QUIZ QUESTIONS
PARTNERSHIPS
1. May a party do business under a name other than his own?
2. If a party uses a trade name does this constitute a partnership?
3. Define partnership, and give an example of an agreement constituting a partnership.
4. How many persons may engage in a single partnership enterprise?
5. Give the principal features of the partnership relation.
6. How is a partnership created?
7. May partnerships be created by oral agreement? If so, give an example of an oral partnership agreement.
8. Must any kind of partnership agreement be in writing? If so, give an example.
9. What is meant by partnership by estoppel?
10. Give an example of an executory partnership agreement.
11. What classes of persons may legally become partners?
12. May an infant become a partner?
13. A, aged twenty-two years, enters into a partnership with B, aged seventeen. May A avoid a contract of the partnership made with C, a third person, on account of the infancy of B?
14. Give an example of an infant ratifying a partnership agreement.
15. Can drunken or insane persons enter into partnerships?
16. What names are partners entitled to take as partnership names?
17. Can a partnership take the name of another partnership? If not, why not?
18. Can a partnership take a name which does not suggest the name of any of the partners interested?
19. Can a partnership ever have more than one name? If so, under what circumstances?
20. Give, and define the names applied to different kinds of partners.
21. Distinguish silent partners and secret partners.
22. May a partnership exist as between the partners, and not exist as to third persons trading with the partnership?
23. May a partnership exist as to third persons dealing with an apparent partnership, while none exists between the apparent partners themselves? If so, give an example.
24. State what constitutes a partnership as to third persons dealing with a partnership.
25. What are the powers of a partnership?
26. Of what may the property of a partnership consist?
27. May a partnership make and own promissory notes?
28. What constitutes holding a person out as a partner?
29. What is the liability of a person held out as a partner?
30. Can a person be liable as a partner who is held out as a partner without his knowledge or consent?
31. What are the duties of partners to each other?
32. Can one partner sue his partner at law?
33. If one partner dishonestly takes possession of partnership assets, how may his partner get legal relief?
34. What is meant by joint liability of partners?
35. What is meant by liability in solido?
36. What is partnership liability to third persons?
37. Is the individual property of members of the partnership liable to be subjected to the payment of partnership claims?
38. When, if at all, can the property of individual partners be subjected to the payment of judgments against the partnership before the property of the partnership has been exhausted?
39. What is the individual liability of the members of a partnership for the partnership debts?
40. What effect, if any, does change of membership have upon a partnership?
41. Does the addition of a new member dissolve a partnership?
42. Does withdrawal of a member discharge a partnership?
43. What effect, if any, does death of a partner have upon a partnership?
44. Define survivorship.
45. What are the rights and duties of survivors of a partnership?
46. In what ways may a partnership be dissolved?
47. In what cases must notice of dissolution of partnership be given?
48. How, and to whom must notice of dissolution of partnership be given?
49. Upon dissolution of a partnership what part of the firm assets belongs to firm creditors, and what part of individual assets belongs to individual creditors?
50. In case a partnership is insolvent, and there is no living solvent partner, what rights have firm creditors in the assets of the individual partners as compared with individual creditors?
51. Define and describe limited partnership.
52. What is the principal distinction between limited and general partnership?
53. Define special partner as used in connection with limited partnerships.
OFFICE BUILDING OF THE CHICAGO EDISON COMPANY, CHICAGO. ILL.
Shepley, Rutan & Coolidge, Architects, Chicago. Two Lower Stories of Pink Milford Granite, Polished; Upper Stories of the Same Granite, with Ten-Cut Surface. Built in 1899, Note the Decorative Feature of the Lighting in Lower and Upper Portion of Building.
CORPORATIONS
1. Define corporation.
2. May an association of persons create a corporation by agreement?
3. Is a corporation a natural person?
4. How were corporations originally created?
5. How are corporations created at the present time?
6. Distinguish the creation of a corporation and the creation of a partnership.
7. For what purpose may a corporation be created?
8. What is the franchise of a corporation?
9. Is a partnership distinct from the members composing it?
10. Is a corporation dissolved by a change of membership?
11. When does a partnership cease to exist?
12. Are the members of a corporation agents of the corporation?
13. Who are the authorized agents of a partnership?
14. What are the powers of a corporation?
15. Enumerate the ordinary powers of a corporation.
16. Is the charter of a corporation a contract?
17. May a charter of a corporation be revoked at the will of the legislature that granted it?
18. How are corporations created?
19. What is meant by a corporation's charter?
20. What kinds of corporations, if any, may be organized under United States laws?
21. By what authority are national banks organized?
22. Under what provisions are most corporations organized?
23. Under what conditions may corporate charters be revoked?
24. State briefly the necessary steps in organizing a corporation.
25. Must a corporation have a corporate name?
26. May a corporation change its name?
27. May two corporations use the same name?
28. May a corporation appropriate a name descriptive of an article manufactured?
29. Give an example of a name a corporation is not permitted to appropriate.
30. Classify corporations.
31. Define and distinguish private corporations and public corporations.
32. Give an example of a public corporation; a private corporation.
33. Is a street railway company a private or public corporation?
34. When does a corporation's existence commence?
35. What determines when a corporation's existence commences?
36. Define estoppel.
37. Give an example of a corporation estoppel from denying its corporate existence.
38. Are third persons ever estopped from denying a corporation's legal existence? If so, give an example.
39. Is a corporation's charter a contract?
40. If a corporation's charter is a contract, who are the contracting parties?
41. At the present time can a corporation obtain an irrevocable charter?
42. Define de facto corporation.
43. Define de jure corporation.
44. Can a de facto corporation avoid its liabilities on the ground of incomplete organization?
45. Who can object to a de facto corporation being incompletely organized?
46. What is necessary to create a de facto corporation?
47. Define promoter.
48. Is a promoter personally liable for the obligations made by himself in connection with organizing a corporation?
49. Is a corporation responsible for the obligations created by its promoter?
50. How, if at all, may a corporation adopt the obligations of its promoters?
51. May a corporation be reorganized by consent of its members?
52. Is a reorganized corporation a new corporation, or a continuation of the old corporation?
53. Is a reorganized corporation ever liable for the obligations of the old corporation?
54. May a reorganized corporation ever escape the obligations of the old corporation?
55. How, if at all, may corporations consolidate?
56. Is a consolidated corporation distinct from the corporation from which it is formed?
57. May corporations consolidate by consent of the members of each?
58. Is a consolidated corporation liable for the debts of its component corporations?
59. What is the governing board of a corporation for profit called?
60. How are directors elected?
61. How, and under what circumstances and conditions may corporate meetings be held?
62. Who are entitled to vote at corporate meetings?
63. May a member of a corporation ever have more than one vote?
64. What is meant by cumulative voting?
65. What is meant by ticket voting?
66. Define quorum.
67. What constitutes a quorum?
68. Must a member of a corporation be present to have his shares of stock voted?
69. How, if at all, may a shareholder vote by proxy?
70. Who are members of a corporation?
71. Is a stockholder personally liable for the debts of the corporation?
72. What is the liability of a shareholder in a national bank?
73. What is meant by stockholder's double liability?
74. How may a person become a stockholder in a corporation?
75. What is a certificate of stock?
76. May a person become a stockholder without having a certificate of stock?
77. May a person hold a certificate of stock and not be a stockholder?
78. Must directors of a corporation be stockholders?
79. How, if at all, is the authority of the board of directors limited?
80. What are the principal duties of directors?
81. May a board of directors dispose of the entire assets of the corporation?
82. May directors act for their own private interests in dealing with the corporation?
83. May a director ever contract with the corporation?
84. Define by-laws, rules, and regulations.
85. Distinguish by-laws and resolutions.
86. Define capitalization.
87. Distinguish capitalization from assets of a corporation.
88. Define capital stock.
89. May a corporation sell its shares for less than par?
90. Distinguish par value and face value of stock.
91. If a corporation sells a shareholder stock at 5% of its par value, and the corporation is solvent, who, if any one, may object?
92. Must shares be paid for in money?
93. If a person purchases shares from a stockholder at less than par, not knowing that the shares have not been paid for in full, is he liable to the corporation for the balance of their par value?
94. Define call and assessment.
95. May an assessment be made before a call?
96. May an assessment be made on stock paid for at par?
97. Define and give an example of watered stock.
98. Upon what authority may the capital stock of a corporation be increased or decreased?
99. What is a stock dividend?
100. How many kinds of stock are there?
101. Define preferred stock, and distinguish it from common stock.
102. Do preferred stockholders have any advantage over common stockholders when the affairs of the corporation are wound up, and its assets distributed?
103. How may dividends be paid?
104. May a stockholder force the corporation to pay a dividend?
105. When, if at all, are dividends debts of the corporation?
106. Are certificates of stock negotiable instruments?
107. Distinguish certificates of stock from regular negotiable instruments.
108. How are transfers of stock made by the corporation?
109. What, if any, is the individual liability of a stockholder for the debts of the company?
110. What ownership, if any, does a stockholder have in the property of the corporation?
111. Can a corporation transact business without the aid of officers and agents?
112. How are the officers of a corporation appointed?
113. What are the usual officers of a corporation?
114. What are the duties of the president of a corporation?
115. May the officers of a corporation ever act without the express authority of the board of directors?
116. What is the proper corporate signature to a contract?
117. What is the proper corporate signature to a negotiable instrument?
118. Can a corporation legally sign a contract without using its seal?
119. Define ultra vires.
120. Give an example of an ultra vires act.
121. Are third persons deemed to have notice of the powers and limitations of a corporation.
122. Does a corporation have any rights outside the state of its creator?
123. What kind of corporations, if any, are authorized by the United States Constitution to transact business in any state?
124. What are the general provisions of the states regulating foreign corporations?
125. Explain the meaning of the term doing business as applied to foreign corporations.
126. Is a corporation liable for its torts and crimes.
127. How, if at all, can a corporation be punished?
128. What is meant by dissolution of a corporation?
129. How can a corporation be dissolved?
130. Can a corporation be dissolved by consent of its members?
NEGOTIABLE INSTRUMENTS
1. Name some of the most common forms of negotiable instruments.
2. What is a negotiable instrument?
3. What advantages do negotiable instruments have over money for commercial uses?
4. Define negotiability.
5. Are all promissory notes negotiable instruments?
6. What words are necessary to make an instrument negotiable?
7. May an instrument be negotiable without containing the words or order, or or bearer?
8. What kind of negotiable instrument, if any, can be transferred without indorsement?
9. Define assignment.
10. Can negotiable instruments be assigned?
11. Distinguish assignability from negotiability.
12. What is meant by the law merchant?
13. How do we happen to recognize the rules of the law merchant?
14. When was the law merchant first recognized in England?
15. To what classes of negotiable instruments were the rules of the law merchant originally applied?
16. To what classes of negotiable instruments are the rules of the law merchant now applied?
17. Define promissory note.
18. Name the parties to a promissory note.
19. Give the essential features of a promissory note.
20. Must a promissory note be dated?
21. Distinguish drafts and bills of exchange.
22. Give the names of the parties to a bill of exchange.
23. How is a bill of exchange accepted?
24. What is a check?
25. How does a check differ from a bill of exchange?
26. Are days of grace allowed in the payment of checks?
27. What is certification of a check?
28. What effect does certification of a check by the payee have upon the maker?
29. Are bonds negotiable instruments?
30. What are registered bonds?
31. What are coupon bonds?
32. What are trust deeds?
33. What are collateral notes?
34. Are collateral notes negotiable?
35. By whom are collateral notes commonly used?
36. What is a cognovit note?
37. How does a cognovit note differ from an ordinary note?
38. Define certificate of deposit.
39. How does a certificate of deposit differ from a check?
40. Is a bank liable upon its certificates of deposit?
41. Give the requisites of a negotiable instrument.
42. Does every negotiable instrument require a payee?
43. May a negotiable instrument be signed by mark?
44. Is an "I. O. U." a negotiable instrument?
45. Name the necessary parties to a negotiable instrument.
46. How does a second indorser differ from a first indorser?
47. What is the liability of a drawer of a bill of exchange?
48. Distinguish foreign bills of exchange and inland bills of exchange.
49. What kinds of bills of exchange must be protested?
50. Distinguish between drawee and acceptor.
51. What is the liability of an acceptor?
52. How may a bill of exchange be accepted?
53. What is a qualified acceptance?
54. In case of a qualified acceptance, if the acceptor fails to pay the draft at maturity is the drawer liable?
55. What is the liability of a maker of a promissory note?
56. If a note is made payable at a bank, and is not presented at the bank at maturity, is the maker discharged?
57. Define indorsement.
58. Define blank indorsement.
59. What is the difference as to transferability between a note payable to bearer and one indorsed in blank?
60. Define allonge.
61. Define indorsement in full.
62. Distinguish between the liability of one who indorses in blank and one who indorses in full.
63. If a note indorsed in blank, is subsequently indorsed in full, can it be transferred by delivery without the indorsement of the indorsee in full?
64. Define and explain indorsement without recourse.
65. What is the liability, if any, of an indorser in full?
66. Does an indorsement for collection destroy the negotiability of a note?
67. What is the purpose of an indorsement for collection?
68. Give an example of an anomalous indorser.
69. What is the difference between an anomalous indorser and an indorser outside the chain of title.
70. In most jurisdictions what is the liability of an anomalous indorser?
71. In general, what is the liability of an indorser?
72. Define indorser.
73. What are the warranties of an indorser?
74. Are the warranties of an indorser express or implied?
75. Define forgery.
76. Does forgery render a negotiable instrument void or voidable?
77. Distinguish between forgery and material alteration.
78. If a note is materially altered by a stranger is it void?
79. Define fraud.
80. Distinguish fraud and duress.
81. Are fraud and duress good defenses as against a bonâ fide holder.
82. If a forged note is lost or stolen can it be collected?
83. If a note procured through fraud is lost or stolen can it be collected by an innocent holder?
84. Define real defense to a negotiable instrument.
85. What is meant by personal defense?
86. Enumerate the real defenses to a negotiable instrument.
87. Enumerate the personal defenses to a negotiable instrument.
88. Define consideration.
89. Must consideration be stated in a negotiable instrument?
90. What kind of drafts must be presented for acceptance?
91. How are drafts presented for acceptance?
92. What must a holder do if a draft is dishonored?
93. Define protest.
94. When must negotiable instruments be paid?
95. What are days of grace?
96. Do most jurisdictions recognize days of grace at the present time?
97. Define innocent purchaser for value without notice.
98. Define bonâ fide holder.
99. Define holder in due course.
100. Distinguish bonâ fide holder and assignee of a negotiable instrument.
101. Can a person be a bonâ fide holder of a note who purchases it after it is due?
102. For what purpose must a negotiable instrument be presented for payment?
103. Can indorsers of a negotiable instrument be held if the note is not presented for payment?
104. How is a negotiable instrument presented for payment?
105. Explain notice of dishonor.
106. What is the necessity of giving notice of dishonor?
107. How is notice of dishonor given?
108. What is a certificate of protest?
OFFICE OF PRESIDENT, AMERICAN SCHOOL OF CORRESPONDENCE, CHICAGO, ILL.