A special indorsement names the indorsee.
a. True
b. False
A court can refuse to enforce a contract that the court deems to have been
unconscionable at the time it was made.
a. True
b. False
One purpose of quasi contracts is to prevent unjust enrichment of one party at the
expense of another.
a. True
b. False
Oklahoma enacts a law requiring all businesses in the state to donate 10 per-cent of
their profits to Protestant churches that provide certain services to persons whose
income is below the poverty level. PriceLess Stores files a suit to block the laws
enforcement. The court would likely hold that this law violates
a. no clause in the U.S. Constitution.
b. the establishment clause.
c. thefree exercise clause.
d. thesupremacy clause.
Valley Tack Shop signs a contract with Garys Boots and Saddles for delivery of five
saddles that cost $200 each. To be enforceable under the Statute of Frauds, the written
contract must designate
a. the method of delivery.
b. the method of payment.
c. the quantity of saddles.
d. the seller.
If a principal ratifies a contract without knowing all of the facts, the principal can
rescind the contract.
a. True
b. False
If an employee dies in a work-related incident, the employer must notify OSHA within
eight hours.
a. True
b. False
Persons whose names appear in a corporations stock book are ordinarily entitled to
notice of shareholders meetings and the right to vote.
a. True
b. False
A point-of-sale system is a type of electronic fund transfer system.
a. True
b. False
The Norris-LaGuardia Act effectively declared a national policy permitting employees
to organize.
a. True
b. False
An accountant is not liable for a misleading statement that affects the price of a security
if the accountant acted in good faith.
a. True
b. False
Inadequate consideration always indicates undue influence.
a. True
b. False
A signature must be the full name of a party.
a. True
b. False
Because of the loss of significant amounts of revenue as a result of unauthorized digital
downloads, file-sharing has created problems for
a. the motion picture industry.
b. recording artists and their labels.
c. the companies that distribute file-sharing software.
d. all of the choices.
Bella owns a farm in Colorado. Doyle drives his sport utility vehicle off a highway and
onto Bellas land. Doyle commits trespass if he
a. does not have Bellas permission to drive on the property.
b. drives onto the property for recreational purposes.
c. harms the property in a material way.
d. harms the property in any way.
To raise capital to form Plasticity Corporation with Quinn, Rona sells bonds and stock
in other companies, and plans to register an initial public of-fer-ing under the Securities
Act of 1933. SEC Rule l0b-5 covers
a. most forms of securities.
b. only bonds.
c. only securities registered under the Securities Act of 1933.
d. only stock.
A fanciful use of ordinary words may be trademarked.
a. True
b. False
In some states, an unsolicited e-mail must include a toll-free phone number that the
recipient can use to ask the sender to send no more unsolicited e-mail.
a. True
b. False
Defamation is one persons use of anothers name without permission.
a. True
b. False
Disparagement of property is another term for slander of quality.
a. True
b. False
Sandy, a resident of Illinois, wants to file suit against Carl, a resident of Kansas, over
Carls failure to pay Sandy for work on his house. The amount in dispute is $15,000.
Under diversity of citizenship requirements, a federal cannot exercise jurisdiction in
this case because
a. the dispute concerns property, not persons.
b. a state court has not yet ruled in the suit.
c. the parties are citizens of different states.
d. the amount in controversy is less than $75,000.
Elton and Florida sign a contract by which Elton agrees to deliver and install a utility
sink on May 15 in exchange for Floridas promise to pay the $250 price on May 15. The
delivery and installation of the sink and the payment of the price are ex-amples of
a. conditions precedent.
b. concurrent conditions.
c. conditions subsequent.
d. implied conditions.
A firm named Scientific Discovery Corporation (SDC) makes an attempt to incorporate
for a purpose other than making a profit. SDC is
a. a foreign corporation.
b. an alien corporation.
c. a nonprofit corporation.
d. not a corporation.
Mae is granted immunity after she agrees to testify about a crime. Mae has an absolute
privilege against self-incrimination and
a. can be prosecuted only for a crime about which she agreed to testify.
b. cannot be prosecuted for any crime.
c. cannot refuse to testify on Fifth Amendment grounds.
d. can refuse to testify on Fifth Amendment grounds.
Suppliers are generally required to expect reasonably foreseeable misuses of their
products.
a. True
b. False
A principal who causes a third person to believe that another person is the principals
agent can be estopped from denying the agency relationship.
a. True
b. False
The ownership right to stock exists independently of a stock certificate.
a. True
b. False
Sarah has a checking account at Secure Bank. Sarah buys her roommate Sophies two
tickets to a Broadway musical for $200. Sarah writes Sophie a check for the tickets. In
this situation, Secure Bank is the
a. drawee.
b. indorser.
c. payee.
d. drawer.
Wally offers to sell a certain used forklift to Valu Lumber Outlet, but Wally dies before
Valu ac-cepts. Most likely, Wallys death
a. did not affect the offer.
b. shortened the time of the offer but did not terminate it.
c. extended the time of the offer.
d. termi-nated the offer.
A release does not require consideration to be legally binding.
a. True
b. False
A buyer in the ordinary course of business has priority over any security interest created
by the seller.
a. True
b. False