1) strictly speaking, a contract has nothing to do with the personal intent of the parties.
2) transfer of title deeds is a function wherein silence signals acceptance of the offer.
3) asking whether a decision will produce the right results is an example of
deontological theory.
4) some courts have recognized that tying agreements sometimes may be necessary to
protect the reputation of the sellers product line.
5) silent partners have the duty to serve and bear the same liability for partnership debts
as any other partner.
6) today, discrimination on the basis of gender receives more strict scrutiny than
discrimination on the basis of race.
7) in a reorganization petition under chapter 11 of the bankruptcy code, if any particular
class of creditors rejects the reorganization plan, the court will:
a.disallow the claims of the rejecting creditors.
b.force the trustee to renegotiate with the rejecting creditors so that a compromise
maybe reached at.
c.order the debtor to file bankruptcy under chapter 13.
d.force the rejecting creditors to accept the reorganization plan, if the plan is fair and
equitable towards the rejecting creditors.
8) which of the following is an example of a consequential damage?
a.expense that a buyer incurs in receiving and inspecting goods shipped by the seller
that do not conform to those called for in the contract.
b.charge that the buyer has to pay in obtaining substitute goods.
c.an injury to a person caused by a breach of warranty.
d.expense that a buyer incurs in storing nonconforming goods shipped by the seller.
9) the board of directors of filex corporation at a regular meeting of the board entered
into a contract with ginger grant, one of the directors. this contract called for filex to
purchase 120 acres of land from ginger. there were ten members on the board, eight of
whom were present at the meeting. one of the directors present was ginger. all the other
directors were disinterested in the transaction and not related to ginger. after a lengthy
discussion, six directors voted in favor of the contract and two voted against it. ginger
voted for the contract. which of the following is true?
a.the contract between ginger and the corporation is illegal and invalid.
b.the contract is valid since it was approved by a majority of a quorum of the board.
c.the contract becomes void if the corporation proves that the contract was unfair to it.
d.the contract is voidable unless ginger proves that the contract is fair to the
corporation.
10) in his april 2011 credit card bill, shawn noticed an entry for $1,179 paid by him to a
resort on the west coast. shawn lives in montpelier, vt and claims he last traveled to the
west coast almost two years back. in may 2011, he gave a written notice of the alleged
error in the billing statement to his credit card issuer. assume that the credit card issuer
has failed to comply with the rules of the fair credit billing act. under this act, how
much of the disputed amount can the issuer collect from shawn?
a.$1,179
b.$1,079
c.$1,035
d.$1,129
11) the statute of frauds requires that:
a.some contracts be evidenced by a writing.
b.all contracts involving fraud must be void.
c.all three-party contracts be collateral ones.
d.there can be no secondary debts in a contract.
12) the internal revenue service (irs) has recently issued a subpoena duces tecum to
values corp. the irs wants access to the last five years tax returns and related documents
of values to ensure that values has met all its tax liabilities. values claims that all its tax
papers are in order and irss motive is to harass political opponents of the incumbent
administration (values was one of the top 100 donors during the last election year). the
strongest argument that values may make concerning the subpoena is that the subpeona:
a.is invalid because the irs investigation is not being conducted for a legitimate purpose.
b.need not be obeyed because it violates values fifth amendment privilege against
compulsory testimonial self-incrimination.
c.need not be obeyed to its fullest extent because it is not sufficiently specific and is
unreasonably burdensome.
d.is invalid unless the irs satisfies the probable cause standard required by the fourth
amendment for the issuance of a search warrant.
13) you need to drive to spokane to pick up your parents. your car is being repaired, and
is therefore unavailable. you ask your good friend ed if he will lend you his car. you
take eds car and drive to spokane. this is:
a.a mutual benefit bailment.
b.a bailment exclusively for the benefit of the bailee.
c.a bailment exclusively for the benefit of the bailor.
d.no bailment because no consideration was paid to ed.
14) section 2(a) of the robinson-patman act does not directly address the legality of:
a.functional discounts.
b.partial payment discounts.
c.quantity discounts.
d.accumulation discounts.
15) zenith co. is a company that manufactures cloth. it purchases the cotton required as
raw material from yell mart. zenith co. acquires yell mart. identify the type of merger.
a.vertical merger
b.horizontal merger
c.conglomerate merger
d.symmetrical merger
16) big bank is a major creditor of bonwill department store. after a major loss in profits
due to poor holiday sales, big bank decides to help keep bonwill from bankruptcy. big
bank orally promises mary tudor, a supplier to bonwills, that it will guarantee bonwills
payment for goods that mary sells to bonwill. most likely, big banks oral agreement:
a.is unenforceable under the statute of frauds.
b.is unenforceable because it is a collateral contract.
c.is enforceable under the main purpose or leading object exception to the statute.
d.is enforceable because a collateral contract is not covered under the statute of frauds.
17) debtors have to file a statement of their calculations under the _____ as part of their
schedule of current income and expenditures.
a.limiting test
b.fizeau test
c.means test
d.sagnac test
18) as a result of regulation of fuel additives by the clean air act, _____ was largely
phased out of use as an octane enhancer in gasoline.
a.toluene
b.lead
c.methanol
d.nitrous oxide