1.Frank enters into a written franchise agreement to open a "Grande Burrito" store.Grande Burrito represents that Frank will realize at least $500,000 in gross sales during his first year.During Frank's first year he only brings in $83,000 in gross sales.What FTC Franchise Rule has most likely been violated?

a.There was not a reasonable basis for the gross sales representation.

b.Grande Burrito did not indicate whether the anticipated gross sales were based on actual data or hypothetical examples.

c.None of the above.

d.a. and b.

2.Bars, restaurants, and bartenders can be held liable for serving an already intoxicated

person under:

a.Strict liability

b.Intentional tort.

c.Dram shop acts.

d.None of the above.

3.In corporate law, acts of a corporation that are beyond its express and implied powers are

_______________ acts and an ___________ is often sought by shareholders or the secretary of state.

a.Illegal/injunction.

b.Ultra vires/agreement.

c.Ultra vires/injunction.

d.Illegal/agreement.

4.What is true about incorporation?

a.A corporation must prepare and file articles of incorporation in every state in which it does business.

b.A corporation may prepare and file articles of incorporation in every state in which it does business.

c.A corporation only prepares and files articles of incorporation in the one state in which it decides to incorporate.

d.None of the above.

5.A Costa Rica corporation doing business in the United States is a/an:

a.Domestic corporation.

b.Foreign corporation.

c.Alien corporation.

d.De Jure corporation.