Archives: Quiz

1) Implied conditions are not understood to be part of an agreement but are found in the express language of the agreement. 2) An agent’s authority to act on behalf of a principal must be apparent to be real. Answer: […]

1) In 2005, Recreation & Relaxation Corporation began making and selling all-terrain vehicles (ATVs) under the mark “R&R.” Ten years later, recoveryandrehabilitation.com, Inc., a different company selling medical equipment and supplies, begins to use “R&R” as part of its URL […]

1) The law imposes strict liability as a matter of public policy based in part on the assumption that manufacturers can better bear the costs associated with injuries caused by their products. 2) A contract with an unlicensed person is […]

1) In a Chapter 13 case, after the debtor has completed all payments, the court grants a discharge of all debts provided for by the repayment plan. 2) An innocent party does not need to suffer an injury to collect […]

1) Fact Pattern 13-B1 Quik Downtown Delivery contracts with Rico’s Tacos to deliver its products. Both parties change their minds, however, and inform each other that they would like to cancel the contract. Refer to Fact Pattern 13-B1. The next […]

1) Hillside Vineyards is a family limited liability partnership. All of the partners must be a.natural persons only. b.natural persons or persons acting as fiduciaries for natural persons. c.persons acting as fiduciaries for natural persons only. d.related. 2) The Occupational […]

1) Phoenix, a salesperson for Quality Fruit, Inc., shows Robert, a buyer for Sweet Home Fruit Company, samples of peaches, stating that any shipment will match the samples. This statement is a.an express warranty. b.an implied warranty. c.a warranty of […]

1) To borrow money to finance the start-up of his business, Rollo executes an instrument in favor of Security Bank. For the instrument to be negotiable, the signature must be a.anywhere on the instrument. b.anywhere on the lower half of […]

1) Sally is the secured party in a transaction with Lilly, who is the debtor. Sally files a financing statement with the appropriate state official. The financing statement must contain a.Lilly’s signature. b.Sally’s bank account information. c.Lilly’s credit report. d.a […]

1) Lewis makes a note payable to Maxi Finance Corporation. Maxi Finance indorses the back of the note and negotiates it to Notes & Drafts Investments, Inc. Primarily liable on the note is a.none of the choices. b.Maxi Finance. c.Notes […]

1) Efron borrows money to pay his tuition and signs a note payable to First Citizens Bank. The bank assigns the note to Guaranty Bank. The assignment a.does not affect Efron’s obligation to pay the note as promised. b.frees Efron […]

1) Refined Grains, Inc., is a Kansas-based firm that does business throughout the world. Refined Grains manages retail and wholesale operations, buys and sells commercial venues, undeveloped land, and agricultural products, and other goods. Refined Grains has had to deal […]

1) Melanie files an employment discrimination suit against Natural Resources Industries Corporation under the Civil Rights Act of 1964 on a disparate-impact theory. To succeed, Melanie must show that members of a protected class are adversely affected by any of […]

1) Urban Commerce, Inc., issues bonds, which are also known as a.cumulative investments. b.fixed-income securities. c.equity securities. d.preferred stock. 2) Animal Feed Corporation and Beneficial Trucking, Inc., enter into a contract for Beneficial to transport a truckload of hay for […]

1) Garth owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Helen agrees to buy “Garth’s ATV” for $750. Garth believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is […]

1) In Fuel Injection Products & Service Corporation’s suit against Gears & Cylinders, Inc., the jury returns a verdict in Fuel Injection’s favor. Gears & Cylinders files a motion asking the judge to set aside the verdict and begin new […]

1) Savers Mart, Inc., distributes its merchandise on an interstate basis. Under the commerce clause, Congress has the power to regulate a.any commercial activity in the United States. b.only activities that are in intrastate commerce. c.only activities that are in […]

1) Gerald files a petition in bankruptcy. An automatic stay will apply to actions by creditors seeking to collect Gerald’s debts comprised of a.alimony. b.child-support. c.none of the choices. d.car payments. 2) Megan reaches into Ned’s pocket and takes his […]

1) Beck is an accountant who prepares her clients€ tax returns. Cole is not an accountant, but he also prepares tax returns for clients. Under the Internal Revenue Code, liability for preparing a false return may be imposed on a.Beck […]

1) Delaney is an accountant charged with negligence by Estimation & Valuation Services Inc., a client. Delaney may successfully defend against the claim if he can show that a.scienter was lacking. b.he complied with all International Financial Reporting Standards. c.the […]

1) Ren© operates The Spicy Chocolatier Caf© chain of restaurants. “The Spicy Chocolatier Caf©” is a.a certification mark. b.none of the choices. c.a service mark. d.a trade name. 2) Open Pit Excavation Inc. operates a rock quarry next to Robyn€s […]

1) InfoFree Inc., makes and sells devices and services for the circumvention of encryption software and other technological antipiracy protection. Under the Digital Millennium Copyright Act, this is a.a violation of copyright law. b.prohibited but not a violation of copyright […]

1) Dental Clinic obtains an insurance policy that protects its members against negligence claims by their patients. This is a.casualty insurance. b.employer’s liability insurance. c.malpractice insurance. d.workers’ compensation insurance. 2) Discount Retail Corporation ‘s social media policy directs its employees […]

1) Commercial Decor, Inc., files a suit against Discount Mart Corporation, asking the court to enforce an oral contract between the parties under the doctrine of promissory estoppel. This doctrine applies in a.all states. b.no states. c.one state. d.some states. […]

1) Orsais a shareholder inPickles& PreservesCorporation. In some states, Orsamay be liable to the firm’s creditors for unpaid corporate debts if she a.accepts a dividend knowing that it was paid from retained earnings. b.receives shares issued by the firmfor less […]

1) Gold & Sweet Company bottles and sells maple syrup from its plant in Vermont. On the labels is a logo that states “100% Genuine New England Maple Syrup Certified by the Northeast Maple Syrup Harvesters Association.” This logo is […]

1) Mainstay, Inc., sponsors NowUCMe, a social-networking, video- and photo-sharing site. To use NowUCMe, Mainstay requires users to accept terms of service associated with the site. By clicking on “accept,” users enter into a contract a.after thirty days. b.as soon […]

1) A security interest is enforceable only if the collateral is in the creditor’s possession. 2) Bonds represent the borrowing of funds by firms. Answer: T 3) Chi-Lan files a petition in bankruptcy for relief through an individual’s repayment plan. […]

1) The decisions made by the courts establish the boundaries of the law as it applies to almost all business relationships. 2) Whenever a work-related injury or disease occurs, employers must make reports directly to the Occupational Safety and Health […]

1) No contract can prohibit delegation of the duties of the contract. 2) Attempted monopolization is a violation of antitrust law. Answer: T 3) Major credit reporting agencies must provide consumers with free copies of their own credit reports every […]

1) When a person dies without a valid will, and no heirs exist, the state will assume ownership of the property. 2) When a franchise agreement contains a notice-and-cure provision, a franchisee’s breach of the duty of honesty and fidelity […]

1) A bailee must exercise reasonable care in preserving the bailed property. 2) Either the security agreement or the financing statement – but not both – must describe the collateral in which the secured party has a security interest. Answer: […]

1) Property consists of the legally protected rights and interest of a person in anything with an ascertainable value that is subject to ownership. 2) The results of a consolidation are the same as those of merger. Answer: F 3) […]

1) Preemptive rights permit a director to veto, or “preempt,” any proposal that the shareholders have voted to approve or disapprove. 2) The courts, in interpreting statutory law, often rely on the common law as a guide to what the […]

1) The key to liability under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 is whether information omitted or misrepresented in connection with the purchase or sale of a security is material. 2) A principal […]

1) A license is a right to go onto land owned by another and take away some part of the land itself or some product of the land. 2) An injured party may sue a business polluter in tort under […]

1) It is a violation of federal law to sell a pesticide or herbicide that has a chemical strength different from the concentration declared on the label. 2) International treaties never stipulate arbitration for resolving disputes. Answer: F 3) Most […]

1) A corporation’s creditors want to be notified when the firm is dissolved so that they can make a tender offer. 2) If a franchisee is induced to enter into a franchise contract by the franchisor’s fraudulent misrepresentation, the franchisor […]

1) When the risk of loss for goods passes from a seller to a buyer is generally determined by the contract between the parties. 2) No federal court has held that digitally sampling a copyrighted sound recording of any length […]

1) Any lawsuit against the business or its employees does not lead to unlimited personal liability for the owner of a sole proprietorship. 2) To restrict or encourage exports, Congress can set quotas on various items, such as grain being […]

1) The distribution of promotions and other job benefits according to a seniority system is not normally a good defense to a suit for employment discrimination. 2) Goods associated with real estate often fall within the scope of Article 2 […]

1) The rights and remedies of secured parties are not cumulative – if a creditor is unsuccessful in enforcing rights by one method, he or she cannot pursue another method. 2) A seller is prohibited from charging different prices to […]

1) A failure to follow generally accepted accounting principles and generally accepted auditing standards is proof of a lack of due diligence. 2) Professionals are governed by the contracts they enter into with their clients. Answer: T 3) The Equal […]

1) Under the Sarbanes-Oxley Act of 2002, chief financial officers must certify the accuracy of information in corporate financial statements and reports that are filed with the Securities and Exchange Commission. 2) When deciding which form of business organization to […]

1) The party against whom a lawsuit is brought is the plaintiff or petitioner. 2) Most states do not allow automobile repair shops to hold a customer’s car when the customer refuses to pay for repairs already completed. Answer: F […]

1) In most states, statutes require leases for terms exceeding one year to be in writing, and state or local law often dictates permissible lease terms. 2) Most states do not permit the corporate articles or bylaws to authorize compensation […]

1) The minimum-contacts requirement is usually met if a corporation advertises or sells its products within a state. 2) A public authority, such as a state€s attorney general, can sue to stop a ‘public′ nuisance. Answer: T 3) A business […]

1) Securities generally do not include any documents evidencing corporate ownership or debt. 2) There are age requirements for the witnesses who attest to a will. Answer: F 3) Procedural law consists of all laws that outline the methods of […]

1) An executor is a personal representative named in a will. 2) In most bailments, the bailee can retain the goods given by the bailor and return equivalent property. Answer: F 3) Under the doctrine of comparative negligence, only the […]

1) Some countries provide insurance for their citizens’ investments abroad. 2) Clothing is a “necessary.” Answer: T 3) The Consumer Product Safety Commission conducts research on the safety of individual consumer products and maintains a clearinghouse on the risks associated […]