
d. What is a contractual relationship between two business entities?
MaxTrain Inc. is a private, for-profit corporation that is owned by 5 shareholders, is subject to double taxation, and has made no public offering for its shares. MaxTrain most likely is a
a. a closely held corporation
b. a professional corporation
c. a nonprofit corporation
d. an S corporation
a. What is a closely held corporation?
If an acceptance is sent by an authorized mode of communication, it will be effective when it is
a. written
b. received
c. in transit
d. sent
d. What is sent?
Viola works for Renaldo. At the end of her first year, Renaldo promises to pay her a bonus for her "four quarters of success." Renaldo's promise is
a. unenforceable because Viola's performance is past
b. enforceable
c. unenforceable because Viola's performance is not legally sufficient
d. unenforceable because Viola's performance was a preexisting duty
a. What is unenforceable because Viola's performance is past?
Kurt offers to sell his Ford Mustang for $7500 to Blaine. Before Blaine can respond, Kurt checks the prices for similar Mustangs and says, "Forget it. I changed my mind." Kurt's offer was terminated by
a. Kurt's rejection
b. Blaine's rejection
c. Kurt's revocation
d. no one- Kurt's offer is still open
c. What is Kurt's revocation?
The responsibility for the overall management of a corporation rests with
a. the officers
b. the board of directors
c. the shareholders
d. the owners
b. What is the board of directors?
Millennial Martial Arts Academy enters into a contract to employ Milton as an on-site project manager for two years. Millennial breaches the contract. Milton has a duty to
a. do nothing
b. reduce the damages that Milton might otherwise suffer
c. breach the contract with Millennial
d. sue Millennial to deter others from similar acts
b. What is reduce the damages that Milton might otherwise suffer?
Adam and Vicki are holders of common stock in Stubing Inc. Like other holders of common stock, they have a residual position in the overall financial structure of Stubing, because they
a. are the last to receive payment for their investment
b. have priority to Stubing's assets if Stubing goes bankrupt
c. are guaranteed to receive more than the amount of their investments
d. reside in the state of Stubing's incorporation
a. What are the last to receive payment for their investment?
Leslie buys a MP3 player for $50 and a new laptop for $1500 and signs a two-year employment contract for a $4500 monthly salary to start at the beginning of the next month. The Statute of Frauds covers
a. the employment contract, and the laptop and MP3 purchases
b. the employment contract only
c. the employment contract and the laptop purchase only
d. the laptop and MP3 purchases only
c. What is the employment contract and the laptop purchase only?
Falcon Crest Winery Inc. issues bonds, which are also known as
a. preferred stock
b. debt securities
c. equity securities
d. cumulative investments
b. What is debt securities?