__________ refers to laws and precedent applicable to Internet transactions and
communications.
a. Cyberlaw
b. Cyborglaw
c. Silicalaw
d. Simlaw
Agreements that are illegal are:
a. enforceable if one party acted in good faith.
b. voidable by one of the parties.
c. void.
d. voidable by either party.
Which of the following is not protected under the privileges and immunities clause?
a. right to go to another state and make a contract
b. right to go to another state and vote in local elections
c. right to go to another state and purchase property
d. right to go to another state and open a business
Which of the following is an example of an improper payment?
a. A payment made after a letter of credit has expired.
b. A payment made in excess of the amount authorized by the letter of credit.
c. Both a. and b. are improper payments.
d. Neither a. nor b. are improper payments.
In most instances, the mere fact that a sale was made gives rise to a(n):
a. express warranty.
b. limited warranty.
c. implied warranty.
d. full warranty.
John owed Barney money. Barney called John’s home several times per day for five
weeks asking for repayment, with some of the calls coming after midnight. Barney
might be liable for:
a. defamation.
b. wrongful interference with a contract.
c. intentional infliction of emotional distress.
d. trespass.
Laws that prohibit mislabeling of food, speeding, and sale of alcohol to minors exist
primarily:
a. for protection of the person.
b. for protection of public health, safety, and morals.
c. for protection of property.
d. for protection of the state.
Rights theory:
a. is also known an entitlement theory.
b. states that everyone has a set of rights.
c. believes that it is the government’s responsibility to protect our rights.
d. all of the above.
Parol evidence may be admissible to:
a. contradict a complete written contract.
b. prove the modification or termination of a contract.
c. replace the statute of frauds.
d. create a contract.
The FTC rule, which provides that a notice provision must be included in all consumer
credit contracts, requires that the notice:
a. limit recovery under the contract to amounts paid by the debtor plus a reasonable
charge for incidental damages.
b. be in italic type.
c. be at least 20 points in size.
d. has the effect that no subsequent person can be a holder in due course of the
instrument.
Under the __________doctrine, the holder has taken so many instruments from its
transferor or is so closely connected with the transferor that any knowledge the
transferor has is deemed transferred to the holder, preventing holder in due course
status.
a. constructive partnership
b. close-connection
c. symbiotic relationship
d. collaborative relationship
A writing that satisfies the requirement of a writing under the statute of frauds could be
evidenced by:
a. a note.
b. a memorandum.
c. a contract.
d. all of the above.
The spread of limited liability corporation statutes resulted from:
a. a United States Supreme Court decision.
b. an Internal Revenue Service ruling.
c. a Wyoming Supreme Court decision.
d. a Securities and Exchange Commission ruling.
If a thief sells stolen property to a good-faith buyer, the buyer acquires title to the
property.
The duties of officers of a corporation are generally set forth in the articles of
incorporation.
Roberta, an educated person, purchased real estate from Maurice. Roberta did not read
entirely the contract that she signed. As a result, she did not notice the provision in the
contract about the interest imposed on the unpaid portion of the purchase price. She
refused to pay the interest specified in the contract. Maurice sued her. Could he
recover?
A partner cannot make a general assignment of firm property for the benefit of creditors
unless authorized by the other partners or unless they have abandoned the business.
To make an offer, the offeror must appear to intend to create a binding obligation.
The issuer of a letter of credit can revoke or modify the letter at any time without the
consent of the beneficiary, even if that right is not expressly reserved in the letter.
Agent’s may intentionally make themselves liable on contracts with third persons.
Corporate officers may avail themselves of all business opportunities that come to them
in an individual capacity regardless of whether or not the opportunity lies within their
field of duty.
Provisions of a contract will be considered separately and not as a whole.