Sampson Motors, a car dealership, sells Aaron a car on terms that provide that Aaron will have possession of the car for a period of three years, during which time he will make monthly payments. However, title in the car will remain with Sampson Motors until Aaron makes the last payment. In this case, the parties have effected

C) a chattel lease.

E) a floating charge.

B) a consignment.

D) a chattel mortgage.

A) a conditional sale.

The contractual right of a mortgagee to sell the property upon default is called

B) legal sale.

E) sale by court.

A) an equitable sale.

C) an equitable right to sell.

D) a power of sale.

Which of the following isNOTa power ordinarily exercised by directors of corporations?

C) to call meetings of shareholders.

E) to declare dividends.

D) to deal with the day-to-day business of the corporation.

A) to adopt by-laws governing the business.

B) to issue shares.

The duties owed by a principal to an agent include

E) a duty to delegate responsibilities.

C) a duty to contact third parties for performance reviews.

B) a duty to use care, skill, competence and diligence.

A) a duty to pay the agent's expenses.

D) a duty to see that "apparent" is the same as "actual" authority.

Which statement best illustrates the principle of limited liability as it relates to corporations?

D) the trustee in bankruptcy requires shareholders to repay corporate property received prior to bankruptcy.

E) a dividend is paid to a shareholder although the corporation make no profitsthe shareholder is liable for the corporation's debt to the extent of the dividend.

A) a director who drives dangerously and causes an accident while on company business.

C) a corporation is liable for its own debts.

B) shareholders of a small, private company provide security or personal guarantees on loans made to their company.