business law sample questions – Flashcards
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Ron, a renowned architect, sells to Jan an apartment that he has not lived in for many years. After jan moves in, she discovers a nuber of ron's drawings in the closet that were produced during his early career and would now be considered valuable. Ron files suit to get the drawings. Ron should:
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Prevail because there was no mutual assent.
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Sandy engages in fraud to trick Todd into agreeing to an expensive, one-sided contract. In this circumstance,
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the transaction is not voluntary because there is no "mutual assent"
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In selling software to A-one corpation, Blythe tells A-One's purchasing agent that the software is "almost human." This satement is an example of:
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puffery
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Mark fails to reveal a material fact in a business deal with Nancy. This constitutes fraud;
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if the fact concerns a serious defect known to Mark and unlikely to be known by Nancy.
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Allen, who is beth's guardian, convinces her to buy a certain parcel of land from chris (who is Allen's best friend) at a greatly inflated price. Allen may be liable for
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undue influence
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Ace Properties. Inc., and Dandy Capital Corporation enter into a contract for a sale of land. To be enforceable, the contract must be in writing if the contract price is at least:
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any price
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Jill agrees to build a warehouse for Ken and orders supplies from Larry for the job. Ken promises Larry that Ken guarantees payment for the supplies. Ken's promise is:
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enforceable whether it is oral or in writing
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Retail Sales Company and standard Purchasing Corporation enter into a contract for a sale of goods. To be enforceable, the contract must be in writing if the contract price for the goods is at least:
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$500
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eagle Corporation and Finest Products, Inc., enter into a written contract for the sale of goods. To be enforceable, the written contract must include:
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the signature of the party against whom enforcement is sought.
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To obtain office supplies for All-care Medical clinic, brittney writes a check. A check is:
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an unconditional written order to pay money.
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finest business Company issues an instrument in favor of general Supplies, Inc. For the instrument to be negotiable, it needs NOT:
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recite the consideration given in exchange for a promise to pay.
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Ron signs an instrument using an "R" with a circle around it. With this mark for a signature, the instrument is:
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negotiable
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On behalf of digital supplies Company, Ed signs an instrument in which he promises to deliver 1,000 feet of cable to First Transactions, Inc., on March 1. This instrument is:
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nonnegotiable, because cable is not a medium of exchange authorized or adopted by a government as currency.
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Ann signs a promissory note payable to bob on which Ann conspicuously writes that it is "not negotiable" and gives the note to Bob. this instrument is:
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nonmegotiable, because it includes the notation "not negotiable."
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to obtain his business license, Alan writes a check to the appropriate state agency. Alan is:
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the drawer
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local investment Company and Midstate Properties, Inc., contract for the sale of a retail mall. A mutual mistake of fact will make it possible for either party to rescind the contract:
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if the mistake of fact is material
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Bart is convicted of arson for burning down his warehouse to collect the insurance. On an application for insurance on a new building, in answer to a question about prior convictions, Bart does not disclose his conviction. This makes the contract:
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viodable at the option of the insurance company because the statement is material to the decision to issue coverage.
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Nina and Owen enter into an oral contract for Nina's sale to Owen of a laser printer for $400. Before Owen takes possession of the printer, the contract is enforceable by:
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either party
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Geller signs a promissory note for $10,000 in favor of Betty-Jane. regarding the payment due date, the note merely states that "Payment is due on Betty-Jane's birthday". This note is:
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not a negotiable instrument
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On May 1, Doug signs a check that is payable to the order of Excel Credit card Corporation and that is dated July 1. This check is:
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negotiable
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gert contracts to sell two tracts of land to Hank. both parties believe that the two tracts are adjacent, but in fact they are not. gert is still willing to sell the land, but under these circumstances the deal would adversely affect Hank. THE PARTIES' BELIEF ABOUT THE ADJACENCY OF THE PROPERTY IS:
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a biliteral mistake
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Hillside Homes, Inc., and Ideal Builders, Inc. enter into a construction contract that includes six pages of detailed calculations. Later Hillside, whose project manager compiled the figures, discovers that some numbers were multiplied incorrectly. These mistakes were obvious to Ideal before the contract was entered into. despite Hillside's request, Ideal now refuses to make changes to the contract. A court would most likely:
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allow Hillside to rescind the contract
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Harold believes his old baseball bat has little value, but Murray is convinced it is a valuable collector's item. harold sells it to Murray for 4100 before learning it is worth $1,000. The contract:
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will not be canceled because the mistake relates to the value of the item.
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Ben sells a sport utility vehicle to cody without disclosing that the odometer, which reads 40,000 miles, was disconnected 80,000 miles ago. ben is liable for:
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fraud
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Lem buys a used MP3 player for $50 and a new laptop for $1,500, and signs a two-year employment contract for a $4,000 monthly salary to start at the beginning of the next month. The statute of frauds covers:
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the employment contract and the laptop purchase only.
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Pacific Applications, Inc., and Quality Resale company (QRC) enter into an oral contract for Pacific"s sale to QRC of six used fork lifts for $1,900 each. before QRC takes possession of the items and before any payments are made, this contract is enforcable by:
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neither party
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Dino, the chief of executive officer of election Services, Inc., signs an instument by placing his thumbprint on it. This instrument is:
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negotiable
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Geller writes and signs a promissory note in which he unconditionally promises to pay $100 to Betty-Jane Meader on June 1, 2013. In this transaction, geller is the:
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maker
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Rita owes $6,000 in unpaid taxes. rita uses her finger and writes in the sand of a beach "I promise to pay $6,000 to the internal Revenue service on July 1, 2013." rita signs this with her finger also. This writing is probably:
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nonnegotiable, because sand is not sufficiently permanent.
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Betty-Jane writes and signs a check payable to Geller. Geller indorses the check by writing "For deposit only" on the back. This indorsement is an example of:
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restrictive indorsement
