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1) which of the following is used by sellers to eliminate any kind of liability that may
be claimed by an injured buyer?
a.warranty
b.disclaimer
c.warning
d.advertisement
2) if viola owes tina money, tina may frame a document for the amount of the debt,
naming viola as drawee and herself or her bank as payee, and send the document to
violas bank for payment. this document is a:
a.promissory note.
b.certificate of deposit.
c.draft.
d.bond.
3) for which of the following contracts, is a partys subjective dissatisfaction sufficient
to excuse his performance under a personal satisfaction clause in a contract?
a.a contract to construct an intercontinental ballistic missile
b.a contract to paint someones portrait
c.a contract to build a steam boiler
d.a contract to rebuild an automobile engine
4) under which of the following circumstances will rita be held liable for the crime of
her partner?
a.the partners criminal tendencies were unknown to rita.
b.the partners crime was outside the scope of the partnerships business.
c.the states criminal code does not view partnerships as legal entities.
d.the partners crime was authorized by rita.
5) volatile organic compounds (vocs) combine with _____ under the influence of
sunlight to become ozonealso known as smog.
a.nitrogen oxides
b.carbon monoxide
c.chlorofluorocarbons
d.sulfur oxides
6) emmy, shane, and rusty are partners of the firm esha associates. rusty nonwrongfully
dissociates himself from the partnership. under these circumstances, rusty will not be
liable to the creditors for the liabilities incurred while he was partner only:
a.if all the partners consent to it.
b.if there is an agreement.
c.if there is a court order.
d.by novation.
7) northern company is a small issuer who wishes to solicit investors to buy its
securities during the pre-filing period. as the advertising budget of the company is not
large, northern has decided to advertise during the pre-filing period by using a website.
this solicitation of shares is:
a.in violation of the prohibition of solicitation act.
b.permitted as the internet has strong potential for attracting investors.
c.in violation of rule 505 and rule 506 of regulation d.
d. allowed provided sec gives written permission.
8) the common law placed the risk of loss on _____ at the time of the loss.
a.the party which was the seller
b.the party which was the buyer
c.the party that had technical title
d.the party which was the carrier
9) the sec does not have the power to:
a.direct a defendant to stop violating the securities laws.
b.impose fines for violation of securities laws.
c.desist a defendant from future violations of securities laws.
d.issue injunctions against alleged violators of securities laws.
10) chloe took her watch to a jeweler to have it repaired. while the jeweler had
possession of the watch, a thief broke into the shop. the thief stole chloes watch and
other items of jewelry. which of the following is true?
a.because this was a bailment for the benefit of the jeweler, the jeweler is strictly liable
to chloe for the value of the watch.
b.this was a mutual benefit bailment, meaning that the jeweler is liable to chloe if he did
not use reasonable care to protect the watch.
c.no bailment existed between chloe and the jeweler.
d.because this was a bailment for the benefit of chloe, the jeweler cannot be held liable
to her.
11) today, most artisans liens:
a.have been repealed by statute.
b.are handled by article 7 of the ucc.
c.require that the artisan have possession of the debtors property.
d.apply whether or not the owner consented to the work performed by the artisan.
12) which of the following is order paper?
a.a check made out to the order of cash.
b.a note payable to the order of x and indorsed in blank by x.
c.a note made out to ys order and indorsed pay to z, y.
d.a receipt for a payment made by z.
