1. All written contracts that have a set of promises are

a. Formal

b. Valid

c. Bilateral

d. Executed

2. Under Article II of the UCC a seller may not

a. Withhold delivery

b. Seize the good back on his or her own

c. Stop delivery in transit

d. Sell the goods

3. Which of the following best describes the overall scheme of pollution regulation in the United States?

a. Exclusively federal law.

b. Exclusively state law with minimal federal oversight.

c. Exclusively state law, but with considerable federal oversight.

d. Primarily federal law, but considerable state law as well.

4. What role did personal norms play in cooper's and Watkins's decisions to report the problems they had discovered?

5. What consequences did Cooper and Watkins face for reporting the problems?

6. If you had been in Watkins's or Cooper's place, what would you have done.

7. A provision under the UCC which affects merchants differently from nonmerchants is:

a. The effect of additional terms in an acceptance.

b. The firm offer rule.

c. The written confirmation rule.

d. All of the above.

8. Which of the following is a correct statement?

a. Incorporators must sign and execute the articles of incorporation of a U.S. corporation.

b. Most states in the U.S. limit the duration of a corporation to fifty years plus a day, which time period can be renewed.

c. A tenancy at will under U.S. law is created by an express contract by which personal property is leased for a specific period of time.

d. A quitclaim deed warrants more than any other deed under U.S. real estate law.

9. Barb owns Barb's Salon, which owes back rent to Capital Properties, a landlord. Barb agrees to pay a percentage of her profit each month until the debt is paid. Capital Properties is

a. Barb's creditor and partner.

b. Barb's creditor only.

c. Barb's partner only.

d. neither Barb's creditor nor partner.

10. Alvaro and Franco are forming a corporation and preparing the articles of incorporation. What provision must be in the articles?

a. A corporate name with an indication of "corporateness," such as "Inc."

b. The names and addresses of majority or controlling shareholders.

c. Evidence of U.S. citizenship for the directors.

d. All must be in the articles.

11. How did Cooper and Watkins become aware of financial reporting problems within their companies?

12. Which of the nine alternatives listed on page 348 ( or other variations) did Cooper or Watkins take? How did the public become aware of their concerns?

13. What pressures did Cooper or Watkins face to suspend their ethical judgments or drop their concerns? Who would have benefited if Cooper or Watkins had dropped their concerns?

14. What information is reported in the article about WorldCom's or Enron's code of ethics, communication of the code, and system of reporting violations of the code?

15. Which of the following is FALSE regarding federal administrative agencies?

a. Congress typically delegates to administrative agencies the power to make laws in the form of rules and regulations.

b. Administrative agencies, such as the Occupational Health and Safety Administration, cannot conduct inspections since an inspection is a "search," which can only be conducted by the police or other law enforcement agency pursuant to a traditional criminal law search warrant.

c. Administrative agencies typically can impose civil fines after a due process hearing in which a person or business is adjudicated to be in violation of an agency rule or regulation.

d. The decisions of administrative agencies can generally be appealed to the traditional court system assuming that procedural requirements for an appeal are met.

16. "Necessaries" for minor contracts do not usually include

a. Transportation

b. Education

c. Insurance

d. Medical Care

17. What as a general rule makes a covenant-not-to-compete legal in an employment contract?

a. The covenant must be reasonable as to time/duration.

b. The covenant must be reasonable as to place/territory.

c. The employer must be able to demonstrate that the covenant was necessary to protect a legitimate business interest of the employer.

d. All of the above.