An incidental beneficiary of a contract:
a. can sue to enforce the contract.
b. cannot sue to enforce the contract.
c. is a beneficiary specifically named in the contract.
d. is an assignee of the direct beneficiary.
A letter of credit:
a. cannot last for more than five years.
b. may be in either oral or written form.
c. can only be issued by a bank.
d. must be in writing and signed by the issuer.
Government grants create:
a. sole proprietorships.
b. corporations.
c. partnerships.
d. unincorporated associations.
__________ reserve auctions are those in which the goods must be sold regardless of
whether the auctioneer is satisfied with the levels of the bids.
a. With
b. Without
c. Unqualified
d. Unrestricted
Which is not a correct statement concerning the remedy of specific performance?
a. The subject matter of the contract must generally be unique.
b. An award of monetary damages would be an inadequate remedy.
c. The granting of specific performance is discretionary with the court.
d. It is generally available in all breach of contract cases.
Which of the following can satisfy the statute of frauds writing requirement?
a. bills of sale
b. Letters
c. Telegrams
d. all of the above
Jones issued a check to Smith in return for Smith’s promise to do work. Smith never did
the promised work, but offered to buy goods from Gomez by endorsing the check to
Gomez. Gomez had had no prior dealings with Jones or Smith, but accepted the check
in payment. Gomez:
a. cannot be a holder in due course.
b. is considered an assignee of Smith’s rights.
c. is a holder through a holder in due course.
d. is a holder in due course.
With regard to priority of claims in the payment of unsecured debts, which of the
following has priority over alimony and child support obligations?
a. costs and expenses of the administration of the bankruptcy case.
b. claims arising in the ordinary course of the debtor€s business after commencement
of the case
c. claims for wages, salaries or commissions earned within 180 days before the filing of
the petition
d. none of the above
Which method of payment gives the buyer credit by postponing the time for payment?
a. a promissory note
b. a check
c. a draft
d. a certified check
A right is defined as:
a. an obligation of law imposed to perform an act.
b. a legal capacity to require another party to perform an action.
c. any written promise.
d. none of the above.
Which of the following categories of individuals are exempt from the minimum wage
provisions of Fair Labor Standards Act (FLSA)?
a. executives
b. factory workers
c. full-time babysitters
d. housekeepers
Unless statutory requirements are met, a will is invalid and the testator:
a. is considered to have died testate.
b. is considered to have died intestate.
c. is subject to federal law.
d. has provided guidelines of distribution.
Most courts hold that when a customer takes an item from the shelf in a self-service
store, there is:
a. no sale.
b. a sale.
c. a contract to sell.
d. a conditional sale.
When a minor avoids a contract to purchase a car:
a. the parents of the minor are liable for the purchase price.
b. a relative who cosigned the contract is liable for the purchase price.
c. a friend to whom the minor loaned the car is liable for the purchase price.
d. the automobile insurance company is liable for the purchase price.
Apparent authority has the same effect as:
a. undisclosed authority.
b. actual authority.
c. partially disclosed authority.
d. none of the above.
A minor cannot avoid a contract to purchase a car if the:
a. car has been destroyed.
b. car has been damaged.
c. car is used for non-commercial purposes.
d. minor is able to return the car but does not do so.
Rent is automatically increased:
a. if the lessor makes expensive improvements to the property.
b. when the cost of living increases.
c. if the lease contains an escalation clause.
d. if the lessor’s taxes on the rented property are increased.
If no termination date is specified for an offer, the offer will remain open:
a. for one year.
b. for six months.
c. for a reasonable period of time.
d. until someone accepts the offer.
When an employee alleges religious discrimination because of an employee-observed
religious practice:
a. the employer must bypass seniority rules to accommodate the employee.
b. the employee must honor all bona fide religious practices.
c. the employer must make reasonable efforts to accommodate religious beliefs.
d. the employer must call in a substitute worker at additional cost.
What is a correct statement concerning burden of proof?
a. The insured has the burden of proving that the loss was a covered loss.
b. The insurer has the burden of proving that the loss was not covered.
c. Exceptions to coverage are liberally interpreted in favor of the insurer.
d. Exceptions to coverage are disregarded in life insurance matters.
If monetary damages would be an adequate remedy, then an action for specific
performance is not appropriate.
Title to abandoned property may be acquired by the first person who obtains possession
and control of it.
The judge, not the decedent, has the privilege of naming who is to administer the estate
of a person who has died with a will.
Personal property includes all things of value including real estate.
To determine whether the defendant is liable for negligence, a reasonable person
standard is employed.
In a sale on approval, the buyer’s approval must be demonstrated by express words.
The officers of a corporation are liable for errors of judgment that cause a loss to the
stockholders.
Malice is always a required element of defamation.