Statements of opinion serve as a basis for rescission.
Answer:
A registration statement is the basic selling document of a 1933 Act registered
offering.
Answer:
A creditor who loans money to enable a consumer to buy goods can obtain perfection
of a security interest by attaching the security interest to the goods.
Answer:
(p. 978, 979) Geoffrey is a car dealer in Austin, Texas. His financial dealings with
customers come directly under the jurisdiction of the Consumer Financial Protection
Bureau.
Answer:
Directors are agents for the corporation by virtue of that office.
Answer:
A fully executory, bilateral contract that cannot be performed within a year after it is
made need not be evidenced by a writing to be enforceable.
Answer:
One of the primary reasons for not enforcing illegal contracts is to deter people from
entering into such agreements in the first place.
Answer:
Creditors of the debtor may not file an involuntary petition for a Chapter 13
proceeding.
Answer:
The UCC distinguishes between merchants and nonmerchants by holding merchants to
a higher standard in all cases.
Answer:
Ronny contracted Smiths to supply a Cinderella dress for his niece, Lucie, on her
birthday. Since the dress was intended for Lucie, Ronny cannot modify the contract
without her consent.
Answer:
Minors are liable for the value of necessaries they have purchased under a contract but
have not received at the time they disaffirm.
Answer:
Which of the following is TRUE about building and construction contracts?
A. The promisee who is dissatisfied with the mechanical fitness, utility, or marketability
may reject the performance without liability, even if doing so is unreasonable.
B. The engineer’s or architects certificates, which are often issued at each stage of
completion, indicate that the work is done to the satisfaction of the architect or
engineer.
C. These contracts require the builder to give the owner an engineer’s certificate for
satisfactory performance after the owner has paid the builder for the project.
D. In contracts involving matters of personal taste and comfort most courts require the
promisee to accept performance that would satisfy a reasonable person.
Answer:
The Fair Debt Collection Practices Act:
A. covers all retail stores, banks, or businesses that collect their own debts in their own
name.
B. prohibits harassment by debt collectors, including late-night phone calls and threats
of violence.
C. protects applicants from being discriminated on grounds of sex, marital status, race,
color, religion, national origin, and age.
D. ensures that information concerning a person’s credit background supplied to his/her
creditors is both up-to-date and accurate.
Answer:
Tie-in contracts are illegal under:
A. Section 3 of the Clayton Act.
B. Section 2 of the Sherman Act.
C. Section 7 of the Clayton Act.
D. Section 2(a) of the Robinson-Patman Act.
Answer:
Check 21 contains a special refund procedure, called “expedited recredit”, for a
customer who suffers a loss because of:
A. the original check.
B. a fraudulent check.
C. a substitute check.
D. a cashier’s check.
Answer:
Under workers’ compensation:
A. the employer is not liable for injuries that occur as the result of negligence by
another worker.
B. the employer is liable for injuries occurring within the scope of employment without
regard to fault.
C. the injuries occurring on the way to and from the job are within the course of
employment, for which damages may be recovered.
D. general damages for pain and suffering, and punitive damages for employer
negligence, are also available.
Answer:
Short-term debt instruments are called:
A. par mechanisms.
B. notes.
C. debentures.
D. bonds.
Answer:
State power is restricted by:
A. procedural due process clause.
B. the Commerce Clause of the U.S. Constitution.
C. the equal protection clause.
D. due process and equal protection scrutiny.
Answer:
According to the LMRA, which of the following is an example of unfair labor
practices by the employer?
A. Setting excessive initiation fees under a union shop agreement.
B. Coercing an employee to join a union.
C. Coercing an employee in the selection of representatives for collective bargaining.
D. Establishing or dominating a labor union.
Answer:
The Equal Credit Opportunity Act:
A. is designed to protect consumers from unfair or inaccurate credit reporting.
B. requires online ads for free credit reports to disclose whether the consumer must buy
credit monitoring or other products or services to get the report.
C. prohibits discrimination in credit transactions on grounds of sex, marital status, race,
color, religion, national origin, and age.
D. sets forth basic privacy protections that must be provided by financial institutions
and requires them to respect the privacy of their customers’ nonpublic personal
information.
Answer:
A commercial unit is:
A. comprised of any unit of goods, even set of articles that is treated by commercial
usage as a single whole.
B. comprised only of single articles treated by commercial usage as a single whole.
C. comprised only of set of articles contained in a commercially recognized
measurement (such as a bushel, ton, or truckload).
D. comprised of units of articles which can also be accepted as one single article.
Answer:
Which of the following is a remedy for fraud?
A. Rescission of the contract by the buyer.
B. Disaffirming the contract and then suing in tort for damages resulting from the fraud.
C. Ratification of the contract by the buyer.
D. Restitutionary damages.
Answer:
When an agreed-on result is obtained by the agent and the principal does not benefit:
A. the agent will not be paid.
B. the agent is entitled to be paid.
C. the agent must return any pay to the principal.
D. the agent may only recover the expenses incurred, not the actual compensation.
Answer:
When a number of people have a right or claim against the same defendant, growing
out of essentially the same set of facts, a(n) _____ may be brought by any one of them.
A. class action
B. suit
C. litigation
D. appellate
Answer:
Patty buys a Persian rug from James, a plumber, in an online auction. James called
Patty on Wednesday to inform her that she submitted the winning bid and that he would
ship the rug to her on Friday. On Thursday, the rug was destroyed in a garage fire at
James’ house. Who bears the loss?
A. James, as he has not delivered the goods.
B. James, as he has tendered delivery of goods.
C. Patty, as James is not a merchant.
D. Patty, as James was only providing a service.
Answer:
Marcie works for a large software company as a security analyst. In her free time away
from work, she likes to develop computer games. Who is likely to be considered the
owner of the games that Marcie has developed?
A. The software company
B. Marcie
C. Marcie and the software company jointly own the games Marcie develops
D. The person who uses the game first
Answer: