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1) the obligation of an acceptor is:
a.to make an unconditional promise to pay a fixed amount of money and is responsible
for making good on that promise.
b.to pay the check according to its terms at the time he issued it.
c.to pay the draft according to the terms at the time of its acceptance.
d.to pay the amount due on the instrument according to its terms at the time he indorsed
it.
2) in which of the following circumstances, under the doctrine of stare decisis, does the
common law rule stated in an earlier judgement not apply to a present case?
a.only when the case concerns a government agency.
b.only when the court distinguishes the earlier decision.
c.only when the parties involved jointly appeal to the courts to do so.
d.the doctrine of stare decisis does not allow this kind of a situation.
3) the person who receives the insurance proceeds in a life insurance is the:
a.insurer.
b.insured.
c.trustee.
d.beneficiary.
4) which of the following is true about eliminating partners apparent authority?
a.eliminating the apparent authority is not a safe practice during winding up.
b.apparent authority cannot be eliminated by merely informing the existing business
clients.
c.filing a statement of dissolution will increase the partners apparent authority.
d.the partnership should post notice of the dissolution at its place of business to let third
parties know.
5) which of the following indorsements is a blank indorsement?
a.for deposit only
b.mel gibbs
c.pay to jack black in trust for mel gibbs
d.pay to the order of jack black, mel gibbs
6) which of the following is true about asset distribution in an llp?
a.if the llp has been profitable, each partner will receive the net amount in his capital
account.
b.the partners have liability for partnership obligations beyond the firms assets.
c.an llp partner has to contribute an amount equal to the negative balance in his account
to pay creditors.
d.the creditors must sue the partner to force the partner to pay the debt.
7) which of the following entities is covered by title vii? assume that the entity in
question discriminates on one of the bases forbidden by title vii.
a.an individual who employs 5 people.
b.a corporation employing 10 people.
c.a labor union with 20 members.
d.a private college with 12 employees.
8) if the drawee bank mistakenly paid a check with a forged or unauthorized drawers
signature on it:
a.the bank can recover the amount from the person whose name had been mentioned in
the check albeit without authorization.
b.the bank can recover if it paid the check to a presenter who had taken the instrument
in good faith and for value.
c.the bank cannot recover if it paid the check to a forger or unauthorized signer.
d.the bank cannot recover it if the presenter had taken the instrument in good faith and
for value.
9) debbie jones and bill schneider exchanged standard order forms to formalize their
contract for a batch of goods and realized that their standard forms do not agree on
material terms. under ucc section 2-207, when will there be a contract? assume that bill
did not make its acceptance conditional on debbies assent to any additional or different
terms.
a.only when debbie and bill are merchants.
b.when bills form is a definite and seasonable expression of acceptance.
c.when the conduct of one party recognizes the existence of a contract.
d.when the offer expressly limits acceptance to its own terms.
10) which of the following is true of the commerce clause in present times?
a.it has become a federal power with an extensive regulatory reach.
b.it no longer blocks state regulations that hinder interstate commerce.
c.it has been preempted by the federal taxing and spending powers.
d.it allows congress to regulate interstate commerce but not intrastate activities
affecting it.
11) express authority is created by:
a.words.
b.actions.
c.past dealings.
d.body language.
12) how can an offeree impliedly reject an offer?
a.by indicating that he will not accept it
b.by asking for more time to think
c.by making a counteroffer
d.by writing his nonacceptance
13) the fair debt collection practices act (fdcpa) does not bar debt collectors from
contacting third parties such as the debtors employer, relatives, or friends.
14) which of the following types of wills are completely written and signed in the
testators handwriting?
a.nuncupative wills
b.holographic wills
c.notarial wills
d.self-proved wills
15) a contract is said to be __________ that is, the legal part can be separated from the
illegal partif the contract consists of several promises or acts by one party, each of
which corresponds with an act or a promise by the other party.
a.implied-in-fact
b.voidable
c.unenforceable
d.divisible
16) _____ is defined as the desire to cause certain consequences or the substantial
certainty that those consequences will result from ones behavior.
a.intent
b.negligence
c.liability
d.battery
17) some states have a statute that allows finders of property to clear their title to the
property. these are called:
a.leasings.
b.statutes of limitations.
c.estray statutes.
d.exculpatory clauses.
18) the perfection of a security interest by filing a financing statement:
a.serves to protect the secured partys interest in the collateral against most creditors
who acquire a security interest in the same collateral after the filing.
b.is necessary to enable the secured party to enforce its security interest against the
debtor.
c.serves to give the public actual notice.
d.gives the secured party priority over all other parties who acquire an interest in the
collateral after the filing.
19) in the eventuality of nondelivery by the seller, which of the following would be
reduced from the amount of damages claimed from the seller?
a.the difference between the contract price of the goods and their market price at the
time he learns of the sellers breach
b.incidental damages
c.expenses saved
d.consequential damages
20) the transferor of which of the following instrument cannot disclaim transfer
warranties?
a.check
b.promissory note
c.draft
d.invoice
