BUS LAW 29298

Type

Quiz

Book Title

Business Law with UCC Applications 14th Edition

ISBN 13

978-0077733735

March 1, 2019

When an assignment occurs, the assignee assumes the contractual obligations

previously held by the assignor.

An e-check is sometimes called an electronic check transfer.

Cumulative voting favors majority shareholders.

A surviving spouse is legally bound to accept the amount provided in the will even if he

does not like the provisions of the deceased spouse's will.

Nondisclosure agreements are usually needed to protect trade secrets.

The principle of the separation of powers divides power between the state and federal

government.

Decreasing term insurance reduces the premium over time.

Joe believes that there are absolute standards of right and wrong. Joe's belief is an

example of market value ethics.

A seller cannot sue a buyer of goods for breach of contract if the seller is able to resell

the goods.

The foreman of Small Co. can require a search warrant if OSHA inspectors want to

enter Small's factory for a random inspection.

An LLC operating agreement is required by law in all states.

A sublease will be held to be valid if the landlord accepts rent over a period of time

from a subtenant.

Computer programs are expressly excluded from the Copyright Act of 1980.

Promising to pay when goods are delivered is an example of a condition subsequent.

Melinda digs a hole next to Susan's building and Susan's building foundation cracks.

Generally, Melinda would not be liable for damages.

Cindy and Isa own property as joint tenants. If Cindy dies, Isa acquires ownership of

Cindy's interest in the property.

Since Janine has management powers in a partnership, she is considered a managing

partner in that firm.

Ever since industrial capitalism became the primary economic engine of the West,

courts no longer looked to see if the things exchanged in a contract were of equal value.

NIOs with entity status are completely dependent upon the nation states that make up

their membership.

A successful plaintiff in a product liability suit always recovers punitive damages.

The ethic of ____________ must be practiced by individuals because individuals can

never foresee the result of their actions.

A. responsibility

B. relativism

C. ultimate ends

D. ultimate needs

____________ is an ADR process by which an agency invites the people and the

organizations that would be affected by a new rule to have input into the writing of that

rule.

A. Med-arb

B. Negotiated rulemaking

C. A private civil trial

D. Mediation

____________ occurs when one party does not say something about certain facts that

he is under an obligation to reveal.

A. Passive fraud

B. Fraud inducement

C. Fraud in inception

D. Active Fraud

____________ occurs when a plaintiff searches for a(n) ____________ with law that is

favorable to its case, and then files the case.

A. Forum shopping; affirmative action jurisdiction

B. Demurrer; jurisdiction

C. Forum shopping; class action lawsuit

D. Forum shopping; jurisdiction

Geoffrey is an agent of Smith's Meat Products Limited. While delivering products, the

company's van breaks down. What legal theory, if any, would allow Geoffrey to

contract a garage for the repair of the principal's van?

A. Express authority

B. Actual authority

C. Apparent authority

D. Incidental authority

A(n) ____________ is a self-operating postponement of collection proceedings against

the debtor, which goes into effect the moment the order for relief occurs.

A. federal exemption

B. involuntary petition

C. automatic stay

D. means test

Samantha purchased a used computer system from Office Rental, Inc. who was

updating its computers. Later, Big Bank asserted the right to repossess the used

computer system from Samantha since it had a lien on all of Office Rental's business

equipment to secure an unpaid loan. Samantha was unaware of this lien. What are

Samantha's legal rights?

A. She can sue Office Rental for breach of warranty of title.

B. She can claim that she was unaware of Office Rental's debt, and hence, Big Bank

cannot assert its lien.

C. She can continue to possess the computer system, since she paid Office Rental for it.

D. She can claim a refund from Office Rental, but cannot bring a lawsuit against Office

Rental or Big Bank.

An agent's duty of loyalty means she likely cannot act for:

A. more than one principal.

B. two principals in the same transaction.

C. more than one year for the same principal.

D. an undisclosed principal.

Susan and Stanley are in a partnership called Easy Partnership. Susan purchases a truck

with her personal funds with title to the truck naming Easy Partnership. Who owns the

truck?

A. Susan

B. Susan and Stanley

C. Easy Partnership only

D. Both Susan and Easy Partnership

Darius wrote a will leaving his property in equal shares "to all my friends" which he

dated and signed. Is the will valid?

A. Yes, most likely, since the document expresses Darius' intent.

B. Probably not, since the language of the will is ambiguous.

C. Yes, since he has dated and signed it.

D. No, since there is a numerical limit to the number of legal heirs.

Avalon Co., by agreement, hires only union members in good standing. Avalon Co. has:

A. created a union shop.

B. created a closed shop.

C. formed a company-run union.

D. created an agency shop.

Greenday Bank hires an agency to collect debt from one of its credit customers, Leon.

The agency contacts Leon on his phone regarding the payment of the debt. Leon cites a

family emergency and promises to visit the bank the next week. However, the agency

sends a debt collector to Leon's house at 8 P.M. The debt collector does not find Leon at

home and inquires about his whereabouts with the neighbors, telling them that Leon is

indebted to Greenday Bank. The neighbors inform the debt collector that Leon is

visiting his ill mother in Virginia. Analyze the case with regards to consumer credit

laws.

Generally, a ____________ is established as a pre-offer strategy that remains dormant

until the right set of circumstances activates its operation.

A. greenmail arrangement

B. poison pill defense

C. public relations campaign

D. targeted shareholder agreement

Cassey is an agent of Green Motors and sells and delivers antique cars. Cassey spends

her own money to ship a car from Ohio to Florida. There is no express agreement

between Cassey and Green concerning expenses. Discuss the legal rules that apply to

this situation.

The ____________ was designed to limit the power of the President as

Commander-in-Chief of the Armed Forces to commit American troops to the field.

A. Preventative War Resolution of 1973

B. Protective War Resolution of 1973

C. War Powers Resolution of 1973

D. authorization for the Use of Military Force of 2002 Act

____________ refer(s) to a system of coordinated health care institutions for Medicare

patients developed by the Department of Health and Human Services.

A. High-deductible health plans

B. Preferred provider organizations

C. Accountable care organizations

D. Health maintenance organizations

A city ordinance allowed the police to arrest young men who were loitering in any

public place with no apparent purpose and failed to disperse when requested to do so by

the police. William was arrested under the ordinance. What is William's best legal

challenge to his arrest?

A. The ordinance has no connection to public safety.

B. The ordinance is void for vagueness.

C. The ordinance gives power to the police.

D. The ordinance contains no reference to a state of mind.

If a bank pays a check in cash to the payee, and the check is returned to the drawer with

the next bank statement, the bank's settlement is said to be:

A. provisional.

B. final.

C. in due course.

D. honored.

Under the UPA, a partner in a tenancy in partnership has all the following rights except:

A. an equal right to possess and use specific partnership property for partnership

purposes, but not for that partner's personal use.

B. rights in partnership property that are not subject to attachment for personal debts.

C. in the case of a partner's death, the right to have the deceased partner's interest in real

property held by the partnership pass to the surviving partners.

D. the right to be a co-owner of partnership property with no interest in partnership

property which can be transferred, either voluntarily or involuntarily.

Charles sold a house to Darla with Charles holding a recorded mortgage. Darla wants to

sell the house and her purchaser, Cindi, obtains a financing commitment from Small

Bank, provided Small Bank is able to hold a first mortgage on the house. How will

Small Bank obtain the first mortgage?

A. By paying off Darla's mortgage.

B. Small Bank mortgages take priority over private mortgages.

C. Charles may give oral consent that Small Bank will have priority.

D. By paying off Charles' mortgage.

____________ is the mutual agreement of less than what has been billed to the debtor.

A. Accord and satisfaction

B. Bankruptcy

C. Accord

D. Consideration

A point is a one-time charge equal to ____________ of the principal amount borrowed.

A. one-tenth

B. three percent

C. one percent

D. ten percent

Jane believes that the Big Union leaders are using union funds illegally, so she speaks

out against the leaders. Big Union expels Jane. Which of the following statements is

true?

A. Big Union may determine its own membership.

B. Big Union has engaged in an unfair labor practice.

C. Big Union has to contact the NLRB before expelling Jane.

D. Jane has to contact the NLRB before speaking out.

According to ____________, the third type of ____________ in the law exists between

____________ principles and ____________ situations.

A. Anthony Chase; duality; abstract; concrete

B. Anthony Chase; uncertainty; abstract; concrete

C. Anthony Chase; duality; abstract; uncertain

D. John Maynard Keynes; duality; abstract; concrete

An ADR contract clause:

A. must specify the ADR technique that the parties will use in the event of a dispute.

B. can merely state that the parties have the option of using an ADR technique.

C. prohibits the parties from resorting to litigation to settle an issue.

D. requires that the parties follow all ADR procedures with a summary trial.

Standard Co. has an employee pension plan under which Jessica has worked for 12

years. Jessica is laid off at age 60, and five years later she "retires" and attempts to draw

her pension benefits. However, she is informed that she is not eligible for pension

benefits because she had not been working under the Standard Co. plan at the time of

her retirement. Is this correct?

A. Yes, if that is what the Standard Co. plan specifies.

B. No, since Jessica worked longer than 10 years for Standard Co.

C. No, since Jessica's benefits are vested.

D. Yes, since Standard Co. only has a responsibility to current employees.

A(n) ____________ is an example of tangible property.

A. promissory note

B. iPhone

C. share of corporate stock

D. account receivable

____________ is analogous to forgery because it also involves the alteration or

falsification of an object or a document with intent to defraud.

A. Embezzlement

B. Criminal simulation

C. Passing bad checks

D. Defrauding creditors

Sue receives a $5,000 engagement ring from Tau, but unfortunately Tau dies before the

marriage can occur. Tau's parents, as his heirs, want the engagement ring, but Sue wants

to keep it. In most states, ____________ is/are entitled to the ring because

____________.

A. Tau's parents; the ring was a conditional gift

B. Sue; Tau (the donor) is dead

C. Tau's parents; Tau did not state that Sue was to have the ring if he were to die

D. Sue; the engagement was not broken by mutual agreement or by Sue

Probate courts and courts of claims are examples of courts with ____________

jurisdiction.

A. special

B. subject matter

C. personal

D. general

The Uniform Electronic Transactions Act (UETA):

A. is a physical alteration of network components.

B. is an establishment of the nature of an electronic agent.

C. bans electronic agents for business transactions.

D. legitimizes the use of electronic agents.

Vernon owns a family run farming business. He earned $100,000 in the current

financial year. He owes $70,000 that he cannot pay. This debt forms a part of his farm

expenses to creditors, but he wants to keep the business running. Which type

bankruptcy should Vernon file for?

A. Chapter 7 only

B. Chapter 11 and Chapter 7

C. Chapter 7 and Chapter 12

D. Chapter 12

The first bank to which an item is transferred for collection is called a(n)

____________ bank.

A. local

B. remitting

C. depositary

D. intermediary

Matrix Corporation, a computer manufacturer, agrees to purchase from Chipmaster, Inc.

all the computer chips that Chipmaster can produce during the next 12 months, at cost

plus a twelve-percent markup. Matrix later does not purchase any computer chips

during the 12 months year. Can Chipmaster enforce the agreement made with it?

A. Yes, this is an enforceable requirement contract.

B. No, the price is not sufficiently defined.

C. No, the agreement to purchase is illusory.

D. Yes, this is an enforceable output contract.

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