Question 1

The most dominant form of business organization in America is the:
A)Partnership.
B)Proprietorship.
C)Limited Partnership.
D)Corporation.

Accepted Answer

The most dominant form of business organization in America is the corporation. Corporations have the advantage of limited liability, which means the owners are not personally responsible for the debts and obligations of the company. In addition, corporations have access to greater resources, such as the ability to raise capital through the sale of stocks and bonds. This makes them an attractive option for investors and allows them to compete in the marketplace.

Question 2

The partners in a limited liability partnership are liable for the debts of the LLP:
A)Beyond their investment.
B)Not beyond their investment.
C)Both of the above.
D)None of the above.

Accepted Answer

The whole point of a limited liability partnership is that the partners are not personally liable for the debts and liabilities of the business beyond their investment. Therefore, option B is the correct answer. Option A is incorrect because it contradicts the fundamental nature of an LLP. Option C is incorrect because liabilities are not extending beyond the investment, and Option D is incorrect because LLP partners do have limited liability.

Question 3

If a testator's will leaves his red Ferrari to his butler and his yellow Ferrari to his maid,and at the time of his death,the yellow Ferrari was sold,the following doctrine applies:
A)Abatement.
B)Ademption.
C)Recrimination.
D)Bequestability.

Accepted Answer

Ademption is the legal doctrine that applies when a gift in a will no longer exists at the time of the testator's death. In this case, the yellow Ferrari was sold before the testator's death, which means it was no longer available to be given as a gift in the will. As a result, the gift of the yellow Ferrari to the maid has been adeemed and the maid will not receive anything in its place. The butler will still receive the gift of the red Ferrari. Abatement refers to the reduction in the amount of gifts to beneficiaries when there are not enough assets in the estate to cover all the gifts specified in the will. Recrimination and bequestability are not relevant legal doctrines in this context.

Question 4

"If my niece has predeceased me,then I give my double-barrel shotgun to my nephew" is what type of gift?
A)Residuary.
B)Specific.
C)Barbaric.
D)General.

Accepted Answer

The answer of "If my niece has predeceased me,then I...

Question 5

The FedEx delivery person gets in an accident while delivering a package.Who is liable?
A)The delivery person.
B)FedEx.
C)Both of the above.
D)None of the above.

Accepted Answer

Both the delivery person and FedEx may be liable, depending on the specific circumstances of the accident. If the delivery person was driving recklessly or negligently, then they may be personally responsible for any injuries or damages caused by the accident. However, if the accident occurred due to a malfunctioning FedEx truck or other equipment, then FedEx may also be liable for any resulting injuries or damages. Ultimately, liability would need to be determined based on a thorough investigation of the accident and the actions of all parties involved.

Question 6

A child who voluntarily leaves their parents and then lives on their own is:
A)An idiot.
B)Paroled.
C)Emancipated.
D)Allowed to vote,but not drink and smoke.

Accepted Answer

Emancipation is the legal process by which a minor is granted the rights and responsibilities of an adult. This includes the right to live on their own, sign contracts, and make their own decisions. It is a serious decision that is made by a court and is only granted in certain circumstances, such as if the child is being abused or has a stable source of income. Choices A, B, and D are not accurate or relevant to the situation.

Question 7

Under the objective rule,following the breakup of the engagement,the groom-to-be gets the engagement ring back:
A)If the darn thing is under a carrot.
B)Never.
C)If the bride is at fault for the breakup.
D)Always.

Accepted Answer

The objective rule states that the groom-to-be gets the engagement ring back if the bride is at fault for the breakup.

Question 8

The parent who has legal custody of a child has:
A)The right to make day-to-day decisions concerning the child's matters.
B)The physical custody of the child as well,generally.
C)Both of the above.
D)None of the above.

Accepted Answer

The parent who has legal custody of a child has both the right to make day-to-day decisions concerning the child's matters and the physical custody of the child as well, generally. Legal custody means that the parent has the right to make important decisions about the child's upbringing, such as education, medical care, and religion. Physical custody refers to where the child lives and who cares for the child on a day-to-day basis. Therefore, both options A and B are correct.

Question 9

The document that in great detail governs the internal management structure of the corporation is called the:
A)Articles of Incorporation.
B)Executive compensation agreement.
C)Meeting minutes.
D)Bylaws.

Accepted Answer

Bylaws are the internal rules or regulations of a corporation that govern its day-to-day operations and structure. They typically outline the roles and responsibilities of the board of directors, officers, and shareholders, as well as the procedures for conducting meetings and making decisions. The articles of incorporation establish the corporation as a legal entity, but they do not provide as much detail about the internal management structure. The executive compensation agreement and meeting minutes are specific documents that relate to executive compensation packages and the minutes of meetings, respectively, but they do not provide comprehensive governance structure details.

Question 10

A limited liability company is most like the following organizations:
A)A sole proprietorship.
B)A general partnership.
C)A limited liability partnership.
D)A corporation.

Accepted Answer

A limited liability company shares many characteristics with a corporation, such as limited liability for owners, flexible management structure, and the ability to raise capital through the sale of ownership interests. Both entities also require the filing of formal paperwork with the state in which they are formed. While a sole proprietorship and general partnership have unlimited liability for owners and limited formalities, a limited liability partnership is a hybrid between a general partnership and an LLC and has slightly different characteristics.

Question 11

An employee in a factory who is injured by his or her employer's negligence can sue:
A)No one.
B)The employer.
C)Him- or herself.
D)The worker's compensation board.

Accepted Answer

The answer of An employee in a factory who is...

Question 12

All of the following are required for an adoption to take place except:
A)The biological parents and adoptive parents personally meet each other.
B)All procedures of the state law for adoption are met.
C)The biological parents' legal rights as parents are terminated by legal decree or death.
D)A court formally approves the adoption.

Accepted Answer

While it is encouraged for the biological parents and adoptive parents to meet, it is not a requirement for an adoption to take place. The other options listed (B, C, and D) are required for an adoption to take place.

Question 13

Which of the following is not a characteristic of a corporation?
A)Limited liability of shareholders.
B)Perpetual existence.
C)Pass-through taxation.
D)Centralized management.

Accepted Answer

Pass-through taxation is not a characteristic of a corporation, but rather of a pass-through entity such as a partnership or sole proprietorship. Corporations are subject to double taxation, meaning that profits are taxed at both the corporate level and the individual shareholder level. This is a disadvantage compared to pass-through entities, where profits are only taxed once at the individual level. The other choices (A, B, and D) are all characteristics of a corporation.

Question 14

The "coming and going" rule says that principals are generally not liable for injuries caused by their agents and employees:
A)On their way to the bathroom.
B)On their way to a business meeting.
C)On their way to a business lunch.
D)On their way to work.

Accepted Answer

The "coming and going" rule refers to injuries that occur while an agent or employee is commuting to or from work. Therefore, option D is the best choice as it correctly applies to the rule. The other options refer to activities that may occur during the course of work, and injuries resulting from them may be subject to different rules.

Question 15

Title VII prohibits employment discrimination in the following:
A)Decisions regarding promotion or demotion.
B)Compensation.
C)None of the above.
D)Both of the above.

Accepted Answer

Title VII prohibits employment discrimination in decisions regarding promotion or demotion as well as in compensation. Discrimination based on race, color, religion, sex, or national origin is illegal in both of these areas.

Question 16

The type of trust that is created in someone's will is a:
A)Testamentary trust.
B)Inter vivos trust.
C)Implied trust.
D)Causa mortis trust.

Accepted Answer

A testamentary trust is created in someone's will and takes effect upon their death. The trust is funded by assets specifically designated in the will and is managed by a trustee for the benefit of the beneficiaries named in the will.

Question 17

All of the following are exceptions to the rule that a principal is not liable for the independent contractor's torts except:
A)Nondelegable duties.
B)Special risks.
C)Negligence per se.
D)Negligence in the selection of an independent contractor.

Accepted Answer

Negligence per se is not an exception to the rule that a principal is not liable for the independent contractor's torts. The other options are recognized exceptions where a principal may be held liable.

Question 18

The following type of property is considered community property:
A)Money placed in pension funds.
B)The value of a business owned by one of the spouses.
C)None of the above.
D)Both of the above.

Accepted Answer

Both money placed in pension funds and the value of a business owned by one of the spouses are considered community property if they were acquired during the marriage. Community property refers to assets that are owned equally by both spouses in a marriage.

Question 19

The following is not required to make a will:
A)Testamentary capacity.
B)Writing.
C)Self-proving clause.
D)Testator's signature.

Accepted Answer

While a self-proving clause is useful in establishing the validity of a will, it is not essential for creating a valid will. Testamentary capacity, writing, and the testator's signature are all required elements for a will to be legally valid.

Question 20

Intestate succession involves looking for:
A)Intestate property.
B)Heirs.
C)Estate property.
D)Escheat.

Accepted Answer

Intestate succession involves identifying the heirs of a person who died without a will, so that the deceased's property can be distributed among them. Therefore, the correct choice is B, as intestate succession is not about looking for intestate property or escheat, and estate property is not a specific focus of this process.

Quiz 1: Midterm One

The most dominant form of business organization in America is the:

The partners in a limited liability partnership are liable for the debts of the LLP:

If a testator's will leaves his red Ferrari to his butler and his yellow Ferrari to his maid,and at the time of his death,the yellow Ferrari was sold,the following doctrine applies:

"If my niece has predeceased me,then I give my double-barrel shotgun to my nephew" is what type of gift?

The FedEx delivery person gets in an accident while delivering a package.Who is liable?

A child who voluntarily leaves their parents and then lives on their own is:

Under the objective rule,following the breakup of the engagement,the groom-to-be gets the engagement ring back:

The parent who has legal custody of a child has:

The document that in great detail governs the internal management structure of the corporation is called the:

A limited liability company is most like the following organizations:

An employee in a factory who is injured by his or her employer's negligence can sue:

All of the following are required for an adoption to take place except:

Which of the following is not a characteristic of a corporation?

The "coming and going" rule says that principals are generally not liable for injuries caused by their agents and employees:

Title VII prohibits employment discrimination in the following:

The type of trust that is created in someone's will is a:

All of the following are exceptions to the rule that a principal is not liable for the independent contractor's torts except:

The following type of property is considered community property:

The following is not required to make a will:

Intestate succession involves looking for: