The purpose of a proxy is to: Select one: a. allow a shareholder to transfer shares to another. b. allow a shareholder to place shares in trust. c. allow a shareholder to assign his/her right to vote. d. allow a shareholder to assign his/her dividends to another. e. initiate a tender offer. Which of the following is true about corporations? Select one: a. Corporate law is federal law. b. Corporate law is statutory, thus there is no common law applicable to corporations. c. Changes to state corporate law can require the amendment of a corporation's articles of incorporation even though the corporation is already in existence. d. One requirement of corporate status is that the shares be owned by a large number of shareholders. e. There are no closely held corporations. Bankruptcy proceedings are commenced under: Select one: a. state law. b. federal law. c. local (city or county) law. d. state or federal law at the option of the debtor. e. state or federal law at the option of the creditors. Limited liability companies as a form of conducting business in this country began: Select one: a. in Massachusetts in the early 1800's. b. in 1950 when New York was the first state in the U.S. to enact legislation allowing limited liability companies. c. in 2000 when Congress enacted legislation allowing limited liability companies. d. in Massachusetts in the 1700's.e. in 1977 when Wyoming was the first state in the U.S. to enact legislation allowing limited liability companies. Who may call a special shareholders' meeting if the bylaws do not specify this? Select one: a. The board of directors b. Any individual shareholder c. Shareholders holding at least 10 percent of the voting shares of the corporation. d. Any individual director e. A and C. With respect to the assignment of a contract right, which two roles are played by the same party with respect to the specific right and its assignment? Select one: a. The obligee and obligor b. The obligor and assignor c. The obligee and assignor d. The obligor and assignee e. The assignor and assignee What was the result in the case in the book involving whether a son who had a sole proprietorship doing business under the same fictitious name used by his now deceased father was liable for a warranty made by the father? Select one: a. The son was liable on the warranty because he in essence continued his father's business. b. The son was not liable on the warranty made by the father because the son was a sole proprietor. c. The son was not liable on the warranty made by the father because the father was not a sole proprietor. d. The son was liable on the warranty because he used the same fictitious name as his father. e. The son was liable on the warranty because a warranty cannot expire if the business is continued under any name. In most states today the period of minority ends: Select one: a. upon reaching the age of 18 for both males and females. b. upon reaching age 18 for females and age 21 for males. c. upon reaching the age of 21 for both males and females. d. upon marrying or reaching age 21, whichever occurs first. e. upon reaching the legal driving age of 16 for both males and females. In a contract for the sale of goods, identification of the goods is significant because it: Select one: a. allows the contract to be a destination contract. b. is the earliest that title can pass. c. determines when a document of title is needed. d. determines when the implied warranties become effective. e. determines whether a party is entitled to specific performance. Which of the following is true regarding the history of corporations? Select one: a. Corporations were first formed in the United States shortly after the United States gained independence from Great Britain. b. Corporations were first formed in medieval Europe. c. Corporations were first formed in Germany in the 1800's. d. Corporations were first formed in Spain in the1800's. e. Corporations were first formed in England between 1900 and 1910. Which of the following is generally true about a sole proprietorship? Select one: a. A sole proprietorship can be formed without any formalities of filing. b. So long as the proprietor keeps personal and business affairs properly segregated, the proprietor will not have personal liability for liabilities of the business. c. A sole proprietor is not liable for torts his or her employees commit in the course of employment. d. All sole proprietorships are required to file a fictitious business name statement. e. Both A and D. Which of the following are needed for an offer to be effective? Select one: a. The offeror must objectively intend to be bound by the offer. b. The terms of the offer must be definite or reasonably certain. c. The offer must be communicated to the offeree. d. A and B e. A, B and C are all needed. A party who employs another person to act on his or her behalf is called a(n): Select one: a. agent. b. independent contractee. c. employer. d. surety. e. principal The Equal Employment Opportunity Commission has the power to do the following except: Select one: a. pass amendments to the Civil Rights Act of 1964 and other antidiscrimination statutes. b. file suits to enforce antidiscrimination statutes on behalf of complainants. c. conduct investigations related to the antidiscrimination laws. d. interpret antidiscrimination statutes. e. encourage conciliation between employees and employers. Which of the following is true about the American Federation of Labor? Select one: a. It was formed in the early part of the twentieth century. b. When originally formed, only skilled craft workers were allowed to join. c. All members of other unions are automatically members of it. d. It is not allowed to engage in political lobbying. e. Today, approximately 20 percent of private sector wage and salary workers are members. Which of the following is true? Select one: a. Contracts can be classified as either voluntary or involuntary. b. All contracts are legally enforceable. c. The terms of a valid contract become private law between the parties. d. Contract promises are generally not enforced by the courts. e. The terms of a valid contract become public law between the parties. The World Wide Web consists of computers that support a standard set of rules for the exchange of information called: Select one: a. Hypertext Transfer Protocol b. Test Transfer Rules c. Hypertext Transfer Rules d. Web Exchange Rules e. Navigator Rules The basic obligation of a seller of goods to transfer and deliver goods to the buyer in accordance with the terms of the contract is known as: Select one: a. performance of delivery. b. anticipatory tender. c. delivery as agreed. d. anticipatory delivery. e. tender of delivery. One of the main reasons that contracts involving minors are voidable at the minor's option is: Select one: a. to protect the minor from unscrupulous adults. b. to reduce the amount of litigation in the courts. c. to support the policy of not enforcing gift promises. d. to punish adults for entering into contracts with minors. e. to prevent minors from entering into contracts. Which of the following statements is true about the Internet? Select one: a. It was begun in the 1970s. b. It was started by the National Aeronautics and Space Administration. c. It had more than 1,000 computers connected by 1980. d. Its original purpose was to develop communications for military and national defense purposes. e. It was developed to assist researchers in private businesses. The two labor organizations that combined in 1955 were: Select one: a. the Teamsters and the United Auto Workers. b. the United Auto Workers and the American Federation of Labor. c. the American Federation of Labor and the Congress of Industrial Organizations. d. the United Steel Workers and United Auto Workers. e. the United Steel Workers and the Congress of Industrial Organizations. The doctrine of caveat emptor stands for the principle that: Select one: a. sellers of goods and services are highly regulated. b. buyers of goods and services are limited in what they can purchase. c. buyers of goods and services receive few legal protections, and the buyer should beware. d. sellers of goods and services have many inherent duties and obligations. e. buyers of goods and services receive legal protection from fraud. In order for a proxy to become valid, the shareholder must: Select one: a. complete a written proxy document and file it with the SEC. b. complete a written proxy document, file it with the SEC and receive the appropriate approval from the SEC. c. complete a written proxy document and deliver it to the proxy holder. d. complete a written proxy document and deliver it to the corporation. e. reach agreement with the proxy holder, but no written documentation is required. Administrative agencies are often informally referred to as: Select one: a. courts of no resort. b. the fourth branch of government. c. “administration without representation.” d. the constitutional aberration. e. the rule-mongers. In noncarrier cases, unless otherwise agreed, where is the place of delivery for a sale of goods located at the seller's place of business? Select one: a. The seller's place of business. b. The buyer's place of business. c. The lender's place of business. d. The trustee's place of business. e. The bailee's place of business. Corporations are required to hold shareholders' meetings at least: Select one: a. annually. b. every six months. c. twice a year, but they are not required to be held every six months. d. quarterly. e. monthly. What is the primary function of an agent in a principal-agent relationship? Select one: a. Protect the principal from legal liability. b. Conduct business on behalf of the principal. c. Enter into contracts with the principal. d. Operate as a partner with the principal. e. Maintain the principal's status quo. Under Article 2 of the UCC, which of the following is true about passage of title? Select one: a. It occurs at the time and place goods are shipped in a shipment contract, and upon reaching the buyer's place of business or other specified location in a destination contract. b. It always occurs when the goods leave the hands of the seller. c. It does not occur until the buyer indicates acceptance of the goods. d. It always passes at the same time that risk of loss passes. e. It occurs at the time payment is made by the buyer. Which of the following is not one of the general categories of torts? Select one: a. Strict liability. b. Rational. c. Unintentional. d. Intentional. e. Both B and C. What is the primary effect of the infancy doctrine? Select one: a. Young children are not able to enter into contracts under any circumstance. b. A parent or guardian must affirm all contracts entered into by minors. c. Minors have the right to disaffirm most contracts entered into with adults. d. Minors cannot enter into any contracts prior to becoming an adult. e. Court approval is needed for any contract involving a minor. Someone who is authorized to act on behalf of another is generally known as a(n): Select one: a. agent. b. independent contractor. c. employee. d. surety. e. principal. The objective theory of contracts is based on the premise that: Select one: a. even offers made in obvious jest can be the basis of a contract. b. every contract must have a central object to it. c. every contract must have consideration given by both parties. d. whether the intent is present is based on how a reasonable person would view the parties' actions and is not based on the actual intentions of the parties. e. the intent to be bound is determined after the parties have had a chance to perform the contract. Every contract has both: Select one: a. a buyer and seller. b. an offeror and offeree. c. a breaching party and a non-breaching party. d. an initiator and a responder. e. a buyer and a lessor. In the 1997 case discussed in the book involving a law restricting the sending of certain sexually oriented information over the Internet, the U.S. Supreme Court ruled that: Select one: a. the Telecommunications Act of 1996 violated the U.S. Constitution for its restrictions on the transfer of indecent material over the Internet. b. the Communications Decency Act did not violate the U.S. Constitution in any manner. c. the Communications Decency Act violated the U.S. Constitution for its restrictions on the transfer of indecent material over the Internet. d. the Internet had grown to a point that it should be placed into private ownership that could contract regarding sexual content with individual service providers. e. individual states could decide whether the Telecommunications Act of 1996 violated the U.S. Constitution. Which of the following is not a past or present bankruptcy statute? Select one: a. The Bankruptcy Act of 1848 b. The Bankruptcy Act of 1878 c. The Chandler Act (1938) d. The Bankruptcy Reform Act of 1978 e. The Bankruptcy Amendments and Federal Judgeship Act of 1984 The transfer of rights under a contract is called a(n): Select one: a. obligence. b. assignment. c. delegation. d. accord. e. stipulation. In the process of forming a contract, who generally has the power to create the contract? Select one: a. The offeror in making the offer. b. The offeror, but only after the offeree has received the offer. c. The offeree, once the offer has been received. d. The court, once the offer has been received by the offeree. e. The offeror, by confirming the acceptance of the offeree. Under what circumstances is a proprietorship required to file a fictitious business name statement in most statements? Select one: a. Any time that there is a change in the name of the business. b. Any time that the business is sold by one proprietor to another. c. When the business is operated under a trade name rather than under the name of the proprietor. d. In all circumstances; each proprietorship is required to file a fictitious business name statement. e. Only when requested by the office of the secretary of state. In a shipment contract, the seller must do all of the following except: Select one: a. arrange for adequate insurance to cover loss or damage to the goods while in transit. b. place the goods in the possession of the carrier. c. contract for the proper and safe transportation of the goods. d. obtain and deliver any appropriate documents related to the sale and shipment. e. notify the buyer of the shipment. Which of the following statements regarding identification of goods under the UCC is not true? Select one: a. Purchased goods that are part of a larger mass are identified when designated as the goods sold to the buyer. b. Identification can occur prior to the goods being shipped. c. Risk of loss may shift to the buyer before identification occurs. d. Future goods (other than crops and unborn animals) are identified when they are shipped, marked or otherwise identified with the particular contract. e. Both A and C are untrue. Which of the following is not characteristic of a valid contract? Select one: a. It can be viewed as private law between the parties. b. The parties must have the contract's terms approved by the appropriate court. c. A court will enforce its terms if the parties do not voluntarily perform. d. It will have at least two parties. e. There must be mutual assent by the parties. Which of the following is true regarding taxation of limited liability companies? Select one: a. A limited liability company is taxed as a partnership. b. A limited liability company is taxed as a corporation. c. A limited liability company may decide whether to be taxed as a corporation or a partnership. d. A limited liability company is taxed as a partnership on earnings up to $900,000 and as a corporation for amounts over that limit. e. A limited liability company is taxed as a corporation on earnings up to $900,000 and as a partnership for amounts over that limit. Owners of a limited liability company retain limited liability until the following is received in net profit: Select one: a. $100,000 b. $500,000 c. $900,000 d. One million e. There is no limit of net profit at which owners of a limited liability company lose their limited liability. The two general types of shareholders’ meetings are: Select one: a. annual and special. b. annual and quarterly. c. general and annual. d. general and special. e. general and quarterly. Which of the following statutes provides employees with the right to collectively bargain? Select one: a. The Norris-LaGuardia Act b. The National Labor Relations Act c. The Labor-Management Relations Act d. The Worker Adjustment and Retraining Notification Act e. The Labor-Management Reporting and Disclosure Act Which governmental entity has primary responsibility for enforcing claims of employment discrimination? Select one: a. The Equal Employment Opportunity Commission b. The National Labor Relations Board c. The United States Senate d. State attorney general's offices e. County prosecutors Under the law, a tort can be described as: Select one: a. any violation of an ethical duty. b. another term for a crime or misdemeanor. c. any action done in violation of a prior agreement which allows the victim to recover damages. d. any civil wrong that allows the injured person to recover damages. e. any conduct by one party that is objected to by another. Which of the following is not a characteristic of a corporation? Select one: a. Limited liability of owners b. Free transferability of shares c. Limited period of existence d. Centralized management e. Both C and D A party who is owed on obligation of performance is called a(n): Select one: a. obligor. b. obligee. c. assignor. d. assignee. e. offeree.