Multiple Choice Answers

Which form of real property ownership includes the greatest degree of ownership?
Fee simple subject to condition subsequent.
Fee simple determinable.
Fee simple absolute.
Absolute life estate.

Which of the following is a false statement?
A franchisor can impose certain quality standards on a franchisee.
Some business forms and organizations in the U.S. offer limited liability to their owners and investors.
Many states in the U.S. now permit business persons to operate as a limited liability company (LLC).
No capital can be raised through an offering of stock in the U.S. without the principals first registering the shares with the Securities and Exchange Commission and obtaining the agency’s approval.
Under the UCC, if a purported acceptance to an offer contains additional terms:
It is treated as a rejection and counteroffer.
If both parties are merchants, there is a contract and the additional terms may or may not become part of the contract.
If neither party is a merchant, there is no contract.
It is treated as a counteroffer, but it does not reject the original offer.
Assuming the existence of a complete and final written contract, the parol evidence rule generally would prohibit evidence of:
Prior or contemporaneous oral statements that alter, contradict, or add to the terms of the contract.
Prior or contemporaneous oral statements that explain ambiguities in the contract.
Subsequent oral statements that modify the contract.
A and C.

Which of the following is a false statement?
To exercise the power of acceptance, the common law requires an offeree to accept the offeror’s offer unconditionally and unequivocally.
The death of a party to a contract will always result in the automatic termination of that contract since it would not be right to burden the surviving spouse or other heirs with business matters.
The common law “mirror image” rule generally requires an acceptance of an offer to adhere exactly to the terms of the offer.
A counteroffer under the common law does terminate an offer.

A non-essential term of an offer under the common law may be the
Subject Matter

Corporations typically are required to hold shareholders’ meetings at least:
Every six months.
Twice a year, but they are not required to be held every six months.