Kelly signs an instrument in favor of Leo that states it is ‘subject to a cer-tain agreement
between Kelly and Mona. This instru-ment is
a. negotiable.
b. nonnegotiable, because it is made subject to a separate agreement.
c. nonnegotiable, because it refers to a separate agreement.
d. nonnegotiable, because Kelly and Mona are not the same persons.
A finder of abandoned property acquires title to it, and the title is good against the
whole world, including the original owner.
a. True
b. False
A contract for the sale of minerals is considered to be a contract for the sale of goods if
the severance is to be made by the seller.
a. True
b. False
Government authorities cannot enforce na-tional law.
a. True
b. False
Skyler dies after having made a valid will. Skyler has died
a. in escheat.
b. in probate.
c. intestate.
d. testate.
Individuals have a right to obtain access to information about them collected in
government files.
a. True
b. False
If a contract is fully performed by all parties to it, then it is pre-sumed to have been
ratified.
a. True
b. False
Under the doctrine of comparative negligence, only the plaintiffs negligence is taken
into consideration.
a. True
b. False
Constructive delivery satisfies the delivery requirement for an ef-fective bailment.
a. True
b. False
Demi promises to buy a house from Caleb, who promises to vacate the prop-erty on
June 1. If these promises are in writing, they are most likely
a. enforceable.
b. unenforceable.
c. void.
d. voidable.
Vance points a gun at Workman and threatens to shoot him. Workman hits Vance,
causing his death. Charged with homicide, Workman can successfully claim as a
defense
a. nothing.
b. duress.
c. entrapment.
d. self-defense.
Corporate directors and officers are insurers of business success.
a. True
b. False
Express powers of a corporation can be found in the articles of incorporation.
a. True
b. False
Vinyl Lynings, Inc. contracts to resurface the insides of the pools at WaterWorld Park.
Vinyl Lynings knows that without the resurfacing, WaterWorld will have to delay its
season opening. Vinyl Lynings does not perform as promised. As consequential
damages, WaterWorld can recover
a. the cost of new pools.
b. the difference between Vinyl Lyningss price and the eventual cost of resurfacing.
c. the loss of profit from the delayed opening.
d. nothing.
A lottery is an example of an offer for a unilateral contract.
a. True
b. False
Applied Business Corporation makes and markets its products nationwide. Under the
stakeholder approach, to be considered socially responsible when making a business
decision, Applied must take into account the needs of
a. its consumers, the community, and society only.
b. its employees and owners only.
c. its employees, owners, consumers, the community, and society.
d. no one.
Intentional torts result from the breach of a duty to act reasonably (fault without intent).
a. True
b. False
An insureds lack of an insurable interest is an absolute defense against payment.
a. True
b. False
A contract between Slim and Goldie may not be assigned if it
a. does not expressly permit assignment.
b. involves a sale of goods.
c. involves personal services.
d. is oral.
Perfect Potato Chip Company makes an offer that Snack Foods Corporation would like
to accept. Under the “mirror image rule relating to offer and acceptance, an acceptance
a. may include additional terms not contained in the offer so long as they do not
materially alter the agreement.
b. may include additional terms not contained in the offer that will be-come part of the
agreement if the offeror does not object within a reasonable period of time.
c. must include only those terms and conditions contained in the offer.
d. may contain additional terms as long as all parties agree to the additional terms.
Stormclouds Inc. makes and markets its U.S. patented Tempest Tablet in the United
States. Squalls Ltd., a Chinese firm, begins making and marketing the same product in
China as Outburst Pad without Stormcloudss permission. Squalls is
a. not guilty of patent infringement.
b. guilty of patent infringement.
c. guilty of trademark infringement.
d. in violation of the America Invents Act.
The dangers associated with using sharp knives are so commonly known that
manufacturers need not warn users of those dangers
a. True
b. False
Dependable Appliances, Inc., and Elaine enter into a contract for a sale of kitchen
appliances. Dependable, a merchant who deals in goods of the kind sold, notes that its
goods come with an implied warranty of merchantability. Under the UCC, this means
that the goods are reasonably
a. fit for the buyers particular purpose.
b. fit for the ordinary purpose for which such goods are used.
c. suitable for resale at an acceptable price.
d. the best quality that money can buy.
Jacob owns five acres of land in northern California. On his land Jacob has a house and
a toolshed. There are ten large maple trees around the house that were there when Jacob
bought the land. Since buying the land, Jacob has planted an apple tree. Jacobs real
property includes
a. the house and toolshed only.
b. the house only.
c. the house, toolshed and maple trees only.
d. the house, toolshed, maple tress and apple tree.
Quasi contract allows a court to act as if a contract exists when there is no contract.
a. True
b. False
Machismo Motor Sales Corporation regularly advertises its off-the-road vehicles,
all-terrain vehicles, and other products. Under the First Amendment, these ads and other
commercial speech are given
a. less extensive protection than noncommercial speech.
b. more extensive protection than symbolic speech.
c. no protection.
d. the same protection as defamatory speech.
The payment of Yvess debt to Zac is guaranteed by Yvess personal property. Their
agreement identifies Yvess property by serial number. To establish Zacs interest, this is
most likely
a. irrelevant.
b. not sufficient.
c. sufficient if it accurately describes the collateral.
d. sufficient unless it is too tedious to review.
Quotient Financial Corporation is a secured party with a security inter-est in property
owned by Retail Sales Company. Perfection of this secu-rity in-ter-est may not protect
Quotient Financial against the claim of
a. a bank.
b. buyer in the ordinary course of business.
c. a subsequent lien creditor.
d. a trustee in bankruptcy.
If a seller asks a buyer to store nonconforming goods overnight, then the buyer is
entitled to reimbursement for the costs involved.
a. True
b. False
Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd.,
a Canadian firm, to give Pharma the right to sell Optimas products in Canada. This is
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
Lather Up Soap Products Company grants its agent Kathy an exclusive terri-tory in
which to sell Lather Up products. The firm cannot compete with Kathy in that territory
under the principals duty of
a. avoidance.
b. cooperation.
c. indemnification.
d. reimbursement
A board of directors can delegate some functions to corporate officers.
a. True
b. False
Selena buys a cell phone for $350 and an air hockey table for $1,500, and signs a
one-year employment contract for a $4,000 monthly salary to start at the beginning of
the next month. The Statute of Frauds covers
a. the employment contract, and the game table and phone purchases.
b. the employment contract and the game table purchase only.
c. the employment contract only.
d. the game table and phone purchases only.
According to utilitarianism, it matters how many people suffer a negative effect from an
act.
a. True
b. False