In which of the following scenarios is the agent exposed to the greatest risk of liability?
a. disclosed principal and authorized contract
b. undisclosed principal and authorized contract
c. partially disclosed principal and authorized contract
d. authorized receipt of money from third person remitted to disclosed principal
Many states provide that a lease for a term exceeding __________ must be in writing.
a. three (3) months
b. six (6) months
c. one (1) year
d. three (3) years
Which of the following is not a third-partybeneficiary contract?
a. a contract in which A hires B to give A’s niece piano lessons
b. a contract to repair sewers in front of Macy’s Department Store
c. a life insurance contract with a named beneficiary
d. a contract between X and Y for Y to install a new door on Z’s home
Perjury occurs:
a. only in federal court.
b. only in written form.
c. only in state courts.
d. none of the above.
An agreement that consists of two or more parts and calls for corresponding
performances of each part by the parties is called a:
a. partial contract.
b. divisible contract.
c. performance contract.
d. divided contract.
Which of the following powers is not available to the SEC pursuant to the Remedies
Act?
a. The SEC may start administrative proceedings against any person or entity regulated
by the SEC.
b. The SEC may start administrative proceedings against any person or entity not
regulated by the SEC.
c. The SEC may order an accounting and disgorgement of ill-gotten gains.
d. All of the above powers are available to the SEC under the Remedies Act.
______ is a body of law that provides justice when the law does not offer an adequate
remedy.
a. Ethics
b. Regulations
c. Equity
d. None of the above.
If a breach of the peace might occur:
a. self-help repossession is the only option available to obtain the collateral.
b. the creditor must use court action to obtain the collateral.
c. the creditor is barred from repossessing the collateral.
d. the collateral reverts to the debtor.
A contract provision stating that one of the parties shall not be liable for damages in
case of a breach is called a(n) __________ clause.
a. liquidated damages
b. exculpatory
c. waiver.
d. due process
The maximum amount of time that a minor has to disaffirm a contract is:
a. one year from the date of the agreement.
b. 30 days from learning of his or her right to disaffirm.
c. the age of majority.
d. a reasonable period of time after reaching the age of majority.
Under collective bargaining:
a. groups of employers meet to draw up contracts for all of their employees.
b. representatives of the employees bargain with a single employer or a group of
employers for an agreement on wages, hours, and working conditions for the
employees.
c. groups of employees meet to dictate the terms of employment to their employers.
d. none of the above.
A __________ agent is authorized by the principal to do all acts that can be delegated
lawfully to a representative.
a. special
b. general
c. secret
d. universal
If the trustee breaches the trust, which of the following remedies might be available?
a. a money judgment
b. an injunction
c. a criminal prosecution
d. all of the above
In a __________, no sale takes place (meaning there is no transfer of title) until the
buyer accepts the goods.
a. conditional sale
b. contingency sale
c. sale or return
d. sale on approval
Crimes are generally defined and their punishments specified by:
a. trial court judges.
b. appellate judges.
c. codes and statutes.
d. the United States Constitution.
If there is a consolidation of corporations A, B, and C:
a. corporations B and C are absorbed into corporation A, and corporation A continues to
exist.
b. all of the corporations continue to exist.
c. all corporations continue to exist, but corporation A owns all of the stock of
corporations B and C.
d. corporations A, B, and C cease to exist, and a new corporation with the property and
assets of the old corporations comes into being.
Odometer fraud laws:
a. impose the same standards on both private sellers and auto dealers.
b. allows the buyer to collect twice the actual loss from the fraud.
c. limits the total loss the buyer can collect to $1,500.
d. all of the above.
A corporate officer, while still employed by his or her firm, may be in breach of the
officer€s fiduciary duty of __________ by recruiting key management employees to
join a competing company.
a. obedience
b. loyalty
c. conflict of interest
d. confidentiality
To enforce an implied warranty of an indorser, the party claiming under the warranty
must give the indorser notice of the breach within fourteen (14) days after the claimant
learns or has reason to know of the breach and the identity of the indorser.
When a surety pays a claim that it is obligated to pay, it automatically acquires the
claim and the rights of the creditor which is known as subrogation.
A letter from a collection agency to a consumer that gives the impression a lawsuit is
about to be brought against the consumer when in fact it will not be brought is not a
violation of the Fair Debt Collection Practices Act.
Within each state in the United States, only one constitution is in force.
For the past century, the United States Supreme Court has generally followed the
“living document” view in interpreting the Constitution.
Contribution is the right of a co-obligator to demand that other obligator(s) pay their
fair share of the debt.
The purchase of a warehouse receipt by due negotiation eliminates all prior claims.
Partnership agreements allow individuals to conduct their business without the
requirement of a formal organizational structure.
Through incorporation by deference, a contract can consist of both the original
document and the detailed statement that is incorporated in it.
Consumer protection statutes may require a writing that is more detailed than the
writing required by the statute of frauds provision of the Uniform Commercial Code.