MCQs

Who is protected under the Age Discrimination in Employment Act?
a. All workers who are age 40 or over.
b. All workers of any age who are discriminated against because they are thought to be too old.
c. All workers who are in a job in which they were 40 years of age or over when hired.
d. Any worker who is replaced with a younger worker.

Which of the following is true regarding contracts?
a. A contract that is completely performed by all parties is called an executory contract.
b. A contract that has been completely performed by one party, but not the other, is called an executed contract.
c. A contract that has been performed by A but not by B is executory as to B and executed as to A.
d. To be enforceable, a contract must be executed.

A promoter’s preincorporation contract:
a. binds only the promoter unless adopted by the corporation.
b. binds both the promoter and the corporation.
c. binds only the corporation.
d. binds neither the promoter nor the corporation if rejected by the corporation.

A contractual clause establishing an amount of prospective damages for breach is best described legally as
a. Mitigation of damages
b. Liquidated damages
c. Against the law
d. Limitation of damages

Which of the following in not true?
a. A minor can still disaffirm a contract for a reasonable time after reaching majority.
b. An adult cannot disaffirm a contract made with a minor.
c. A minor must pay the agreed price on contract for necessaries.
d. What constitutes a necessary varies over time and can differ from state to state.

Pat and Don submit their dispute to binding arbitration. A court can set aside the arbitrator’s award if
a. Don is not satisfied with the award.
b. Pat is not satisfied with the award.
c. the award involves at least $75,000.
d. the award violates public policy or if bad faith was involved.

Which is FALSE about a Limited Liability Company (LLC)?
a. No formalities are required by state statute in the forming of an LLC; rather, a simple LLC agreement will suffice to establish legally the LLC.
b. An LLC can be a member-managed or a manager-managed LLC.
c. The name of the LLC must include the term “limited liability company” or “LLC.”
d. The members of an LLC are not personally liable for the debts and obligations of the LLC (beyond their original contributions to the LLC).

Which of the following is true about the difference between express and implied warranties?
a. Express warranties apply to merchants and implied warranties apply to all sellers of goods.
b. Express warranties apply to merchants and implied warranties apply to nonmerchants.
c. Express warranties arise from conduct of the parties and implied warranties arise automatically by operation of law.
d. Implied warranties cannot be disclaimed, but express warranties can be disclaimed.

The doctrine in negligence law which shifts the burden of proof from the plaintiff to the defendant is:
a. Negligence per se.
b. Res ipsa loquitur.
c. Apparent negligence.
d. Good Samaritan.

Under typical state corporation law a director may be removed:
a. only for cause.
b. with or without cause but only in a close or closely-held corporation.
c. with or without cause by the shareholders
d. only if expressly permitted by the articles of incorporation.

Which of the following is a false statement?
a. The breach of duty element in the test for negligence liability in the U.S. is governed predominantly by the reasonable person standard.
b. The doctrine of res ipsa loquitur can apply if an event causing the harm normally does not occur in the absence of negligence.
c. A battery occurs only if the victim suffers actual serious physical harm, that is, the victim is “battered.”
d. One may be able to recover damages for emotional distress in a tort lawsuit for negligence.

Which of the following is true?
a. Voting trusts and voting agreements both require the transfer of stock certificates to a trustee.
b. In a voting trust, the shareholder grants the trustee the right to vote the shares, but in a voting agreement the shareholders vote their own shares.
c. Voting agreements, but not voting trusts, must be accompanied by proxies executed by the shareholders.
d. Voting trusts are irrevocable, while voting agreements can be either revocable or irrevocable.

Bill makes an offer to Ann. If Bill dies before Ann can reply, the offer
a. remains open.
b. remains open until Ann learns of Bill’s death.
c. remains open until Ann replies.
d. terminate immediately.

In order to have an investment contract which is regulated by the SEC, which of the following is required?
a. An investment of money.
b. A common enterprise.
c. The expectation that profit from the enterprise will result from the efforts of others.
d. A, B and C.