Legal final Flashcards
The last log, it needs to come out so that I don't have to go later
Respect enterprise employs Quinn to buy something. He buys some and sells for profit. This is a breached duty of what?
Loyalty
Agent under a written agreement that describes the rights and duties of both parties. This is what type of authority?
Express
Amber is a lighting technician who hires out on her project basis to film a television production company. In this capacity, Amber is most likely is what?
independent contractor
Jill introduces Kelley to her friend as, “my associate.” Kelley reports to act as Jill’s agent in several business transactions with those friends. If Jill is liable for Kelley’s actions, it will be under what type of doctrine?
Doctrine of Estoppel
Mona is an agent for nationwide restaurant corporation, and as an agent, she follows all of NRC’s instruction. This responsibility arises under the agent’s duty of what?
Duty of Obedience
Ellen, an agent for First Credit Corporation, enters into an unauthorized contract with Great Expectations Inc. reportedly on FC’s behalf. This contract is enforceable if ratified by?
First Credit Corporation (FC)
Ozzy is an officer of Prudent Financial Corporation. With respect to binding PFC’s contracts, Ozzy is
An agent and has the authority
Without authorization, Ralph contracts on behalf of Saari to have Teej paint the interior and exterior of Saari’s house. Saari ratifies the contract, and later, Saari tries to rescind the contract relating to the exterior. This attempt will be what?
Totally unsuccessful
Katie, an agent for Lebron, enters into a contract on Lebron’s behalf with Maj for the sell of land. Katie’s authority to enter this contract is not in writing, and under the equal dignity rule, this contract is?
Unenforceable (because not in writing)
Based on Poppy’s conduct, Odell believes Poppy has the authority to act on Nan’s behalf even though Poppy has no authority to do so. Under this circumstance, Poppy has what?
No authority
Jock hires Kim to act as an agent to purchase Lifetime Gym and Fitness Inc. Jock tells Kim to reveal that she is buying the firm on behalf of a third party and to tell Lifetime’s seller who that third party is. Jock is?
Disclosed Principle
Nora is an executive for Omega Corporation, and when acting for Omega is a business situation, Nora is?
Agent Only
Joyce works for Capa Services Corporations as an independent contractor if what?
Capa does not control Joyce’s work
Hugh is an agent for Industrial Solvents Inc. He owes that company the duty of what?
Loyalty
Tad, an agent for United Financial Corporation, executes an unauthorized contract with Variety Sales Inc. that is highly advantageous to United. Variety does not withdraw from the deal, and United ratifies the contract. The contract is?
Valid
Cody is a partner in Delta Accounting Service. Cody can inspect what?
All of Delta’s books and records
Faben and Tyler agree while talking on the phone to form a partnership. Their partnership agreement is legally binding if?
Without anything more
Danny is considering forms of business organization for her Financial Advisory Firm. Like most states, Danny’s state requires that to form a limited liability company (L.L.C.) she must file with a state agency what?
Articles of Organization
Pat and Quinn sign a five year partnership agreement to do business as Pat’s Landscaping Service. At the end of the fifth year, they decide to continue without specifying a new term. This partnership is terminable when?
At any time be either partner
Fae is a member of Garden Grove’s L.L.C. Like other member’s of limited liability companys, Fae’s liability for regarding gross obligations resembles the liability of what?
Shareholder of a corporation
Serious Gamers L.L.C. is a limited liability company. Among the members, a dispute arises that their operating agreement does not cover. No statute applies; the dispute is governed by the principles of?
partnership law
Bernie wants to go into the business of construction contracting. Among the reasons that would probably convince Bernie to set up his business as a sole proprietorship would be?
Greater Flexibility
Crystal is a member of Laboratory C.S.I. Services L.L.C., a member-managed limited liability company. Crystal can participate in the firm’s management when?
To any extent
Jim organized and owns and operates Jim’s Planting Service. In the simplest form of business organization, this is what?
sole proprietorship
Sustainable Cafe L.L.C. is a limited liability company. Like any other L.L.C., unless Sustainable Cafe chooses otherwise, the firm will be taxed as what?
Partnership
Flip is a member of Great States Trucking L.L.C. Flip’s relationship to Great States end, but the firms continues to do business. This is what?
Dissociation
Coco is considering forms of business organization for her concession business, Coco’s Cupcakes. Most states require a limited liability company have what?
At least one member
Boe and Clansy decide to do business as marketing and promotion services. To be a partnership, this association can result from an agreement that is what?
Oral, Written, or Implied by conduct
The shares of Capital Corporation are…..
Publicly held corporation (because they are publicly traded in security’s market)
Nina is a director of Omega Inc. Under the standard of due care owed by directors of a corporation, Nina’s decisions must be what?
informed and reasonable
Freida and Gregor want to market a new line of fishing gear. To avoid income taxes at the corporate level, they should form what?
S corporation
Convenience Mart Inc. is a closely held corporation. Convenience Mart is what?
Generally allowed to restrict the transfer of its stock
Raafi, a director of Super Service Station Corporation, does not attend a board meeting for three years. During that time, Twyla, Super’s President, makes improper loans that cost the company $100,000. Raafi is most likely what?
Liable for negligence and mismanagement
Luke is a director of Motor Parts Corporation; Luke makes decisions with respect to Motor Parts in good faith, in what he believes is the firm’s best interest, and without violating any duties owed to it. If despite these circumstances, Luke exercises poor business judgement under the poor business judgement rule, Luke is what?
Immune from liability
Denise, Urban, and Flem, occupy the positions of directors on the board at Gallery Corporation. As directors, they may not what?
Support businesses that directly compete with Gallery
Thor Power Products Corporation permits its directors to be elected by cumulative voting. This what?
Allows minority shareholders to be represented on the board
Brad is a shareholder of Concert Promotion Corporation. As the shareholder, Brad can do what?
Vote to amend the articles of the corporation or bylaws
Odell, Prince, and Quinn, are shareholders of Write Corporation. Before a shareholder’s meeting, they agree in writing to vote their shares together in a certain manner. Usually such agreements are held to be what?
valid and enforceable
Lubby is a shareholder of Matchless corporation with preemptive rights. With these rights, Lubby can do what?
Buy a prorated share of a new issue of stock before other buyers
Ida, Jersey, and Kit are directors of Liberty Convenience Stores Inc., Liberty has 9 officers and 46 shareholders. Dividends are ordered by the firms what?
Board of Directors
Natalie is a shareholder of Off road Vehicle Company. As a shareholder, Natalie does not have what?
Right to compensation
Rusty and Sylvia are shareholders of Triad Hotel Corporation. Triad’s director’s failed to declare a dividend. Rusty and Sylvia could succeed in asking a court to order the directors to meet and declare a dividend if what?
If withholding a dividend is an abuse of the director’s discretion
Startup Corporations substantially complies with all conditions precedent to a corporation. Startup has what?
De Jure Existence
The bylaws of corporations…?
Are adopted at its first organizational meeting
Inez and Jason are the shareholders and directors of Clean Custodial Corporation. Lilly and Moe are Clean’s officers. As another corporation, the responsibility for overall management of Clean rests with who?
Board of Directors
Sylvia is an officer of Triad Hotel Company. As an officer, with respect to the company, Sylvia is what?
A fiduciary
Financial Innovations Inc. issues bonds, which are also known as what?
Debt securities
Lexie and Mort act as the incorporators for New Game Corporation. After the first board of directors is chosen, subsequent directors are elected by a vote of New Game’s who?
Shareholders
