An item sold at or below cost in order to attract customers is called
a. a rain check.
b. a loss leader.
c. bait.
d. the switch.
Which of the following remedies is not generally allowed in a breach of contract suit?
a. Punitive damages
b. An injunction
c. Rescission
d. Specific performance
Another name for common law is
a. written law.
b. equity law.
c. administrative law.
d. case law.
The determination of a controversy in an arbitration proceeding is called a(n)
a. decree.
b. judgment.
c. award.
d. decision.
Social Security benefits are payable to
a. retired persons.
b. spouses of deceased persons.
c. minor children of deceased parents.
d. all of these.
Rosco, of Salem, New York, purchased 2,500 pounds of spaghetti from the Arco
Corporation of Buffalo, New York, terms FOB Buffalo. Several boxes of spaghetti were
lost in transit. Which statement concerning responsibility for the loss is correct?
a. The Arco Corporation will not suffer the loss because risk of loss passed to Rosco
when the agreement was made.
b. Rosco will suffer the loss because risk of loss passed to him when the goods were
delivered to the common carrier at Buffalo.
c. The Arco Corporation will suffer the loss because risk of loss did not pass to Rosco
until the goods arrived at Salem.
d. Rosco will not suffer the loss because risk of loss did not pass to him until the goods
were delivered to his door.
Consideration can be
a. a benefit to the offeror.
b. a sacrifice by the offeree.
c. performing an act.
d. all of these.
Intangible personal property includes
a. an easement.
b. a road.
c. accounts receivable.
d. books.
A person who pretends to be an agent
a. is personally liable to a third party.
b. binds the principal.
c. binds the third party.
d. has the power of ratification.
The law permitting debtors access to their credit records is
a. The Credit Act.
b. The Fair Credit Reporting Act.
c. The Fair Debt Act.
d. The Fair Debt Collection Practices Act.
Raleigh, age ten, punctured the tires on his neighbor’s car. This act would be classified
as
a. trespass.
b. negligence.
c. assault.
d. battery.
A secured creditor may, if not paid,
a. seize the debtor’s property and sell it at auction.
b. sue the debtor.
c. seize the debtor’s property and sell it at a private sale.
d. all of these.
Notice of the dishonor of a negotiable instrument
a. must be in writing.
b. is necessary to hold a secondary party liable.
c. must be given within ten days.
d. is given to the first indorser first.
In a bailment, the
a. bailor must own the bailed property.
b. bailed property must be personal property.
c. title to the goods is temporarily transferred.
d. bailee must be an adult.
If a seller wishes to reclaim goods sold to a buyer after the buyer has received the
goods, the seller must prove
a. that the buyer received the goods on credit.
b. that the buyer was insolvent when the goods were received.
c. that he or she (the seller) demanded the return of the goods within ten days after the
buyer received the goods.
d. all of these.
To be valid, an agency agreement must be in writing.
Transferring an insurance policy to another person is called a(n)
____________________.
Both an accord and a satisfaction are needed to discharge a contract.
Zeldin bought a used motorcycle from Bikers World. When Zeldin asked the
salesperson about the mileage, the salesperson stated that the motorcycle had been
driven only 3,000 miles, had never been raced, and needed no major engine repairs. In
fact, the cycle had actually been driven over 5,000 miles, had been entered in several
racing contests, and needed major repairs. Zeldin purchased the cycle on the
salesperson’s representations and soon had to pay $200 for major repairs. In a legal
action against Bikers World for fraud, would Zeldin be successful?
If a policy has been in effect for more than two years, the insurance company cannot
cancel the policy for any reason.
A person who forces another to enter into a contract through violence or threats is guilty
of ____________________.