In an auction without reserve, the seller is the offeree.
Collision insurance covers damages to a car in a natural disaster.
A voluntary petition is a petition filed by a creditor that states that the debtor has paid
his debts.
In a case in which a buyer purchases goods from a thief who has stolen them, the
purchaser does not acquire title to the goods.
The Chancery courts under the English common law were under the authority of the
Lord Chancellor.
An express warranty is created upon description of the goods.
A(n) ________ is a document of title issued by a common carrier stating that the bailor
has title to the bailed goods.
A) bill of lading
B) accession
C) freight forwarder
D) delivery order
A geographical area that does not meet established air quality standards is designated as
a(n) ________.
A) limited pollution area
B) nonattainment area
C) zoned ordinance area
D) federal regulation area
Which of the following businesses and activities enjoys an implied exemption from
antitrust laws?
A) railroads
B) agricultural cooperatives
C) airlines
D) labor unions
Spring Stream sells bottled water that it claims contains vital minerals and salts not
found in rival brands. The company also claims that using tamperproof seals on the
bottles would minimize the health benefits of the water. As a result, some merchants
refill the used water bottles with contaminated water and resell them. People who drink
the water suffer from various water-borne diseases. Which of the following forms the
grounds on which affected customers can bring a strict liability lawsuit against Spring
Stream?
A) There was a defect in the manufacture of the bottled water.
B) There was a defect in the packaging of the bottled water.
C) The company failed to provide warnings about the dangers of contaminated water.
D) There was a defect in the design of the water bottles.
Which of the following statements is true of umbrella insurance?
A) It cannot be used for liability coverage.
B) It does not require the insured to have already purchased insurance policies.
C) It cannot be used with other insurance policies.
D) It is only paid if the limits on other insurance policies have been exceeded.
A ________ is an instrument that gives a creditor a security interest in the debtor’s real
property that is pledged as collateral for a loan.
A) credit report
B) letter of credit
C) remittance advice
D) deed of trust
The ________ bears the risk of loss during transportation in a destination contract.
A) buyer
B) seller
C) carrier
D) shipper
________ is an insurance that employers obtain and purchase from private insurance
companies or from government-sponsored programs.
A) Employee insurance
B) Relief fund insurance
C) Provident fund insurance
D) Workers’ compensation insurance
Which of the following rules provides that an accountant is liable only for negligence to
third parties who are members of a limited class of intended users of the client’s
financial statements?
A) Section 552 of the Restatement (Second) of Torts
B) the foreseeability standard
C) the Ultramares doctrine
D) due diligence defense
The designation of ________ is used for businesses that are operating under a trade
name.
A) w.e.f.
B) p.f.a.
C) d.b.a.
D) l.o.p.
Martin, who owned a piece of property along with two other tenants, executed a will in
which he left all his property to his son. When Martin died, his son received his interest
in the shared property and became a tenant with the other two owners. What kind of
concurrent ownership would allow such a passage of title?
A) a joint tenancy
B) a tenancy in common
C) a tenancy by entirety
D) a community property
What is considered as the supreme law of the land in the United States?
A) judicial decisions issued by the state courts
B) the Constitution of the United States of America
C) the federal statutes passed by the United States Congress
D) executive orders passed by the president