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Which of the following statements applies to a sale on approval under Article 2 of the
UCC?
a. both buyer and seller must be merchants.
b. the buyer must be purchasing the goods for resale.
c. risk of loss for the goods passes after the trial period is up.
d. title to goods passes to the buyer on the delivery of the goods to the buyer for trial
purposes.
A discharge by performance may not occur through
a. substantial.
b. full performance.
c. tender of performance.
d. rescission.
Cole owed Williams $150. When Cole couldn't pay the $150, Williams accepted $75
and a shaver worth $50 as full settlement. The contract was discharged by
a. breach of contract.
b. waiver.
c. accord and satisfaction.
d. substantial performance.
Goods that are not in existence and not yet identified are called
a. personal goods.
b. unidentified goods.
c. future goods.
d. unsatisfactory goods.
The most important law passed by Congress to prevent monopolies is called the
a. Miller-Tydings Act.
b. Russell Act.
c. Sherman Act.
d. Fair Trade Act.
A person who buys property that is subject to a restrictive covenant is bound by it
a. only if the seller told him or her about it.
b. only if it appears in the deed.
c. only if his or her lawyer told the buyer about it.
d. none of these.
A deed containing no warranties is a
a. bargain and sale deed.
b. warranty deed.
c. quitclaim deed.
d. land contract.
Atad orally contracts to support his aunt until her death. In most states this contract is
a. unenforceable.
b. illegal.
c. valid.
d. unconscionable.
A gift of specific real property made in a will is known as a
a. residuary gift.
b. codicil.
c. legacy.
d. devise.
Life insurance premiums would not be affected by the insured's
a. age.
b. marital status.
c. health.
d. sex.
Tandom endorsed a check "Jane Tandom." This is a
a. qualified indorsement.
b. special indorsement.
c. restrictive indorsement.
d. blank indorsement.
The federal court system was established by
a. a mandate from the public.
b. Congress.
c. Article III, Section I of the Constitution.
d. a vote of the judges on the Supreme Court.
DeBruin went to CompuTown to buy an Ibex personal computer. The store was sold out
but agreed to order one. This transaction is a
a. present sale.
b. COD sale.
c. contract to sell.
d. sale on approval.
If an instrument is negotiable, it
a. can be transferred freely from one person to another.
b. must be payable on demand.
c. must always be payable to a bank.
d. must be payable from a special fund.
Johnson entered into a contract to sell his computer to Madison for $950. Johnson then
changed his mind and refused to deliver the computer to Madison as agreed. Johnson's
failure to deliver the computer is considered to be
a. an acceptance.
b. a breach of contract.
c. a quasi agreement.
d. a performed contract.
Ramsey, the owner of a retail candy store, ordered ten boxes of chocolate rabbits from
Johnson's Wholesale Candy Company. Johnson's shipped ten boxes of marshmallow
rabbits, the only kind in stock. It then notified Ramsey that the marshmallow rabbits
were sent as an accommodation, knowing that Ramsey needed the rabbits immediately
to meet customer demands for Easter. Under these circumstances, which of the
following statements is correct?
a. Shipment of the marshmallow rabbits is not an acceptance but a counteroffer, and a
contract will result only if Ramsey decides to accept the marshmallow rabbits.
b. Johnson's Wholesale Candy Company is in breach of contract.
c. What Johnson's Wholesale Candy Company did was unconscionable.
d. None of these.
An exception to the strict requirements of a zoning ordinance is called a(n)
a. rezoning.
b. variance.
c. extension.
d. prescription.
The body of written law that defines the rights and duties of individuals and describes
the power and limitations of the government is known as
a. business law.
b. common law.
c. constitutional law.
d. moral law.
The implied warranty of merchantability does not apply in which of these situations?
a. In a sale of goods by a non-merchant
b. When food or drink is considered in a restaurant
c. When a merchant is selling to another merchant
d. When goods are of average quality
The only type of principal-agent relationship that may not be revoked by the principal is
a(n)
a. gratuitous agency.
b. independent contractor relationship.
c. renunciable agency.
d. agency coupled with an interest.
Marsh, without fraudulent intent, wrote a check for $500 on her checking account at
Mechanics Mutual Bank, where only $350 was on deposit. Marsh has no agreement
with the bank regarding overdrafts. In this case the bank
a. must pay $350.
b. must pay $500.
c. may honor the check and charge Marsh's account for no more than $350.
d. may honor the check and charge Marsh's account for $500.
The plaintiff in a civil lawsuit is the
a. state.
b. attorney for the person injured.
c. person injured.
d. person being sued.
The order in which the events of a civil trial occur is
a. verdict, charge to jury, testimony.
b. summons, jury selection, verdict.
c. pretrial procedures, summons, judgment.
d. complaint, verdict, pretrial procedures.
The offer to pay a sum of money, if refused, discharges the contract.
Why are minors generally responsible for necessaries purchased from adults?
For a writing to satisfy the statute of frauds, it need only be signed by the party against
whom it is to be ____________________.
A(n) ____________________ is the signature of the indorser, which usually appears on
the back of the instrument.
"Jurisdiction over the person" means that a court has the power to hear a case because it
has authority over the parties.
Because of the harshness of the common law rule regarding impossibility of
performance, the Uniform Commercial Code (UCC) in certain cases allows a contract
to be discharged under the doctrine of ____________________.
