1) checks and drafts are:
a.documents required to evidence the shipment of goods.
b.documents which detail the transaction between a seller and a buyer.
c.orders to another person to pay money to a third person.
d.promises to pay someone money.
2) which of the following is a common way in which a buyer may breach a contract?
a.by wrongfully returning goods
b.by agreeing to an extension of the credit period
c.by delivering a faulty product
d.by refusing to accept goods which are obviously damaged
3) which of the following is an implied authority of a partner winding up the business
of an accounting partnership?
a.entering into new contracts made after the dissolution
b.disposing of the partnerships excess supplies
c.making a contract to audit the financial records of a new client
d.borrowing money in the name of the partnership
4) “the challenged law must be necessary to the fulfillment of a compelling government
purpose.” this is laid down for the:
a.rational basis test.
b.intermediate scrutiny test.
c.full strict scrutiny test.
d.still-controlling test.
5) carlos has written a novel. he wants to protect his intellectual property with a
copyright. what must he do first?
a.he must apply to the u.s. copyright office for a copyright.
b.he must produce a certificate that he is the original author.
c.he must put the novel in some tangible form, like a hard copy or a compact disc.
d.he must certify that his story is original and novel.
6) the 1967 age discrimination in employment ac (adea) prohibits age-based
employment discrimination against employees who are at least _____ years of age.
a.30
b.35
c.40
d.45
7) the rationale for the fictitious payee rule is that:
a.the bank should bear the immediate loss of the forged instruments.
b.the holder in due course should bear the immediate loss of the forged instruments.
c.the employer of the wrongdoer should bear the immediate loss of forged instruments.
d.the wrongdoer should bear the immediate loss of the forged instruments.
8) with regard to a prior perfected security interest in goods for which a financing
statement has been filed, which of the following parties is most likely to have a superior
interest in the same collateral?
a.a buyer in the ordinary course of business who purchased the goods from a merchant.
b.a subsequent buyer of consumer goods who purchased the goods from another
customer.
c.the trustee in bankruptcy of the debtor.
d.lien creditors of the debtor.
9) marjorie leaves her bag in the checkroom of a hotel which has an attendant. when she
returns a few hours later, she finds her bag missing, the attendant on another duty, and a
new sign outside the checkroom stating goods left at owners risk. which of the
following is true if marjorie tries to recover damages from the hotel?
a.she will be unsuccessful because there was no bailment.
b.she will be unsuccessful because the sign clearly says that goods are not the hotels
responsibility.
c.she will be successful because the attendant did not inform her of the policy earlier.
d.she will be successful because guests can claim any damages from the hotel they are
staying in.
10) on april 2, 1987, ritz corp. purchased a warehouse that it insured for $500,000. the
policy contained a 75% coinsurance clause. on april 25, 1988, a fire caused $900,000
damage to the warehouse. the fair market value of the warehouse was $800,000 on april
2, 1987, and $1 million on april 25, 1988. ritz is entitled to receive insurance proceeds
of, at most,
a.$375,000
b.$500,000
c.$600,000
d.$750,000
11) which of the following acts is most likely to violate the telemarketing sales rule
(tsr)?
a.calling a consumers residence at 9:30 pm to inform about an exciting prize promotion.
b.soliciting sales through the mailing of a catalog and then receiving customers orders
by telephone.
c.making telephone calls to a customer to get an appointment for a face-to-face sales
presentation.
d.making telephone calls of solicitation to a consumer but completing the transaction in
a face-to-face meeting.
12) which of the following was an unintentional effect of the 1970 clean air act?
a.decrease in the output of electricity generated
b.development of clean-fueled vehicles
c.sudden increase in the prices of clean fuels
d.long range transport of some pollutants
13) under the model business corporation act (mbca), shareholders have a qualified but
not absolute right to inspect:
a.the articles of incorporation and bylaws.
b.an alphabetical listing of the shareholders entitled to notice of a meeting.
c.the number of shares owned by the shareholders.
d.shareholder minutes more than three years old.
14) a mining partners interest is:
a.nontransferable.
b.freely transferable.
c.partially transferable.
d.dissolved and later, transferred.