Archives: Quiz

Parol evidence refers to anything (other than the written contract itself) that was said, done, or written before or as the parties signed the contract. a. True b. False Cameron, editor of the local newspaper, assigned to Jim the writing […]

An S Corporation cannot have more than ____ shareholders. a. 100 b. 75 c. 50 d. 25 Wholesome Bread, Inc. advertised that its honey wheat bread had 25% fewer calories than a competing brand, Valley Grains. In fact Wholesome’s bread […]

Gateway sold a big-screen TV and entertainment center to Iris for $2000 on credit. Iris signed a promissory note and gave Gateway a security interest in the TV and entertainment center. Gateway filed a financing statement in the appropriate public […]

Under the UCC, the seller’s right to correct a shipment of non-conforming goods is called: a. correction. b. cure. c. cover. d. retender. Tess, a tenant, moves from her apartment in breach of the lease agreement. The landlord, Lenny, may […]

All states allow the remedy of rescinding a contract for the sale of goods while still allowing the remedy of suing for damages. a. True b. False After Ashley was denied credit for a new car, she checked her credit […]

If Lorenzo is seeking an injunction against Brenda to prevent her from selling materials that infringe his copyright, he is entitled to a jury trial if the value of the materials is over $100. a. True b. False A defense […]

Ruppart Manufacturing has a contract for the sale of 100 cases of teaching supplies to Teachers Co-op, Inc. Payment of the order is to be made in installments over the next year. Ruppart Manufacturing keeps a security interest in the […]

Bagsby owns a business selling insects for organic gardening. Bagsby is seeking a loan from First Natural Bank. The loan officer is asking that the loan be secured by Bagsby’s inventory of insects, now owned or hereafter acquired. In order […]

Rich and Archie sign an agreement in which Archie agrees to deliver ten cases of champagne in 5 days. The parties negotiated and meant to say in the written agreement, delivery in 50 days. If the evidence is clear that […]

Mercury Motors inadvertently mixes up a work order on Peter’s car. Peter brought the car in to have the tires rotated. Mercury tuned up the motor by mistake, conferring a benefit on Peter. If Mercury Motors insists that Peter pay […]

An appeals court can rule that a trial court’s ultimate ruling was correct even if the trial court made some minor errors during the trial. a. True b. False Larry purchased a Leisure Lawnmower because the company salesperson intentionally misled […]

A rule that is not automatically discriminatory, but which may be discriminatory in practice because it excludes too many people in a protected group is considered a. disparate treatment. b. prima facie discrimination. c. unbalanced treatment. d. disparate impact. Southern […]

Which of the following statements is correct? a. Violent street crime results in a greater monetary loss to society than white-collar crime. b. White-collar crime results in a greater monetary loss to society than violent street crime. c. Studies are […]

Obscene speech is protected by the First Amendment. a. True b. False Robert, a minor, buys a stereo from Jane for $200. State law allows a minor to disaffirm contracts within a reasonable time after turning 18. Robert disaffirms the […]

Shelly offers to sell Jane goods both parties know are stolen. Jane accepts the offer, and agrees to pay for the goods. Later, Jane refuses to accept or pay for the goods. If Shelly sues Jane for breach of contract, […]

A trademark lasts for: a. 20 years after the application is filed. b. 70 years after the death of the creator. c. 10 years, but it can be renewed for an unlimited number of terms as long as it is […]

Travis had too many beers at the baseball game. Ed realized Travis was so intoxicated he wouldnt know what he was doing, so he got Travis to sign a promise to sell his motorcycle to Ed for $50. When Travis […]

In January, Alex promised to pay Y-K Inc. $5,000 if it would refrain from filing suit against him on a breach of contract action. Y-K agreed and accepted a $5,000 check from Alex. Which of the following statements is correct? […]

The power of federal agencies is limited by: a. statutory control in the enabling legislation and the Administrative Procedures Act. b. political control by Congress and the President. c. judicial review. d. All of these. Which of the following is […]

Roxanne was injured when she fell in a hole while walking across her landlord’s parking lot. She and her lawyer hope they can settle the claim. Which of the following statements about settlements is correct? a. A case can be […]

Tony raped Jane in the parking lot of Joe’s Brew Pub. The District Attorney’s office prosecuted Tony on rape charges. Subsequently, Jane filed a lawsuit against Tony for money damages. Classify each legal action. a. The District Attorney’s case was […]

Alice signs a contract with Bob to buy Bob’s house for $150,000, with the clause, “if I am able to obtain a mortgage loan for $125,000, at no more than 7% interest, payable over 15 years.” Assume that Alice tries […]

Drawers and indorsers are secondarily liable on negotiable instruments. a. True b. False Walter enters a dentist office and points to a damaged tooth. The dentist, Matt, treats the tooth. If Walter refused to pay and Matt sued: a. Walter […]

Imogene takes her diamond solitaire ring to Sparkle Jewelry Shop to have the prongs holding the diamond retipped and have the ring cleaned. The clerk at Sparkle says she will have to leave the ring and that it should be […]

Unsolicited commercial e-mail (UCE) or unsolicited bulk e-mail (UBE) messages: a. are commonly known as “cookies.” b. constitute about 90 percent of all e-mail. c. are estimated to be fraudulent either in content or packaging in approximately one-fourth of all […]

Burns Medicine Shop developed a website where customers could ask the pharmacists questions and could refill prescriptions online. What statute requires Burns to have and disclose a privacy policy to anyone using the website? a. The FTC Act. b. The […]

In a strict liability case, the courts still consider if the defendant acted in a reasonable and prudent manner. a. True b. False An agent must obey all instructions of the principal. a. True b. False Answer: False Larry has […]

Ramona has received a discharge in bankruptcy, but wants to reaffirm a debt to her sister. To be valid, the reaffirmation: a. will be scrutinized by the court to make sure her sister has not unfairly pressured Ramona. b. will […]

Which statute prohibits discrimination on the basis of disability by the federal government, federal contractors, and all entities that receive federal funds? a. The Civil Rights Act of 1866 b. The Equal Pay Act of 1963 c. The Rehabilitation Act […]

Bill is injured while standing on the corner of Hollyhock and Vine when Mia’s new Hog speeds out of control because of a defective part. In most jurisdictions, Bill: a. can sue the motorcycle manufacturer even though he does not […]

Mark, a power tool salesman, promises Jill, a customer, that the Turbo Power Hedge Trimmer 1000 will easily cut through bamboo up to 3 inches thick. Mark’s statement constitutes an express warranty if Jill purchases the hedge trimmer. a. True […]

The largest source of new law is court decisions. a. True b. False Tom receives an e-mail from someone alleging to be a Nigerian government official who has stolen money from the government. He needs some place safe to keep […]

A summons is a paper ordering a defendant to appear in court at a certain time. a. True b. False The term “corporate manager” refers to: a. directors. b. corporate officers. c. Both of the above. d. None of the […]

Judith is a CPA with an excellent reputation and client base. She sells her tax preparation business to Shawn, and the sales contract includes a noncompete clause restricting Judith from opening a similar business for two years within a 10-mile […]

Mayco has received goods from Wallace pursuant to a sale or return agreement. If Mayco subsequently declares bankruptcy, the goods will be: a. returned to Wallace because title did not pass to Mayco under this type of sale. b. belong […]

Buddy was hired to play drums for a rock group scheduled to tour the Midwest. Part way through the tour, Buddy was tragically killed in a plane crash. The tour had to be discontinued until a new drummer could be […]

Nominal damages normally establish that the defendant acted wrongly. Unless the parties agree otherwise, the buyer or lessee has an absolute right to inspect the goods before making payment. Answer: T Liability insurance protects against liability imposed on the insured […]

Performance of an accord discharges an original contractual obligation. An assignee can compel the obligor to perform. Answer: T In a situation involving a price-fixing agreement, normally each competitor is liable for the total amount of any damages. Answer: T […]

In a sole proprietorship, the proprietor shares the burden of any losses or liabilities incurred by the business enterprise with the government. Modern statutes permit the holder of an artisans lien to foreclose and sell the property subject to the […]

Traditionally, a professional owed no duty to those with whom the professional had a direct contractual relationship. Using the authority of a court, a plaintiff can obtain from an Internet service provider the identity of a person responsible for a […]

The states and the Securities and Exchange Commission jointly created a simplified securities registration process for large businesses. The measurement of compensatory damages for breach of contract is the same for all types of contracts. Answer: F Firms are obligated […]

Service of process is the process of obtaining information from an opposing party before trial. A “donee beneficiary is a type of an “incidental beneficiary. Answer: F A restriction on commercial speech is valid as long as it forbids only […]

Dissolution is the legal death of the artificial “person of a corporation. The first step in the incorporation process is to select a state in which to operate. Answer: T Securities that are exempt from the registration requirement can not […]

To incorporate, you must first choose a corporate name and file it with the appropriate state office. When a customers negligence contributes to a forgery, the bank normally is obligated to recredit the customers account for the amount of the […]

Any crime committed with a computer is a cyber crime. Tank is a director and the majority shareholder of Unique New Investment Corporation (UNIC). Tank buys, for $1,500, an option to purchase a tract of real estate for $50,000. Tank […]

An outside director is a director who is also an officer of the corporation. Protection against retaliation under the Civil Rights Act of 1964 does not extend to an employee who speaks out about discrimination on his or her own […]

False imprisonment can be a tort if confinement or restraint is unjustified. An insurable interest in property must exist when a policy is purchased. Answer: F Anyone who wrongfully obtains inside information and trades on it for his or her […]

Damages compensate a party for harm suffered as a result of anothers wrongful act. A mere reference in an instrument to another writing makes the promise or order conditional. Answer: F A party who would sustain a financial loss from […]

An accountant is not liable for a false statement that affects the price of a security if the buyer or seller of the security knew the statement was false. A mere acknowledgment of a debt is not sufficient to create […]

A partner owes to the partnership and the other partners a duty of loyalty. A security agreement can be filed to perfect a security interest. Answer: T Copyright protection is automaticregistration is not required. Answer: T In most states, a […]