Which of the following is a defense to an action against an agent for breach of the
implied warranty of authority?
a. The agent acted in good faith.
b. The agent misunderstood the scope of authority.
c. The third person knew that the agent was acting beyond the authority given by the
principal.
d. All of the above are defenses.
Federal regulation of the sale of securities is based on the:
a. Securities Act of 1933 and the Securities Exchange Act of 1934.
b. Securities Act of 1933 and the Federal Trade Act of 1936.
c. Federal Trade Act of 1936 and the Blue Sky Act of 1933.
d. Fair Stock Act of 1932 and the Investment Securities Act of 1934.
Personal property that is attached to the earth or placed in a building in such a way or
under such circumstances that it is deemed part of the real property is called a(n):
a. asset.
b. estate.
c. easement.
d. fixture.
The rule that doing or promising to do what one is already legally bound to do is not
consideration applies to a part payment made in satisfaction of a(n) __________ debt.
a. unliquidated
b. superfluous
c. non-superfluous
d. liquidated
The concept of equal protection of the law:
a. applies to both state and federal governments.
b. prohibits any classifications whatsoever.
c. applies only to conduct by private parties.
d. does not permit reasonable classifications.
When there are two perfected secured creditors in the same collateral:
a. priority goes to the creditor who perfected first.
b. priority goes to the creditor who is owed the greatest amount of money.
c. each perfected secured creditor has a 50% interest in the collateral.
d. Both perfected secured creditors are treated like unsecured creditors in regards to the
collateral.
In the case of a breach of warranties, the buyer:
a. should not notify the seller.
b. is required to notify the seller.
c. does not have the option to resell the goods.
d. is not able to recover consequential damages.
When a buyer demonstrates in some way that the goods conform to the contract, the
buyer has made a(n):
a. acceptance of the goods.
b. assignment of the goods.
c. substitution of the goods.
d. avoidance of the contract.
An accountant guilty of malpractice can be sued:
a. for breach of contract only.
b. for negligence only.
c. for breach of contract or for tort liability.
d. in federal court only if the suit is brought by a third person.
The standard for commercial impracticability is:
a. hypothetical.
b. conjectural.
c. objective.
d. subjective.
The standard form of check does not specify when it is payable, and it is therefore
automatically payable on demand.
Managers of an LLC have the same fiduciary duties to the entity as corporate officers
have to a corporation.
A person has apparent authority as an agent when the principal€s words or conduct
leads a third person to reasonably believe that the person has that authority and the third
person relies on that appearance.
Licensing involves the transfer of title of goods to a distributor who bears the financial
and commercial risks for the subsequent sale of the goods.
Under UCC Article 2, specific performance is a remedy available only to buyers in
those circumstances in which the goods are specially manufactured, unique, or rare.
An authorized agent signing an instrument will not be liable on the instrument if the
agent discloses on the paper either the identity of the principal or the fact that the agent
has signed in a representative capacity.
When a sales contract is broken by the buyer, the seller has only the remedies of lien
and resale available.
A court can dismiss an individual debtor€s petition if the debtor does not satisfy the
means test.
A buyer may revoke acceptance because of a seller€s failure to complete promised
repairs.