Law 531 Final Exam
1) Which of the following is a distinguishing feature of a common law legal system?
D. The making of law by the judges and the following of precedent
2) Which best describes the types of agency authority held by officers of a corporation?
D. Express, implied, and apparent authority
3) If an LLC fails to follow formalities such as keeping minutes of meetings, which of the following is true?
C. This failure will not result in imposing personal liability on any member.
4) Martha started a flower shop as a sole proprietor. After 1 year, she was forced to close the shop because business was so bad. At that time, the business assets totaled $50,000, but the business liabilities totaled $125,000. Which of the following statements is true?
A. Martha is personally liable for the additional $75,000.
5) Partners of a general partnership
D. are liable for all the obligations of their partnership
6) Which of the following forms of alternative dispute resolution allows both parties to see the strengths and weaknesses of both sides of the case through the presentation of evidence?
B. Minitrial
7) A ___________ is a court-appointed party who conducts a private trial and renders a judgment.
C. judicial referee
8) What is a form of alternative dispute resolution that is often used when the parties involved do not want to face one another?
D. Conciliation
9) Which of the following is true regarding mediation?
C. A mediator does not make a decision or award.
10) There are no accountants on the board of the Oriole Corporation, a privately held corporation. The board routinely relies on a Certified Public Accountant (CPA) to explain the financial situation of the corporation. The board does not do an independent analysis of the CPA’s report. In these circumstances, the board is
not violating any duty
11) Self-dealing by a director of a corporation can best be described
D. The making of law by the judges and the following of precedent
2) Which best describes the types of agency authority held by officers of a corporation?
D. Express, implied, and apparent authority
3) If an LLC fails to follow formalities such as keeping minutes of meetings, which of the following is true?
C. This failure will not result in imposing personal liability on any member.
4) Martha started a flower shop as a sole proprietor. After 1 year, she was forced to close the shop because business was so bad. At that time, the business assets totaled $50,000, but the business liabilities totaled $125,000. Which of the following statements is true?
A. Martha is personally liable for the additional $75,000.
5) Partners of a general partnership
D. are liable for all the obligations of their partnership
6) Which of the following forms of alternative dispute resolution allows both parties to see the strengths and weaknesses of both sides of the case through the presentation of evidence?
B. Minitrial
7) A ___________ is a court-appointed party who conducts a private trial and renders a judgment.
C. judicial referee
8) What is a form of alternative dispute resolution that is often used when the parties involved do not want to face one another?
D. Conciliation
9) Which of the following is true regarding mediation?
C. A mediator does not make a decision or award.
10) There are no accountants on the board of the Oriole Corporation, a privately held corporation. The board routinely relies on a Certified Public Accountant (CPA) to explain the financial situation of the corporation. The board does not do an independent analysis of the CPA’s report. In these circumstances, the board is
not violating any duty
11) Self-dealing by a director of a corporation can best be described