. 
 12. "Fundamental corporate change" consists of: . 
Answer . a.Amending…

. 
 12. "Fundamental corporate change" consists of:
. 
Answer
. a.Amending the articles of incorporation
. b.Merging with another corporation
. c.Dissolution and termination of the corporation
. d.All of the above.

. 16. Which of the following is FALSE about U.S. securities laws? 

. Answer
. a.The definition of a "security" is broadly construed by the courts.
. b.Insider trading by an insider and by a tipee in conspiracy with an insider is illegal.
. c.Trading on inside information by the "lucky" or the "smart" is always illegal since it is not fair to the other party who does not have the inside information.
. d.Silence, that is, the failure to disclose material facts regarding the purchase or sale of a security is illegal.

. 17. Which of the following facts is the best evidence of the existence of a partnership relationship?
. 
Answer
. Joint or common ownership of property
. Sharing of gross returns of a business
. Sharing of net profits of a business
. Joint participation in a business activity

. 20. All written contracts that have a set of promises are 

. Answer
. Formal
. Valid
. Bilateral
. Executed

. 
 21. Under Article II of the UCC a seller may not 
Answer
. Withhold delivery
. Seize the good back on his or her own
. Stop delivery in transit
. Sell the goods

. 22. Which of the following best describes the overall scheme of pollution regulation in the United States?
. 
Answer
. Exclusively federal law.
. Exclusively state law with minimal federal oversight.
. Exclusively state law, but with considerable federal oversight.
. Primarily federal law, but considerable state law as well.

. 23. Which of the following is FALSE regarding federal administrative agencies? 

. Answer
. a.Congress typically delegates to administrative agencies the power to make laws in the form of rules and regulations.
. b.Administrative agencies, such as the Occupational Health and Safety Administration, cannot conduct inspections since an inspection is a "search," which can only be conducted by the police or other law enforcement agency pursuant to a traditional criminal law search warrant.
. c.Administrative agencies typically can impose civil fines after a due process hearing in which a person or business is adjudicated to be in violation of an agency rule or regulation.
. d.The decisions of administrative agencies can generally be appealed to the traditional court system assuming that procedural requirements for an appeal are met.

. 
 27. “Necessaries” for minor contracts do not usually include 

. Answer
. Transportation
. Education
. Insurance
. Medical Care
.

Question 28
. 
 28. What as a general rule makes a covenant-not-to-compete legal in an employment contract? 

. Answer
. a.The covenant must be reasonable as to time/duration.
. b.The covenant must be reasonable as to place/territory.
. c.The employer must be able to demonstrate that the covenant was necessary to protect a legitimate business interest of the employer.
. d.All of the above.

. 33. A provision under the UCC which affects merchants differently from nonmerchants is:
. 
Answer
. The effect of additional terms in an acceptance.
. The firm offer rule.
. The written confirmation rule.
. All of the above.

. 36. Which of the following is a correct statement? 

. Answer
. Incorporators must sign and execute the articles of incorporation of a U.S. corporation.
. Most states in the U.S. limit the duration of a corporation to fifty years plus a day, which time period can be renewed.
. A tenancy at will under U.S. law is created by an express contract by which personal property is leased for a specific period of time.
. A quitclaim deed warrants more than any other deed under U.S. real estate law.

. 
 46. Barb owns Barb's Salon, which owes back rent to Capital Properties, a landlord. Barb agrees to pay a percentage of her profit each month until the debt is paid. Capital Properties is 

. Answer
. Barb's creditor and partner.
. Barb's creditor only.
. Barb's partner only.
. neither Barb's creditor nor partner.


. 48. Alvaro and Franco are forming a corporation and preparing the articles of incorporation. What provision must be in the articles?
. 
Answer
. A corporate name with an indication of "corporateness," such as "Inc."
. The names and addresses of majority or controlling shareholders.
. Evidence of U.S. citizenship for the directors.
. All must be in the articles.