A mechanics lien is possessory.
a. True
b. False
Express warranties can notbe disclaimed in contracts.
a. True
b. False
Victor leaves his Dodge sport utility vehicle at Gordos Auto Service for an oil change.
This is
a. a bailment
b. a gift.
c. accession.
d. production
A person cannot become an HDC if a defense against payment is appar-ent on the face
of the instrument.
a. True
b. False
Under the Fourth Amendment, a general search warrant and a general search through a
persons belongings are permitted.
a. True
b. False
Bild-It-Rite Corporation is a public company that is preparing to issue securities that do
not qualify for an exemption from registration. This means that Bild-It-Rite must
a. file a registration statement with the SEC.
b. issue the securities through an online registration site.
c. refrain from issuing the securities to unregistered investors.
d. register the securities with a national stock exchange.
A check is not negotiable if it is payable on demand.
a. True
b. False
Clara is a salesperson in The Corner Store. When Carla makes a sale to Jenny, the sale
is
a. binding on The Corner Store.
b. binding on Carla.
c. binding on The Corner Store only if the owner of The Corner Store is present when
the sale is made.
d. not binding on anyone.
A manufacturers duty of care extends to the inspection and test-ing of products bought
to incorporate in the final product.
a. True
b. False
Jackson owns an antiques store. He sells a grand piano to Fred for $5,000, a old
jukebox to Sam for $499, an antebellum chest of drawers to Josephine for $659 and a
gold ring to Wendy for $999. Which of Jacksons sales must be in writing to be
enforceable?
a. The grand piano only
b. The grand piano and the gold ring only
c. The grand piano, the chest of drawers and the gold ring only
d. The grand piano, the chest of drawers, the jukebox and the gold ring
Chatsworth loans his laptop to Zelda. This is
a. a bailment.
b. a tenancy in common.
c. a gift.
d. lost property.
Will is an agent for MaryElise. MaryElise gives Will clear instructions to only enter into
contracts on Mondays, Wednesdays, or Fridays. Will enters into a contract on
MaryElises behalf on Tuesday. Will has breached
a. the duty of performance.
b. the duty of loyalty.
c. no duty.
d. the duty of obedience.
A student loan is discharged under Chapter 13 unless the creditor can show “undue
hardship.
a. True
b. False
Phil agrees to work for Vacation Resorts, Inc., as a chef. In determining whether a
contract has been formed, an element of prime importance is
a. the parties intent.
b. Phils rate of pay.
c. Phils education.
d. the terms of Phils employment.
If, before the time for performance, a buyer communicates an intent not to perform, the
seller can consider the buyer in breach and pursue a remedy.
a. True
b. False
Principal Resources Corporation contracts with Quality Construction to build an
addition to Principals corporate office building. Quality contracts with Rite Supply
Company for materials for the addition but refuses to pick up the materials. Meanwhile,
Principal hires Skye, a certified public accountant, to work in its cost-accounting
division as an employee, with no authority to hire or supervise others. Skye asks Theo,
an outside experienced accountant, to advise her on certain accounting procedures but
fails to pay Theo for the service. Principal also contracts with Uma, a salesperson, to
solicit orders for its products in a designated territory. Uma obtains an order from Verity
Industries, Inc., which is assured the order will be filled soon. But Uma does not follow
through with the paperwork and fails to submit the order to Principal. Verity suffers a
loss. Rite Supply, Theo, and Verity Industries claim Principal is liable under agency law.
Discuss fully whether an agency relationship was created by Principal with Quality
Construction, Skye, or Uma.
Rosa and Sean are directors of Tech, Inc. Rosas written authorization to Sean to vote
Rosas shares at a Tech shareholders meeting is
a. a violation of the duty of care.
b. a preemptive right.
c. a proxy.
d. a quorum.
In an action against the sate of Idaho, Jaime obtains a remedy. This is
a. the relief given to an innocent party to enforce a right or to prevent or compensate for
the violation of a right.
b. medication paid for by the government.
c. a right guaranteed by the Bill of Rights.
d. a situation or state of facts that gives a person a right to initiate a judicial proceeding.
The UETA does not require the use of security procedures to verify changes to
electronic documents and to correct errors.
a. True
b. False
Kelly tells Jimmy she will pay him $1,000 if he builds a shed in her backyard. Kelly is
a. anofferee.
b. anofferor.
c. apromisee.
d. none of the choices.
Expenses that are caused directly by a breach of contractsuch as those in-curred to
obtain performance from another sourceare compensatory dam-ages.
a. True
b. False
A customer has a right to stop payment on a check that has been certified or accepted by
a bank.
a. True
b. False
There are no circumstances under which a contract can be tendered by multiple
deliveries of goods.
a. True
b. False
FlavorBean Coffee Company agrees to buy an unspecified quantity of coffee beans
from Global AgriCorp. Global breaches the contract. In FlavorBeans suit to obtain
relief, the court will most likely
a. award a reasonable quantity of beans to FlavorBean.
b. award FlavorBean all the beans that it requires.
c. award Globals output of coffee beans to FlavorBean.
d. have no basis for determining a remedy.
An accountants liability under the Securities Act of 1933 re-quires privity of contract
with the purchaser of a security.
a. True
b. False
A professional can be liable for fraud whether or not he or she acted with fraudulent
intent.
a. True
b. False
UniOil, a U.S. firm, owns property in Venezuela. When the government of Venezuela
seizes the property, UniOil asks a U.S. court to order the propertys return. The court
rules that Venezuela is exempt from the courts jurisdiction. This is
a. a travesty of justice.
b. theact of state doctrine.
c. thedoctrine of sovereign immunity.
d. theprinciple of comity.
Anyone who writes a book has automatic international copyright protection.
a. True
b. False
Each bank in a collection chain must pass a check on before noon of the day of its
receipt.
a. True
b. False
Two Japanese firmsMikato, Ltd., and Shuzushi, Ltd.enter into a joint venture in an
attempt to in-crease their market share of the U.S. auto market. If the joint venture is
not a per se violation of U.S. antitrust laws, a U.S. court could ex-ercise jurisdiction
over the firms
a. if the joint venture has a substantial effect on U.S. commerce.
b. if the joint venture has any effect on U.S. commerce.
c. if the joint venture was entered into in the United States.
d. under no circumstances.
Patents are not considered personal property.
a. True
b. False
Fiona owns one share of stock in SK8 Boards Corporation, as evidenced by a stock
certificate. Fiona loses the certificate. Her ownership of the stock is
a. forfeited immediately.
b. forfeited within ten days of a third partys claim to ownership.
c. forfeited within thirty days if she cannot find the certificate.
d. forfeited within thirty days if she cannot find the certificate.
Jim agrees to act on Kits behalf, subject to Kits control, and Kit trusts Jim to so act.
This describes a relationship between
a. a business and its competitors.
b. a government and its governed
c. a parent and a child.
d. a principal and an agent.