1) adam decides to eat food despite knowing that it is adulterated and brags about it to
dee. later adam falls sick from infection. adam sues the supplier of the said food for
injury suffered by him. the defense which can be taken by the food supplier is:
a.contributory negligence.
b.assumption of risk.
c.product misuse.
d.comparative responsibility.
2) an agreement that unreasonably tends to interfere with family relationships will be
considered _____.
a.implied-in-fact
b.valid
c.exculpatory
d.illegal
3) which of the following is true of a persons capacity to be a principal or agent?
a.to be an agent, a person must have the ability to make his won contracts, independent
of the principal.
b.any duty that a principal has the capacity to perform can be delegated to an authorized
agent.
c.a principal must have the capacity to do the acts for which the agent has been
retained.
d.to be an agent, a person must have the capacity to perform non-delegable obligations
for the principal.
4) which of the following offers terminates earliest? assume that there is no time
limitation on the offer unless the offer says otherwise.
a.an offer for the sale of land.
b.an offer to purchase stock on a stock exchange.
c.an offer that says that it will stay open for one week.
d.an offer with a valid five-day option attached to it.
5) icarus company is considering making an offering of its common shares under the
securities exchange act of 1933 regulation a. what are the requirements it must meet?
6) hem sylvester oil company, owning a chain of wholly owned gas stations, refused to
purchase the tires that sans corporation sells in some of its stations, unless the tire
manufacturer agrees to purchase from the oil company, the petrochemicals used in the
tire manufacturing process. this agreement is an example of a(n):
a.exclusive dealing agreement.
b.joint venture agreement.
c.reciprocal dealing agreement.
d.formal written agreement.
7) melissa seles has a checking account at the union bank of new york. she goes to
home depot and agrees to buy a room heater priced at $200. she writes a check to pay
for it. the union bank of new york is the:
a.bearer.
b.drawer.
c.payee.
d.drawee.
8) _____ authority exists because it seems reasonable to a third party that a partner has
authority to do an act.
a.fixed
b.express
c.apparent
d.actual
9) kyle sent tara a letter offering to sell tara his car. tara left the letter on her desk, where
her roommate, maggie, saw it. after reading the letter, maggie wrote to kyle and stated
that she (maggie) wanted to accept kyles offer. which of the following is true?
a.kyle must sell maggie his car unless kyle is a merchant under the ucc.
b.there is no contract between kyle and maggie because kyle did not communicate the
offer to maggie.
c.kyle and tara have a contract for the purchase of kyles car.
d.maggies letter is a valid acceptance of kyles offer.
10) eastern company wants to make an offering of securities exempt from registration
under rule 504 of the securities act of 1933. which of the following is a requirement of
rule 504?
a.eastern may sell to no more than 35 unaccredited purchasers.
b.eastern must sell only to investors who are able to protect themselves by making
informed investment decisions.
c.eastern must be a nonpublic issuer under the securities exchange act.
d.eastern may not make any general solicitations of investors.
11) a firm offer differs from an option in that, a firm offer:
a.is a separate contract by itself.
b.is irrevocable for a certain period of time.
c.does not require a consideration in exchange for the offer.
d.is not covered under the ucc.
12) which of the following is true of implied authority?
a.it can contradict a principals express statements.
b.it exists even when the principal has limited the agents authority through clear
instructions.
c.it is usually derived from a grant of express authority by the principal.
d.it exists only if there is a relevant grant of express authority.
13) in the case of a product where the risks are open and obvious, many courts hold
that:
a.buyers must register a complaint with the seller.
b.strict liability must be applied.
c.the case will be covered under section 402a.
d.there is no duty to warn.