The statute of limitations for breach of a sales contract:
a. may be reduced between merchants to one year.
b. may be expanded by the buyer and the seller to six years.
c. begins to run from the signing of the contract.
d. always requires a notice to the seller to activate the statute.
Today, what is an important element in determining the validity of a contract?
a. the Uniform Contract Code
b. whether the agreement might harm the public welfare
c. whether the contract is wise or foolish
d. whether the contract operates unequally between the parties
A contract or agreement to purchase a specific number and kind of shares of stock when
it is issued is called a stock:
a. guaranty.
b. subscription
c. request.
d. warranty.
If the collateral is in the possession of the creditor:
a. a financing statement must be filed to perfect the interest.
b. the security interest is perfected.
c. only a security interest has been obtained.
d. the type of goods will determine the method of perfection.
A nuisance:
a. is created by every interference that has an effect on others.
b. is established when the plaintiff shows harm as the result of the defendant’s conduct.
c. arises only by an interference that is great enough to be condemned as unreasonable.
d. cannot arise from a lawful activity or business that is conducted in a lawful manner.
Mike Reilly suffered the loss of his home as a result of a chimney fire that was caused
by the ignition of soot in the chimney. This fire would be described as:
a. a friendly fire.
b. arson by negligence.
c. a strict liability fire.
d. a hostile fire.
A consumer who notifies the issuer of an EFT card within two (2) days after learning of
a loss or theft of the card is limited to a maximum liability of:
a. $500.
b. $50.
c. There is no liability limitation in this situation.
d. There is no liability in this situation.
Persons who are in a partnership are called __________ partners.
a. general
b. silent
c. secret
d. nominal
A said to B, “I’ll give you $100 for that bracelet.” B replied, “$135.” A said, “No
thanks.” B then said that B accepted the $100, but A was no longer interested and said
there was no contract. B insists there is a contract. Result?
a. A’s offer of $100 was open and accepted by B, thereby forming a contract.
b. B’s counteroffer of $135 terminated A’s offer of $100.
c. B’s statement, “$135” was a negotiating statement that did not terminate A€s
original offer of $100.
d. A’s offer of $100 was irrevocable.
Which of the following is not a universal defense available against all holders?
a. fraud as to the nature or essential terms of the instrument
b. forgery or lack of authority
c. fraud in the inducement
d. duress depriving control
A creditor of an individual partner cannot proceed against any specific items of
partnership property, but can obtain a charging order against that partner’s interest in the
partnership.
Voting trusts are usually illegal.
The rights of a holder of a duly negotiated warehouse receipt are extinguished by the
warehouser’s surrender of goods to the depositor.
A sale of goods is defined under UCC Article 2 as transfer of title to intangible property
for a price.
Unless otherwise agreed by the parties, payment by a buyer requires payment either in
cash or by certified check.
Most states have a general corporation code, and anyone who satisfies code
requirements and files the necessary papers with the government may automatically
become a corporation.
If an instrument is drawn in favor of an officer of a named corporation, the instrument
is payable to the corporation, the officer, or any successor to such officer.