Contracts and Sales Law Exam Preparation Guide
Course Introduction
This course offers an in-depth exploration of Contracts and Sales Law, focusing on the foundational principles governing the formation, interpretation, performance, and enforcement of contracts, as well as the unique rules applicable to the sale of goods. Students will analyze key concepts such as offer and acceptance, consideration, capacity, defenses to contract enforcement, breach of contract, remedies, and third-party rights. The course also delves into the Uniform Commercial Code (UCC) Article 2, which standardizes sales law across jurisdictions, covering topics like warranties, risk of loss, and remedies for buyers and sellers. Practical case studies and real-world scenarios are used to illustrate legal doctrines and prepare students for legal practice or advanced study in commercial law.
Recommended Textbook
Business Law Today Standard Text and Summarized Cases 11th Edition by Roger LeRoy Miller
Available Study Resources on Quizplus
36 Chapters
2592 Verified Questions
2592 Flashcards
Source URL: https://quizplus.com/study-set/1739 Page 2
Chapter 1: The Legal Environment
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34627
Sample Questions
Q1) International law is the law of a foreign nation and varies from country to country.
A)True
B)False
Answer: False
Q2) Cato and Dolly are involved in a lawsuit. The best definition of a lawsuit is
A) a criminal prosecution, not a civil proceeding.
B) a failure to perform a legal obligation.
C) a judicial proceeding for the resolution of a dispute.
D) an enactment of law by a legislative body.
Answer: C
Q3) Judge Karen decides that the precedent for the case she is hearing is no longer correct due to technological changes. She overturns the precedent when she decides the case. It is likely that her case will
A) go unnoticed by the public.
B) be thrown out of court.
C) receive a great deal of publicity.
D) be ignored by the media.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Constitutional Law
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34628
Sample Questions
Q1) In a federal form of government, the national government does not share sovereign power with the states.
A)True
B)False
Answer: True
Q2) The President determines the jurisdiction of the federal courts.
A)True
B)False
Answer: False
Q3) Under the First Amendment, in comparison with commercial speech, the protection given obscene speech is
A) equally extensive.
B) less extensive.
C) more extensive.
D) non-existent.
Answer: D
Q4) Federal legislation can affect how businesses compete.
A)True
B)False
Answer: True
Page 4
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Courts and Alternative Dispute Resolution
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34629
Sample Questions
Q1) A case is remanded when it is sent back to a trial court for further proceedings consistent with the opinion of the appellate court.
A)True
B)False
Answer: True
Q2) A motion for a new trial will be granted only if the trial judge feels that it is appropriate to grant a judgment for the other side.
A)True
B)False
Answer: False
Q3) Sofia files a suit against Turista Airlines, Inc. Turista responds that it appears from the pleadings that the parties do not dispute the facts and the only question is how the law applies to those facts. Turista supports this response with witnesses' sworn statements. This is a
A) counterclaim.
B) motion for judgment on the pleadings.
C) motion for summary judgment.
D) motion to dismiss.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Tort Law
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34630
Sample Questions
Q1) Proximate cause exists when the connection between an act and an in-jury is strong enough to justify imposing liability.
A)True
B)False
Q2) Defense of others is a defense to an allegation of assault.
A)True
B)False
Q3) Specifically targeting the customers of a competitor is always a legitimate business practice.
A)True
B)False
Q4) Bette backs out of City Parking Garage, colliding with Dill's car. Dill may recover $7,500 to cover the cost of the repairs if Bette failed to act as
A) a blameless person.
B) a faultless person.
C) a careless person.
D) a reasonable person.
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: Product Liability
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34631
Sample Questions
Q1) A design defect is not the sort of product defect that will support the imposition of liability on a strict product liability basis.
A)True
B)False
Q2) The types of product defects that have traditionally been recognized in product liability law include manufacturing defects.
A)True
B)False
Q3) An action in strict product liability requires that a product be reasonably dangerous to a user or consumer.
A)True
B)False
Q4) Grass Green Company makes and sells hedge trimmers, which are designed to be safe if used properly. Hazel buys a Grass Green trimmer and lends it to her neighbor Izak. In his garage, Izak is using the trimmer as a prod to dislodge a box from a high shelf when the trimmer suddenly engages. Startled, Izak drops the trimmer, which swings around and cuts his leg. Izak files a product liability suit against Grass Green, on the ground of negligence. On what basis could the manufacturer prevail?
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Intellectual Property Rights
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34632
Sample Questions
Q1) Patent infringement occurs only if all features or parts of a product are copied.
A)True
B)False
Q2) John Jones decides to use his personal name for a line of clothing he is developing. Whether or not the name John Jones acquires a secondary meaning will depend on A) how extensively John markets his line of clothing.
B) the market for John's line of clothing.
C) the number of clothing sales John makes.
D) all of the choices are correct.
Q3) James buys a copy of the book Kangaroo Down, Sport. Later, after reading the book, James sells the book to his sister. James's sale of the book is A) legal.
B) legal only if the copyright has expired.
C) legal only if he sells it for less than he paid for it.
D) illegal.
Q4) A marketing technique can be a trade secret.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Internet Law, Social Media, and Privacy
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34633
Sample Questions
Q1) The employees of The Car Company share company-related resources among multiple computers without requiring a central network server. This is
A) digital sampling.
B) cybersquatting.
C) cloud computing.
D) peer-to-peer (P2P) networking.
Q2) Eve and other users of Facebook and other social networking sites post trademarked images and copyrighted materials on these sites without permission. This is A) a violation of the intellectual property rights of the owners of the images and materials.
B) within the rights of the users of social networks.
C) a subject for dispute resolution by the providers of the social networks.
D) a "business-extension exception" under the Electronic Communications Privacy Act.
Q3) Online defamation is wrongfully hurting a person's reputation by communicating false statements about that person to others online.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
9
Chapter 8: Criminal Law and Cyber Crime
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34634
Sample Questions
Q1) It is not a crime to defraud the public through the use of e-mail ads.
A)True
B)False
Q2) A stolen credit card is more likely to hurt the cardholder than a merchant.
A)True
B)False
Q3) Mae is granted immunity after she agrees to testify about a crime. Mae has an absolute privilege against self-incrimination and can
A) be prosecuted only for a crime about which she agreed to testify.
B) not be prosecuted for any crime.
C) not refuse to testify.
D) refuse to testify.
Q4) The purpose of the exclusionary rule is to encourage criminals to provide exclusive evidence of their crimes.
A)True
B)False
Q5) A crime can be committed only against persons.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Business Ethics
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34635
Sample Questions
Q1) Morgan and other executive officers of Regional Economic Development Associates, Inc., applies the utilitarian theory of ethics in business contexts. Utilitarianism focuses on A) moral values.
B) religious beliefs.
C) the consequences of an action.
D) the nature of an action.
Q2) Ethics is the study of the principles that lead tofinancially successful conduct.
A)True
B)False
Q3) Dyan, the owner of Expert Restoration Services, Inc., adheres to the "principle of rights" theory. Under this theory, a key factor in determining whether a business decision is ethical is how that decision
A) complieswith religious principles.
B) affects the rights of others.
C) causes consequences that would follow if everyone acted the same way.
D) supports the right to make a profit.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Nature and Classification
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34636
Sample Questions
Q1) An implied contract is not an actual contract.
A)True
B)False
Q2) Informal contracts include all contracts other than formal contracts.
A)True
B)False
Q3) A court will normally interpret the language of a contract according to what the parties claim their intent was when they made it.
A)True
B)False
Q4) Home & Barn Construction, Inc., contracts with Idyll Farms to build a new dairy barn on Idyll's property for which Idyll agrees to pay.The elements of this, and any other, contract include
A) the parties' capability.
B) consideration.
C) necessity of purpose.
D) theprice.
Q5) If a contract term is ambiguous, a court can consider outside evidence. A)True
B)False
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Agreement
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34637
Sample Questions
Q1) Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself against disputes involving these contracts by making important terms
A) reasonably clear.
B) vaguely ambiguous.
C) practical.
D) standardized.
Q2) Rafi offers a tour of Bay Harbor aboard his sailboat, Sea Siren, to Tiara's Travel Group for $500. Referring to the prices for similar tours, Tiara's says, "We'll pay no more than $400." Rafi's offer is
A) still open.
B) terminated.
C) rejected and subject to a counteroffer.
D) revoked.
Q3) An "offer" to sell an item on an online auction site generally is treated an invitation to negotiate.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
13
Chapter 12: Consideration, Capacity, and Legality
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34638
Sample Questions
Q1) A contract entered into by an intoxicated person is never valid.
A)True
B)False
Q2) A promise by one party to pay another for refraining from an action that one has a legal right to undertake is enforceable.
A)True
B)False
Q3) Lydia, a minor, charges the cost of a smartphone at a Mobile Devices & Minutes store. Two nights later, Lydia loses the phone at Natural Foods restaurant. She disaffirms the phone's purchase. Lydia owes Mobile Devices the reasonable value of the phone
A) if it is deemed a necessary.
B) if it is deemed a luxury.
C) if it is deemed unique.
D) under no circumstances.
Q4) A person who enters into a contract when he or she is intoxicated can void the contract under any circumstances.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Defenses to Contract Enforceability
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34639
Sample Questions
Q1) If a party against whom enforcement of an oral contract is sought admits under oath that a contract for sale was made, the contract will be enforceable.
A)True
B)False
Q2) A seller's attempt to conceal a fact that is material to a contract can give rise to an action for fraud.
A)True
B)False
Q3) Evidence of prior agreements that differ from the written terms of a contract can be introduced in court to contradict the contract.
A)True
B)False
Q4) Even when a naïve purchaser relies on an opinion from an expert, the innocent party is not entitled to rescission or reformation of a contract.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Third Party Rights and Discharge
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34640
Sample Questions
Q1) An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional.
A)True
B)False
Q2) The person to whom rights in a contract are assigned is the assignor.
A)True
B)False
Q3) Giving notice is legally necessary to establish the validity of an assignment.
A)True
B)False
Q4) If a third party has the right to control the details of contract performance, the third party is an incidental beneficiary.
A)True
B)False
Q5) In an assignment, the party assigning the rights to a third party is the assignee.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Breach and Remedies
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34641
Sample Questions
Q1) Renew Turf, Inc., enters into a contract with Sports Park to provide surface material for Sports Park's baseball fields by October 1 for a series to begin October 5. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is
A) meant to pay for additional liquid sealant in the event of damage.
B) a reasonable estimate of the loss on a breach.
C) designed to penalize the breaching party.
D) intended to quickly provide cash to the nonbreaching party.
Q2) Copper Conduit, Inc., and Dependable Electric Company sign an agreement that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000." This is
A) a liquidated damages clause.
B) a mitigation-of-damages clause.
C) a waiver-of-breach clause.
D) a penalty clause.
Q3) Ordinarily, the remedy for a seller's breach of a contract for a sale of real estate is damages.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 17
Chapter 16: International Law in a Global Economy
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34642
Sample Questions
Q1) Global Holdings, Inc. owns property in Kazakhstan. The Kazakhstan government seizes the property. In order for the seizure to be considered an expropriation and not a confiscation, the Kazakhstan government must
A) pay just compensation to Global Holdings.
B) pay just compensation to the U.S. government.
C) obtain the approval of the United Nations.
D) act in full accord with the laws of Kazakhstan.
Q2) International contracts rarely include arbitration clauses.
A)True
B)False
Q3) Call Center Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays Call Center just compensation. This is
A) confiscation.
B) defalcation.
C) dumping.
D) expropriation.
Q4) International law is a body of law that governs relations among nations. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: The Formation of Sales and Lease Contracts
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34643
Sample Questions
Q1) Olivia contracts to buy a refrigerator from a Prairie State Appliance store with the price to be paid in monthly installments. Later, Olivia files a suit against Prairie State, claiming that their contract is so unfair and one-sided that it would be unreasonable to enforce it. Olivia is asserting
A) the concept of good faith.
B) the entrustment rule.
C) the mirror image rule.
D) the doctrine of unconscionability.
Q2) Any explicit understanding between the buyer and the seller determines when title passes.
A)True
B)False
Q3) Lexi pays Mobile Edge Electronics $600 and receives a new phone. Under the UCC, this is
A)a merchant's firm offer.
B)a lease.
C)a sale.
D)a requirements contract.
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Performance and Breach of Sales and Lease Contracts
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34644
Sample Questions
Q1) Fruited Plain, Inc., agrees to sell high-quality grain seed to Grange Co-op. Because only half of the quantity ordered is available, Fruited Plain ships a lesser quality seed in twice the amount of the remainder of the order for the same price. Grange Co-op rejects the lesser quality seed. With time for performance not yet expired, Fruited Plain can A) attempt to cure the defect.
B) cancel the contract.
C) recover the amount of its expected profit plus incidental damages.
D) resell or dispose of the seed and hold Grange Co-op liable for any loss.
Q2) A warranty of title cannot be disclaimed.
A)True
B)False
Q3) In sales law, failing to examine the goods and refusing to examine the goods are considered the same thing.
A)True
B)False
Q4) Statements of opinion and value usually create express warranties.
A)True
B)False
Page 20
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: Negotiable Instruments
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34645
Sample Questions
Q1) A symbol can serve as a valid signature.
A)True
B)False
Q2) Plumbing & Pipes Supply Company issues a promissory note as a demand instrument with a due date of October 5. QuikPay Loan Company accepts the note. QuikPay has notice that the note is overdue if the firm takes the note
A) after October 5.
B) before October 5.
C) on October 5.
D) at any time.
Q3) An instrument is not defective simply because it is overdue.
A)True
B)False
Q4) A time draft is payable at a definite future time.
A)True
B)False
Q5) Failure to present an instrument on time is not improper presentment.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Banking in the Digital Age
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34646
Sample Questions
Q1) Ervin signs a check "pay to the order of Felicia" drawn on Ervin's account in Garden Fields Bank. Ervin later orders the bank not to pay the check, but the bank pays it over Ervin's order. Subsequent checks written on Ervin's account "bounce." Most likely liable for the costs to Ervin is
A) any party to whom a subsequent check was written.
B) Ervin.
C) Felicia.
D) Garden Fields Bank.
Q2) On an automated teller machine (ATM) belonging to USA Bank, Sven placed a card-skimming device to pull information from the magnetic strips of users' debit cards. The device then transmitted the stolen data to thieves who used it to gain access to, and empty, the bank accounts of the users, including Megan. Megan learned of the theft the next day and promptly notified USA. Is Megan entitled to a recredit of her account for the most of the loss due to the theft? Explain.
Q3) A bank that encodes information on an item after its issue warrants to any subsequent bank that the information is correct.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Security Interests and Creditors Rights
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34647
Sample Questions
Q1) Market Credit Corporation is the secured party in a secured transaction with Northwest Outfitters. Market Credit could also be referred to as
A)the debtor.
B)the secured creditor.
C)the security interest.
D)the filing officer.
Q2) In most situations, the state office in which a financing statement should be filed depends on the location of the collateral.
A)True
B)False
Q3) Advances against lines of credit can be subject to a perfected security interest in certain collateral.
A)True
B)False
Q4) A buyer in the ordinary course of business has priority even if a previously perfected security interest exists as to the goods.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 22: Bankruptcy
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34648
Sample Questions
Q1) The same principles that govern the filing of a liquidation petition apply to reorganization proceedings.
A)True
B)False
Q2) Gem Jewelers files a voluntary petition for bankruptcy. In listing its assets, Gem intentionally does not include certain valuable stones. After Gem is granted a discharge, Hasty Catering, one of Gem's unsecured creditors whose claims were discharged, learns of the fraud. Hasty can
A) do nothing.
B) enforce its claim against Gem.
C) file an involuntary petition for bankruptcy against Gem.
D) take possession of the stones with or without a breach of the peace.
Q3) Carlton files a petition in bankruptcy. One of the goals of bankruptcy law with respect to a debtor is to
A) encourage the continued use of credit to borrow funds.
B) ensure that third parties will continue to guarantee loans.
C) provide a fresh start, free from creditors' claims.
D) shield assets from creditors' claims.
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: Agency Relationships in Business
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34649
Sample Questions
Q1) Emery is a corporate officer of Frakking Mining Corporation. Emery serves in a representative capacity for Frakking's owners. With respect to binding Frakking Mining to contracts, Emery is
A) an agent and has the authority.
B) an employee and does not have the authority.
C) an independent contractor and does not have the authority.
D) not an agent, an employee, or an independent contractor but does have the authority.
Q2) Jim agrees to act on Kit's behalf, subject to Kit's control, and Kit trusts Jim to so act. This describes a relationship between
A) a business and its competitors.
B) a government and its governed.
C) a parent and a child.
D) a principal and an agent.
Q3) A familiar example of an agent is the owner of a corporation.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
25
Chapter 24: Employment, Immigration, and Labor Law
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34650
Sample Questions
Q1) Motor Vehicle Assembly Corporation operates a plant near the border between the United States and Mexico. Due to the location, it would be easier for the company to employ noncitizens. In this circumstance, it is legal for a U.S. employer to
A) hire persons not authorized to work in the United States.
B) recruit persons not authorized to work in the United States.
C) refer for a fee persons not authorized to work in the United States.
D) none of the choices.
Q2) An eligible employee may take leave under the Family and Medical Leave Act to care for the employee's spouse, child, or parent who has a serious health condition.
A)True
B)False
Q3) Children under fourteen years of age are not allowed to work.
A)True
B)False
Q4) During collective bargaining, the employer and the union are obligated to reach an agreement.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 25: Employment Discrimination
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34651
Sample Questions
Q1) Refer to Fact Pattern 25-3. To succeed with a claim against Banquet under the Americans with Disabilities Act, Artur will have to show that
A) Artur consistently met the essential requirements of his job.
B) Banquet refused to make reasonable accommodation for Artur.
C) Carter is unqualified for Artur's position.
D) the doors were installed as an act of intentional discrimination.
Q2) Lingerie Closet, a women's clothing store, employs female attendants to assist customers in the dressing rooms. Mark, a forty-one-year-old male, applies for an attendant's job, but is not hired. In Mark's suit against Lingerie Closet for employment discrimination under Title VII, the store has
A) no defense.
B) a bona fide occupational qualification defense.
C) a business necessity defense.
D) a seniority system defense.
Q3) If a wage differential is due to any factor other than gender, then it does not violate the Equal Pay Act.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 26: Sole Proprietorships and Private Franchises
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34652
Sample Questions
Q1) Faye is interested in buying a franchise from Gas n' Snax Stores Inc. This transaction, like other franchise deals, is regulated to protect
A) certain types of anticompetitive agreements.
B) franchisors from dishonest prospective franchisees.
C) prospective franchisees from dishonest franchisors. an>
D) the government's power to restrict freedom of contract.
Q2) The federal government regulates franchising through laws that apply to specific industries.
A)True
B)False
Q3) A franchise relationship may be governed by the law covering sales contracts as expressed in Article 2 of the Uniform Commercial Code.
A)True
B)False
Q4) A franchisee is generally economically independent of the franchisor's integrated business system.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 27: All Forms of Partnership
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34653
Sample Questions
Q1) Refer to Fact Pattern 27-2. Lindsey dissociates from Mobile. Kristin signs a contract with Organic Olives, a food seller, apparently on Mobile's behalf. Organic Olives does not know of Lindsey's dissociation. The contract is binding on
A) Kristin, Lindsey, and Mobile.
B) Kristin only.
C) Mobile only.
D) Organic Olives only.
Q2) If no fixed duration of the partnership is specified, the partnership is a partnership at will, which means that it cannot be dissolved.
A)True
B)False
Q3) Oliana is a partner in Pacific Traders. In the majority of states, with respect to any partnership obligations that Oliana does not participate in, know about, or ratify, Oliana would be liable for
A) none of the obligations.
B) all of the obligations, jointly and severally.
C) all of the obligations, jointly but not severally.
D) only the contractual obligations.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 28: Limited Liability Companies and Special Business Forms
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34654
Sample Questions
Q1) Generally, a dissociated member of a limited liability company (LLC) has the right to buy his or her interest in the LLC from the other members.
A)True
B)False
Q2) Outreach Security & Rescue, LLC, is a limited liability company. Unless the members have agreed otherwise, participants in the firm's management will be considered to include
A) all members.
B) no member.
C) one member.
D) one non-member manager.
Q3) Lauren, Marcella, and Norell form a syndicate to buy a professional soccer franchise. This syndicate could be set up as
A) a joint venture.
B) a corporation.
C) a sole proprietorship.
D) a limited liability company.
To view all questions and flashcards with answers, click on the resource link above.
Page 30
Chapter 29: Corporations
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34655
Sample Questions
Q1) The corporation is a creature of the common law.
A)True
B)False
Q2) Ernst is a director of Fine Art Dealers, Inc. Ernst is trained in art valuation. Fine Art makes several purchases in which it pays too much for artwork. Ernst approves all the transactions without reading the details. Ernst is most likely liable for breach of A) the duty of care.
B) none of the choices.
C) the duty of loyalty.
D) the business judgment rule.
Q3) A director must always vote on a proposed transaction in which he or she has a personal interest.
A)True
B)False
Q4) Speculative Business Corporation can be compelled to dissolve by A) any of the choices. B) its competitors.
C) dissatisfied clients and customers.
D) a court order.
To view all questions and flashcards with answers, click on the resource link above. Page 31
Chapter 30: Investor Protection, Insider Trading, and Corporate Governance
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34656
Sample Questions
Q1) "Forward-looking" financial forecasts that turn out to be wrong are not protected against liability for securities fraud.
A)True
B)False
Q2) Every state has its own corporate securities laws that regulate the offer and sale of securities within tis borders.
A)True
B)False
Q3) Corporate "outsiders" may not be held liable for insider trading under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5.
A)True
B)False
Q4) Refer to Fact Pattern 30-3. Under the Securities Exchange Act of 1934, Geoff is most likely
A) liable for insider trading.
B) not liable because Geoff is only a tippee, not a tipper.
C) not liable because Geoff is too far down the chain of disclosure.
D) not liable because Geoff traded on the basis of a material fact.
32
To view all questions and flashcards with answers, click on the resource link above.
Chapter 31: Antitrust Law and Promoting Competition
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34657
Sample Questions
Q1) The Association of Organic Food Growers, which does not include all organic farmers and ranchers, refuses to deal with any parties who do not carry the products of its members. This group boycott is
A) a situation that neither restrains trade nor harms competition.
B) a legal restraint of trade.
C) a per se violation of antitrust law.
D) subject to analysis under the rule of reason.
Q2) Unilateral conduct cannot result in a violation of antitrust law.
A)True
B)False
Q3) Domestic Oil Company joins with a foreign cartel to control the price of oil. The cartel has a substantial effect on U.S. commerce. A suit for violation of U.S. antitrust laws can be brought against
A) Domestic Oil and the foreign cartel.
B) the foreign cartel.
C) Domestic Oil.
D) all of the choices.
Q4) Resale price maintenance agreements are per se violations of the Sherman Act.
A)True
B)False
Page 33
To view all questions and flashcards with answers, click on the resource link above.
Chapter 32: Consumer and Environmental Law
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34658
Sample Questions
Q1) Refuse Reuse & Disposal Center operates a recycling plant. Stan and other Refuse Reuse neighbors file a suit, alleging injuries from the plant. To succeed, they must show that the defendant failed to use reasonable care if the suit is based on
A) a negligence theory.
B) a nuisance theory.
C) any theory.
D) a strict liability theory.
Q2) Credit can be denied on the basis of marital status.
A)True
B)False
Q3) County Water & Sewer operates a public water supply system. County Water must send to every household that it supplies with water an annual statement describing A) County Water's financial situation and material facts that might affect it.
B) other operations, such as irrigation and water conservation, in which County Water is involved and to what extent.
C) parties who might be held liable if pollution problems arise.
D) the source of the water, and any contaminants and health concerns.
To view all questions and flashcards with answers, click on the resource link above. Page 34
Chapter 33: Liability of Accountants and Other Professionals
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34659
Sample Questions
Q1) Nguyen Imports, Inc., accuses Ogilvie, an accountant, of committing defalcation. This is
A) embezzlement.
B) general misconduct.
C) professional negligence.
D) misrepresentation of professional expertise.
Q2) Accountants and other professionals do not face liability under the common law for any breach of contract.
A)True
B)False
Q3) Tyson accuses Ulman, an attorney, of committing malpractice. Malpractice is A) constructive fraud.
B) a defalcation.
C) none of the choices.
D) professional negligence.
Q4) An accountant who performs an audit may be liable for failing to detect misconduct if a normal audit would have revealed it.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 35
Chapter 34: Personal Property and Bailments
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34660
Sample Questions
Q1) Warehouse companies are not liable for loss or damage to property resulting from negligence.
A)True
B)False
Q2) The delivery of goods to a common carrier creates a bailment relationship between the shipper and the carrier.
A)True
B)False
Q3) Inadvertently, Rocko leaves his backpack at Suki's Sushi when he stops for lunch and an hour of Facebook. The backpack is
A) abandoned property.
B) bailed property.
C) lost property.
D) mislaid property.
Q4) All transactions involving the delivery of property from one person to another create a bailment.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 36
Chapter 35: Real Property and Landlord-Tenant Law
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34661
Sample Questions
Q1) Barlow owns the surface rights for Canyon Ranch, but does not own the subsurface rights. Dusty owns the subsurface rights. Canyon Ranch includes a house, a bunkhouse, and two barns, which are damaged when Dusty is excavating for minerals under the surface. Most likely liable for the damage is
A)Dusty.
B)Barlow.
C)Dusty and Barlow.
D)no one.
Q2) To terminate a periodic tenancy. a landlord must give at least one period's notice to the tenant.
A)True
B)False
Q3) A license is a right to go onto land owned by another and take away some part of the land itself or some product of the land.
A)True
B)False
Q4) A tenant can withhold rent for any reason.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 37
Chapter 36: Insurance, Wills, and Trusts
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/34662
Sample Questions
Q1) A valid will is one that represents the maker's intention to transfer and distribute his or her property.
A)True
B)False
Q2) Donovan obtains from Equity Insurance Company a policy that provides that if the parties cannot agree on the amount of a loss covered by the policy, an estimate of the value by an impartial third party can be demanded. This is
A) an antilapse clause.
B) an arbitration clause.
C) an appraisal clause.
D) an incontestability clause.
Q3) Anna obtains a business liability insurance policy for her Brew & Bagels Coffee Shop from Choice First Insurance Company. When an event occurs that gives rise to a claim, each party has a duty to
A) cooperate in an investigation to determine the facts.
B) file a suit against the other so that a court can settle the claim.
C) find a third party on whom to impose liability.
D) pay any outstanding premium or refund any unearned amount.
To view all questions and flashcards with answers, click on the resource link above. Page 38