Practice Quiz

DSST Business Law II Exam Prep - Question List

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21. Which of the following are examples of an authorization that can create an agency relationship?
I. A Power of Attorney
II. A written agency contract
III. An oral authorization by the principal
  1. I, II, and III.
  2. I and II only.
  3. I only.
  4. I and II only.
  5. Neither I, II, or III.
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22. Which of the following is a proper purpose for a shareholder to inspect corporate records?
  1. To communicate with other shareholders concerning a tender offer.
  2. To get the shareholder list to use in a personal marketing effort.
  3. To find out personal details of other shareholders.
  4. To communicate with other shareholders concerning unrelated investment opportunities.
  5. To learn the trade secrets of the corporation.
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23. What two conditions must be present for a contract that is entered into with a person who is mentally ill to be voidable?
  1. The person with the mental illness must be committed to a mental health facility and must be unable to act in a reasonable manner.
  2. The person with the mental illness must be unable to act in a reasonable manner and a physician must have certified that the person is unable to act in a reasonable manner.
  3. The person with the mental illness must be under the care of a mental health professional and the other party must have intended to take advantage of the mentally ill person.
  4. The other party to the contract must have known that the person was mentally ill and intended to take advantage of the mentally ill person.
  5. The person with the mental illness must be unable to act in a reasonable manner and the other party must have reason to know of the mentally ill person's condition.
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24. A usage of trade is:
  1. Any practice of dealing that is used so regularly in a region or industry as to justify an expectation that it will be followed in the contract at issue.
  2. Normal business conduct between parties to a business transaction.
  3. A formula, device, pattern, or compilation of information that is used in business but is not known to the public.
  4. Contract terms that are always used in any type of contract within a particular industry.
  5. Contract terms that are always used in any type of contract within a particular region of the country.
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25. How does a creditor perfect his or her interest?
  1. By showing that he or she extended credit to the debtor prior to other creditors.
  2. By showing that the debtor agreed to perfect his or her interest.
  3. By contacting the bankruptcy court and letting it know that he or she is a priority creditor.
  4. By filing appropriate paperwork to record his or her security interest.
  5. All of the above.
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