Area II: Business Law

P, a principal, engaged A as an agent to buy 100 acres of land. P instructed A to keep P's identity secret. A entered into a contract with T to buy the land, signing the contract 'A, Agent'. A did not reveal P's identity. If P fails to perform on the contract, which of the following is correct regarding liability to T?

On June 1, Buyer sent a purchase order to Seller for 1,000 widgets at $10 each. The purchase order stated 'delivery by June 30'. On June 3, Seller sent an acknowledgment form that stated, 'We accept your order. Delivery will be by July 15.' Buyer did not object. Under UCC Article 2, which of the following is correct?

Debtor D has filed for Chapter 7 bankruptcy. Which of the following debts is most likely to be discharged?

Lender A lent Money to Debtor and perfected a security interest in Debtor's equipment on February 1. Lender B lent money to Debtor and perfected a security interest in the same equipment on March 1. On April 1, Lender A advanced additional funds to Debtor under a future advances clause in the original security agreement. Debtor defaulted. Who has priority regarding the April 1 advance?

Under the Foreign Corrupt Practices Act (FCPA), which of the following payments is most likely prohibited?

Which of the following business entities generally provides all of its owners with limited liability while allowing them to participate in management without risking that liability?

Under the Revised Model Business Corporation Act, which of the following actions generally requires shareholder approval?

Under the Uniform Commercial Code (UCC) Sales Article, which of the following warranties is created by an express affirmation of fact made by the seller to the buyer?

Under the Statute of Frauds, which of the following contracts must be in writing to be enforceable?

Which of the following is a requirement for a security interest to 'attach' under UCC Article 9?

Under the Revised Uniform Partnership Act (RUPA), absent an agreement to the contrary, how are profits and losses shared in a general partnership?

Under the Affordable Care Act (ACA), an Applicable Large Employer (ALE) may be subject to a penalty if it fails to offer minimum essential coverage to at least what percentage of its full-time employees?

Which of the following is a requirement for a valid contract under common law?

Which of the following is a 'void' contract?

Under the UCC Secured Transactions Article (Article 9), which of the following will perfect a security interest in a negotiable instrument (like a promissory note)?

Which of the following defenses is available to a surety to avoid liability on a debt?

Under the Sales Article of the UCC, the warranty of title:

Which of the following acts is most likely to cause a piercing of the corporate veil, holding shareholders personally liable?

Under the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), a Chapter 7 filing may be dismissed or converted to Chapter 13 if the debtor fails which test?

Peyton is the manager of a retail store owned by Corp X. Corp X explicitly instructed Peyton not to hire any vendors without corporate approval. Despite this, Peyton hired a cleaning service to clean the store, signing the contract as 'Peyton, Manager for Corp X.' The cleaning service was unaware of the restriction on Peyton's authority. Is Corp X liable for the contract?

Under the UCC Sales Article, which of the following statements is correct regarding the 'Battle of the Forms' between two merchants?

Which of the following oral contracts is enforceable under the Statute of Frauds?

In a Chapter 7 bankruptcy liquidation, which of the following claims has the highest priority for distribution?

On May 1, Vendor A sold a machine to Debtor on credit and retained a security interest. Vendor A delivered the machine on May 5. Vendor A filed a financing statement on May 12. On May 8, Lender B loaned money to Debtor, took a security interest in the same machine, and filed a financing statement immediately. Who has priority?

Which of the following defenses would effectively release a gratuitous surety from liability to a creditor?

Under the Foreign Corrupt Practices Act (FCPA), which of the following payments would most likely be prohibited?

Under the Revised Model Business Corporation Act, which of the following actions requires shareholder approval?

A partner in a general partnership transfers their partnership interest to a third party without the consent of the other partners. Which of the following statements is true?

Which of the following creates a 'rebuttable presumption' that a payment to a worker is for an employee relationship rather than an independent contractor relationship?

Which of the following acts by a debtor would constitute a 'preference' voidable by a bankruptcy trustee?

Under the Affordable Care Act (ACA), an Applicable Large Employer (ALE) may be subject to a penalty if it fails to offer minimum essential coverage to at least what percentage of its full-time employees?

Which of the following is a requirement for a valid contract under Common Law?

Under the UCC Secured Transactions Article, which of the following is required for the 'attachment' of a security interest?

Which of the following is a requirement for a valid deed to transfer real property?

Under the Revised Model Business Corporation Act, which of the following statements is correct regarding a shareholder's right to inspect corporate books and records?

Which of the following scenarios would most likely result in a 'piercing of the corporate veil,' holding shareholders personally liable for corporate debts?

Under the Uniform Commercial Code (UCC) Article 9, which of the following actions will perfect a security interest in inventory?

A debtor files for Chapter 7 bankruptcy. Which of the following debts is generally dischargeable?

Under the Sales Article of the UCC (Article 2), which of the following statements is correct regarding the Statute of Frauds for a contract for the sale of goods?

A principal hires an agent to manage a retail business. The principal instructs the agent not to purchase inventory from Vendor X. However, the agent purchases inventory from Vendor X, who is unaware of the restriction. The principal has previously paid for inventory purchased by the agent from other vendors. Is the principal liable on the contract with Vendor X?

Which of the following acts is generally prohibited under the Foreign Corrupt Practices Act (FCPA)?

Under the Revised Uniform Partnership Act (RUPA), absent an agreement to the contrary, how are profits and losses shared among partners?

Under the Affordable Care Act (ACA), which of the following employers is an 'Applicable Large Employer' (ALE) subject to the Employer Shared Responsibility provisions?

Which of the following defenses would effectively release a surety from liability to a creditor?

Which of the following is required for a valid contract to be formed?

Which of the following is a requirement for a valid deed to transfer real property?

Which of the following acts by a partner would likely be considered a violation of the duty of loyalty under the Revised Uniform Partnership Act (RUPA)?

Under the UCC Secured Transactions Article (Article 9), if a debtor defaults, which of the following is a right of the secured party?

Under the UCC, an implied warranty of merchantability arises when:

A principal terminates an agent's actual authority. To terminate the agent's apparent authority with respect to third parties who have previously dealt with the agent, what action is REQUIRED?

Under the UCC Sales Article (Article 2), which of the following statements is correct regarding the 'Battle of the Forms' between two merchants where the acceptance includes additional terms?

A debtor owes a creditor $10,000. The debt is barred by the statute of limitations. The debtor writes a letter to the creditor promising to pay $5,000 of the barred debt. Which of the following is true?

Which of the following defenses is available to a gratuitous surety but NOT to a compensated surety?

In a Chapter 7 bankruptcy liquidation, which of the following claims has the highest priority for distribution?

On April 1, Vendor sold a computer to Debtor on credit. Debtor took possession that day. On April 10, Vendor filed a financing statement. On April 5, Debtor borrowed money from Bank, granting a security interest in the same computer. Bank filed a financing statement on April 5. Who has priority in the computer?

Under the Foreign Corrupt Practices Act (FCPA), which of the following payments is prohibited?

A shareholder of a C corporation may be held personally liable for the corporation's debts under the doctrine of 'piercing the corporate veil' in which of the following situations?

Which of the following acts by a debtor would be grounds for a denial of discharge in a Chapter 7 bankruptcy?

Under the Affordable Care Act (ACA), an Applicable Large Employer (ALE) may be subject to a penalty if it fails to offer minimum essential coverage to at least what percentage of its full-time employees?

Under the Uniform Commercial Code (UCC) Article 9, which of the following actions will PERFECT a security interest in inventory?

Under the Statute of Frauds, which of the following contracts MUST be in writing to be enforceable?

Which of the following business entities provides limited liability to ALL its owners and allows for 'pass-through' taxation?

Under the Revised Model Business Corporation Act, which of the following actions generally requires shareholder approval?

Which of the following is NOT a requirement for a negotiable instrument under the UCC?