BUS230
Business Law
LATEST MIDTERM REVIEW
© 2024/2025
,1. Which of the following is a primary purpose of the Uniform
Commercial Code (UCC)?
A. To facilitate uniform state laws regarding different business
transactions
B. To promote international trade
C. To standardize corporate governance
D. To regulate employment contracts
Correct Answer: A
Rationale: The UCC aims to create consistency in business
transactions across states, simplifying the legal framework for
commerce.
2. Under Article 2 of the UCC, which of the following is an
essential element of a contract for the sale of goods?
A. Offer and acceptance
B. Mention of specific goods
C. Consideration
D. All of the above
Correct Answer: D
Rationale: Article 2 of the UCC outlines that all the elements
listed are necessary for a valid sale of goods contract.
© 2024/2025
, 3. In corporate law, which doctrine allows shareholders to hold
corporate managers liable for unbusinesslike conduct?
A. Business Judgment Rule
B. Piercing the Corporate Veil
C. Fiduciary Duty
D. Ultra Vires
Correct Answer: C
Rationale: Shareholders can hold managers accountable for
failing to act in the company’s best interests, which involves
fiduciary duties.
4. Which type of intellectual property protection is used for
inventions?
A. Copyrights
B. Trademarks
C. Patents
D. Trade Secrets
Correct Answer: C
Rationale: Patents provide legal protection for inventions,
granting the holder exclusive rights to use, sell, or distribute the
innovation.
© 2024/2025
Business Law
LATEST MIDTERM REVIEW
© 2024/2025
,1. Which of the following is a primary purpose of the Uniform
Commercial Code (UCC)?
A. To facilitate uniform state laws regarding different business
transactions
B. To promote international trade
C. To standardize corporate governance
D. To regulate employment contracts
Correct Answer: A
Rationale: The UCC aims to create consistency in business
transactions across states, simplifying the legal framework for
commerce.
2. Under Article 2 of the UCC, which of the following is an
essential element of a contract for the sale of goods?
A. Offer and acceptance
B. Mention of specific goods
C. Consideration
D. All of the above
Correct Answer: D
Rationale: Article 2 of the UCC outlines that all the elements
listed are necessary for a valid sale of goods contract.
© 2024/2025
, 3. In corporate law, which doctrine allows shareholders to hold
corporate managers liable for unbusinesslike conduct?
A. Business Judgment Rule
B. Piercing the Corporate Veil
C. Fiduciary Duty
D. Ultra Vires
Correct Answer: C
Rationale: Shareholders can hold managers accountable for
failing to act in the company’s best interests, which involves
fiduciary duties.
4. Which type of intellectual property protection is used for
inventions?
A. Copyrights
B. Trademarks
C. Patents
D. Trade Secrets
Correct Answer: C
Rationale: Patents provide legal protection for inventions,
granting the holder exclusive rights to use, sell, or distribute the
innovation.
© 2024/2025
