The General Agreement on Tariffs and Trade (GATT):
a. is a multilateral treaty
b. is subscribed to by the United States
c. has as its goal the liberalization of world trade
d. all of the above
A tenant in possession has control of the property and is liable when his or her failure to
use due care under the circumstances causes harm to:
a. invitees.
b. licensees.
c. trespassers.
d. both a. and b.
Under the 2005 reforms:
a. it is easier for creditors to show they did not receive a voidable preference.
b. nonconsumer debt payments of less than $7,500 are not subject to the voidable
preference standards .
c. both a. and b.
d. none of the above.
Which of the following is correct concerning suretyship and guaranty?
a. A surety is always liable from the moment the principal is in default.
b. A guarantor is always liable from the moment the principal is in default
c. Both a. and b.
d. None of the above.
Unemployment compensation benefits probably will be denied:
a. when an employee’s theft of property results in termination.
b. to full-time students.
c. when an employee quits a job without cause.
d. all of the above.
Which of the following statements describes a check?
a. The drawer is always a bank.
b. The maker is always a bank.
c. A check is generally payable on demand.
d. A check is a particular kind of note.
Which of the following statements is not true of common stock?
a. It is ordinary stock that has no preferences.
b. It entitles the holder to share in corporate profits in the form of dividends.
c. It entitles the holder to participate in the distribution of capital upon dissolution.
d. It is ordinarily nonvoting.
The commercially reasonable charges incurred by a seller in caring for goods after the
buyer’s breach are recoverable by the seller in an action for damages as:
a. contract damages.
b. punitive damages.
c. additional damages.
d. incidental damages.
A liquidation of damages clause in a consumer contract is enforceable if it:
a. is not in excess of twice the provable damages.
b. is agreed to by both parties to the contract.
c. reasonably attempts to estimate the actual harm caused by a breach.
d. is a reasonable amount designed to punish the breaching party.
Without meaning to, Alice carelessly strikes Mary. Mary may be able to sue Alice for:
a. an intentional tort.
b. negligence.
c. strict liability
d. absolute liability.
Before an agency can begin rulemaking proceedings it must be given jurisdiction:
a. by congressional enactment in the form of a statute.
b. granted by an executive order of the President of the United States.
c. from the United States Supreme Court.
d. none of the above.
If a contract for the sale of goods does not state the price to be paid, the:
a. contract is void because it is too indefinite to be enforced.
b. buyer is required to pay a reasonable price for the goods.
c. buyer can pay whatever price the buyer in good faith believes is a proper price.
d. seller can rightfully charge whatever price the seller in good faith believes is a proper
price.
Will the law enforce every promise?
a. Yes, in all cases.
b. Yes, with or without consideration.
c. Generally yes, if consideration is given for the promise.
d. Yes, but only if there is no consideration.
Under Article 2 of the UCC, in a situation where it is clear that the parties intended a
contract, but a term in the acceptance conflicts with a term in the offer:
a. there is no contract.
b. the acceptance is viewed entirely as a counteroffer.
c. there is a contract for the terms of the offer and acceptance that are consistent, but the
conflicting terms cancel out.
d. there is a contract, and the conflicting term in the offer is part of the contract.
A bailee’s interest in the bailed property can be characterized as:
a. ownership.
b. a fractional proprietary interest.
c. possession.
d. constructive ownership.
The death or disability of a party to a contract discharges the contract when:
a. personal services requiring peculiar skill are involved.
b. the payment of money is involved.
c. a house is to be painted.
d. all of the above.
Contract formation in cyberspace is the result of a desire for businesses to use a
common language to form contracts.
All courts hold that when an agreement requires satisfaction of the other party regarding
the acceptance of an act, a reasonable person standard is used.
Fraud as to the nature or essential terms of an instrument is a limited defense not
available against a holder in due course.
Uniform State Law generally is not applicable to business.
In a contract for the sale of goods, any modification made by the parties to the contract
must be supported by consideration to be binding.
While most states have adopted limited liability company statutes, few states have
created statutes allowing the formation of limited liability partnerships.
A discharge releases the debtor from the unpaid balance of most debts including taxes
and tax penalties.