Which of the following stated that a farmer’s production of wheat for use only on his
own farm was held to impact interstate commerce.
A. Gibbons v. Ogden
B. Wickard v. Filburn
C. Hughes v. Wendel
D. Mangus v. Miller
The rule that an innocent party is not permitted to take advantage of a breach by
deliberately raising the level of damages that the other party will have to pay as a
consequence of the breach is known as:
A. duty to mitigate.
B. punitive damages.
C. equitableremedies.
D. specific performance.
In which of the following situations can an agent legally appoint a subagent?
A. When the case involves co-agents.
B. When the appointment is implied from the nature of the employment.
C. When the situation involves a nondelegable duty.
D. When the co-agent demands such an appointment.
Which of the following is true of destination contracts?
A. It requires a seller to turn the goods over to a carrier for delivery to the buyer.
B. Both title and risk of loss pass to the buyer when goods are given to the carrier.
C. Title and risk of loss pass to the buyer once the seller tenders goods at place as per
the contract.
D. The seller bears no responsibility for seeing that the goods reach their destination.
At the conclusion of a tort trial the jury finds the plaintiff about 30% responsible for the
damages she suffered and the defendant about 70% responsible for causing the
damages. The jury determines the actual damages totals to $100,000. How much will
the plaintiff recover under comparative negligence?
A. $50,000
B. $30,000
C. $70,000
D. $100,000
A debtor who continues to run a business and performs most of the functions that a
trustee performs in other types of bankruptcy is called a(n):
A. debtor in bankruptcy.
B. debtor in possession.
C. unimpaired debtor.
D. suspended debtor.
Which of the following statements holds true for the Uniform Electronic Transactions
Act (UETA)?
A. It refers to the physical alteration of network components.
B. It refers to the establishment of the nature of an electronic agent.
C. It refers to the banning of electronic agents for business transaction.
D. It refers to the legitimization of the use of electronic agents.
Ruby’s husband Caleb dies with title to the family home in his name. Caleb’s creditors
want to force the sale of the home to satisfy the unpaid debts. May Ruby prevent this
sale?
A. Not if the debts are legitimate.
B. Yes, with homestead exemption.
C. No if the amount of debts exceeds the fair market value of the home.
D. Yes, with the forced share.
Which of the following is true of a shipment contract?
A. The seller must put the goods in the possession of the carrier.
B. The seller must tender the delivery of goods to the buyer.
C. The seller offers to turn the goods to the buyer, and the buyer offers to pay for them.
D. The seller tenders the delivery of goods to the carrier, along with the document title.
______________________________ is a unified set of statutes designed to govern
almost all commercial transactions.
A. The Uniform Common Law Code
B. The Uniform Commercial Code
C. The Uniform Civil Code
D. The Uniform State Code
If Daphne cashes Lisa’s check what legal rights, if any, does Daphne have?
A. Daphne may insist upon an unqualified indorsement.
B. Daphne may not insist upon any particular type of indorsement.
C. Daphne may insist upon both an unqualified indorsement and a restrictive
indorsement.
D. Daphne may insist upon an unqualified, restrictive and special indorsement.
Joe, driving while intoxicated, caused a traffic accident that killed a passenger in his
car. Joe may be charged with:
A. involuntary manslaughter.
B. first-degree murder.
C. second-degree murder.
D. aggravated murder.
Which of the following is true of the Cooling-Off Rule?
A. It gives consumers an opportunity to change their minds after signing contracts with
people who come to their homes for product sales.
B. It allows sales of consumer goods or services under $25 made at the seller’s place of
business, to be cancelled within three business days after the sale.
C. It requires the seller to give the buyer one copy of a cancellation form, which the
buyer may send to the seller any time before the third business day after the sale.
D. It does not apply to consumer product parties given in private homes and to sales
made in rented hotel rooms or restaurants.
Which of the following is true of laws restricting Sunday business?
A. They invalidate all agreements made on Sunday.
B. They validate agreements made on Sunday for delivery of goods on a business day.
C. They validate agreements made on Sunday if the business in question has closed on
Sunday.
D. They validate agreements made on Sunday requiring performance on a Sunday.
An exclusive control of a market by a business enterprise is a:
A. monopoly.
B. common enterprise.
C. trust.
D. confederation.
Brett offers to dust and vacuum all the rooms in Arlene’s apartment for $45. Arlene says
she will accept his offer if he lowers his fee to $40. Arlene has:
A. made an unequivocal acceptance.
B. made a counteroffer.
C. demonstrated the mirror image rule.
D. entered into an option contract.
An ADR contract clause:
A. must specify the ADR technique that the parties will use in the event of a dispute.
B. can merely state that the parties have the option of using an ADR technique.
C. prohibits the parties from resorting to litigation to settle an issue.
D. requires that the parties follow all ADR procedures with a summary trial.
In which manner can a sales contract be formed?
A. It can be formed only through an oral agreement.
B. It can be agreed orally and signed in front of a witness.
C. It can be only in the written format with all the terms being acceptable to the parties.
D. It can be formed by any method that shows the parties have reached an agreement.
Joseph owes $15,000 to Carmel Enterprises, $8,500 to Vulcan Co., $11,000 to David
and $11,500 to Sigma Enterprises. He has not been making payments on these debts for
the past 20 months. Which of these creditors can force Joseph into involuntary
bankruptcy?
A. Carmel Enterprises only
B. Carmel Enterprises and David only
C. Carmel Enterprises, Sigma Enterprises, David, and Vulcan Co.
D. Sigma Enterprises, David and Vulcan Co. only
What is the primary purpose of the tort law?
A. To prevent and punish criminal offenders.
B. To protect people from being tried twice for the same crime.
C. To compensate for the injured party’s loss.
D. To protect victims’ rights.
_____ is the communication of false and destructive information about an individual
through the use of electronic devices.
A. Cyberdisparagement
B. Cyberinvasion
C. Cyberdefamation
D. Cybermining
Mercedes receives a box of unordered office supplies in the mail. What is her legal
obligation?
A. She must return it.
B. She must report this to the local postal inspector.
C. She must pay for it.
D. She may consider it a gift.