Under the UCC, when acceptance is made expressly conditional on agreement to new
terms and the parties begin performance:
A. a contract is created.
B. no contract is created.
C. only a written stipulation will make the contract enforceable.
D. mere silence on the part of the offeree when new terms are added is not an
acceptance.
Answer:
Which of the following statements is TRUE about accession?
A. Accession is the intermixing of goods belonging to different owners in such a way
that the goods cannot later be separated.
B. Even if work is done on personal property without the consent of the owner, he has
to reimburse for the improvements.
C. Usually the person who improved the property in good faith is entitled to recover the
cost of the improvement made to it.
D. Under accession, the owner of the original property generally doesn’t become the
owner of the improvements.
Answer:
A lawn and garden store agreeing to sell only Brand A lawn mowers is an example of:
A. a requirements contract.
B. an exclusive dealing contract.
C. a tie-in contract.
D. price discrimination.
Answer:
To obtain the protection of the business judgment rule, a director must meet certain
requirements in arriving at his/her decisions. He/she must:
A. make an informed decision; be free from conflicts of interest; and must have a
rational basis for believing that the decision is in the best interests of the corporation.
B. make a subjectively rational decision that is based on a cost benefit analysis.
C. make an informed decision that promised to make the corporation a substantial
profit; the decision need not be objectively rational, only subjectively rational.
D. use the court’s business judgment for all of the corporation’s matters.
Answer:
Which of the following is an example of procedural law?
A. Receiving food stamps
B. Rules as to how a court’s decision is to be enforced
C. The right of self-defense
D. The freedom of speech granted by the U.S. Constitution
Answer:
Which of the following is a basic purpose for making exceptions to the UCC’s general
rules on titles and third parties?
A. To protect the rights of sellers.
B. To place the burden of loss on the good faith purchasers.
C. To promote commerce by giving buyers the knowledge that they will get good value
for goods they will purchase.
D. To protect those who innocently buy from merchants, thereby promoting confidence
in such commercial transactions.
Answer:
One of the major functions of NLRB is to conduct elections for employees. Identify the
correct statement regarding the election process.
A. An election is held after a petition is filed with the NLRB only by the employer.
B. More than one union must always be present on the ballot for the election to take
place.
C. The group of employees allowed to vote by the board is called the bargaining unit.
D. The exclusive bargaining representative for the unit represents only the employees of
the unit who voted for them.
Answer:
In the management of an LLP:
A. only some partners have a say in its management.
B. management decisions cannot be altered even by agreement.
C. new partners can join without the consent of the other partners.
D. new partners cannot join without the unanimous consent of all partners.
Answer:
McDonald’s runs its business through ____.
A. limited partnership
B. sole proprietorship
C. S corporation
D. franchising
Answer:
There is no voluntary consent in a mutual mistake if:
A. there is a confidential relationship.
B. the mistaken party is able to rescind under certain conditions.
C. the plaintiff is induced to make an unfavorable agreement.
D. there is unTRUE belief by both parties about a material fact.
Answer:
To be enforceable, most states require that a lease must be in writing:
A. if it is for a term of more than three months from the date it is made.
B. if it is for a term of more than one month from the date it is made.
C. if it is for a term of more than one year from the date it is made.
D. if it is for a term of more than six months from the date it is made.
Answer:
Conversion of an instrument:
A. is an authorized assumption and exercise of ownership over it.
B. may occur if a person pays an instrument on a forged indorsement.
C. differs from conversion of personal property with respect to the applicable laws.
D. occurs only if it lacks indorsement necessary for negotiation.
Answer:
When the security interest is perfected and the buyer knows of its existence, a buyer in
the ordinary course of business:
A. is subject to the security interest created by his seller.
B. takes free from a security interest created by his seller.
C. takes free from a security interest only if the person is buying farm products from a
person engaged in a farming operation.
D. is not protected if the dealership is in default of its loan agreement.
Answer:
A landlord has the duty:
A. to ask the tenant to maintain common areas.
B. not to commit waste on the property.
C. to use reasonable care in performing repairs.
D. to get the property in as good a condition as it was when leased.
Answer:
Independent contractors:
A. are under the control of their employer/principal as to both the objective of their
work and the means used to achieve it.
B. are under the control of their principals as to the result that is to be achieved, but not
as to the means used to accomplish that result.
C. do not maintain their own inventory of goods; instead, they take orders on behalf of
their principal.
D. just bring the parties together rather than actually negotiating a contract of sale.
Answer:
The “Convention on Cybercrime” obligates participating countries to:
A. disclose private information to government agents.
B. create a “do-not-e-mail registry.”
C. outlaw commercial copyright infringement.
D. charge offenders for misdemeanor.
Answer:
The test of an agent’s implied authority is:
A. the justifiable belief of the agent.
B. the specific language the principal used in granting the authority.
C. to determine whether the authority is also apparent.
D. the technical label given to an agent.
Answer:
If Jack is a surety for John, Jack’s right to reimbursement would include:
A. the right to any collateral in the possession of the creditor.
B. the right to recover from the principal the costs paid on the principal’s obligation.
C. the right to recover costs plus interest paid on the principal’s obligation.
D. all the rights that the creditor had.
Answer: