A company can broadly prohibit its employees from criticizing the company via social
media.
a. True
b. False
A surety can never assert fraud as a defense.
a. True
b. False
Svetlana, a fifty-five-year-old member of a racial minority with a disability, believes
that she is a victim of employment discrimination. Potentially the most widespread
form of discrimination is based on
a. age.
b. disability.
c. gender.
d. race.
Flexo Trucking Company transports hazard-ous waste. Garn is a Flexo driver, whom
the company knows drives longer hours than federal regula-tions permit. One night,
Garn exceeds the limit and has an accident. Spilled chemicals contaminate Hill Citys
water source, forcing the residents to move away. Flexo acted unethically because
a. Flexo showed reckless disregard for Hill Citys residents and others.
b. Garn exceeded the federal time limit.
c. harm was caused by an unfortunate accident.
d. Hill City should have better protected its water source.
Deb buys a song through eSongs, an online music vendor. Before completing the
purchase and downloading the song, Deb must agree to a provision stating that she will
not make and sell copies of the song. This provision is
a. a browse-wrap term.
b. a click-on agreement.
c. a shrink-wrap agreement.
d. a wrap-on agreement.
Denise borrows $90,000 from Clear Lake Credit Union to buy a home. Denise loses her
job and fails to make payments on the mortgage, but assures Clear Lake Credit that she
will soon secure a new job. The lender agrees to postpone the payments. This is
a. a right of redemption.
b. aforbearance.
c. a short sale.
d. a workout agreement.
Biff signs a note “payable to the order of County Credit Union. Unless Biff has a valid
defense against payment, Biffs liability on this note is
a. nothing.
b. primary.
c. secondary.
d. conditional.
An agent has a duty to keep and make available to the principal an account of all
property and funds received and paid out on behalf of the principal.
a. True
b. False
Ed is a debtor. Financial Loans, Inc., and the government are Eds credi-tors. For these
parties, a bankruptcy proceeding under Chapter 13 could be initiated by the filing of a
petition byEd is a debtor. Financial Loans, Inc., and the government are Eds credi-tors.
For these parties, a bankruptcy proceeding under Chapter 13 could be initiated by the
filing of a petition by
a. Ed alone or by his creditors jointly.
b. Ed only.
c. Financial Loans only.
d. the government only.
Elections for union officers are regulated by
a. the Fair Labor Standards Act.
b. the Occupational Safety and Health Act.
c. the Labor-Management Reporting and Disclosure Act.
d. no federal law.
Ben and Andrew are parties to a contract. They agree on a novation. The novation does
not require
a. the existence of a previous, valid obligation.
b. agreement by all the parties to a new contract.
c. performance of the original contract by all of the parties.
d. a new, valid contract.
Paige applies to work for Quibbling & Company. Reece applies for admittance to State
University. As part of their applications, Paige and Reece are asked to divulge their
social media passwords. Legislation that protects individuals from having to disclose
their social media passwords has been enacted in
a. no states.
b. most states but not by the federal government.
c. all states and by the federal government.
d. four states.
Lucy, a minor, disaffirms a contract for necessaries without returning the goods. To
Mannys Food Mart, the seller, Lucy is required to pay
a. nothing.
b. the reasonable value of the goods.
c. the sales price of the goods.
d. the ultimate worth of the goods.
Lyn files a suit against Karl. Karl denies Lyns charges and sets forth his own claim that
Lyn breached their contract and owes Karl money for the breach. Karls claim is
a. a contrary charge.
b. a counterclaim.
c. a counterpoint.
d. a cross complaint.
Tender must occur at a reasonable hour and in a reasonable manner.
a. True
b. False
A director can be elected by the other members of the board.
a. True
b. False
The term consideration refers to the voluntary consent of all of the parties to a contract.
a. True
b. False
All that a delegator needs to do to make a delegation effective is to express an intention
to make the delegation.
a. True
b. False
After an accident with a driver for Onyx Security Company, Paul signs a covenant not
to sue Onyx for damages in a tort action if it pays for the damage to his car. This
covenant
a. bars recovery only if Onyx pays.
b. is an illusory contract.
c. is barred by the preexisting duty rule.
d. is unconscionable.
A business firm may have an insurable interest in the life of any of its employees,
except a key employee.
a. True
b. False
To maintain a suit for the invasion of privacy, a person must have a reasonable
expectation of privacy in the particular situation.
a. True
b. False
A tariff is always a flat rate per unit.
a. True
b. False
Some states permit a corporate board to have fewer than three directors.
a. True
b. False
It is possible to copyright an idea.
a. True
b. False
The payment of Edens debt to Flem is guaranteed by Edens personal property. This
property is
a. a secured party.
b. a secured transaction.
c. a security interest.
d. collateral.
Ryan invents a pen that digitally “remembers what is written or drawn with it. To obtain
a patent for the pen, Ryan does not have to show that it is
a. novel.
b. marketable.
c. useful.
d. not obvious in light of current technology.
Simon signs a check “pay to the order of Tilly drawn on Simons account in United
Bank. Vela forges Tillys indorsement, First Federal Bank cashes the check, and Vela
disappears. United pays First Federal and debits Simons account. Most likely, the
ultimate loss will fall on
a. Simon.
b. Trudy.
c. United Bank.
d. First Federal Bank.
Signe offers to sell Thomas her textbook but conditions the sale on Thomas ac-cepting
the offer by March 1. Signe may revoke the offer
a. beforeThomas accepts the offer.
b. before March 1, whether or not Thomas has accepted the offer.
c. only after Thomas accepts the offer.
d. only after March 1.
Tyler, a citizen of West Virginia, files a suit in a West Virginia state court against
Louisville Sales Corporation, a Kentucky state company that does business in West
Virginia. The court has original jurisdiction, which means that
a. the case is being heard for the first time.
b. the court has a unique method of deciding whether to hear a case.
c. the court has unusual procedural rules.
d. the subject matter of the suit is interesting and new.
An applicant for insurance has a duty to disclose only material facts that the insurer
asks for.
a. True
b. False
Secure Investments, Inc., a U.S. firm, expands into international markets through a joint
venture. In this situation, Secure owns
a. all of the operation, and its profits and liabilities.
b. all of the operation, and none of its profits and liabilities.
c. none of the operation, and none of its profits and liabilities.
d. part of the operation, and shares its profits and liabilities.
Muffins-2-Go buys a truck from Street Vehicles, Inc., under a contract signed by Riley,
Muffins-2-Gos president, making him personally liable if Muffins-2-Go does not pay
the loan. Riley is
a. a guarantor.
b. a surety.
c. a co-surety.
d. a co-creditor.
Ginny obtains a health-insurance policy for her family from Hope Insurance Company.
The policy includes an incontestability clause. Under such a clause, after a policy has
been in force for a specified period or time, such as two or three years
a. Ginny cannot contest Hopes insurable interest.
b. Ginny cannot contest Hopes refusal to pay a claim under the policy.
c. Hope cannot contest Ginnys eligibility for continued coverage.
d. Hope cannot contest Ginnys statements in the application.