Business Law 1

Question 1

Minority ends the day after the birthday of the age of the majority

Answer 1

False

Question 2

Withdrawal from a contract has to take place within 60 days once ratification occurs

Answer 2

False.

Question 3

Unlicensed persons can make valid contracts even when business licensees are required as a means of raising public revenue.

Answer 3

True

Question 4

Waivers are intentional, not implied by contract

Answer 4

False

Question 5

Auction sales are “with reserve” unless specifically announced in advance to be “without reserve”

Answer 5

True

Question 6

A limited partner may be employed as an independent contractor for the limited partnership under the Revised Uniform Limited Partnership Act

Answer 6

True

Question 7

Battery and negligence are intentional torts

Answer 7

False

Question 8

Competition is the driving force behind the creation and improvement of products and services

Answer 8

True

Question 9

Up to the time of the depression, the US Supreme Court defined instrastate commerce as that which actually flowed over state lines

Answer 9

False

Question 10

The oldest federal agency is the Federal Trade Commission

Answer 10

False

Question 11

The law provides an order of priority for payout of the proceeds of a liquidation

Answer 11

false

Question 12

Bankruptcy laws protect only the debtors

Answer 12

false

Question 13

An unaccepted offer may be terminated by

Answer 13

the rejection of the offeree, a reasonable lenght of time, or a counteroffer

Question 14

when the terms of acceptance must exactly match the terms contained in the offe, it is called

Answer 14

a mirror image rule

Question 15

in economic dueress cases, the courts look at

Answer 15

both the threat and the alternatives available to the threatened party

Question 16

contracts entered into as a result of misrepresentation or fraud are viodable by

Answer 16

the injured party

Question 17

when buyers agree to purchase all of a particular priducer’s production, it is called

Answer 17

an output contract

Question 18

a liquidated debt is one where the parties agree

Answer 18

on the amount of the debt and that the debt exists

Question 19

the statute of limitations specifies

Answer 19

the time limit for bringing a lawsuit

Question 20

a big difference in economic value of what one gives and recieves may be evidence of

Answer 20

duress, a mutual mistake, or fraud

Question 21

acting toward a contract as though one intends to be bound by it is called

Answer 21

ratification

Question 22

when the consideration by both parties has been given back, the contract is said to be

Answer 22

disaffirmed

Question 23

when a person has the capacity to bind an opranization to a contract, they are said to have

Answer 23

scope of authority

Question 24

generally, a person lacking contractual capacity can disaffirm a contract for nonecessaries

Answer 24

within a reasonable time after attaing capacity and any time while still under the incapacity

Question 25

When contracts contain very fine print, light typesetting or elements, duress, undue influence, or misrepresentaion, they are said to have

Answer 25

procedural unconscioability

Question 26

Professionals such as physicians, teachers, lawyers, and pharmacists must have

Answer 26

a compency license

Question 27

Contracts that are unenforcable are illegal

Answer 27

false

Question 28

Contracts within the statute of frauds might include

Answer 28

promises to pay the debt of another person

Question 29

The statute of frauds is satisfied when the agreement is signed by

Answer 29

stamping, engraving, or writing

Question 30

in contracts referring to ammounts ofmoney in which both the numerical and the written expressions of the amount are unambiguous, the

Answer 30

written prevails

Question 31

When there is an anticipatory breach of contract, the victim may

Answer 31

treat the notice as evidence of a breach of contract and immediately sue for damages and wait until the promised time of performance

Question 32

the death or disability of the party who was to provide personal services

Answer 32

terminates the agreement

Question 33

Impossibiblity of performance refers to

Answer 33

external conditions

Question 34

according to the UCC, goods do not include

Answer 34

patents and copyrights

Question 35

Acceptance of goods occurs when

Answer 35

the buyer agrees by words that the goods are satisfactoy, the buyer fails to reject the goods, the goods are used to resold

Question 36

when payment for goods takes place at a later date. the transfer of the title takes place when

Answer 36

the buyer selects and agrees to buy the goods in the seller's store

Question 37

casual sellers

Answer 37

only sell occasionally

Question 38

if a party admits in legal testimony that they agreed to part or all of an oral contract governed by the statute of frauds, the contract would be

Answer 38

binding to the extent admitted

Question 39

Transfer ofownership of goods may bedone by the owners and authorized persons, or

Answer 39

holders of negotiable documents of title, merchants withpossession of sold goods, or by buyers in a sale induced by fraud

Question 40

goods, specifically designated as the subject matter of a particular sales contract. can be indentified by

Answer 40

the buyer, the seller, or a mutually agreed upon 3rd party

Question 41

If the seller ships goods by carrier, teh transfer of the risk of loss from seller to buyer occurs

Answer 41

immediately when the title transfers

Question 42

if the parties do not specify when the title is to pass, the courts will

Answer 42

determine fi there is any applicable custom or usage in the particular trade that can settle the question and look to the UCC for a solution

Question 43

If a buyer of bulk transfer failsto notify the seller's creditors of the fothcoming transfer,the creditors may

Answer 43

make claims against the inventory and equpment after the buyer takes possession

Question 44

in a limited partnership

Answer 44

limited partners contribute capital and share profits aand losses with general partners and one partner must be a gener partner with unlimited liability

Question 45

a minor entering into a partnership agreement

Answer 45

retains all the rights and pricileges of a minor

Question 46

unanimous agreement under the Uniform Partnership Act is required for decisions to

Answer 46

assign partnership property to creditors

Question 47

Under the ULPA, a limited partnership can be created only

Answer 47

by proper recording, by proper execution, and by publication of a certificate that identifies the partners and states basic facts about their agreement

Question 48

Under teh RULPA, a limited partner does not participate in teh managerial control of the business when

Answer 48

participating in teh restrucuring of the parnership, acting as an agent or employee for the partnership, or consulting with the genreal partners

Question 49

the number of shareholders in an S coperation must be

Answer 49

75 or less

Question 50

Elements of bailment do not include

Answer 50

real property

Question 51

bailment ends when

Answer 51

the agreed purpose has been achieved, the parties mutually agree to end it, teh agreed time has elapsed

Question 52

a mutual-benifit bailment, in which consideration is given and recieved by both bailor and bailee, invokes the duty of

Answer 52

ordinary care

Question 53

involuntary bailments, which arise without the consent of the bailee, call for

Answer 53

minimal care

Question 54

a bailment for the sole benefit of bailor calls for

Answer 54

minimal care

Question 55

charging demurrage occurs in

Answer 55

bailment for transport

Question 56

A voluntary, court-enforceable agreement to stop an illegal or questionable practice is

Answer 56

a consent order

Question 57

the Consumer Product Safety Commission receives reports about product failure from

Answer 57

the distributor, the retailer, or the manufacturer

Question 58

the ability to negotiate an instrument is not affected by the fact that it is

Answer 58

antedated or postdated

Question 59

if there are conflicting terms within the writing

Answer 59

handwritten terms prevail over typewritten terms

Question 60

to make the paper payable to the order of a designated party one must use

Answer 60

a special endorsement

Question 61

a qualified endorsement

Answer 61

eliminates the endorser's secondary liability

Question 62

which of the following is not an element of most torts

Answer 62

conspiracy

Question 63

an unlawful or harmful touching is called

Answer 63

battery

Question 64

what is a tort

Answer 64

A wrongful act or an infringement of a right leading to legal liability

Question 65

in a jury trial, who decides to issues of a fact

Answer 65

the jury

Question 66

which of the following would probably not be considered strict liability

Answer 66

1.) planting flowers 2.)storing propane 3.) raising tigers 4.) selling defective items (1)

Question 67

The agency that determines crucial economic policies involving the money supply, credit attainability, and interest rates is the

Answer 67

Federal Reserves System's Board of Goveners

Question 68

States may regulate business, but they may not

Answer 68

impose unreasonable burdens, enact laws that conflict with federal laws, deprive constitutional rights.

Question 69

the female maker of a will is called a

Answer 69

a testarix

Question 70

a court-appointed male personal representative overseeing an estate is called

Answer 70

an administrator

Question 71

the clear intention to make a will without undue influence of others is called

Answer 71

testamentary intent

Question 72

the relationship of agency exists when one person has the authority to

Answer 72

alter legal relations

Question 73

any agreement reached by the representative in an agency relationship binds

Answer 73

the principal and the third party

Question 74

examples of fiduciary duties would not include

Answer 74

finances

Question 75

the fiduciary duty that binds the agent even years after the agency relationship has ended is

Answer 75

confidentiality

Question 76

if comminglying occurs and there is a loss, the loss is borne by the

Answer 76

agent

Question 77

the power, but not the right, to elimate the agency at any time goes to

Answer 77

the agent and the principal

Question 78

the bankruptcy law that involves liquidation of nonexempt property is

Answer 78

chapter 7

Question 79

certain types of claims that cannot be sidcharged by bankruptcy might include

Answer 79

student loans owed to the government, alimony and child support, or judgements resulting from driving while intoxicated.

Question 80

the first to be paid from the proceeds of liquidaton would be

Answer 80

secured creditors

Question 81

when an insurance company makes payment for a loss to a surrering party, the insurance company is said to

Answer 81

indemnify the loss

Question 82

the stated maximum amount of money that can be paid on an insurance policy is the

Answer 82

face value

Question 83

the type of insurance that ocvers structrual loss due to rain, hail, earthquake, and windstorm is

Answer 83

fire

Question 84

the type of insurance that covers automobile, burglary, disability, and liability would be

Answer 84

casualty

Question 85

insurance providing protection agains claims of parties who suffer injury or toher loss as a result of negligence committed by the insured would be

Answer 85

inland marine

Question 86

automobile insurance coverage indemnifying insureds for damage to their own vehicles is

Answer 86

comprehensive and collision

Question 87

the division of labor between the federal and state governments produced such uneven and ineffective regulation that the US supreme court redefined

Answer 87

interstate commerce

Question 88

consumer protection of consumer goods and services often begins with

Answer 88

licensing suppliers

Question 89

an assurance of quality or promise of performance clearly made by the seller is

Answer 89

an express warranty

Question 90

The bankruptcy law that is available only to individuals who have regular income is

Answer 90

chapter 13

Question 91

warranties imiplied by the law for merchants include

Answer 91

warranty against infirgement and warranty of merchantability

Question 92

the one who makes a warranty is known as a

Answer 92

warrantor

Question 93

if a person is injured as a result of an unreasonably dangerous or defective product, how will he or she most likely recover damages for the injury

Answer 93

hold the manufators, wholesaler, or retailer stictly liable

Question 94

Hilda enjoys taking her children to the local ice cream parlor. The assurance that the ice cream she ppurchases is wholesome and fit for human consuption is an example of a

Answer 94

warranty of merchantability

Question 95

a corprotation doing business is one state but chrtered in another state is called

Answer 95

an alien corortation

Question 96

the right to increase th capital stock of the corporation

Answer 96

belongs to the shareholders alone