BYU ACC 241 FINAL EXAM, ACC 241
FINAL EXAM STUDY GUIDE
1. Who is responsible for debts and obligations of a partnership
with the business that cannot pay? - ANSWER-General
partners
2. Who is liable in a disclosed principal? - ANSWER-Principal only
(agent is liability free if they disclose who the principal is and
what they are doing for them)
3. Who is liable in a Partially disclosed principal? - ANSWER-
Agent and principal
4. Who is liable in an Undisclosed principal? - ANSWER-Agent and
principal
5. T/F: Members of an LLC have a liability shield against all debts
and obligations - ANSWER-True
6. Preferred shareholders (do/do not) have voting rights unless it
involves ______________. - ANSWER-do not
7. big company decisions
8. _____________ have priority when it comes to receiving dividends
from liquidation of assets - ANSWER-Preferred shareholders
,9. Shareholder Derivative Action - ANSWER-a legal claim brought
by the shareholders of a corporation against the corporation's
directors and officers when directors and officers harm
company and nothing is done to punish them
10. Pre-requisites for Shareholder Derivative Actions -
ANSWER-Shareholders first must make a demand of the
company to take action and the company must not have done
anything to do so
11. Business Judgement Rule - ANSWER-A rule that
immunizes corporate management from liability for actions
that result in corporate losses or damages if the actions are
undertaken in good faith
12. Quorum Voting Rules - ANSWER-To vote on a resolution,
>50% of board members must be present (this is called a
quorum). To pass the resolution, >50% of the original quorum
must vote in favor
13. Elements of an Implied-in-Fact Contract - ANSWER-1.
Person A furnishes goods/services to Person B
14. 2. A expected payment from B for goods/services
15. 3. B knew A expected to be paid
16. 4. B had the chance to reject goods/services, but did not
17. Offers are effective when __________________. - ANSWER-
Received
18. Revocation of offers is effective when __________________. -
ANSWER-Received
,19. Mailbox Rule says that acceptances are effective when
______________________ - ANSWER-sent
20. Exceptions to the Mailbox Rule - ANSWER-If parties agree
in advance that acceptance is not effective until received,
mailbox rule does not apply.
21. What holds legal value as consideration? - ANSWER-
Tangible payment
22. Promise to perform
23. Actually performing the action
24. Forbearance from performing an act
25. Bargained for exchange - ANSWER-Pre-existing duties
cannot count as consideration for new contract
26. Settlement Agreements - ANSWER-Only valid for
disputed debts (debts parties cannot agree on amount of)
27. Also known as "Accord in Satisfaction"
28. Promissory Estoppel - ANSWER-A brings lawsuit against
B regarding a promise, not a contract.
29. If A wants court to enforce the promise, A must prove
that they relied on B in a reasonable and substantial way.
30. Minor can disaffirm contract at any time until
_________________, and can only ratify a contract after
_______________. - ANSWER-they turn 18 and for a short while
after
31. turning 18
, 32. Minor's Duty of Restoration - ANSWER-Minor must return
collateral in same condition it existed at time of disaffirmation
of contract
33. Regulatory statutes - ANSWER-Licensing statutes that
are enacted to protect the public. Basically if a professional
that should be licensed and is not, any contract they enter
into is invalid
34. Exculpatory Clauses are never valid for ____________,
______________, _____________, or ___________________. Only valid for
______________ negligence if business offering exculpatory
clause is ______________________________________. - ANSWER-
Intentional, fraudulent, reckless, grossly negligent conduct
35. Ordinary
36. not important to public interest.
37. Mutual mistake of fact means ________________ can rescind
the contract. - ANSWER-Either party
38. Mutual mistake of value means _________________ can
rescind the contract. - ANSWER-Neither party
39. Is puffery fraud? - ANSWER-No
40. Define undue influence - ANSWER-When one person
takes advantage of another's mental, emotional, or physical
weakness to unduly persuade them to enter into a contract
FINAL EXAM STUDY GUIDE
1. Who is responsible for debts and obligations of a partnership
with the business that cannot pay? - ANSWER-General
partners
2. Who is liable in a disclosed principal? - ANSWER-Principal only
(agent is liability free if they disclose who the principal is and
what they are doing for them)
3. Who is liable in a Partially disclosed principal? - ANSWER-
Agent and principal
4. Who is liable in an Undisclosed principal? - ANSWER-Agent and
principal
5. T/F: Members of an LLC have a liability shield against all debts
and obligations - ANSWER-True
6. Preferred shareholders (do/do not) have voting rights unless it
involves ______________. - ANSWER-do not
7. big company decisions
8. _____________ have priority when it comes to receiving dividends
from liquidation of assets - ANSWER-Preferred shareholders
,9. Shareholder Derivative Action - ANSWER-a legal claim brought
by the shareholders of a corporation against the corporation's
directors and officers when directors and officers harm
company and nothing is done to punish them
10. Pre-requisites for Shareholder Derivative Actions -
ANSWER-Shareholders first must make a demand of the
company to take action and the company must not have done
anything to do so
11. Business Judgement Rule - ANSWER-A rule that
immunizes corporate management from liability for actions
that result in corporate losses or damages if the actions are
undertaken in good faith
12. Quorum Voting Rules - ANSWER-To vote on a resolution,
>50% of board members must be present (this is called a
quorum). To pass the resolution, >50% of the original quorum
must vote in favor
13. Elements of an Implied-in-Fact Contract - ANSWER-1.
Person A furnishes goods/services to Person B
14. 2. A expected payment from B for goods/services
15. 3. B knew A expected to be paid
16. 4. B had the chance to reject goods/services, but did not
17. Offers are effective when __________________. - ANSWER-
Received
18. Revocation of offers is effective when __________________. -
ANSWER-Received
,19. Mailbox Rule says that acceptances are effective when
______________________ - ANSWER-sent
20. Exceptions to the Mailbox Rule - ANSWER-If parties agree
in advance that acceptance is not effective until received,
mailbox rule does not apply.
21. What holds legal value as consideration? - ANSWER-
Tangible payment
22. Promise to perform
23. Actually performing the action
24. Forbearance from performing an act
25. Bargained for exchange - ANSWER-Pre-existing duties
cannot count as consideration for new contract
26. Settlement Agreements - ANSWER-Only valid for
disputed debts (debts parties cannot agree on amount of)
27. Also known as "Accord in Satisfaction"
28. Promissory Estoppel - ANSWER-A brings lawsuit against
B regarding a promise, not a contract.
29. If A wants court to enforce the promise, A must prove
that they relied on B in a reasonable and substantial way.
30. Minor can disaffirm contract at any time until
_________________, and can only ratify a contract after
_______________. - ANSWER-they turn 18 and for a short while
after
31. turning 18
, 32. Minor's Duty of Restoration - ANSWER-Minor must return
collateral in same condition it existed at time of disaffirmation
of contract
33. Regulatory statutes - ANSWER-Licensing statutes that
are enacted to protect the public. Basically if a professional
that should be licensed and is not, any contract they enter
into is invalid
34. Exculpatory Clauses are never valid for ____________,
______________, _____________, or ___________________. Only valid for
______________ negligence if business offering exculpatory
clause is ______________________________________. - ANSWER-
Intentional, fraudulent, reckless, grossly negligent conduct
35. Ordinary
36. not important to public interest.
37. Mutual mistake of fact means ________________ can rescind
the contract. - ANSWER-Either party
38. Mutual mistake of value means _________________ can
rescind the contract. - ANSWER-Neither party
39. Is puffery fraud? - ANSWER-No
40. Define undue influence - ANSWER-When one person
takes advantage of another's mental, emotional, or physical
weakness to unduly persuade them to enter into a contract
