When money is loaned at a greater rate of interest than is allowed by law, __________
is committed.
a. Usury
b. credit misfeasance
c. petty theft
d. credit malfeasance
An apparently voluntary agreement may in fact not be voluntary if:
a. undue influence is present.
b. physical duress is present.
c. economic duress is present.
d. all of the above.
When the president negotiates a treaty with a foreign country and submits it to the
Senate for approval, the president’s action is:
a. an express Constitutional amendment.
b. an amendment by judicial interpretation.
c. an amendment by practice.
d. the power of manifest destiny.
When supervisors seek sexual favors in return for job benefits, the practice is called:
a. tangible employment action sexual harassment.
b. hostile work environment sexual harassment.
c. res ipsa loquitur sexual harassment.
d. none of the above.
A Federal Trade Commission regulation gives a buyer three (3) business days in which
to cancel a home-solicited sale of goods or services costing more than:
a. $25.
b. $50.
c. $100.
d. $500.
A letter of credit:
a. is an advance arrangement for financing.
b. is used only in domestic sales.
c. involves only two parties.
d. all of the above.
The Fair Credit Reporting Act applies to:
a. consumer credit.
b. commercial credit.
c. business credit.
d. all of the above.
A __________ is a completed sale with an option for the buyer to return the goods.
a. conditional sale
b. contingency sale
c. sale or return
d. sale on approval
Which of the following will not be considered value in connection with determining
holder in due course status?
a. performing the act for which the instrument was given
b. promising to perform an existing legal obligation
c. receiving the instrument as security for a loan
d. taking the instrument in payment of a debt
The concept of perfection concerns:
a. the creation of the security interest.
b. protection against the claims of others to the collateral.
c. the rights of the creditor against the debtor.
d. converting unsecured creditors into secured creditors.
With used or secondhand goods, what is fit for normal use will be:
a. a higher standard than with new goods.
b. a lower standard than with new goods.
c. the same standard as with new goods.
d. not applicable since the goods are not new.
Partners are:
a. jointly liable on all firm contracts and for all torts committed by one of the partners in
the scope of partnership business.
b. jointly and severally liable on all firm contracts and for all torts committed by one of
the partners in the scope of partnership business.
c. jointly and severally liable on all firm contracts and jointly liable for all torts
committed by one of the partners in the scope of partnership business.
d. jointly liable on all firm contracts and jointly and severally liable for all torts
committed by one of the partners in the scope of partnership business.
Which of the following statements is true?
a. Auditors are always eligible for whistleblower awards.
b. Auditors are only eligible for whistleblower awards if they report information to the
board of
directors and the board fails to take action.
c. Auditors are only eligible for whistleblower awards if they report conduct by a
company that is
intended to inhibit an SEC investigation.
d. Auditors are never eligible for whistleblower awards.
With respect to property expressly entrusted to a hotelkeeper€s care, the hotelkeeper
has a bailee€s liability.
A firm offer is effective only if the merchant receives consideration to keep the offer
open.
Corporations may avoid liability for the obligations of a predecessor corporation by
treating a consolidation or merger as a sale of assets.
A holder having the rights of a holder in due course is subject to the defense of fraud in
the inducement.
Freedom from liability to third persons dealing with the franchise holder is one of the
main reasons that franchisors grant franchises.