The authority that an agent has because the principal leads third parties to believe that
the agent has it is called
a. implied authority.
b. customary authority.
c. apparent authority.
d. none of these.
A partner who has an equal voice in management decisions but whose existence as a
partner is not to be revealed to anyone is a
a. limited partner.
b. secret partner.
c. dormant partner.
d. silent partner.
A contract may be considered legal although it
a. is specifically prohibited by statute.
b. involves gaming legalized by the state.
c. is contrary to public policy.
d. results in a crime if the person committing the criminal act is given a prison sentence.
A promissory note is not negotiable if it is
a. not dated.
b. payable thirty days after the death of the maker.
c. signed by having the signature typed on the note.
d. payable thirty days after the date of the note.
You drive your car to a service station for repairs. This is
a. a bailment for the benefit of the bailee.
b. a bailment for the benefit of the bailor.
c. a mutual benefit bailment.
d. a gratuitous bailment.
A common carrier’s liability begins when the goods are
a. delivered to the carrier.
b. placed on the truck, train, or airplane.
c. en route.
d. unloaded by the consignee.
Minors are liable for the reasonable value of necessaries
a. actually furnished.
b. that they agreed to purchase.
c. that their parents agreed to pay for.
d. as determined by the merchant who sold the necessaries to the minor.
A seller who passes a quitclaim deed is released from any further claims if the seller has
a. a faulty title.
b. no title.
c. a good title.
d. all of these.
A federal court has limited jurisdiction in a
a. small claims action.
b. constitutional issue.
c. murder case.
d. bankruptcy case.
Under threat of bodily harm, Jones signed a contract for the purchase of an apartment
building. He may later have this contract set aside on the grounds of
a. duress.
b. fraud.
c. undue influence.
d. battery.
The role of an appellate court is to
a. try a case for the first time.
b. review a case that has already been tried in a lower court.
c. select a jury to help decide a case.
d. select attorneys to present a case.
Unauthorized completion of an incomplete instrument is
a. a real defense.
b. a personal defense.
c. no defense.
d. either a real defense or a personal defense.
The Fair Debt Collection Practices Act applies only to
a. professional debt collectors.
b. collection attorneys.
c. creditors.
d. collection accountants.
Comprehensive insurance covers damage to the insured’s car from all of the following
except
a. collision.
b. theft.
c. vandalism.
d. flood.
The contract between a person selling a house and a real estate agent is called
a. escrow.
b. a purchase offer.
c. a listing contract.
d. a contract of sale.
When a buyer breaches a sales contract by refusing to accept conforming goods, a
common remedy of the seller is to
a. exercise the right of replevin.
b. demand specific performance.
c. sue for nondelivery.
d. resell the goods.
A time share is
a. perpetual.
b. limited to a certain period of time.
c. either perpetual or limited to a certain period of time.
d. neither perpetual nor limited to a certain period of time.
Which of the following would be unenforceable because the subject matter is illegal?
a. An employer promises not to press charges against her employee for embezzlement
because the employee agreed to make restitution.
b. An attorney charges a fee to represent a client in a civil court action.
c. A restrictive covenant in an employment contract prohibiting a former employee from
using the original employer’s trade secrets at his or her new job.
d. An agreement to pay an expert in a particular field to present a case to a legislative
body seeking favorable legislation but leaving it up to the legislative body to decide on
the issue.
The statute of frauds applies only to executory contracts.
Burgess had a $50,000 life insurance policy with a double indemnity clause. Burgess
had not yet paid the annual premium of $200 when he was killed in an automobile
accident. How much will his beneficiary receive?
The ____________________ imposes liability on bars or taverns selling alcoholic
beverages to an intoxicated person or to any person under the influence of an alcoholic
beverage.
An emergency may create a principal-agent relationship by necessity.
A(n) ____________________ sells insurance for the company by whom he or she is
employed.