Jason contracts with Golf Carts Unlimited, Inc. to buy five golf carts. The contract lists
the five carts as GC001, GC002, GC003, GC004, GC005. Identification
a. requires that Jason verify his identity to take possession of the carts.
b. has taken place.
c. cannot take place until the contract is reviewed by a court.
d. will take place only when Jason pays for the golf carts.
The Statute of Frauds is a compilation of all the laws and regulations related to fraud.
a. True
b. False
Recycled Sales Company and Standard Purchasing Corporation enter into a contract for
a sale of goods.To be enforceable, the contract should be in writing if the goods are
valued at more than
a. $5.
b. $15.
c. $50.
d. $500.
Garth owns two all-terrain vehicles (ATVs), worth $1,000 and $500, re-spec-tively.
Helen agrees to buy “Garths ATV for $750. Garth believes, in good faith, that he is
selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV.
In this situation
a. Garth is entitled to $750 for the $500 ATV.
b. Helen is entitled to the $1,000 ATV for $750.
c. Helen must buy both ATVs for $1,500.
d. there is no contract.
South Dakota, like other states, may regulate private activities to protect or promote the
public order, health, safety, and general welfare under
a. the states police powers.
b. the dormant commerce clause.
c. the due process clause.
d. the free exercise clause.
Elinor sells Cathy a horse for $2,000. When Elinor goes to the bank to deposit Cathys
check, the check bounces. Elinor is furious and files suit against Cathy. Elinor probably
filed her suit in
a. a small claims court.
b. a domestic relations court.
c. a municipal court.
d. a probate court.
The consideration paid to an insurer to obtain an insurance policy is the premium.
a. True
b. False
International franchisees usually do not pay fees for the license to use a trademark or
trade name.
a. True
b. False
Rubber stamp signatures can be legally binding signatures.
a. True
b. False
Sally is the secured party in a transaction with Lilly, who is the debtor. Sally files a
financing statement with the appropriate state official. The financing statement must
contain
a. Lillys signature.
b. Sallys bank account information.
c. Lillys credit report.
d. a photograph of the collateral.
Lani is asked to serve as a witness to Monas will. To qualify, Lani must be
a. a collateral heir.
b. a lineal descendant.
c. eighteen years of age or older.
d. mentally competent.
A record is an interaction between two or more people relating to business, commercial,
or governmental activities.
a. True
b. False
Brendan signs a check “pay to the order of City College Bookstore drawn on his
account in Delta Bank to pay for his current semesters textbooks. The bookstore
deposits the check in its account in Eagle Bank. Like most checks, this check is
a. a one-party instrument.
b. a nonnegotiable instrument.
c. a special type of draft.
d. not a substitute for cash.
Marys home is in a state that has a $30,000 homestead exemption. Mary de-faults on a
$60,000 debt that she owes to Nina. Marys home is sold at auc-tion for $80,000.
Refer to Fact Pattern 20-1. Other property Mary may own that may be ex-empt from
satisfaction of judgment debts includes
a. any property that Mary wishes to exempt.
b. investments that Mary has made in her familys businesses.
c. recreational vehicles that Mary uses on weekends.
d. tools that Mary uses in her trade.
To support the imposition of strict product liability, a product must be substantially
changed from the time it is sold to the time an injury occurs.
a. True
b. False
Garth dies without a will. The distribution of Garths property, including his eleven
forested acres near Hope, Arkansas, is prescribed by
a. a court-appointed executor.
b. federal probate statutes.federal probate statutes.
c. state intestacy laws.
d. Garths relatives.
The brakes on a River Valley Railroad train malfunction and it rolls towards
main-te-nance workers on the tracks. Everyone gets out of the way except Dick, who
wants to show off. The train hits Dick, who sues Stops-it, Inc., the brakes manufacturer.
Stops-it can raise the defense ofThe brakes on a River Valley Railroad train malfunction
and it rolls towards main-te-nance workers on the tracks. Everyone gets out of the way
except Dick, who wants to show off. The train hits Dick, who sues Stops-it, Inc., the
brakes manufacturer. Stops-it can raise the defense of
a. a component-part manufacturer.
b. assumption of risk.
c. consumer participation.
d. product misuse.
Ethical reasoning is the process through which an individual links his or her moral
convictions or ethical standards to the particular situation at hand.
a. True
b. False
A trade name can be protected if it is unusual or fanciful.
a. True
b. False
Adequacy of consideration refers to how much consideration is given.
a. True
b. False
Fresh Fast Service, Inc., offers to deliver produceto Growers Markets customers for a
certain price. Freshs intent to extend a serious offer to Growers Market is determined by
reference to
a. Freshs assumptions.
b. Freshs beliefs.
c. Freshs intentions.
d. what a reasonable person in Growers position would conclude Freshs words and
actions meant.
An appraisal right is available only when a state statute specifically provides for it.
a. True
b. False
At 1 a.m., on the sidewalk in front of Ace Credit Corporation, which is closed, Ben
buys a $500 promissory note for $50 from Curt. When pre-sented with Bens demand
for payment, Diann, the maker of the note, could successfully claim that Ben
a. acquired the note with notice that it was overdue.
b. did not acquire the instrument in good faith.
c. did not give value for the instrument.
d. none of the choices.
Lost in a canyon near Gila, Arizona, Hester writes her will in crayon, on a paper bag,
while Ivan states orally how he wants his estate distributed. Most states do not permit
a. an olographic will.
b. a nuncupative will.
c. a will written on a paper bag.
d. a will written in crayon.
State limited liability company statutes are uniform.
a. True
b. False
The mailbox rule applies to communication by phone and fax as well as the mail.
a. True
b. False
Under the UETA, an e-signature of a notary public is not sufficient to notarize a
document.
a. True
b. False
Each state establishes rules that govern the conduct of attorneys
a. True
b. False
Because stock is intangible personal property, a stockholders ownership of the stock
a. exists independently of the stock certificate itself.
b. cannot exist without a tangible stock certificate.
c. cannot exist without the original stock certificate
d. cannot be transferred to another person.
On a lessees insolvency, the lessor can stop delivery of the goods.
a. True
b. False
Bess wishes to appeal a decision from a federal bankruptcy court. Bess must appeal to
a. a county court.
b. a federal district court.
c. the U.S. Supreme Court.
d. a state court.
Self-defense is a defense to negligence.
a. True
b. False
A check can be retained at its place of deposit and only its image can be presented for
payment under an electronic presentment agreement.
a. True
b. False