Under the UCC, a(n)___is a sequence of previous conduct between the parties to an
agreement which may befairly regarded as establishing a common basis of
understanding for interpreting their conduct under the contract.
a. course of dealing
b. usage of trade
c. course of performance
d. integrated document
Traditionally, labor law opposed concerted activities by workers to obtain higher wages
and better working conditions, and at various times such activities were found to
constitute criminal conspiracy, tortious conduct, and violation of antitrust law.
a. True
b. False
Constructive notice of termination of an agency may not occur by mere publication in a
newspaper.
a. True
b. False
Samuel writes to Emma authorizing her to sell his automobile for $3,000. Emma,
although she has no authority to delegate this task, asks Renaldo to try to sell the car. If
Renaldo makes a contract with Michelle for the sale of the car, Samuel is not obligated
to sell to Michelle, and Samuel acquires no rights against Michelle.
a. True
b. False
The executor-administrator provision applies to promises of an executor of a decedent’s
will to the decedent’s creditors.
a. True
b. False
Failure to comply with Sections 1 or 2 of the Sherman Act:
a. is a felony and can result in imprisonment.
b. may subject an individual to a fine of up to $1 million under the 2004 amendments.
c. may subject a corporation to a fine of $100 million per violation.
d. All of these.
An administrative agency is created when Congress enacts an enabling statute that
delegates to the agency the power to issue rules, regulations, and guidelines to carry out
its statutory mandate.
a. True
b. False
Baker goes into bankruptcy owing $5,000 as wages to his employees. There is enough
in his estate to pay all costs of administration and enough to pay his employees, but if
the employees are paid, there will be nothing left for the general creditors. Which of the
following is NOT true under the above facts?
a. The Bankruptcy Code provides for priority of wages owed to employees.
b. Secured creditors will be paid to the extent of their security interest before the
employees will be paid.
c. The general creditors will not be paid.
d. The general creditors can be paid before the employees if they file a claim with the
court.
Sareno Cheese Co. supplies mozzarella cheese to pizza restaurants at $1.50 per pound.
In order to snare the business from a pizzeria, Sareno offers to sell them cheese at $1.25
per pound. This will violate the Robinson- Patman Act unless:
a. the pizzeria can already get the cheese for $1.15 elsewhere.
b. Sareno can show it is cost justified because of quantity.
c. Sareno lowers the price to all its customers.
d. Any of these.
If a person is adjudicated insane and placed in care of a guardian, that person’s contracts
are void.
a. True
b. False
Active recruitment of minority applicants to meet hiring goals is termed:
a. reverse discrimination.
b. affirmative action.
c. comparable worth.
d. BFOQ.
One hundred crystal flower vases have been identified to the contract and a down
payment of $1,000 of the $10,000 purchase price has been paid. If the seller becomes
insolvent, the buyer may still pay $9,000 and get the goods.
a. True
b. False
Amendments to Article 2 of the UCC were promulgated in 2003 to reflect
developments in the law and business practices and to accommodate electronic
commerce.
a. True
b. False
In a contract to sell necessaries to a minor, these goods and services are limited to
medical care, food, and shelter.
a. True
b. False
The terms “law” and “justice” are interchangeable.
a. True
b. False
Notice of an assignment:
a. must be given to the obligor.
b. cuts off any defenses based on prior agreements between the obligor and assignor.
c. precludes subsequent setoffs and counterclaims of the obligor that arise out of
entirely separate matters.
d. All of these.
Each party to a contract must intentionally exchange a legal benefit or incur a legal
detriment as an inducement to the other party to make a return exchange.
a. True
b. False
Title VII applies only to employers with 15 or more employees.
a. True
b. False
The common law system of law is used in most of Europe, Scotland, and Latin
America.
a. True
b. False
Which of the following involves a creditor beneficiary relationship?
a. A contract where the insured names a bank with which he has a loan as the
beneficiary of a life insurance policy
b. A contract between an employer and a union representing the employees, which
contract is made for the benefit of the employees
c. A contract between the owner of a building and the contractor stating that the
contractor will pay his employees at a stated rate
d. A contract between a governmental unit and business for services to be rendered to
area citizens
Which of the following is characteristic of contract law during the twentieth century
compared with contract law in the nineteenth century?
a. Privity of contract gained in importance.
b. Many of the formalities of contract formation were relaxed.
c. Contract liability is absolute and escape from liability, once assumed, is rare.
d. There is a narrower view of contract damages.
To be negotiable, the instrument must satisfy all except which one of the following
requirements?
a. It must contain a promise or order to pay.
b. It must be for a fixed amount.
c. It must be written on paper.
d. It must be signed.
The international organization which seeks to stabilize currency exchange is the:
a. United Nations Exchange Branch.
b. International Court of Justice.
c. United States Treasury.
d. International Monetary Fund.
The customary manner of disclaiming the indorser’s contractual liability is to add which
of the following sets of words before or after his signature?
a. For collection only
b. Without recourse
c. Pay to the order of
d. For deposit only
If the court finds misappropriation of trade secrets, it may award the following
remedies:
a. only damages in the amount of the pecuniary loss to the plaintiff caused by the
misappropriation.
b. only damages in the amount of the pecuniary gain to the defendant.
c. treble damages.
d. Either damages in the amount of the pecuniary loss to the plaintiff caused by the
misappropriation. or damages in the amount of the pecuniary gain to the defendant,
whichever is greater.
Dr. David Doright is a professor at a state university. One day he has an argument with
the president of the university over which team should win the next Super Bowl. The
next day, Dr. Doright is fired for incompetence. He sues, claiming the firing is arbitrary
and that he was denied an opportunity to respond to the charges. In this case:
a. Dr. Doright has no right to a hearing since this is not a criminal case..
b. Dr. Doright appears to have been denied the equal protection of the law.
c. the firing by a state university is state action involving a property right that would
entitle Dr. Doright to a hearing and an opportunity to respond to the allegations against
him.
d. the U.S. Constitution does not apply.
If an agent receives a gift from a third person with whom he is dealing on behalf of the
principal, he can keep it without notifying the principal.
a. True
b. False
Mistake by failure to read a document is grounds to void a contract.
a. True
b. False
Which of the following is least likely to be classified as a necessary for which a minor
will be held liable on a contract?
a. A camera
b. School supplies
c. Boots for a snowy climate
d. An automobile
Pre-judgment attachment permits a creditor to seize the debtor’s property when the
defendant:
a. cannot be served with a summons personally.
b. has not paid his debts on time.
c. has filed for bankruptcy.
d. was found guilty of usury.
An offer must be in one particular form to have legal effect.
a. True
b. False