30) Which of the following is the most accurate statement?
A sole proprietorship is a separate legal entity for U.S. tax purposes and thus the entity must file its own tax return.
A franchise is an association of members comparable to a partnership organized to provide an information sharing exchange among the members about economic issues.
Franchisors that firmly set and fix the prices at which the franchisees can resell products or perform services may violate antitrust laws.
A franchisor can always establish an additional franchisee in a territory allotted to a franchisee if the franchisee agreement is silent as to exclusivity of the territory.
31) The Statute of Frauds requires that certain types of contracts:
Be in writing in order to be valid.
Be in writing in order to be enforceable.
Contain a promise for an act.
Have two or more attorneys present at the signing of a written contract.
32) The sales provisions of Article 2 of the UCC apply to:
Neither merchants nor non merchants.
Non merchants, but not to merchants.
Merchants, but not non merchants.
Both merchants and non merchants.
33)Which of the following is a true statement?
An invitation to negotiate usually will be construed as constituting an offer to enter into a contract.
Under the common law, an offer ordinarily does not need to be communicated to the offeree to be effective.
An agreement under the common law of contracts usually consists of an offer and an acceptance.
In most states in the U.S., the revocation of a contract is not legally effective until it is actually received by the offeree.
34) An oral contract in which Sally agrees to work for Jane for the rest of Jane's life is:
A guaranty contract.
Unenforceable under the Statue of Frauds because it cannot possibly be performed within one year.
Enforceable under the Statute of Frauds.
A and C only.
35) Which of the following is not an essential element of a partnership relationship?
An association of two or more persons who are capable of entering into a binding contract
The carrying on of a business for profit
Co-ownership of the business
A mutual intention to be partners
36) Unless the amendment is one the board may adopt without shareholder action, amendment of the articles of incorporation:
may affect such provisions as would be lawful and proper at the time the amendment is adopted.
must be approved by a majority of the votes entitled to be cast on the amendment by any voting group with respect to which the amendment would create dissenters' rights.
must be approved by the votes required of every other voting group entitled to vote on the amendment
All of the above
37) Which of the following is a correct statement?
Only a plaintiff in a lawsuit can file a motion for judgement on the pleadings in the U.S. civil law system.
When a forum-selection or choice-of-law clause is included in an international contract, legal proceedings are more complex, attended by more uncertainty, and much more difficult.
Payments to foreign government officials are always illegal since bribery is a serious moral wrong.
International law is a body of law that in part governs relations among nations.
38) What is the significance of a "defect" in a products liability case based on strict liability?
It is not necessary, but can be used to eliminate the need to prove that there was an injury.
It is a required element in the proof of such a case.
Its presence would eliminate liability for the defendant.
The party who caused the defect is the only one who can be held liable.
39) What is a derivative lawsuit?
An action brought by the board of directors on behalf of the corporation.
An action brought by a majority of the board of directors against an individual board member.
An action brought by a shareholder or shareholders on behalf of the corporation when the board of directors does not file the suit.
An action brought by shareholders against the corporation.
40) Which of the following is a false statement?
A franchisor can impose certain quality standards on a franchisee.
Some business forms and organizations in the U.S. offer limited liability to their owners and investors.
Many states in the U.S. now permit business persons to operate as a limited liability company (LLC).
No capital can be raised through an offering of stock in the U.S. without the principals first registering the shares with the Securities and Exchange Commission and obtaining the agency’s approval.