For an implied agency to function, implied authority cannot conflict with express
authority.
A seller’s or lessor’s statement of opinion of the goods does not create an express
warranty.
A contract requires an offer and an acceptance.
The fact that price fixing helps consumers or protects competitors from ruinous
competition can be used as a valid defense against the charge of price discrimination.
If the drawer does not have enough money in his or her account when a properly
payable check is presented for payment, the payer bank is obligated to honor the check
and create an overdraft in the drawer’s account.
An adverse opinion is reflective of a material misstatement or discrepancy in a
company’s financial records.
Limited partners do not participate in the management of the partnership.
The term ________ refers to an action by a buyer or lessor to recover scarce goods
wrongfully withheld by a seller or lessor.
A) revocation
B) replevin
C) accommodation
D) damages
Which of the following is true of a franchise agreement?
A) A franchise application is not necessary to qualify for entering into a franchise
agreement.
B) The Uniform Franchise Offering Circular (UFOC) sets forth the terms and
conditions of the franchise agreement.
C) The terms and conditions of the franchise agreement must always be first drawn by
the franchisee.
D) A franchisee can only obtain a license to use the franchisor’s intellectual property
after entering into a franchise agreement.
Fierra Inc. is a German automobile manufacturer that has a five percent market share in
the United States’ automobile market. The company has a unit in North Carolina that
imports Fierra’s automobiles from its parent company in Germany and assembles them.
Which of the following measures is in accordance with the Foreign Commerce Clause
of the U.S.?
A) The government of North Carolina imposes an additional 10 percent tax on Fierra
cars.
B) The government of Georgia bans the sale of Fierra cars.
C) The government of North Carolina asks Fierra Inc. to shut down its import unit in
the state.
D) The federal government imposes an additional 100 percent tax only on Fierra cars
being sold in North Carolina.
An LLC (limited liability company) that is organized in Alabama and is operating in
Texas with no operations outside the U.S. is considered a ________ in Texas.
A) foreign limited liability company
B) limited liability partnership
C) domestic limited liability company
D) general partnership
A(n) ________ announces a proposed course of action that an agency intends to follow
in the future.
A) interpretive rule
B) operational code
C) substantive rule
D) statement of policy
Which of the following instances depicts the tort of outrage?
A) A farmer’s crops are set on fire by an unidentified miscreant.
B) A gym teacher verbally abuses an overweight kid in every gym class and the kid
suffers severe emotional distress.
C) A cosmetics company uses Julia Roberts’ image without her consent to depict her as
its brand ambassador.
D) A beverage-manufacturer claims that its competitor uses coffee beans of poor
quality.
Marlon intends to sell a piece of real estate he owns and contracts Nita, a real estate
broker, to make the sale. In the contract, Marlon authorizes Nita to make the sale at or
above a minimum price he wants and the date by which he wants the sale to be
completed. The contract also stipulates that Marlon will not hire another broker to sell
that piece of land until the contract period expires. Nita finds a suitable buyer, makes
the sale in time, and is paid by Marlon for her services. Which of the following types of
agency existed between Marlon and Nita?
A) apparent agency
B) agency by ratification
C) implied agency
D) express agency
A(n) ________ is a comprehensive insurance policy that includes coverage for the risks
covered by a fire insurance policy as well as personal liability insurance.
A) homeowners’ policy
B) life insurance policy
C) umbrella insurance
D) omnibus policy
Which of the following is true of an indorsement to multiple persons using the virgule?
A) it can only be indorsed further with the signature of the drawer
B) neither person can individually negotiate the instrument
C) either person can individually negotiate the instrument
D) such an instrument cannot be subsequently negotiated
Which of the following is considered a constructive delivery of a gift?
A) giving the key to a safe-deposit box where the gift is kept
B) paying for the total value of the good being gifted in cash
C) contracting a third party to deliver goods to the donee
D) gifting someone in person to ensure acceptance of the gift
What is a gift inter vivos?
A) a gift that is made in contemplation of death
B) a gift made during a person’s lifetime that is an irrevocable present transfer of
ownership
C) a gift that is to be shared by the donor and donee with the payment of consideration
by the donee
D) a gift that requires a monetary payment at a set date in the future
A(n) ________ refers to a security interest in property that was not in the possession of
the debtor when the security agreement was executed.
A) floating lien
B) after-acquired property
C) attachment
D) future advance
Which of the following is true of the UCITA?
A) It establishes a uniform set of rules that prohibit all forms of cybersquatting.
B) It defines which technologies should be used to create a legally binding signature in
cyberspace.
C) It aims at eliminating all domain names registered in bad faith.
D) It governs the creation, performance, and enforcement for computer information
transactions.
________ are companies that provide consumers and businesses with access to the
Internet.
A) ISPs
B) BPOs
C) DSLs
D) IPOs
Joan reads e-mails from Harold’s personal e-mail folder. Which statute has Joan
violated and why? Under what circumstances is she permitted to read Harold’s e-mail?
What damages are recoverable for a breach of warranty?
What is the passage of title to goods?
List and briefly explain the advantages and disadvantages of a sole proprietorship.
What are altered checks? What are the actions that a bank can take when it encounters a
case of check alteration?
Explain how articles of incorporations may be amended.
What is an agent’s duty to account?