Which of the following transactions correctly

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5. Which of the following transactions correctly illustrates the doctrine of substantial performance? A. Blair ordered a dozen blue chairs from Kyle, but Kyle delivered a dozen red chairs. B. Leslie painted an entire room but failed to put the electrical outlet covers back on. C. A contract required hair styling to be done to Toby's satisfaction, but Toby was, in good faith, dissatisfied with the completed result. D. A dentist competently completed the extraction of Lee's tooth but mistakenly pulled the wrong one. Item ID: 60099 Key: B REG.CSO.20190701: REG.002.002.002 REG.SSO.20190701: Application:2 124
6. Which of the following circumstances generally will cause a discharge of contractual duties by operation of law? A. Novation. B. Accord and satisfaction. C. Anticipatory repudiation. D. Impossibility of performance. Item ID: 59495 Key: D REG.CSO.20190701: REG.002.002.003 REG.SSO.20190701: Remembering and Understanding:1 125
7. Brown cosigned Royal's $50,000 note to State Bank. If Royal is later adjudicated mentally incompetent, what would be Brown's liability on the note? A. Liable to pay State on the due date of the note. B. Liable to pay State only if State first seeks payment from Royal. C. Not liable to pay State because Royal's incompetency discharges Royal as a surety. D. Not liable to pay State unless Brown was a compensated surety. Item ID: 56997 Key: A REG.CSO.20190701: REG.002.003.001 REG.SSO.20190701: Application:2 126
8. Which of the following statements is correct regarding the Federal Unemployment Tax Act? A. An employee, who resigns, regardless of cause, is eligible for unemployment benefits. B. The federal unemployment system is funded by both employer and employee taxes. C. The Act is intended to assist workers who are permanently out of work and need assistance in supporting themselves. D. The unemployment insurance system is administered by the states through their employment laws. Item ID: 58727 Key: D REG.CSO.20190701: REG.002.004.002 REG.SSO.20190701: Remembering and Understanding:1 127
9. A partner in a general partnership is usually not entitled to which of the following? A. To participate in management. B. To review accounting records. C. To enter into a contract with a third party without the consent of the other partners. D. To be liable only for personal negligence. Item ID: 73107 Key: D REG.CSO.20190701: REG.002.005.002 REG.SSO.20190701: Remembering and Understanding:1 128
10. Which of the following statements is correct regarding a shareholder’s right to inspect corporate books and records? The right A. Is absolute. B. Is conditioned upon the demanding shareholder owning at least $5,000 worth of stock. C. Requires that the demand to inspect be for a proper purpose. D. Exists only when fraud or illegality is alleged. Item ID: 60325 Key: C REG.CSO.20190701: REG.002.005.002 REG.SSO.20190701: Remembering and Understanding:1 129

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