Of the following, the one that is not a duty owed by a principal to an agent is
a. reimbursement.
b. compensation.
c. obedience.
d. indemnification.
Past consideration
a. is synonymous with moral consideration.
b. is a promise made for an act about to take place.
c. usually induces the offeree to act.
d. is a promise made for an act that has already taken place.
For several weeks Bates used his noisy power lawn mower every Sunday morning at
sunrise. Several neighbors asked him to mow his lawn at another time; Bates refused.
The best legal course of action for the neighbors to take to stop this nuisance would be
to
a. sue Bates for money damages.
b. swear out a warrant for Bates’ arrest.
c. seek a court injunction against the continuation of the act.
d. present a signed petition to the mayor of the city.
An assignment involving real property
a. usually requires no special form.
b. may be made orally.
c. must be in writing.
d. may be made orally or in writing.
Uhlen told Bixby that he had been appointed by Green to sell Green’s car, and Bixby
agreed to buy it. Uhlen was in fact not Green’s agent. If Green refuses to sell the car to
Bixby, Bixby can sue
a. Uhlen for breach of contract.
b. Green for breach of contract.
c. both Uhlen and Green.
d. neither Uhlen nor Green.
The purpose of consumer protection laws is
a. to prohibit unfair business practices.
b. to set minimum product standards.
c. to provide procedures for correcting wrongs.
d. all of these.
An example of a situation that would terminate an agency by operation of law would be
a. a postal strike.
b. nonpayment of the agent.
c. death of the agent.
d. nonrenewal of the agency contract.
That part of a loss that an insured must pay is called a
a. subrogation.
b. deductible.
c. risk of loss.
d. casualty.
Atkins sold Goldon a computer; the price was $1,200, due on March 7. Atkins assigned
the debt to Fisher, to whom she (Atkins) owed $1,200. Fisher properly notified Goldon
of the assignment. On March 7, Goldon notified Fisher that she could not pay the
money because of financial difficulties. In this case, Fisher has a legal right to collect
the $1,200 from
a. nobody.
b. Goldon only.
c. Atkins.
d. none of these.
An assignment is best described as a transfer of
a. an obligation.
b. a right.
c. a personal responsibility.
d. all of these.
Glocker assigned to Baines her right to collect $500 from Palmer. Palmer, who was not
notified of the assignment, paid the $500 to Glocker. Can Baines collect the $500 from
Palmer?
a. Yes; oral or written assignments are valid without consent.
b. Yes; rights may be delegated without consent of the parties involved.
c. No; full payment made before receiving notification of an assignment completely
releases the obligor from any legal obligation to the assignee.
d. No; part payment made before receiving notification of an assignment will reduce the
obligor’s responsibility to the assignee.
The following statement was printed on a tag attached to an electric clock: “Warranted
for one year from date of purchase against original factory imperfections in materials
and workmanship.” This warranty statement on the tag represents an
a. express warranty as to quality.
b. express warranty of title.
c. implied warranty as to freedom from defects.
d. implied warranty of fitness for purpose.
If the seller breaches a sales contract, the buyer may
a. sue for damages.
b. sue for specific performance.
c. cancel the contract and cover.
d. all of these.
In most states, the number of witnesses required for a will to be valid is
a. one.
b. three.
c. four.
d. none.
A principal-agency relationship may be used for
a. personal purposes.
b. business purposes.
c. both personal and business purposes.
d. employment purposes only.
A principal may be held liable to third parties for torts committed by an agent if the
a. agent is a gratuitous agent.
b. third party notifies the principal.
c. third party notifies the agent.
d. agent acts within the scope of the agent’s authority.
In a contract requiring the repayment of money, the borrower is known as the
a. assignor.
b. assignee.
c. administrator.
d. obligor.
The procedure that comes next after an arrest is made by a police officer and the
arrested person is taken to the police station
a. the indictment.
b. jury selection.
c. booking.
d. a preliminary hearing.
Title to personal property may be transferred by
a. deed.
b. delivery.
c. eminent domain.
d. easement.
Property used to secure repayment of a loan is known as
a. lien property.
b. secured property.
c. collateral.
d. judgment property.
Usury statutes apply only to
a. loans of money.
b. pawnbrokers.
c. loans to corporations.
d. real estate mortgage loans.
An annuity provides income for
a. a specific period of time or the life of the owner.
b. thirty years.
c. all of these.
d. none of these.
For a bailment to exist, there must be
a. a transfer of possession.
b. a transfer of title.
c. a transfer of real property.
d. none of these.
Grimes is suing Winkler for damages brought about when Winkler breached a contract
with Grimes. Assuming that both parties lived in the state of Nevada, the case will
appear on the court docket as
a. Winkler v. State of Nevada.
b. Winkler v. Grimes.
c. Grimes v. Winkler.
d. State of Nevada v. Winkler.
Covenants not to compete are generally upheld in court if
a. the agreements interfere with the proper administration of justice.
b. goodwill is present.
c. the territory and time restrictions are reasonable.
d. a minor is not part of the business transaction.
An examination of jurors to determine their qualifications and suitability to serve is
called the ____________________ examination.
Insurance policies cannot be assigned before a loss occurs without the insurer’s
permission.
An agreement modifying a contract for the sale of goods needs no consideration to be
binding.
An interest in land called a(n) ____________________ allows one to mine resources
from the land of another.
Each party to a contract obtains both rights and obligations.
If no time period for acceptance is stated in an offer, the offer ends at the end of a(n)
____________________.
Negotiable instruments can be used either as a substitute for money or as a means of
extending credit.
The offeror has the right to specify how an acceptance of an offer must be made.
A(n) ____________________ implies that the leased premises are fit for human
habitation and do not contain hazardous conditions.
Burton was employed by the Diaz Manufacturing Co. He called a meeting of fellow
employees to discuss organizing a union. When the company heard of the meeting, it
fired Burton. Was the company’s action legal?