BUS 201 FINAL EXAM QUESTIONS AND
ANSWERS WITH VERIFIED SOLUTIONS
100% CORRECT
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.
ANSWERS WITH VERIFIED SOLUTIONS
100% CORRECT
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.
