Wiley Business Law Quiz

Question 1

The primary purpose of recording of a deed is to…2

Answer 1

1 Protect granted against subsequent purchases

2 by putting subsequent purchasers on notice

Question 2

If the subsequent party claiming superior title had actual notice of the unrecorded deed, then…

Answer 2

The recordation objective would have been met

Question 3

If the subsequent party claiming superior title had actual notice of the unrecorded deed, then the recordation objective would have been met and recordation of the deed would…

Answer 3

Be irrelevant with regard to this particular party

Question 4

An unrecorded deed is binding upon all persons…

Answer 4

Having actual notice of its existence

Question 5

The relationship between a principal and agent is based upon…

Answer 5

Consent of both parties involved

Question 6

If a limited partner, becomes involved with management, what is their potential liability?

Answer 6

Unlimited personal liability

Question 7

Generally, shareholders are not personally liability for debts of a corporation, this is normally true even concerning a principal stockholder who is…

Answer 7

Director and chief executive officer of the corporation

Question 8

Implied warranty of fitness for a particular purpose:

Warranty is created when seller has reason to know…

Answer 8

1 buyer’s particular purpose

2 buyer is relying on seller’s judgment

Question 9

Implied warranty of fitness for a particular purpose guarantees the goods are…

Answer 9

Fit for buyer’s particular purpose

Question 10

Warranty of merchantability guarantees that…2

Answer 10

1 goods are of an average fair quality and

2 are fit for ordinary purposes

Question 11

Parties are not considered to have privity of contract with the accountant when the undertaking of the audit was…

Answer 11

Not for their express purpose

Question 12

To create an enforceable security interest, a financing statement…

Answer 12

Need not be filed

Question 13

Filing a financing statement, what is it necessary for?

2) what is it not necessary for?

Answer 13

1 perfects the interest

2) not necessary to create the interest

Question 14

Perfection by filing a financing statement will not defeat…

Answer 14

All other parties who acquire an interest in the same collateral

Question 15

Purchasers from a merchant in the ordinary course of business, take the collateral free from…

Answer 15

Any prior perfected security interest

Question 16

The only time a purchaser from a merchant would take the collateral subject to a prior perfected security interest would be when the purchaser…

Answer 16

Knew the merchant was selling goods in violation of financing
Statement

Question 17

Record action of a deed gives constructive notice “to the world” that…

Answer 17

Title to the property has been conveyed