A void title may allow good title to pass in special circumstances.
a. True
b. False
Which one of the following assignments would probably be prohibited by a court?
a. Mary is in debt. A credit card company calls and threatens to sue. Mary orally assigns
her next bimonthly paycheck to her creditor.
b. John is a house painter. He is scheduled to paint Molly’s home on Monday. John
wakes up Monday morning with a stiff neck. He calls Ed, who is also a painter, to begin
the job at Molly’s.
c. Ron has a contract with Bonett Bank to service their coffee machines. He assigns the
remainder of his contract with Bonett to Michelle, who also owns a coffee service.
d. All of these.
The UCC provides that a merchant is bound to keep a written offer open for the stated
period, but no longer than:
a. ten days.
b. two months.
c. three months.
d. a reasonable time.
Article 2 of the Uniform Commercial Code does not apply to the sale of services.
a. True
b. False
The Hometown News snapped a picture of Tim as he was sleeping under a tree in the
park on a warm spring day. If the paper printed the picture on the front page:
a. the Hometown News is guilty of intrusion.
b. the Hometown News is guilty of false light.
c. the Hometown News is guilty of appropriation.
d. it is unlikely that the Hometown News is guilty of any tort.
What are the principal sources for corporate financing?
a. Debt.
b. Equity investment securities.
c. Retained earnings.
d. All of these.
The definition of business ethics includes which of the following points?
a. It is a branch of applied ethics.
b. It is fully codified in federal statutes.
c. It has a central authority and universal standards.
d. It is based on maximizing profits for a business.
A reversion is held by a person other than the grantor or his successors.
a. True
b. False
The availability of some buyers remedies depends on the buyer’s actions.
a. True
b. False
All present and former owners of contaminated property have liability for its Superfund
clean-up costs if they caused the contamination or if they owned the property while it
was contaminated, whether or not they knew of the contamination.
a. True
b. False
The Dodd-Frank Act of 2010:
a. requires that lenders ensure borrowers will repay their mortgage loans.
b. prohibits unfair and deceptive lending practices, although subprime mortgages are
excluded from the scope of the Act.
c. expands protection for borrowers of high-cost mortgage loans.
d. requires that lenders disclose the minimum amount a consumer could pay on a
variable rate mortgage.
A salesperson at Lakeview Furniture showed Camila a cherry end table and she ordered
one like it to be delivered to her home four weeks later. When the table arrived, it was
not made of cherry wood, but of pine. If Camila fails to notify Lakeview of the breach
within a reasonable time, she will be barred from any remedy against Lakeview.
a. True
b. False
A quasi contract is another name for an oral contract.
a. True
b. False
If the goods that are the subject of a sale are in the possession of a bailee and are to be
delivered without being moved, when does the risk of loss pass to the buyer?
a. At such time as the contract of sale was entered.
b. At such time as the buyer receives the negotiable document of title.
c. When the seller tenders a nonnegotiable document of title to the bailee.
d. When the bailee is orally notified of the sale.
An exemption from application of the Fair Housing Act applies to single-family homes
owned by private individuals who own fewer than four houses.
a. True
b. False
a. Who selects the officers of a corporation under most state corporate statutes? Who
removes them? Explain.
b. What duties do the officers and directors of a corporation owe to the corporation?
Explain.
State statutes or lease provisions often permit a landlord to evict a tenant for
nonpayment of rent.
a. True
b. False
Barry presents to Wake Bank for deposit in his account a check for $100 made out to
him by Richard. Wake Bank provisionally credits Barry’s account on Monday. When is
payment final?
a. Automatically at the end of the third business day.
b. Midnight Tuesday.
c. When the amount of the check is collected from Richard’s bank.
d. When Richard’s bank receives the check.
An accord and satisfaction discharges the original debt.
a. True
b. False
Title to corporate property belongs to the shareholders.
a. True
b. False
The Revised Act provides that at least two persons need to act as incorporators, though
more may do so.
a. True
b. False
Sara holds 1,000 shares of stock in Starr, Inc., which she purchased based upon
financial statements that Travis had prepared. She now realizes that the statements were
false and wants to sue Travis for common law fraud. What is Travis’s best defense?
a. Sara lacks privity of contract.
b. Travis gave a broad disclaimer as part of the financial statement.
c. The false statements were immaterial.
d. Starr contributed to the misstatement.
Claims of unequal pay for jobs of comparable worth may be brought under:
a. Title VII.
b. The Equal Pay Act.
c. OSHA.
d. Such claims may be brought under all of the above.
The Revised Article 3 of the UCC provides that a check which meets all requirements
of being a negotiable instrument, except that it is not payable to bearer or order, is
nevertheless a negotiable instrument.
a. True
b. False
The Magnuson-Moss Act applies to all sales of goods covered by the Uniform
Commercial Code.
a. True
b. False
Inga runs a Swedish health spa in Connecticut. She orders 100 loofah sponges from a
company in California. They are sent “F.O.B. Hartford, Connecticut,” but they never
arrive. What consequence?
a. Inga has to pay anyway since it was a destination contract.
b. The California company is required to bear the loss since the sponges had not yet
reached the F.O.B. point.
c. The California company and Inga will have to split the loss since they did not specify
in their contract when the risk of loss would pass to Inga.
d. It cannot be determined who has the risk of loss from the information given.
The National Cooperative Research Act was passed to facilitate the use of joint ventures
for joint research and development.
a. True
b. False
When a corporation issues no par value stock, the entire consideration received
constitutes stated capital except that amount allocated in a manner permitted by law to
capital surplus or paid-in surplus.
a. True
b. False
Which of the following are pleadings?
a. Complaint, summons, answer, reply.
b. Interviews, discovery, witness list.
c. Summons, depositions, voir dire.
d. Arbitration, written interrogatories
The __________ Amendment prohibits excessive bail and prohibits cruel and unusual
punishment.
a. Fourth
b. Fifth
c. Sixth
d. Eighth
A partner is criminally liable for the crimes of her partners.
a. True
b. False
The Dodd-Frank Act requires that every year publicly held companies include a
provision in proxy statements for a binding shareholder vote on executive
compensation..
a. True
b. False
Rebecca sees a pair of beautiful silver shoes in a store window. She goes in and tells the
shopkeeper, “If I am asked to the prom, I will buy those shoes. Please hold them for
me.” If the shopkeeper signs a note that says, “Will hold for Rebecca silver shoes, style
1028, size 8,” will he have to honor that promise?
a. Yes, and there is a condition precedent to the contract of sale.
b. Yes, there is a contract with a condition subsequent.
c. No, there is no contract but simply an illusory promise.
d. No, a contract is formed after Rebecca is asked to the prom.
The Consumer Financial Protection Bureau replaced the federal consumer financial
regulatory system which had been split among the Office of the Comptroller of the
Currency, Office of Thrift Supervision, FDIC, Federal Reserve, National Credit Union
Administration, HUD, and the FTC.
a. True
b. False