Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
The warranty of merchantability guarantees that the:
a. party in question is a merchant.
b. product is fit for the ordinary purposes for which it is sold.
c. product will remain fit for its normal use for the applicable statute of limitations
period.
d. product can be resold by the buyer if the buyer does not want to keep it.
Voir dire examination is used in connection with:
a. determining whether the pleadings are valid.
b. jury selection.
c. deciding whether to appeal a trial court decision.
d. none of the above.
Which of the following implied warranties is created when the buyer relies on the seller
to pick out the goods that the buyer requires to meet a stated need?
a. conformity to description
b. merchantability
c. fitness for a particular purpose
d. conformity to a sample or model
In the absence of a contrary agreement, each partner has which of the following rights?
a. the right to receive compensation for services performed for the partnership
b. the right to a share of the partnership profits
c. the right to take an equal part in transacting the business of the firm
d. both b. and c.
A personal, revocable privilege to perform an act or series of acts upon the land of
another is called a(n):
a. easement.
b. tenement.
c. license.
d. lien.
Concerning torts and crimes, choose the correct statement:
a. Every tort is a crime.
b. Every crime is a tort.
c. No crime is a tort.
d. A crime may also be a tort.
The net assets of a corporation may be referred to as:
a. debentures.
b. stock.
c. capital.
d. bonds.
Which of the following statements best represents the Fourth Amendment's protection
against unreasonable searches and seizures?
a. The Fourth Amendment's protection against unreasonable searches and seizures
applies to homes, but not to computers located in homes.
b. The Fourth Amendment's protection against unreasonable searches and seizures
applies to homes, including computers located in homes.
c. The Fourth Amendment's protection against unreasonable searches and seizures
applies to homes and offices, but not to computers located in either location.
d. The Fourth Amendment's protection against unreasonable searches and seizures
applies to homes and offices, including computers located in either location.
The degree of care required of a person is:
a. that degree of care the person exercised in the situation at hand.
b. that degree of care an extraordinary person would exercise under similar
circumstances.
c. that degree of care an ordinarily prudent person would exercise under similar
circumstances.
d. none of the above.
__________ liable on contracts with third persons.
a. Agents may intentionally make themselves
b. Agents are never able to make themselves
c. Agents are always
d. None of the above statements are true.
All of the following statements refer to an element of fraud except:
a. the defendant desired to obtain a financial benefit.
b. the defendant made a false statement.
c. the defendant knew that the statement was false or was recklessly indifferent
regarding its truth.
d. the defendant intended for the other party to rely on the false statement.
The parol evidence rule:
a. applies to complete written contracts.
b. prevents proof of fraud.
c. applies to incomplete contracts.
d. is not designed to preserve the integrity of written contracts.
Which of the following is not a product liability theory that protects buyers and allows
them to recover for injury and economic loss?
a. express warranty
b. implied warranty
c. strict tort liability
d. assumption of the risk
In a sale on approval, the buyer's approval may be shown by:
a. express words.
b. conduct.
c. lapse of time.
d. all of the above.
When a buyer demonstrates in some way that the goods conform to the contract, the
buyer has made a(n):
a. acceptance of the goods.
b. assignment of the goods.
c. substitution of the goods.
d. avoidance of the contract.
Many federal statutes concerned with the environment authorize the Environmental
Protection Agency (EPA) to adopt standards and regulations to carry out the provisions
of the statutes.
Which of the following is generally not required for the testator to have testamentary
capacity?
a. The testator knows the exact value of his or her estate.
b. The testator understands the writing to be a will.
c. The testator has a reasonable appreciation of the identity of relatives and friends.
d. The testator has a reasonable appreciation of the extent of the property that may exist
at death.
What is the maximum fine that can be imposed against a company for violation of The
Foreign Corrupt Practices Act?
a. $100,000
b. $500,000
c. $1,000,000
d. Only individuals, not companies, can be fined for violating The Foreign Corrupt
Practices Act.
In a consignment, the dealer-consignee is often referred to as a(n):
a. remainder.
b. factor.
c. quotient.
d. exponent.
In which of the following scenarios is the agent exposed to the greatest risk of liability?
a. disclosed principal and authorized contract
b. undisclosed principal and authorized contract
c. partially disclosed principal and authorized contract
d. authorized receipt of money from third person remitted to disclosed principal
A(n) __________ contract is a contract to buy all requirements of the buyer from the
seller.
a. output
b. essentials
c. necessaries
d. requirements
An involuntary petition in bankruptcy may not be commenced against:
a. a nonprofit corporation.
b. an individual.
c. a for-profit corporation.
d. any of the above.
Contractual capacity is the ability to:
a. read and write.
b. sign a written contract.
c. understand that a contract is being made and to understand its general nature.
d. understand the legal meaning of the contract being made.
A bilateral contract consists of a:
a. promise for an act.
b. promise for refraining from acting.
c. promise for a promise.
d. promise to contract.
A party to a sales contract who is afraid that the other party will not perform may seek
to gain additional confidence by demanding some form of:
a. bailment.
b. security.
c. assurance.
d. assignment.
What areas of law are covered within "Cyberlaw"?
a. tort only.
b. contract only.
c. constitutional only.
d. tort, contract, and constitutional.
Which of the following is an effective means of notice to purchasers of shares that there
are restrictions on the sale?
a. notation in the bylaws
b. resolution of the shareholders at a shareholders' meeting
c. notation on the stock certificate
d. resolution of the directors at a directors' meeting
For the purpose of lawsuits in federal courts, a Delaware corporation that is owned by
residents of Minnesota and has its principal place of business in Ohio is deemed to be a
citizen of:
a. Delaware and Minnesota.
b. Minnesota and Ohio.
c. Delaware and Ohio.
d. Delaware only.
Jones issued a check to Smith in return for Smith's promise to do work. Smith never did
the promised work, but offered to buy goods from Gomez by endorsing the check to
Gomez. Gomez had had no prior dealings with Jones or Smith, but accepted the check
in payment. Gomez:
a. cannot be a holder in due course.
b. is considered an assignee of Smith's rights.
c. is a holder through a holder in due course.
d. is a holder in due course.
RICO is a product of:
a. Congress.
b. international trade agreements.
c. state law.
d. none of the above.
What is the primary function of the National Labor Relations Board?
a. to mediate labor-management disputes
b. to decide unfair labor practice cases brought before it by the general counsel
c. to promulgate binding regulations defining unfair labor practices
d. to uphold the right of employees to bargain collectively
Delivering stock to a creditor as security for a debt owed by the shareholder:
a. transfers ownership rights.
b. gives rise to a perfected security interest.
c. makes the creditor a perfected party after filing.
d. makes the debtor a perfected party after filing.
The obligation of all parties to perform in good faith is the same because everyone is
required to be honest.
Ping was the president and chairman of the board of directors of Oh Imports, Inc. Ping
was also a major shareholder. Acting as president, Ping negotiated a series of contracts
that caused the corporation serious economic losses. In this role, Ping failed to exercise
the care of a reasonably prudent person acting in similar circumstances. When
substantial economic losses began to pile up, Ping insisted that the corporation breach a
contract with Ory in favor of a larger contract that was later entered into with
Magnificent Enterprises. Ping hoped to reverse Oh's economic fortunes through this
contract with Magnificent, but the attempt failed. Oh then became insolvent. Ultimately,
the corporation failed. Two law-suits were initiated against Ping. In the first, a creditor
of Oh who never was paid because the business failed sued Ping alleging that the
negligence of Ping had caused Oh to fail to pay the creditor what was owed. The second
lawsuit instituted by Ory claimed damages from Ping because Ping caused Oh to breach
its contract with Ory. Decide both lawsuits.
Goods physically existing and owned by a seller at the time of a transaction are called
existing goods.
The fact that the consideration supplied by one party is slight when compared with the
burden undertaken by the other party is immaterial.
A buyer may stop payment on a certified check issued to a seller if the goods are
defective when received.
An exclusion of warranties made in the manner specified by the Uniform Commercial
Code is not unconscionable.
Preferred stock is ordinarily nonvoting stock.
A consumer claiming that there has been a violation of a consumer protection statute
has the burden of proving that the statutory definition of "consumer" has been satisfied.
The parol evidence rule generally precludes testimony that would contradict a complete
written contract.
In the United States today, we generally have one law court and one equity court.
The typical U.S. copyright now runs for 28 years, with a right of renewal for an
additional 28 years.
In some states, a 'service-letter" statute requires an employer on request to furnish a
discharged employee with a letter stating the reason for the discharge.
When the contract requires that both parties submit disputes to arbitration, this is an
example of a limitation-of-remedies clause.
In older cases, the employer-employee relationship was referred to as the
master-servant relationship.
A sublease and an assignment of a lease accomplish the same results.
The Sunshine Act requires most meetings of major administrative agencies to be open
to the public.
The Constitution prohibits state governments from denying any person the equal
protection of the law.
A partnership may occur even though the parties did not label their relationship a
partnership.
