LEG100 Quiz

Sara decided to incorporate her business under the name Gomo, Inc. Before Gomo was incorporated, Sara signed a contract in the name of Gomo, Inc. to lease a store front. Sara did not tell the other party that Gomo was not yet formed. Sara is personally liable on the lease.

When a corporation accepts legal responsibility for a contract, it is called novation.

The Truth in Lending Act regulates interest rates and the terms of loans.

Suppose Bill’s credit card is stolen and he notifies his credit card company of this fact. Which of the following is true regarding the amount of unauthorized charges made before Bill notified his credit card company?

A manager who first offers an opportunity to disinterested directors or shareholders who turn it down has the right to take advantage of the opportunity herself.

Prime Products, Inc. found out that it was going to take 3 weeks to ship the comforter Margaret ordered instead of the 7 days it had originally promised her. Prime Products must cancel Margaret’s order and notify her that it can deliver within 3 weeks if she wants to reorder.

Mabel is a single 40-year-old who has borrowed money on numerous occasions. Her payment record has been good, except she has been delinquent in paying a few bills. Which of the following is true regarding credit information gathered on Mabel?

A fundamental problem of the modern corporation is the conflict of interests between managers, shareholders, and stakeholders.

Sandy noticed an unauthorized electronic funds withdrawal on her bank statement. In order for her to not be liable for the withdrawal, she must notify her bank within _______ of the date of the bank statement.