Which of the following parties has the power to bind an organization to a contract?
a. A soliciting agent for the organization.
b. A contracting agent for the organization.
c. A sales agent for the organization.
d. None of the above.
The Equal Pay Act:
a. does not allow variances in wages pursuant to a seniority system.
b. generally requires that members of both sexes be paid equally for equal work.
c. prohibits all variations in wage rates paid to men and women.
d. all of the above.
If the principal revokes the agency:
a. the agent€s authority to act for the principal is terminated immediately.
b. the right of the agent to bind the principal to third persons generally ends
immediately upon the termination of the agent€s authority.
c. the termination is not effective until notice is given to third parties.
d. all of the above.
When the effect of an antitrust violation is to raise prices:
a. damages are automatically considered doubled.
b. each plaintiff must sue individually.
c. imprisonment for the guilty is mandatory.
d. the state attorney general may bring a class action suit for damages.
A(n) ______________ principal is liable for a simple contract made by an authorized
agent.
a. partially disclosed
b. undisclosed
c. both a. and b.
d. neither a. nor b.
Under the Uniform Commercial Code (UCC), a firm offer applies to:
a. a written, signed offer by a merchant to buy or sell goods.
b. an unwritten but definite offer to buy or sell goods.
c. a written, signed offer by anyone to buy or sell goods.
d. an unlimited, stipulated period of time.
A(n) __________ is an unauthorized change or completion of a negotiable instrument
designed to modify the obligation of a party to the instrument.
a. alteration
b. modification
c. transformation
d. transmutation
Which of the following situations create(s) an exception to the statute of frauds writing
requirement?
a. non-resellable goods
b. receipt and acceptance
c. Payment
d. all of the above
The __________ rule allows management immunity from liability for corporate acts
where there is a reasonable indication that the acts were made in good faith and with
due care.
a. sovereign immunity
b. business judgment
c. reasonable director
d. good faith
Holders of automobile dealership franchises are protected from bad faith termination of
their dealerships by the:
a. Sherman Antitrust Act.
b. Robinson-Patman Franchise Act.
c. Automobile Dealers’ Day in Court Act.
d. Franchise Holder Protection Act.
If a check is made payable to Paolo, and Paolo signs on the back of the check, Paolo is:
a. the payee and the indorser.
b. the drawee and the indorser.
c. the payee and the endorsee.
d. only the indorser.
Which of the following is a permissive subject of bargaining as opposed to a mandatory
subject of bargaining?
a. wages
b. hours
c. benefits for already retired workers
d. no-strike no-lockout clauses
Generally, a secured creditor who has repossessed collateral may retain the collateral
and cancel the debt.
The rights of a third-party beneficiary always can be destroyed without that
beneficiary’s consent.
UCC Article 2 applies not only to contracts for the sale of familiar items of personal
property, such as automobiles or chairs, but also to the transfer of commodities, such as
oil, gasoline, milk, and grain.
Megan owns a manufacturing business in a nonattainment area under federal air
pollution law. She wishes to triple the size of the manufacturing operation using land
she just purchased next to her current location. What must Megan demonstrate in order
to secure a permit to operate in the nonattainment area?
Bills of lading for intrastate shipments are governed by the UCC, while those for
interstate shipments are regulated by the Federal Bills of Lading Act.
Under the Bankruptcy Reform Act, the allowable homestead exemption for debtors was
significantly reduced.
The Constitution took certain powers away from the national government and gave
them to the state governments.
In the absence of an agreement for the extension of credit to the buyer for the purchase
of goods, and until the buyer pays for the goods or performs whatever actions the
contract requires, the seller has the right to retain possession of the goods.