UVU LEGL 3000 Test 4 Sample Questions Essay

1180 Words Apr 17th, 2014 5 Pages
Test 4/Final Review SAMPLE TEST
Spring 2014
1.Dizzy is not Edwina's agent but enters into a contract with Frida on Edwina's behalf. Edwina approve the contract.
This is
a. an agency by agreement.
b. an agency by estoppel.
c. an agency by ratification.
d. not the creation of an agency relationship.
2.Based on Bluto's conduct, Cass believes that Dee has the authority to act on Bluto's behalf even though Dee has no actual authority to do so. Dee has
a. apparent authority.
b. equal authority.
c. express authority.
d. implied authority.
3. Geoff has a written agreement with Huck. To accomplish the objectives of this relationship, Geoff's authority can be implied
a. by contradiction.
b. by custom.
c. by lack of reason.
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This is
a. dissociation.
b. dissolution.
c. gross negligence.
d. simple misconduct.
15.High Pointe LLC's members include Irvin. For purposes of holding title to property, High Pointe is
a. an aggregate of Irvin and the other members.
b. a natural person in the members' "family."
c. a legal entity apart from the owners.
d. a non-participating third party.
39.Energy316. Energy Resources, LLC, is a limited liability company. Rather than distribute its profits to its members, Energy wants to reinvest the profits in its business. For this reason, Energy may prefer to be taxed as
a. a corporation.
b. a partnership.
c. a sole proprietorship.
d. a syndicate.

17.Web Services, LLC, is a member-managed limited liability company. If the law in Web's state is like the law in most states, unless the members have agreed otherwise, decisions are made by
a. majority vote.
b. minority vote.
c. plurality vote.
d. seniority vote.
18.Carl sells Direct Marketing Enterprises, a sole proprietorship, to Eve. This is a transfer of
a. a license.
b. a trade name.
c. the formula to make a product.
d. the ownership of the business.
19.Kelly, the owner of Llama Farms, a sole proprietorship, wants to obtain additional business capital but to maintain control. This can best be accomplished by
a. borrowing funds.
b. bringing in partners.
c. issuing stock.
d. selling the business.
20.Esteban and Florian want to form a limited liability company (LLC) to manage their

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