Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Initially, ratification is a question of:
a. intention.
b. consideration.
c. form.
d. implication.
A system in which a central government is given power to administer to national
concerns and individual states administer to local concerns is called:
a. bicameral.
b. constitutional.
c. federal.
d. tripartite.
When a buyer assigns the right to goods under a contract, the buyer's liability to make
payment to the seller is:
a. transferred to the third party.
b. terminated.
c. still in effect.
d. shared equally with the third party.
The owners of a limited liability company are known as:
a. members.
b. partners.
c. contributors.
d. electors.
Mabel issues a negotiable promissory note to the order of Rachel. Rachel endorses the
note to Batton, who takes it as a holder in due course. Batton gives the note to his
brother, Albert, as a gift. In this situation:
a. Albert will acquire Batton's rights.
b. Albert is a holder in due course.
c. Batton can sue only on the instrument if he took it before maturity.
d. none of the above.
Tom established a bank account for his daughter Mary under the Uniform Gifts to
Minors Act. Tom named himself the custodian. Later, Tom had a serious disagreement
with Mary and ordered the bank to transfer the money in that account to a similar
account maintained in the same bank for Tom's son Ed. The bank must:
a. comply with Tom's order, because the custodian controls the account.
b. refuse Tom's order, because this would clearly not be for the benefit of Mary.
c. comply with Tom's order, because Uniform Gifts to Minors accounts are not final.
d. comply with Tom's order if Mary is at least 18 years of age at the time in question.
The federal-state system that provides unemployment compensation under the Social
Security Act of 1935 excludes all of the following categories of employees except:
a. agricultural employees.
b. domestic employees.
c. state and local government employees.
d. all of the above are excluded from coverage.
A covenant that passes with the land so that whoever owns the land is bound by or
entitled to the benefit of the covenant
a. is a covenant of seisin.
b. is a covenant of further assurances.
c. is a covenant of quiet enjoyment.
d. is said to run with the land.
Janice Beadles owns a large cargo vessel that is used primarily for international trade
transactions. Janice is quite concerned about her possible liability and financial losses,
as she has become aware of more and more collisions between ships at sea. What can
you tell her about the different types of insurance that she could obtain that could assist
her in the event of an accident?
Which of the following is not the exclusive right of the holder of a copyright?
a. to prepare works that are derived from the original work
b. to obtain a court order enjoining use of the original work by another
c. to distribute copies of recordings of the original work
d. to display or perform the original work in public
Costs generally are awarded to the prevailing party in litigation. Those costs usually
include:
a. filing fees.
b. service-of-process fees.
c. deposition transcript costs.
d. all of the above.
All goods other than those existing and owned by a seller at the time of a transaction are
called:
a. existing goods.
b. tangible goods.
c. future goods.
d. intangible goods.
The common law rights and duties of a warehouser, in the absence of modifying
statutes, are for the most part those of a bailee in:
a. a bailment for the sole benefit of the bailee.
b. an ordinary mutual-benefit bailment.
c. a bailment for the sole benefit of the bailor.
d. none of the above.
If the collateral is in the possession of the creditor:
a. a financing statement must be filed to perfect the interest.
b. the security interest is perfected.
c. only a security interest has been obtained.
d. the type of goods will determine the method of perfection.
Under the Uniform Commercial Code (UCC), a firm offer applies to:
a. a written, signed offer by a merchant to buy or sell goods.
b. an unwritten but definite offer to buy or sell goods.
c. a written, signed offer by anyone to buy or sell goods.
d. an unlimited, stipulated period of time.
Under modern law, when the issue that an agency decides is a question of law based on
a technical statute:
a. the court on appeal will reverse the agency's decision if the court disagrees with the
decision.
b. the court will not accept the agency's decision unless the agency's interpretation is the
only one that could have been made.
c. the court will tend to accept the agency's interpretation of the law as long as it is
reasonable.
d. the court will not reverse the agency's decision.
The owner of a factory that releases toxic chemicals into the air and surrounding
waterways may be in violation of:
a. environmental regulations.
b. zoning regulations.
c. antitrust regulations.
d. all of the above.
If there are two or more sureties and one pays more than its proportionate share of the
debt, such surety has the right against the cosureties known as:
a. indemnity.
b. exoneration.
c. subrogation.
d. contribution.
The person who initiates a lawsuit is called the:
a. defendant.
b. moving party.
c. plaintiff.
d. none of the above.
What is not included in a common carrier's lien on goods that it transports?
a. consequential damages
b. demurrage
c. costs of preserving the goods
d. costs of a sale to enforce the lien
An agreement to restrain trade may be void on the grounds that it is:
a. fraudulent.
b. contrary to public policy.
c. illegal lobbying.
d. unfair to merchants.
A person who acquires a negotiable instrument with notice or knowledge that any party
might have a defense or that there is any adverse claim to the ownership of the
instrument:
a. has acted in bad faith.
b. has acted illegally.
c. cannot be a holder in due course.
d. has taken unfair advantage of the maker.
Design patents have a duration of __________ years.
a. 10
b. 14
c. 17
d. 20
Which of the following is not a nontariff barrier?
a. government subsidies
b. import quotas
c. complex custom procedures
d. an import or export duty or tax placed on goods as they move in or out of a country
Rejection of improper tender and revocation of acceptance are
a. synonymous.
b. distinguishable remedies.
c. common law remedies.
d. non-UCC remedies.
ERISA establishes an insurance plan to protect employees when the employer goes out
of business. To provide this protection, the statute created a:
a. pension surety system.
b. Pension Benefit Guaranty Corporation.
c. Pension Accrual Compensation System.
d. bond system of payment.
In determining the rights of partner Dewey in the firm of Dewey, Cheatham and Howe,
the most important reference point is:
a. the Uniform Partnership Act.
b. the partnership agreement.
c. the sworn testimony of Cheatham and Howe.
d. the customs and traditions of similar partnerships.
Statutory law is created by:
a. Congress.
b. state legislatures.
c. local governments.
d. all of the above.
A bank will not be liable for payment of a check on which the drawer's signature has
been forged if:
a. the bank could not have detected the forgery through a reasonable investigation.
b. there are more than two prior indorsers of the check.
c. the bank gives a cashier's check in payment of the depositor's check.
d. the drawer's negligence contributed substantially to the forging of the signature.
Which of the following scenarios would not qualify as a bona fide occupational
qualification exception to Title VII?
a. a religious school hiring only members of that religion to teach religion
b. a women's store that sells wedding gowns hiring only women to measure and fit
customers
c. an airline hiring only female flight attendants
d. all of the above scenarios would qualify as a bona fide occupational qualification
exception to Title VII.
A transferor may be able to set aside a negotiation obtained by fraud or duress unless:
a. a minor is involved.
b. the negotiation was part of an illegal transaction.
c. the negotiation was beyond the powers of the corporation.
d. the instrument has been acquired in the meantime by a holder in due course who did
not know of the misconduct.
It is important to protect trade dress against adoption by a competitor because such
adoption can:
a. deceive purchasers into believing they have obtained a comparable product.
b. dilute the originator's resource investment in its product appearance.
c. usurp the business goodwill of the developer of the trade dress.
d. all of the above.
A voluntary petition in bankruptcy may be filed by a(n):
a. husband and wife.
b. railroad company.
c. insurance company.
d. all of the above.
If an express warranty is breached,
a. an action for breach of express warranty is the buyer's exclusive remedy.
b. the seller nevertheless has no warranty obligation if the buyer had the opportunity to
inspect the goods before purchasing them.
c. the warrantor is liable, even if the seller or manufacturer who made the express
warranty honestly believed that the warranty was true.
d. the seller is not liable for breach of one or more implied warranties.
A corporation that does business in the state in which it was created is called a(n):
a. domestic corporation.
b. foreign corporation.
c. alien corporation.
d. home corporation.
The drawee on a check is a bank.
Damages recoverable in a case of promissory estoppel are determined by the profits that
the promisee expected.
Under Revised UCC Article 9, a debtor may authorize a financing statement by
acquiring the collateral that is subject to the security agreement.
Manis owns 100 shares of stock of the Linquist Corporation. She sells her stock to
Sosnik and delivers to him: (1) her stock certificate for 100 shares and (2) a written,
signed assignment of the 100 shares to Sosnik. The assignment form printed on the
back of the share certificate is left blank and is not signed. Sosnik refuses to take the
certificate and the assignment on the ground that Manis must fill in and sign the
assignment form on the stock certificate to make the transfer of stock effective. Is he
correct?
A warehouser is an insurer of goods.
A negotiable warehouse receipt that provides for delivery of the goods to the order of
Jill Jones may be negotiated by delivery of the document to the purchaser.
Franchise agreements frequently contain an arbitration provision under which a neutral
party is to make a final and binding determination whether there has been a breach of
the contract sufficient to justify cancellation of the franchise.
All current rights against governmental intrusion are expressly stated in the
Constitution.
If the debtor is generally not paying debts as they become due, the debtor may be
subject to an involuntary bankruptcy petition.
A disclaimer based on lack of knowledge will always protect an accountant from
liability.
Tom was a tall man who operated a successful restaurant that he owned. He believed
that tall people commanded more respect in a restaurant. Accordingly, he never hired a
waiter or waitress who was less than six feet tall. Because of this, he had seventeen
waiters and no waitresses working at the restaurant. Lucinda, a woman less than six feet
tall, applied for a job as a waitress and was not hired. Later, Lucinda learned that a man
who was over six feet in height was hired to fill the position. After a few inquiries, she
learned of Tom's height requirements and alleged that she was the victim of illegal
discrimination. Decide.
John was driving his car in a careless way, failing to drive as a reasonably prudent
person would under the driving conditions. Ramona was crossing the street in a careless
way, failing to cross as a reasonably prudent person would. John struck and injured
Ramona with the car John was driving. At trial, it was determined that John was 80
percent at fault and that Ramona was 20 percent at fault. The injuries sustained
amounted to $100,000. Explain how much, if any, recovery Ramona would receive in a
state that applies the contributory negligence rule. Do the same thing for a state that
applies the comparative negligence rule.
For the purpose of determining the right to bring a lawsuit in federal court, a
corporation is a citizen of any state in which it has been incorporated and of the state
where it has its principal place of business.
For a change to constitute an alteration, the person making the change must be a party
to the instrument.
Any modification of a sales contract must be supported by some form of consideration.
The steps in terminating a financing transaction upon full payment by the debtor
include the preparation of a termination statement by the creditor and the presentation
of the statement to the filing officer, who marks the record "terminated."
The filing of a voluntary, but not an involuntary, petition operates as an automatic stay.
Fred and Mary were married. Fred had executed a will prior to the marriage that left all
of his property, both real and personal, to his mother. Fred later died without changing
his will. Mary feels that she should be entitled to some of Fred's estate. While waiting
for Fred's estate to be finalized, Mary remarries. Mary's second husband executes a will
providing for Mary. Later, after Mary and her husband adopt two children, her second
husband dies. Mary feels that her children should be entitled to receive something from
her second husband's estate. Is Mary and, later, are her adopted children entitled to
receive something under the wills?
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.
