The Americans With Disabilities Act applies to private employers when:
a. they have federal contracts.
b. they have demonstrated past practices of discrimination.
c. they have fifteen (15) or more employees.
d. they have state contracts.
A written stop payment order or confirmation is effective for:
a. fourteen (14) days.
b. thirty (30) days.
c. six (6) months.
d. one (1) year.
A payee has no rights in an instrument until:
a. the drawer or the maker has delivered the instrument to the payee.
b. an acceptor has been established.
c. an accommodation party has signed the instrument.
d. a guarantor has signed the instrument.
For property insurance, an insurable interest must exist:
a. at the time the policy is purchased.
b. at the time of the loss.
c. both at the time the policy is purchased and at the time the loss is sustained.
d. for at least thirty (30) days before the loss is sustained.
Which of the following allows a domestic firm to maintain the greatest control over its
foreign operations?
a. wholly-owned subsidiaries
b. licensing
c. foreign distributorships
d. agency arrangements
A bank will not be liable for payment of a check on which the drawer’s signature has
been forged if:
a. the bank could not have detected the forgery through a reasonable investigation.
b. there are more than two prior indorsers of the check.
c. the bank gives a cashier’s check in payment of the depositor’s check.
d. the drawer’s negligence contributed substantially to the forging of the signature.
A contract is created by which the terms are stated to be for consideration in the amount
of $3,000. If typewritten in the contract is the term “four thousand dollars,” while the
amount of $3,000 is printed within the form:
a. the contract will be interpreted to be for $3,000.
b. the contract will be interpreted to be for $4,000.
c. there is a contract but the courts will not specify the dollar amount, as a conflict
exists.
d. a compromise settlement amount of $3,500 will be used.
All of the following statements refer to an element of fraud except:
a. the defendant desired to obtain a financial benefit.
b. the defendant made a false statement.
c. the defendant knew that the statement was false or was recklessly indifferent
regarding its truth.
d. the defendant intended for the other party to rely on the false statement.
An administrative agency can be created to perform:
a. only one of the three functions of government (executive, legislative, or judicial).
b. any two of the three functions of government.
c. all three of the functions of government.
d. none of the three functions of government.
The widest range of tort liability arises in the area of:
a. negligence.
b. absolute liability.
c. violation of statute.
d. assumption of risk.
When parties intend to negotiate an order instrument but the holder fails to indorse it:
a. there is no negotiation.
b. the transfer has the effect of a contract assignment .
c. the transferee has the right to require the transferor€s indorsement if consideration
was given.
d. all of the above.
A codicil:
a. must be executed with the same formalities as a will.
b. is treated the same as a will.
c. does not invalidate the entire will.
d. all of the above.
Ownership of shares of stock may be transferred by any of the following methods
except:
a. delivery of the stock endorsed by its owner in blank.
b. delivery of a notice of intent to transfer.
c. delivery of the stock endorsed by its owner to a specified person.
d. delivery of the certificate and a separate power of attorney executed by the owner.
When a business owner uses an independent contractor to perform nonhazardous work,
the owner ordinarily is:
a. not liable for harm to third persons or their property.
b. not bound to contracts made by the independent contractor.
c. not liable for the negligence of employees of the independent contractor.
d. all of the above.
A change of law discharges a contract if the new law:
a. requires a license and none was required before.
b. requires the use of fireproof materials.
c. requires the use of antipollution devices.
d. prohibits the act called for by the contract.
When a tenant remains in possession after the termination of the lease without
permission of the landlord, the landlord may treat the tenant as either a trespasser or a
tenant. Until the landlord elects to do one or the other, a tenancy __________ exists.
a. at sufferance
b. at will
c. for years
d. from year to year
A seller may cancel a sales contract if the buyer:
a. wrongfully rejects the goods.
b. repudiates the contract.
c. fails to make a payment due on or before delivery.
d. all of the above.
If a liquidated damages clause demands an unusually large sum that is not related to
reasonably-anticipated actual damages, the clause will be held to be void as a(n):
a. penalty.
b. unliquidated damages clause.
c. Extortion
d. Blackmail
The scope of an agent’s authority may be determined from the:
a. express words of the principal.
b. words or deeds of the principal.
c. customs of the trade or business.
d. all of the above.
When a written contract does not correctly state the agreement already made but the
parties either party make seek a(n):
a. rescission
b. injunction
c. reformation of the contract
d. action for specific performance
The Fair Credit Reporting Act applies only to consumer credit.
If questions of fact are involved, the court will decide the case based on the pleadings
alone.
A preincorporation subscription to stock is generally treated as an offer to the
corporation to buy the stock when the corporation is formed and the stock is thereafter
issued.
Instruments are always negotiable.
Presentment occurs when the primary party refuses to pay an instrument according to
its terms.