Type
Quiz
Book Title
Business Law with UCC Applications 14th Edition
ISBN 13
978-0077733735

BUS LAW 29298

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.

Subscribe Now

Sign up to view full document

View Document