Question

64.    Under the UCC if Anthony transfers the right to possession and use of goods for a term in return for consideration to Betty this would be a

a. transfer

b. lease

c. gift

d. sale

e. nothing, this would not be covered by the UCC

65.    A ________ is a corporation in which the shares are held by one shareholder or a small group of shareholders and the stock is not actively traded.

a. close corporation

b. small corporation

c. limited corporation

d. shared corporation

e. nonprofit corporation

66.    Unless otherwise stated by contract, all of the following are presumes to be true about partnerships except

a. each partner has an equal voice in partnership management.

b. a majority vote controls ordinary business decisions.

c. only managing partners are fully responsible for debts of the partnership.

d. regardless of the amount invested in the partnership, each partner has an equal vote.

e. all of the above are true.

67.    The ______________ prohibits the introduction of oral evidence into a lawsuit where the evidence presented is contrary to the terms of a written contract.

a. parol evidence rule

b. real evidence rule

c. oral evidence rule

d. phone evidence rule

e. verbal evidence rule

69.    Chapter 11 bankruptcy

a. forces the business to sell of all of its assets.

b. wipes the slate clean for the business and allow it to continue operating.

c. allows the business to keep operating and reorganize its activities and its debts.

d. prohibits the business from starting any new operations, and it must wind up all old business.

e. none of the above. Chapter 11 applies to individuals

70.    Suppose for the purpose of this question you are on the BSC Basketball team. Suppose further that you make a really long 3 point shot. How many points do you get?

a.   1

b.   2

c.   3

d.   4

e.   What is basketball?

Answer 1

64) b) lease

Because the Code defines lease as "transfers the right to possession and use of goods for a term in return for consideration". As Anthony transfers the right to possession and use of goods for a term in return for consideration to Betty, this would be lease.

65) a) close corporation

Because closed corporations are not publicly traded on any stock exchanges. So, Shares are held by one shareholder or small groups of sharehoders.

66) c) Only managing partners are fully responsible for debts of the partnership

Unless any contrary stated in the contract, all partners are fully responsible for debts of the partnership.

67) a) Parol Evidence Rule

Because Parol Evidence is the rule of evidence that prohibits the introduction of oral evidence into a lawsuit where the evidence presented is contrary to the terms of a written contract.