Archives: Quiz

Clear Day Company, which is based in Delaware, agrees to sell fifty windows, currently stored in Florida, to Far Vu, Inc., which is based in Hawaii. Absent an agreement to the contrary, the place of deliv-ery is in a. California. […]

Office Accounting, Inc., hires Perry to repair a computer on site for $400, but Perry does not show up as agreed. Office Accounting hires Raul to do the job for $3 Office Accounting may recover from Perry a. compensatory damages. […]

Refer to Fact Pattern 18-2. Digitals bank is a. the cashing bank. b. the depositary bank. c. the intermediary bank. d. the payor bank. A common ethical dilemma faced by the management of Spencer Hydraulics Corporation involves the effect that […]

Trend-Rite Clothiers, Inc., sells t-shirts to Brand Name Stores, Inc., under an existing con-tract. When textile costs increase, Brand agrees to a price increase, but later wants to cancel the con-tract. Brand may a. cancel the contract immediately. b. cancel […]

Kai files a suit against Lana based on one of Lanas statements that Kai alleges is fraudulent. To give rise to fraud, the statement must be one of a. emotion. b. fact. c. illusion. d. opinion. Odell is a director […]

Sigrud buys spiked mountain-climbing shoes from Rockridge Gear store. The spikes come out of the shoes when Sigrud is on the side of a mountain, caus-ing her to be injured in a fall. Rockridge breached a. an express warranty. b. […]

A maker of an instrument that is payable at a definite time does not have the option of paying before the stated date. a. True b. False For a party to a contract to receive relief from either a unilateral […]

In general, courts consider the fairness of a contract when deciding if the contract is binding. a. True b. False For an agents implied authority to be effective, aprincipal must ratify it. a. True b. False Answer: False Dhani, an […]

Juli types onto a computer what she intends to be “My Will and prints it out. Juli has capacity. “My Will is a. invalid. b. valid if Juli signs it. c. valid if Juli signs it and has three witnesses […]

To be negotiable, an instrument must be payable in afixed amount. a. True b. False Under the Statute of Frauds, fixtures, such as buildings, growing crops and minerals, are treated as real property. a. True b. False Answer: True Sales […]

Hi-Tech Company contracts to sell fiber optic cable to Internet Services, Inc. Hi-Tech may bring an action to recover the purchase price and inci-dental damages if Internet a. accepts the cable and pays for it. b. accepts the cable but […]

Whether a contracts limitation-of-liability clause will be enforced depends on the type of breach that the clause excuses. a. True b. False A continuation statement is effective only if it is filed within six months before the expiration of a […]

Patsy possesses twenty-four acres of remote, rugged land. Patsy has the right to use the property, in-cluding extracting silver from an existing mine, for life. Patsy also has the right to lease the land for a period not to exceed […]

The concept of a floating lien applies to a constantly changing inventory. a. True b. False Roger wants Andy to work late on a project. He tells Andy that the morally correct thing to do is to stay late at […]

Pure Oil Company enters into a contract with QuikBilt, Inc., to construct an oil pipeline to withstand specific conditions. If QuikBilt fails to meet this standard, which is construed as a breach of contract and a breach of a duty […]

Mariah promises to pay her assistant Nadine $10,000 in consideration of the ser-vices she provided over the years. Mariah never pays Nadine. Mariah is a. liable for payment of the $10,000. b. liable only if Nadine still works for Mariah. […]

A contract can include a provision stating that no damages can be recovered for certain types of breaches. a. True b. False Valley Bank retains the cancelled checks of its customers. Valley must be able to provide customers with legible […]

Mit-E Mart LLC was formed in New Jersey. Mit-E Marts members are Odel, who is a citizen of New Jersey, and Pola, who is a citizen of New York. For federal diversity jurisdictional purposes, Mit-E is a citizen of a. […]

A divorce revokes an entire will. a. True b. False If there is no definite period stated, a firm offer by a merchant is irrevocable without the necessity of consideration for up to six months. a. True b. False Answer: […]

Myron and Norah would like to form Originals, Inc., to do business in the art market. Generally, the articles of incorporation for a corporation do not include a. the name of the corporations registered agent. b. the duration and purpose […]

Della, an officer for Energy Petrol Corporation (EPC), buys 100 shares of EPC stock. One week later, EPC announces that it will merge with a competitor, Fuel Oil Company, and the price of EPC stock increases. One month later, Della […]

A contract must be in writing to be enforceable if the contract makes per-formance possible within any definite period of time. a. True b. False The injury suffered by a nonbreaching party due to the breach of a con-tract may […]

A clients negligence is never a defense to a charge of negligence against an accountant. a. True b. False Erin is a shareholder in African Adventures. As a shareholder, Erin a. owns shares of stock in African Adventures. b. is […]

If a director fails to use a reasonable amount of supervision over corporate officers and employees, then the director can be held liable for negligence. a. True b. False In most situations involving sales, rights and liabilities are determined by […]

After Edie solicits clients to invest in a nonexistent business, she is charged with “mail fraud. This requires, among other things, a. claiming that an item is “in the mail when it is not. b. deceiving postal authorities as to […]

A motion for a new trial will be granted only if a constitutional issue is involved. a. True b. False Businesspersons are expected to make decisions that are ethically sound. a. True b. False Answer: True Fiona borrows $1,000 from […]

Scott, a State Bank employee, deposits into his account checks that are given to him by bank customers to deposit into their accounts. This is a. embezzlement. b. larceny. c. money laundering. d. no crime. Solar Power, Inc., files a […]

A special indorsement names the indorsee. a. True b. False A court can refuse to enforce a contract that the court deems to have been unconscionable at the time it was made. a. True b. False Answer: True One purpose […]

In most contracts, promises of performance are expressly qualified. a. True b. False Future advances against a line of credit can be subject to the same collateral. a. True b. False Answer: True One purpose of criminal sanctions is to […]

A company can broadly prohibit its employees from criticizing the company via social media. a. True b. False A surety can never assert fraud as a defense. a. True b. False Answer: False Svetlana, a fifty-five-year-old member of a racial […]

If the goods or their tender fail to conform to the contract, the buyer can accept part and reject part. a. True b. False In a joint venture, the parent company in the United States retains complete ownership and authority […]

A business that holds itself out as being a corporation may not be able to deny corporate status, even if it makes no attempt to incorporate. a. True b. False Atlantic Applications, Inc., and Pacific Resale Company (PRC) enter into […]

Joe files a voluntary petition for Chapter 7 bankruptcy. His petition does not need to include a. a list of Joes secured creditors. b. a list of Joes unsecured creditors. c. a list of the occupations of all Joes creditors. […]

A seller does not have to use words such as “warrant to make an express warranty. a. True b. False Insurance is classified according to the amount of the payment on a claim. a. True b. False Answer: False An […]

The chief aim of the European Union and other trade organizations is to minimize trade barriers among their members. a. True b. False BurgerBoy Restaurant Corporation allows its trademark to be used as part of a domain name for BurgerBoyNY, […]

Conrad and Delilah are employees of AgriBio Feed & Seed Corporation. Under the Equal Pay Act of 1963, AgriBio can legitimately pay different wages on the basis of a. seniority. b. job descriptions. c. substantial equality of skill, effort, and […]

Kingston promises to pay Melina $500 to install a sump pump in his warehouse. Melina com-pletes the installation. The act of installing the pump a. imposes a moral obligation on Kingston to pay Melina. b. imposes no obligation on Kingston […]

Duffy is a passenger in a car that Caleb is driving when an accident occurs. Both Caleb and Duffy are emotionally rattled, but neither is physically hurt. Caleb is not liable to Dufy on a negligence theory because a. both […]

Few securities can be resold without registration. a. True b. False When a breach of contract occurs, the innocent injured party has a duty to mitigate the damages. a. True b. False Answer: True A time draft is payable on […]

Miranda is a U.S. citizen working in Europe for Tourist Vacations, Inc., a U.S. travel agency. Tourist fires Miranda for reasons that she believes vio-late U.S. antidis-crimination laws. Those laws apply a. extraterritorially. b. only to signatories of the North […]

Gail enters into a contract with Hi-Price Appliances, Inc. In a suit be-tween the parties over payment under the contract, Gail claims that a certain clause is unconscionable. If the court agrees, it may a. enforce, limit, or refuse to […]

Compliance with the law does not necessarily fulfill all ethical obligations. a. True b. False A license permits the use of anothers intellectual property for certain limited purposes. a. True b. False Answer: True Merchants are not required to warrant […]

Force majeure clauses in international business contracts commonly set forth the major clauses of the contracts. a. True b. False Coco is considering forms of business organization for her concessions businessCocos Cupcakes. Most states require that a limited liability company […]

The Employee Polygraph Protection Act of 1988 prohibits most private employers from doing all of the following except a. requiring or causing employees or job applicants to take lie-detector tests. b. using, accepting, or referring to, or asking about the […]

The words used in an insurance contract are interpreted against the party who applied for the policy. a. True b. False A de jure corporation is one that is not properly formed. a. True b. False Answer: False Dale files […]

In an attempt to combat spam, thirty-six states have enacted laws that prohibit or regulate its use. a. True b. False Bruno is a businessperson with investments in legal and illegal opera-tions. Bruno may be subject to penalties under RICO […]

Kelly signs an instrument in favor of Leo that states it is ‘subject to a cer-tain agreement between Kelly and Mona. This instru-ment is a. negotiable. b. nonnegotiable, because it is made subject to a separate agreement. c. nonnegotiable, because […]

Oversight Corporation monitors employees electronic communications made in the ordinary course of business. This a. isa violation of the rights of Oversights employee. b. iswithin Oversights rights as an employer. c. isa subject for dispute resolution by the communications providers […]

In most states, a person must be sixteen years of age to execute a valid will. a. True b. False The Childrens Internet Protection Act requires public schools and libraries to use filtering software to block childrens access to adult […]

Employees who receive tips on the job cannot be paid less in direct wages than the federal minimum wage. a. True b. False Failure to live up to a standard of care may be an act or an omission. a. […]