If a written lease does not state the length of the lease term, the lease is
a. unenforceable.
b. enforceable for one year.
c. considered complete in spite of the omission.
d. considered a tenancy at sufferance.
Recording a deed is done primarily to protect the
a. county clerk.
b. buyer.
c. seller.
d. buyer’s attorney.
A homeowners policy covers loss caused by
a. fire.
b. explosion.
c. burglary.
d. all of these.
When a debtor and a creditor are in agreement about how much money is owed, the
debt is said to be
a. liquidated.
b. pre-existing.
c. unliquidated.
d. adequate.
If a person owes several people money, that person can give each of the creditors part of
the total amount owed. If this arrangement is agreed to by all creditors, it is called
a. a pledge.
b. promissory estoppel.
c. a composition of creditors.
d. past consideration.
Gerber, a Georgia merchant who sells toys, placed a telephone order for fifteen dozen
toy computers from NCE, a wholesaler of toys in Cleveland, Ohio. NCE sent Gerber a
signed invoice for the toy order (written confirmation), giving details of their oral
agreement. The oral (telephone) contract will be enforceable
a. if it would be unreasonable not to enforce it.
b. if Gerber does not send NCE a written objection to the contents of the invoice within
ten days of receipt of the invoice.
c. under no circumstances.
d. if the courts say that this case is governed by common law.
An agent may be personally liable to third parties on a contract if
a. the agent assumes liability.
b. the agent signs a negotiable instrument in his or her own name and issued by the
third party on the instrument.
c. the agent acts for an undisclosed principal.
d. all of these.
Partners in a general partnership have a right to
a. share in partnership profits.
b. participate in management.
c. share in the ownership of partnership property.
d. all of these.
Farnsworth has an instrument which was made “Payable to bearer.” She loses the
instrument, but it is found by Mellon. Mellon may
a. collect payment on the instrument.
b. not collect payment because he gave no value for it.
c. not collect payment on the instrument because he only found it.
d. none of these.
If the seller breaches a contract for the sale of goods by not delivering them to the
buyer, the buyer may demand that the seller deliver the goods described in the sales
agreement if
a. the goods are very common.
b. the goods are unique or there are no suppliers of equal quality.
c. the buyer first brings a lawsuit.
d. there is no other remedy available to the buyer.
Marilyn celebrates her 18th birthday and decides that she no longer wishes to keep a car
that she bought when she was 17. Her right to disaffirm will depend on whether
a. the car is in good condition.
b. she acts within a reasonable period of time after reaching majority.
c. the other party has the right to disaffirm the contract.
d. none of these.
Damage to one’s car caused by an accident would be covered by
a. no-fault insurance.
b. uninsured motorist coverage.
c. inland marine coverage.
d. none of these.
The employer-employee relationship
a. may be created by contract.
b. may be subject to collective bargaining.
c. is subject to state and federal laws.
d. all of these.
The general rule is that an employer may fire an employee
a. for any reason at any time.
b. for good cause.
c. only upon notice to the employee.
d. only after a period of time established by state law.
Of the following, the type of discrimination that is not prohibited under the Civil Rights
Act is that based on
a. race.
b. religion.
c. handicap.
d. national origin.
When Wilson finished painting Bryan’s house, Bryan paid her the agreed price. The
contract was discharged by
a. accord and satisfaction.
b. novation.
c. full performance.
d. mutual agreement.
An illustration of common law is
a. the constitution of a particular state.
b. the Constitution of the United States.
c. a statute enacted by a legislative body.
d. decisions of federal and state courts.
A person who dies without a will is said to have died
a. per stirpes.
b. per capita.
c. testate.
d. intestate.
If leased property is condemned, whether or not the tenant will be compensated
depends upon
a. state law.
b. the terms of the lease.
c. the goodwill of the landlord.
d. none of these.
If the purpose of a licensing statute is to raise money, an agreement with an unlicensed
person is
a. void.
b. valid.
c. unenforceable.
d. voidable.
At least two witnesses are required for a will to be valid.
How are negotiable instruments negotiated?
Blackmail is another name for the crime of embezzlement.
The grand jury’s accusation will set the stage to send the accused to
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A bailment by necessity is a constructive bailment.
All debtors must receive credit counseling before they can file for bankruptcy.
Damages resulting from cyber torts are primarily reputational or economic.