The formation of contracts in cyberspace is governed today largely by:
a. international contract law principles.
b. traditional contract law principles.
c. federal contract law principles.
d. uniform state laws.
The right to privacy applies to protect you from unreasonable searches:
a. to you personally.
b. to your home.
c. to your business.
d. all of the above.
Delivering stock to a creditor as security for a debt owed by the shareholder:
a. transfers ownership rights.
b. gives rise to a perfected security interest.
c. makes the creditor a perfected party after filing.
d. makes the debtor a perfected party after filing.
An instrument may be negotiated even though:
a. it has been dishonored.
b. it is overdue.
c. it is demand paper that has been outstanding for more than a reasonable period of
time.
d. all of the above.
I believe that I own a very valuable vase. I tell you this information and state that I will
sell it to you for $800. I sell the vase to you, and you later find out that the vase is worth
only $200. Fraud:
a. has occurred.
b. has not occurred.
c. can always be based upon a statement of opinion or value.
d. none of the above.
John’s son was not his agent but contracted to purchase a computer in the name of John.
When John learned of this, John sternly rebuked his son but continued to use the
computer for several weeks. After losing interest in the computer, John offered to return
it, saying that the purchase was unauthorized. John:
a. is not liable on the purchase.
b. expressly ratified the purchase.
c. is liable because all children have the apparent authority to contract for their parents.
d. ratified the purchase by John’s conduct.
If shipped goods are damaged or destroyed after risk of loss passes:
a. the contract is avoided
b. the seller has breached the contract
c. the buyer has the option to accept or not accept the goods
d. it is the buyer’s loss
A contract to build a house is deemed performed when:
a. there has been substantial performance of the contract.
b. the house is approved by the city housing inspectors.
c. the house is approved by the owner’s architect.
d. the house is approved by the owner.
When a state statute requires a security interest in a motor vehicle to be noted on the
certificate of title, the security interest is perfected:
a. by the certificate notation, when a non-inventory motor vehicle is involved.
b. by filing under the UCC, regardless of how the vehicle is classified.
c. by filing under the UCC, when the motor vehicle is inventory.
d. either by the certificate notation or by a UCC filing, depending on how the state
statute defines the term motor vehicle.
A party to a sales contract who is afraid that the other party will not perform may seek
to gain additional confidence by demanding some form of:
a. bailment.
b. security.
c. assurance.
d. assignment.
If a seller delivers defective goods, the buyer does not lose the right to object to the
breach of contract if the buyer:
a. accepts the goods.
b. accepts the goods with a reservation of right.
c. agrees to a modification of the contract.
d. accepts the performance without protest.
The _____ rule(s) on the admissibility of evidence.
a. Judge
b. Jury
c. Attorneys
d. court clerk
Partnership property may consist of:
a. real property only.
b. personal property only.
c. any and all property acquired by the partnership.
d. all property contributed by the partners or acquired for the firm or with its funds.
__________ power relates to a firm€s ability to control price and exclude
competitors.
a. Market
b. Competitive
c. Product
d. Production
When there is full disclosure and representation, promises made in consideration of
marriage:
a. can be written or oral.
b. generally cannot be set aside unless they are unconscionable.
c. are only valid if they are signed after the marriage actually takes place..
d. all of the above.
The unauthorized use of a computer belonging to someone else is:
a. a crime in all states.
b. a crime in some states.
c. not a crime in any state.
d. a crime under federal law only.
The Digital Millennium Copyright Act :
a. made notice of copyrights no longer mandatory.
b. changed the life of a copyright.
c. was enacted to curb the pirating of software and other pirated works.
d. all of the above.
A person entitled to receive money may generally assign that right to another person.
If there is a breach of contract, the law requires that the other party terminate the
contract and bring a lawsuit.
The Railway Express Agency delivered a shipment of goods to Lorraine. Payment for
the goods was made with a certified check, payable to the order of the Railway Express
Agency. The check was drawn by Lorraine on the First National Bank of Detroit. Later,
the bank refused to pay the check when it was presented by Railway Express, the
holder, because the bank had become insolvent and stopped doing business. The
Railway Express Agency sued Lorraine. Lorraine claimed that she was not liable on the
check because it was certified. Is she correct?
Alice, Betty, and Cathy are interested in forming a business venture. Alice is quite
wealthy and is ready to contribute money to the venture. Betty has a degree in business
from an excellent university, worked for five years as a manager in a major corporation,
and currently is a leadership/management consultant. Cathy is a scientist who has
developed a process that will, according to her, €revolutionize cancer treatment
throughout the world.€ Alice, Betty, and Cathy believe it is in their best interest to form
a general partnership. Do you agree? Is there a more appropriate form of business you
might recommend?
Revised UCC Article 3 refers to drawers, indorsers, and accommodation parties as
€secondary obligors.€
If an instrument is negotiable, it is governed by Article 2 of the UCC.
A peremptory challenge to a prospective juror generally can be exercised without
giving a reason.