Question: Mollie and Miranda own property as joint tenants with right of survivorship. Prior to her death, in her will, Mollie leaves her joint interest to Nick Namy. Which of the following is true?
Answer Options:
Because a joint tenancy with right of survivorship is not probate property, it cannot be changed by will, so when Mollie dies, Miranda will receive Mollie’s interest by survivorship.
Upon Mollie’s death, the probate judge will force the sale of the property to be divided between Nick and Miranda.
Leaving a joint tenancy with right of survivorship interest in a will converts that interest into a tenants in common interest.
Since Mollie left the interest to Nick by a will, Nick will assume Mollie’s interest at her death.
Answer: Because a joint tenancy with right of survivorship is not probate property, it cannot be changed by will, so when Mollie dies, Miranda will receive Mollie’s interest by survivorship.
Question: Cookie Coca has a fancy smancy mansion. In her kitchen, she installed a built-in pizza oven that she uses to make gourmet pizza for her family and friends. In early 2021, she sold her mansion. As the buyer is moving in, Cookie’s movers are removing the pizza oven. The buyer objects – what is the probable outcome?
Answer Options:
The pizza oven is a fixture because it is in a private home not used in business, and thus, it cannot be removed.
The pizza oven is trade fixture and may be removed.
The pizza oven is part of the real property so it can never be removed.
A pizza oven can never be considered as a fixture so under all circumstances it can be removed.
Answer: The pizza oven is a fixture because it is in a private home not used in business, and thus, it cannot be removed.
Question: Between business law quizzes, you create the most incredible song. What is the minimal amount you must do to create a copyright?
Put your name on the song.
Obtain a trademark.
Obtain a patent.
Register it with the copyright office.
Answer: Put your name on the song.
Question: Diversification will normally reduce the riskiness of a portfolio of stocks.
a. True
b. False
Answer:
Question: An engineering firm has an open tract of land next to a restaurant. The engineering firm has 10 employees all of whom have lunch each day at the restaurant. The owner of the restaurant and the engineering firm agree that patrons of the restaurant can park on the tract of land in exchange for 10% food discounts on all lunch items ordered by the engineering firm staff. The food discount is
not legally sufficient consideration because it is not of equal value.
legally sufficient consideration.
an illusory promise.
unenforceable due to a disparity of bargaining positions.
Answer: legally sufficient consideration.
Question: What is the difference between beneficiaries and heirs?
Beneficiaries are individuals who will receive the decedent’s property if the decedent does not leave a will.
Heirs are individuals named in the decedent’s will to receive gifts/devisees.
In many instances, since beneficiaries are often the family of the decedent, beneficiaries and heirs may be the same individuals.
Beneficiaries and heirs can never be the same individuals.
Answer:
Question: Which of the following is true with respect to paper?
It is tangible personal property.
It is intangible real property.
Since it is made from wood, it is real property.
Since it might be used to write a book, it is intangible personal property.
Answer: It is tangible personal property.
Question: Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.
Answer Options:
a. A project’s NPV is generally found by compounding the cash inflows at the WACC to find the terminal value (TV), then discounting the TV at the IRR to find its PV.
b. The higher the WACC used to calculate the NPV, the lower the calculated NPV will be.
c. If a project’s NPV is greater than zero, then its IRR must be less than the WACC.
d. If a project’s NPV is greater than zero, then its IRR must be less than zero.
e. The NPVs of relatively risky projects should be found using relatively low WACCs.
Answer: b
Question: The contract to sell Victor E. Lapp’s motorcycle repair business includes a covenant not to compete where Victor agrees not be engaged in the motorcycle repair business for 5 years in the metropolitan area in which the business is located. The covenant not to compete is
Answer: a throw in with no value since Hughes is likely to retire.
Question: You are trolling the courthouse because many who know you took business law want to ask you questions. One such person tells you that she is an executor of an estate and does not know which is the proper court. Your response is which of the following?
Probate Court
Any court with original jurisdiction
Family Court
Domestic Court
Answer:
Question: Miranda Wright invites Molly Cule to her house but does not tell Molly that her driveway is soaked in oil. Molly slips and falls on the driveway resulting in injuries to her shoulder. Each hires an attorney and the attorneys attempt to negotiate a settlement. When they fail to agree, Molly’s attorney initiates a negligence lawsuit against Miranda. This is a?
Answer Options:
An appeal because the parties were unable to settle the case.
The beginning of a case to be heard in a court of original jurisdiction.
A case to be litigated in U.S. Bankruptcy court because it involves a financial matter.
A case in which Molly’s attorney must prove the case in Molly’s favor beyond a reasonable doubt.
Answer: The beginning of a case to be heard in a court of original jurisdiction.
Question: In a civil case, the object is to
Answer Options:
to determine a defendant’s liability beyond a reasonable doubt.
determine whether particular conduct of a party is appropriate for criminal prosecution.
obtain a remedy to compensate the wronged party.
to impose criminal and civil penalties on the wrongdoer.
Answer: obtain a remedy to compensate the wronged party.
Question: A nursery sells a tree to a developer who re-plants the tree on a residential lot. The purchaser of the lot chops down the tree and uses it as firewood. Which of the following is true?
Although in the beginning the tree was real property, in the end as firewood, it is considered tangible personal property.
The tree would always be considered real property.
By replanting the tree, it would always be considered real property.
The firewood is considered real property until it is used.
Answer: Although in the beginning the tree was real property, in the end as firewood, it is considered tangible personal property.
Question: The purpose of a trademark such as Starbucks’s is to do which of the following?
Patent the Starbucks method of making coffee.
Create a copyright.
Identify the Starbucks brand of coffee to the public.
Create a franchise.
Answer: Identify the Starbucks brand of coffee to the public.
Question: Beyond express powers set forth in the U.S. Constitution, what is true with respect to other governmental powers?
Answer Options:
The federal government has all powers to the exclusion of the state whether or not expressed.
Any power not expressed does not exist.
There are no express powers.
All other powers are reserved for the states.
Answer: All other powers are reserved for the states.
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: When an individual (decedent) drafts a will, which of the following is true?
Answer Options:
The decedent leaves probate and non-probate property to beneficiaries.
The decedent leaves probate property to beneficiaries.
The decedent leaves non-probate property to beneficiaries.
Once a decedent drafts a will, it can never be changed.
Answer: The decedent leaves probate property to beneficiaries.
Question: The Florida Supreme Court declared that a cap on general damages in medical malpractice cases is unconstitutional under the Florida Constitution. Which of the following is true?
Answer Options:
The Florida Supreme Court’s decision is invalid because all states must have the same statutes regarding general damages.
The Florida Supreme Court’s decision is invalid because citizens of other states will come to Florida for medical procedures to take advantage of no cap on general damages.
The Florida Supreme Court’s decision is invalid because it is not fair to doctors.
The Florida Supreme Court’s decision is valid provided it did not violate the US Constitution.
Answer: The Florida Supreme Court’s decision is valid provided it did not violate the US Constitution.
Question: In terms of liability to its members, which of the following is an LLC most similar to?
Answer Options:
A general partnership.
A sole proprietorship.
An S corporation.
A corporation.
Answer: A corporation.
Question: Which of the following is true with respect to SEC rules?
They are applicable to all publicly traded corporations and other large private corporations.
They are only applicable to publicly traded corporations.
They are not applicable to any corporation regardless of size.
They are applicable to all corporation regardless of size.
Answer: They are applicable to all publicly traded corporations and other large private corporations.
Question: Hughes Car hears from reliable sources that Otto Mobile makes defective vehicles. Although Hughes has never purchased or used an Otto Mobile vehicle, he files a lawsuit against Otto Mobile to compel it to refund the purchase price to all its customers. What is the likely outcome of that lawsuit?
Answer Options:
Hughes will not be able to file a lawsuit in any court because he never purchased a vehicle from Otto Mobile and lacks standing to bring the case.
Hughes can only file a lawsuit against Otto Mobile if Otto Mobile does business in the state in which Hughes is a resident.
Hughes will have to file the lawsuit in federal court if he and Otto Mobile are from different states.
Hughes must find a court with the appropriate venue to hear the case.
Answer: Hughes will not be able to file a lawsuit in any court because he never purchased a vehicle from Otto Mobile and lacks standing to bring the case.