BLAW 78423

Type

Quiz

Book Title

Business Law with UCC Applications 14th Edition

ISBN 13

978-0077733735

March 1, 2019

If a law enforcement officer induces a law-abiding citizen to commit a crime that he or

she would not otherwise commit, entrapment may be used as a defense.

Robin orders merchandise from Internet Enterprises. If no delivery date is promised,

Internet must ship the merchandise within ten days.

The Securities and Exchange Commission (SEC) has been charged with investigating

how to regulate financial planners, including especially those planners who perform

income tax planning services.

If Small Co. uses a unique and unrecognized accounting method, it will—most likely—

be subject to an adverse opinion.

If a group of people act as if they are a corporation when in fact and in law they are not,

they have the right to deny that the corporation exists.

The U.S. federal court system is divided into 13 circuits.

The day grandpa died, he mailed a check to Cable Services to pay his cable T.V. bill. If

Grandpa's bank knows of his death, it cannot pay this check after his death.

Kin and Mai, through their lawyer, present an abbreviated version of their case to a jury

in a single day, and obtain an advisory verdict. This is a summary jury trial.

The national science court would have exclusive jurisdiction over issues involving

scientific, engineering, medical, and technological cases.

To be negotiable, an instrument must be in writing.

Equitable remedies are those that are imposed by the courts on innocent parties to

prevent them from taking advantage of the breach by deliberately raising the amount of

damages that the other party has to pay.

Once a corporation's board of directors declares a dividend, it becomes a corporate debt

and is enforceable by law.

A criminal statute that is obscure may be struck down by the court as void for

vagueness.

Under the Chapter 12 Fishing Business Debt Adjustment Act, the reorganizational plan

of the debtor must make certain that all priority claims, such as taxes and bankruptcy

costs, are paid in full.

An anticipatory breach occurs when a party to a contract expresses or clearly implies an

intention not to perform to contract, even before being required to act.

All state statutes specify that the death of a member triggers the dissolution of an LLC.

Kayla provides consideration when she gives up her right to sue in exchange for a

settlement payment.

A sprinkling trust has a built-in spendthrift provision.

A gift causa mortis can never be taken back by the donor.

Henry sends an e-mail to Bernice regarding the sale of his truck to her for a price "to be

determined in good faith." Henry has made a valid offer.

Jose, a victim of human rights abuses, may bring a case before the International Court

of Justice.

If an insured person becomes disabled, he or she will be excused from paying premiums

if he or she has purchased a waiver of premium option.

The World Bank works exclusively with the poorest nations in the international

community.

State trial courts are known as limited jurisdiction courts.

Omar offers to sell a motorcycle to Adanne for $10,000. Adanne replies, "I will pay

$10,000 if you overhaul the engine." Adanne's reply conforms to the mirror image rule's

requirements.

If Viva, who is 38, has low income, she automatically qualifies for Medicare, a

federally funded health insurance program.

Fraud in the inducement is a personal defense.

If Allan is a witness to his wife Cindy's will, Allan may not be able to inherit under

Cindy's will unless there are other witnesses.

By signing a nondisclosure agreement, an employee can be deprived of employment in

the future in certain geographical areas.

Gratuitous bailments occur when property is transferred to another person without

either party giving or asking for payment of any kind.

Article III of the U.S. Constitution gives executive power to the President.

An arbitration hearing can be planned and executed by the parties themselves.

Traditionally, a charitable pledge was not enforceable as a contractual obligation.

In a contract with a merchant for which no delivery is required, risk of loss passes to the

buyer when the buyer picks up the goods.

The Bankruptcy Code allows debtors to keep a maximum of $21,625 in equity in the

debtor's place of residence.

The drawer of a draft that has not been accepted is obligated to pay the draft to anyone

who is entitled to enforce it.

In 2012, Alder Inc. (seller) and Dell, Inc. (buyer) signed a long-term sales contract that

provided for cashier's check payments to be made by Dell on the first of each month. In

2015, Dell began using a wire transfer payment method, and now Alder asserts that Dell

is in breach of contract. Which of the following is true?

A. Dell cannot introduce oral evidence in court since it violates the parol evidence rule.

B. Dell can introduce evidence of the payment under the exception to the parol

evidence rule.

C. Dell violated the best evidence rule, hence cannot produce evidence in court.

D. Dell can exclude parol evidence because wire transfers and cashier's checks are

identical.

____________ refer(s) to the written application to the state for permission to form a

limited liability company.

A. Novation

B. Estoppel

C. Operating agreement

D. Articles of organization

Which of the following beneficiaries has no enforceable legal rights?

A. Donee beneficiary

B. Incidental beneficiary

C. Creditor beneficiary

D. Insurance beneficiary

Stanley falls into the low-income group. Which of the following health care plans can

Stanley opt for?

A. Medicaid

B. Long-term care insurance

C. Medicare

D. Mediclaim

Willy and Brogan, aged 16, enter into a written contract in which Brogan will sell his

horse to Willy for $250. Before the sale is finalized, Brogan seeks to be released from

the contract and wants to offer in-court oral testimony concerning his age. The

admission of Brogan's testimony is most likely governed by the

______________________ rule.

A. standard construction

B. best evidence

C. equal dignities

D. parol evidence

A(n) ____________ sexual harassment occurs when a ____________ requires that his

secretary trade sexual favors for a job promotion.

A. business necessity; supervisor

B. hostile environment; CEO

C. quid pro quo; supervisor

D. affirmative action; supervisor

Matrix, Inc. is the general contractor of a large commercial building project. Matrix

subcontracted with Acme Flooring, Inc. to have flooring installed throughout the

building. When Matrix failed to make payments to Acme as agreed, Acme stopped

working. Commercial Bank, the lender for the project, orally promised Acme that

Commercial would pay whatever Matrix failed to pay Acme if Acme would resume

work. Acme finished the flooring but was still not paid. Which of the following is true

under the Statute of Frauds?

A. According to the primary objective test, Commercial Bank is not obliged to pay

Acme as the promise must be written and signed.

B. According to the primary objective test, since Commercial Bank's promise enhanced

its mortgage interest, it is liable for payment to Acme.

C. According to the main purpose test, Commercial Bank is not obliged to pay to Acme

since Matrix was not a party to its promise.

D. According to the primary objective test, since Commercial Bank's promise did not

involve the actual lending of money it is not liable to Acme.

A(n) ____________ is an examination of the financial records of an organization to

determine whether the records are a fair representation of the actual financial health of

the organization.

A. audit

B. appraisal

C. review

D. dissolution

The just war theory's criterion of ____________ states that war can be initiated only by

legitimately recognized nation-states.

A. proportionality

B. just cause

C. right intention

D. competent authority

Peter lost control of his car and drove it though his neighbor Clyde's fence. If Clyde

were to bring a claim against Peter for the damage to the fence, what type of insurance

would Peter need to cover the damage?

A. Homeowner's insurance

B. Property damage liability insurance

C. Collision insurance

D. No-fault insurance

A proposal made by Braxton to his friend Mike, indicating a willingness to enter a

contract to buy Mike's old car for $4,000, fulfills the element of ____________ in

contract law.

A. capacity

B. consideration

C. mutual assent

D. legality

Agnes, a convenience store cashier, takes $5 out of the register for every $100 she rings

up and keeps it. Agnes could be arrested for:

A. extortion.

B. embezzlement.

C. burglary.

D. robbery.

A partner's ____________ is her share of the ___________ plus any ____________,

which is any remaining funds after dissolution.

A. vested property right; profits; surplus

B. economic interest; profits and losses; surplus

C. property; surplus; losses

D. economic interest; surplus; vested property rights

To make a case based on a(n) ____________, the employee must demonstrate that the

employer or a representative of the employer promised the employee job security

despite the apparent at-will nature of the employment relationship.

A. promissory estoppel

B. implied-in-fact contract

C. quasi-contract

D. in pari delicto

The United States Supreme Court does not have original jurisdiction in which of the

following cases?

A. Cases in which an ambassador is a party

B. Cases appealed from state supreme courts

C. Cases in which public ministers and consuls are parties

D. Cases in which a state is a party

Alvin has discovered how to duplicate subway fare cards, and has made several

hundreds of them with the intention of defrauding people. Which of the following

crimes has Alvin committed?

A. Larceny by false pretenses

B. Forgery

C. Embezzlement

D. Bribery

A ____________ is defined as a coalition of individual outsiders who do not necessarily

own stock, but can be affected by corporate decision making.

A. corporate director

B. special interest group

C. stakeholder

D. shareholder

To which type of transaction does the negative option rule apply?

A. Subscription to CD or DVD clubs that sends products on a regular basis and require

the consumer to opt out of the next shipment

B. Buying used cars

C. Subscription to telephone services

D. Buying goods via telephone or Internet

A(n) ____________ occurs when the ____________.

A. attachment; secured party does not sign a security agreement

B. securitization; debtor has no ownership rights in the collateral

C. attachment; secured party transfers something of value to the debtor

D. floating lien; secured party gives possession of the collateral

____________ demonstrates that "but for" the defendant's actions, the plaintiff would

not have been injured.

A. Proximate cause

B. Actual cause

C. Legal cause

D. The foreseeability test

Which of the following is true of consequential damages?

A. They result from a breach due to special circumstances that exist with a particular

contract.

B. They are the sum of money equal to the real financial loss suffered by the injured

party.

C. They cover any expenses paid out by the innocent party to prevent further loss.

D. They are awarded as a measure of punishment for the defendant's wrongful acts.

The ____________ Act established a bill of rights for union workers.

A. Landrum-Griffin

B. Taft-Hartley

C. Clayton

D. Wagner

A contract negotiated by the employer and the labor union that covers all issues related

to employment is a(n):

A. option contract.

B. implied contract.

C. collective bargaining agreement.

D. confidentiality agreement.

Tyler has always had a "180 day full warranty" from Business Sales Company when

purchasing office equipment over the past five years. On this occasion, Tyler purchased

a big screen LED TV from Business Sales that broke thirty days after Tyler purchased

it. Business Sales asserts that it did not provide a 180 day full warranty on the TV and

has no legal liability. Which of the following is true of this situation?

A. Tyler cannot assert a warranty since Business Sales has not provided a full warranty

on the product.

B. Tyler may assert a warranty based upon past dealings with Business Sales.

C. Business Sales can escape liability by asserting that the defect was caused by the

manufacturer.

D. Tyler can bring a suit against Business Sales and claim punitive damages.

Jess buys a microwave oven with a manufacturer's full one-year written warranty. If

Jess discovers that the microwave oven does not work properly during this time, the

manufacturer is obligated to:

A. charge Jess only for the cost of the parts replaced, not for the labor involved.

B. repair the microwave at a nominal cost to Jess.

C. provide a pro-rata credit for the defective part of the microwave.

D. fix or replace the microwave for free.

The doctrine of ____________ restricts a party from denying that a promise was made

under certain conditions, even though consideration has not been exchanged to bind an

agreement.

A. enforceability

B. privity

C. Statute of Frauds

D. promissory estoppel

Personal defenses are defenses that can be used against:

A. natural persons, but not corporations.

B. a holder in due course of a negotiable instrument, but not a holder.

C. a holder, but not a holder in due course of a negotiable instrument.

D. any party with whom the holder in due course has dealt with.

If an instrument states, "Pay to the order of Karen Fuji or her assigns," it is payable to:

A. order.

B. cash.

C. bearer.

D. holder.

If Patsy finds a set of car keys on the floor of a cafeteria, most likely the keys are

____________ and Patsy ____________.

A. lost; keeps them while looking for the true owner

B. abandoned; should leave them with the cafeteria manager

C. stolen; should leave them with the cafeteria manager

D. misplaced; keeps them while looking for the true owner

Mashevida and Mei-Ling own a house as tenants in common. When Mei-Ling dies, her

share of the house:

A. passes to Mashevida.

B. passes to whomever the probate court designates.

C. passes to Mashevida's heirs.

D. escheats to the state in which the house is located.

A ____________ is designed to permit the ____________ of a plot of land to recover

____________ rights that have not been utilized by a purchaser of such rights for a long

period of time, usually longer than 20 years.

A. dormant minerals statute: lessor; mineral

B. dormant minerals statute; surface owner; mineral

C. fee simple defeasible; surface owner; mineral

D. lease agreement; lessor; minerals

Beth and Joan, both 15 years of age, enter into a written contract. In the contract, Beth

agrees to do Joan's math homework for two weeks for $50, and Joan agrees to pay Beth

at the end of the two-week period. This contract is:

A. implied-in-law.

B. void.

C. unenforceable.

D. voidable.

Requests for admissions:

A. are made to secure a statement from a party that a particular fact is true.

B. ask a party to undergo a physical or a mental examination.

C. are written questions that must be answered in writing, under oath, by the opposite

party.

D. ask a party to produce documents, records, accounts, photographs, or other tangible

evidence.

Tom enters a computer chat room attempting to contact children online with the

intention of taking illegal advantage of them. This e-crime is known as:

A. cyber-extortion.

B. cyber-spoofing.

C. cyber-stalking.

D. cyber-fraud.

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