If the seller delivers nonconforming goods to the buyer after time for performance is
past, the buyer may:
a. accept the nonconforming goods.
b. reject all the goods
c. accept any part of the goods and reject the rest.
d. all of these.
McKay, aged fifty-five, was walking into a plaza when he was attacked by a young man
in his early twenties. The man hit McKay with metal knuckles, knocked him down, and
took his wallet containing $500. McKay was seriously injured. The young man,
identified as Frank Mix, was apprehended by police about twenty minutes later, legally
arrested, and charged with certain crimes. Mix is most likely to be charged with
a. assault and burglary.
b. assault and robbery.
c. burglary and robbery.
d. robbery and blackmail.
Reber hurriedly signed a form that he assumed was a request for a sample copy of a set
of encyclopedias, valued at $57.50. Later, it developed that he had actually signed an
order for the complete set, valued at $575. When the set was delivered, Reber refused to
accept it and claimed he was not bound by the agreement because of the mistake. Was
Reber legally bound by the agreement?
a. Yes; any written offer and acceptance makes a binding contract.
b. Yes; a mistake due to carelessness does not discharge the contract.
c. No; a sale of goods for $500 or over is not valid when the sale was made as the result
of a mutual mistake.
d. No; misrepresentation by a salesperson will make a contract voidable.
A blank indorsement
a. consists only of the signature of the indorser.
b. makes the instrument payable to the bearer.
c. allows an instrument to be transferred by delivery alone.
d. all of these.
A check made payable to “Cash” is
a. payable to the bearer.
b. nonnegotiable.
c. void.
d. an order instrument.
Whether the landlord or the tenant is liable for injuries to a guest would depend on
a. what the lease provides.
b. who had control of the premises where the injuries occurred.
c. both what the lease provides and who had control of the premises where the injuries
occurred.
d. neither what the lease provides nor who had control of the premises where the
injuries occurred.
Under the UCC, a merchant is a person who is
a. a regular dealer in the sale of goods involved in the sales contract.
b. especially knowledgeable about goods involved in the sales contract.
c. a commercial expert.
d. all of these.
The type of life insurance that provides the greatest coverage for the least amount of
money is
a. limited payment.
b. ordinary.
c. endowment.
d. term.
Tydings Auto Center advertised in the local newspaper that all stock was reduced 40
percent below regular price. This advertisement legally constituted a(n)
a. valid offer.
b. voidable offer.
c. invitation to make an offer.
d. binding contract.
If an applicant is denied credit without just cause, the
a. creditor may be fined.
b. creditor may be sued for damages.
c. creditor may be fined and the creditor may be sued for damages.
d. creditor may not be fined and the creditor may not be sued for damages.
Computer technology is protected by the law of
a. eminent domain.
b. copyright law.
c. trade secrets
d. both b and c.
The parties to a contract may end the contract through agreement, but this method does
not include
a. novation.
b. accord and satisfaction.
c. change in the law.
d. rescission.
Disclosing information you received about stock in a publicly held corporation to
another person who then makes a profit as a result of obtaining this information is
guilty of the crime of:
a. robbery.
b. identity theft.
c. embezzlement.
d. insider trading.
To be a holder in due course, a person must take an instrument
a. before its due date.
b. the day after its due date.
c. thirty days after its due date.
d. ten days after its due date.
If a defective title is discovered after property has been transferred by a warranty deed,
the responsibility lies with the
a. seller to the buyer.
b. buyer to the seller.
c. county clerk to both parties.
d. buyer to the seller and the county clerk to both parties.
A power of attorney is an example of
a. incidental authority.
b. implied authority.
c. statutory authority.
d. express authority.
The sale of securities is regulated by the
a. Federal Reserve Board.
b. Securities and Exchange Commission.
c. New York and American stock exchanges.
d. Federal Reserve Board and the New York and American stock exchanges.
Crenner, an agent of Alden, injured Bliss through her negligence. If Bliss obtains a
judgment against Crenner,
a. Crenner can recover from Alden.
b. Crenner cannot recover from Alden.
c. Crenner can recover from Alden only if it was proved that Alden was negligent.
d. none of these.
Darien, Inc. orally contracted to manufacture 1,500 square yards of carpet specially
designed for American Health’s offices. The agreed price was $40 per square yard.
When the carpeting was completed, American Health refused to accept it, claiming that
it was not bound by the oral contract. Is American Health correct?
A(n) ____________________ refers to a written document that can be used as a
substitute for money.
“I am not at all interested in your offer” is an example of a(n) ____________________.
The subject of contracts is governed by ____________________ law.
If the agent does not tell third parties that he or she is an agent, the principal is said to
be ____________________.
Ortiz agreed to sell Patton her house for $50,000, but they did not sign a contract of
sale. Later, Ortiz changed her mind and refused to go through with the sale. Is Ortiz
legally obligated to sell her house to Patton for $50,000?
A(n) ____________________ is a formal written document appointing an agent.
Voidable contracts are legal agreements that lack some requirement of the law.
What are the four elements that must exist to prove fraud?