Which of the following statements is true about the term subjective impossibility?
a. The defense of subjective impossibility is accepted by the courts in only a few
situations.
b. Hardships such as strikes, riots, and acts of God are automatically included in the
term subjective impossibility.
c. Physical impossibility is the same as subjective impossibility.
d. All of these.
Wilson went to the Costal Camera Co. to purchase a digital camera. Not knowing much
about digital, she worked with a salesperson she thought could help her. After looking
and testing several cameras, she narrowed her choice down to a particular camera and
asked the salesperson: “Is this camera complicated to use?” The salesperson replied:
“Anyone can work this camera, even my three year old daughter.” Relying on this
statement, Wilson purchased the camera she had selected. The salesperson’s statement is
a(n)
a. express warranty.
b. implied warranty.
c. absolute warranty.
d. seller’s puff.
A limited partnership is similar to a corporation in that both
a. can be dissolved by agreement among the owners.
b. partners and stockholders can participate in management.
c. provide protection from personal liability for business debts.
d. were permitted at common law.
The parties who select arbitration as a way to settle their dispute agree to
a. be bound by the decision of the arbitrator and not to challenge the award in court.
b. mediation if either one of the parties is not successful at arbitration.
c. challenge the arbitrator’s award.
d. discovery procedures if the arbitrator cannot reach a decision.
Changing the amount of an instrument is
a. forgery.
b. material alteration.
c. fraud in the execution.
d. unauthorized completion.
Johnson makes out a promissory note payable to Edwards. This first transfer of the note
to Edwards is called
a. an issue.
b. an indorsement.
c. an illegal transfer.
d. either an issue or an indorsement.
Higgins willfully and maliciously set fire to his neighbor’s garage. The branch of law
that would govern Higgins’ action is
a. moral law.
b. criminal law.
c. the law of equity.
d. administrative law.
The only one of the following industries that has not been deregulated with regard to
rates and routes is
a. airlines.
b. railroads.
c. motor carriers.
d. television stations.
Whether a contract is unilateral or bilateral depends on the
a. offeree.
b. performance required of the offeror.
c. type of acceptance required of the offeree by the offeror.
d. type of acceptance required of the offeror by the offeree.
Lemon laws cover
a. all defects.
b. only those defects that affect the safety, use, and value of the car.
c. only defects resulting from the negligence of the dealer.
d. none of these.
Under the provisions of the UCC, in order to hold the drawer liable, an uncertified
check must be presented for payment within a maximum of
a. seven days.
b. twenty days.
c. thirty days.
d. sixty days.
Benson orally promised to give his nineteen-year-old son a car as a birthday gift.
Benson was not legally bound to his promise because
a. the promise was made orally.
b. a promise to make a gift is unenforceable.
c. the promise was a past consideration.
d. an executed gift requires consideration.
Government regulation of business can be achieved through
a. income taxes.
b. sales taxes.
c. payroll taxes.
d. all of these.
If a mentally ill person is determined by a court to be insane, a subsequent agreement
by this insane person to purchase a TV set from the TV Home Center would be
a. enforceable.
b. voidable.
c. illegal.
d. void.
A lease may be terminated before the end of the lease term if
a. the tenant moves to take a job in a different city.
b. the tenant dies
c. the landlord dies.
d. the tenant enters a nursing home.
Long executed the following legal document and gave it to George Northman: “In
consideration for the $300 I owe to George Northman, I hereby transfer to George
Northman a claim I have against Hall in the amount of $300. Thomas Long, March 21,
1990.” Hall was properly notified of the assignment by Northman. If Hall does not pay
the $300 when it is due, the debt would then be
a. discharged.
b. collectible from Northman.
c. collectible from Long.
d. excused after two years had elapsed.
A building operated as a cooperative is owned by
a. a partnership.
b. a corporation.
c. the unit owners.
d. none of these.
Two or more companies joining together to work on a project constitute a
a. limited partnership.
b. joint venture.
c. nontrading partnership.
d. general partnership.
If the seller breaches the contract prior to delivery of the goods, the buyer may cancel
the contract and
a. sue for damages.
b. cover.
c. exercise the right of specific performance or replevin.
d. select one or all of these remedies.
On January 5, the Rolland Corporation sent a letter offering to sell a new line of
above-ground pools to Tibbets, the owner of Tibbets Leisure Center, at a considerably
reduced introductory price. The letter stated that the offer would be good until January
20. When Tibbets received the letter on January 10, he immediately sent a telegram of
acceptance. However, because an employee of the telegraph company lost the telegram,
the telegram never reached the Rolland Corporation’s office. Was a contract formed
between the Rolland Corporation and the Tibbets Leisure Center?
a. Yes, on January 10; Tibbets used a commercially reasonable means of acceptance.
b. Yes, on January 20; Tibbets used a commercially reasonable means of acceptance.
c. No. Rolland Corporation had specified the method by which acceptance must be
made.
d. No, a “firm offer” was not valid in this case.
An oral sales contract for goods costing $500 will be enforced
a. if the buyer pays for the goods in full.
b. if the goods were specially manufactured for the buyer.
c. if the buyer receives and accepts all of the goods.
d. in all of these situations.
For federal income tax purposes, partnerships
a. file an informational return only.
b. file and pay income taxes.
c. pay one third of the income taxes if there are two partners.
d. pay one fourth of the income taxes if there are four partners.
An offeror may revoke an offer at any time, even if the offeree gives the offeror
consideration to hold the offer open.
The Federal Trade Commission has enacted a federal regulation that prohibits the
holder in due course concept from being used against consumers.
In a testamentary trust, property is placed in trust during the grantor’s lifetime.
A gas station is an example of ____________________ franchising.
The U.S. system of government is based on a concept known as separation of powers.
Sunday laws, while legal, are gradually being repealed or ignored.