Archives: Quiz

In the case of partial destruction of identified goods before risk of loss passes to the buyer, the buyer has the option to avoid the contract or to accept the goods with due allowance from the contract price for the […]

If Terry makes a tender offer to the owners of Pizza Village’s registered stock, he must file a statement with the SEC if he: a. owns 1% of Pizza Village stock. b. will, after the acquisition, own 5% of all […]

A long-arm statute allows a state to obtain jurisdiction over a nonresident defendant when the nonresident defendant has sufficient contacts with the state. a. True b. False In order for there to be a violation of Section 2 of the […]

Harold purchased 400 pairs of gloves from Isaac at a contract price of $800. Fifty of the gloves were defective and a dispute arose as to the amount due and owing under the contract. Harold refuses to pay the $800, […]

The __________ precludes imposing liability on directors and officers for honest mistakes in judgment if they act with due care, in good faith, and in a manner reasonably believed to be in the best interests of the corporation. a. duty […]

A contract to sell life insurance is covered by Article 2 of the Uniform Commercial Code. a. True b. False Steven owes Theresa $100 for a used computer which he bought last year at Theresa’s garage sale. The two agree […]

The 2010 amendments to the Federal Organizational Corporate Sentencing Guidelines restricted the availability of reduced sentencing for corporations having effective compliance and ethics programs and meeting additional requirements. a. True b. False In 1990, Congress enacted the Administrative Dispute Resolution […]

To whom does an accountant have potential liability? a. To his client only. b. To an intended third party beneficiary. c. To a foreseen user of the accountant’s work. d. All of these. The remedy for a director’s breach of […]

For a misrepresentation to be actionable as fraud in the inducement, it must be a misrepresentation of opinion. a. True b. False Judges who serve in the U.S. Courts of Appeals receive lifetime appointments from the President, subject to confirmation […]

Revised Article 1 of the UCC states that the “money requirement for a negotiable instrument means the current official currency of the government, not just a medium of exchange authorized or adopted by a sovereign government as part of its […]

The debtor has an absolute right to have his bankruptcy case dismissed, whether the case is under Chapter 7, 11, or 13. a. True b. False Generally, legislative rules must be promulgated in accordance with the procedural requirements of the […]

Landview Appliances sells a stove to Evan for his home. The contract of sale excludes liability for consequential damages. When Evan turns on the stove, it catches fire, burning Evan severely. Evan cannot recover for his injuries because of the […]

Willton Bros. obtains from Marbowe Manufacturing a line of credit of $100,000, of which Willton initially uses $27,000 for purchase of inventory. Marbowe may only have a security interest in the inventory that covers the initial $27,000 advance. a. True […]

Which of the following acts protects consumers who have errors in credit card billings? a. Equal Credit Opportunity Act. b. Fair Credit Billing Act. c. Fair Debt Collection Practices Act. d. Truth-in-Lending Act. Under the Fair Credit Reporting Act, a […]

The UCC defines a debtors “rights in collateral in Article a. True b. False Which of the following is an exception to the suretyship provision requirement under the statute of frauds? a. A collateral promise made to the creditor. b. […]

Marilyn read an ad in the school newspaper offering a $1,000 swimming scholarship to anyone who could swim 500 laps in the school pool. Marilyn called the advertiser and began swimming. She has reached lap number 460; she feels great […]

Interpretative rules of administrative agencies are automatically binding on the private parties the agency regulates. a. True b. False If the act or threat would affect a person of average strength and intelligence, then and only then will the act […]

A bank robbery has occurred, and the banker’s association has offered a $1,000 reward for information leading to the arrest and conviction of the robber. Several people are claiming to be entitled to the money. Which of them is eligible? […]

If a contract for a sale of goods does not include a quantity term, it is a requirements contract. Corporations, unlike persons, cannot be liable for crimes. Answer: F Federal law encourages private lenders to modify mortgages so as to […]

The initial interest rate is the part of a purchase price that is paid up front in cash. A court may depart from a precedent if the court decides that the precedent should no longer be followed. Answer: T Under […]

International law attempts to reconcile the authority of each nation over its own affairs with its desire to benefit from trade and harmonious relations. A writ of execution is a court order to execute a debtor after the entry of […]

A bank is obligated to pay an uncertified check presented less than six months from its date. After two years of research and an investment of a substantial amount of money, Coast-to-Coast Company (CC) develops a new product that it […]

To be enforceable, a memorandum evidencing an oral contract that would otherwise be unenforceable must include all essential terms. In most states, if neither party requests a jury, there will be no jury trial. Answer: T A seller must provide […]

In sales law, a warranty is an assurance by one party of the existence of a fact on which the other party can rely. Each partner is an agent of the partnership in carrying out the usual business of the […]

An acceptance must be unequivocal. When a corporation is dissolved voluntarily, the corporation must file articles of dissolution with the state. Answer: T A borrower has the right to purchase the property after default by paying the full amount of […]

An invitation to negotiate”can you afford this?is an offer. All nations have restrictions on imports. Answer: T A foreign state is immune from the jurisdiction of U.S. courts as long as the state is involved in commercial activity in the […]

Attorneys are required to be familiar with well-settled principles of law applicable to a case. When a secured debt is paid, the secured party must file a termination statement regardless of the goods classification. Answer: F Certified checks are instruments […]

The last security interest to be perfected is the first in priority over any other perfected security interests. Plant life is not considered to be real property. Answer: F Buying or selling securities on the basis of nonpublic information is […]

Under the Statute of Frauds, all written contracts are enforceable. Acting in good faith gives a business firm a better chance of defending its actions in court. Answer: T The owner of real property has relatively exclusive rights to the […]

A mistake of fact can only be bilateral. An incidental beneficiary can sue directly to enforce a promisees promise. Answer: F “Unless otherwise explicitly agreed, title passes to the buyer at the time and place at which the seller physically […]

Express warranties displace all inconsistent implied warranties. To be legally sufficient, consideration must include something of economic value. Answer: F In most states, a person must be sixteen years of age to execute a valid will. Answer: F An ethics […]

Signal Sets Company contracts to deliver one hundred 52-inch plasma high-definition television sets to a new retail customer, Tuner TV Store, on May 1, with payment to be made on delivery. Signal tenders delivery in its own truck. Tuners manager […]

It may be a crime to take anothers property, but it is not a crime to receive stolen goods. Crimes occurring in a business context are popularly referred to as white-collar crimes. Answer: T A person who enters into a […]

A contract may have to be in writing to be enforceable even if its performance is possible within a year. Anyone who writes a book has automatic copyright protection in every country in the world. Answer: F The simplest form […]

An auction”we ask you to bid on this itemis an offer. Only two persons can hold property as tenants in common. Answer: F Some U.S. bribery laws are directed toward accountants. Answer: T A corporation cannot refuse a shareholders request […]

An employer is not liable for the sexual harassment of an employee by a co-worker. A service mark distinguishes products used, or “put into service, by the government. Answer: F The legality of an action is always clear. Answer: F […]

Each bank in a collection chain must pass a check on before midnight of the day of its receipt. An offer to form a bilateral contract is accepted only by completing the contract performance. Answer: F One guideline to evaluating […]

A receipt issued by a warehouser for goods stored in a warehouse is a bill of lading. Bob is shopping in Carls Hardware Store when a nail gun in use by Dan, one of Carls employees, fires without warning and […]

Some states limit the governments ability to take private property and give it to private developers. An opinion that disclaims any liability for false or misleading financial statements is too general. Answer: T A fiduciary relationship allows parties to avoid […]

Contracts that are executory on both sides can be rescinded by agreement. A deceased joint tenants interest in jointly held property passes to his or her heirs. Answer: F If the purpose of a licensing statute is to protect the […]

Property voluntarily discarded by its owner with no intention of reclaiming it is lost property. Under their police powers, states can regulate only public activities, such as political demonstrations. Answer: F The role played by women may present some difficult […]

An easement arises when the owner of one piece of land occupies the real property of a neighbor and eventually acquires title to it. Under the doctrine of comparative negligence, both the plaintiffs and the defendants negligence are taken into […]

One requirement for a product liability suit based on strict liability is a failure to exercise reasonable care. Performance of an accord discharges an original contractual obligation. Answer: T An oral stop payment order is valid for thirty days. Answer: […]

Ethical standards based on religious teachings tend to be absolute. Currently, it is not clear which, if any, laws apply to the security of e-money payment information. Answer: T Misrepresentation of a material fact cannot occur through conduct alone. Answer: […]

Persons whose names appear in a corporations stock book are ordinarily entitled to notice of shareholders meetings and the right to vote. Securities that are exempt from the registration requirement can generally be sold and resold without being registered. Answer: […]

To be ethical is to “do the right thing but it does not otherwise “pay. If a note is payable in thirty days, payment is due by midnight on the thirtieth day. Answer: t Under federal law, an employer can […]

Insurance is classified according to the amount of the payment on a claim. Professionals are obligated to adhere to standards of performance generally accepted within their profession. Answer: T Specific performance is the remedy customarily used when one party has […]

U.S. laws that prohibit discrimination in employment do not apply to U.S. employees working for U.S. firms located abroad. Withdrawal from a partnership for a term prematurely does not constitute a breach of the partnership agreement. Answer: F Oral evidence […]

Certain reorganization cases may be converted to repayment plan cases with the consent of the debtor. Good intention is a complete defense to conversion. Answer: F An insurance application is part of the insurance contract. Answer: T Strict liability applies […]

The payment of Johns debt to Kirsten is guaranteed by Johns personal property. Kirsten is most likely to perfect her interest by a. attaching a bright label to Johns property. b. calculating the precise amount of Johns debt. c. correcting […]