Web Services, Inc.

Question 1

Vicky is a shareholder in Web Services, Inc. Vicky could typically exercise appraisal rights if Web was involved in

a consolidation only.

a merger only.

a consolidation or a merger.

neither a consolidation nor a merger.
0.5 points 
Question 2

A transaction in which two corporations combine such that afterwards only one of them still exists and owns all the assets previously owned by either corporation is best called a:

Merger.

Consolidation.

Purchase of assets.

Share exchange.
0.5 points 
Question 3

Even an employee at-will can sue for wrongful discharge when he or she:
a.
Is discharged in violation of Title VII of the Civil Rights Act.
b.
Is discharged in violation of the Public Policy doctrine.
c.
Is negligently discharged by the employer.
d.
All of the above.
0.5 points 
Question 4

X Business Corporation markets its products in three states. Under the Constitution’s commerce clause, Congress can regulate

any and all commercial activity in the United States.

only commercial activities that are in interstate commerce.

only commercial activities that are local.

only activities that have nothing to do with commerce.
0.5 points 
Question 5

Which of the following is not a correct statement concerning the reasons sufficient to give a court power to dissolve a partnership?

A partnership may be dissolved if one of the partners is declared physically disabled or mentally incompetent.

A partnership may be dissolved because a partner is shown to be not adequately performing his or her part of the partnership contract.

A partnership may be dissolved if the business can only be carried on with substantial continuing losses.

A partnership may be dissolved if one of the partners commits misconduct or gross negligence or materially breaches the partnership agreement.
0.5 points 
Question 6

A promoter's preincorporation contract:

binds only the promoter unless adopted by the corporation.

binds both the promoter and the corporation.

binds only the corporation.

binds neither the promoter nor the corporation if rejected by the corporation.
0.5 points 
Question 7

Where the principal makes representations to a third party about the role that an agent is to play, which kind of authority usually arises?

Apparent authority.

Authority by ethics.

Inherent authority.

Implied authority.
0.5 points 
Question 8

Standard Company and Tom wish to enter into an agency relationship for the purpose of buying computers for Standard’s offices. The relationship requires as a general rule:

a written agreement and consideration

a written agreement only

consideration only

neither a written agreement nor consideration

Question 17

A bank representative closes the bank vault at night before going home. Unknown to the bank representative, a customer was inside auditing his safe deposit box with the permission of a bank teller. Everyone goes home and the bank representative carelessly forgets to look inside the vault before closing it. The bank vault is closed; and the customer is locked inside for 24 hours. When the vault is opened, the customer is found and rushed to the hospital due to lack of oxygen in the vault. The bank customer ultimately recovers from his injuries, but has medical bills and has been traumatized too. He now sues the bank (and probably will win) pursuant to what legal theory?

0.5 points

Question 18

Allie, an adult, is injured while using a very sharp kitchen knife manufactured by Fearless Cutting to prepare a dinner. The knife is manufactured according to Fearless' product standards. There is an adequate handle for the knife, a sheath to enclose the knife, but no warning on the box, sheath, or knife itself that the knife is very sharp. Allie sues Fearless pursuant to the doctrine of strict liability, contending that the knife is a defective product. The likely result of such a lawsuit would be: