58 Ricky, while in a state of extreme intoxication, offers to sell his Rolex watch for a fair price to Andy, who knows of Ricky’s intoxication. Andy accepts the offer. Ricky may avoid the contract when he becomes sober because Ricky lacks of_______ when he makes the offer.
(A)capability
(B)capacity
(C)awareness
(D)ability

56 Lee posts a sign on the window of his coffee shop stating that Jimmy is a member of the gangsters, which is untrue. Lee is liable to Jimmy for______ . (A)assult (B)disgrace (C)discredit (D)defamation

57 Ken operates a fireworks factory in a highly populated city. Without any negligence, the factory explodes and damages Emma’s apartment nearby. Since Ken is engaging in abnormally dangerous activity, Ken is _______ liable for Emma’s loss. (A)strictly (B)strict (C)no-fault (D)absolute

59 Blanche sells wine to Cora in barrels. Cora discovers that some of the barrels are leaky, in breach of warranty, but does not transfer the wine to good barrels that she has. Cora’s damages for breach of contract do not include the loss of the wine that could have been saved by transferring the wine to the available barrels, because Cora fails to make efforts to_______ damages. (A)mitigate (B)deteriorate (C)alleviate (D)aggravate

60 “The information contained in this report has been obtained from sources which we consider to be reliable. However, we do not guarantee its accuracy and, as such, the information may be incomplete or condensed. …” This type of clause is usually referred to as________ . (A)waiver clause (B)pardon clause (C)excuse clause (D)disclaimer clause

61 Which of the following is not the duty of a liquidator when a company is in the liquidation process? (A)To promote the business of the company. (B)To collect all outstanding debts and to pay off all claims. (C)To allocate surplus or loss. (D)To allocate the residual assets.

62 “A corporation offering and selling its securities to the public has to file a registration statement with the competent authority. The registration statement automatically becomes effective 20 days after it is filed with the competent authority, at which point the issuer is free to sell the registered securities to the public. However, the competent authority has certain powers to delay or suspend the effectiveness of the registration statement if it appears that the statement is on its face incomplete or inaccurate in any material respect.” Based on the above description, which of the following is not a part of the securities registration process? (A)Discuss the terms of the offering with the competent authority. (B)Prepare the registration statement by the issuer. (C)File the registration statement with the competent authority. (D)Wait for a certain period of time before the registration statement becomes effective.

63 During the public offering, issuing, private placement, or trading of securities, there shall be no misrepresentations, frauds, or any other acts which are sufficient to mislead other persons. The word “misrepresentation” can be worst explained by the term of______ . (A)concealment (B)false assertion (C)accurate statement (D)non-disclosure

64 According to Taiwan Corporation Law, which of the following matters in a company limited by shares does not need to be stipulated in the Articles of Incorporation to take effect? (A)The number of shares to be issued upon incorporation of the company, if the total authorized numbers of shares are to be issued in installments. (B)The kind of special shares and the rights and obligations covered by such shares. (C)The annual business plan. (D)The cause(s) for dissolution of the company.

65 Defendant was not convicted of _______to commit a crime when the person with whom he conspired feigned agreement and at no time intended to go through with the plan. (A)conspiracy (B)constancy (C)consistency (D)contingency

66 Lori suffers a loss of property covered by an insurance policy issued by Crafty Corp., and submits to Crafty Corp. the notice and proof of loss. The notice and proof fail to comply with requirements of the policy as to form and detail. Crafty Corp. does not point out the defects, but remains silent and evasive, telling Lori broadly to perfect her claim. The defects do not bar recovery on the policy because every contract imposes upon each party a duty of______ in its performance and enforcement. (A)honesty and honor (B)honesty and credibility (C)good virtue (D)good faith

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