Which statement is correct regarding the transfer of contractual rights?
a. The assignor acquires only such rights as the assignee has under the contract.
b. The assignee acquires only such rights as the assignor has under the contract.
c. The assignee acquires rights greater than the assignor has under the contract.
d. The assignor acquires rights greater than the assignee has under the contract.
If a bank dishonors a check for no good reason, the customer can collect from the bank
a. only the service fee charged by the bank.
b. all damages the customer suffers.
c. any damages that result from injury to the customer’s reputation resulting from a bad
credit rating or from being arrested and prosecuted.
d. all service fees charged by the bank and all damages the customer suffers.
The only type of monopoly that is prohibited by law is
a. one that raises prices.
b. one that arises from unlawful acts.
c. one that causes business failure.
d. none of these.
Beaty contracted to install vinyl siding on O’Grady’s house for $7,500 during the first
two weeks of August. When Beaty arrived on August 1 to install the siding, O’Grady
informed him that the job would have to be postponed indefinitely. Beaty’s obligation to
perform the contract was discharged by
a. tender of performance.
b. substantial performance.
c. agreement.
d. rescission.
Medicare pays for
a. hospital expenses.
b. custodial care.
c. dental care.
d. routine physical exams.
The amendment to the U.S. Constitution that protects the individual’s right to privacy
by prohibiting unreasonable search and seizure by government is the
a. First Amendment.
b. Fifth Amendment.
c. Fourth Amendment.
d. Sixth Amendment.
In a unilateral contract, acceptance is effective when the
a. offeree communicates the acceptance to the offeror.
b. offeree performs the act requested.
c. offeror performs the act requested.
d. offeree promises to perform the act requested.
Of the following, the crime that would probably be considered a misdemeanor is
a. setting fire to a neighbor’s house.
b. stealing a pack of diet soda
c. robbing a store at gunpoint.
d. breaking into a warehouse to steal merchandise.
An agent working for two principals at the same time violates the duty of
a. obedience.
b. loyalty.
c. accurate accounting.
d. reasonable skill.
The powers of a corporation are found in
a. the corporation’s bylaws.
b. the state statutes.
c. the corporation’s charter.
d. all of these.
The purchase of real property may be financed by
a. assuming an existing mortgage.
b. obtaining a new mortgage from a financial institution.
c. obtaining a mortgage from the seller.
d. all of these.
A prospective juror may be dismissed arbitrarily without any reason being given if an
attorney for one of the parties in a lawsuit exercises a
a. challenge for cause.
b. move for a mistrial.
c. default judgment.
d. peremptory challenge.
Secondary parties are obligated to pay the holder of an instrument only if
a. the holder of the instrument presents the instrument for payment to the primary party.
b. the primary party dishonors the instrument.
c. the holder of the instrument gives notice of dishonor to the secondary party.
d. all of these.
Promises to make charitable subscriptions
a. are exempted from the necessity of consideration.
b. are not legally enforceable.
c. are based on promissory estoppel.
d. may not be valid unless large sums of money are involved.
Quinby ordered a snowplow, specifying that it must be suitable for heavy-duty use on
country roads. Quinby found the snowplow not at all suitable for this use. The seller of
the plow may be held liable for breach of warranty of
a. description.
b. quality.
c. trade name.
d. fitness for a particular purpose.
Equitable remedies are usually allowed by courts
a. when money damages will not adequately compensate the injured party for his or her
loss.
b. only when fraud or duress is involved.
c. in place of nominal damages.
d. all of these.
Certain acts have been declared crimes by
a. a jury.
b. a judge.
c. the district attorney.
d. the U.S. Congress and state legislatures.
Blair, an agent of Curtis, smashed the windows of Arlen’s car on purpose.
a. Only Blair is liable to Arlen.
b. Only Curtis is liable to Arlen.
c. Both Blair and Curtis are liable to Arlen.
d. Neither Blair nor Curtis is liable.
The rights and duties of the landlord and the tenant are known as
a. covenants.
b. leaseholds.
c. lessees.
d. escrow.
Katz received an unordered credit card from the Rand Department Store. The card was
stolen by Cooper, who charged purchases of $300 at the store. Is Katz liable for these
purchase?
Price fixing, loss leaders, and price misrepresentation are illegal because they eliminate
____________________.
A depositor who writes a bad check has committed a criminal act.
____________________ before notification of an assignment releases the obligor from
any obligation to the assignee.
What is a major feature of the proposed concept of virtual cash?
The loan a buyer takes out to finance the purchase of real property is called a(n)
____________________.
When an agency is terminated by the bankruptcy of the principal, it is known as
termination by ____________________.