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Before the hammer falls, a bidder __________________.
A.may retract the bid at any time.
B.may never retract the bid.
C.does not have a valid offer.
D.may retract the bid only within five seconds of the bid.
People who establish a trust while they are still alive are known as:
A.administrators.
B.executors.
C.settlors.
D.trustees.
The unintentional misstatement or nondisclosure of a material fact that results in
inducing another to enter into an agreement to his or her loss is known as:
A.fraud.
B.duress.
C.mistake.
D.misrepresentation.
The Uniform Commercial Code (UCC) does not cover contracts for:
A.investment securities.
B.leases.
C.sales.
D.services.
A director has a legal and ethical obligation to act diligently and prudently in
conducting the affairs of the corporation. This is called the:
A.mandatory duty.
B.psychological duty.
C.legal responsibility.
D.duty of loyalty
Certain contracts, such as those involving the sale of personal property for $500 or
more,:
A.must be orally accepted to be enforceable.
B.must be written to be enforceable.
C.need not be signed to be enforceable.
D.must be divisible in nature.
Describe the purpose of the Food and Drug Administration (FDA).
A possession interest that is for a specific periodweeks, months, or yearsand
automatically terminates on the expiration date is a:
A.periodic tenancy.
B.tenancy for years.
C.tenancy at will.
D.tenancy at sufferance.
Instructions hidden in software with the potential to cause significant damage to both
hardware and software is a:
A.virus.
B.addendum.
C.corruption.
D.faade.
The words, "first come, first served" in advertisements create a language of:
A.promise.
B.offer.
C.acceptance.
D.request.
Most states recognize a cause of action for particle trespass, accepting the theory that
businesses are trespassing on another persons property with their:
A.noise pollution
B.light particles.
C.pollution particles.
D.pesticides
The Patent and Trademark Office would probably grant a patent if the invention is a
device, useful, novel, and:
A.authorized.
B.obsolete.
C.nonobvious.
D.general.
Which of the following organizational forms has in place a management team whose
members share in the overall control of the business?
A.Charitable organization.
B.Sole proprietorship.
C.Religious organization.
D.Limited liability company.
When communicating an offer, the communication may be implied by:
A.custom and tradition.
B.the actions of the parties.
C.the actions of third parties in similar situations.
D.the Uniform Commercial Code.
The Americans with Disabilities Act (ADA) of 1990 protects persons who are not
currently disabled but who have a record of a:
A.mental disability.
B.physical disability.
C.covered disability.
D.hidden disability.
A bill of sale is an example of how a title may be:
A.passed.
B.eliminated.
C.amended.
D.shared.
If the third party does not know the identity of the principal, the agent can be held
personally responsible to the:
A.disclosed principal.
B.third party.
C.identified principal.
D.unidentified principal.
A contract that specifies that the employer agrees to pay, and the employee agrees to
work, for a specified period of time at a specified salary is known as a(n):
A.wagering agreement.
B.specific performance.
C.employment contract.
D.independent contract.
Under Chapter 13 examples of priority debts include all of the following EXCEPT:
A.certain tax obligations.
B.alimony and child support.
C.wages owed to employees.
D.automobile loans.
While everyone is subject to a lawsuit for negligence, suits by injured or damaged
parties charging negligence frequently target:
A.customers.
B.government.
C.manufacturers.
D.professionals.
Charitable organizations frequently raise money by asking for:
A.discounts.
B.bribes.
C.gifts.
D.pledges.
The obligation to perform acts already required is known as a:
A.pious obligation.
B.preexisting duty.
C.social obligation.
D.contractual duty.
A business owned and operated by two or more persons is a(n):
A.partnership.
B.sole proprietorship.
C.corporation.
D.subchapter S corporation.
A contract in which title and risk of loss remain with the seller and that provides for the
sale subject to the buyer's final decision is a(n):
A.endorsement of contract.
B.sale on approval.
C.contract to sell.
D.FOB contract.
Minors, insane persons, and mentally impaired persons are usually considered
incompetent and lacking in:
A.contractual capacity.
B.educational qualifications.
C.social culture.
D.ethics.
For title to fungible goods to pass, it is important that the goods are:
A.ascertained.
B.not ascertained.
C.perishable.
D.not perishable.
The __________ Amendment restricts both the severity and the types of punishments
that may be imposed by federal and state governments.
A.First
B.Fourth
C.Eighth
D.Sixteenth
A sales contract for goods of special design, construction, or manufacture is a contract
for:
A.specialty goods.
B.labor and materials.
C.design.
D.manufacturing.
An agreement in which performance by one party depends upon the occurrence of an
uncertain event in the hope of gaining something of value is termed:
A.a speculative agreement.
B.a gambling agreement.
C.an uncertain agreement.
D.an agreement of chance.
The taking of property in the possession of another person against that person's will is:
A.arson
B.robbery.
C.plundering.
D.plotting.
A _________ can be liable for failing to inform a patient of the risks involved in a
particular surgery.
A.pharmacist
B.chemist
C.physician
D.nurse
A transfer of the tenant's interest for a part of the premises or for a part of the term of
the lease is known as a(n):
A.abandonment.
B.constructive bailment.
C.power of attorney.
D.sublease.
If a contract calls for the delivery of specific goods, the contract will be satisfied with
the tender of:
A.those particular goods.
B.substitute goods of the same value.
C.alternate goods of less value.
D.substitute goods of greater value.
