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In a civil case, the plaintiff must establish the truth of his or her claim by
a. proving his or her facts beyond a reasonable doubt.
b. a preponderance of the evidence.
c. direct examination.
d. asking for a motion to dismiss.
By using checks, a business has
a. no need to keep large amounts of cash on hand.
b. an easy and safe way of sending payments through the mail.
c. proof of payment.
d. all of these.
Of the following, the action that occurs first in the criminal justice system is
a. arraignment.
b. sentencing.
c. arrest.
d. indictment.
Under Article 2 of the UCC which of the following factors is the most important in
determining which party bears the risk of loss in a contract for the sale of goods
a. how the goods were lost.
b. who has title to the goods.
c. the shipping terms in a sales contract.
d. the method of shipping the goods.
Anderson agreed to pay Dawes for acting as a real estate agent. Dawes was not properly
licensed. This agreement was
a. illegal and voidable.
b. legal and valid.
c. illegal and void.
d. permissible.
If a partner decides to start a new business, this must be approved by
a. a two-thirds vote of the partners.
b. a unanimous vote of the partners.
c. the county in which the partnership is located.
d. the stockholders.
An oral will made during the maker's final illness that disposes of the maker's personal
property is
a. unenforceable.
b. a holographic will.
c. a nuncupative will.
d. none of these.
If the buyer of goods breaches the sales contract by refusing to accept conforming
goods, a remedy available to the seller under the UCC is:
a. cover.
b. simply to cancel all performance due the buyer under the terms of the contract.
c. to resell the goods and sue the buyer for damages.
d. simply to cancel all performance due the buyer under the terms of the contract and to
resell the goods and sue the buyer for damages.
The final step in a real estate transaction is usually called a(n)
a. foreclosure.
b. escrow agreement.
c. settlement.
d. closing.
A valid claim filed after the statute of limitations has expired is usually
a. denied.
b. fully enforced.
c. referred to the state supreme court.
d. partially enforced.
Ensuring safe working conditions is the responsibility of
a. FILA.
b. AFL-CIO.
c. OSHA.
d. SHAO.
Ronco, a retailer of toys, rejected a shipment of dolls from Jasper, a wholesaler, because
they were not the original ones that were ordered. Ronco called Jasper and requested
that the proper dolls be shipped. Jasper said he could not because his stock had been
depleted. Ronco then went to another seller, purchased the dolls he wanted from that
seller, and sued Jasper for the extra costs he (Ronco) incurred. In this case, Ronco used
the remedy of
a. specific performance.
b. cover.
c. replevin.
d. conformity.
Castner orally agreed to purchase a desk from the Arman Furniture Company and paid
$850 cash. When the desk was delivered the next day, Castner refused to accept it,
saying he had changed his mind. When Castner insisted on a return of the $850,
claiming that since the agreement was not in writing, he was not bound to accept the
desk, Arman Furniture refused. Is Castner correct?
a. Yes; Castner has a legal right to change his mind.
b. Yes, if Castner can prove that the desk wasn't worth $850.
c. No; Castner is bound on the contract because he had paid for the desk in full.
d. Yes; Castner would not be bound unless the agreement to buy the desk was actually
in writing.
A statement by witnesses declaring that they saw the signing of a will is known as a(n)
a. attestation clause.
b. codicil clause.
c. probate clause.
d. witness clause.
Monchessa went to a fabric store to purchase fabric to make herself a suit. The sales
person showed her several bolts of fabric. She picked out the fabric she wished to buy
but was told there wasn't enough to make a suit but that she would order a bolt from the
manufacturer. The salesperson assured Monchessa that the fabric she ordered "would
match exactly the fabric she had selected." The salesperson's statement is
a. sales puffing.
b. a warranty of title.
c. an express warranty.
d. an implied warranty.
Life insurance often used to fund business buyouts is called
a. key person insurance.
b. a buyout annuity.
c. business term insurance.
d. business liability insurance.
Price discrimination is
a. the ability of consumers to compare prices of similar products.
b. illegal because it eliminates competition.
c. another term for government's effort to regulate utilities costs.
d. none of these.
Which of the following situations best indicates that a person would not qualify as a
holder in due course?
a. Arranges to pay for the instrument at a later time.
b. The person was notified that a prior indorser was discharged but in good faith.
c. The person took the instrument in payment of a prior debt.
d. The person accepted the instrument from a thief unaware of this fact.
To establish title to real property by adverse possession, the party claiming such title
must show, among other things,
a. that a deed to the property was properly recorded.
b. continuous use of property for a certain period of time.
c. that the property was used with the consent of the owner.
d. that the property will be used for a public use.
When Dale received his bank statement, he examined the canceled checks returned with
the statement and discovered that one check had been signed with Dale's name by an
unauthorized person. Dale immediately informed the bank. Should Dale's checking
account have been charged by the bank for the amount of this particular check?
a. Yes; the bank, after carefully inspecting the instrument at the time of payment, is not
liable for errors made on checks cashed for a depositor.
b. Yes; the bank is relieved from liability if the drawer fails to exercise great care in
seeing that only properly written checks are presented for payment at the bank.
c. No; the bank itself is liable when it cashes a check on which the drawer's signature
has been forged.
d. No; the bank itself is liable for negligence on the part of any of its depositors.
A check that is more than six months old is called a
a. stale check.
b. postdated check.
c. certified check.
d. bad check.
A postdated check is
a. payable on demand.
b. invalid.
c. payable on its due date.
d. payable thirty days after its due date.
What are the obligations of the seller and the buyer regarding performance of the sales
contract?
When a contract is formed, each party obtains certain ____________________ that will
be enforced in a court of law.
A credit card holder's liability for unauthorized use of the charge card is unlimited if the
card was lost or misplaced.
According to the modern view an assignment of rights implies a delegation of duties
unless there is language to the contrary.
Labels on certain products must contain the name and address of the manufacturer.
Vernon, Carey, and Perry were partners in Capstone Clothiers, a retail clothing store.
They decided to change the organization of the business to a corporation. They changed
the business name to Capstone Clothing, Inc. and notified creditors of the change. Have
they formed a valid corporation?
After being notified of an assignment, the obligor must perform for the assignee.
Owens Corp. and Turner Electrical Supplies were the only two electrical supply
companies operating in two neighboring states. The two companies exchanged
information on their products, agreed to sell their products at the same prices, and
decided the sales territories in the two states between them. Were these actions legal?
Abel Toys, Inc. did not pay a dividend because it suffered a loss for that year. Jones, a
stockholder, claimed that as an owner of the business, he was entitled to receive a
dividend. Is Jones correct?
