Which of the following is not stated as a purpose or function of the law?

To govern democracy with fairness

A court may pierce the corporate veil when

The corporation is not sufficiently distinct from a shareholder

A joint venture is usually created by two or more business entities to...

Engage in a specific limited project

Which of the following is true of tort liability in general partnership?

A partner can be sued even if he or she did not commit the tort

The business judgment rule requires an executive to

Use ordinary, sound judgement like similarly situated business people.

Which of the following is stated in the one-year rule?

contract that can't be done on its own terms in a year must be in writing

Which of the following is not true of executives of a corporation?

Prohibited from being shareholders/ members of the board of directors

Which of the following is not true of the U.S. Supreme Court?

It is comprised of 10 people - 9 justices and 1 Chief Justice

Which of the following is not a true of an agreement?

An agreement consists of an offer and a denial

Which of the following is not true of offers?

Acceptance must always be sent in the same form as the offer

Once a corporation decides to voluntarily dissolve, it must

file articles of dissolution with the secretary of state

Which school of legal thought relies on the notion there exists a higher universal law governing all mankind?

The natural law of school of thought

Which of the following is true of administrative agencies?

Each state and local government has administrative agencies.

Which of the following is not true of minors?

Minors may not enter into contracts under any circumstances

Which of the following is not true of fraud?

A person harmed by fraud must void the contract

The First Amendment focusses on two types of rights. They are...

Freedom of conscience and freedom of expression

Which of the following is not true of the theory of mistake?

A bilateral mistake is where one party errors

Which of the following is not true about the venue of the trial?

If both paries are in different states, trial will be in plaintiff's state

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MGT Midterm Review 1

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1
In a legitimate offer, the offeror must manifest ____ intent to become bound by an agreement.
Subjective
Exress
Accepted
Objective
2
When evaluating situations and creating strategies, business people must focus on...
Risk Accounting
Risk Maximization
Risk Management
Risk Litigation
3
The managing partner of a limited partnership is known as the ____ partner.
Limited
General
Specific
Liable
4
Which of the following contracts is required to be in writing?
A contract for the sale of a bicylce for $200
A contract for lease of motorcycle with payments of $500
A contract for the sale of a bed for $350
A prenuptial agreement
5
Which of the following is not stated as a purpose or function of the law?
To facilitate private arangements between individuals
To prevent undesirable behavior
To determine procedures for changing the law
To govern democracy with fairness
6
A court may pierce the corporate veil when
the corporation is engaged in business outside its incorporated purpose
The corporation is a front for organized crime
The corporate accounting is non-transparent
The corporation is not sufficiently distinct from a shareholder
7
A joint venture is usually created by two or more business entities to...
Avoid Taxes
To force arbitrage opportunities
Create long term ventures by combining corporate expertise
Engage in a specific limited project
8
Which of the following is true of tort liability in general partnership?
A partner can be sued even if he or she did not commit the tort
If only one partner commited the tort, the partners cannot be jointly sued
Only the partner who committed the tort is liable
If partner who did the tort is released from partnership other isn't liable
9
If the object of partnership may not be completed in _____, the partnership must be in writing.
Two Years
One Year
Five Years
Six Months
10
The ____ make(s) decisions regarding the day to day operations of a corporation.
Board of directors
Shareholders
Executives
Capital investors
11
_____ refers to an entirely new contract taken over by a third party.
Novation
Substitution
Accord
Performance
12
The business judgment rule requires an executive to
Get advice from another professional prior 2 committing to course of action
get judicial judgement before making making a major decision
Use ordinary, sound judgement like similarly situated business people.
Use perfect business judgement
13
A contract that has been fully performed is deemed complete and is said to have achieved _____.
Performance
Complete performance
Novation
Substitution
14
Which of the following is stated in the one-year rule?
Terms of a written contract may be modified a year after its creation
Valid contracts may be cancelled by either party up to a year of creation
contract that can't be done on its own terms in a year must be in writing
every contract in writing is subject to yearly renewal
15
Which of the following is not true of a general partnership?
Partners are equal owners of all business assets.
It is taxed directly.
Each partner is jointly and severally liable for all claims against them.
It is managed at the discreation of its partners.
16
Which of the following is not true of executives of a corporation?
See that business runs according to the Articles of Incorporation
Prohibited from being shareholders/ members of the board of directors
Carry out the day-to-day operations of a corporation
Subject of same duty of care in carrying out corporation purposes in BOD
17
If Mary agrees to be responsible for the school loan of her cousin Jo, then a ____ type of contract is created.
Statute of frauds
Guaranty
Mortgage
Personal
18
Members of a partnership have a ____ relationship. Each owes the other due care in actions associated with partnership.
General Duty
Information Duty
Legal Duty
Fiduciary
19
When a partnership is winding up, when do the profits get distrubuted amongst the partners?
Before debts to non-partner creditors
Before partner creditors
Before partner capital distrubution
At the very end
20
Which of the following is not true of the U.S. Supreme Court?
It has the power to declare any law unconstitutional
It is comprised of 10 people - 9 justices and 1 Chief Justice
It is an appellate court, hearing federal and state appeal cases
It is the highest court in the land
21
____ refers to the rewriting of a contract to reflect current circumstances.
Accord
Satisfaction
Substitution
Substantial
22
The _____ doctorine states the existence of a contract is determined by words/actions of parties, not by actual intent.
Manifest intent of contracts
Party intent of contracts
Subjective theory of contracts
Objective theory of contracts
23
Which of the following is not a true of an agreement?
Offeror must manifest a serious/meaningful intent to be bound by agreement
An agreement consists of an offer and a denial
The offeror proposes the terms of an agreement
The offeree is the party receiving the offer
24
Which of the following is not true of offers?
The silence of an offeree is not acceptance
In order to have a valid agreement, the acceptance must be unequivoal
Acceptance may be communicated to the offeror by any reasonable manner
Acceptance must always be sent in the same form as the offer
25
A limited partnership limits liability of general partners
True
False
26
Once a corporation decides to voluntarily dissolve, it must
pay common stockholdrs first
get a unanimous vote from all shareholders
get a judicial order
file articles of dissolution with the secretary of state
27
Contract - party failed to complete all aspects, but service results in same benefit as intended. Deemed Complete under:
Complete performance
Substitution
Novation
Substantial
28
In a general partnership, any partner may end the partnership at will.
False
True
29
A corporation may be incorporated into several states.
True
False
30
Which school of legal thought relies on the notion there exists a higher universal law governing all mankind?
The natural law of school of thought
The law and economics school of thought
The historical perspective school of thought
The command school of thought
31
Which of the following is not true of the theory of mistake?
Bilateral mistake of value
Unilateral mistake of fact
Mutual mistake of value
Mutual mistake of fact
32
Which of the following is true of administrative agencies?
An existing administrative agency may not create a new law.
All administrative agencies answer directly to the President.
Each state and local government has administrative agencies.
Administrative agencies may overrule judicial decisions.
33
An illegal contract is still enforceable
True
False
34
___ damages are awarded when non-breaching party sues breaching party, even when breach did not result in financial loss
Consequential
Compensatory
Punitive
Nominal
35
Which of the following is not true of minors?
Minors may not enter into contracts under any circumstances
Minors are under the age of 18
Minors may disaffirm contracts
Minors may enter into contracts
36
Which of the following is not true of fraud?
A known misrepresention of a fact which a party relies to their detriment
If a party is tricked into signing contract, law finds fraud in contract
May be found in inception, inducement, or execution of a contract
A person harmed by fraud must void the contract
37
Those who create new paradigms of ethical decision making are operating at which level of development?
Post-Conventional Level
Pre-Conventional level
Unconventional level
Conventional Level
38
Peter's Pet Palace, a pet store chain with 5 shareholders, is an example of a _____ corporation.
Publically held
Closely held
Not-for-profit
Professional
39
Preponderance of evidence burden of proof want evidence presented to be clear to require assent of every reasonable mind
True
False
40
To be efficient, the law must be seen as having all of the following characteristics exept being ____
Flexible
Equally applied to all persons
Fair
Ambiguous
41
The First Amendment focusses on two types of rights. They are...
Freedom of the press and freedom to travel
Protection of property and happiness
Freedom of speech and protection of property
Freedom of conscience and freedom of expression
42
Which of the following is not true of the theory of mistake?
Unilateral mistake is where one party errors
A bilateral mistake is where both parties error
Mistakes may be unilateral or bilateral
A bilateral mistake is where one party errors
43
A contract that requires special forms and/or signatures is known as a(n) _____ contract.
Informal
Executory
Objective
Formal
44
A motion for ___ asks the court to decide in the plaintiff's favor without having to present their defense.
Re-direct examination
Direct examination
Cross-examination
Directed Verdict
45
McDonald's is an example of a ______ franchise.
Distributorship
Chain-style
Partnership
Manufacturing
46
_____ refers to the location of the trial.
Standing
Third Party
Ripeness
Venue
47
Third parites such as environmental groups may file environmental suits, even though they are not directly harmed.
True
False
48
Which of the following is not true about the venue of the trial?
Sometimes the circumstances dictate trial to occur outside of normal venue
If a party feels bias impacts a fiar trial, change in venue may be granted
Cases are usually heard as near to the location of the paries as possible
If both paries are in different states, trial will be in plaintiff's state
49
_____ is an intentional misrepresentation of a material fact upon which a party reasonably relies to their detriment.
Fraud
Duress
Mutual mistake
Undue influence
50
A _____ refers to a task that you are already obligated to do.
Past duty
Forbearing duty
Pre-existing duty
Affirmative duty
51
____ refers to the principle that an actual controversy must exist before a court will hear legal claims.
Venue
Third Party
Ripeness
Standing
52
Undoing a contract is referred to as ____.
Recession
Replevin
Restitution
Rescission
53
In a trial which of the following is true of opening statements?
the parties state the facts and legal issues central to the case.
The parties present their evidence.
The parties ask for discovery.
The parties seek to meet the burden of proof requirement.
54
Which of the following is true of the writing requirements of contracts?
A writing may include several documents which are integrated into a whole
Contracts for the lease of goods over $500 must be in writing
Contracts for the sale of goods over $500 need not be in writing
Promises related to marrieage must be in writing
55
An administrative agency is prohibited from doing all but which of the following?
Violating judicial decisions
Extending beyond its authority
Making arbitrary laws
Exercising legislative power
56
Hudson's Bay Company, a Canadian department store chain, is an example of a(n) _____ corporation.
Domestic
Not-for-profit
Foreign
Alien
57
Which of the following is not a valid example of consideration?
Sam gives kelly a horse as a gift
Sam pays Kelly $200 to watch his pets for the weekend
Sam pays Kelly $500 to paint his fence
Sam pays Kelly $1 million to refrain from purchasing a strip mall
58
Which of the following is not true of the U.S. Constitution?
Every law in the U.S. must comply with the constitution.
It establishes three branches of government.
It enumerates and protects citizens' rights.
It authorizes that state laws have priorities over it.
59
Contracts are said to violate public policy if they include all but which of the following?
Broad exculpatory clauses
Excessive non-competition restiction
Crude or offensive language
Unfair terms
60
Which of the following is not true of offers?
An offeree may reject an offer and present a counteroffer
An offeree's silence may be counted as an agreemen
If a counteroffer is accepted, the original offer is terminated
An offer may be terminated immediately
61
Substantial performance rule governs common law contracts.
False
True
62
An offer will be terminated for all but which of the following reasons?
The subject matter of the contract no longer exists
The offeror dies.
The offeree no longer wants to abide by the contract terms
The offer was not accepted in the time allotted
63
Which of the following is not a true statement?
Contracts involving interest in land must be in writing
A writing may include several documents which are integrated into a whole
Contracts that establish an agency relationship must be in writing
All contracts must be in writing to be valid
64
Dehumanization can _____.
Create unhealthy workplace environments
Result in inadequate compensation in the workplace
Lead to extreme cases like genocide
All of the above
65
Which of the following is true of contracts of sale or lease of goods?
Sales contracts of goods over $100 must be in writing
Lease contracts of goods over $1,000 must be in writing.
All sales contracts must be in writing
All lease contracts must be in writing
66
Which of the following describes substantive due process?
The laws of the U.S. must be equally applied to all citizens
A person may not be deprived of life, liberty, or property w/o prior notice
Govt must protect fundamental rights, even if Constitution doesn't mention
A person has protected oral, written, and symbolic rights of expression
67
Bob paid Bill $100 to shovel snow all winter. He was paid prior and didn't show up. bill should refund $100 as
Compensatory damages
Consequential damages
Nominal damages
Punitive damages
68
Which of the following is true of general and limited parners in a limited partnership?
General partners are not liable for partnership debts
Limited partners are not liable for partner debts.
General partners are required to invest capital and cannot manage business
General and limited parners are joinly responsible for partnership debt
69
In order for a valid contract to exist, there must be all but which of the following?
Legality
Agreement
Consideration
Mutual respect
70
Which of the following is not a recognized burden of proof?
Preponderance of evidence
Voir Dire
Beyond a reasonable doubt
Prima Facie
71
The goal of attorneys is often...
Risk Minimization
Risk Management
Risk Maximization
Risk Litigation
72
_____ refers to the agreement to accept the new terms of a contract
Substitution
Novation
Accord
Satisfaction
73
State and federal government approval is required for creating a sole proprietorship.
False
True
74
All are true of state courts except which of the following?
Each state has a supreme court that is the final arbiter of state law
Local state district courts include courts with a special purpose
State courts are set up in a similar manner as federal courts
Each state has at least one intermediate appellate court.
75
In medieval Europe, "King's Peace" meant that if the farmer stole a chicken from another farmer, harm was to...
The aggrieved farmer
The King
The community
The chicken
76
Dissolution of a parnership by operation of law can occur for any of the following reasons except...
Bankruptcy of the partner
Death of partner
Insanity of a partner
Illegality of partner
77
A ______ is established when 1 party licenses another party for use of its trade name, trademarks, patents, etc.
General partnership
Franchise
Sole proprietorship
Corporation
78
HealthyUs is a corporation formed in Maine, but now operates in Vermont. This is an example of a(n) ____ corporation.
Alien
Foreign
Domestic
Not-for-profit
79
All of the following are benefits of a general partnership, except...
They are easy to create
They are cheap to maintain
They are easy to run
They can raise capital easily
80
Which of the following is required to be an S corporation?
It cannot make over $100 million in profits annually
It must be licensed by the S corporation governing board
Shareholders must be foreign nationals
There can be no more than 100 shareholders
81
People who can operate at the pre-conventional level are ____.
adults
teenagers
young children
all of the above
82
which of the following is not a valid example of consideration?
Ann pays Mary $100 for a haircut
Ann promises to give marry $10,000 because she helped him finish her house.
Ann pays mary $50 for babysitting Ann's children
Ann buys Mary's bicycle for $200
83
All must be included in an article of incorporation except which of the following?
The agent of service
The corporate name and address
The number of shares to be issued
the executives' names and addresses
84
An offeree may do all but which of the following?
Present a counteroffer
Revoke an offer
Reject an offer
Accept an offer
85
Which group of people is elected by shareholders to guide corporation and make policy decisions?
Stakeholders
Board of directors
Corporate executives
Managers
86
Administrative agencies have executive, legislative, and judicial power.
True
False
87
A general partnership is considered a legal entity.
True
False
88
____ damages seek to put non-breaching party in position it would have been in if the breach had not occured
Consequential
Compensatory
Nominal
Punitive
89
_____ refers to the principal that a party may bring a suit in U.S courts only if they have a stake in the outcome
Venue
Standing
Ripeness
Third Party
90
Owners of a corporation are called...
Capital investors
Executives
Shareholders
The board of directors
91
The ____ partner of a limited partnership may invest capital, but may not participate in managment of the business.
Liable
General
Limited
Specific
92
The combined rules, procedures, and enforcment mechanisms of federal agencies is called ______?
Substantive Law
Agency Law
Enforcement Law
Administrative Law
93
The act of refraining from an action a person has a legal right to do is called _____.
Consideration
Value Exchange
Reciprocation
Forbearance
94
Which of the following is not true of consideration?
Fullfilling a pre-existing duty can be consideration
Consideration must exist in a contract
A gift is not consideration
Consideration can be anything of value
95
Under the doctorine of ___, the Supreme Court may declar any law unconstitutional
Legal Review
Judicial Review
Supreme Review
Constitutional Review
96
____ review decisions arising out of local district courts.
Intermediate appellate courts
State supreme courts
Local U.S district courts
Federal appellate courts
97
Which of the following is not true concerning a verdict?
The verdict is final and may not be rejected or amended
The court enters an official judgment in accordance with the jury verdict.
The jury deliberates before reaching a decision
If judge discovers bias or jury misconduct they may reject the verdict
98
Which of the following is not true of jurisprudence?
There are several schools of jurisprudential thought.
It is the study and theory of law and legal systems.
Schools of jurisprudential thought range from philosophical to scientific.
Two main schools of jurisprudential thought have developed.
99
The legitimacy of a contract agreement may be challenged if there is all but which of the following?
Confusion
Fraud
Mistake
Undue Influence
100
Which of the following is not true of a general partnership?
Have an equal right to engage in management of business
Share profits and losses according to agreement
Partners have joint owenership of business assets
Must always agree to split the profits and losses evenly

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