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How do the warranty provisions under the CISG compare to the provisions of the
UCC?
a. In most instances, the standards are the same.
b. In all instances, the standards are the same.
c. The CISG standards are stricter when compared to the UCC standards.
d. The standards are completely different.
Trespass to personal property requires:
a. the personal property to be connected to real property.
b. destroying the personal property..
c. the invasion of personal property regardless of whether the owner grants permission.
d. the invasion of personal property without the permission of the owner.
An oral understanding is not binding if:
a. the services performed were not to the satisfaction of the other party.
b. the amount agreed to be paid for services rendered was not a fair and reasonable
amount.
c. the parties intended to formalize their understanding with a written agreement.
d. the understanding may be terminated at will by either party.
What is a correct statement concerning burden of proof?
a. The insured has the burden of proving that the loss was a covered loss.
b. The insurer has the burden of proving that the loss was not covered.
c. Exceptions to coverage are liberally interpreted in favor of the insurer.
d. Exceptions to coverage are disregarded in life insurance matters.
When a lease covers rooms or an apartment in a building, a destruction of the leased
premises:
a. temporarily suspends the tenant's obligation to pay rent.
b. terminates the lease.
c. terminates the lease, subject to the express approval of the landlord.
d. has no effect on the tenant's obligation to pay the total amount stipulated in the lease,
since the landlord is entitled to the entire lease amount pursuant to contract law.
A person who becomes a party to an instrument to add strength to the instrument for the
benefit of another party to the instrument is called a:
a. benefactor.
b. secondary obligor.
c. collateral obligor.
d. contingent beneficiary.
Generally, it is easiest to assign:
a. credit.
b. personal services.
c. money.
d. an agreement calling for the personal satisfaction of the assignor.
A summary jury trial is:
a. binding on the parties.
b. a mock trial.
c. a full and complete hearing of all evidence pertaining to the case.
d. a shortcut to establishing judicial precedent.
An offer that is indefinite may be clarified by reference to another writing through:
a. incorporation.
b. reference.
c. annotation.
d. indexing.
A limited liability company:
a. is the same type of business entity as a "Subchapter S" corporation.
b. has no restriction on the number of owners.
c. is taxed in a manner similar to that of a corporation.
d. exposes at least one (1) of its owners to unlimited liability.
The concept of equal protection of the law:
a. applies to both state and federal governments.
b. prohibits any classification whatsoever.
c. applies only to conduct by private parties.
d. does not permit reasonable classifications.
The relationship between a corporation and its agents is governed by the:
a. statute under which the corporation was formed.
b. corporate charter.
c. corporate bylaws.
d. same rules as are applicable when the principal is a natural person.
The parties may decide that their contract is not the one they want. They may then
replace it with another contract. If they do, the original contract is discharged by
__________.
a. solution
b. elocution
c. retribution
d. substitution
To ensure that audit partners do not become entrenched, Sarbanes-Oxley requires audit
firms to change audit partners at least once every __________ years.
a. three (3)
b. five (5)
c. seven (7)
d. ten (10)
When an individual owns a share of stock in a corporation, that individual:
a. has an ownership interest in the corporation.
b. is a creditor of the corporation.
c. generally has no voting rights.
d. is in possession of a debt security.
A landowner's promise to pay a contractor a bonus to complete construction of a
building according to the terms of a pre-existing contract between the landowner and
the contractor is:
a. binding if the promise is in writing.
b. binding, since the promise is made by a non-merchant.
c. binding, since the promise is made to a merchant.
d. ordinarily not binding on the promisor.
Courts will consider the adequacy of the consideration when:
a. one party clearly has the better of the deal.
b. one party has more business experience than the other.
c. one party claims to have been defrauded.
d. one party shows a much lower price nationally-advertised on television.
The Sherman Act applies to:
a. buying activities.
b. selling activities.
c. production activities.
d. all of the above.
The __________ lending market makes loans to consumers who have bankruptcies, no
credit history, low-to-moderate incomes, or a poor credit history.
a. subprime
b. subterranean
c. suboptimal
d. optimus prime
The defendant in a defective product suit may be:
a. the seller.
b. the manufacturer.
c. the manufacturer of a component part.
d. all of the above.
The Revised Model Business Corporation Act:
a. has eliminated the need for a certificate of incorporation.
b. has made the process of obtaining a certificate of incorporation more difficult.
c. states that corporate existence begins when the secretary of state issues a certificate
of incorporation.
d. has eliminated the need for articles of incorporation.
When a drawee bank pays on a check that lacks an essential endorsement:
a. the drawer is liable.
b. the payee is liable.
c. the drawee bank is liable.
d. no one is liable.
Which of the following statements is not true of common stock?
a. It is ordinary stock that has no preferences.
b. It entitles the holder to share in corporate profits in the form of dividends.
c. It entitles the holder to participate in the distribution of capital upon dissolution.
d. It is ordinarily nonvoting.
Under the U.S. Constitution:
a. "persons" are expressly protected.
b. particular rights of "persons" are expressly protected.
c. certain rights of "persons" have been implied by the Supreme Court.
d. both b and c.
In the absence of an express or implied agreement to the contrary, the inventions of an
employee belong to:
a. the employer.
b. the employee.
c. the employer, if the time and the property of the employer is involved.
d. none of the above.
A partner may withdraw from the partnership without liability:
a. unless the withdrawal violates the partnership agreement.
b. when the partnership is not for a definite purpose.
c. when the partnership is not for a definite time.
d. all of the above.
If an issuer requests its correspondent bank where the beneficiary is located to notify
the beneficiary of the issuance of a letter of credit, the correspondent bank is called
a(n):
a. advising bank.
b. foreign bank.
c. consulting bank.
d. coissuer.
Where a testatrix executes a will and later has a child:
a. the child is prohibited by law from receiving anything from the estate.
b. many states hold that the will of the testatrix is partially revoked by operation of law
to provide a share to the after-born child.
c. a new will must be executed because the birth voids the original will.
d. the after-born child takes a share by escheat.
A contract based on a mutual mistake in judgment is:
a. voidable by the adversely affected party.
b. not voidable by the adversely affected party.
c. void ab initio.
d. none of the above.
To protect themselves against liability, franchisors often require individual franchisees
to:
a. take out fraud insurance.
b. register with the attorney general.
c. publicly disclose their own separate business identities.
d. disavow any connection with the franchisor.
An instrument may be transferred by negotiation or by assignment.
All types of patents available under U.S. law are entitled to the same quality and
duration of protection once initial filing is perfected with the Patent and Trademark
Office in Washington, D.C.
A professor knew a colleague who was quite ill. The professor applied for life insurance
on the colleague's life and named himself as beneficiary. Because of a similarity in the
names of the professor and the colleague, an error was made and the policy was issued.
The professor also sold his car to a student. When the student drove away, it was clear
that the student was an extremely reckless driver. The professor decided not to cancel
his property insurance policy that he had maintained on the vehicle that he sold to the
student. Shortly thereafter, the colleague died and the student demolished the car. The
professor applied for insurance benefits under both policies and each of the insurers
resisted payment. Decide both cases.
To begin a lawsuit, both parties must appear in person and state their claims and
defenses in court.
Incapacity cannot be raised as a defense against a holder in due course.
Some of the powers delegated to the national government still may be exercised by the
states.
Title VII does not protect members of all nationalities from employment discrimination.
Labels on packages are regulated to provide information about the contents and
warnings about the dangers involved in the use of the product.
A sole proprietor is subject to unlimited personal liability for the debts of the business.
The primary party on a draft is the drawee, assuming that the drawee has accepted the
draft.
Payment by check is a conditional payment.
When work is guaranteed by one who repairs a building, the owner, on selling the
building, may assign the guarantee to the buyer.
The rights and duties of warehousers are regulated by the UCC.
When a municipality contracts with a contractor to pave a street, homeowners on that
block are third-party beneficiaries of the contract.
An insurance company cannot refuse to pay the fire loss of the buyer of a house on the
grounds that the sales contract for the house was not binding because it was not
properly signed.
