LAW FUNDERMENTAL FINAL EXAM QUESTION NO.

1
MULTIPLE CHOICES

1. The document containing specific guarantees of individual liberty is: a The Bill of Rights. . b The Uniform Commercial Code. . c The Constitution. . d A restraining order. .

ANS: A

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2. Federal district courts: a Are appellate courts. . b Do not hear criminal cases. . c Have jurisdiction of civil suits where the amount in controversy is less than $5,000. . d Try all criminal cases involving a violation of federal law. .

ANS: D

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3. Ethical principles include: a Seriousness of consequences. . b Consensus of the majority. . c Change in ethical standards. . d All. .

ANS: D

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4. A voidable contract: a Must be in writing. . b Must be rejected by both parties.

. c Gives one party the choice to abide by it or reject it. . d Is never effective. .

ANS: C

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5. In order to have a valid contract, there must be: a An offer and an acceptance. . b A written expression of the terms. . c A reliable witness if the contract is oral. . d An understanding of the terms by one of the parties. .

ANS: A

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6. The repudiation of a contract is called: a Disaffirmance. . b Agreement. . c Offering a new contract. . d Conducting contract fully. .

ANS: A

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7. A non-party to a contract to whom the promisee owes an obligation that would be discharged to the extent that the promisor performs the promise: a Assignee . b Assignor . c Creditor beneficiary . d Donee beneficiary .

ANS: C

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8. Damages paid to the plaintiff in order to punish the defendant, not to compensate the plaintiff are called: a Punitive damages.

. b Compensatory damages. . c Liquidated damages. . d Nominal damages. .

ANS: A

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9. A persons right to sue must be exercised within the time fixed by a statute called: a Statute of limitations. . b Bankruptcy. . c Alteration of written contract. . d None of above. .

ANS: A

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10. The transfer of possession, but not the title, of personal property by one party, usually the owner, to another the party is called: a. Bailment b. Abandoned property c. Accession d. Lost property

ANS: A

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11. Goods that the seller and buyer have agreed are to be received by the buyer or have been picked out by the seller are called: a Future goods. . b Identified goods. . c Unidentified goods. . d All. .

ANS: B

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12. A sales contract that does not meet the requirements of the _______________________ is unenforceable: a The Bill of Rights.

. b Contractual parties agreement. . c The Uniform Commercial Code. . d None of above. .

ANS: C

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13. If goods may be offered for sale ___________________, then goods cannot be withdrawn after the bidding starts unless no bid is received: a With reserve. . b Without reserve. . c Both with reserve and without reserve. . d None of above. .

ANS: B

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14. The contract in which the seller completes performance of the contract when the goods are delivered to a carrier for shipment to the buyer is called: a Sales contract. . b Construction contract. . c Shipment contract. . d Loan contract. .

ANS: C

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15. The warranty against encumbrances: a Arises in the case of all sales. . b Applies to the goods only at the time they are delivered to the buyer. . c Does not arise if the buyer has constructive notice of the encumbrance. . d All. .

ANS: B

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16. A business organization in which one or more partners have their liability for the firms debts limited to the amount of their investment is called: a Ordinary partnerships. . b General partnerships. . c Limited partnerships. . d Trade and nontrading partnerships. .

ANS: C

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17. If incorporated in another country, a corporation may be referred to as a (an): a Alien corporation. . b Foreign corporation. . c Domestic corporation. . d Close corporation. .

ANS: A

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18. Declared money value of a corporations outstanding stock is called: a Capital stock. . b Common stock. . c Preferred stock. . d None of above. .

ANS: A

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19. Combining two corporations so that one survives and the other ceases to exist is called a (an): a Merger. . b Consolidation. . c Division. . d None of above. .

ANS: A

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20.When two or more persons own property such that when one owner dies, that owner's interest in the property passes to a person named in the deceaseds will or, if no will exists, to the deceaseds heirs is called ____________________. a Tenancy in common. . b Joint tenancy. . c Tenancy by the entirety. . d Community property. .

ANS: A

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21. According to Vietnamese Enterprise Law, an enterprise shall be dissolved in the following cases: a The duration of operation stated in the charter of the company expires and there is no . decision to extend. b The company does not have the minimum number of members stipulated in this Law for . a period of six consecutive months. c The business registration certificate is revoked. . d All. .

ANS: D

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22. In Vietnam, persons whose addiction to narcotics/drugs or to other stimulants leads to the squandering of their families property may be declared by courts as : a Having civil act capacity fully. . b Being restricted civil act capacity. . c Without civil act capacity. . d Loss of civil act capacity. .

ANS: B

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23. In Vietnam, business contract signed due to non-compliance with the prescribed forms will be treated as: a Voidable contract. . b Void contract. . c Enforceable contract. . d All. .

ANS: A

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24. In Vietnam, court officer is: a Plaintiff. . b Defendant. . c Clerk of court. . d Lawyer. .

ANS: C

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25. Vietnam has the following torts: a Administrative torts. . b Civil torts. . c Discipline Tort. . d All. .

ANS: D

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ESSAY 26. Present the difference on classification of torts in USA and in Vietnam. ANS: Vietnam classifies torts into four types, including criminal tort, civil tort, administrative tort and discipline tort. Meanwhile, USA divides torts into intentional tort and negligence tort.

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27. Jaycor Corporation wanted to expand its business. To obtain the funds to do so, it decided to make a public offering of $10,000,000 of additional common stock. Explain what procedures Jaycor must follow in order to properly sell the stock.

ANS: Since the value of the public stock issuance is more than $5 million, Jaycor must register this offering with the SEC. The registration statement must be signed by its principal officers and a majority of the board of directors. Jaycor must also issue a prospectus containing such information as the types of stock to be issued, the types of securities outstanding, if any, the terms of the sale, bonus and profitsharing arrangements, and options to be created in regard to the stock. Jaycor must provide each purchaser of the stock with a copy of the prospectus. PTS: 1