Gail enters into a contract with Hi-Price Appliances, Inc. In a suit be-tween the parties
over payment under the contract, Gail claims that a certain clause is unconscionable. If
the court agrees, it may
a. enforce, limit, or refuse to enforce the contract or the disputed clause.
b. enforce the contract without the disputed clause only.
c. limit the application of the disputed clause only.
d. refuse to enforce the entire contract only.
Attachment makes the security interest between a debtor and se-cured party ineffective.
a. True
b. False
An attorney may be liable to a third party who relies on the attorneys legal opinion to
the third partys detriment
a. True
b. False
An executor is a personal representative appointed by a court for a dece-dent who dies
without a will.
a. True
b. False
The doctrine of promissory estoppel does not apply if there exists a clear and definite
promise.
a. True
b. False
A crime can be committed only against persons.
a. True
b. False
The simplest way for a U.S. firm to do business in a foreign mar-ket is to ex-port its
products directly to that market.
a. True
b. False
To be a “good citizen, hen making decisions a business should not evaluate the public
relations impact.
a. True
b. False
Employees are entitled to overtime pay only at their employers discretion.
a. True
b. False
A material change in a loan contract between a creditor and a debtor dis-charges a
surety only to the extent that the surety suffers a loss.
a. True
b. False
Sally contracts with Tasty Pizza Company to deliver its products. Both parties change
their minds, however, and inform each other that they would like to cancel the contract.
Refer to Fact Pattern 10-1. The next day, Sally changes her mind and again offers to
deliver Tastys products. Tasty is willing to deal, but for a new price. Sally and Tasty a.
may agree to a new contract, but it cannot include a new price.
b. may agree to a new contract that includes the new price.
c. must perform their original contract.
d. must perform the part of their original contract that is executory.
Under rules of professional misconduct, an attorney should not engage in conduct
involving deceit.
a. True
b. False
A sellers price list is notan offer.
a. True
b. False
Common law is a term for the laws that are familiar to most of us.
a. True
b. False
Ethics is less certain than law.
a. True
b. False
Article 2 of the UCC covers any transaction that creates a lease of goods.
a. True
b. False
A financing statement must include the creditors signature.
a. True
b. False
Business ethics is not more complicated than personal ethics.
a. True
b. False
To borrow money to finance the start-up of his business, Bob executes an instrument in
favor of City Bank. For the instru-ment to be negotiable, the signature must be
a. anywhere on the instrument.
b. anywhere on the lower half of the instrument only.
c. in the lower left-hand corner of the instrument only.
d. in the lower right-hand corner of the instrument only.
Unfair labor practices are defined by the Norris-LaGuardia Act
a. True
b. False
Jane is the secured party in a secured transaction with Margaret. Jane could also be
referred to as the
a. debtor.
b. secured creditor.
c. collateral.
d. filing officer.
Wally asks Eddie if he can store his furniture in Eddies garage while he serves a tour of
duty with the U.S. Marines Corps. Eddie agrees. This is
a. a bailment.
b. accession.
c. a gift.
d. abandoned property.
A bearer instrument is an instrument that does not designate a specific payee.
a. True
b. False
When you download an application on your smartphone, you are typically entering into
a license agreement.
a. True
b. False
Richard is an avid baseball fan and attends baseball games whenever he can. Richard
considers himself an expert on all things, including risks, related to baseball. One day a
ball flies into the stands, hits Richard in the head and seriously injures him. Richard can
probably successfully win a case against the sports stadium based on
a. negligence.
b. breach of duty of care.
c. defamation.
d. none of the choices.
Jane enters into a contract with Jill to provide 100 roses for a dinner party. Jane fails to
deliver the roses. Jill initiates a suit against Jane, asking the court to order Jane to
deliver the roses. Jill is
a. the plaintiff.
b. the defendant.
c. the binding authority.
d. the persuasive authority.
Land includes the artificial structures attached to it.
a. True
b. False
Quotas are limits on the amounts of goods that can be exported.
a. True
b. False
A bank that pays a customers check with a forged drawers signature can generally pass
the loss onto the customer.
a. True
b. False
Ichiro is injured in a two-car accident and sues Heather, the driver of the other vehicle,
alleging negligence. Heather claims that Ichiro was driving more carelessly than she
was. Comparative negligence may reduce Ichiros recovery
a. even if Ichiro was only slightly at fault.
b. only if Ichiro and Heather were equally at fault.
c. only if Ichiro was less at fault than Heather.
d. only if Ichiro was more at fault than Heather.
Eden, the chief executive officer of Flo-Thru Piping Corporation, wants to en-sure that
Flo-Thrus activities are legal and ethical. The best course for Eden and Flo-Thru is to
act in
a. good faith.
b. ignorance of the law.
c. regard for the firms shareholders only.
d. their own self interest.
A security interest is not enforceable after the creditors rights have at-tached to the
collateral.
a. True
b. False
Writers acquire ownership of their work through production.
a. True
b. False