A gift causa mortis is revoked if:
a. the donor does not die.
b. the donor revokes the gift before dying
c. the donee dies before the donor.
d. all of the above.
A sole proprietorship is taxed:
a. only on a personal.
b. only on the corporate level.
c. on a personal and a corporate level.
d. none of the above.
The federal-state system that provides unemployment compensation under the Social
Security Act of 1935 does not cover which of the following categories of workers?
a. Agricultural employees
b. Domestic employees
c. State and local government employees
d. None of these categories of workers are covered by the federal-state system.
Part of every whole life insurance premium covers the cost of insurance. The remainder
of the premium is devoted to the investment component of the policy, which builds up
over time to its:
a. reimbursement point.
b. cash surrender value.
c. culmination value.
d. return point.
Original jurisdiction courts are generally ____________.
a. supreme courts
b. appellate courts
c. trial courts
d. limited courts
The order or bearer character of the paper determines how it may be:
a. assigned.
b. sold.
c. negotiated.
d. all of the above.
The defense of noncompliance may be raised:
a. by the parties to the oral contract.
b. by third parties such as an insurance company or the IRS.
c. both a. and b.
d. neither a. nor b.
If not an offer, the first statement made by one of two persons is most properly termed
a(n):
a. option.
b. acceptance.
c. invitation to negotiate.
d. contract.
The relationship between a corporation and its agents is governed by the:
a. statute under which the corporation was formed.
b. corporate charter.
c. corporate bylaws.
d. same rules as are applicable when the principal is a natural person.
__________ goods are goods that, when mixed together, are indistinguishable.
a. Tangible
b. Intangible
c. Heterogeneous
d. Fungible
Janice Beadles owns a large cargo vessel that is used primarily for international trade
transactions. Janice is quite concerned about her possible liability and financial losses,
as she has become aware of more and more collisions between ships at sea. What can
you tell her about the different types of insurance that she could obtain that could assist
her in the event of an accident?
A landlord has the right to enter a leased premises without notice:
a. for emergency purposes.
b. for repairs and evaluations.
c. both a. and b.
d. none of the above.
A security agreement must:
a. identify the parties involved.
b. contain a reasonable description of the collateral.
c. demonstrate that the parties intended for the creditor intends to have a security
interest.
d. all of the above.
Claim in a changing or shifting stock of the buyer€s goods is known as a floating lien.
In a mutual rescission, both parties, acting in good faith, renew their commitment to
perform all obligations set forth in their original agreement.
Under the Clean Water Act, the EPA has developed effluent guidelines, which are
ranges for discharges organized according to industrial groups and for specific plants in
each of these groups.
Sam Student had borrowed $1,000 from his cousin. Sam and the cousin became
involved in a heated disagreement when the cousin began to press Sam for repayment
of the loan. Finally, Sam wrote a check for $190 to the cousin and conspicuously wrote
on the check in big letters that it was full and final payment of the $1,000 loan. In need
of money, the cousin cashed the check and demanded the remaining $810 from Sam.
Sam refused to pay, claiming that they had entered into an accord and satisfaction that
discharged Sam’s obligation to pay anything more. The cousin sued Sam. Discuss the
probable outcome.
The assignee of a partner’s interest in the partnership becomes a partner only with the
consent of the other partners.
The fact that a person signs a negotiable instrument because he or she is fraudulently
deceived regarding its nature or essential terms is a defense available against all
holders.
An illusory promise creates a bilateral contract.
Unwillingness of businesses to voluntarily improve the ethics of their practices has little
practical effect on the regulatory environment.
Notification may be implied when the principal does not object to a contract and
accepts its benefits.