Which of the following statements holds true of the FTC’s Telemarketing Sales Rules?
A. Calling times are restricted to anytime during business days.
B. A telemarketer is allowed to call a consumer without requiring the consumer’s
consent.
C. Telemarketers must mention the total cost of the products or services offered and
that a sale is final or nonrefundable.
D. Telemarketers are excused from disclosing the name of the seller, and what they are
selling before they make their pitch.
To which type of transaction does the negative option rule apply?
A. Subscription to CD or DVD clubs
B. Buying used cars
C. Subscription to telephone services
D. Buying goods via telephone or Internet
Jo is duly notified that her mortgage with Fund All Savings has been transferred to Big
Loan Co. and that she should henceforth pay Big Loan Co. Jo continues to pay Fund All
Savings and Big Loan Co. sues Jo for nonpayment. Which of the following is most
likely to be the court’s judgment?
A. Jo is not liable to Big Loan Co. since she has already paid to Fund All Savings.
B. Jo is liable to Fund All Savings and to Big Loan Co. since her mortgage has been
transferred.
C. Jo is liable to Fund All Savings since her mortgage was processed by them.
D. Jo is liable to Big Loan Co. since she received a notice from them about the
assignment.
The Titanic Partnership’s loan from Big Bank is structured so that payments on the loan
are made out of profits and the amounts of the payments vary according to profitability.
What conclusions may one draw from this arrangement?
A. This is evidence of a partnership between Titanic and Big Bank; additional evidence
may overcome this assumption.
B. This is conclusive evidence of a partnership between Titanic and Big Bank.
C. This may be evidence of a partnership between Titanic and Big Bank.
D. This is not evidence of a partnership between Titanic and Big Bank.
_____ involves the false making or changing of a writing (without proper authorization)
with the intent to defraud.
A. Embezzlement
B. Defrauding
C. Larceny
D. Forgery
In states that have not adopted the Uniform Probate Code, the person named in a will to
carry out the terms in it is called a(n):
A. administrator or administratrix.
B. executor or executrix.
C. settler.
D. testator or testatrix.
Eloise made a contract in January that gave her until the end of the year to complete her
work on a new computer system for Dexter. In mid-July, Eloise is working on the
computer system. The contract in July is:
A. executory.
B. unenforceable.
C. being expressed.
D. executed.
Which of the following is true of satisfactory performance?
A. It is either an express or implied condition of every contract.
B. It exists when parties fully accomplish every term, condition, and promise to which
they agreed.
C. It exists when a party executes all the terms, except minor details that do not affect
the contract’s real intent.
D. It terminates an agreement, freeing the parties of any further obligation or liability.
An examination of the financial records of an organization to determine whether the
records are a fair representation of the actual financial health of the organization is
known as a(n):
A. audit.
B. appraisal.
C. review.
D. dissolution.
Indorsers are obligated to make the payment only when:
A. the instrument has not been properly presented to the drawee or party obliged to pay
the instrument.
B. the instrument is not dishonored.
C. the notice of dishonor is not given to the secondary party within the time and
manner mentioned.
D. the instrument has been properly presented to the drawee or party obliged to pay the
instrument, and payment must be demanded.
Henry orally contracts with Faith to write special accounting software that usually takes
three years to complete. What is the legal status of this agreement?
A. It is enforceable because Henry cannot complete writing the software within a year.
B. It is unenforceable since the contract is not written and signed.
C. It is enforceable, but only to the extent of work Henry completes within the first
year of the contract.
D. It is unenforceable since the contract involves a tangible work product.
In a tenancy in common the tenants:
A. take title at the same time.
B. cannot transfer their share to their heirs.
C. have equal interests in the property.
D. have equal right to possess the property.
The agent’s duty of loyalty means that the agent cannot act:
A. for two principals.
B. for two principals in the same transaction.
C. for more than one year for the same principal.
D. for an undisclosed principal.
A _____ is that which deliberately misstates the qualifications of a borrower to push a
loan through the approval process.
A. NINJA loan
B. liar loan
C. subprime loan
D. home equity loan
Which of the following is an element of negligence that occurs if the alleged tortfeasor
has not met the appropriate standard of care?
A. Legal duty.
B. Actual harm.
C. Proximate cause.
D. Breach of Duty.
_____ occurs when false statements or actions, or a combination thereof, are made by
one party in a way that causes another party to rely on those misrepresentations and
then suffers an injury/loss as a result.
A. Disparagement
B. Invasion of privacy
C. Abuse of process
D. Fraud
Under chapter 13 of the Bankruptcy Code what happens if the debtor submits the
repayment plan to the court and the court has yet to hold its hearing?
A. The debtor is not required to start payments within the stipulated period of thirty
days.
B. The debtor pays the trustee.
C. The debtor makes payments individually to the creditors.
D. The debts of the debtor are discharged.
The _____ was established by the Department of the Treasury to support the efforts of
homeowners who, though in default, wished to continue to make payments on their
mortgages.
A. Consumer Protection Act
B. Dodd-Frank Act
C. Troubled Asset Relief Program
D. Home
An employment relationship that would have been considered at-will, had the employer
not said or done something that implied otherwise, is known as:
A. a collective bargaining agreement.
B. an implied contract.
C. an explicit contract.
D. good faith and fair dealing.
Cristina receives from the Seventh National Bank a new credit card that does not
provide a signature line or any other means for a retailer to verify that the user of the
card is the authorized user. The next day, Cristina’s card is stolen. As soon as she
discovers the theft, she calls Seventh National to report the loss. Already, $620 worth of
unauthorized charges have been made on her card. Cristina:
A. will have to pay for the entire $620 of unauthorized charges.
B. will have to pay for $50 of the unauthorized charges.
C. will not have to pay any amount of the unauthorized charges.
D. will have to pay for 50% of the unauthorized charges.
Mary contracts to lease an automobile from Zippo Sales with payments of $300 per
month for a year and a final balloon payment of $1,200. This final payment is:
A. lawful since it satisfies the requirements of the Consumer Leasing Act.
B. unlawful since it exceeds $1,000.
C. unlawful as it exceeds three times the average monthly payment.
D. lawful since both parties have contracted on mutual agreement.
Bill employs real estate agent Charles to sell his house. The house is destroyed by fire.
What is the status of the agency relationship?
A. The relationship is applied to the next property Bill sells.
B. It requires Bill to compensate Charles for what he would have received for selling
the house.
C. The relationship is terminated.
D. It depends on what is considered reasonable.
_____ is the implied or expressed acceptance of less than what has been billed to the
debtor.
A. Accord
B. Bankruptcy
C. Satisfaction
D. Consideration
The _____ vote/s the Secretary General into office.
A. Security Council
B. General assembly
C. International Court of Justice
D. Security Council and the General Assembly
Agent Smith buys and sells used computer equipment on behalf of New Life
Technologies, Inc. In the absence of an agreement, Smith may delegate which of the
following tasks, if any, to Elizabeth?
A. The authority to buy and sell used computer equipment.
B. Keeping a record of transactions Smith undertakes on behalf of New Life.
C. The authority to estimate the fair market value of used computer equipment.
D. The authority to fix the selling price of used computer equipment.
When goods are sent f.o.b. shipment, the title and risk of loss:
A. pass to the carrier at the point of origin.
B. pass to the buyer at the point of origin.
C. pass to the buyer at the destination.
D. pass to the buyer when he/she accepts the goods.
The built-in dishwasher in Fernando’s apartment is a(n):
A. courtesy.
B. personal property.
C. trade fixture.
D. fixture.
Under the 2005 Bankruptcy Act, debtors require to fulfil which of the following
conditions file for Chapter 7 bankruptcy?
A. They must provide a federal income tax return for the most recent tax year.
B. Their income should be more than the state median income.
C. They should be involved in a fishing or farming business.
D. They should be commodity brokers or stock brokers.
A self-operating postponement of collection proceedings against the debtor, which goes
into effect the moment the order for relief occurs is a(n):
A. federal exemption.
B. involuntary petition.
C. automatic stay.
D. means test.
