Business - Business Law / Quizlet 4

1

On May 1, 2010, Cynthia Hendrix bought her home and First Bank recorded its mortgage. On June 24, 2012, Cynthia sold her home to Stanton Gulbrandsen for $250,000. At that time, Cynthia's mortgage was $225,000. Stanton assumed Cynthia's mortgage and gave Second Bank a second mortgage for $225,000. Second Bank did not record its mortgage. On October 12, 2014, Stanton sold the home to Derek Bolger

2

Brian is a police officer. He just turned 54 years old and is worried that he will be forced to retire next year when he turns 55 . The Age Discrimination in Employment Act will protect him if his employer tries to force him to retire early

3

___________ - contract to substitute a 3rd party in the place of one of the original contract parties. Used by promoters to allow corporations to assume liability once formed.

4

MegaCorp purchased 10,000 shares of its own stock that had previously been owned by private investors. The stock MegaCorp repurchased is called

5

Gambling Contracts. No law prohibits citizens in a state that does not sponsor a state-operated lottery from purchasing lottery tickets in a state that does have such a lottery. Because Georgia did not have a state-operated lottery, Talley and several

Gambling contracts
The Georgia Supreme Court held in part that an agreement to purchase a ticket in a lottery sponsored by another state and to share the proceeds if it won was not a gambling contract. The court explained that "[i]n a gambling contract one of [the parties] is certain to lose. By the terms of such a contract the consideration must fall to the one or the other upon the determination of the specified event." In this case, the parties did not contract to gamble against one another—they contracted to gamble against the state of Kentucky. The only gambling contract involved was between the state of Kentucky and the holder of the winning lottery ticket. Thus, the issue was whether public policy permitted the parties to evade enforcement of their own agreement. The court held that it did not: "There is nothing perceptibly evil, vicious, wicked, immoral or shocking to the prevailing moral sense in this agreement. It was simply an arrangement of convenience and neither party intended to circumvent the law or participate in an illegal act. No [Georgia] law prohibits the purchase of a lottery ticket in [Kentucky] and that is the ‘act' contemplated here. That contemplated act was legal, therefore the underlying agreement is also legal and enforceable in [Georgia] courts." In fact, concluded the court, "[T]he public policy of this state would be violated if [Talley] were denied the opportunity to seek to enforce the alleged agreement."

6

In Hughes v. Oklahoma, Oklahoma law forbid the export of natural minnows, to help protect the state's natural resources. When this law was challenged, the Supreme Court held that the law was inconsistent with the basic principle that:

7

Congress enacted the FLSA in: A) 1940

8

Ron operates a garbage pickup business. He contracts to pick up garbage from an apartment complex for the next 52 weeks at a price of $150 per week. Unexpectedly, the landfill center where Ron takes the garbage to dispose of it, files for bankruptcy. As a result, Ron must travel an additional 100 miles to the nearest landfill center, turning Ron's expected profit into a loss of $40 per week

9

In 2000, Jack executed a valid will in which he left his entire estate to the Heart Fund. In 2008, Jack was declared incompetent and committed to an institution. At his death in 2015, his son, Brian, who was his sole survivor, contested the will claiming that Jack was obviously incompetent. Will Brian prevail with this argument? Explain.

10

In Zuckerman v. Antenucci the jury found:

11

A family law court is an example of a small claims court

12

The attorney-client privilege identifies the right an attorney has to garnish a client's wages if a client fails after 30 days to pay a fee bill

13

When firms competing at the same level of business agree to allocate territories in a market, and fix prices at the same time, the following may result:

14

A corporate charter is filed with:

15

Which of the following is an antitrust statute:

16

An individual commits a crime willfully if they act voluntarily and purposefully, even if there is a good-faith misunderstanding of the law.

17

What are the liabilities of a limited partner in a limited partnership?

18

The contributory negligence defense allows a defendant to

19

Brice is on the board of ABC Corporation. XYZ Corporation has made a move to acquire ABC. Tina, the president of ABC advises the board that the offer made by XYZ is a good one that should be accepted. She did not disclose, however, that XYZ had offered her a generous bonus if she could convince the board members of ABC to take XYZ's offer. Brice tells the other board members that they should

20

A written agreement to the effect that the parties do not intend to form a partnership is not conclusive if their actions provide evidence of their intent to form a relationship that meets the RUPA partnership test.

21

[Hang Glider] Monte borrows money from A&Z Bank and the bank has a secured interest in Monte's hang glider. The bank files a financing statement which identifies Dryden, another debtor of the bank, as the debtor for this transaction. Monte also borrows money from his neighbor, and he uses the hang glider as collateral on that transaction. His neighbor was unaware that Monte had used the hang glider as collateral for the bank loan. Monte fails to make his payment to the bank. The bank claims it should take possession of the hang glider because it has a perfected interest. When Dryden learns about the bank's interest in the hang glider, he calls that bank and tells them he has first dibs on the hang glider because their loan to Monte was not public knowledge. The bank tells Dryden that they

22

Which of the following is an insurer's duty?

23

Which of the following is true of employment discrimination as defined under Title VII of the Civil Rights Act of 1964?

24

A(n) ________ is submitted along with the registration statement to the Securities and Exchange Commission (SEC), and is also used as a selling tool to help prospective investors evaluate the financial risk of an investment.

25

To be called a guest, a person ought to have traveled a long distance and reached the hotel

26

The Constitution gives Congress the power to tax in:

27

International investment disputes are arbitrated by: A) The International Chamber of Commerce

28

The act of others joining as parties to an existing lawsuit is called ________.

29

A ________ is a product formula, pattern, design, compilation of data, customer list, or other covert business information.

30

Whenever a power relationship in the workplace is combined with a private sexual relationship, a tacit implication of ________ enters the scenario

31

Duress occurs when

32

Dihydrogen oxide is a major air pollutant regulated under the Clean Air Act

33

If a dispute falls within a ________ proceeding, the bankruptcy judge can hear and determine the controversy.

34

Shift differentials are allowed under the Equal Pay Act of 1963

35

Ellen contracts with James to be her stockbroker, making stock trades for Ellen's account. Ellen need not pre- approve the trades that James makes, only trades for more than $20,000 . Ellen and James include a clause stating "that in case of any disputes arising out of this contract; the dispute shall be arbitrated using the rules of the New York Stock Exchange." Ellen learns that since signing

36

A statement that negates express and implied warranties is known as a ________.

37

Raphaelle employs a variety of will substitutes to transfer her assets, which consist principally of cash and investments in mutual funds, outside the probate process. In this situation, the most important consideration is to

38

The tendency for members of a group to internalize the group's values and perceptions and to suppress critical thought is known as ________.

39

What is preferred stock? What are its various categories?

Preferred stock is a class of stock that entitles its owner to special preferences relating either to dividends or to the distribution of assets. Most preferred stock is preferred as to dividends, meaning that in every year in which the corporation pays a dividend, the preferred shareholders are paid before the common shareholders at a rate stipulated in the articles of incorporation. Preferred stock frequently has limited voting rights. It is also generally redeemable, meaning that the corporation has the right to exchange each preferred share for a pre-specified monetary amount.
If the stock is cumulative preferred, the preferred shareholders do not lose their rights to a dividend during a year in which no dividends are paid. Rather, their rights to each year's unpaid dividends accumulate. Thus, during the next year in which dividends are paid, the preferred shareholders receive all past dividends that have accumulated plus the present year's dividend before any dividends are paid to the common shareholders.
If the stock is participating preferred, the preferred shareholders first receive their dividends at the preferred rate. The common shareholders receive dividends at the same rate. The remaining income is shared, on a pro rata basis, by the common and preferred stockholders.
If the stock is liquidation preferred, upon liquidation of the corporation, preferred shareholders receive either the par value of their stock or a specified monetary amount before the common shareholders share pro rata in the remainder of the assets. Liquidation preferences may also be participating.
Finally, preferred stock may be convertible. At the holder's request, such stock may be exchanged for common stock at a stated ratio.

40

________ will usually state whether an LLC is member-managed or manager-managed and how members will share profits.