Test 3
4 Pages

Test 3

Course Number: FINA 3331, Spring 2012

College/University: Texas A&M...

Word Count: 1808

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1. Pat, a salesperson for Quality Textiles, Inc., Shows Rosa, a fabric buyer for Style Clothing Company, samples of cloth, stating that any shipment will match the samples. This statement is: A. An express warranty. 2. AAA Appliance salespersons tell potential customers that AAA products are excellent. This is D. sales talk or puffing 3. Smith Manufacturing Company makes and sells cell computers. In deciding...

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Pat, 1. a salesperson for Quality Textiles, Inc., Shows Rosa, a fabric buyer for Style Clothing Company, samples of cloth, stating that any shipment will match the samples. This statement is: A. An express warranty. 2. AAA Appliance salespersons tell potential customers that AAA products are excellent. This is D. sales talk or puffing 3. Smith Manufacturing Company makes and sells cell computers. In deciding whether the computers are merchantable, a curt would focus on whether B. the computers are fit for the ordinary purpose for which such goods are used 4. Jack, a lawyer, goes to Smith Manufacturing to buy a computer. He states that he needs a computer that runs the latest version of a legal software program that he uses. The computer does not run the software. Smith has violated. A. the warranty of fitness for a particular purpose 5. All-Rite Appliance Store advertises freezers at a Special Low Price of $99. When Bob tries to buy one of the freezers, Cathy, the salesperson, tells him that they are all sold and no more are obtainable. Cathy adds that All-Rite has other freezers for $1,299. This is B. bait-and switch advertising 6. Fun Stuff Corporation manufactures skateboards, which it sells to Good Times Stores. Good Times sells the skateboards to consumers, including Holly, In a product liability suit based on strict liability due to a defect in the skateboards, Holly may recover from: B. Fun Stuff or Good Times. 7. Jack revives unsolicited books in the mail from Baby Book Sellers, Inc. Baby Book Sellers includes a note that says that Jack can keep the books for $9.95 or send them back in a prepaid mailer. Jack A. may keep the merchandise without any obligation to the Baby Book Sellers 8. Joyce works for Kappa Services Corporation as an independent contractor, and not as an employee, if C. Kappa does not control Joyces work 9. Dana, an agent for Evan, signs an agreement on Evans behalf but neglects to tell Evan that the agreement requires the payment of certain taxes. The government prosecutes Evan for failing to pay the taxes. Evan is A. liable, because Danas knowledge is assumed to be known by Evan 10. Lynn is driving a truck for a locally owned bottler of Duff Cola. The truck is owned by the local bottler, but is adorned with Duff logos. Lynn negligently drives the truck into Jennis car. Jenni may sue the Duff Cola. Inc., (even though it did not own the truck) under what theory of liability? A. apparent authority 11. Molly is a traveling salesperson. While driving her employers vehicle to call on a customer, decides to stop at the post office-which is one block off of her rout, to mail a personal letter. As she approached the post office, she hit Erics parked car. Will Mollys employer likely be liable for the accident? A. yes, because Molly was on a detour form work. 12. Moes Tavern owned by Moe employs Bart as a bouncer. Without Moes knowledge, but while otherwise acting within the scope of employment, Bart commits a battery on Milhous. For the crime of battery, the state can successfully prosecute C. Bart only 13. In the above question, if Millhouse were to bring a civil battery lawsuit, who would be liable? B. Moe or Bart 14. 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 A. automatically 15. Fred hires Jim, a real estate broker, to act as her agent to sell her land for $10,00. Before jim can sell the land, Gred discovers that the land is full of oil. Fred, due to this new discovery gets an appraisal and finds out that his land is worth $1,000,000. The agency agreement is likely D. terminated by operation of law 16. Jay works for Kappa Electronics Company. While unloading a truck, Jay suffers an injury. Jay will be compensated under state workers compensation laws only if C. Jays injury was accidental and occurred on the job or in the course of employment 17. In the above question, Jay also sues Kappa for pain and suffering of $100,000. Jay will likely recover D. nothing 18. Pam is an administrative employee of Quality Assurance Company. Social Security contributions to help pay for Pams loss of income on retirement are made by B. Pam and Quality Assurance 19. Don quits his employment at Consolidated Computers, Inc., who has five hundred workers. Don wants to continue his health insurance with Consolidateds Group insurance plan. Don: A. Will be able to continue coverage for 18 months under COBRA coverage and he will have to pay for it himself. 20. Caf Dining, Inc., employs one hundred workers in at three locations in two states. Under the Family and Medical Leave Act of 1993, Cage must provide its employees, during any twelve-month period, family or medical leave of up to B. twelve weeks. 21. Pam applies for a job at a Quik Mart store but is not hired due to her gender. Pam files a suit against Quik Mart. A prima facie case (discrimination is shown on its face) is established. Pam. D. loses the suit unless Pam asserts an appropriate defense 22. Standard Company denies a promotion to Tony, a member of a minority, when he to fails pass a required test. Few members of minorities have passed the test. The number of promoted employees who are members of minorities doer not reflect their percentage in the local labor market. In a suit against Standard, if Tony can show a connection between the tast and the number of promoted minority members. D. no evidence of discriminatory intent is necessary 23. Lloyd and Molly are employees of New Tech Corporation. They have the same job, Under the Equal Pay Act, New Tech can legitimately pay Lloyd more than Molly on the basis of B. Lloyds greater production or seniority 24. Company replaces Vera, a forty-five-old employee, with Wendy. Vera files a suit against United under the Age Discrimanation in Employment Act. To establish a prima facie case, Vera must show that she is D. qualified for the position 25. Abel is an alcoholic, Baker is morbidly obese, and both work for Charlie Company. Considered disabled under the Americans with Disabilities Act. A. are Abel and Baker 26. Tina owns United Enterprises, a sole proprietorship. In a sole proprietorship, the liability of the owner is D. unlimited 27. Rob, Sue, and Tim agree to form a computer peripherals mail-order business. Rob agrees to manage the business and to assume full personal liability. Sue and Tim agree to invest in the firm but to be liable only to that extent. These three have formed D. a limited partnership 28. Marie is considering forms of business organization for her law firm. One advantage of the limited liability partnership form is that it allows partners to avoid personal liability for B. the malpractice of other partners 29. Rick buys a franchise from Sports Club Corporation. If their agreement is like most franchise agreement, it will specify that Sports Club can terminate the franchise C. for cause only 30. John and Fred enter into a general partnership to sell chewing gum. John puts in $500 and Fred puts in $100. No partnership agreement is written. Under the Uniform Partnership Act (UPA) John has: C. Equal say as to the operation as Fred 31. In the question above, the business makes a profit of $6,000. How would this be distributed? B. John gets $3,000. Fred gets $3,000 32. Micro Chips. Inc., is incorporated in the state of New Jersey and is doing business in the state of New York. In New York, it is properly referred to as B. a foreign corporation 33. Eve and Frank want to market a new line of cooking appliances. To be taxed the same as a partnership but enjoy limited liability, they should form C. an S corporation 34. Nina is a director of Omega, Inc. Under the standard of due care owed by directors of a corporation, Ninas decisions must be C. informed and reasonable 35. Eve is a director of Fine Staff Corporation. Without informing Fine, Eve goes into business with Great Things, Inc., in competition with Fine. Eve is liable for breach of D. the duty of loyalty 36. World Tech Corporation is in the process of ending its existence. The legal death of the artificial person of the corporation is known as A. termination 37. Top Comp, Inc. invested millions of dollars in a promising new wireless computer. However, the product did not produce the expected sales, and now the corporation is bankrupt. Angry stockholders sue the directors personally for making such a poor decision. Result? B. The shareholders lose. The directors are protected by the business judgment rule. 38. Which is a false statement about shareholder voting rights in a corporation? C. shareholders must be personally present at meetings to vote on agenda items 39. Jay is a general partner and Kim Lon are limited partners in a limited partnership. Jay is liable for the firms debts C. to the fullest extent without limitation 40. In the above example, Kim and Lon are liable: A. only to the extent of their investment in the firm 41. X company buys Y company and the resulting company is Y company. X Company and Y company have A. gone through a merger 42. Kelly owns 10,000 shares, Vanessa owns 5,000 shares and Laura owns 2,000 shares of stock in a small corporation owned by the three of them. At the shareholders meeting, how are the votes counted? A. Each shareholder gets as many votes as she has shares of stock 43. In simple terms, an S corporation could be defined as: B. a corporation whose shareholders have limited liability but is taxed like a partnership 44. Fred is on the Board of Directors of Smith Corporation, an oil company. Joe approaches Fred and says that he has some land that has oil on it, and will sell it for $10,000 per acre. Fred does not present this offer to Smith, but instead buys the land himself. Fred: A. has done nothing wrong since Joe approached Fred B. Has usurped a corporate opportunity of Smith Corp C. may buy the land if he presents this offer the rest of the Board, and they decide not to buy the land D. both b & c 45. ABC Corp has made a profit of $1,000,000 in 2008. The Board of Directors decides not to pay dividends that year. Which of the following is not true? D. The Board of Directors does not have the power to declare dividends; this power is left to the shareholders.

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