When the contract is executory and a minor misrepresent his or her age, several states
will:
a. permit the minor to disaffirm an agreement and recover any consideration paid.
b. not permit the minor to disaffirm the agreement.
c. allow the adult to recover for damages resulting from the minor’s misrepresentation.
d. hold the minor liable in tort for fraud.
An indorsement
a. usually appears on the back of an instrument.
b. must be handwritten.
c. transfers only possession of negotiable instruments.
d. none of these.
A delegation is
a. a transfer of contractual rights to a third party.
b. a gift transferred to a third party in error.
c. a transfer of duties by operation of law.
d. none of the these.
A person injured on the job can claim benefits under the
a. Civil Rights Act.
b. workers’ compensation laws.
c. Fair Labor Standards Act.
d. Equal Pay Act.
The relief granted in a civil action is
a. punishment.
b. money damages.
c. having a person arrested.
d. bringing an action against society.
To insure against the loss of a camera caused by leaving it on a bus, one would purchase
a. an all-risk policy.
b. a burglary policy.
c. an inland marine policy.
d. none of these.
A blank indorsement can be converted into a
a. restrictive indorsement.
b. special indorsement.
c. qualified indorsement.
d. negotiable instrument.
One who transfers rights under a contract is
a. the assignor.
b. the assignee.
c. the obligor.
d. none of these.
A contract right that may not be assigned is the right to
a. collect money.
b. an attorney’s services.
c. the damages awarded for a breach of contract.
d. receive standard merchandise.
The mandate of the federal Food and Drug Administration is
a. to set safety standards for many products.
b. to require testing of new drugs.
c. to examine advertising and labeling of products.
d. all of these.
For an instrument to be negotiable it must
a. contain the word order or bearer.
b. be written.
c. contain the date the instrument was prepared.
d. contain the word order or bearer and be written.
A hotelkeeper’s lien is placed on a guest’s
a. bank account.
b. baggage.
c. real estate.
d. automobile.
Ronco, a retailer of toys, rejected a shipment of dolls from Jasper, a wholesaler, because
they were not the original ones that were ordered. Suppose that the original contract
price of each doll was $20.00 and that the price from the other seller Ronco finally
purchased the dolls from was $22.00 each. If Ronco had originally ordered 2,500 dolls,
what damages would he (Ronco) be entitled to recover from Jasper if he purchased the
same number of dolls from the other seller?
a. $5,000
b. $50,000
c. $55,000
d. An amount offered by Jasper
A depositor’s personal check that the bank guarantees to pay is a
a. postdated check.
b. cashier’s check.
c. certified check.
d. traveler’s check.
If the card issuer is properly notified of the loss of a credit card, the cardholder’s
liability is limited to
a. $25.
b. $50.
c. $100.
d. $250.
Most life insurance policies become effective when ____________________.
A promise to refrain from doing something that the law requires is consideration.
It is legal for a person to turn a blank indorsement into a special endorsement.
A(n) ____________________ is an agreement by which an owner of real property rents
that property to another party.
The signature “David Hopper” on the back of a check is a blank indorsement.
The words “value received” inserted on the face of a promissory note mean that
____________________ was given for the instrument.
Personal defenses are not good against holders in due course.
Once a consumer enters into a sales contract, he or she may not cancel it for any reason.