If one or both parties to a sales contract are merchants, any additional terms are
considered proposed additions to the contract.
Renter’s insurance fails to cover an insured for personal liability.
Operational regulation of commercial airlines by the Federal Aviation Administration is
an instance of general government regulation.
If, after a public administrative hearing, the Federal Trade Commission (FTC) finds a
violation of Section 5, it may issue a cease-and-desist order.
Accountants cannot be held criminally liable for material irregularities in financial
statements prepared for registration statements.
The intermediate appellate courts do not allow the parties to have oral hearings.
The emancipation doctrine helps a minor to enforce the necessaries of life contract on
negligent parents.
Convertible preferred stock permits the preferred stockholders to convert their shares
into common stock.
If a debt is not paid by the spouse to whom the court has distributed the debt, the
third-party creditor may recover payment of the debt from the other spouse.
In a lease contract, the title of goods is passed from the lessor to the lessee.
A court order that prohibits a person from doing a certain act is termed as a(n)
________.
A) rescission
B) reformation
C) injunction
D) restitution
In a draft transaction, the drawee is the party who ________.
A) demands the draft
B) pays the money stated in a draft
C) writes an order for a draft
D) receives the money from a draft
Darren is a certified interior designer with a lucrative client list in the city of Kelsa,
situated in the state of Touslon. His business affords him a substantial amount of
goodwill from his clients. Darren sells his accounting interior designing business to
Glenda. When he sells his business to Glenda, Darren agrees not to open another
interior designing firm in the city of Kelsa for a 25-year period. What kind of agreement
exists between Darren and Glenda in this case?
A) contract in restraint of trade
B) covenant not to compete
C) unconscionable contract
D) quasi-contract
________ is a situation in which an agent does something during the course of his or
her employment to further his or her own interests rather than the principal’s.
A) Coming and going
B) Frolic and detour
C) Self-dealing
D) Dual-purpose mission
Martin, who wants to sell a house he owns, authorizes his concierge, Wilhelm, to find a
potential buyer, and finalize a deal above a stipulated price. Wilhelm contracts Chris, a
real estate broker, and instructs him to only find a potential buyer and send them over to
Wilhelm for the sale. Martin then contracts ReNowait Goodhouses, a home
improvement company to renovate the house. ReNowait completes its work and Martin
pays them. Chris then searches for a suitable buyer and finds one in George. George
buys the house and Chris is paid for his services. What sort of commercial relationship
exists between Martin and Wilhelm?
A) employer-employee relationship
B) agent-agent relationship
C) agent-independent contractor relationship
D) principal-agent relationship
Which of the following types of protection does the Fourth Amendment provide to U.S.
citizens?
A) protection against self-incrimination
B) protection against being tried for the same case twice
C) protection from unreasonable search and seizure by the government
D) protection from cruel and unusual punishment for a criminal defendant
Tuff-Steele Constructions, Inc. has not been adhering to appropriate worker safety
rules. As a result, there have been an increased number of on-site accidents, and several
construction workers have sustained serious injuries. Which of the following powers
will allow an administrative agency to bring agency proceedings against Tuff-Steele
Constructions?
A) licensing
B) executive power
C) judicial authority
D) rule making
Owners of a corporation who elect the board of directors and vote on fundamental
changes in the corporation are known as ________.
A) corporate officers
B) shareholders
C) registered agents
D) managing directors
The person responsible for incorporation of a corporation is known as a(n) ________.
A) promoter
B) shareholder
C) incorporator
D) director
Which of the following statements is true of a breach of a promise to marry in the
United States?
A) It is considered an unlawful and serious breach of contract.
B) The person who initiates the breach is subjected to legal prosecution.
C) Most courts do not recognize a breach of a promise-to-marry lawsuit.
D) The person who backs out has to pay permanent alimony.
Which of the following terms refers to an unconditional and absolute offer by a
contracting party to perform his or her obligations under a contract?
A) injunction
B) writ of garnishment
C) tender of performance
D) writ of attachment