Community based insurance only covers serious illnesses and lengthy hospitalizations.
A crime is an offense against the public at large.
Commercial paper must be presented for payment during business hours on the due date
given on the instrument.
A breach of warranty lawsuit is based upon tort law.
All contracts to sell real property, or any interest in it, must be in writing to be
enforceable.
There has been a growing recognition that economic interests are causing the gradual
destruction of the rain forests.
Goods that exist at the time of the sales transaction and are expected to come into the
possession of the seller are considered future goods.
An example of a debt that is not discharged in bankruptcy is student loans.
A bailment is created when the parking lot attendant actually takes control of the
vehicle.
The promise in a note, or the order in a check or draft, must be conditional.
The parol evidence rule refers to the addition of supplementary evidence or conditions
that a party wants added to a written contract.
Personal property includes real property such as land and all property attached to it.
A promise to give up something of value that a person has a legal right to keep or to
agree to do something that a person is not legally required to do is known as
consideration.
The legislative branch at all levels of government consists of elected representatives
who have the responsibility for passing laws that do not consider the will of the people.
A salesperson in a retail store or service station is known as a retainer party.
The purpose of Chapter 9 is to provide a municipality with a debt repayment plan rather
than to require the liquidation of municipal assets.
The crime of forgery consists of wrongfully making or altering the writings of another
with the intent to defraud.
The holder of dishonored commercial paper must give notice of the dishonor
immediately to the drawer and to all endorsers in order to hold them liable on the
instrument.
Cafeteria plans cover employees beneficiaries in the event of loss of life.
Since many computer programs are designed to do certain tasks electronically that have
previously been done mechanically, it is often difficult to satisfy the novelty and
nonobviousness requirements for a patent.
The person who makes a promise is called a drawer’.
The means test uses a complex formula that measures an individual’s income relative to
the median income of the people in the state where he or she resides.
An agency by invention is created when circumstances make such an agency necessary.
Administrative agencies only embody the judicial function of government.
A guaranty, or promise, to pay the debts or settle the wrongdoings of another if he or
she does not make settlement personally is not enforceable unless it is written.
Contracts based on moral consideration are generally enforceable.
Each amendment of the federal constitution needs to be ratified by the legislatures of
half of the 50 states.
Genuineness, or reality of an agreement, is said to be present in a contract when there is
a true meeting of the minds.
An agency by operation of law is created when a court finds the need for an agency to
achieve a desired social policy.
When a contract provides for the sale of goods subject to the buyer’s approval, the
transaction is a sale on return.
Contracts for services are not covered by the Uniform Commercial Code.
Contracts may be terminated by alteration.
Because priority debts are deemed to be sufficiently important, they are not required to
be paid in full.
If a seller, at the time of making a contract, knows or has reason to know any particular
purpose for which the goods are required and that the buyer is relying on the seller’s
skill or judgment in selecting or furnishing suitable goods, there is an implied warranty
of:
A.good faith.
B.reputation.
C.merchantability.
D.fitness of purpose.
The various forms of theft, robbery, hijacking, embezzlement, and shoplifting are types
of:
A.larceny.
B.burglary.
C.plundering.
D.plotting.
A union has the right to negotiate a contract an the employer that covers all terms and
conditions of employment. This is known as a(n):
A.collective bargaining agreement.
B.usurious agreement.
C.gambling and wagering agreement.
D.agreement not to compete.
An agreement in which a suitcase is left with a railroad station checkroom is a:
A.bailment for the sole benefit of the bailee.
B.bailment for the sole benefit of the bailor.
C.mutual-benefit bailment.
D.constructive bailment.
Contracts made on a legal holiday can generally be performed on the:
A.same day of the legal holiday.
B.next business day following the holiday.
C.on the day prior to the holiday.
D.within one week from the date of legal holiday.
A possession interest in which no specific time of lease is agreed upon is a:
A.periodic tenancy.
B.tenancy at will.
C.tenancy for years.
D.tenancy at sufferance.
The major disadvantage of a corporation is the fact that the corporation is required to
___________for any year during which a profit is earned.
A.pay separate income taxes
B.pay separate dividends
C.pay separate interest
D.pay separate bonuses
If only one party promises something, such as paying a certain amount of money, and
the other party promises nothing, then the agreement lacks:
A.consideration.
B.competence.
C.legality of purpose.
D.offer and acceptance.
The principle of law that holds that the courts of one country should refrain from
deciding cases involving the acts of persons from another country, is known as the
doctrine of:
A.comity.
B.jurisdiction.
C.res judicata.
D.estoppel.
The enforcement of any and all moral obligations results from ______.
A.the effect on a person’s conscience
B.actions by state courts
C.actions by federal courts
D.peer pressure
A qualified endorsement can be used together with a blank endorsement or special
endorsement by using phrases such as:
A.”With recourse.”
B.”With blank endorsement.”
C.”With special endorsement.”
D.”Without recourse.”
Today’s business professionals involved in global markets are sometimes faced with
ethical predicaments because of different:
A.modes of transport.
B.languages.
C.standards of ethics.
D.values of money.
The most common form of valid consideration is:
A.the promise of money by one party for the promise of an act by another.
B.the promise of an act by one party for the promise of refraining from trade by the
other party.
C.the promise of money by one party for the promise of restraining oneself from
competitive trade by another.
D.the promise of an act by one party in exchange for a different act by another.
In order to ensure negotiability, the Uniform Commercial Code assumes that the
endorser is the true owner of the paper. If he or she found or stole the paper and
transferred it to another by endorsement, the:
A.law provides a jail term to the endorser, but not compensation to endorsee.
B.endorser is liable for any loss suffered by the endorsee.
C.endorser is liable up to $500 for the loss suffered by the endorsee.
D.endorsee cannot seek any remedy from the endorser.
After the patent expires, other companies may produce alternative versions of the drug,
referred to as:
A.embargoes.
B.placebos.
C.generics.
D.superfunds.
Whoever is in possession of commercial paper is called the holder. The holder can be
all of the following, EXCEPT the:
A.payee.
B.drawee.
C.drawer.
D.co-maker.
The ___________________ is a federal agency established by Congress and tasked
with administering and collecting federal income tax:
A.FDA.
B.IRS.
C.FDIC.
D.SEC.
Organizational forms that are referred to as not-for-profits may include:
A.limited liability corporations.
B.charitable organizations.
C.joint ventures.
D.industrial corporations.
There are _______ distinct rights of privacy generally recognized in the United States.
A.six
B.four
C.five
D.two
If the Web site visitor has had an ample opportunity to read the terms of an agreement,
and if those terms are not unreasonable, a(n):
A.void contract exists.
B.voidable contract exists.
C.valid contract exists.
D.unenforceable contract exists.
A promise to pay an existing debt or to obey the law, or a similar promise, is called a:
A.pledge.
B.gratuitous promise.
C.preexisting duty.
D.barren promise.
Consumer products with restrictions imposed on them by the Consumer Product Safety
Commission include the following, EXCEPT:
A.services.
B.paint.
C.children’s toys.
D.radiation-emitting products.
When an investor who owns shares of a company’s stock posts notices onlinein chat
rooms, on Web pages, on blogs, and elsewherethat indicate that the value of the stocks
will increase, then such an act is known as:
A.cyber squatting.
B.churning.
C.touting.
D.insider trading.
A holder in due course is sometimes called a:
A.”bona fide holder for value without notice.”
B.”bona fide holder in due course.”
C.”bona fide drawer in due course.”
D.”bona fide endorser for value with notice.”
Despite the advent of strict liability, there is considerable activity to curb abuses of the
system in various state legislatures with a view toward:
A.manufacture reform.
B.liability reform.
C.tort reform.
D.product reform.
Whereas an agency agreement brings about a relationship between a principal and a
third party that results in a contract, an employee who is not also an agent
_______________.
A.also has such rights and powers
B.has no such rights or powers
C.has extensive rights
D.has limited rights
Sometimes a person has the power to control the actions of another because of a special
or confidential relationship to that person. Such relationships are found in all of the
following, EXCEPT that of a(n):
A.employer and an employee.
B.physician or nurse and a patient.
C.attorney and a client.
D.client and vendor.
A __________________ is a special kind of business organization involving a
contractual relationship between a parent firm and an independent company.
A.government-granted monopoly
B.retailer
C.private franchise
D.wholesaler
When an administrative agency is established, the legislature usually:
A.specifies the purpose and the powers of the agency.
B.does not specify the purpose and the powers of the agency.
C.determines only the powers of the agency.
D.specifies only the purpose of establishing the agency.
In 1994, 12 countries in Europe formed an economic and political integration of the
members into one entity which is expected to eventually become:
A.Greenland.
B.Euroland.
C.United Europe.
D.Trans-Europe.
In conducting business, a firm and its owners have the right not to be subjected to:
A.politically correct statements.
B.truthful statements.
C.false and malicious statements.
D.acts of negligence.
A federal statute that provides an individual with rights over his or her health
information and establishes limits on who is permitted to view and receive health
information is ____________.
A. Patient Protection and Affordable Care Act
B. Health Insurance Portability and Accountability Act of 1996 (HIPAA)
C. Occupational Safety and Health Act of 1970
D.Consolidated Omnibus Budget Reconciliation Act of 1985
The federal Digital Millennium Copyright Act of 1998 (DMCA) provides that Internet
Service Providers are not liable for copyright infringements by their subscribers if they
adopt and reasonably implement a(n):
A.purchase policy.
B.termination policy.
C.sales policy.
D.insurance policy.
Describe the effect of commercial paper on which the signature of the maker or drawer
has been forged.
Identify and describe the process of deciding if a law is contrary to the Constitution.
Briefly explain the kinds of contracts.
When is an agency by operation of law created? Please give an example.
There was a time when state constitutions and laws differed from state to state with the
result that interstate commerce was affected. What resolved the conflicting statutes
regulating business activity among the states?
What are the basic functions of the U.S. Office of Government Ethics?
What constitutes an “illegal restraint of trade?” Explain and provide an example.
What are the usual means of communication of an offer?
State and describe at least three rights of an employer as it pertains to labor unions and
its employees.
Define nuisance and describe its two categories.
Write a brief explanation of the state court system.
Discuss the situations in which the Uniform Commercial Code dispenses with the
requirement of consideration in contracts to sell goods.
White-collar crimes are often committed against businesses but are sometimes
committed by firms. Give an example of the latter.
Describe the greenhouse effect and discuss how it can impact the environment.
Explain the role of the Federal Trade Commission (FTC), and the options it has
regarding deceptive advertisements.
Explain a liquidated damages clause.
In a contract between a minor and an adult, the minor has the privilege of
disaffirmance. Are there circumstances under which the minor may not cancel the
contract?