Business Law Midterm: Multiple choice – Flashcards
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which of the following is not a primary function of law? a). maintain ability in the social, political function of law b). protect ownership of private property c). insure to all a minimum living d). preservation of the state
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c
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while the principle of stare decisis provides that courts will follow their precedents in making subsequent decisions, nevertheless a court may decline to follow its precedents: a). to correct an erroneous decision b). to choose among conflicting precedents c). in recognition of the fact that the needs of society change over time d). all of the above
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d
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what is not true of an action brought under criminal law? a). it involves a wrongful act b). criminal guilt must be proven beyond a reasonable doubt c). it must be brought by the government d). the main purpose of the suit is to require payment of money damages to the victim
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d
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the highest source of law in the United States is a). an executive order of the President b). an interstate compact c). the federal Constitution d). the state constitutions
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c
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which of the following statements is correct? a). law and morality are the same b). if something is legal, it is moral c). the law is strongly affected by moral concepts d). all of the above are correct
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c
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generally, a crime consists of which of the following? a). a wrongful or overt act b). the requisite criminal intent c). both a and b d). none of the above
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c
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how are crimes distinguished from other forms of unlawful conduct? a). they are prosecuted by the victims b). they result in payment of damages to the victim c). they are offenses against all of society and are punished by a find and/or imprisonment d). all of the above
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c
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which of the following is not required in the commission of an intentional tort? a). a duty owed b). a breach of the duty c). injury or damage to another d). all of the above are required
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d
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the standard of care applicable to a child is that of: a). the reasonable person b). a reasonable person who is incapable of exercising the judgement of an adult c). a reasonable person of like age, intelligence and experience d). a reasonable person who has a mental disability
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c
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a plaintiff who sues under res loquitur must show that a). an event occurred which would not normally occur in the absence of negligence b). the defendant intended to cause the harm suffered by the plaintiff c). other possible causes have been eliminated by the evidence d). none of the above
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a
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an executed contract is one in which: a). all duties under it have been performed by all parties to the contract b). at least one party has performed all of its duties under the contract c). there are one or more unperformed promises by any party to the contract d). the contract is wholly unperformed by one ore more of the parties
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a
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kay, an art collector, promised hammer, an art student that if hammer could obtain certain rare artifacts within two weeks, kay would pay for hammer's post-graduate education. At considerable effort and expense, hammer obtained the specified artifacts within the two-week period. When hammer requested payment, Kay refused an claimed that there was no consideration for the promise. Hammer would prevail against kay based on a). unilateral contract b). unjust enrichment c). public policy d). quasi contract
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a
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each of the following is an essential element of a binding promise except a). mutual assent b). consideration c). capacity d). a writing signed by the parties
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d
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a contract in which both parties exchange promises is a(n): a). formal contract b). quasi contract c). implied in fact contract d). bilateral contract
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d
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which of the following would be an offer? a). will you buy my computer for $1,000 b). i sure would like to sell this computer for $1,000 c). i will sell you this computer for $1,000 d). none of the above are offers
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c
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a rejection of an offer by that offeree is effective: a). at the moment that the offeree sings the notice of rejection b). at the moment that the offeree dispatches the notice of rejection c). at the moment that the offeror receives the notice of rejection d). none of the above
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c
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on April 1, fine corporation faxed moss an offer to purchase moss' warehouse for $500,000. The offer stated that it would remain open only until April 4 and that acceptance must be received to be effective. Moss sent an acceptance on April 4 by overnight mail and fine received it on April 5. Which of the following statements is correct? a). no contract was formed because Moss sent the acceptance by an unauthorized method b). no contract was formed because Fine received Moss' acceptance after April 4 c). a contract was formed when Moss sent the acceptance d). a contract was formed when Fine received Moss' acceptance
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b
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pat mails trish an offer to buy blackacre. Trish received the offer on May 1. On May 2, trish delivers a letter of acceptance to national express, but due to their error the letter is not sent by the company until May 3. Pat receives the acceptance on May 4. A contract is formed on a). May 1 b). May 2 c). May 3 d). May 4
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b
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Opal offered, in writing, to sell Larkin a parcel of land for $300,000. If Opal dies, the offer will: a). terminate prior to Larkin's acceptance only if Larkin received notice of Opal's death b). remain open for a reasonable period of time after Opal's death c). automatically terminate despite Larkin's prior acceptance d). automatically terminate prior to Larkin's acceptance
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d
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a contract assented to by a party acting under improper physical coercion is: a). void b). voidable at the election of the coerced party c). binding on both parties d). none of the above
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a
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which of the following would be a statement of fact? a). for the price, this is the best typewriter available b). this is the one that I would recommend c). this furniture was refinished last year d). with a few more lessons, you should be able to compete in the regional dance competition
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c
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which of the following will be legally binding on all the parties despite the lack of consideration? a). a promise to donate money to a charity which was relied upon by the charity in incurring large expenditures b). an employer's promise to pay an employee an additional $400/month for the remainder of the employee's agreed upon year of employment c). a material modification signed by the parties to a contract to purchase and sell a parcel of land
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a
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colleen agrees to pay $10 for david's computer which is worth $300. colleen's consideration a). is not legally sufficient b). appears to be inadequate but is probably legally sufficient c). is a forbearance d). is inadequate but the contract will be enforced based on moral obligation
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b
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a minor may disaffirm a contract for personal property a). before attaining majority b). on the day of attaining majority c). within reasonable time after reaching majority d). all of the above
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d
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the following promises or contracts are within the statute of frauds except: a). the promise of an executor or administrator that he personally will pay all of the decedent's creditors in full b). a promise to marry made in consideration for some promise other than a reciprocal promise to marry c). a promise made by a father to his son by which the father will pay the son's debt in the event of his son's default d). a promise made by a father to his son's creditor to pay the son's debt in the event of his son's default
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c
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by an oral agreement entered into on January 1, 2015, A hires B to work for eleven months starting on February 1, 2015. This contract is a). enforceable because it is outside the statute of frauds b). enforceable because it can be performed within a year of the start of performance c). unenforceable because it cannot be performed within one year of when it was made d). a and be above
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a
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the statute of frauds a). prevents the use of oral evidence to contradict the ters of a written contract b). applies to all contracts having consideration valued at $500 or more c). requires the independent promise to pay the debt of another to be in writing d). applies to all real estate leases
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c
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Sand orally promised Frost a $10,000 bonus, in addition to a monthly salary, if Frost would work for two years for Sand. If Frost works for the two years, will the Statute of Frauds prevent Frost from collecting the bonus? a). No, because Frost fully performed in reliance on the oral promise b). No, because the contract did not involve an interest in real estate c). Yes, because the contract could not be performed within one year d). Yes, because the monthly salary was the consideration of the contract
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a
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which of the following assignments of contract rights are not assignable? a). assignments that would materially increase the risk or burden on the obligor b). assignments which would transfer a personal contract right c). assignments which are prohibited by law d). all of the above
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d
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arthur and bob enter into a contract. Bob later delegates his duty of performance to clark. which of the following is true? a). if clark fails to perform, bob has a duty to perform b). arthur will always have to accept clark's performance c). the delegation is valid only if all three parties agree d). bob must compensate clark for accepting the delegation
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a
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which of the following would constitute a discharge of the contract? a). full performance by all of the parties b). breach of the contract by either or both parties c). agreement of the parties to rescind d). all of the above
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d
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which of the following statements is not a correct principle to be applied in determining what constitutes a material breach? a). a failure to timely perform a promise is a material breach even if time is not of the essence b). partial performance is a material breach if an essential part of the contract is not performed c). if quantitatively significant, a breach will be considered material d). an intentional breach of a contract is generally held to be material
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a
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Kay contracted to sell Hodge a building for $310,000. The contract required Hodges to pay the entire amount at closing. Kay refused to close the sale of the building. Hodges sued Kay. To what relief is Hodges entitled? a). punitive damages and compensatory damages b). specific performance and compensatory damages c). consequential damages or punitive damages d). specific performance
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d
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Arthur, a world famous rock star, has a contract to perform at the Superdome on New Year's Eve. However, he decides he would rather spend the night with his family and friends and informs the owners of the Superdome. a). the owners of the superdome are entitled to specific performance because arthur's services are unique b). the owners of the superdome will have to wait until after January 1 to sue for breach of contract c). the owners of the Superdome are entitled to damages, but they are not entitled to specific performance d). because an adequate remedy at law is available here, a court would be unable to issue an injunction prohibiting Arthur from performing at Madison Square Garden on New Year's Eve if they gave him a better offer
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c
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which of the following transactions would be governed by article 2 of the UCC? a). the sale of a house b). the sale of a typewriter c). the lease of a typewriter d). a contract of employment
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b
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a "merchant" is defined by the Code as a person: a). who is a dealer in the goods involved b). who by his occupation holds himself out as having knowledge or skill peculiar to the goods or practices involved c). who employs an agent or broker whom he holds out as having knowledge or skill peculiar to the goods or practices involved d). all of the above
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d
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under the Code, if a non-merchant seller's acceptance contains a term in additional to those contained in the non-merchant buyer's offer, the additional term is a). constructed as a proposal for an addition to the contract b). ignored c). constructed as part of the contract even if it materially alters the agreement d). constructed as part of the contract unless the buyer expressly objects to its inclusion
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a
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under the Code, which of the following requires consideration to be binding? a). a modification of an existing contract b). a merchant's firm offer c). a contract to sell goods d). a written discharge of a claim after a breach of contract
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c
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a signed writing by a merchant to hold open an offer is a). an option b). a firm offer c). parole evidence of an agreement d). none of the above
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b
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under the UCC sales article, which of the following statements is correct? a). only the seller is obligated to perform the contract in good faith b). the contract will be either a sale or return or sale on approval contract c). the contract may not involve the sale of personal property with a price of more than $500 d). whether the UCC sales article is applicable does not depend on the price of the goods involved
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d
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to satisfy the UCC statute of frauds regarding the sale of goods, which of the following must generally be in writing? a). designation of the parties as buyer and seller b). delivery terms c). quantity of the goods d). warranties to be made
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c
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tender of conforming goods by the seller entitles him to a). acceptance of the goods by the buyer b). payment of the contract price by the buyer c). both acceptance of the goods and payment of the contract price by the buyer d). neither acceptance of the goods nor payment of the contract price by the buyer
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c
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if either the tender of delivery or the goods fail in any respect to conform to the contract, the buyer may a). reject the whole not b). accept the whole lot c). accept any commercial unit(s) and reject the rest d). all of the above
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d
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with regard to a contract governed by the UCC sales article, which of the following statements is correct? a). merchants and non-merchants are treated alike b). the contract may involve the sale of any type of personal property c). the obligations of the parties to the contract must be performed in good faith d). the contract must involve the sale of goods for a price more than $500
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c
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in a shipment contract, risk of loss passes to the buyer when a). the parties enter into the contract b). the goods leave the seller's business c). the goods are delivered to a carrier d). the goods are received by the buyer
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c
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if the seller ships nonconforming goods to the buyer, the risk of loss remains on the seller until a). the buyer accepts the goods b). the seller remedies the defect in the goods c). either a or b d). both a and b
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c
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under the UCC sales article, a seller will be entitled to recover the full contract price from the buyer when a). goods are destroyed after title passed to the buyer b). goods are destroyed while risk of loss is with the buyer c). the buyer revokes its acceptance of the goods d). the buyer rejects some of the goods
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b
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in order for the implied warranty of fitness for a particular purpose to apply a). the seller must, at the time of contracting, have reason to know of the particular purpose b). the buyer must actually rely on the seller's skill and judgement to furnish suitable goods c). either a or b d). both a and b
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b
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Mel Merchant sells lawnmowers at his retail store. Mel impliedly warrants a). that the mowers are the best available b). that the mowers are fit for lawn mowing and are of fair, average quality c). that all possible safety devices have been incorporated into the design d). that the mowers will last at least two years
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b
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which of the following would constitute an express warranty? a). Sam Seller shows a sample to Bill Buyer and says the product in the box is just like it b). Sam Seller says the DVD Bill Buyer wants to buy is "the best around" c). Sam Seller says the DVD Bill Buyer wants to buy will give him many houses of enjoyment d). Sam Seller tells Bill Buyer that he really likes the Sony DVD better than the Sharpe one
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a
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which of the following conditions must be met for an implied warranty of fitness for a particular purpose to arise in connection with a sale of goods? a). the warranty must be in writing b). the seller must know that the buyer was relying on the seller in selecting the goods c). all of the above d). none of the above
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b
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which of the following is not a money oriented remedy? a). cover and obtain damages b). an action to recover market price damages c). cancellation d). an action to recover damages for nonconformity
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c
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a signature on an instrument may a). appear in the upper right-hand corner b). be a thumbprint c). be an assumed name d). be all of the above
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d
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an instrument is non-negotiable if a). it is payable at a stated rate of interest which will increase by 2% upon default b). it provides for the recovery of costs and attorney's fees upon default c). it is payable with a fixed addition if paid after maturity d). none of the above
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d
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which of the following is negotiable and subject to article 3 of the UCC? a). a check that states "Pay to Jose Martinez" b). a draft that states "Pay to Jose Martinez" c). a draft that states "I wish you would pay Jose Martinez" d). a note that states, "Due Jose Martinez $200"
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a
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A bank issues a negotiable instrument that acknowledge receipt of $40,000. The instrument also provides that the bank will repay the $40,000 plus 6% interest per annum to the bearer 90 days from the date of the instrument. The instrument is a a). certificate of deposit b). time draft c). trade or banker's acceptance d). cashier's check
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a
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assuming each of the following is negotiable, which qualifies as a draft under the UCC? a). a warehouse receipt b). a demand promissory note c). a document of title d). a cashier's check
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d
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which of the following is needed to be a holder of a bearer instrument? a). a transfer for value b). possession of the instrument c). the endorsement of the transferor d). an allonge
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b
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negotiability is destroyed if an instrument is endorsed with the words: a). "pay to A only" b). "pay to the order of A" c). "pay to A or his order" d). none of the above
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d
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bearer paper may be converted in to order paper by a). a blank endorsement b). a special endorsement c). a restrictive endorsement d). a qualified endorsement
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b
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Robyn endorsed her paycheck with her signature and the words "for deposit only." This endorsement is a a). blank endorsement b). special endorsement c). restrictive endorsement d). blank, restrictive endorsement
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d
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persons may acquire the rights of a holder in due course if they take the instrument a). for value b). in bad faith c). with notice that is has been dishonored d). all of the above
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a
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to the extent that a holder of a negotiable promissory note is a holder in due course, the holder takes the note free of which of the following defenses? a). minority of the maker where it is a defense to enforcement of a contract b). forgery of the maker's signature c). discharge of the maker in bankruptcy d). non-performance of a condition precedent
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d
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Tonya has a checking account with First Bank. She deposits $300 check into her account and then writes a check to Macy's Department Store in the amount of $100 which First Bank then pays from her account a). First Bank is a holder in due course in the amount of $300 b). First Bank is a holder in due course in the amount of $100 c). First Bank is not a holder in due course, because it has not given value d). First Bank is not a holder in due course, because it has a customer relationship with Tonya
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d
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a signature may be a). printed b). made by an authorized agent c). typed d). all of the above
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d
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a holder who intentionally strikes out an endorser's signature a). has discharged that endorser b). is liable for conversion c). has broken the chain of title d). is not entitled to payment
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a
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a written stop payment order a). is valid for 60 days b). is valid for 90 days c). may be renewed in writing d). a and c, but not b
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c
