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for Grade MT211: Unit 10 Final Exam Numeric grade: 180/200 Comments: (none) <Close Window Autograde Summary These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. Question Type: # Questions: # Correct: Multiple choice 50 45 Letter grade: Date Taken: 7/20/2009 4:30:52 PM Time Spent: 2:51:38 Points Received: 180 / 200 (90%) JavaScript is required for your course. Please ensure JavaScript is enabled in your browser preferences. Grade Details 1. Question: Collateral is not the subject of a security interest. Your Register to View Answer Fals e C ORR ECT Points 4 of 4 Received: Comments: 2. Question: To create an enforceable security interest, the secured party must give value. Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 3. Question: For a creditor to have an enforceable security interest, the debtor must have rights in the collateral. Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 4. Question: If a principal does not ratify an otherwise unauthorized contract, the principal is not bound. Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 5. Question: If an agent acts within the scope of authority, an undisclosed principal is liable to a third party for contracts made by the agent. Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 6. Question: There are criminal penalties for violations of employee health and safety regulations. Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 7. Question: Employers are required to establish retirement plans for their employees. Your Register to View Answer Fals e C ORR ECT Points 4 of 4 Received: Comments: 8. Question: The income of a sole proprietor is taxed as his personal income. Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 9. Question: A general partnership is not usually considered a legal entity apart from its owners. Your Register to View AnswerIN CO RR ECT Fals e C ORR ECT ANS WE R Points 0 of 4 Received: Comments: 10 Question: In a limited liability partnership, a partner can be exempt from personal liability for partnership . obligations. Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 11 Question: A corporation is liable for the torts of its agents and officers committed within the course and scope . of their employment. Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 12 Question: A close corporation may restrict the right of a shareholder to transfer stock by means of a . shareholder agreement. Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 13 Question: Every corporation must identify a specific person as an agent to receive legal documents on behalf . of a corporation. Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 14 Question: The articles of incorporation commence the corporation. . Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 15 Question: The approval of shareholders is required to authorize amendments to articles of incorporation. . Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 16 Question: A board of directors cannot delegate any of its functions to corporate officers. . Your Register to View Answer Fals e C ORR ECT Points 4 of 4 Received: Comments: 17 Question: A board of directors generally makes major corporate policy decisions. . Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 18 Question: Corporate directors and officers are insurers of business success. . Your Register to View Answer Fals e C ORR ECT Points 4 of 4 Received: Comments: 19 Question: Cumulative voting is a method of voting designed to allow minority shareholders representation on . the board of directors. Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 20 Question: A person who holds the entire bundle of rights in property owns the property in fee simple. . Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 21 Question: Persons who share property ownership rights simultaneously are concurrent owners. . Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 22 Question: When a joint tenant sells his or her interest, the buyer becomes a tenant in common. . Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 23 Question: A gift made to a dying donee is a gift inter vivos. . Your Register to View Answer Fals e C ORR ECT Points 4 of 4 Received: Comments: 24 Question: Property that is voluntarily placed somewhere by its owner and inadvertently forgotten is lost . property. Your Register to View Answer Fals e C ORR ECT Points 4 of 4 Received: Comments: 25 Question: Property that is voluntarily placed somewhere by its owner with no intention off reclaiming it is . abandoned property. Your Answer: Tru e C ORR ECT Fals e Points 4 of 4 Received: Comments: 26 Question: Ace Loan Company has a security interest in collateral owned by Beta Tool & Die Company. A . security interest in collateral Your Answer: elimi nates the need for a finan cing state ment . is enfo rcea ble whe n atta chm ent occu rs. C ORR ECT is lost whe n attac hme nt occu rs. must be obtai ned Points 4 of 4 Received: Comments: 27 Question: First Federal Bank wants to perfect its security interest in the property of Global Services . Company. The most common method of perfecting a security interest is for Your Answer: the cred itor to file a fina ncin g state men t in a publ ic offic e. C ORR ECT the credi tor to retai n poss essio n of the colla teral. the debt or to give valu e to the credi tor. Points 4 of 4 Received: Comments: 28 Question: Regional Bank wants to perfect its security interest in timber owned by Standard Lumber, Inc. . Most likely, a financing statement should be filed with Your Answer: the local cha mber of com merc e. the coun ty cler k. C ORR ECT the feder al loan offic er. the secre tary of state' s offic e. Points 4 of 4 Received: Comments: 29 Question: Fine Furniture Store sells household consumer goods. To create a purchase-money security interest, . Fine Furniture must Your Answer: assig n, to a colle cting agen t, a porti on of its acco unts paya ble. assig n, to a colle cting agen t, a porti on of its acco unts recei vabl e. exte nd cred it for part or all of the purc hase pric Points 4 of 4 Received: Comments: 30 Question: A petition for a discharge in bankruptcy under Chapter 11 may be filed by . Your Answer: Gina , the sole prop rieto r of Hast y Deli very Serv ice, only. Inter state Carri er, a partn ershi p, and Jiffy Railr oad Corp orati on only. Gin a, Inte rstat e Car rier, and Jiffy Rail road . C Points 4 of 4 Received: Comments: 31 Question: Owen drops out of school before he completes his college education and starts his own business. . Five years later, Owen files for bankruptcy under Chapter 13. Owen will obtain a discharge of all debts provided for by the Chapter 13 plan if the value of the property distributed under the plan is greater than what would have been available in a liquidation and Your Answer: if he fails to mak e all pay men ts due to even ts beyo nd his cont rol. C ORR ECT if he stays in busi ness for at least five year s. if takes he out a stud ent loan and retur ns to scho ol. Points 4 of 4 Received: Comments: 32 Question: Joyce works for Kappa Services Corporation as an independent contractor, and not as an employee, . if Your Answer: Joyc e says that she work s as an inde pend ent contr actor . Joyc e work s on a perm anen t basis . Kap pa does not cont rol Joyc e's wor k. C ORR ECT Points 4 of 4 Received: Comments: 33 Question: Lynn may hire employees to work in the computer store she manages despite the fact that her . employment agreement with the owner says nothing about her being able to hire employees. This is Your Answer: appa rent auth ority . equa l auth ority . expr ess auth ority . impl ied auth ority . C ORR ECT Points 4 of 4 Received: Comments: 34 Question: Gil is a purchasing agent for H&H Ranch with the authority to buy cattle at a certain auction. After . the cattle have been bought, the agency relationship terminates Your Answer: auto mati cally . C ORR ECT follo wing notic e to all actu al cattl e selle rs. follo wing notic e to all pote ntial cattl e selle rs. follo wing publi shed notic e in a local Points 4 of 4 Received: Comments: 35 Question: Consolidated Computers, Inc., lays off fifty of its five hundred workers, including Don. . Consolidated can eliminate Don's medical insurance coverage Your Answer: if Cons olida ted chan ges its grou p insur er. if Con solid ated com plete ly elim inat es its grou p bene fit plan . C ORR ECT if Don files a suit agai nst Cons olida ted for wron gful Points 4 of 4 Received: Comments: 36 Question: Ken, who is Hispanic, applies for a job at Local Plant, Inc. The interviewer says that Local Plant . does not hire Hispanics. This is Your Answer: imp ermi ssibl e disc rimi nati on on the basi s of race. C ORR ECT perm issib le discr imin ation beca use it is an hone st resp onse. perm issib le discr imin ation beca use it occu rs befo re Points 4 of 4 Received: Comments: 37 Question: Pat files an employment discrimination suit against Quantity Properties, Inc. (QPI), under Title VII . of the Civil Rights Act of 1964, based on QPI's discharge of Pat. In these circumstances, relief under Title VII may include Your Answer: dam ages only. dam ages or job rein state men t. C ORR ECT job reins tate ment only. neith er dam ages or job reins tate ment . Points 4 of 4 Received: Comments: 38 Question: Amy wants to go into the business of construction contracting. Among the reasons that would . probably convince Amy to set up her business as a sole proprietorship would be Your Answer: its grea ter orga niza tion al flexi bilit y. C ORR ECT ANS WE R its limit ed liabil ity. IN CO RR ECT its perp etual exist ence. the ease of trans ferri ng the busi Points 0 of 4 Received: Comments: 39 Question: Alan and Beth agree while talking on the phone to form a partnership to run a carpentry shop. Their . partnership agreement is legally binding Your Answer: only if a third pers on kno ws of the agre eme nt. only if the agre eme nt is redu ced to writi ng. only if the parti es exch ange valid cons idera tion. with out mor e. Points 4 of 4 Received: Comments: 40 Question: Solid Appliances, Inc., is a private, for-profit corporation that (1) was formed for the purpose of . manufacturing and distributing a newly patented kitchen appliance, (2) is owned by five shareholders, (3) is subject to double taxation, and (4) has made no public offering of its shares. Solid Appliances is Your Answer: an S corp orati on. a close corp orati on. C ORR ECT a nonp rofit corp orati on. a prof essio nal corp orati on. Points 4 of 4 Received: Comments: 41 Question: Jill and Kelly are architects and members of Jill & Kelly, P.C., a professional corporation. Jill . supervises Lucy, an employee of the firm. As a member, Jill Your Answer: is pers onall y liabl e for any tort com mitte d by Kell y. has limit ed liabil ity for any of Kell y's acts of malp racti ce. has no liabil ity for any torts com mitte d by Kell y or Lucy . Points 4 of 4 Received: Comments: 42 Question: Sam and Tina incorporate their business as U.S. Products, Inc. The first board of directors may be . appointed by the firm's Your Answer: boar d of direc tors. inco rpor ator s. C ORR ECT offic ers. shar ehol ders. Points 4 of 4 Received: Comments: 43 Question: Bart and Cary are directors of Digital Designs, Inc. Voting by Bart and Cary at corporate directors' . meetings Your Answer: may be cum ulati ve. may be done by prox y in all state s. mus t be done in pers on. C ORR ECT all of the abov e. Points 4 of 4 Received: Comments: 44 Question: Holly is a shareholder of International Corporation (IC). Holly might incur personal liability for IC . obligations if she Your Answer: buys nopar shar es. buys stoc k for less than its state d valu e. C ORR ECT ANS WE R fails to fulfil l her fiduc iary duty to the majo rity shar ehol ders. recei ves a Points 0 of 4 Received: Comments: 45 Question: Gary owns Handy Hardware Store. He sells the store to Irma and Jake, who write on the documents . of transfer that they own the store as "joint tenants with right of survivorship, and not as tenants in common." Irma and Jake Your Answer: are coown ers of the stor e as joint tena nts. C ORR ECT are coown ers of the store as tena nts in com mon. are coown ers of the store in fee simp le with Gary . Points 4 of 4 Received: Comments: 46 Question: Patty's parents give her a car as a graduation present. While Patty spends the summer in Europe, her . friend Rita agrees to keep the car in her garage. On Patty's part, this is acquisition of property by Your Answer: bail ment . IN CO RR ECT capt ure. find. gift. C ORR ECT ANS WE R Points 0 of 4 Received: Comments: 47 Question: Ira is declared mentally incompetent. Jay, Ira's son, is named his guardian. At Jay's insistence, Ira . transfers his assets to Jay "for safekeeping." A court might conclude that this gift is not effective on the ground that there was no Your Answer: acce ptan ce. deliv ery. don ative inte nt. C ORR ECT dono r's ackn owle dgm ent. Points 4 of 4 Received: Comments: 48 Question: Lee wants to give a pearl necklace to his sister May. Lee delivers the necklace to Nora and tells her . to give it to May. Nora delivers the necklace to May the next day. In these circumstances, the gift is Your Answer: effec tive whe n Lee deliv ers the neck lace to Nora . effec tive whe n Nor a deliv ers the neck lace to May . C ORR ECT not effec tive beca use Lee did not pers onall y ackn owle Points 4 of 4 Received: Comments: 49 Question: Jennifer finds a set of luggage that she believes may be subject to an estray statute. Estray statutes . apply to Your Answer: aban done d prop erty. baile d prop erty. IN CO RR ECT lost prop erty. C ORR ECT ANS WE R misl aid prop erty. Points 0 of 4 Received: Comments: 50 Question: Bob rents a golf cart at Country Club Golf Course. The brakes are worn, and while Bob is driving . the cart, they fail. The cart crashes into a tree, and Bob is injured. Country Club could have discovered, with reasonable diligence, that the brakes were worn. Liability for Bob's injuries most likely rests with Your Answer: Bob and Cou ntry Club . Bob only. Cou ntry Clu b only. C ORR ECT neith er Bob nor Cou ntry Club . 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