The liability of stockholders for the debts of the corporation is
a. limited to the amount invested.
b. determined by the number of shares owned.
c. unlimited.
d. nonexistent.
The power of courts to hear and decide a case is known as
a. jurisdiction.
b. constitutionality.
c. judicial review.
d. accommodation of interests.
An agreement in which a purchaser of land pays for it over a period of time and
receives title only upon making the final payment is known as a(n)
a. mortgage.
b. escrow agreement.
c. land contract.
d. collateral agreement.
A valid gift requires a
a. delivery of the gift.
b. an intention to make it.
c. recording the gift in a public office.
d. both a and b.
To qualify as a holder in due course, the holder must take the instrument
a. for value.
b. in good faith.
c. without knowledge that the paper might be overdue.
d. under all of the circumstances stated above.
The principal purpose of cross-examination in a civil trial is to:
a. reveal defects in the testimony of a witness.
b. show that the witness is committing perjury.
c. compel the witness to admit his/her biases.
d. prove that the witness is incompetent to testify.
Oral contracts
a. are unenforceable.
b. are just as valid as written contracts.
c. for the sale of real property are valid.
d. are easier to prove in court than are written contracts.
An agent’s scope of authority generally includes
a. implied authority.
b. apparent authority.
c. express authority.
d. all of these.
Medicare offers health insurance to
a. disabled persons under 65 years of age.
b. all persons over age 65.
c. all of these.
d. none of these.
The most heavily regulated industry in the United States is the
a. airline industry.
b. securities industry.
c. pharmaceutical industry.
d. television industry.
An example of a personal defense is
a. minority.
b. forgery.
c. lack of consideration.
d. illegality.
A partnership is considered to be a legal entity for the purpose of
a. ownership of property.
b. federal taxes.
c. liability to others.
d. none of these.
The defenses to intentional torts are
a. consent, privilege, necessity, and truth.
b. consent, privilege, and foreseeability.
c. privilege, foreseeability, and truth.
d. truth, proximate cause, and consent.
The statute of frauds requires a written agreement for sales of merchandise costing
a. $250 or more.
b. $400 or more.
c. $500 or more
d. over $750.
Before an unsecured creditor can seize a debtor’s property and sell it to satisfy a debt,
the creditor must first obtain a(n)
a. repossession order.
b. assignment.
c. replevin.
d. judgment.
Stebbins transferred a promissory note to Hall when the note was past due. Hall knew
that the note was past due. This transfer
a. did not make Hall a holder in due course.
b. relieved the maker from liability.
c. limited the maker’s liability.
d. gave Hall better title than Stebbins held.
The guarantees contained in a warranty deed are called
a. escrows.
b. covenants.
c. easements.
d. guarantees.
Consumers have the right to change their minds about door-to-door sales and to cancel
the contract within
a. 3 days.
b. 5 days.
c. 15 days.
d. 30 days.
What precautions should merchant sellers take to protect themselves against consumers
who legally challenge contract terms formed online?
A(n) ____________________ is a course of action available to an injured party to
obtain satisfaction for a breach of contract.
If no time for performance is stated in a contract, the contract must be completed within
a(n) ____________________ time.
The statement “I would like to sell my computer for $750” is a valid offer.
Price fixing among businesses is legal as long as it results in lower costs.