1. A share in a corporation represents the following, EXCEPT:

A multiple-choice question with one possible answer.(Required)

1. The interest of a shareholder in the company
2. The right to place family members and boy/girl friends in the Board of Directors
3. The right to receive dividends
4. The right to share in the assets of the corporation on winding up

2. A corporation possible to do all of the following as a separate legal entity, EXCEPT:

A multiple-choice question with one possible answer.(Required)

1. Be a candidate for public office as a politician
2. Sue in a court and be sued
3. Execute contracts
4. any kind of legal business

3. The advantages of the corporate structure include all of the following, EXCEPT:

A multiple-choice question with one possible answer.(Required)

1. It allows for centralized control and management
2. It allows the investors to hire professional managers
3. It allows for unlimited expansion of growth by issuing and selling shares
4. It allows investors to maliciously pollute the environment and let the corporation take the responsibility

4. Which of the following is NOT a case where a corporation's Shareholders or Directors may be held liable by "piercing the corporate veil"?

A multiple-choice question with one possible answer.(Required)

1. They willingly commit a fraud
2. They deliberately not pay their workers
3. They make a rational business judgment but it results in a loss for the corporation
4. They carelessly allow for "egregious" (very bad) environmental challenge

5. The Directors of a corporation may have broad powers, however, which of the following is NOT a right of the Directors?

A multiple-choice question with one possible answer.(Required)

1. To alter the capital of the corporation without the consent of the shareholders
2. To execute large-scale contracts
3. To decide what to do with the corporation's profits
4. To bring a lawsuit or arbitration claim

6. All of the following are typical officers of a corporation, EXCEPT:

A multiple-choice question with one possible answer.(Required)

1. Treasurer
2. CEO or President
3. Deadly Animals Expert
4. Corporate Secretary

7. The "fiduciary duty" of the corporation's directors and officers include all of the following, EXCEPT:

A multiple-choice question with one possible answer.(Required)

1. To indemnify the corporation for all its losses regardless of the cause
2. To avoid conflicts of interests with the corporation
3. To keep confidential all information acquired about the corporation
4. To act in the best interests of the corporation (no hidden selfish motives or self-dealing)

TORTS

8. A "civil law jurisdiction" is one based on statutory laws as opposed to a "common law" jurisdiction which is based on "judge-made" precedents. However, the term "Civil Law" by itself can also mean which of the following?

A multiple-choice question with one possible answer.(Required)

1. law used in polite society
2. non-military law
3. the laws governing matters between private persons - citizens - as opposed to "Criminal Law" which concerns matters between the State and private persons
4. laws allowing private persons to sue government officials

9. You can obtain "damages", i.e., monetary compensation for which of the following in a tort cause of action?

A multiple-choice question with one possible answer.(Required)

1. pain and suffering
2. punitive damages
3. loss of consortium
4. all of the above

10. All of the following are true about the differences between a tort lawsuit and a contract lawsuit, EXCEPT:

A multiple-choice question with one possible answer.(Required)

1. a tort lawsuit and a contract lawsuit may have different statutes of limitations
2. damages in a tort lawsuit may be for far beyond actual economic damages (i.e., medical bills, medicine costs, etc.)
3. you can sue Government-owned companies for tort but not for breach of contract
4. a contract lawsuit compensates you for damages for a breach of a duty in a contract; a tort lawsuit compensates you for a breach of a universal duty that we all have not to harm each other

11. To establish the liability of the Defendant for negligence, you must show all of the following, EXCEPT:

A multiple-choice question with one possible answer.(Required)

1. there was a duty of care and the Defendant breached that duty
2. the Defendant must have willfully and maliciously wished the harm to occur
3. the breach of the duty of care was the proximate cause of the harm to the Plaintiff
4. the Plaintiff suffered actual harm that can be compensated monetarily

12. Which of the following could be an example of "false imprisonment"?

A multiple-choice question with one possible answer.(Required)

1. 1.locking someone in a toilet
2. 2.ordering someone to stand in the corner
3. 3.a store detective detaining someone for "shoplifting" without reasonable cause
4. 4.all of the above

13. Harming a person's business reputation by spreading falsehoods can be an example of:

A multiple-choice question with one possible answer.(Required)

1. mislabeling
2. defamation
3. promissory estoppel
4. trespass to property

14. Violations of certain kinds of legislation or regulations can create "Statutory torts," that is, private persons can sue the violator in a private tort suit. The following are examples of possible "statutory torts," EXCEPT:

A multiple-choice question with one possible answer.(Required)

1. regulations governing proper food-handling
2. suing OJ Simpson for wrongful death
3. environmental regulations
4. workplace safety regulations

CONTRACT LAW

15. Contract Law's aim is best described as which of the following?

A multiple-choice question with one possible answer.(Required)

1. Contract law seeks to compensate the Plaintiff for the emotional distress caused by the Defendant's breach of Contract
2. Contract Law seeks to punish the Defendant for breaching the contract
3. Contract Law seeks to restore the Plaintiff and the Defendant to their original positions before the contract was executed
4. Contract Law seeks to compensate the Plaintiff for all of his/her losses directly resulting from the breach of contract, this can also include lost profits

16. The "Statute of Frauds" is which of the following?

A multiple-choice question with one possible answer.(Required)

1. alaw that prohibits frauds in contractual agreements
2. a law that requires certain contracts to always be in writing, for example real estate purchases or sales contracts worth over $500
3. a law that sets forth the elements for vitiating contracts
4. a local law doctrine that disallows contracts for immoral or anti-societal purposes

17. "Privity of Contract" means which of the following?

A multiple-choice question with one possible answer.(Required)

1. generally, contracts can only be enforced by the parties to the contract and not be third persons, however, there may be exceptions such as cases involving defective products (product liability)
2. in order to protect confidentiality, contracts must be private in nature and not revealed to the public
3. contracts can only be between private persons and never between companies or state agencies
4. privity requires that the parties expressly declare their intent to be bound by the contract

18. "Promissory Estoppel" is best described as which of the following?

A multiple-choice question with one possible answer.(Required)

1. persons must be "stopped" from making illegal promises
2. persons must promise each other not to breach their duty of care in addition to their other contractual duties
3. a person may be legally required by a court to keep his/her promise if the promise was clearly made and the person to whom the promise was made (the "promisee") reasonably relied on the promise to his/her detriment
4. a doctrine that allows a Plaintiff to sue the Defendant both in tort and contract for failing to keep his/her promise

19. The following are examples of equitable remedies EXCEPT:

A multiple-choice question with one possible answer.(Required)

1. punitive damages
2. specific performance
3. compelling performance
4. injunction

20. Which of the following is NOT an element of a valid contract:

A multiple-choice question with one possible answer.(Required)

1. consideration
2. offer and acceptance
3. inebriation
4. meeting of the minds

21. Acontract can be shown to be "unconscionable" and thus, unenforceable due to the following EXCEPT:

A multiple-choice question with one possible answer.(Required)

1. unequal bargaining power
2. duress
3. statute of frauds
4. undue influence

CONTRACT LAW IN BUSINESS

22. "FIDIC" contracts refer to which of the following?

A multiple-choice question with one possible answer.(Required)

1. fiduciary relationships
2. confidentiality agreements
3. franchise agreements
4. construction contracts

23. All of the following are true about franchise agreements, EXCEPT:

A multiple-choice question with one possible answer.(Required)

1. 1.the franchisee is the direct employee of the franchisor and not an independent contractor
2. 2.the franchisor may contractually require the franchisee to use specific ingredients, decorate the business premises in a certain way and make the employees wear special uniforms
3. 3.the franchisor provides the franchisee with technical expertise, marketing and advertising advice and product control
4. 4.the franchisor reduces the franchisee's business risk by providing "instant goodwill"

24. All of the following are true about Joint Venture Agreements, EXCEPT:

A multiple-choice question with one possible answer.(Required)

1. Joint Ventures can be for a limited purpose or for a long-term purpose
2. a Joint Venture Agreement usually contains an equity (percentage of ownership) interest provision
3. a Joint Venture can never be formed as a corporation
4. a Joint Venture can be international, that is, the Joint Venture companies can be from different countries

25. Which of the following can prove the existence of a verbal business agreement?

A multiple-choice question with one possible answer.(Required)

1. witnesses testifying about the parties' conversations
2. evidence of the parties' past dealings
3. evidence of a party's action that implies the existence of an agreement
4. all of the above

26. Which of the following is NOT true about business contract negotiations?

A multiple-choice question with one possible answer.(Required)

1. 1.the parties can execute a non-disclosure agreement (NDA) and/or a memorandum of understanding (MOU) that are legally binding whether or not the parties execute the final contract
2. 2.the parties may have to perform environmental impact studies or negotiate with banks and insurance companies even though there is no final contract
3. 3.everything the parties say to each other during negotiations can be presented in court to prove the parties` intentions for the final contract
4. 4.simply agreeing to separate terms during negotiations does not constitute a "mini offer and acceptance"

27. Which of the following is an example of a written business contract:

A multiple-choice question with one possible answer.(Required)

1. a covenant not to compete
2. signing up for iPhone services
3. a franchise agreement
4. all of the above

28. Which of the following can constitute appendices to final main business contract:

A multiple-choice question with one possible answer.(Required)

1. 1.technical specifications
2. 2.deadly animals` characteristics in an animal-handling contract
3. 3.drawings, blueprints, dimensions
4. 4.all off the above

29. The fee paid under a licensing agreement allowing for the use of intellectual property is called:

A multiple-choice question with one possible answer.(Required)

1. royalty
2. patent
3. dividend
4. ADR

30. Aclause in a business contract that allows for a party to be excused for temporary non-performance of its contractual duties due to natural disasters, strikes, accidents, etc. is called:

A multiple-choice question with one possible answer.(Required)

1. mediation clause
2. Force Majeure clause
3. confidentiality clause
4. none of the above