Question: Federal judges are appointed by?
Congress.
By public election.
Supreme Court.
The President
Answer: The President
Question: Whether a franchisee is required or not required to use the franchisor’s logo is?
Dependent on state law.
Entirely required pursuant to the franchisor’s agreement.
Dependent on federal law.
None of the alternatives are correct.
Answer: Dependent on state law.
Question: With respect to a bankruptcy, what is the purpose of the means test?
Answer Options:
It is used to determine whether a debtor is allowed to file for Chapter 7 bankruptcy.
If the debtor has disposable income over and above the means test, under no circumstances is he or she allowed to file for any type bankruptcy.
It is only used in Chapter 11 bankruptcies.
It applies only to tax liability.
Answer: It is used to determine whether a debtor is allowed to file for Chapter 7 bankruptcy.
Question: Which of the following is true with respect to personal property?
Personal property can never be converted to real property.
If real property is converted to personal property, the contract for sale must be in writing.
Intangible property is not personal property.
Some personal property can be converted to real property.
Answer: Some personal property can be converted to real property.
Question: Because life insurance is non-probate property, which of the following is true?
Answer Options:
The beneficiary of the life insurance policy can only be changed by trust.
The beneficiary of a life insurance policy can only be changed on a beneficiary form issued by the life insurance company.
The beneficiary of the life insurance proceeds can only be changed by will.
Answer: The beneficiary of a life insurance policy can only be changed on a beneficiary form issued by the life insurance company.
Question: Whether a franchisee is required or not required to use the franchisor’s logo is?
Dependent on state law.
Entirely regulated pursuant to the franchisor’s requirement.
Dependent on federal law.
None of the alternatives are correct.
Answer: Dependent on state law.
Question: Administrative law is
Answer Options:
Uniform Codes adopted by state legislatures.
Regulations issued by administrative agencies to provide guidance in the interpretation of statutory law these agencies are authorized to enforce.
Answer: Regulations issued by administrative agencies to provide guidance in the interpretation of statutory law these agencies are authorized to enforce.
Question: Other things equal, a firm will have to pay a higher coupon rate on its subordinated debentures than on its second mortgage bonds.
Answer Options:
a. True
b. False
Answer: a. True
Question: Which of the following statements is CORRECT?
a. Two bonds have the same maturity and the same coupon rate. However, one is callable and the other is not. The difference in prices between the bonds will be greater if the current market interest rate is below the coupon rate than if it is above the coupon rate.
b. A callable 10-year, 10% bond should sell at a higher price than an otherwise similar noncallable bond.
c. Corporate treasurers dislike issuing callable bonds because these bonds may require the company to raise additional funds earlier than would be true if noncallable bonds with the same maturity were used.
d. Two bonds have the same maturity and the same coupon rate. However, one is callable and the other is not. The difference in prices between the bonds will be greater if the current market interest rate is above the coupon rate than if it is below the coupon rate.
e. The actual life of a callable bond will always be equal to or less than the actual life of a noncallable bond with the same maturity. Therefore, if the yield curve is upward sloping, the required rate of return will be lower on the callable bond.
Answer Options:
a. True
b. False
c. True
d. False
e. False
Answer: a. True
Question: Beau Flowers owns a nursery. In the basement, below the main part of the nursery, Beau experiments with dangerous chemicals that if not put away after being exposed to the air for a few hours will catch fire. Several days after working on an experiment and failing to put the chemicals away, the nursery catches fire and burns the rest of a customer who was shopping in the basement. Over the door leading to the main part of the nursery was a sign stating “Not responsible for any damages or injuries that may occur while a person is in the nursery”. The customer sues Beau for the physical injury to his feet, what is the likely outcome?
Answer Options:
The customer loses because he assumed the risk by entering the nursery.
The customer will only win if he actually purchased something in the nursery.
The customer wins because an exculpatory clause will not shield Beau from gross negligence evidenced by not putting the chemicals away.
Answer: The customer wins because an exculpatory clause will not shield Beau from gross negligence evidenced by not putting the chemicals away.
Question: Which of the following is not a right granted under the privileges and immunities clause of the constitution?
Traveling from state to state
Police protection in a state
Employment opportunities in a state
In-state tuition at a state college or university
Answer:
Question: Which of the following statements is CORRECT?
a. A zero coupon bond’s current yield is equal to its yield to maturity.
b. If a bond’s yield to maturity exceeds its coupon rate, the bond will sell at par.
c. All else equal, if a bond’s yield to maturity increases, its price will fall.
d. If a bond’s yield to maturity exceeds its coupon rate, the bond will sell at a premium over par.
e. All else equal, if a bond’s yield to maturity increases, its current yield will fall.
Answer Options:
a. False
b. False
c. True
d. False
e. False
Answer: c. True
Question: At a fancy smancy party, one of the guests confides in you that he has a trade secret. He asks you which of the following is true?
There is only common law protection of trade secrets.
There is federal statutory and state statutory legal protection of trade secrets.
There is only state statutory protection of trade secrets.
There is only federal statutory protection of trade secrets.
Answer: There is federal statutory and state statutory legal protection of trade secrets.
Question: Which of the following is true with respect to business invitees?
Answer Options:
The business owner has unlimited liability to business invitees for anything.
Whenever they enter a commercial building, they assume the risk of any conceivable or inconceivable injury.
The duty of a business owner to business invitees is limited to intentional torts.
Although the business owner’s duty only extends to dangers that are not obvious to a prudent person.
Answer: Although the business owner’s duty only extends to dangers that are not obvious to a prudent person.
Question: Which of the following is true with respect to adhesion contracts?
They are contracts for the sale of land.
They may or may not be considered to be unconscionable.
They are always unconscionable.
They must be in writing.
Answer: They may or may not be considered to be unconscionable.
Question: Miranda and Asher, a married couple, purchased property as tenants in common before they married. Asher dies and by law, leaves his interest in the property to his sister Mollie? What interest in the property, if any, will Mollie receive?
Joint tenancy with right of survivorship.
Nothing because Miranda has right of survivorship and Asher’s death will automatically receive his interest.
Fee simple absolute.
A tenant in common interest.
Answer: A tenant in common interest.
Question: The Uniform Partnership Act is which of the following?
A Uniform Code that applies to partnerships.
Federal statutes that apply to partnerships.
Federal regulations that apply to partnerships.
None of the alternatives are correct.
Answer: A Uniform Code that applies to partnerships.
Question: What role does a franchisor play in the daily operations of a franchisee’s business?
The franchisor typically manages day-to-day operations for the franchisee.
The franchisor provides training and support but does not manage daily operations.
The franchisor must approve all business decisions made by the franchisee.
Franchisors have no role in the daily operations of the franchisee’s business.
Answer: The franchisor provides training and support but does not manage daily operations.
Question: Which of the following is true with respect to adhesion contracts?
They are always unconscionable.
They must be in writing.
They are contracts for the sale of land.
They may or may not be considered to be unconscionable.
Answer: They may or may not be considered to be unconscionable.