BUS 201 - (SANFORD) FINAL EXAM QUESTIONS WITH
ACCURATE ANSWERS
A director, who cannot attend a board meeting due to a good reason, is allowed
to vote by proxy. correct answer This statement is incorrect.
A mother lives in Indian River and has a farm with 400 acres valued at $400,000.
The farm is in the mother's name only (her husband had previously died). When
she dies, she wants to give her estate to her three children equally and avoid
probate. Based on our discussion, how could the mother do this? correct answer
Re-title mom's property so the three children and the mom are joint tenants or
put all property in a trust, during mom's life-time, naming the children as
beneficiaries of the trust, are both good answers.
A pig farmer, Billy, paid approximately $200,000 for an Italian sports car, and the
car was in the name of Billy without any lien against the car. Approximately two
years later, Billy files a petition in Chapter 7 bankruptcy showing $1 million in
debts and only $1,000 in assets. The car was not listed as an asset in Billy's
chapter 7 bankruptcy petition. Later, it was discovered that, prior to filing the
Chapter 7 petition, Billy had transferred the sports car to his mother for
approximately $200. Billy's mother was unaware she was the owner of Billy's car.
As a result of all of this, what happened to Billy? correct answer Billy was not
allowed to go bankrupt (he ended-up going to jail for bankruptcy fraud for
attempting to hide assets from his creditors), and the bankruptcy court got the
sports car for the benefit of Billy's creditors.
A teacher (in this question, the creditor) loans $8,000 to a friend (in this question,
the debtor), and there is no security for the debt. Later the friend does not pay-
back the teacher. If the teacher wishes to get her money back, what must teacher
do? Also, note that the teacher and friend are no longer friends (in general, this is
one of the reasons you do not loan money to friends and relatives--remember
professor Sanford telling you in the video lecture). correct answer The teacher
,can sue debtor (her X-friend) for non-payment of the debt. If teacher gets a legal
judgement against the debtor, teacher has two options: garnish the wages of the
friend and / or attempt to attach the debtor's property for non-payment of the
debt..
A trust has three parties involved. Name the three parties: correct answer The
trustee, the grantor, and the beneficiary
Ace is an agent for the Parker Manufacturing Company. After completing a
$2,000,000 deal with a customer one day, Ace receives a token of personal
friendship from the customer's president: a new $95,000 Porsche 911 sports car.
In this case correct answer Ace must turn the car over to Parker.
An agent's implied authority is derived from an agent's express authority and
consists of what is reasonably necessary for carrying out the agent's grant of
express authority. correct answer true
An East Grand Rapids policeman negligently shot himself when he pulled his gun
out of his hoster when confronting a "bad guy" while the policeman was "on the
job" (the policeman claimed that the gun had a very sensitive trigger action). Who
is the policeman allowed to sue for his injuries? correct answer The manufacture
of the handgun.
An NFL football player "crashed" a party where the home-owner asked football
player to leave. Football player beat-up and kicked home-owner, before football
player left the party. The home-owner called the police and went to the hospital
(home-owner had $100,000 in medical bills related to the injury). The police
arrested football player and charged him with felony battery. Football player pled
guilty to misdemeanor battery. Football player loses his job playing football and
now has $500,000 in debt (credits cards and other unsecured debt) and, in
, addition, football player is being sued by home-owner for $600,000 ($100,000 in
medical bills and $500,000 in pain and suffering from the battery by football
player). Football player, who only has assets of $20,000 and now works at
Wendy's making $18,000 per year, files a petition in Chapter 7 bankruptcy. Is filing
Chapter 7 bankruptcy the right strategy? correct answer Football player should
file Chapter 11 bankruptcy since football player does not qualify for Chapter 13.
The home-owner lawsuit is a non-dischargeable debt under Chapter 7 but may be
paid-off under a Chapter 11 petition.
Anker wishes to give Mix a power of attorney. In general, the power of attorney
correct answer May limited Mix's authority to specific transactions
Aunt Mary dies and she has no relatives (blood heirs). She leaves everything she
owns to Vivian (a total of $60,000 after all administrative expenses). Based on our
video class discussion and related outline material, and assuming Vivian was just a
friend of Aunt Mary, what is the best answer? correct answer Vivian can reject
this inheritance and elect to receive nothing.
Based on our video and outline discussion, if a man is married, has no children,
has one living parent, and dies "intestate," the surviving wife will generally receive
how much of the property that must go through "probate?" correct answer The
first $150,000 plus 3/4 of the intestate (probate) estate, and the parent receives
the remaining 1/4.
Based on our video class discussion and outline material, why was Rosa Parks
arrested on a bus in Montgomery, Alabama, on December 1, 1955? correct
answer Rosa refused to give-up her seat to a white person when ordered to do so
by the bus driver (a violation of Alabama law).
ACCURATE ANSWERS
A director, who cannot attend a board meeting due to a good reason, is allowed
to vote by proxy. correct answer This statement is incorrect.
A mother lives in Indian River and has a farm with 400 acres valued at $400,000.
The farm is in the mother's name only (her husband had previously died). When
she dies, she wants to give her estate to her three children equally and avoid
probate. Based on our discussion, how could the mother do this? correct answer
Re-title mom's property so the three children and the mom are joint tenants or
put all property in a trust, during mom's life-time, naming the children as
beneficiaries of the trust, are both good answers.
A pig farmer, Billy, paid approximately $200,000 for an Italian sports car, and the
car was in the name of Billy without any lien against the car. Approximately two
years later, Billy files a petition in Chapter 7 bankruptcy showing $1 million in
debts and only $1,000 in assets. The car was not listed as an asset in Billy's
chapter 7 bankruptcy petition. Later, it was discovered that, prior to filing the
Chapter 7 petition, Billy had transferred the sports car to his mother for
approximately $200. Billy's mother was unaware she was the owner of Billy's car.
As a result of all of this, what happened to Billy? correct answer Billy was not
allowed to go bankrupt (he ended-up going to jail for bankruptcy fraud for
attempting to hide assets from his creditors), and the bankruptcy court got the
sports car for the benefit of Billy's creditors.
A teacher (in this question, the creditor) loans $8,000 to a friend (in this question,
the debtor), and there is no security for the debt. Later the friend does not pay-
back the teacher. If the teacher wishes to get her money back, what must teacher
do? Also, note that the teacher and friend are no longer friends (in general, this is
one of the reasons you do not loan money to friends and relatives--remember
professor Sanford telling you in the video lecture). correct answer The teacher
,can sue debtor (her X-friend) for non-payment of the debt. If teacher gets a legal
judgement against the debtor, teacher has two options: garnish the wages of the
friend and / or attempt to attach the debtor's property for non-payment of the
debt..
A trust has three parties involved. Name the three parties: correct answer The
trustee, the grantor, and the beneficiary
Ace is an agent for the Parker Manufacturing Company. After completing a
$2,000,000 deal with a customer one day, Ace receives a token of personal
friendship from the customer's president: a new $95,000 Porsche 911 sports car.
In this case correct answer Ace must turn the car over to Parker.
An agent's implied authority is derived from an agent's express authority and
consists of what is reasonably necessary for carrying out the agent's grant of
express authority. correct answer true
An East Grand Rapids policeman negligently shot himself when he pulled his gun
out of his hoster when confronting a "bad guy" while the policeman was "on the
job" (the policeman claimed that the gun had a very sensitive trigger action). Who
is the policeman allowed to sue for his injuries? correct answer The manufacture
of the handgun.
An NFL football player "crashed" a party where the home-owner asked football
player to leave. Football player beat-up and kicked home-owner, before football
player left the party. The home-owner called the police and went to the hospital
(home-owner had $100,000 in medical bills related to the injury). The police
arrested football player and charged him with felony battery. Football player pled
guilty to misdemeanor battery. Football player loses his job playing football and
now has $500,000 in debt (credits cards and other unsecured debt) and, in
, addition, football player is being sued by home-owner for $600,000 ($100,000 in
medical bills and $500,000 in pain and suffering from the battery by football
player). Football player, who only has assets of $20,000 and now works at
Wendy's making $18,000 per year, files a petition in Chapter 7 bankruptcy. Is filing
Chapter 7 bankruptcy the right strategy? correct answer Football player should
file Chapter 11 bankruptcy since football player does not qualify for Chapter 13.
The home-owner lawsuit is a non-dischargeable debt under Chapter 7 but may be
paid-off under a Chapter 11 petition.
Anker wishes to give Mix a power of attorney. In general, the power of attorney
correct answer May limited Mix's authority to specific transactions
Aunt Mary dies and she has no relatives (blood heirs). She leaves everything she
owns to Vivian (a total of $60,000 after all administrative expenses). Based on our
video class discussion and related outline material, and assuming Vivian was just a
friend of Aunt Mary, what is the best answer? correct answer Vivian can reject
this inheritance and elect to receive nothing.
Based on our video and outline discussion, if a man is married, has no children,
has one living parent, and dies "intestate," the surviving wife will generally receive
how much of the property that must go through "probate?" correct answer The
first $150,000 plus 3/4 of the intestate (probate) estate, and the parent receives
the remaining 1/4.
Based on our video class discussion and outline material, why was Rosa Parks
arrested on a bus in Montgomery, Alabama, on December 1, 1955? correct
answer Rosa refused to give-up her seat to a white person when ordered to do so
by the bus driver (a violation of Alabama law).
