Which one of the following is a lawsuit that may be filed by one or more stockholders
on behalf of the corporation to address the action of a corporate officer or director
who has diverted corporate assets for personal use or otherwise mismanaged the
corporation?
Give this one a try later!
Derivative action (Under certain circumstances, one or more stockholders
may sue on the corporation's behalf in a derivative action. Class actions are
brought on behalf of a group of individuals, but are brought on their behalf
—not on behalf of the corporation. Direct actions are filed by individuals—
not groups. There is no type of lawsuit called a "stockholder's action.")
Generally, which one of the following describes how The Patriot Act of 2001 affects
the government's ability to gain access to financial information and business records?
Give this one a try later!
, The Patriot Act broadens the government's ability to obtain business
records, to issue subpoenas, and to gain access to personal financial
information without any evidence of wrongdoing. (The Patriot Act
broadens the government's ability to obtain business records, to issue
subpoenas, and to gain access to personal financial information without
any evidence of wrongdoing.)
Betty Lou, who owes Hillary $300, sells a gem necklace to Jennifer for $600. Betty Lou
receives $300 in cash and Jennifer's promise to pay $300 to Hillary to discharge Betty
Lou's debt to Hillary. In this situation, Hillary is best described as
Give this one a try later!
A creditor beneficiary. (Hillary is a creditor beneficiary which is a third-party
beneficiary who is owed a debt that is to be satisfied by performance of a
contract.)
Jack and JoAnn who are spouses, live in a western state of the United States and when
they divorced they equally shared all property acquired while they were married.
There was also property owned individually at the time they were married as well as
property inherited by JoAnn. Their state is using laws relating to
Give this one a try later!
Community Property (Under the community property concept, spouses
share equally in all community property, and the amount of their individual
contribution to the joint effort does not change the equal interest
Under contract law, the improper use of power or trust to deprive a person of free
will and to substitute his or her objective with someone else's is called
,Give this one a try later!
Undue influence. (The improper use of power or trust to deprive a person
of free will and to substitute his or her objective with someone else's is
undue influence. Fraud is the misrepresentation of facts that causes harm to
another. Duress is the use of restraint, violence, threats of violence, or
wrongful pressure to compel a party to act contrary to his or her wishes or
interests. Innocent misrepresentation is similar to fraud but without
intention.)
Kate plans to give her son a gift of $5,000 for college tuition. Which one of the
following elements must such a gift possess?
Give this one a try later!
Constructive or physical delivery of the gift (This must be done by
constructive or physical delivery of the gift. The three elements of a gift are
donative intent, delivery, and acceptance. Delivery can be by physical
transfer, constructive, or implied by law [usually in estate law].)
Cheryl owns a house on a city lot. The city enacted a new zoning law requiring greater
setbacks, that is, buildings cannot be closer than a prescribed distance from the street
or adjoining property lines. Cheryl's house does not comply with the new law. On
which one of the following bases could Cheryl be entitled to relief from the new
zoning law?
Give this one a try later!
, Nonconforming use (Nonconforming use is the basis for which Cheryl is
entitled to relief from the new zoning law. A nonconforming use is a land
use that is impermissible under current zoning restrictions but that is
allowed because the use was lawful before the restrictions took effect.)
The type of insurance agent who derives all powers and duties directly from the
agency contract is the
Give this one a try later!
Soliciting agent. (An insurance producer whose authority is limited by
contract with an insurer to soliciting applications for insurance and
performing other acts directly incident to those activities is a soliciting
agent. Special agents are more restricted, and brokers represent the public
rather than the insurer. The general agent has broad powers to enter into
contracts on behalf of one or more insurers.)
Colson makes knives and swords as a hobby selling his products on a non-advertised
basis. He does not package his products but does provide a warranty against defects.
If a parent whose child is injured by one of Colson's ever-sharp knives sues Colson
under strict liability, which one of the following statements may be true?
Give this one a try later!
Colson would be strictly liable only if the knife was unreasonably
dangerous in normal use. (In a strict liability lawsuit, Colson would be
strictly liable only if the knife was unreasonably dangerous in normal use.
Negligence and harm to a third party are not factors. Knives are known to
be dangerous therefore only if the knife was unreasonably dangerous when
used under normal conditions would strict liability apply.)
on behalf of the corporation to address the action of a corporate officer or director
who has diverted corporate assets for personal use or otherwise mismanaged the
corporation?
Give this one a try later!
Derivative action (Under certain circumstances, one or more stockholders
may sue on the corporation's behalf in a derivative action. Class actions are
brought on behalf of a group of individuals, but are brought on their behalf
—not on behalf of the corporation. Direct actions are filed by individuals—
not groups. There is no type of lawsuit called a "stockholder's action.")
Generally, which one of the following describes how The Patriot Act of 2001 affects
the government's ability to gain access to financial information and business records?
Give this one a try later!
, The Patriot Act broadens the government's ability to obtain business
records, to issue subpoenas, and to gain access to personal financial
information without any evidence of wrongdoing. (The Patriot Act
broadens the government's ability to obtain business records, to issue
subpoenas, and to gain access to personal financial information without
any evidence of wrongdoing.)
Betty Lou, who owes Hillary $300, sells a gem necklace to Jennifer for $600. Betty Lou
receives $300 in cash and Jennifer's promise to pay $300 to Hillary to discharge Betty
Lou's debt to Hillary. In this situation, Hillary is best described as
Give this one a try later!
A creditor beneficiary. (Hillary is a creditor beneficiary which is a third-party
beneficiary who is owed a debt that is to be satisfied by performance of a
contract.)
Jack and JoAnn who are spouses, live in a western state of the United States and when
they divorced they equally shared all property acquired while they were married.
There was also property owned individually at the time they were married as well as
property inherited by JoAnn. Their state is using laws relating to
Give this one a try later!
Community Property (Under the community property concept, spouses
share equally in all community property, and the amount of their individual
contribution to the joint effort does not change the equal interest
Under contract law, the improper use of power or trust to deprive a person of free
will and to substitute his or her objective with someone else's is called
,Give this one a try later!
Undue influence. (The improper use of power or trust to deprive a person
of free will and to substitute his or her objective with someone else's is
undue influence. Fraud is the misrepresentation of facts that causes harm to
another. Duress is the use of restraint, violence, threats of violence, or
wrongful pressure to compel a party to act contrary to his or her wishes or
interests. Innocent misrepresentation is similar to fraud but without
intention.)
Kate plans to give her son a gift of $5,000 for college tuition. Which one of the
following elements must such a gift possess?
Give this one a try later!
Constructive or physical delivery of the gift (This must be done by
constructive or physical delivery of the gift. The three elements of a gift are
donative intent, delivery, and acceptance. Delivery can be by physical
transfer, constructive, or implied by law [usually in estate law].)
Cheryl owns a house on a city lot. The city enacted a new zoning law requiring greater
setbacks, that is, buildings cannot be closer than a prescribed distance from the street
or adjoining property lines. Cheryl's house does not comply with the new law. On
which one of the following bases could Cheryl be entitled to relief from the new
zoning law?
Give this one a try later!
, Nonconforming use (Nonconforming use is the basis for which Cheryl is
entitled to relief from the new zoning law. A nonconforming use is a land
use that is impermissible under current zoning restrictions but that is
allowed because the use was lawful before the restrictions took effect.)
The type of insurance agent who derives all powers and duties directly from the
agency contract is the
Give this one a try later!
Soliciting agent. (An insurance producer whose authority is limited by
contract with an insurer to soliciting applications for insurance and
performing other acts directly incident to those activities is a soliciting
agent. Special agents are more restricted, and brokers represent the public
rather than the insurer. The general agent has broad powers to enter into
contracts on behalf of one or more insurers.)
Colson makes knives and swords as a hobby selling his products on a non-advertised
basis. He does not package his products but does provide a warranty against defects.
If a parent whose child is injured by one of Colson's ever-sharp knives sues Colson
under strict liability, which one of the following statements may be true?
Give this one a try later!
Colson would be strictly liable only if the knife was unreasonably
dangerous in normal use. (In a strict liability lawsuit, Colson would be
strictly liable only if the knife was unreasonably dangerous in normal use.
Negligence and harm to a third party are not factors. Knives are known to
be dangerous therefore only if the knife was unreasonably dangerous when
used under normal conditions would strict liability apply.)
