Khali’s debt to Lew is past due.

61. Khali’s debt to Lew is past due. Lew obtains a judgement against Khali to collect the debt, but Khali refuses to pay. Lew asks the court to order Khali’s employer to pay a portion of Khali’s paycheck to Lew. This is a request for

an exemption from most federal limits on creditors’ actions.

an order of garnishment.

an order that would violate most state laws.

a right of contribution.

62. Ian’s mortgage debt to Jeff is past due. Jeff brings a legal action against Ian to collect the debt. Jeff asks the court to order the sale of the mortgaged property and the payment of a portion of the proceeds to Jeff. This is a request for

a deficiency judgement.

a foreclosure.

a right of reimbursement.


63. Pola files a petition in bankruptcy. Pola’s non-dischargeable debts include

domestic-support obligations.

student loans if payment would impose undue hardship.

unpaid loans to finance home repairs.

unsecured credit-card debt.

64. Delite Candy Company hires Elton to sell Delite’s products in a certain area. Delite agrees to pay Elton a salary, plus commission, for a trial period. They also agree that Elton can sell using any methods and during any hours that seem appropriate. The key factor in whether Elton is Delite’s employee is

the amount of Elton’s salary.

the control Delite has over the details of the work.

the length of the trial period.

the title that designates Elton’s position.

65. Bob, a salesperson at a Carpets Galore store, tells Dita, a customer, “Buy your carpet here, and I’ll install it for half of what the store would charge.” Dita buys the carpet, which Bob installs for half the store’s price. Bob keeps the money. Bob has breached

no duty.

the duty of loyalty.

the duty of notification.

the duty of obedience.

66. Based on Nan’s conduct, Odel reasonably believes that Poppy has the authority to act on Nan’s behalf even though Poppy does not have the actual authority to do so. In these circumstances, Poppy has

apparent authority.

express authority.

implied authority.

no authority.

67. Clu serves in a representative capacity for Digger. Elmo is injured through Clu’s negligence. Digger may be liable to Elmo if Clu’s conduct occurred

due to a propensity Digger was not and could not have been aware of.

during normal working hours.

in the course and scope of Clu’s employment.

outside the parties’ employment relationship.

68. Picabo drives a truck as an employee for Quik Delivery, Inc. Picabo would most likely be considered acting outside the scope of her employment if she

crashed into a car at the airport while off duty.

hit a pedestrian in a parking lot during a “working” lunch.

ran over an attendant at a gas station while refueling the truck.

smashed into a store-front while intoxicated on-duty.

69. Research Statistics Corporation uses a merit system to pay its employees according to their job performance. Suki, a female, and Troy, a male, are Research employees with comparable jobs. Due to superior performance, Suki is paid more than Troy. This is

disparate-impact discrimination.

gender discrimination.

not discrimination.

reverse discrimination.

70. Rona is Stu’s administrative assistant and both work for TriCounty Labor Inc. Stu tells Rona that for sexual favors, he will give her an excellent performance review and recommend a raise. This is

harassment on the basis of sexual orientation.

hostile-environment harassment.

not harassment.

quid pro quo harassment.
71. Jim organized, and owns and operates, Jim’s Landscaping Service in the simplest form of business organization. This is

a corporation.

a limited liability company.

a partnership.

a sole proprietorship.

72. Guy and Hanna do business as G-H Associates. If G-H is a partnership, it is governed by the Uniform Partnership Act

in the absence of an express agreement.

in the absence of an implied agreement.

only in the presence of an express agreement.

under all circumstances.

73. Sabin and Tyler agree while talking on the phone to form a partnership. Their partnership agreement is legally binding

only if a third person knows of the agreement.

only if the agreement is reduced to writing.

only if the parties exchange valid consideration.

without more.

74. Tundi is a partner in WooHoo! Amusement, a new partnership. A WooHoo! debt comes due. Tundi is

not liable for the debt.

only liable for the debt up to the amount of her capital contribution.

personally liable only to the extent other partners do not want to pay.

personally liable to the full extent of the debt.

75. Rick and Sandy are limited partners in Total Profit Enterprises, a limited partnership. A limited partner has no right to

acquire an interest in the firm.

contribute property to the firm.

engage in activities independent of the firm’s business.

participate in the firm’s management.

76. QuizBooks LLC is a limited liability company. Like any other LLC, unless QuizBooks chooses otherwise, the firm will be taxed as

a corporation.

a joint venture.

a partnership.

a sole proprietorship.

77. Niki owns O.K. Oil Corporation. Niki uses O.K.’s funds to pay her personal expenses, creates Pure Fuel Corporation to engage in the same business as O.K., transfers O.K.’s assets to Pure Fuel, and petitions O.K. into bankruptcy. This most likely warrants

a bonus to Niki for financial maneuvers.

a discharge for O.K. in bankruptcy.

a piercing of O.K.’s corporate veil.

a review of Pure Fuel’s articles of incorporation.

78. Cara and Dru are officers of EZ Trucking Corporation. As corporate officers, the rights of Cara and Dru are

determined by their employment contracts.

specified in state corporations statutes.

the same as those of the directors.

the same as those of the shareholders.

79. Nina is a director of Olivia’s Olives, Inc. Under the standard of due care owed by directors of a corporation, Nina’s decisions must be

ambiguous and questionable.

arguable and defensible.

informed and reasonable.

perfect and unassailable.

80. Luke is a director of Motor Parts Corporation. Luke makes decisions with respect to Motor Parts in good faith, in what he believes is the firm’s best interest, and without violating any duties owed to it. If, despite these circumstances, Luke exercises poor business judgment, under the business judgment rule Luke is

immune from liability.

liable only to the extent that he gains as a result.

liable only to the extent that Motor Parts suffers as a result.

wholly liable.

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