A written stop-payment order is effective for
a. ten days.
b. fourteen days.
c. six months.
d. one year.
A written order by one person directing the person’s bank to pay a certain sum of money
to another person is a
a. promissory note.
b. certificate of deposit.
c. draft.
d. check.
If a person’s response to an offer changes the terms of that offer, this response is known
as
a. a revocation.
b. an option.
c. a counteroffer.
d. an illegal response.
A will executed under duress is
a. invalid.
b. voidable.
c. valid if the will benefits another person.
d. valid.
A debit card holder who notifies the card issuer within two days of the card’s loss is
liable for
a. all losses.
b. losses up to $500.
c. losses up to $50.
d. losses up to $1,000.
For a contract for the sale of goods to be considered a present sale, the
a. goods must be considered future goods.
b. goods must be physically in existence and identifiable.
c. goods must be specially ordered.
d. sale must take place at the merchant’s place of business.
A buyer’s basic duty under a sales contract includes the obligation to
a. accept nonconforming goods.
b. insist upon delivery of the goods.
c. “cure.”
d. accept conforming goods and pay for them.
A financing statement is filed to protect the
a. debtor.
b. creditor.
c. public.
d. creditor and the public.
To avoid implied warranties in the sale of goods to a consumer, the seller should make
it absolutely clear (as for example a written statement) that the goods are sold
a. with no known defects.
b. in A-1 condition.
c. “as is.”
d. as merchantable only.
If a person who holds goods under a voidable title because he or she purchased them
through fraud transfers the goods for value and in good faith to a third party, the type of
title transferred is
a. nonexistent.
b. defective.
c. valid.
d. voidable.
A contract for the purchase and sale of a home is required to be in writing by the
a. statute of limitations.
b. statute of frauds.
c. Torrens System.
d. title examiner.
If a buyer breaches the sales contract, the seller may sue for
a. the purchase price.
b. the market price.
c. punitive damages.
d. none of these.
Which of the following statements is true?
a. In order for a check to be negotiable, the drawee must be named in the instrument.
b. A check is a type of draft.
c. A check is a popular form of negotiable instrument.
d. All of these.
Jacobson Wholesale Company and Kutner, the owner of a retail men’s store, signed a
written contract under which Jacobson was to sell 300 boxes of hosiery to Kutner at $5
per box. Jacobson sent the hosiery, and Kutner paid the $1,500. Jacobson sued Kutner
for an additional $900 and at the trial offered evidence that shortly before signing the
contract, Kutner had orally agreed to pay an additional $3 per box. The court held the
evidence inadmissible. The principle that best justifies the legal decision in this case is
that
a. all contracts must be in writing to be enforceable.
b. written contracts may not be modified at the will of the parties.
c. generally, evidence of a prior oral agreement contradicting a written contract is
inadmissible.
d. a contract of guaranty must be in writing to be enforceable.
Under the UCC,
a. risk of loss is placed on the party who has title.
b. risk of loss is always placed on the buyer.
c. risk of loss is always placed on the seller.
d. none of these.
Which of the following statements does not apply to a written contract governed by
Article 2 of the UCC
a. the contract must involve the sale of goods of $5,000 or more.
b. the contract may involve the sale of personal property.
c. the requirements of the contract must be carried out by both parties in good faith.
d. the obligations of a merchant may be different from those of a non-merchant.
Laws regulating the rights and obligations of individuals in relationship to each other
are called
a. civil laws.
b. criminal laws.
c. constitutional laws.
d. administrative laws.
Jenks requested a bank in Boston to write him a check on its own funds so that he
would be able to pay a bill. This check is legally known as a
a. cashier’s check.
b. bank draft.
c. traveler’s check.
d. certified check.
Baker put his house on the market for $90,000. Dalton offered $80,000, which Baker
refused. Baker then offered to sell Dalton the house for $85,000. Baker’s $85,000 offer
is a(n)
a. counteroffer.
b. acceptance.
c. bid.
d. contingency.
Cramer took his birth certificate, changed the date of his birth, and then used the
certificate to get a passport. Cramer committed the crime of embezzlement.
Damage caused to a vehicle by a falling tree would be covered by collision insurance.
An indictment occurs when a person is brought before the court, notified of the charges,
and asked for a plea to those charges.
The seller has the right to cure the defect of any nonconforming goods that the buyer
rejects.
Once judgment is obtained, the “winning” party would be entitled to
____________________ damages.
The Long Bow Manufacturing Co. makes various sporting goods products including
skateboards and sells directly to retailers. After purchasing and using a skateboard from
Long Bow, Lester, age 18, was injured and wished to sue for her injuries. She decided
to sue Long Bow on the basis of negligence. Would this theory provide her the best
chance of winning her case?
A security agreement must be filed or it is invalid.
The Supreme Court decision in New York Times Co. v. Sullivan made it more difficult
for a public official to sue for defamation for published statements made about his or
her public life.
What were the two greatest influences on the development of law in the United States?
A court’s holding that a corporation was organized solely to avoid liability is known as
“piercing the corporate veil”.