Question

1. Sisters Sugar Cane, Candy Cane, and Peppermint Cane inherit the family corporation from their parents. Although the bylaws restrict the transfer of shares, Sugar wants to sell. This restriction is

Select one:

a.

Voidable by the Chairman of the SEC.

b.

Prohibited unless reasonable as to distance and duration.

c.

Usually found in the Bylaws of closely held corporations.

d. Void against public policy.

2. Laurel and Hardy are partners in CC Entertainment. Their partnership is

Select one:

a. A tax paying entity but not a legal entity

b. A legal entity but not a tax paying entity.

c. Both a legal and a tax paying entity.

d. Neither a legal nor a tax paying entity.

3. Michael contracts with Jill to fix the brakes on her Honda Civic. Jill leaves her car with Michael but refuses to pay when the work is done. Michael refuses to return the car to Jill until she pays for the brake work. This is

Select one:

a. An artisan's lien.

b. A mechanic's lien.

c. A violation of most states’ laws.

d. A garnishment order.

4. Guido the Repo-Man repossesses Joey’s 18-wheel truck by breaking the window to get into the truck. Joey sees and chases Guido in his ATV. Guido drives across the neighbor’s yard to get away, destroying the neighbor’s fire-pit and killing a dog. Which of the following is true?

Select one:

a.

Guido’s repossession is lawful because he did not breach the peace.

b.

Even if Joey doesn’t catch up with Guido, Guido must return the truck to him; repossessing other people’s property on behalf of creditors is not lawful.

c.

Guido’s repossession is unlawful because he breached the peace.

d.

If Joey catches up with Guido, Guido must return the truck to him.

5. Merrill teaches people to sky-dive by jumping out of an airplane with the students. During her first dive Julie freezes in terror and grabs onto Merrill’s parachute, preventing it from opening. Merrill’s parents sue the sky-dive company for wrongful death. The company's best defense is

Select one:

a. The Dram Shop Act.

b. Assumption of risk.

c. Contributory negligence.

d. The Good Samaritan Statute.

Answer 1

1. Sisters Sugar Cane, Candy Cane, and Peppermint Cane inherit the family corporation from their parents. Although the bylaws restrict the transfer of shares, Sugar wants to sell. This restriction is

c.Usually found in the Bylaws of closely held corporations.

2. Laurel and Hardy are partners in CC Entertainment. Their partnership is

d. Neither a legal nor a tax paying entity.

3 Michael contracts with Jill to fix the brakes on her Honda Civic. Jill leaves her car with Michael but refuses to pay when the work is done. Michael refuses to return the car to Jill until she pays for the brake work. This is

a. An artisan's lien.

4. Guido the Repo-Man repossesses Joey’s 18-wheel truck by breaking the window to get into the truck. Joey sees and chases Guido in his ATV. Guido drives across the neighbor’s yard to get away, destroying the neighbor’s fire-pit and killing a dog. Which of the following is true?

c. Guido’s repossession is unlawful because he breached the peace.

5. Merrill teaches people to sky-dive by jumping out of an airplane with the students. During her first dive Julie freezes in terror and grabs onto Merrill’s parachute, preventing it from opening. Merrill’s parents sue the sky-dive company for wrongful death. The company's best defense is

b. Assumption of risk.