The federal Credit Consumer Protection Act gives a consumer the right to cancel a
credit transaction within three days when contract requires that the consumer pledge his
or her home as a security deposit.
Automobiles, furniture, clothing, and pets are not considered tangible goods.
A sales contract for goods of special design, construction, or manufacture is a contract
for labor and materials.
A bailment is a special kind of contract that is widely used in business and not in
personal affairs.
An implied warranty of merchantability is the assumption by law that the goods sold by
a merchant/seller are fit to be sold or resold.
Even employment contracts may be assigned if there is no relationship of trust or
confidence, or any other circumstance that would create a materially greater burden on
the party whose services are being assigned.
If a written warranty is vague and indefinite, the court may apply the custom of the
marketplace or what such a warranty usually means in similar transactions.
The law that protects minors from their contractual commitments intends to deny them
the opportunity to enter into contracts for necessaries that are not provided by their
parents or a guardian.
Producers of computer software have an incentive to treat their creations as trade
secrets because there is no set time limit on the protection available for patents,
copyrights and trademarks.
Several states have laws making it illegal to discriminate on the basis of age against
persons who are over the age of 21.
Even if an employer promises not to read the employee’s e-mail messages, courts in
some states have still ruled that the promise does not create a reasonable expectation of
privacy.
Directors and officers of corporations have been successfully sued for breach of their
duty of loyalty and duty of care, resulting from negligence, error, or omission.
Copyrights are a statutory privilege granted by a nation to inventors for a fixed period
of years to exclude all others from manufacturing, using, or selling a patented product
without permission from the inventor.
The two types of conditions found in contracts for conditional sales are conditions
precedent and conditions subsequent.
When a person dies, arrangements will first be made to pay his or her final expenses,
such as the cost of an appropriate burial, medical expenses, taxes, and legitimate debts.
The hearings conducted by an administrative agency provide for a jury.
If the life of an agreement is indefinite and there is a possibility of it being completed
within a year, the agreement need not be in writing to be enforceable.
A voluntary filing occurs when the debtor himself or herself files a bankruptcy petition.
A contract that obviously cannot be completed within one year may be oral.
The Uniform Commercial Code (UCC) specifically provides that the holder of an
instrument may convert a blank endorsement into a full endorsement.
Although there are no federal laws currently addressing e-waste, several states have
passed statutes and the EPA has drafted rules relating to the recycling of cathode ray
tubes.
An object that has not been intentionally left in the custody of someone else and then
forgotten is considered lost, not mislaid.
Frequently, offers on Web sites include a button that must be clicked by the user with
his or her mouse to indicate acceptance; however, clicking the button does not
necessarily denote that the offer has been accepted.
Competent parties can be of any age as long as they understand the terms of a contract.
A principal is not responsible to third parties for all agreements made by the agent on
behalf of the principal even if the agent acted within the scope of his or her authority.
A corporation drafts articles of incorporation that lists the liabilities of the company.
There are 50 federal circuit courts of appeal, one for each state.
Stoppage in transit is the right of an unpaid seller to stop goods in transit and order the
carrier to hold them for the seller.
The Uniform Commercial Code (UCC) provides that additional (or different) terms are
to be construed as proposals for addition to the contract, and between merchants,
become part of the contract.
Zoning regulations may act as legal restraints of trade because they restrict where and
how businesses may operate.
An incidental beneficiary is one who may benefit as a direct consequence of contract.
A person who discusses the terms of a purchase with a salesperson, pays cash for the
purchase, and takes the item with him, is making an unenforceable written contract.
Nothing distinguishes an independent contractor and an employee.
A felony is a crime punishable by death or imprisonment in a federal or state prison for
a term exceeding 9 months.
A valid contract may exist even if the consideration is a promise to perform an illegal
act, or to avoid performing an act that is legally required to be performed.
Oral evidence introduced after a contract is signed may be legally accepted if it clarifies
some point in a written agreement.
After administrators are appointed and approved, it is generally difficult to remove
them.
The party who has taken commercial paper in good faith and for value, before maturity,
and without actual or constructive notice of any defects in the instrument is a (n):
A.holder in due course.
B.endorser of the instrument.
C.payee.
D.drawer.
A landlord’s promise that the premises have no defects that would impair the health,
safety, or wellbeing of the occupants is an implied warranty of:
A.merchantability.
B.habitability.
C.safety.
D.title.
A competent party is said to have contractual capacity, that is, the ability to:
A.necessitate the contract.
B.disaffirm the contract.
C.make a valid contract.
D.impose undue influence.
If the offeror acknowledges the rejection but restates the offer, the offeree:
A.loses the opportunity to accept but retains the authority to make a counteroffer.
B.does not have any opportunity to accept, reject, or make a counteroffer.
C.still has the opportunity to accept, reject, or make a counteroffer.
D.cannot revive the offer or make a counteroffer.
The actions of corporations that are intended to demonstrate the corporate wish to
behave responsively take many forms and are conducted under the banner of:
A.corporate liability.
B.national mandate.
C.patriotic duties.
D.corporate responsibility.
Which administrative agencies oversee and administer to the manner in which health
care is delivered by its providers, and the ways in which health care services are
covered by insurers?
A. Federal, state, and local administrative agencies
B. Only federal administrative agencies
C. Only state administrative agencies
D.Only state and local administrative agencies.
When the host country mandates that at least partial ownership of the foreign company
be sold to local citizens or companies prior to the foreign company’s conducting
business within the host country’s borders, then:
A.domestication occurs.
B.expropriation occurs.
C.confiscation occurs.
D.localization occurs.
Which law requires each state to establish a health insurance exchange?
A. Consolidated Omnibus Budget Reconciliation Act of 1985
B. Occupational Safety and Health Act of 1970
C.Health Insurance Portability and Accountability Act.
D.Patient Protection and Affordable Care Act
A call for a bid or estimate for materials to be furnished or work to be done is not
considered a(n):
A.offer.
B.acceptance.
C.request for proposal.
D.invitation to acceptance.
A guest whose stay is relatively uncertain is known as a:
A.traveler.
B.customer.
C.transient.
D.trespasser
Under Chapter 7 of the bankruptcy law, examples of exempt property under federal law
include all of the following EXCEPT:
A.one motor vehicle.
B.appliances.
C.trade tools.
D.vacation homes.
A principal must reimburse an agent for any loss or damage suffered by the agent in the
legitimate:
A.ownership of property.
B.performance of duties.
C.enforcement of rules.
D.transfer of power.
The federal statute designed to protect individuals from illegal employment
discrimination based on sex, race, color, religion, and national origin is known as the:
A.Occupational Safety and Health Act of 1970.
B.Age Discrimination in Employment Act of 1967.
C.Civil Rights Act of 1964.
D.Pregnancy Discrimination Act of 1978.
Deforestation alters the distribution and circulation of water, which in turn can lead to
all of the following situations EXCEPT:
A.drought.
B.avalanche.
C.flooding.
D.soil erosion.
Symbols used to identify services, as distinguished from goods, are called
______________.
A.service marks
B.patents
C.copyrights
D.trade dresss
The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) provides
employees and their families who lose employment health benefits the right to elect to
continue group health benefits provided by their group health plan for specified limited
periods of time.
A definite promise by the seller that the goods will have certain characteristics is a(n):
A.implied warranty.
B.express warranty.
C.limited warranty.
D.surety bond.
If an executor is deceased, declines to serve, or is lacking in capacity, or if the decedent
dies without making a will, the court will appoint a personal representative, known as
a(n) _____________.
A.testator
B.administrator.
C. settlor
D.legacy.
To protect the public, most states require persons engaged in certain businesses,
professions, and occupations to be:
A.contractual.
B.monopolized.
C.licensed.
D.unlicensed.
Under common law, ownership of real property extended from the center of the earth to
the highest point ________.
A.on the land.
B.in the county
C.in the sky
D.in the state
The Fourth Amendment ___________________.
A.grants Congress the power to regulate trade with foreign nations, and among the
several states, and with the Indian tribes.
B.mandates that each state respect and enforce both the judgments awarded by courts in
other states, and the statutes and case law of other states.
C.requires state judges to follow federal law in the event of a conflict with state law.
D.requires police officers and other government officials to have probable cause to be
able to conduct a personal or property search.
If a party has completely failed to perform contractual obligations within the time
specified:
A.the nonbreaching party is not required to pay under any circumstances.
B.the nonbreaching party may be required to pay for the work that has already been
completed.
C.the contract is terminated.
D.the contract may be terminated only under certain conditions.
Agreements in restraint of marriage are:
A.valid.
B.void.
C.voidable.
D.enforceable.
Contracts can be created for:
A.only one specific purpose.
B.one or two purposes.
C.only for agreements that involve monetary transactions.
D.any number of purposes.
A type of insurance that allows employees to recover damages for work-related injuries
and illnesses without having to prove negligence on the part of the employer is known
as:
A.workers’ compensation.
B.provident fund.
C.stipend.
D.worker illness
If the original contract is required to be in writing under the Statute of Frauds, the
assignment:
A.must also be in writing.
B.may be either written or oral.
C.is void.
D.is valid.
It is often necessary or desirable for a person or firm to be represented by another in
business or personal dealings with third parties. This relationship is called a(n):
A.employer-employee relationship.
B.principal-agency relationship.
C.title-agency relationship.
D.third party-agent relationship.
A receipt for goods that are to be shipped is known as a:
A.warehouse receipt.
B.bill of lading.
C.bill of sale.
D.bill of purchase.
The rapid advances in technology being experienced today make it difficult for people
to maintain online anonymity or distance between themselves and powerful:
A.sales persons.
B.interests.
C.forces.
D.departments.
If agreement of either party is obtained by fraud, misrepresentation, mistake, undue
influence, or duress, or if the contract is one of adhesion, or is unconscionable, a(n):
A.executed contract results.
B.valid contract results.
C.void contract results.
D.voidable contract results.
A person who dispenses drugs other than those specifically prescribed by authorized
professionals such as physicians also can be charged with malpractice if the incorrectly
dispensed drugs cause injury to the legal user. Such a person is known as a:
A.pharmacist.
B.physician.
C.psychiatrist.
D.nurse.
A code of ethics is also known as a(n):
A.kudo.
B.credo.
C.epilogue.
D.quantum.
It is stated that the terms of a written contract may not be changed by evidence of any
prior agreement but may be explained, or supplemented, by the:
A.Uniform Commercial Code (UCC).
B.Statute of Frauds.
C.Parol Evidence Rule.
D.English Law.
Workers’ compensation provides that damages may be recovered for work-related
injuries by:
A.employers.
B.employees.
C.beneficiaries.
D.trustees.
A contract for labor and materials to be enforceable, even though it involves $500 or
more:
A.must be entered by parties owning a business.
B.must be certified by notary.
C.should always be in writing.
D.need not always be in writing.
What are the requirements of a valid will?
What is a limited liability company and what is a disadvantage of this business
structure?
What power does the Sixteenth Amendment grant the federal government and what
agency was created by Congress to aid the federal government in administering these
powers?
How is an agreement of bailment created?
Describe the doctrine of preemption.
Briefly explain personal defenses against payment of commercial paper, and list at least
four defenses.
Distinguish between a lease and a license.
Describe agreements supported by moral consideration.
What are some non-legal penalties experienced by firms that engage in unethical
practices?
Distinguish among product flaw, failure to warn, and design defect in product liability
lawsuits.
Provide an example of a contract terminated by performance.
Distinguish between a testamentary trust and a living trust.
What are the six types of health-related insurance benefits typically available to
employees?
Define and give examples of secured debts.
Describe “white-collar crime.”
How important is a code of ethics for companies today?
Describe the purpose of design patents, and the length of time for which they are
granted.
What is an invitation to trade?