Consumers have the responsibility to examine periodic statements provided by their
financial institutions. If a loss would not have occurred but for the failure of a consumer
to report within __________ of the transmittal of the statement any unauthorized
transfer, the loss is borne by the consumer.
a. fourteen (14) days
b. thirty (30) days
c. sixty (60) days
d. six (6) months
Nonprofit corporations:
a. are also known as a eleemosynary corporations.
b. are organized for charitable or benevolent purposes.
c. include hospitals and universities.
d. all of the above.
The damages that are typically recoverable when a contract has been breached and one
party has suffered loss are called:
a. punitive damages.
b. emotional distress damages.
c. compensatory damages.
d. liquidated damages.
A crime generally consists of:
a. an act or omission.
b. a mental state.
c. a mental state and an act or omission.
d. a mental state, an act or omission, and harm.
A buyer may reject a tender of delivery:
a. if the goods do not conform to the contract in some way .
b. only if the goods have a substantial defect.
c. unless the seller promises to cure the defective tender.
d. unless the goods have been sold on credit.
The statute of frauds applies to:
a. the lease of an apartment on a month-to-month basis.
b. the cancellation of a written agreement for the sale and purchase of land.
c. an employment agreement.
d. the sale of goods priced at less than $500.
The __________ lending market makes loans to consumers who have bankruptcies, no
credit history, low-to-moderate incomes, or a poor credit history.
a. subprime
b. subterranean
c. suboptimal
d. optimus prime
The Fifth Amendment to the United States Constitution€s protection against
self-incrimination applies to:
a. individuals only.
b. corporations only.
c. both individuals and corporations.
d. individuals, but only in their official capacity within a business.
The Immigration and Naturalization Act (INA) sets forth criminal and civil penalties
against employers who knowingly hire illegal aliens.
Unless language or circumstances indicate the contrary, a general assignment is:
a. a transfer of property only.
b. both a transfer of rights and a delegation of duties.
c. a delegation of duties only.
d. a transfer of rights only.
Judicial Triage:
a. is a court management tool.
b. results in some cases being expedited.
c. results in some cases being postponed.
d. all of the above.
Which of the following statements is true?
a. Felonies are punishable by a minimum of six months in prison.
b. Felonies involve white-collar crimes only.
c. Felonies are more serious than misdemeanors.
d. All of the above.
Trespass to personal property requires:
a. the personal property to be connected to real property.
b. destroying the personal property.
c. the invasion of personal property regardless of whether the owner grants permission.
d. the invasion of personal property without the permission of the owner.
The Utilitarian Theory:
a. holds that we all act in our own self-interest.
b. is based on doing the most good for the most people.
c. resolves ethical dilemmas according to time and place.
d. believes that solving ethical dilemmas requires training
Which of the following is true?
a. An agent has the power to contract on behalf of a principal.
b. An employee generally does not have the power to contract on behalf of the
employer.
c. An independent contractor controls the work he or she performs.
d. All of the above are true.
Where a corporation is properly formed, it is called a corporation:
a. di giorno.
b. de facto.
c. de jure.
d. by estoppel.
A voluntary petition in bankruptcy may be filed by a(n):
a. husband and wife.
b. railroad company.
c. insurance company.
d. all of the above.
In an action by a third party against the buyer that is based on the seller’s breach of
warranty, the buyer must give notice of the action to the seller.
Case law consists of the rules and regulations parties agree to as part of their contractual
relationship.
King Electronics, a retailer of video equipment, sold two DVRs to Larson, a
psychologist, for use in her professional practice, which was located in her home. The
sale to Larson was made on credit. King retained a security interest in the DVRs sold
but did not file a financing statement. Mills, another creditor of Larson, has asserted
that his lien on the two DVRs is superior to King’s security interest. Is he right? As you
decide, remember to classify the DVRs as collateral in the hands of King and Larson.
The Federal Register lists all administrative regulations, presidential proclamations, and
executive orders on a semiannual basis.
A unilateral mistake as to a fact does not affect the contract when the mistake is
unknown to the other contracting party.
Attachment provides creditors with rights.