Business Law

Spring II 2012 Exam 2 MGMT 5606031

Instructions

Exam 2 is a take home open-book exam. The completed test must be submitted to me electronically on Blackboard through Turnitin. A file has been created in the Course Information folder on Blackboard for you to submit your completed exam. The exam must be submitted by 6:00 pm on Tuesday, May 15, 2012. No late submissions will be accepted.

All answers must be made with your laptop or computer. You must BOLD and Underline your chosen answer for the True/False and Multiple Choice questions and type out your complete answer to the Short Answer and Short Essay questions. Handwritten answers will receive no credit.

Exam 2 has a total of 80 questions and is worth a total of 100 points. There are 68 True/False and Multiple Choice questions worth 1 point each and 10 Short Answer questions worth 2 points each. There are two Short Essay questions, each worth 6 points.

True/False: (1 point each)

1. Sellers who have voidable title always have the power to confer good title to purchasers.

True False

2. If delivery of goods is to be made by the seller without moving the goods, title passes at the time and place of contracting under the UCC even if the goods have not been "identified" to the contract.

True False

3. If a liquidated damages clause is not enforceable because it is unconscionable, the injured party is barred from recovering actual damages.

True False

4. Title VII prohibits all forms of discrimination in the workplace.

True False

5. A principal may transact, through an agent, any business the principal lawfully could do in person.

True False

6. Generally, retention of the premium for an unreasonable time by the insurer does not constitute acceptance by the insurer.

True False

7. Many courts allow a third party to rescind a contract when the person has relied on a misrepresentation by the agent even though the contract contains an exculpatory clause.

True False

8. States are preempted by the federal government from governing such matters as how soon wages must be paid to the employee and the garnishment of wages.

True False

9. An agent is entitled to receive his commission on sales completed after the termination of the agency if the agent is the procuring cause of the sales, even if the written agency agreement provides that commissions are earned only on sales completed during the term of the agency.

True False

10. LLCs are not subject to "piercing the corporate veil" concept.

True False

11. Nick has inherited some money and wishes to invest in a local business. Nick is finishing his college education, and only wants to be an inactive investor in the business. Given Nick's desire, a limited partnership would be a compatible business organization for his investment.

True False

12. People who are involved in a nonprofit association are considered partners.

True False

13. Generally, retention of the premium for an unreasonable time by the insurer does not constitute acceptance by the insurer.

True False

14. Absent an agreement to the contrary, an agent is prohibited from competing with the principal after termination of the agency.

True False

15. A court may pierce the corporate veil if a corporation defrauds its creditors by not having sufficient assets available to meet expected claims.

True False

16. A corporation does not need any special consent by the state to dissolve.

True False

17. An insurance policy taken out by a minor is not voidable at the election of the minor.

True False

18. A voluntary petition in bankruptcy can only be filed by a corporation.

True False

19. Federal antitrust laws apply to behavior the substantially affects both interstate and intrastate commerce.

True False

20. Since the Clayton Act deals with probable harms to competition, there is criminal liability for Clayton Act violations.

True False

Multiple Choice: (1 point each)

21. Under the UCC, if the contract is silent about the place for delivery, the goods are to be delivered:

A. At the site of the goods.

B. At the seller's place of business.

C. At the seller's residence, if it is not his place of business

D. At any place the seller deems convenient

22. Under the UCC, identification of the goods to the contract:

A. Causes title to pass at the time and place of contracting if delivery is to be made without moving the goods

B. Occurs when the seller makes it verbally clear that the goods are those to which the contract refers

C. Cannot result from actions of the seller, such as setting aside or marking the goods

D. Occurs when the seller gives samples of the goods to the buyer

23. A seller who has voidable title:

A. Can pass good title to a good faith purchaser for value