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Business Law and Business Ethics Mutiply Choice Questions

1) When an accountant has conducted an audit with reckless disregard for the accuracy of the financial statements, the accountant has committed:
A) actual fraud.
B) strict liability carelessness.
C) privity of the contract.
D) constructive fraud.

2) The finder of lost property acquires:
A) rights to use the property until it must be turned over to the state.
B) rights that are good against everyone including the true owner.
C) a life estate in the found property.
D) rights that are good against everyone but the true owner.
E) no rights in the property.

3) Sean decides to purchase some property in 50/50 ownership with one of the guys at work. They plan to build a vacation home on it. Sean wants to make sure that if he dies his wife and kids will get his share of the property. Sean and his friend should own the property as:
A) tenants by the survivorship.
B) tenants in common.
C) tenants for life and death.
D) joint tenants.
E) tenants by the entirety.

4) Which of the following lists, in descending priority, of sources considered by most courts in settling questions of international law?
A) Treaties, customs, conventions, comity.
B) Treaties, customs, conventions, general principles of law.
C) Treaties, customs, general principles of law, judicial decisions and teachings.
D) Conventions, comity, customs, general principles of law.
E) Conventions, treaties, comity, customs.

5) Which of the following is not one of the types of commercial leases commonly used?
A) Triple net lease
B) Gross lease
C) Net lease
D) Double gross lease
E) Double net lease

6) Which of the following best describes the modern rule regarding divorce?
A) An individual must prove the other person was insane.
B) An individual must prove the other person was at fault for causing a major problem with continuing the marriage.
C) An individual must prove the other person abandoned him or her.
D) A mere citing of irreconcilable differences is enough to obtain a divorce.
E) An individual must prove the other person physically abused him or her.
7) The due diligence defense is applicable to actions filed under:
A) Section 10(b) of the Securities Exchange Act of 1934.
B) Section 11 of the Securities Act of 1933.
C) Both A and B.
D) Neither A and B.

8) Bobby, a 17 year-old half-blind musician, has been playing in a band for 4 years and is now starting to get contracts to play his music at local dinner clubs. He tells his mom and dad that he wants to live on his own. If Bobby is declared emancipated, what responsibilities do his parents have, if any?
A) They would still be responsible for home schooling him.
B) No responsibilities, as Bobby would be emancipated.
C) They would still be legally responsible beyond the age of majority, since he is blind.
D) They would be obligated to provide food, shelter, and clothing.

9) Which of the following is correct about the World Trade Organization (WTO)?
A) The WTO was created in the 1940s.
B) The WTO adopted a judicial-based dispute resolution system to replace the politically oriented system in place previously.
C) Only a few nations have a representative on the WTO dispute settlement body.
D) China has not been admitted to the WTO.
E) Parties to a dispute have a veto power over any decision reached by the WTO.

10) Which of the following applies to the court's approval of an adoption?
A) The court will consider the home environment of the adoptive parents.
B) The decision of the court will be based on the best interest of the parents.
C) The adoptive couple is subject to a probation period once the court approves the adoption.
D) A, B, and C.
E) A and C only.

11) Which of the following elements is the most important in determining whether personal property has become a fixture?
A) Whether the property is used in the same manner as the realty.
B) Whether the property can be removed without damaging the realty.
C) The intent of the parties.
D) Whether the property has been attached to the realty.

12) Katrina is walking through a store when she accidentally drops her wallet. Katrina does not know that she has dropped it, so she continues on. Billy finds the wallet and notifies the owner of the store. Going in order from superior to inferior rights, who has the best right to the wallet.
A) Katrina, storeowner, Billy.
B) Katrina, police, storeowner, Billy.
C) Katrina, Billy, storeowner.
D) Katrina, storeowner, police, Billy.

13) The standard form fire insurance policy that is required to be used in most states comes from which state?
A) Connecticut
B) Delaware
C) New York
D) Nebraska
E) Illinois

14) The contractual arrangement of an accountant with the client is often referred to as a(n):
A) matter.
B) undertaking.
C) engagement.
D) procedure.
E) project.

15) Under which of the following transfers by a tenant of the tenant's rights in a lease can the landlord enforce the lease directly against the transferee of the rights?
A) Sublease
B) Assignment
C) Both A and B
D) Neither A and B

Solution Preview

Please see attached file.

1) When an accountant has conducted an audit with reckless disregard for the accuracy of the financial statements, the accountant has committed:
A) actual fraud.
B) strict liability carelessness.
C) privity of the contract.
D) constructive fraud.

A statement need not be affirmative to be fraudulent. When a person has a duty to speak, silence may be treated as a false statement. This can arise if a party who has knowledge of a fact fails to disclose it to another party who is justified in assuming its nonexistence. For example, if a real estate agent fails to disclose that a home is built on a toxic waste dump, the omission may be regarded as a fraudulent statement. Even if the agent does not know of the dump, the omission may be considered fraudulent. This is constructive fraud, and it is usually inferred when a party is a fiduciary and has a duty to know of, and disclose, particular facts.

2) The finder of lost property acquires:
A) rights to use the property until it must be turned over to the state.
B) rights that are good against everyone including the true owner.
C) a life estate in the found property.
D) rights that are good against everyone but the true owner.
E) no rights in the property.

An individual who finds lost property does not acquire absolute ownership of the property. In order to obtain title to, or rights in, the lost property, the finder must intentionally take possession and control over it.
The individual who acquires possession of a lost or mislaid article has superior rights to the item over anyone except the true owner. This person is only the apparent owner. The finder's title to the property may be forfeited upon discovery of the true owner, whose title in it is unaffected by the fact that the article has been lost. A finder's title is contingent upon the potential discovery of the true owner. He or she may not, therefore, transfer title to another individual

3) Sean decides to purchase some property in 50/50 ownership with one of the guys at work. They plan to build a vacation home on it. Sean wants to make sure that if he dies his wife and kids will get his share of the property. Sean and his friend should own the property as:
A) tenants by the survivorship.
B) tenants in common.
C) tenants for ...

Solution Summary

The solution contains numerous mutiply choice questions in the areas of Business Law and Business Ethics. Items include but are not limited to, fraud, ownership, leases, divorce, WTO, adoption, and tenant contracts.

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