In order to protect themselves from disclosure of proprietary or confidential
information, businesses may:
a. implement security measures to prevent access by outsiders.
b. enforce contractual nondisclosure agreements against departing employees.
c. limit disclosure of such information to those with a need to know.
d. all of the above.
The ethical category of integrity and truthfulness is best expressed as maintaining
one€s values and principles:
a. so long as profits can be maintained.
b. so long as the costs are not great.
c. unless deviating will go unnoticed.
d. despite the consequences or costs.
The delegator of construction duties remains liable if:
a. the delegatee performs the work properly, but the obligee did not approve of the
delegation.
b. the delegatee performs the work improperly.
c. the obligee objects in writing to the delegatee€s performance of the work, even if
the delegatee performs the work properly.
d. the value of the contract is $500 or more and the delegatee performs the work
properly.
An administrative agency:
a. is not empowered to act as a court with regard to its own regulations.
b. acts as a specialized court of limited jurisdiction.
c. can hear complaints only in the presence of a jury.
d. cannot impose penalties for violation of its regulations.
An agreement under which one party agrees to pay drafts drawn by a creditor is called
a:
a. contract of surety.
b. guaranty contract.
c. letter of credit.
d. debtor’s agreement.
Between experienced businesspersons, exculpatory clauses are generally:
a. voidable.
b. void.
c. valid.
d. unenforceable.
A third-party beneficiary:
a. may be obligated to pay for services rendered.
b. may bring suit on and enforce the contract.
c. must consent to the contract.
d. must be identified by name.
The U.S. Constitution has been amended:
a. only expressly.
b. only by interpretation.
c. only by practice.
d. by all of the ways listed above.
An indorsement “for deposit only” is:
a. restrictive.
b. qualified.
c. special.
d. blank.
Strict tort liability is applied:
a. independently of the UCC.
b. without regard to privity of contract.
c. despite negligence on the part of the plaintiff.
d. all of the above.
A shopkeeper may lose the shopkeeper€s privilege if:
a. the customer is kept an unreasonable amount of time.
b. the shopkeeper acted with reasonable suspicion.
c. the shopkeeper acted with necessary force.
d. all of the above.
If a lost negotiable instrument is in bearer form at the time of the loss, the finder is
entitled to enforce payment.
Past benefits already received by a promisor cannot be consideration for a later
promise.
Before an appeal can be taken to a court concerning a determination of an agency, all
administrative remedies must be exhausted.
It is worse for the holder to lose order paper than to lose bearer paper.
A blank indorsement indicates the person to whom the instrument is to be paid-that is,
the transferee.
Morris made two purchases. He purchased his neighbor Cordelia’s typewriter and a
computer from Crazy Computers. Regarding the typewriter, Cordelia had bought it on
credit from Jack’s Typewriters. Cordelia had financed the purchase with Jack’s and
signed a promissory note and a security agreement covering the purchase. The creditor,
Jack’s, did not file a financing statement, relying on the concept of automatic perfection
for purchase money security interests in consumer goods. Morris was unaware of the
history of the typewriter. The computer was subject to a security interest in favor of
Country Bank, which had perfected its security interest by filing. Morris, by
coincidence, knew of this security interest when Morris purchased the computer.
Unfortunately, neither Cordelia nor Crazy Computers paid the secured creditors who
now seek to repossess the collateral from Morris. What will be the likely outcome of
this case?
If two creditors have a security interest in the same collateral, their priority is
determined according to the €last in-first out€ provision.