Stockholders have the power to
a. elect directors.
b. amend the by-laws.
c. approve of a merger.
d. all of these.
An unpaid seller has the right to stop delivery of goods purchased on credit that were
delivered to a carrier for shipment to the buyer whenever the
a. buyer fails to make the required payment within the required time once the goods
have been delivered to him or her.
b. buyer rejects the contract after receiving the goods.
c. seller becomes insolvent.
d. seller learns of the buyer’s insolvency while the goods are still in transit.
A beauty shop owner offered one of her employees a bonus of $100 over a six-month
period if she would promise to give all customers excellent service. This promise by the
beauty shop owner is
a. based on forbearance.
b. sufficient to give the employee the right to sue if she does provide good service and
the beauty shop owner fails to pay.
c. not valid because the employee is already legally bound to give excellent service.
d. based on past consideration.
Damages awarded as actual, measurable damages suffered are called
a. punitive damages.
b. compensatory damages.
c. comparative damages.
d. none of these.
Which of the following situations would not constitute a ratification of a contract by a
minor?
a. Prior to reaching majority, a minor expressly agrees to be bound by the terms of the
contract.
b. After reaching majority, the minor fails to disaffirm the contract within a reasonable
time.
c. After reaching majority, the minor expresses in writing an intention to be bound by
the terms of the contract.
d. After reaching majority, the minor expresses orally an intention to be bound by the
terms of the contract.
Lemon, owner of a stationery store, accepted and paid for thirty dozen computer disks
from the Zanny Stationery Company. After selling some of the disks, Lemon began to
get complaints that the disks were defective. Lemon’s legal remedy against the Zanny
Stationery Company is
a. none.
b. to resell the goods and sue Zanny for damages.
c. to sue Zanny for breach of warranty.
d. to sue Zanny for specific performance.
Grimes promised to give Marks, his niece, $500 if she (Marks) promised to give up
smoking for six months. Marks did promise to do so. At the end of six months, since
Marks did not smoke, she received the $500 from Grimes. This is an example of an
a. express, bilateral, executed contract.
b. express, unilateral, executed contract.
c. express, bilateral, executory contract.
d. express, bilateral, quasi contract.
After getting married, Rosen made a will in which he left all of his property to his wife.
Within the next five years, Rosen and his wife had two children. Ten years after making
the will, Rosen died. Who inherits Rosen’s estate?
An agent hired to sell a house has ____________________ authority to advertise the
sale.
Central Bank refused to lend Gaines $3,000 unless Bronson, his father-in-law, agreed to
act as surety. Bronson agreed. When Gaines was unable to repay the loan, the bank
contacted Bronson. Bronson refused to pay, claiming that the bank must first sue Gaines
to collect the money. Is Bronson correct?
Distinguish between a ‘sale on approval” and a” sale or return.”
If the offeror does not insist on a specific means of communicating the acceptance, an
offer made by telegram and accepted by mail is binding when the acceptance is mailed.