Contracts and Sales Law
Chapter Exam Questions
Course Introduction
This course provides an in-depth exploration of the fundamental principles and doctrines that govern contracts and the sale of goods under common law and the Uniform Commercial Code (UCC). Students will study the formation, interpretation, performance, and enforcement of contracts, as well as defenses to contract formation and breach. The course also addresses remedies for breach, third-party rights, and issues unique to sales transactions, such as warranties, risk of loss, and title transfer. Through case analysis and practical problems, students will develop a thorough understanding of both theoretical and practical aspects of contracts and sales law.
Recommended Textbook Business Law and the Legal Environment Standard Volume 23rd Edition by David P. Twomey
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Chapter 1: The Nature and Sources of Law
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Q1) All cities, counties, and other governmental subdivisions have basic powers to adopt ordinances, such as traffic and zoning laws, within their sphere of operation.
A)True
B)False
Answer: True
Q2) Criminal laws:
A)define wrongs against society.
B)define the rights of one person against another.
C)carry damage remedies against the wronged individual.
D)are punished by individuals who have been wronged.
Answer: A
Q3) Jane asserts she has a legal right.Jane is really saying she has an obligation to perform or refrain from performing an act.
A)True
B)False
Answer: False
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Page 3
Chapter 2: The Court System and Dispute Resolution
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Q1) The federal court system consists of three levels.
A)True
B)False
Answer: True
Q2) A probate court is an example of a general trial court.
A)True
B)False Answer: False
Q3) The defendant in a civil case is the party who is suing.
A)True
B)False
Answer: False
Q4) A deposition is or can accomplish any of the following except:
A)the testimony of a witness taken under oath.
B)conducted outside of the courtroom.
C)can be used to impeach a witness.
D)can be used to dismiss the lawsuit.
Answer: D
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Page 4
Chapter 3: Business Ethics, Social Forces, and the Law
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Q1) To Immanuel Kant, an action is ethical if it is fair and done for the right reasons.
A)True
B)False
Answer: True
Q2) Which of the following is not a question business ethicist Laura Nash has developed to help businesspeople reach the right decision in ethical dilemmas?
A)Have you defined the problem accurately?
B)How would you define the problem if you stood on the other side of the fence?
C)How did the situation occur in the first place?
D)Does your proposed solution to the problem effectively balance the competing objectives of ethical decision-making and corporate profitability?
Answer: D
Q3) Ethical egoists such as Ayn Rand hold that:
A)people always act in their own self-interest.
B)people do the most good for the most people.
C)ethical dilemmas are resolved according to time and place.
D)solving ethical dilemmas requires ethical training
Answer: A
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Chapter 4: The Constitution As the Foundation of the Legal Environment
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Q1) Federal law __________ conflicting state regulation when a federal law regulates that particular subject.
A)coincides with B)is subordinate to C)parallels
D)preempts
Q2) A declaration of war:
A)can be enacted by both state and federal governments.
B)can be enacted only by the national government.
C)can be enacted only by state governments.
D)is prohibited by the U.S. Constitution.
Q3) The privileges and immunities clause means that if a business owner moves from California to Texas, she can engage in the same business.
A)True
B)False
Q4) The Due Process clause now guarantees protection against loss of property rights without a chance to be heard.
A)True
B)False
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Chapter
5: Government Regulation of Competition and Prices
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Q1) The Robinson-Patman Act guarantees a seller the right to refuse to deal with anyone for any reason or purpose.
A)True
B)False
Q2) Under the Clayton Act, when large-scale enterprises plan to merge, they must in advance:
A)notify the New York Stock Exchange.
B)notify the President of the United States.
C)complete the necessary financing arrangements.
D)notify the Antitrust Division of the Department of Justice.
Q3) A violator of the Sherman Act may be subject to:
A)fine only.
B)imprisonment only.
C)both fine and imprisonment.
D)neither fine nor imprisonment.
Q4) The Sherman Act focuses on:
A)unfair methods of competition.
B)combinations or contracts in restraint of trade.
C)permitted price discriminations.
D)intrastate commerce.
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Chapter 6: Administrative Agencies
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Q1) Concerning administrative investigations:
A)agencies are severely limited by the constitutional protection against unreasonable searches and seizures.
B)a search warrant is always required to search premises.
C)papers and records generally may be subpoenaed by an agency.
D)a person does not have constitutional protection against unreasonable searches and seizures.
Q2) The "public comment" period for proposed administrative agency rules must be at least __________ days.
A)30
B)60
C)90
D)120
Q3) Within the area in which the administrative agency is authorized to make decisions, the agency can be regarded as a specialized court or court of limited jurisdiction.
A)True
B)False
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Chapter 7: Crimes
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Q1) Crimes are classified as common law or statutory according to their origin.
A)True
B)False
Q2) The Racketeer Influenced and Corrupt Organizations (RICO) Act was designed primarily to prevent individuals involved in organized crime from investing money obtained through racketeering in legitimate businesses.
A)True
B)False
Q3) In some states, the taking of information from a computer without the consent of the owner is called _______.
A)unauthorized use of computers
B)diverted delivery by computer.
C)computer trespass.
D)economic espionage by computer.
Q4) Conspiracy means ____ committing a criminal act.
A)thinking about
B)an agreement aimed at
C)thinking with others about
D)all of these
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Chapter 8: Torts
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Sample Questions
Q1) What type of damages are recoverable when the defendant's tortious conduct is accompanied by fraud, malice, or willful or wanton conduct?
A)compensatory
B)consequential
C)nominal
D)punitive
Q2) Once the cause in fact is established, the plaintiff must establish ________, that is the harm by the injured person that was a foreseeable consequence of the defendant's negligent actions.
A)actual causation.
B)proximate causation.
C)but for causation.
D)the Palsgraf standard.
Q3) In numerous states, former employers are protected by a qualified privilege for factual comments made about former employees who are applying for jobs at other companies.
A)True
B)False
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10
Chapter 9: Intellectual Property Rights and the Internet
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Q1) A copyright owner may prohibit even limited use of copyrighted material if it is used for parody or criticism.
A)True
B)False
Q2) All types of patents available under U.S.law are entitled to the same quality and duration of protection once initial filing is perfected with the Patent and Trademark Office in Washington, D.C.
A)True
B)False
Q3) A copyright bestows upon the creator of an artistic or literary work a federal statutory right to exclusively:
A)use the work.
B)reproduce the work.
C)display the work.
D)All of these
Q4) Descriptive terms such as locations and colors are never subject to trademark protections.
A)True
B)False
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Chapter 10: The Legal Environment of International Trade
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Q1) A letter of credit agrees to provide the seller with needed currency exchanges when transactions with foreign buyers occur.
A)True
B)False
Q2) Since 1947 and the end of the World War II era, the goal of the General Agreement on Tariffs and Trade (GATT) has been to restrict world trade.
A)True
B)False
Q3) A societé anonyme is the European counterpart of a U.S.corporation.
A)True
B)False
Q4) Under which of the following doctrines is it held that a foreign sovereign cannot be sued unless it engages in illegal commercial conduct?
A)act-of-state
B)sovereign compliance
C)Timberlane
D)sovereign immunity
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Chapter 11: Nature and Classes of Contracts: Contracting on
the Internet
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Q1) When a contract sets a price for services rendered, a plaintiff cannot sue for reasonable value.
A)True
B)False
Q2) An executory contract is:
A)void if neither party has performed.
B)One that has been completely performed.
C)entered into but not fully performed.
D)always unilateral in nature.
Q3) In a quasi-contract situation, the reasonable value of services or goods to avoid unjust enrichment are called:
A)preclusion.
B)benefits.
C)quantum meruit.
D)restitution damages.
Q4) A contract can only involve two parties: the promisor and the obligor.
A)True
B)False
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Chapter 12: Formation of Contracts: Offer and Acceptance
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Q1) At an auction sale, a statement made by the auctioneer to draw forth bids constitutes an offer.
A)True
B)False
Q2) A properly mailed acceptance takes effect when mailed, even if it never is received by the offeror.
A)True
B)False
Q3) If no time is stated for the duration of an offer, it continues indefinitely if the offer relates to durable goods or land.
A)True
B)False
Q4) Frank is drunk and while laughing hysterically says to Hal "I'll sell you my truck for a buck". Frank has made a valid offer.
A)True
B)False
Q5) An option is itself a contract to refrain from revoking an offer.
A)True
B)False
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Chapter 13: Capacity and Genuine Assent
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Q1) A minor cannot avoid a contract that has been:
A)ratified.
B)signed.
C)processed.
D)disallowed by the court.
Q2) An incompetent person may ordinarily avoid a contract in the same manner as a minor.
A)True
B)False
Q3) Contractual capacity can exist even though a party does not understand every provision of the contract.
A)True
B)False
Q4) Contractual capacity is the ability to:
A)read and write.
B)sign a written contract.
C)understand that a contract is being made and to understand its general nature.
D)understand the legal meaning of the contract being made.
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Chapter 14: Consideration
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Q1) Ordinarily, a promise to perform an existing legal obligation is:
A)not consideration.
B)binding if the promisor promises to perform with extra care.
C)binding if the promisor promises to perform to suit the personal satisfaction of the promisee.
D)binding if the promisee would experience substantial loss due to breach of the promise.
Q2) An illusory promise creates a bilateral contract.
A)True
B)False
Q3) Which of the following is not consideration for a present promise?
A)a good faith adjustment
B)compromise and release of claims
C)the promise to pay one's child support obligation, consistent with a pre-existing court order.
D)the performance of a requested act
Q4) Consideration is what a promisor demands and receives as the price for a promise.
A)True
B)False
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Chapter 15: Legality and Public Policy
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Sample Questions
Q1) The failure to have a license will not render agreements void if the license:
A)is based on formal education
B)is required for engaging in a particular business or trade
C)is a regulatory license
D)is readily obtainable by anyone who offers payment of a required fee
Q2) If a contract can be interpreted in two ways, one legal and the other illegal, the court will assume that the legal meaning was intended unless the contrary is clearly indicated. A)True
B)False
Q3) In the absence of a valid restrictive covenant, the seller of a business may compete with an ex-employee and solicit customers of the former employer.
A)True
B)False
Q4) A take-it-or-leave-it contract of adhesion is an example of substantive unconscionability.
A)True
B)False
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17
Chapter 16: Writing, Electronic Forms, and Interpretation of Contracts
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Sample Questions
Q1) Parol evidence generally is admissible to explain:
A)ambiguous terms.
B)why signatures are missing.
C)why a contract was not performed.
D)implied terms.
Q2) Under the statute of frauds, an oral contract must be completed within one year after performance begins.
A)True
B)False
Q3) The provisions of a contract must be construed as a whole in such a way that every part is given effect.
A)True
B)False
Q4) An oral contract can be enforced when it relates to:
A)the purchase of a television set for $200.
B)the sale of an interest in land for $400.
C)managing a factory for five years.
D)a promise to answer for the debt of another.
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Chapter 17: Third Persons and Contracts
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Q1) A professor owned a home next door to a very dilapidated, neglected home.John Cataldo purchased the home next door and made a contract with Wizard Home Improvements for a complete renovation of the property.The professor was delighted because the improvement of the Cataldo home was upgrading the neighborhood and raising the value of the professor's home.?After making the last required payment on the contract, John Cataldo became seriously ill and ultimately was taken to a nursing home for care.?When Wizard learned of Cataldo's illness and confinement, Wizard ceased work on the Cataldo home.Because the outside renovation work had not been completed, the premises began to return to its former rundown condition.The professor ultimately sued Wizard as a third-party beneficiary of the contract between Cataldo and Wizard.What is the probable outcome of the lawsuit?
Q2) An assignee of a contract can bring suit on the contract only in the name of the assignor.
A)True
B)False
Q3) An assignee's rights are the same as those that had been possessed by the assignor.
A)True
B)False
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Page 19
Chapter 18: Discharge of Contracts
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Q1) If a debtor with multiple debts specifies the debt to which a payment is to be applied and the creditor accepts the money, the creditor is bound to apply the money as specified.
A)True
B)False
Q2) In most bilateral contracts, the performances of the parties are __________.
A)conditions precedent
B)conditions subsequent
C)recurrent conditions
D)concurrent conditions
Q3) There is no exact standard or test by which to determine whether contractual performance is substantial.
A)True
B)False
Q4) A condition subsequent can alter but not terminate a contract.
A)True
B)False
Q5) By operation of law, a party can be discharged in bankruptcy from debts.
A)True
B)False
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Chapter 19: Breach of Contract and Remedies
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Q1) When the contract requires that both parties submit disputes to arbitration, this is an example of a limitation-of-remedies clause.
A)True
B)False
Q2) A provision in a contract which states no damages can be recovered in the event of breach of contract is called:
A)a contributory clause
B)an exculpatory clause
C)a waiver clause.
D)a force majeur clause
Q3) __________ occurs when a party expressly declares that performance will not be made when required.
A)Anticipatory repudiation.
B)An injunction.
C)Restitution.
D)A waiver of breach.
Q4) Punitive damages are generally recoverable in contract actions.
A)True
B)False
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Chapter 20: Personal Property and Bailments
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Q1) An ordinary gift made between two living persons is called an inter vivos gift.
A)True
B)False
Q2) A bailee's __________ gives the bailee the right to maintain possession of the bailed property until reasonable storage and/or repair charges are paid.
A)reversionary interest
B)lien
C)remainder interest
D)mortgage
Q3) A right in a thing is considered property.
A)True
B)False
Q4) Vacarro gave her son Mark a car on the day Mark left for college.Vacarro told Mark that she expected him to use the car for school purposes and to earn good grades.Mark flunked out of college in his second semester.Vacarro sued to regain title to the car on the ground that the gift was conditional on Mark's earning good grades and remaining in college.Will Vacarro win the case?
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22
Chapter 21: Legal Aspects of Supply Chain Management
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Q1) A transferee's rights to a warehouse receipt may be defeated by a good-faith purchaser of the goods from the transferor of the receipt.
A)True
B)False
Q2) A carrier owned and operated by the shipper is:
A)a common carrier.
B)a common carrier.
C)a private carrier.
D)a consignor.
Q3) The Willett Seed Company stored its goods with the Augusta Warehouse Company and received a negotiable warehouse receipt.The Willett Seed Company then borrowed money from the Georgia Railroad Bank and pledged the warehouse receipt as security.The seed company defaulted, and the bank demanded the goods from the warehouse.The warehouse stated that it already had delivered the goods to the seed company on the strength of that company's promise that it would surrender the receipt shortly thereafter.The bank sued the warehouse for the value of the goods.Will the bank win?
Q4) The rights and duties of warehousers are regulated by the UCC.
A)True
B)False
Page 23
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Chapter 22: Nature and Form of Sales
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Q1) The term "course of dealing" refers to the language and customs of an industry.
A)True
B)False
Q2) ______ is a transfer of possession - but not title - to personal property.
A)A bailment.
B)An option to purchase.
C)A gift
D)A consignment
Q3) A contract for the sale of goods is enforceable even if the price is "open."
A)True
B)False
Q4) A contract involving both services and goods is classified as a contract for the sale of goods if:
A)the services are to be performed upon the goods.
B)the services cannot be performed unless the goods are supplied.
C)no charge is made for the services.
D)the sale of goods is the dominant aspect of the transaction.
Q5) The parol evidence rule does not apply to the sale of goods.
A)True
B)False
24
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Chapter 23: Title and Risk of Loss
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Q1) In a self-service store a sale cannot occur until the goods are paid for.
A)True
B)False
Q2) "Without reserve" auctions give the auctioneer the right to withdraw the goods from the sale process if the bids are not high enough.
A)True
B)False
Q3) Under a CF contract, the cost of shipment is included in the contract price.
A)True
B)False
Q4) Bob Corporation entered into a contract to sell parts to Zeck.The contract provided that the goods would be shipped "FOB Bob's warehouse." Bob shipped parts to Zeck that were stolen from the carrier.When Zeck checked the invoice, Zeck discovered that Bob had sent Model #20B instead of Model #20A, which the contract required.Whose loss? Why?
Q5) In a sale or return transaction, until the actual return of the goods is made, title and risk of loss remain with the buyer.
A)True
B)False
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Chapter 24: Product Liability: Warranties and Torts
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Q1) The theories of product liability are mutually exclusive.
A)True
B)False
Q2) All of the following apply to strict tort liability except:
A)strict tort liability is independent of the UCC.
B)strict tort liability has abolished privity of contract.
C)strict tort liability requires the defect exists at the time of manufacture.
D)strict tort liability requires assumption of the risk.
Q3) Plaintiffs suing for damages caused by a defective product are limited to claims against the manufacturer(s) of such goods.
A)True
B)False
Q4) Under the concept of ______, only the original parties to a sales contract could sue each other.
A)exclusivity of contract.
B)privity of contract.
C)privacy of contract.
D)priority of contract.
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26
Chapter 25: Obligations and Performance
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Q1) When goods are shipped COD:
A)the buyer always has the right to examine them before making payment.
B)the underlying contract must specify when the buyer may inspect the goods.
C)the buyer has no right to examine the goods until payment is made.
D)the buyer gives up all rights to inspection of the goods.
Q2) A buyer has a right to insist that all the goods be delivered at one time.
A)True
B)False
Q3) The standard for commercial impracticability is:
A)hypothetical.
B)conjectural.
C)objective.
D)subjective.
Q4) When a buyer demonstrates in some way that the goods conform to the contract, the buyer has made a(n):
A)acceptance of the goods.
B)assignment of the goods.
C)substitution of the goods.
D)avoidance of the contract.
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Chapter 26: Remedies for Breach of Sales Contracts
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Q1) To recover damages, a buyer must give the seller notice of the breach within three (3) days.
A)True
B)False
Q2) If a seller elects to resell the goods remaining in the seller's possession after the buyer breaks the contract, the seller:
A)must always give notice of the sale to the original buyer.
B)is never required to give notice of the sale to the original buyer.
C)is required to follow strict standards in the resale of the goods.
D)is not required to give notice of the sale to the original buyer when the goods are perishable.
Q3) Under both the CISG and the UCC, a buyer may reject goods only if the tender of the goods is a fundamental breach of the contract.
A)True
B)False
Q4) If a buyer chooses to cover, the substituted goods purchased must be substantially identical to the contract goods.
A)True
B)False
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Chapter 27: Kinds of Negotiable Instruments and Negotiability
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Q1) The maker is the person who writes out and creates a promissory note. A)True
B)False
Q2) Order instruments are negotiated by:
A)delivery with the necessary indorsement.
B)word of mouth.
C)constructive recovery.
D)an unconditional promise.
Q3) Commercial paper are transferable, written, signed promises to pay a specified sum of money.
A)True
B)False
Q4) The party who writes or creates a promissory note is called the: A)payee.
B)drawee.
C)drawer. D)maker.
Q5) The drawer is the person on whom the order to pay a draft is made. A)True
B)False
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Chapter 28: Transfers of Negotiable Instruments and
Warranties of Parties
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Q1) Negotiation of order paper requires:
A)delivery only.
B)indorsement only.
C)both indorsement and delivery.
D)neither indorsement nor delivery.
Q2) The transferee has only those rights that were possessed by the transferor of the note when a transfer of an instrument is made by:
A)an assignment.
B)a negotiation.
C)a sale.
D)a will.
Q3) The situation in which an individual impersonates the holder of a savings account and, by presenting a forged withdrawal slip to the savings bank, receives from the bank a check payable to the bank's customer, is covered by the:
A)impostor rule.
B)negotiation rule.
C)assignment rule.
D)bank rule.
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Chapter 29: Liability of the Parties Under Negotiable Instruments
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Q1) Bad faith may exist because a transferee takes an instrument under suspicious circumstances.
A)True
B)False
Q2) A holder through a holder in due course is subject to only certain, limited defenses.
A)True
B)False
Q3) A holder can recover from any of the parties who are liable on the instrument, regardless of the order of the signatures on the instrument.
A)True
B)False
Q4) A(n) __________ is an unauthorized change or completion of a negotiable instrument designed to modify the obligation of a party to the instrument.
A)alteration
B)modification
C)transformation
D)transmutation
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Chapter 30: Checks and Funds Transfers
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Q1) A drawer may be held criminally liable if a check or draft is dishonored.
A)True
B)False
Q2) A consumer who notifies the issuer of an EFT card within two (2) days after learning of a loss or theft of the card can be held to a maximum liability of $500 for unauthorized use of the card; failure to notify within this time will increase the consumer's liability for losses to a maximum of $5,000.
A)True
B)False
Q3) When a drawee bank pays on a check that lacks an essential endorsement:
A)the drawer is liable.
B)the payee is liable.
C)the drawee bank is liable.
D)no one is liable.
Q4) The EFTA is concerned with the:
A)elimination of foreign terrorists
B)eradication of foreign tribunals
C)electronic transfers of funds
D)eleemosynary, or charitable, transfers of funds
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Chapter 31: Nature of the Debtor-Creditor Relationship
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Q1) Deirdre read that bids were being solicited for the construction of an apartment tower.Deirdre submitted the lowest bid and was offered the contract contingent on her providing acceptable sureties in the amount of $1 million.Because Deirdre never had done work on this scale, it was virtually impossible for her to obtain the appropriate sureties.She convinced Reassuring Sureties, Inc.to issue the necessary commitment by misrepresenting that she was a famous builder in Canada.As the work progressed, it seemed to be going well and Deirdre was asked to make the project 52 stories instead of 50 stories, which was the original contract height.She agreed to this change.?After the work was completed, many breaches of contract on the part of Deirdre became evident.Reassuring Sureties was sued for a $500,000 loss.Reassuring Sureties defended on the grounds of fraud and material change in the contract.Decide.
Q2) A letter of credit cannot extend for a period of more than five (5) years.
A)True
B)False
Q3) Letters of credit are a two-party agreement used for financing.
A)True
B)False
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Chapter 32: Consumer Protection
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Q1) Automobile lemon laws protect only persons buying automobiles for personal, family, or household use.
A)True
B)False
Q2) A consumer may waive all defenses otherwise provided for by law.
A)True
B)False
Q3) A sale of goods or services for $25 or more made to a buyer at home may be set aside without cause within five (5) business days.
A)True
B)False
Q4) A finance company may not reject an loan applicant on any of the grounds listed below, except:
A)the applicant is married.
B)the applicant is sixty-five or older.
C)the applicant is divorced.
D)the applicant is on a fixed income.
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Chapter 33: Secured Transactions in Personal Property
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Q1) Under Revised UCC Article 9, a financing statement must be signed by the debtor.
A)True
B)False
Q2) Upon a default by a buyer, the secured seller may resell the collateral:
A)not less than three (3) months after the buyer's default.
B)not less than six (6) months after the buyer's default.
C)only at a public sale.
D)at either a public or a private sale.
Q3) A security interest is like a lien on personal property that allows the creditor to take possession of the property if the debtor defaults.
A)True
B)False
Q4) Grund, a professional night club musician, financed the purchase of a drum set to be used in his night club act.Under Article 9, the drum set will be classified as a consumer good.
A)True
B)False
Q5) Secured transactions are governed by Article 2 of the Uniform Commercial Code.
A)True
B)False
Page 35
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Chapter 34: Bankruptcy
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Q1) A voluntary petition in bankruptcy may not be filed by any of the following except a(n): ______.
A)husband and wife.
B)railroad company.
C)insurance company.
D)municipality
Q2) The filing of a bankruptcy petition operates as a(n) ______, which prevents creditors from taking action, such as filing suits or foreclosure actions, against the debtor.13
A)Reorganization
B)Order of Relief
C)Liquidation
D)Automatic Stay
Q3) After all the creditors have been paid by the trustee, any balance is turned over to the debtor.
A)True
B)False
Q4) Stockbrokers are eligible to file Chapter 11 bankruptcy.
A)True
B)False
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Chapter 35: Insurance
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Q1) A person has an insurable interest in property if destruction of that property would cause a monetary or pecuniary loss to that person.
A)True
B)False
Q2) If a man names his wife as beneficiary of his life insurance and the two are thereafter divorced, the insurance policy: ______.
A)is canceled automatically.
B)is not affected.
C)is divided into two policies on the life of each for one-half the amount of the original policy.
D)becomes the property of the former wife.
Q3) An ambiguity in an insurance policy is generally interpreted in favor of the insurer.
A)True B)False
Q4) By statute, an insurance policy may be either oral or written, depending on the nature of the policy.
A)True
B)False
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Chapter 36: Agency
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Q1) A written authorization of agency is called a power of attorney.
A)True
B)False
Q2) Barnes agrees with Morgan to enter into the management of a new subdivision of residential housing.Morgan appoints Barnes as his manager for the duration of the development program.During the course of the construction, Barnes decides to use funds specified for the subdivision for an office space project that Barnes alone has been interested in completing.Morgan is very angry on learning of Barnes' actions and terminates the agency.Barnes insists that the agency cannot be terminated in this manner.Is Barnes correct?
Q3) An agent has implied __________ authority to do any act that usually accompanies the transaction for which the agent is authorized to act.
A)express
B)apparent
C)customary
D)incidental
Q4) The scope of an agent's authority is always known by the third party.
A)True
B)False
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Chapter 37: Third Persons in Agency
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Q1) In general, a principal is liable for crimes of the agent committed while acting within the scope of the agency, even if the principal did not authorize commission of the crimes.
A)True
B)False
Q2) If an agent is sued for breach of implied warranty of authority by a third party, none of the following are defenses except: ______.
A)the agent acted in good faith.
B)the agent misunderstood the scope of authority.
C)the third party knew the agent was acting beyond her authority.
D)the agent had written authorization.
Q3) Parol evidence is allowed to show whether an agent has signed in a representative or an individual capacity.
A)True
B)False
Q4) The liability of an agent to a third person depends on the existence of authority and the manner of executing the contract.
A)True
B)False
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Chapter 38: Regulation of Employment
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Q1) Algonquin Industries was a small business that hired mostly recent immigrants to the United States and paid them a minimum wage.The business prospered and people began to come around to organize the workers into a union.Officials of Algonquin spoke against the advisability of joining the union.Finally, a date for a certification vote was set.In the days leading up to the vote, Algonquin officials began to intimate that those workers who voted against the union would receive overtime opportunities "as they became available." A charge has been brought that this is an unfair labor practice.Decide.
Q2) Collective bargaining contracts govern the rights of employers and employees only in public sectors of employment.
A)True
B)False
Q3) A person cannot be both an employee and an agent for a party at the same time.
A)True
B)False
Q4) In a collective bargaining contract, the parties are generally not free to make an employment contract on any terms that they wish.
A)True
B)False
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Chapter 39: Equal Employment Opportunity Law
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Q1) Generally, the EEOC attempts to remedy an unlawful practice through mandatory arbitration.
A)True
B)False
Q2) An employer can prove its affirmative defense to hostile work environment by demonstrating a sexual harassment policy and notification procedures
A)True
B)False
Q3) Title VII protects members of which racial grouping(s)?
A)black only
B)black, Native American, and Asian-Pacific
C)white only
D)all racial groupings
Q4) Failing to hire an individual who does not have English language skills violates Title VII unless those language skills have a clear connection to the successful performance of the job to which it is applied.
A)True
B)False
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