If the goods or their tender fail to conform to the contract, the buyer can accept part and
reject part.
a. True
b. False
In a joint venture, the parent company in the United States retains complete ownership
and authority over all phases of the operation.
a. True
b. False
Lyle, vice-president of sales for Mi-T Electric, Inc., adheres to Judeo-Christian
re-lig-ious ethical standards. With respect to their application, these standards are
a. absolute.
b. analytical.
c. discretionary.
d. utilitarian.
Robert uses the Internet to defraud Prairie Valley Credit Union. He is found guilty of
wire fraud. He can be punished by
a. imprisonment for not more than one year.
b. imprisonment for up to thirty years and fines of up to $1 million.
c. fines for not more than $50,000.
d. death.
Donna goes through an involuntary bankruptcy proceeding. An invol-un-tary
bankruptcy occurs when
a. a debtor files forms designated for the purpose in a bankruptcy court.
b. a debtor is unable to pay his or her debts as they come due.
c. a debtors creditors force the debtor into bankruptcy proceedings.
d. a debtors debts exceed the fair market value of his or her assets.
Professionals are obligated to adhere to standards of performance generally accepted
within their profession.
a. True
b. False
Restrictions on imports may include quotas.
a. True
b. False
Gambling involves the distribution of property by chance among persons who have
paid valuable consideration for the opportunity to receive it.
a. True
b. False
Dru signs a check “pay to the order of Eppie drawn on Drus account in Bayside Bank.
Greta forges Eppies indorsement. Bayside pays the check. Most likely
a. Dru will be liable for the amount.
b. Eppie will have to pay Dru for the amount.
c. Bayside will have to recredit Drus account.
d. the Federal Reserve will reimburse all parties for their costs.
Susan is unhappy with the way her mother has made out her will. Susan has a lawyer
draft a new will and then signs her mothers name to it without her mothers consent.
Susan has committed
a. larceny.
b. no crime.
c. robbery.
d. forgery.
Jacqi tells Kenneth, who does not know how to perform comedy, that she will tutor him
in the subject for $500. As an offer, this is
a. effective.
b. not effective, because comedy is not a serious subject.
c. not effective, because Jacqis tutoring will be subjective.
d. not effective, because Kenneth has no knowledge of the subject.
Qang and other foreign citizens allege human rights violations committed overseas by
the government of Burma on behalf of Railway Construction Company, a U.S. firm. To
seek redress for their injuries in a U.S. court, these citizens can
a. allege antitrust injuries under the Sherman Act.
b. bring civil suits under the Alien Tort Claims Act.
c. file criminal complaints under Title VII of the Civil Rights Act.
d. do nothing.
Crafted Iron Works, Inc., offers to design, make, and sell City Transit Agency fourteen
streetcars. Crafted authorizes a particular mode of communication, but City Transit
sends an acceptance via a substituted means. This acceptance is effective when it is
a. in transit.
b. received.
c. sent.
d. written.
A disclosed principal is a principal whose identity is not known by the third party at the
time the contract is made by the agent.
a. True
b. False
Jim files a uniform financing statement giving notice to the public that he has a secured
interest in collateral belonging to Phil, who is the debtor named in the statement. This
uniform statement form is now used in
a. all states.
b. no states.
c. only one statePennsylvania.
d. some states with several different forms used in other states.
Checkerboard Pizza, Inc. (CPI), files for bankruptcy under Chapter 11. CPIs Chapter 11
plan must contain
a. a plan to turn over its future income to the trustee.
b. a certificate proving attendance at a credit-counseling briefing.
c. a provision of adequate means for the plans execution.
d. a statement of preference for one creditor over another.
Parker and Oscar sign a partnership agreement to do business as “Parkers Plumbing
without specifying a duration. This partnership is terminable
a. at any time by either partner.
b. only after a reasonable term.
c. only if Parker dissociates from the firm.
d. only if Oscar dissociates from the firm.
Tania promises to buy Sakis handheld video game-player for $40. Saki is
a. an executee.
b. an offeror.
c. a promisee.
d. a promisor.
An item cannot be a fixture unless it is physically attached to the land.
a. True
b. False
Working papers are the documents through which a court orders an accountant to audit
a public company.
a. True
b. False
Roland files for Chapter 7 bankruptcy. After all his assets have been sold and the
proceeds distributed among his creditors, Rolands remaining debts
a. are discharged.
b. paid by the court.
c. must be paid by Roland.
d. are put on hold until Roland has sufficient means to pay them.
The crime of theft requires the taking of property, without regard to whether the
perpetrator knew it belonged to another.
a. True
b. False
Derrick buys a hunting license and goes hunting. He shoots a deer, cleans it, and takes it
back to his truck. He takes the deer to town and has the meat processed. Derricks
acquisition of the deer is by
a. possession.
b. a bailment.
c. confusion.
d. production.
Any contract entered into with an unlicensed party is unenforceable.
a. True
b. False
In many states, an operating agreement is not required for a limited liability company to
exist.
a. True
b. False
The mirror image rule requires an acceptance to adhere exactly to an of-fer to create a
contract.
a. True
b. False
In a bilateral contract, communication of acceptance is necessary.
a. True
b. False
A surety can assert the debtors bankruptcy as a defense.
a. True
b. False
Lars accuses Moe, an attorney, of committing malpractice. Malpractice is
a. a breach of ethics.
b. a defalcation.
c. a mistake in judgment.
d. professional negligence.
ValuRich Tools, Inc., sells tools, tool parts, and related supplies under “full
warranties.Under the Magnuson-Moss Warranty Act, this means that ValuRich must
provide
a. a choice between a refund or replacement if a product cannot be fixed and repair or
replacement of defective parts.
b. neither a choice of a refund or replacement, or repair of defective parts.
c. only a choice of a refund or replacement if a product cannot be fixed.
d. only repair or replacement of defective parts.
Hua, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the
ownership of the warehouse with Jac, a resident of Kentucky. Jac files a suit against
Hua in Indiana. Regarding this suit, Indiana has
a. federal jurisdiction.
b. in personam jurisdiction.
c. in rem jurisdiction.
d. no jurisdiction.
Under the UCC, parties to a contract cannot limit or exclude consequential damages.
a. True
b. False
Procter, who is not in contemplation of imminent death, tells his daughter Opal that she
can have his Dodge truck on his death, whenever that happens. This is
a. aneffective gift causa mortis.
b. aneffective gift inter vivos
c. aneffective gift largesse.
d. not an effective gift.
Jacks Pet Houses, Inc. sells shelters for animals under “limited warranties. Under the
Magnuson-Moss Warranty Act, this means that the warranties on shelters from Jacks
Pet Houses
a. do not meet one of the requirements of a full warranty.
b. are only good for one year.
c. are illegal.
d. are oral.
A breach of contract occurs only when a party fails to perform all of his or her duties
under a contract.
a. True
b. False