__________ included in the bond indenture to protect bondholders from certain actions by the company.

A) Indentures are.
B) Debentures are.
C) Covenants are.
D) Articles of incorporation are.
E) A description of dedicated capital is.

Jason's mother would like him to go to college, so in June he enrolls at the local university. He also quits his job and tells his mother his plans to take classes. His mother says, "I'm so happy that you are going to college that I want to pay for your books." Jason then sends her a bill for $485. Jason's mother's promise is:

A) enforceable, because Jason returned to college.
B) enforceable, because Jason is giving up the right to do something else.
C) unenforceable, because it is a unilateral contract.
D) unenforceable, because Jason had already enrolled in school when she made the statement that she wanted to pay for his books, and there is no consideration.

An agency relationship can be created by

A) actual authority.
B) estoppel.
C) ratification.
D) apparent authority.
E) all of the above.

The text case Patrick v. Allen discussed whether the business judgment rule exempted directors of a corporation from liability for renting land to a private golf course, of which several directors were members, at a price sufficient to cover only property taxes. Which of the following was the result?

A) That the directors could not benefit from the rule because the business judgment rule applies to officers, not directors.
B) That while the business judgment rule applies to directors, it did not apply to provide protection to the directors because they stood to benefit personally.
C) That the business judgment rule applied to shield the directors from liability because no fraud was involved in the transaction.
D) That the business judgment rule applied to shield the directors from liability because the directors received no money directly from the golf course.
E) That the business judgment rule applied to shield the directors from liability because the transaction was properly recorded on the company's books and not hidden.

In an auction ________, the seller is treated as making an offer to accept the highest bid.

A) Without controls
B) With controls
C) Without reserve
D) With reserve
E) Without qualifications

When may a court rule that parol evidence might be admissible to further the court's understanding of an agreement?

A) When a court determines that a written agreement represents a complete and final version of the agreement.
B) When a court determines that a written agreement does not represent a complete and final version of the agreement.
C) When a court determines that there is disagreement between the parties over performance of the agreement.
D) When a court determines that the plaintiff failed to do sufficient research to determine if signing the agreement was advisable.
E) When a court determines that neither party failed to obtain counsel to determine if signing the agreement was advisable.