Question 1

1pts

If a trust is created to take effect within the lifetime of the settlor, it is atestamentary trust.

Group of answer choices

True

False

Flag question: Question 2

Question 2

1pts

The right to sue for damages sustained from a defective product is reserved exclusively to the original purchaser of the product.

Group of answer choices

True

False

Flag question: Question 3

Question 3

1pts

An individual who has been authorized to vote the share of another stockholder is said to be voting by: ______.

Group of answer choices

trust.

proxy.

agency.

estoppel.

Flag question: Question 4

Question 4

1pts

The holder of a claim that is the subject of a bona fide dispute may be counted as a petitioning creditor.

Group of answer choices

True

False

Flag question: Question 5

Question 5

1pts

Jurisdiction over bankruptcy proceedings is vested in the federal district courts.

Group of answer choices

True

False

Flag question: Question 6

Question 6

1pts

Suppose a Ford truck slams into a parade and the driver claims the brakes failed.All of the following are potentially liable in a defective product suitexcept:

Group of answer choices

the Ford manufacturer.

the Ford dealer.

the manufacturer of the brakes.

the bystanders

Flag question: Question 7

Question 7

1pts

Aliving will, now legal in most states, provides that if the testator becomes unable to express his or her wishes and is in an irreversible, incurable medical condition, he or she does not want life-sustaining medical treatments.

Group of answer choices

True

False

Flag question: Question 8

Question 8

1pts

Any warranty that does not provide the complete protection of a full warranty is called a warranty in breach.

Group of answer choices

True

False

Flag question: Question 9

Question 9

1pts

Suppose Bob dies intestate leaving Dina, his a widow, and two children, Ed and Fred, with five grandchildren.If the estate is distributedper stirpes:__________.

Group of answer choices

Dina will receive one-half of the estate, and Ed and Fred will each receive one-fourth.

the grandchildren will receive one-fifth of Ed and Fred's shares.

Dina will receive the entire estate.

Dina will receive one-half, and the grandchildren will receive the other half.

Flag question: Question 10

Question 10

1pts

A preincorporation subscription to stock is generally treated as an agreement to buy the stock when the corporation is formed.

Group of answer choices

True

False

Flag question: Question 11

Question 11

1pts

The beneficiaries of a decedent are paid prior to debts.

Group of answer choices

True

False

Flag question: Question 12

Question 12

1pts

A trustee can delegate the performance of personal duties.

Group of answer choices

True

False

Flag question: Question 13

Question 13

1pts

The theories of product liability

Group of answer choices

are mutually exclusive.

are set forth exclusively in the common law.

are not mutually exclusive.

are set forth exclusively in the UCC.

Flag question: Question 14

Question 14

1pts

A corporation may be judicially dissolved when its management is deadlocked and the deadlock cannot be broken by the shareholders.

Group of answer choices

True

False

Flag question: Question 15

Question 15

1pts

A debtor is presumed to be insolvent on and during what number of days immediately preceding the date of the filing of a bankruptcy petition?

Group of answer choices

30

120

60

90

Flag question: Question 16

Question 16

1pts

A corporation may properly exist without a name.

Group of answer choices

True

False

Flag question: Question 17

Question 17

1pts

State intestacy statutes commonly provide for distribution in the following order: __________.

Group of answer choices

spouse,lineals, parents, collateral heirs.

spouse, lineals, collateral heirs, parents.

spouse, lineals, collateral heirs, parents.

spouse, parents, lineals, collateral heirs.

Flag question: Question 18

Question 18

1pts

Thebalance sheet testis merely a comparison of assets to liabilities without considering whether the debtor will be able to meet future obligations as they become due.

Group of answer choices

True

False

Flag question: Question 19

Question 19

1pts

Where a testatrix executes a will and later has a child: __________.

Group of answer choices

many states hold that the will of the testatrix is partially revoked by operation of law to provide a share to the after-born child.

a new will must be executed because the birth voids the original will.

the child is prohibited by law from receiving anything from the estate.

the after-born child takes a share by escheat.

Flag question: Question 20

Question 20

1pts

When a person dies with a will, usually the probate judge names who the administrator of the estate.

Group of answer choices

True

False

Flag question: Question 21

Question 21

1pts

A holder of a single share of stock who objects to a merger has the power to stop the merger.

Group of answer choices

True

False

Flag question: Question 22

Question 22

1pts

In a merger situation, what is the right of a dissenting shareholder?

Group of answer choices

to enforce a consolidation instead of a merger.

to have their shares appraised and purchased by the corporation.

to block the merger until satisfied regarding its terms.

dissenting shareholders have no rights with respect to a merger.

Flag question: Question 23

Question 23

1pts

Outstanding shares of stock have been issued to stockholders.

Group of answer choices

True

False

Flag question: Question 24

Question 24

1pts

A creditor must only file a proof of claim if the bankruptcy trustee does not know of the existence of the claim.

Group of answer choices

True

False

Flag question: Question 25

Question 25

1pts

After all the creditors have been paid by the trustee, any balance is turned over to the debtor.

Group of answer choices

True

False

Flag question: Question 26

Question 26

1pts

All of the following are correct statements concerning wills,except: __________.

Group of answer choices

A will must be dated.

Self-proved wills are wills that carry a presumption that they are valid if executed according to the requirements set forth by statute.

Attestation is the act of witnessing the execution of a will.

Most states require two (2) witnesses to the execution of the will.

Flag question: Question 27

Question 27

1pts

The requirements to create a trust are uniform.

Group of answer choices

True

False

Flag question: Question 28

Question 28

1pts

If an express warranty is breached:

Group of answer choices

the warrantor is not liable if (s)he honestly believed that the warranty was true.

the warrantor is not liable if due care was exercised in the manufacture or handling of the product

the seller has no warranty obligation if the buyer had the opportunity to inspect the goods before purchasing them.

the warrantor is always liable.

Flag question: Question 29

Question 29

1pts

In certain instances statutes provide that a change of circumstances, such as the marriage of a testator, has the effect of arevocation.

Group of answer choices

True

False

Flag question: Question 30

Question 30

1pts

B-Corporations are for-profit corporations that create public benefits while providing economic returns to their investors.

Group of answer choices

True

False

Flag question: Question 31

Question 31

1pts

When a shareholder brings a _______ action, he is suing on behalf of the corporation itself to enforce a right.

Group of answer choices

preemptive

derivative

primary

deferential

Flag question: Question 32

Question 32

1pts

A trust may be terminated by its own terms.

Group of answer choices

True

False

Flag question: Question 33

Question 33

1pts

A trust is invalid if abeneficiarylacks capacity.

Group of answer choices

True

False

Flag question: Question 34

Question 34

1pts

A disclaimer of warranties made in the manner specified by the Uniform Commercial Code is not unconscionable.

Group of answer choices

True

False

Flag question: Question 35

Question 35

1pts

If a shareholder borrows money and delivers stock as collateral security, the creditor has a perfected security interest in the stock without any filing by the creditor.

Group of answer choices

True

False

Flag question: Question 36

Question 36

1pts

Cumulative voting: ______.

Group of answer choices

decreases the voting power of minority shareholders.

is a right given to participating preferred shareholders.

generally is required or allowed in the election of corporate directors.

is the normal method for shareholder voting on corporate matters.

Flag question: Question 37

Question 37

1pts

When specifically bequeathed property is sold or given away by the testator prior to death, the bequest is consideredredeemed.

Group of answer choices

True

False

Flag question: Question 38

Question 38

1pts

In a merger or consolidation, the surviving corporation generally succeeds to all the rights and property of the predecessor.

Group of answer choices

True

False

Flag question: Question 39

Question 39

1pts

Manufacturers who prepare goods to the buyer's specifications are under exceptionally stringent warranty obligations for fitness for a particular use.

Group of answer choices

True

False

Flag question: Question 40

Question 40

1pts

Ade factocorporation is not accorded legal recognition due to some recognized defect in its incorporation.

Group of answer choices

True

False

Flag question: Question 41

Question 41

1pts

An interest in a corporation is based on the ownership of one or more shares of stock of the corporation.

Group of answer choices

True

False

Flag question: Question 42

Question 42

1pts

Bankruptcy law does not regulate the manner in which the assets of the debtor are distributed; instead, distribution of the debtor's assets is solely within the discretion of the trustee.

Group of answer choices

True

False

Flag question: Question 43

Question 43

1pts

The two most common instruments used to provide the capital structure of a corporation are stocks and bonds.

Group of answer choices

True

False

Flag question: Question 44

Question 44

1pts

A corporation that does business in the state in which it was created is called a(n): ______.

Group of answer choices

alien corporation.

domestic corporation.

foreign corporation.

home corporation.

Flag question: Question 45

Question 45

1pts

Eccentric behavior means that the testator cannot have testamentary capacity.

Group of answer choices

True

False

Flag question: Question 46

Question 46

1pts

When all the distributees stand in the same degree of relationship to the decedent, distribution is madeper capita.

Group of answer choices

True

False

Flag question: Question 47

Question 47

1pts

Ordinarily, a seller's opinion about the good(s) cannot be treated as a warranty.

Group of answer choices

True

False

Flag question: Question 48

Question 48

1pts

A will is very informal and may be created in any reasonable manner.

Group of answer choices

True

False

Flag question: Question 49

Question 49

1pts

If the proper procedure for incorporation has been followed, the corporation has a legal right to exist and is called a(n):______.

Group of answer choices

ultra vires corporation.

corporation by estoppel

de jure corporation.

de facto corporation.

Flag question: Question 50

Question 50

1pts

A merger is subject to antitrust law, while a corporate consolidation is not.

Group of answer choices

True

False

Flag question: Question 51

Question 51

1pts

Testamentary intent means the testator understands that certain persons will become the owners of certain property upon her death.

Group of answer choices

True

False

Flag question: Question 52

Question 52

1pts

Capital stock refers to the value received by the corporation for its outstanding stock.

Group of answer choices

True

False

Flag question: Question 53

Question 53

1pts

Aholographic willis an unwitnessed will that is written by the testator entirely by hand.

Group of answer choices

True

False

Flag question: Question 54

Question 54

1pts

If the debtor is generally not paying debts as they become due, the debtor may be subject to an involuntary bankruptcy petition.

Group of answer choices

True

False

Flag question: Question 55

Question 55

1pts

Debtor's exemptions are provided under federal law and thus are the same in each state.

Group of answer choices

True

False

Flag question: Question 56

Question 56

1pts

A trustee is not permitted to profit personally from the position of trustee, other than to receive the compensation allowed by contract or law.

Group of answer choices

True

False

Flag question: Question 57

Question 57

1pts

If there is a written contract, a disclaimer of the implied warranty of merchantability must be conspicuous.

Group of answer choices

True

False

Flag question: Question 58

Question 58

1pts

No writing is required for a contract by which a broker agrees with a customer to buy or sell securities for the customer because that is an agency - not a sales -agreement.

Group of answer choices

True

False

Flag question: Question 59

Question 59

1pts

A limited warranty includes all of the following scenariosexcept:

Group of answer choices

coverage of the first buyer.

the manufacturer replaces the defective product at no charge to the buyer.

only a portion of the product purchased is covered.

the buyer pays for repairs or replacement of the defective product.

Flag question: Question 60

Question 60

1pts

From the perspective of Texas, a California corporation is considered a foreign corporation.

Group of answer choices

True

False

Flag question: Question 61

Question 61

1pts

In approximately 50% of all bankruptcies no unsecured creditors receive any payments.

Group of answer choices

True

False

Flag question: Question 62

Question 62

1pts

The theories of product liability are mutually exclusive.

Group of answer choices

True

False

Flag question: Question 63

Question 63

1pts

An involuntary bankruptcy case is commenced by creditors filing a petition with a bankruptcy court.

Group of answer choices

True

False

Flag question: Question 64

Question 64

1pts

Certain transfers of property by the debtor to a creditor within 90 days of filing may be set aside by the bankruptcy trustee as __________ transfers, and the transferred property recovered by the trustee.

Group of answer choices

preferential

preternatural

predetermined

preordained

Flag question: Question 65

Question 65

1pts

Regardless of whether all debts were disclosed in the petition, all debts are discharged in bankruptcy.

Group of answer choices

True

False

Flag question: Question 66

Question 66

1pts

The warranty of merchantability guarantees that the:

Group of answer choices

product is fit for the ordinary purposes for which it is sold.

party in question is a merchant.

product can be resold by the buyer if the buyer does not want to keep it.

product will remain fit for its normal use for the applicable statute of limitations period.

Flag question: Question 67

Question 67

1pts

A transfer made to a relative 6 months before filing a bankruptcy petition is most likely a preferential transfer.

Group of answer choices

True

False

Flag question: Question 68

Question 68

1pts

Nonprofit corporations are exempt from involuntary bankruptcy proceedings.

Group of answer choices

True

False

Flag question: Question 69

Question 69

1pts

Under the concept of ______, only the original parties to a sales contract could sue each other.

Group of answer choices

privity of contract.

exclusivity of contract.

privacy of contract.

priority of contract.

Flag question: Question 70

Question 70

1pts

The relatives of an individual who dies without a valid will may acquire title to the decedent's property through: __________.

Group of answer choices

the right of replevin.

the right of acquisition.

intestate succession.

testate succession.

Flag question: Question 71

Question 71

1pts

A trust can be terminated in any of the following manners,except: _______.

Group of answer choices

by impossibility of attaining the object of the trust

by its own terms

by revocation of the trust by the settlor

by a money judgment against the trustee

Flag question: Question 72

Question 72

1pts

Ownership of shares of stock may be transferred by any of the following methodsexcept: ______.

Group of answer choices

delivery of a notice of intent to transfer.

delivery of the certificate and a separate power of attorney executed by the owner.

delivery of the stock endorsed by its owner in blank.

delivery of the stock endorsed by its owner to a specified person.

Flag question: Question 73

Question 73

1pts

In order to be eligible for Chapter 13 bankruptcy an individual must have secured debts of less than $1,000,000.

Group of answer choices

True

False

Flag question: Question 74

Question 74

1pts

If a merchant sells a lawn mower that will not cut any type of grass, there is a breach of the warranty of merchantability.

Group of answer choices

True

False

Flag question: Question 75

Question 75

1pts

A(n) ______ is a written statement, signed by the creditor or an authorized representative, setting forth any claim made against the debtor and the basis for it.

Group of answer choices

Preferential Transfer

Proof of Claim

Voidable Preference

Self-Settled Trust

Flag question: Question 76

Question 76

1pts

A provision giving a corporation the right to purchase a shareholder's shares on the death of the shareholder isinvalidunless approved by a majority of shareholders.

Group of answer choices

True

False

Flag question: Question 77

Question 77

1pts

Where a corporation is properly formed, it is called a corporation: ______.

Group of answer choices

di giorno.

by estoppel.

de jure.

de facto.

Flag question: Question 78

Question 78

1pts

A seller who makes a written express warranty for consumer goods costing more than $50 must conform to FTC regulations.

Group of answer choices

True

False

Flag question: Question 79

Question 79

1pts

The ______ is merely a comparison of assets to liabilities without considering whether the debtor will be able to meet future obligations as they become due.

Group of answer choices

Means test.

Preferential transfer test.

Balance sheet test.

Cost of living test.

Flag question: Question 80

Question 80

1pts

For the purpose of suing a corporation in federal court, the corporation is a citizen in the state where it has its principal place of business.

Group of answer choices

True

False

Flag question: Question 81

Question 81

1pts

Individuals and corporations, but not partnerships, may be reorganized under the Bankruptcy Code.

Group of answer choices

True

False

Flag question: Question 82

Question 82

1pts

An enterprise that conducts business following a merger or consolidation succeeds to all of the followingexcept:______.

Group of answer choices

all of the property of the predecessor.

all of the debts and liabilities of the predecessor.

all of the rights of the predecessor.

all of the management team of the predecessor.

Flag question: Question 83

Question 83

1pts

An express warranty is a statement of fact about the product that becomes part of the basis of the bargain.

Group of answer choices

True

False

Flag question: Question 84

Question 84

1pts

A discharge releases the debtor from the unpaid balance of most debts including federal taxes and tax penalties.

Group of answer choices

True

False

Flag question: Question 85

Question 85

1pts

If Bob owns 100 shares of stock for which he paid $1,000 to the corporation, the _______ would be $10 per share.

Group of answer choices

book value

market value

par value

capital value

Flag question: Question 86

Question 86

1pts

Under the Bankruptcy Reform Act, the "mansion loophole" increases the homestead exemption for debtors.

Group of answer choices

True

False

Flag question: Question 87

Question 87

1pts

An auto manufacturer is excused from strict liability if it can be shown the defect was in a component part purchased from a manufacturer.

Group of answer choices

True

False

Flag question: Question 88

Question 88

1pts

Which of the following must be proven by a plaintiff to recover for strict liability in tort?

Group of answer choices

privity of contract between the manufacturer and the buyer

recklessness of the seller or manufacturer

unreasonably dangerous defects in goods that cause harm

negligence of the seller or manufacturer

Flag question: Question 89

Question 89

1pts

When a person is in an irreversible, incurable condition his ___________ gives instructions on 'heroic measures' and medical treatments if they become unable to express their wishes.

Group of answer choices

attestation clause.

living will.

self proved will.

holographic will.

Flag question: Question 90

Question 90

1pts

_________ of a corporation may occur when management is deadlocked and the deadlock cannot be broken by the shareholders.

Group of answer choices

Consolidation

Judicial dissolution

Reinstatement

Bankruptcy

Flag question: Question 91

Question 91

1pts

A corporation may be an incorporator of another corporation.

Group of answer choices

True

False

Flag question: Question 92

Question 92

1pts

Costs and expenses of administration of the bankruptcy case, including trustee fees are paid before any money is disbursed to secured or unsecured creditors.

Group of answer choices

True

False

Flag question: Question 93

Question 93

1pts

Under recent statutes, the articles of incorporation must contain all of the following except the: ______.

Group of answer choices

number of shares the corporation is authorized to issue.

name and address of each incorporator.

name of the corporation.

purpose for which the corporation is organized.

Flag question: Question 94

Question 94

1pts

The RMBCA provides that shareholders: ______.

Group of answer choices

only have preemptive rights with respect to the transfer of a block of stock as consideration.

have preemptive rights regardless of what the articles of incorporation provide.

cannot have preemptive rights.

have no preemptive rights unless the articles of incorporation so provide.

Flag question: Question 95

Question 95

1pts

A transfer of property by a debtor within ______ prior to filing with the intent to hinder, delay, or defraud creditors is called a(n) ______.

Group of answer choices

3 months, proof of claim.

12 months, voidable preference.

12 months, proof of claim

3 months, voidable preference

Flag question: Question 96

Question 96

1pts

Subchapter S corporations have the benefits of limited liability as in partnerships and are taxed as corporations.

Group of answer choices

True

False

Flag question: Question 97

Question 97

1pts

When a buyer makes a purchase without relying on the seller's skill and judgment, no warranty of fitness for a particular purpose exists.

Group of answer choices

True

False

Flag question: Question 98

Question 98

1pts

A catalog illustration can become the basis of an express warranty.

Group of answer choices

True

False

Flag question: Question 99

Question 99

1pts

Which of the following is a correct legal conclusion regarding Chapter 11 reorganization bankruptcy?

Group of answer choices

When a reorganization plan is confirmed by the court, the creditors can revert back to their original position if they are not satisfied with the plan.

A plan for reorganization may be filed only by a committee of creditors.

Individuals within a particular class of creditors can be treated differently if they object to the reorganization plan.

Individuals, partnerships, and corporations in business may be reorganized.

Flag question: Question 100

Question 100

1pts

Corporations may avoid liability for the obligations of a predecessor corporation by treating a consolidation or merger as a sale of assets.

Group of answer choices

True

False