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What is the purpose of a financing statement?
a. to meet UCC accounting requirements under Article 9
b. to create a security interest
c. to amend a security agreement
d. to alert third persons that a creditor has a security interest in the collateral described
Who may bring an action for relief under consumer protection legislation?
a. the Federal Trade Commission
b. a state attorney general
c. the consumer
d. all of the above
Individual rights guaranteed in the United States Constitution:
a. have no accompanying duties.
b. apply only to a small number of individuals.
c. are subject to state legislative laws.
d. generally have accompanying duties.
Which of the following forms of cotenancy does not have right of survivorship?
a. joint tenancy
b. tenancy by entirety
c. tenancy in common
d. community property
The Uniform Durable Power of Attorney Act (UDPAA) changes the general rule that
insanity of a principal terminates an agent's authority to act for the principal.
When an enterprise has made false and deceptive statements in advertising, the FTC
may require new advertising to correct the former statement so that consumers are
aware of the truth. This corrective advertising required by the FTC is also called
__________ advertising.
a. retractive
b. redactive
c. retroactive
d. refractive
The Securities Exchange Act of 1934 deals with the __________ distribution of
securities.
a. primary
b. secondary
c. aftermarket
d. direct
When a foreign government takes over an American business that is being conducted in
the foreign country, this is called:
a. expropriation.
b. dollar credits.
c. suspension agreement.
d. antidumping.
Counterfeiting is:
a. a federal crime only.
b. a state crime only.
c. both a federal and state crime.
d. none of the above.
Revised UCC Article 3 refers to which of the following parties as secondary obligors?
a. drawers
b. indorsers
c. accommodation parties
d. all of the above
Three defenses are commonly raised to the extraterritorial application of U.S. antitrust
laws. They are:
a. act€of-state, sovereign compliance, and sovereign immunity doctrines.
b. jurisdictional rule of reason, effects doctrine, and comity.
c. foreign legislation, sovereign compliance, and comity.
d. foreign antitrust laws, sovereign immunity doctrine, and International Monetary Fund
applications.
Additional terms in acceptance of an offer for non-merchants:
a. automatically result in rejection of the offer.
b. forms a contract based on the original offer
c. forms a contract that includes the additional terms.
d. none of the above.
Which is NOT a correct statement concerning a liquidated damages clause?
a. If the clause is enforced, the injured party can collect no more than the amount
specified.
b. If the clause is enforced, the injured party has a choice between compensatory
damages or liquidated damages.
c. It must be possible to determine actual damages.
d. The amount of liquidated damages are established by the parties to the contract.
The parties may decide that their contract is not the one they want. They may then
replace it with another contract. If they do, the original contract is discharged by
__________.
a. solution
b. elocution
c. retribution
d. substitution
The making of an assignment __________ the assignor of any obligation of the
contract.
a. relieves
b. conditionally relieves
c. does not relieve
d. discharges
Positive law:
a. is enacted by government authority.
b. ensures that businesses will follow a high level of ethical standards.
c. is also known as natural law.
d. all of the above.
An obligor may delegate his or her duties to perform under a contract when the:
a. performance of the duty is standardized and nonpersonal.
b. obligor is unable to perform his or her duties.
c. contract is silent as to the right of assignment.
d. obligor is an expert in his or her specialized duties under the contract.
Which of the following is not a necessary element of promissory estoppel?
a. The promisor and the promisee must engage in a bargained-for exchange.
b. The promisor must intend or should reasonably expect that the promisee will rely on
the promise.
c. The promisee must in fact rely on the promise in some definite and substantial
manner.
d. Enforcement of the promise is the only way to avoid injustice.
The habitual drunkenness of a partner is a sufficient cause for judicial dissolution of a
partnership.
The right to sue for damages sustained from a defective product is reserved exclusively
to the buyer of such goods.
In an FOB shipment contract title to the goods pass to the buyer when goods are
delivered to the carrier.
Under the majority view, a contract that does not satisfy the statute of frauds is not
enforceable.
Malpractice is both a form of negligence and a tort.
Mediation is a generally accepted method of resolving disputes.
Negligence and fraud are easy to prove in a mass production world.
The authority of an agency is limited to the technology in existence at the time the
agency was created.
