Contracts and Sales Law Study Guide Questions
Course Introduction
Contracts and Sales Law explores the fundamental principles governing legally enforceable agreements and transactions, focusing on both common law and the Uniform Commercial Code (UCC) as they apply to the sale of goods. The course examines contract formation, enforceability, performance, breach, and remedies, as well as issues unique to sales transactions such as title passage, risk of loss, and warranties. Students will analyze case law and statutory provisions to understand the rights, obligations, and remedies of parties to contracts, developing skills in legal reasoning, problem-solving, and application of doctrine to real-world commercial contexts.
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
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) In a suit against Ian, Jenna obtains an injunction. This is
A) an order to do or to refrain from doing a particular act.
B) an order to perform what was promised.
C) a payment of money or property as compensation.
D) the cancellation of a contract.
Answer: A
Q2) The Rhode Island state legislature enacts a law that violates the U.S. Constitution. This law can be enforced by
A) no one.
B) the federal government only.
C) the state of Pennsylvania only.
D) the United States Supreme Court only.
Answer: A
Q3) Law consists of enforceable rules governing relationships among individuals and between individuals and their society.
A)True
B)False
Answer: True
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) The Eighth Amendment prohibits excessive bail and fines.
A)True
B)False
Answer: True
Q2) Under the Constitution, the judicial branch is responsible for foreign affairs.
A)True
B)False Answer: False
Q3) Savers Mart, Inc., distributes its merchandise to retail outlets on an inter-state basis. Under the commerce clause, Congress has the power to regulate A)any commercial activity in the United States.
B)only activities that are in intrastate commerce.
C)only activities that are in local commerce.
D)only activities that are not in commerce.
Answer: A
Q4) The term police powers encompasses just the enforcement of criminal laws. A)True
B)False Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 4
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) Isabel and Josh engage in a business transaction that leads to a dispute. Isabel initiates a lawsuit against Josh by filing a complaint. The sheriff serves Josh with a summons. If Josh chooses to ignore it,
A) Isabel must file an amended complaint.
B) Isabel will have a judgment entered in her favor.
C) Josh must be served with a second summons.
D) Josh will have a judgment entered in his favor.
Answer: B
Q2) To resolve a dispute in nonbinding arbitration, Alyson in Baltimore and Chuck in Denver utilize E-Resolve, an online dispute resolution (ODR) service. This limits these parties' recourse to the courts
A) not at all.
B)
Until the ODR service has issued a decision.
C) with respect to any dispute arising between them.
D) with respect to this dispute only.
Answer: A
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) As a joke, Jem takes Kyla's business law textbook and hides it so that Kyla cannot find it during the week before the exam. Jem may have committed A) appropriation.
B) conversion.
C) disparagement of property.
D) trespass to personal property.
Q2) Kojo, a LifeCare Medical Supplies salesperson, follows Malin, a salesperson for National Medco Products, a LifeCare competitor, as Malin visits medical clinics, doctors' offices, hospitals, and other locations to make sales. Kojo solicits each of Malin's customers. Kojo is most likely liable for A) conversion.
B) no tort.
C) wrongful interference with a business relationship.
D) trade libel.
Q3) Tort law provides remedies for acts that cause the destruction of or damage to property.
A)True
B)False
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 manufacturing defect is a departure from a product unit's design specifications that results in products that are physically flawed.
A)True
B)False
Q2) Lipstik, Inc. makes cosmetics. Lipstik intentionally mislabels its packaged products to conceal a defect. Trusting and relying on the mislabeling, Mikayla buys a Lipstik product and suffers an injury. Lipstik is most likely liable for A) product misuse.
B) fraud.
C) privity.
D) puffery.
Q3) BioChem Corporation, ChemCo Company, and DexLabs Inc. make and distribute toxic chemicals. In a product-liability suit against all of these parties, the court is most likely to impose market-share li-ability if it cannot be proved which of the parties A) was in privity with the injured plaintiff.
B) exercised the least amount of due care in making the product.
C) supplied the particular product that caused the injury.
D) holds the largest share of the market for the product.
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) 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.
Q2) Tosucceed in a lawsuit alleging trademark dilution, the plaintiff must prove that consumers are likely to be confused by the unauthorized use of a mark.
A)True
B)False
Q3) A license permits the use of intellectual property for certain limited purposes. A)True
B)False
Q4) By using another's trademark, a business could lead consumers to believe that its goods were made by the other business.
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) Employees, clients, and others with authorization use World Transport Corporation's network around the globe to share computer files. This is
A) an invasion of privacy.
B) trademark and copyright infringement.
C) digital sampling.
D) a distributed network.
Q2) Justin's posts on Facebook provide information that establishes his intent and what he knew at a particular time, indicating potential liability. For this and other reasons, social media posts are often
A) included in discovery in litigation.
B) used by law enforcement to detect and prosecute criminals.
C) used by federal regulators in investigations into illegal activities.
D) all of the choices.
Q3) Downloading music into a computer's random access memory, or RAM, is not copyright infringement, even if it is done without authorization.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 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) Berto pushes Consuela to the ground, grabbing her smartphone as she falls. The use of force or fear is required for this act to constitute
A) burglary.
B) any crime.
C) larceny.
D) robbery.
Q2) One purpose of criminal sanctions is to deter others from committing similar crimes in the future.
A)True
B)False
Q3) Sandy, a businessperson, is convicted of RICO offenses. Sandy's penalties may include
A) divestiture or dissolution of Sandy's business.
B) imprisonment for up to twenty years.
C) a fine of up to $25,000 per violation.
D) all of the choices.
Q4) Falsifying public records or altering a legal document is larceny.
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) As CEO of Alabama Archery Supplies, Bertrand applies ethical standards derived from religious principles. For businesses, religious principles can be
A) a unifying force for employees.
B) all of the choices.
C) a rallying point to increase employee motivation.
D) thebasis for an action that leads to negative publicity.
Q2) Donna works for eMarketing, Inc. Her job includes putting spin on the firms successes and failures. In this context, ethics has to do with how businesspersons, in making their decisions, apply
A)legal doctrine.
B)moral and ethical principles.
C)corporate guidelines.
D)financial priorities.
Q3) Corporations can be viewed as "citizens" that are expected to participate in bettering society.
A)True
B)False
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) A contract is valid only if both of the parties entering into it have the capacity to do so.
A)True
B)False
Q2) On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had
A) an expired contract when Neil said that he had changed his mind.
B) aquasi contract when Neil said that he would pay for certain work.
C) aunilateral contract as soon as Outdoor began to perform.
D) no contract.
Q3) Randy promises to give Stewart her iPod in exchange for Stewart's promise to pay Randy $50. This bilateral contract was created when A) Randy offered to sell her iPod to Stewart.
B) Randy decided to sell her iPod.
C) Stewart promised to pay Randy $50.
D) Stewart became aware that Randy was willing to sell her iPod.
To view all questions and flashcards with answers, click on the resource link above.
Page 12
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) A forum-selection clause specifies that any contract dispute will be settled in a particular jurisdiction.
A)True
B)False
Q2) Play-It-Loud, LLC, provides music-streaming services online subject to complex pricing schedules. To control specific offers for the services and thus the resulting contracts, important terms to provide online include
A) a provision relating to the resolution of any dispute.
B) a detailed history of the music business.
C) positive reviews from users of the service.
D) an updated list of the music available through the service.
Q3) The mailbox rule applies to communication by phone as well as by mail.
A)True
B)False
Q4) An offer may invite an acceptance to be worded in specific terms but that cannot make the contract definite.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 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) Valley Paragliders Association files a suit against Wing Designers, Inc., claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if A)there is a large disparity in the amount of consideration exchanged. B)the consideration involves the performance of services. C)something of value passed between the parties. D)the consideration is worth less than $100.
Q2) A transaction that lacks a bargained-for exchange lacks an element of consideration.
A)True
B)False
Q3) Fletcher signs a contract to buy a new electric guitar and amplifier just before reaching the age of majority. After reaching the age of majority, Fletcher does not take possession or make payments. With respect to the contract, most courts would hold that this is
A) disaffirmance.
B) emancipation.
C) ratification.
D) rescission.
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) 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
Q3) When both parties to a contract are mistaken about the same material fact, the contract cannot be rescinded.
A)True
B)False
Q4) When the dominant party in a fiduciary relationship benefits from that relationship, a presumption of undue influence arises.
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) Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company. Even-Bilt completely performs. Discount E-Sales is entitled to A) damages.
B) nothing more.
C) to be excused from performance.
D) suspend performance.
Q2) D'Alemberte contracts with Elias to render personal nursing services for the benefit of Federica. This is
A) a delegation.
B) an assignment.
C) a third party beneficiary contract.
D) an alienation.
Q3) Rights to receive funds can be assigned.
A)True
B)False
Q4) The most common way to discharge one's contractual duties is by breach of contract.
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) Consequential damages are foreseeable damages that arise from a party's breach of a contract.
A)True
B)False
Q2) Isabel orally agrees to buy a unique collection of nineteenth-century cowboy memorabilia for $10,000 from Jessie and sends $2,500 as a down payment. When Isabel pays the rest of the price, Jessie refuses to ship the collection. Isabel should seek
A) damages.
B) restitution.
C) rescission.
D) specific performance.
Q3) Tile & Grout (T&G) contracts to resurface the insides of the pools at WaterWorld Park.
T&G knows that without the resurfacing, WaterWorld will have to delay its seasonal opening. T&G does not perform as promised. As consequential damages, WaterWorld can recover
A) the cost of new pools.
B) the difference between T&G's price and the eventual cost of resurfacing.
C) the loss of profit from the delayed opening.
D) nothing.
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) Mont Blanc S.A., a French firm, imports its goods into the United States and offers those goods for sale at "less than fair value." "Fair value" is the price of Mont Blanc's goods in
A) the European market.
B) France.
C) the United States.
D) the world market.
Q2) UniOil, a U.S. firm, owns property in Nicaragua. When the government of Nicaragua seizes the property, UniOil asks a U.S. court to order the property's return. The court rules that Nicaragua is exempt from the court's jurisdiction. This is
A) a travesty of justice.
B) the act of state doctrine.
C) the doctrine of sovereign immunity.
D) the principle of comity.
Q3) In direct exporting, a U.S. company signs a sales contract with a foreign purchaser that provides for the conditions of shipment and payment of goods.
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) Brad leaves an iPod at Computer Sales & Repair (CSR) to have the battery replaced. CSR sells the iPod to Doris, who does not know that it belongs to Brad. Brad can recover from
A) no one.
B) CSR.
C) Doris.
D) Apple, Inc., the maker of the iPod.
Q2) TalkTalk, Inc., offers to buy from Voice Media Corporation (VMC) 1,000 smartphones. Without notifying TalkTalk, VMC timely ships phones of a different quality. With respect to the offer and a possible contract, this shipment is an acceptance and A) a breach.
B) an accommodation.
C) complete performance.
D) a counteroffer.
Q3) In a destination contract, the seller is required or authorized to ship goods by carrier.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
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) Stella bought a cup of coffee at the Roasted Bean Drive-Thru. The coffee had been heated to 190 degrees and consequently had dissolved the inside of the cup. When Stella lifted the lid, the cup collapsed, spilling the contents on her lap. To recover for third-degree burns on her thighs, Stella filed a suit against the Roasted Bean. Can Stella recover for breach of warranty? Explain.
Q2) 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.
Q3) If goods in every respect conform to a contract, the buyer or lessee does not have a right to reject the goods.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 20
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) Lindsey, an accountant for Madison & Monroe, acquires a negotiable instrument from Norma by promising to pay its face value in thirty days. Lindsey acquires the status of an HDC when she
A) acquires possession of the negotiable instrument.
B) promises to pay the face value due on the instrument.
C) pays the face value due on the instrument.
D) transfers the instrument to another party.
Q2) On the back of a check payable to Nero, he writes "Pay to Odell, without recourse" and signs it. This
A) does not effect the check's negotiability or any party's liability.
B) relieves Nero of liability on the check.
C) relieves Odell of liability on the check.
D) renders the check nonnegotiable.
Q3) Mortimer negotiates an instrument to Nelson. Negotiation is the transfer of an instrument
A) for valuable consideration under a contract.
B) in such form that the transferee becomes a holder.
C) pursuant to preliminary contract discussions.
D) without the payment of a recognized medium of exchange.
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) Brandy forges Caleb's signature on a check "payable to the order of Brandy" drawn on Caleb's account in Downtown Bank. Caleb's forged signature is
A) effective if an innocent third party accepts the check.
B) effective to the degree that it matches Caleb's genuine signature.
C) effective to the extent that Downtown Bank debits Caleb's account.
D) not effective.
Q2) Dhani signs a check "pay to the order of Eton" drawn on Dhani's account in Fidelity guaranty Bank and dates the check "May 1." Eton presents the check to the bank for payment on December 15. This is
A) an oversight.
B) an overdraft.
C) a certified check.
D) a stale check.
Q3) A substitute check is a paper reproduction of the front and back of an original check that contains all the same information required on checks for automated processing.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
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) A creditor must exhaust all legal remedies against the principal debtor before holding the surety responsible for payment.
A)True
B)False
Q2) Once default has occurred and the secured party has obtained possession of the collateral, the secured party has no more options.
A)True
B)False
Q3) The payment of Chick's debt to Diamond is guaranteed by Chick's collection of eight restored autos. Their agreement describes Chick's subject property by serial number. To establish Diamond's interest, this is
A) not sufficient because it is too specific.
B) not sufficient if it matches the description in the financing statement.
C) sufficient if it accurately describes the parties' agreement.
D) not sufficient without an added description of the autos' other identifying characteristics.
Q4) Proceeds are whatever is received when collateral is sold.
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) Creditors hold judgments on overdue debts against AAA Auto Repair when the debtor receives a discharge in bankruptcy. AAA's discharge will
A) extend the time for payment of the overdue debts.
B) have no effect on the creditors' judgments.
C) require creditors to re-file their collection actions.
D) void any creditor's judgment on a discharged debt.
Q2) On the entry of an order for relief in a reorganization case, the creditors generally take over the operation of the debtor's business.
A)True
B)False
Q3) One goal of bankruptcy law is to ensure equitable treatment of creditors who are competing for a debtor's assets.
A)True
B)False
Q4) A debtor's vehicle is never exempt from satisfaction of a judgment debt. A)True
B)False
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) Normally, employees who deal with third parties are not deemed to be agents.
A)True
B)False
Q2) The relationship between a principal and an independent contractor cannot involve an agency relationship.
A)True
B)False
Q3) Roman is the chief executive officer of Salty Snax Corporation. Roman's responsibilities include decisions on product development, marketing, and other significant business directions. Roman is subject to the approval and oversight of Salty Snax's board of directors. Teri is a Salty Snax manager whose duties include the firm's day-to-day hiring, firing, purchasing, and selling. Umberto is a Salty Snax salesperson, whose daily activities are controlled by Teri. Velma writes sales manuals and promotional materials for Salty Snax's products according to Roman's instructions and subject to Salty Snax's control, but has no dealings with the company's customers or suppliers. Warren writes copy on a contract-per-project basis and is not otherwise subject to Salty Snax's control. Who is a principal? Who is an agent? Who is an employee? Who is an independent contractor?
To view all questions and flashcards with answers, click on the resource link above. Page 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) Trang is an employee of U.S. Natural Gas Company. Under federal law, Trang and other employees have the right to
A) bargain collectively with their employer through their representative.
B) insist that their employer require union membership to work.
C) require their employer to contribute financially to their union.
D) refuse to bargain with their employer through their representative.
Q2) Employers and unions have a duty to bargain in good faith.
A)True
B)False
Q3) In a typical strike, an employer has a right to hire replacement workers to substitute for striking workers.
A)True
B)False
Q4) For a union election to be held, at least 30 percent of the workers to be represented must support a union or an election on unionization.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 26
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) Cady files an employment discrimination suit against Durable Goods Corporation under the Civil Rights Act. If Cady shows that Durable Goods acted with malice or reckless indifference, she may recover
A) an unlimited amount of compensatory and punitive damages.
B) a limited amount of compensatory and punitive damages.
C) compensatory, but not, punitive damages.
D) punitive, but no compensatory, damages.
Q2) There is no way for an employer to avoid liability for online harassment.
A)True
B)False
Q3) Intentional discrimination by an employer against an employee is known as disparate-treatment discrimination.
A)True
B)False
Q4) If a job applicant or an employee with a disability, with reasonable accommodation, can perform essential job functions, the employer must make the accommodation.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 27
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) 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
Q2) Riki, the owner of Simply Sushi, is a sole proprietor. What are the chief characteristics, advantages, and disadvantages of this form of business organization? Riki wants to obtain additional capital to expand Simply Sushi, but she does not want to lose control of the firm. As a sole proprietor, what is her best option to attain these goals?
Q3) No state requires franchisors to provide presale disclosures to prospective franchisees.
A)True
B)False
Q4) Haute Dogs, Inc., sells a franchise to Irene's Cuisine, a lunch truck. Irene's Cuisine is A) a franchisee.
B) a franchisor.
C) a partner.
D) a principal.
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) Sara and Tony agree while talking on the phone to form a partnership-United Caretakers-to enter into the business of real property management. To be enforceable under the Statute of Frauds, their agreement must
A) be filed in the appropriate state office.
B) be in writing.
C) be signed by a notary public.
D) not involve a third party.
Q2) Most states treat a partnership as an aggregate for most purposes.
A)True
B)False
Q3) Sweet Selections, a general partnership, operates as a gift shop. Sweet Selections has ten partners. Jill and Amy each have a 25 percent interest in the partnership. All the other members have a 10 percent interest. With respect to management decisions
A) a majority of the partners must agree.
B) both Jill and Amy must agree.
C) the senior partner decides.
D) 30 percent of the partners must agree.
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) Bee Hive Honey, LLCs members include Chad, Dolores, and others. For purposes of suing and being sued, Bee Hive Honey is
A)an aggregate of Chad, Dolores, and the other members.
B)a natural person in the members family.
C)a legal entity apart from the owners.
D)a non-participating third party.
Q2) Most courts apply the same principles to joint ventures as they apply to partnerships.
A)True
B)False
Q3) Global Shipping Corporation and Harbor Warehouse Company transfer their property to Investment Managers, Inc., which manages the property and distributes the profits to Global Shipping and Harbor Warehouse. This form of a business organization is A) a business trust.
B) a joint stock company.
C) a joint venture.
D) a syndicate.
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) Dante and Eden want to form and do business as Farm-to-Fork Restaurant Corporation. Its existence depends generally on
A)city or county corporate codes.
B)the Entrepreneur's Corporate Handbook.
C)the federal Administrative Procedure Act.
D)state law.
Q2) Bread & Brews, Inc., files its articles of incorporation with the appropriate government agency. Least likely to appear in the articles is the name of
A) each of the corporation's incorporators.
B) each of the corporation's shareholders.
C) the corporation.
D) the corporation's initial registered agent.
Q3) The board of directors hires officers to run the daily business of a corporation. A)True B)False
Q4) As a general rule, shareholders make daily business decisions for a corporation. A)True
B)False
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) Fresh Fruit Company has assets of less than $10 million and fewer than fifty shareholders. Gourmand Pastries, Inc., has assets of more than $50 million and more than five hundred shareholders. The Securities Exchange Act of 1934 applies to
A) Fresh Fruit and Gourmand Pastries.
B) Fresh Fruit only.
C) Gourmand Pastries only.
D) neither Fresh Fruit nor Gourmand Pastries.
Q2) Boats and Yachts Corporation is a public company, which California regulates and in which Dorian invests. The Sarbanes-Oxley Act of 2002 introduced direct federal corporate governance requirements to
A) public companies.
B) private investors.
C) state regulators.
D) the Securities and Exchange Commission.
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
To view all questions and flashcards with answers, click on the resource link above. Page 32
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) Section 1 of the Sherman Act condemns monopolization.
A)True
B)False
Q2) Agreements that are deemed per se violations of Section 1 of the Sherman Act include all of the following except
A) a price-fixing agreement.
B) a group boycott.
C) a trade association.
D) a market division.
Q3) The purpose of antitrust legislation is to foster competition.
A)True
B)False
Q4) Pump Makers Inc. makes pumps for fire trucks and conditions shipments of its products to Quality Motors Corporation-a maker of fire trucks-on Quality's agreement to buy additional pumps only from Pump Makers. This is
A) an exclusive-dealing contract.
B) a tying arrangement.
C) price discrimination.
D) a group boycott.
To view all questions and flashcards with answers, click on the resource link above. Page 33
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) BioChemical Disposal Corporation operates a hazardous waste storage facility. ChemCo Inc. buys BioChemical before it is discovered that the firm's disposal practices violated CERCLA. With respect to these violations, Superfund imposes on ChemCo
A) strict liability.
B) liability under the nuisance doctrine.
C) liability on a negligence theory.
D) no liability.
Q2) Those who knowingly violate the Clean Air Act may be subject to criminal liability.
A)True
B)False
Q3) The Federal Trade Commission carries out the broadly stated goal of preventing unfair and deceptive trade practices.
A)True
B)False
Q4) The Environmental Protection Agency sets maximum levels for pollutants in public water systems.
A)True
B)False
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) Under the Sarbanes-Oxley Act, accountants must surrender possession of working papers relating to an audit or review to the party for whom the work was performed.
A)True
B)False
Q2) A professional can be liable for constructive fraud only if he or she acted with fraudulent intent.
A)True
B)False
Q3) Farley, an accountant, intentionally misstates a material fact to mislead Global Industries, Inc., a client. Global justifiably relies on the misstatement to its detriment. Farley is most likely liable for A) fraud.
B) malpractice.
C) negligence.
D) none of the choices.
Q4) In all states, communications between an accountant and his or her client are privileged.
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) Businesses do not usually pay taxes on the personal property they own, use, or lease, including office or farm equipment and supplies.
A)True
B)False
Q2) Enrico leaves his Ford sport utility vehicle at Gordo's Auto Service for an oil change. This is
A) a bailment.
B) a gift.
C) confusion.
D) abandoned property.
Q3) Yogi loans his laptop to Zoey. This is A) a bailment.
B) acquiring ownership by possession.
C) a gift.
D) accession.
Q4) Constructive delivery confers the right to take possession of an object. 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) Under the covenant of quiet enjoyment, a landlord promises that a tenant's use and enjoyment of the property will not be disturbed by someone with superior title.
A)True
B)False
Q2) To be valid, a deed must contain a legally sufficient description of the land.
A)True
B)False
Q3) In a tenancy in common, the interests are undivided.
A)True
B)False
Q4) Grant wants to transfer the ownership of his warehouse to Holly by deed. To do so requires
A) the grantee's signature only.
B) the grantor's signature only.
C) the grantee's and the grantor's signatures.
D) a judge's signature.
Q5) With a tenancy at will, either party can terminate the tenancy without notice.
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) One who dies after having made a valid will is said to have died intestate.
A)True
B)False
Q2) Jackie's will states, "I leave my red Corvette to Angela." This is
A) a specific legacy.
B) a devise.
C) an execution.
D) a general legacy.
Q3) Adam has two children, Bob (the eldest) and Carol, both of whom predecease
Adam. Bob is survived by a daughter, Dina, and Carol by two sons, Ed and Fred. On Adam's death, if the estate is distributed per stirpes
A) Dina will receive the entire estate.
B) Dina will receive one-half of the estate, and Ed and Fred will each receive one-fourth.
C) each grandchild will receive one-third of the estate.
D) the grandchildren will not receive anything.
Q4) A testator may revoke a will by intentionally tearing it.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 38