The willingness of an offeror to enter into a contractual agreement regarding a
particular subject is expressed by a(n):
a. offer.
b. acceptance.
c. contract.
d. agreement.
The goal of the North American Free Trade Agreement (NAFTA) is to eliminate all
tariffs between the United States and Europe.
Regular meetings of shareholders are:
a. held at a time and place set forth in a notice given to all shareholders.
b. held at a time and place prescribed by the articles of incorporation or the bylaws.
c. called by the directors.
d. limited to the election of directors.
Legal issues of Cyberspace include:
a. employment issues.
b. user issues.
c. contract issues.
d. all of the above.
If no time period for performance is specified in a contract:
a. the contract is unenforceable.
b. time shall be of the essence.
c. a reasonable time for performance will be implied.
d. the time for performance will be ignored by the courts.
The buyer may cancel the contract if the:
a. seller fails to deliver the goods.
b. seller has repudiated the contract.
c. goods have been rightfully rejected.
d. all of the above.
Negotiation of bearer paper requires:
a. delivery only.
b. indorsement only.
c. both indorsement and delivery.
d. neither indorsement nor delivery.
A surety that has made payment of a claim for which it was liable as a surety is entitled
to which of the following from the principal?
a. Indemnity
b. Exoneration
c. Assignment
d. Subrogation
If a contract contains a delivery term of __________, the seller€s responsibility is to
get the goods to the buyer.
a. FOB place of shipment
b. FOB place of destination
c. CIF place of shipment
d. CIF place of destination
Dividends are payable in:
a. money.
b. products manufactured by the corporation.
c. shares of other corporations held by the corporation.
d. all of the above.
The Sarbanes-Oxley Act prohibits all corporate loans to directors and executive officers
unless:
a. the company is in the consumer credit business.
b. the loan is to relocate as part of an employment contract.
c. the loan is made to purchase securities.
d. none of the above as all loans are prohibited.
Pursuant to the __________ theory, when a corporation is so dominated and controlled
by shareholders, officers, and/or directors that the separate personalities of the
individuals and the corporation no longer exist and there is a wrongful use of that
control, the courts will disregard the corporate entity so as not to sanction a fraud or
injustice.
a. alter ego
b. altered states
c. puppeteer
d. invisible hand
__________ of the federal environmental laws carry criminal penalties for violations.
a. All
b. Most
c. Very few
d. None
A disclaimer or exclusion of the warranty of merchantability will be invalid if:
a. the goods cost $500 or more.
b. the defects in the goods are obvious to all buyers.
c. it is made at the time of the sale.
d. it is not conspicuously set forth in a writing.
Under the Computer Software Copyright Act of 1980, a written program:
a. must be written in object code in order to be protected.
b. must be written in source code in order to be protected.
c. is protected as any other copyrighted material, even if it is in written form.
d. is protected but does not receive the same protections as other copyrighted materials.
If you allow another person to use your credit card but the person uses the card for a
purpose other than the one you specified:
a. an unauthorized usage has occurred.
b. an authorized usage has occurred.
c. you will not be responsible for more than $50 of the amount charged.
d. both a and c.
The effectiveness of an exception to coverage is limited by:
a. strictly interpreting the exception to coverage against the insurer.
b. placing on the insurer the burden of proving that the exception applies.
c. both a. and b.
d. neither a. nor b., since exceptions to coverage are not generally permissible.
Which of the following scenarios would not qualify as a bona fide occupational
qualification exception to Title VII?
a. a religious school hiring only members of that religion to teach religion
b. a women’s store that sells wedding gowns hiring only women to measure and fit
customers
c. an airline hiring only female flight attendants
d. all of the above scenarios would qualify as a bona fide occupational qualification
exception to Title VII.
The due process clause:
a. allows the U.S. government to take private property without due process.
b. allows a state to take private property without due process.
c. provides a guarantee of protection against loss of rights or property without the
chance to be heard.
d. does not apply to state governments.
Forbearance may constitute consideration.
Nuisances may be classified as either private nuisances or public nuisances.
The statute of frauds applies to promises to answer for another party’s debt, but does not
apply to a promise to answer for another party’s default.
If a buyer refuses to pay for goods after an acceptance that was not revoked, the seller
may bring action to recover the purchase price and any incidental damages.
Economic duress, in the form of a reluctance to enter into a financially demanding
instrument, is a universal defense.
A seller cannot be held liable for the breach of an express warranty if the seller honestly
believed that the warranted statement was true.
Substantive unconscionability has to do with matters of freedom of assent.
Collateral may change its form and character during the course of a security agreement.