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1) a transferor of a negotiable instrument for consideration warrants to his transferee
that the negotiable instrument has not been altered.
2) the partnership rules of dissociation and dissolution apply to joint ventures.
3) as a general rule, a principal is not liable for torts committed by independent
contractors while performing the principals business.
4) kathy writes a check on her checking account with a bank. kathy is the payee here.
5) the traditional rule is that, where the consideration given a minor under a minors
contract has been lost, stolen, or dissipated, the minor can disaffirm without
compensating the adult for the loss in any way.
6) which of the following cannot be disaffirmed until after the age of majority?
a.a contract that affects title to real estate.
b.a contract for a necessary.
c.a contract that is fully executed.
d.a contract for the sale of goods.
7) which of the following is true regarding a drawees liability on a check or a draft?
a.the drawee is primarily liable in all cases.
b.the drawee is secondarily liable because the holder must first proceed against the
drawer.
c.the drawee is primarily liable if it accepts (certifies) a check.
d.the drawee is secondarily liable only in doubtful cases.
8) sam agrees to make partial deliveries of goods over three months to winston. the first
delivery was late by two weeks. why should winston object to this late delivery?
a.winston may be required to pay in advance for future deliveries.
b.winston may waive his rights to cancel the contract if other deliveries are late.
c.sam may cancel the contract.
d.sam may be excused from performing all his contractual obligations.
9) _____ means that the accused failed to perceive a substantial risk of harm that a
reasonable person would have perceived.
a.duress
b.recklessness
c.exculpation
d.negligence
10) several firms within an industry are involved in manufacturing a harmful product. it
is impossible to prove which firm produced the product and caused injury. identify the
type of liability that would arise in these circumstances.
a.industrywide liability
b.strict liability
c.no-privity determination
d.breach of expresses warranty
11) what is a provision in a contract that purports to relieve the defendant of a duty of
care he would otherwise owe to the plaintiff called?
a.strict liability clause
b.exculpatory clause
c.intervening cause
d.actual cause
12) _____ is the ability to incur legal obligations and acquire legal rights.
a.capacity
b.emancipation
c.necessity
d.disaffirmance
13) which of the following is true about the truth in lending act (tila)?
a.extending credit must be the creditors primary business.
b.a creditor must require payment in more than two installments.
c.a debtor must be a natural person, not a business organization.
d.consumer credit includes credit extended for agricultural purposes.
14) which of the following is often taken to be the equivalent of an assertion?
a.oversight
b.concealment
c.reliance
d.materiality
15) which of the following documents is required for a foreign corporation to do
intrastate business in a state?
a.domicile certificate
b.certificate of authority
c.commerce certificate
d.tax returns certificate
