A limited partnership is dissolved
a. when its term ends.
b. by agreement among all partners.
c. by the bankruptcy of a general partner.
d. by any of these.
A trust not set up during the trustor’s lifetime is called a(n)
a. testamentary trust.
b. life insurance trust.
c. inter vivos trust.
d. standby trust.
To be effective against third parties, a financing statement
a. must always be filed in a public office.
b. need never be filed.
c. must be filed if an automobile is involved.
d. need not be filed for a credit sale of business equipment.
Consideration is required for
a. a contract of guaranty.
b. a contract of suretyship.
c. a contract of guaranty and a contract of suretyship.
d. neither a contract of guaranty nor a contract of suretyship.
Failure to perform one’s duty under a contract is
a. an actual breach.
b. illegal.
c. unethical.
d. voidable.
A boardinghouse keeper’s obligations include
a. those of an ordinary bailee.
b. offering accommodations to permanent residents.
c. the right not to accept everyone who applies.
d. all of these.
A group claiming a violation of consumer protection laws may seek redress by bringing
a(n)
a. derivative action.
b. individual action.
c. class action.
d. pro bono proceeding.
Of the following acts, the one that an agent could not perform for a principal is
a. selling a house.
b. voting in an election.
c. buying a car.
d. hiring new employees.
A contract must be written in plain English if it is
a. a consumer contract.
b. for money, goods, or services.
c. for merchandise valued at less than a certain amount.
d. all of these.
Pilati signed a contract to work as a consulting engineer for the Radtech Company
beginning January 1. When Pilati reported to work on January 1, he was told that the
position of consulting engineer had been abolished but that he could have a job in the
marketing department. He refused. His contract with the company is discharged
because of a(n)
a. anticipatory breach by the Radtech Company.
b. material breach by the Radtech Company.
c. anticipatory breach by Pilati.
d. material breach by Pilati.
When a customer presents a merchant with a debit card to purchase goods, the
transaction is called a(n)
a. EFTS transfer.
b. ATM transaction.
c. VISA transaction.
d. POS transaction.
If an agreement is partially legal and partially illegal, the
a. legal part of the agreement may be enforced if it can be separated from the illegal
part.
b. entire agreement is considered to be illegal.
c. entire agreement is considered to be legal.
d. parties to the agreement have a choice of declaring it legal or illegal.
A debt based solely on the debtor’s promise to pay is a(n)
a. secured debt.
b. unsecured debt.
c. lien.
d. garnishment.
The Harrow Health Club placed a clause in a contract with a patron that relieved the
club of liability for intentional wrongdoing by its employees. One evening near closing
time, an employee struck and injured a patron for her (the patron’s) failure to leave on
time. The Harrow Club refused to pay the patron for her injuries because of the
disclaimer of liability clause in the contract. Is the Harrow Health Club liable to the
patron for injuries she (the patron) suffered?
a. No; it was the patron’s fault.
b. No; health clubs generally do not have liability even though they are at fault.
c. Yes; courts will generally not enforce clauses in contracts that attempt to relieve a
contracting party such as the Harrow Club from injuries it caused to another party to the
contract.
d. Yes; courts are generally not sympathetic to health clubs.
When a check is certified, the certifying bank
a. dishonors the check.
b. draws on its own funds.
c. guarantees payment of the check.
d. draws on the funds in another bank.
A Federal Communications Commission restriction on the amount of prescription drugs
permitted on television is an example of
a. administrative law.
b. constitutional law.
c. common law.
d. statutory law.
A written document appointing an agent is a
a. power of attorney.
b. collective bargaining agreement.
c. fiduciary.
d. lien.
The degree of care imposed on a special bailee is
a. great care.
b. slight care.
c. reasonable care.
d. extraordinary care.
Changing the amount on a check is an example of the crime of
a. embezzlement.
b. forgery.
c. extortion.
d. none of these.
____________________ insurance protects the insured and the insured’s family against
a loss of income because of illness or accident.
Jamison orally contracts to sell her house to Fagan. Later, Jamison changes her mind
and refuses to transfer the property. Fagan cannot take legal action against Jamison
because the contract is ____________________.
The person committing a tort is subject to a civil law suit.
Most life insurance policies have a clause that allows the insured to put the policy back
into effect if it lapses because of unpaid premiums.
When a portion of leased premises is transferred to another person, the lease is said to
be assigned.