SEAPORT BUS C110 FINAL QUIZ (2014)

1. The manager's fiduciary duty refers to _____.

the duty of managers to maximize returns to employees

the legally prescribed duties which make their employment possible

the moral duty managers have to act as responsible agents to the owners

managers resisting hostile takeover bids

managers managing by number

2. According to the stakeholder theory, _____.

having gone along with legal duties, the corporation can ignore any other social obligations

a corporation's social responsibilities are limited to staying within the law only

corporations should pay attention only to the bottom line

a socially responsible corporation is likely to consider the impact of its decision on the shareholders only

all the stakeholders to a corporate decision deserve some kind of moral consideration

3. _____ helps companies embrace the idea that profit and prosperity must go hand in hand with social justice and environmental stewardship.

Social contract

Stakeholder theory

Conscious capitalism

Virtue ethics

Deontology

4. What is legal is not necessarily ethical and what is ethical is not necessarily legal

True

False

5. Ethics is the study of what is right and wrong just from an individual's personal moral viewpoint

True

False

6. Contract duties are obligations imposed by law.

True

False

7. An agreement that is illegal is void.

True

False

8. A promisor is a person to whom a promise has been made

True

False

9. A contract need not be in writing to be enforceable.

True

False

10. Which of the following factors considers whether the contract is yet to be performed or the obligations have been fully discharged by one or both parties while classifying contracts?

Completion

Acceptance

Mutuality

Explicitness

Enforceability

11. A general agent has the authority to act in any way required by the principal's business

True

False

12. Oral agencies are not legally binding unless reduced to writing.

True

False

13. A(n) _____ is defined as a person who acts in the name of and on behalf of another, having been given and assumed some degree of authority to do so.

Grantor.

Insured

Agent

Testator

Tenant

14. In the legal relationship known as "agency":

the agent cannot have any personal property interest in the principal's business.

the principal must authorize all subagents appointed by an agent.

a general agent has the authority to act in any way required by the principal's business.

the principal is primarily liable for all actions undertaken by agents and subagents.

a general agent must be appointed for business purposes, while a special agent can be appointed for personal purposes.

15. An agent who accepts a bribe to purchase goods for a principal only from a seller who is a personal friend breaches his _____ duty by taking the money, since it is the agent's duty to work only for the best interests of the principal

Statutory

Gratuitous

Fiduciary

Expressed

Apparent

16. In property law, a(n) _____ is an interest in real property, ranging from absolute dominion and control to bare possession.

Fixture

Chattel

Estate

Attachment

Lien

17. A(n) _____ is an agreement regarding the use of land that "runs with the land".

dominant tenement

restrictive covenant

servient tenement

easement appurtenant

eminent domain

18. A property is categorized into 'commercial' and 'residential' units, so that a commercial building cannot be built in a residential neighborhood and vice versa without a change in the ______ ordinances

Easement

inter vivos

zoning

restrictive covenant

accession

19. Which of the following acts is also known as the Superfund?

Toxic Substances Control Act

Comprehensive Environment Response, Compensation, and Liability Act

Environment Protection Agency

Federal Food, Drug, and Cosmetic Act

Noise Regulation Act

20. An easement is an estate whereas a license is personal to the grantee and is not assignable

True

False

21. Tangible property is something without physical reality that entitles the owner to certain benefits.

True

False

22. A steamroller is an example of a tangible property

True

False

23. The sale of personal property, but not real property, is governed by Article 2 of the Uniform Commercial Code

True

False

24. A fixture is an object that was once personal property but that has become so affixed to land or structures that it is considered legally a part of the real property

True

False

25. Which of the following is an example of an intangible property?

A trademark

A popsicle stand

A hairdryer

A steamroller

A phone

26. The agreement between the owner of a real property and a real estate broker is known as the listing agreement

True

False

27. Community property refers to:

the space in a condominium ownership arrangement that all purchasers own as tenants in common.

the shares in a cooperative building that are owned by tenants.

property acquired while a husband and wife are married to each other, in which each has undivided interest.

property in which joint tenants have unity of possession but not title.

the shares of the many owners in a time-share type of property.

28. _____ is a method by which a third party holds a document or money or both until specified conditions have been met.

Easement

A quitclaim deed

enancy in common

Escrow

A condominium

29. Property acquired by a spouse by gift or inheritance or owned before the marriage is known as separate property.

True

False

30. The adverse possessor must use the land continuously, not intermittently.

True

False

31. In case of a leasehold estate, the landlord's interest in the property during the tenant's possession is a reversionary interest.

True

False

32. Leases can be created orally, unless the term of the lease exceeds the period specified by the Statute of Frauds

True

False

33. When a landlord breaches any of his duties, the tenant may seek damages either after termination or as an alternative to termination.

True

False

34. In an assignment, the tenant transfers all interest in the premises and all obligations.

True

False

35. As a general rule, when injury occurs on premises rented to a tenant, the landlord is liable.

True

False

36. Title I of the Consumer Credit Protection Act is popularly known as the Truth in Lending Act.

True

False

37. The Fair Credit and Charge Card Disclosure Act requires that credit card issuers disclose the annual percentage rate, annual fees, grace period, and other information on credit card applications

True

False

38. Under the Fair Credit Reporting Act, an applicant denied credit has the right to be told the name and address of the credit bureau that prepared the report on which the denial was based.

True

False

39. Garnishment, wage assignment, and confession of judgment are means of debt recovery.

True

False

40. The _____ is the total of all money paid for credit.

prime rate

floor limit

finance charge

balloon payment

floating rate

41. A lien is security obtained through operation of law.

True

False

42. A person who owes money to another is known as an obligor.

True

False

43. Attachment is the process by which a security interest becomes enforceable against the debtor with respect to the collateral.

True

False

44. A lien creditor is a creditor whose claim is based on operation of law as opposed to a creditor whose claim is based on agreement.

True

False

45. A person who owes money or a duty of performance to another is known as a(n):

obligor.

creditor.

pledger.

bailer.

debtor.

46. A mortgage is a security in which the collateral is a piece of land.

True

False

47. The party who holds a mortgage is known as the mortgagor.

True

False

48. A mortgage between parties is invalid if it is not recorded.

True

False

49. Recording a lien against real estate does not give the lienor an automatic right to the property if the debt remains unpaid.

True

False

50. Judicial sale and power of sale are the two types of sale used in:

foreclosure.

attachment.

perfection.

exoneration.

subrogation.