ACC 205/ACC205 FINAL EXAMINATION (100% QUESTIONS)

1. 

Agency is a fiduciary relationship. 

A.

True

B.

False

2. 

The term "stare decisis" means "reversing the decision."  

A.

True

B.

False

3. 

Offers for both bilateral and unilateral contracts involve a promise from the offeror.  

A.

True

B.

False

4. 

A decision from a state supreme court is binding on a lower state court located in the same state.  

A.

True

B.

False

5. 

A decision from a state supreme court in one state is binding on a trial court judge in another state if the other state has no applicable law on the issue involved.  

A.

True

B.

False

6. 

A court must have two types of jurisdiction to decide any particular case.  

A.

True

B.

False

7. 

Subject matter jurisdiction is a court's power to hear certain kinds of cases.  

A.

True

B.

False

8. 

Concurrent federal jurisdiction means both state and federal courts have jurisdiction over a case. 

A.

True

B.

False

9. 

To disaffirm a contract, a minor MUST act before reaching the age of majority.  

A.

True

B.

False

10. 

A contract remains executory as long as any party to the contract has not fully performed. 

A.

True

B.

False

11. 

An offer for a unilateral contract cannot be accepted by a mere promise to perform.  

A.

True

B.

False

12. 

Two of the four basic contract requirements are agreement and signature of the parties.  

A.

True

B.

False

13. 

An implied in fact contract is one based on the conduct of the parties.  

A.

True

B.

False

14. 

Ease and cost of formation are factors to be considered in the selection of the form under which a business should operate.  

A.

True

B.

False

15. 

A person who is not an employee, who is employed by the principal to perform a certain task on the principal's behalf, is an independent contractor.  

A.

True

B.

False

16. 

Shareholders have unlimited liability that can exceed the extent of their capital contributions.  

A.

True

B.

False

17. 

A general partnership relieves the general partners of liability for the debts and obligations of the partnership.  

A.

True

B.

False

18. 

Limited partners are liable for partnership debts.  

A.

True

B.

False

19. 

Physical contact is not necessary to be liable for the tort of assault.   

A.

True

B.

False

20. 

A person charged with a crime in the United States is presumed innocent until proven guilty.   

A.

True

B.

False

21. 

The surface rights and the subsurface rights for the same parcel of real property can be owned by two different persons.  

A.

True

B.

False

22. 

Truth is an absolute defense in a cause of action for defamation.   

A.

True

B.

False

23. 

The judicial branch has authority to examine the actions of both the legislative branch and the executive branch to determine whether these acts are constitutional.   

A.

True

B.

False

24. 

If the federal government preempts states from regulating in an area, the states may not continue to pass legislation that conflicts with federal statutes.   

A.

True

B.

False

25. 

The first 10 amendments that were added to the U.S. Constitution are known as the Bill of Rights.   

A.

True

B.

False

26. 

The primary function of an agent in a principal-agent relationship is to:  

A.

Maintain the principal's status quo.

B.

Operate as a partner with the principal.

C.

Enter into contracts with the principal.

D.

Conduct business on behalf of the principal.