Legal Environment of Business Solved
Exam Questions
Course Introduction
This course explores the fundamental legal concepts and principles that govern the business environment, providing students with an understanding of how law influences and shapes business decisions and operations. Key topics include the structure and functions of the U.S. legal system, contract law, torts, agency, business organizations, intellectual property, employment law, and government regulation. Emphasis is placed on the application of legal reasoning to real-world business scenarios, helping students recognize legal issues, assess risks, and make informed managerial decisions within the framework of ethical and legal compliance.
Recommended Textbook Business Law and the Legal Environment Standard Volume 23rd Edition by David P. Twomey
Available Study Resources on Quizplus
39 Chapters
2081 Verified Questions
2081 Flashcards
Source URL: https://quizplus.com/study-set/2059 Page 2
Chapter 1: The Nature and Sources of Law
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/40953
Sample Questions
Q1) _______ law creates, defines, and regulates rights and liabilities.
A)Statutory
B)Constitutional
C)Substantive
D)Procedural Answer: C
Q2) When a court decides a new question or problem, the decision is called a stare decisis.
A)True
B)False Answer: False
Q3) Procedural law specifies the steps that must be followed in enforcing those rights and liabilities.
A)True
B)False Answer: True
Q4) Equity provides justice when the law is inadequate.
A)True
B)False Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: The Court System and Dispute Resolution
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/40954
Sample Questions
Q1) The United States Supreme Court was created by:
A)Congress.
B)the President.
C)the Uniform State Law Commission.
D)the U.S. Constitution
Answer: D
Q2) Generally, the prevailing party in a lawsuit is awarded the costs of the action, including witness fees and jury fees.
A)True
B)False Answer: True
Q3) Original jurisdiction courts are generally ____________.
A)supreme courts
B)appellate courts
C)trial courts
D)limited courts
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Business Ethics, Social Forces, and the Law
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/40955
Sample Questions
Q1) Ethical violations can cause lasting detriment to a company's ability to do business through impacts on the company's reputation.
A)True
B)False
Answer: True
Q2) In addition to issues of social responsibility, business values and ethics play an important role in the success or failure of a business.
A)True
B)False
Answer: True
Q3) Laws that prohibit mislabeling of food, speeding, and sale of alcohol to minors exist primarily:
A)for protection of the person.
B)for protection of public health, safety, and morals.
C)for protection of property.
D)for protection of the state.
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: The Constitution As the Foundation of the Legal Environment
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/40956
Sample Questions
Q1) Which of the following is true about administrative agencies?
A)Administrative agencies exercise powers guaranteed to them in the U.S. Constitution.
B)Administrative agencies exercise powers allocated to them by the president.
C)Administrative agencies make decisions that are rarely reviewed by the courts.
D)Administrative agencies make decisions that are effectively reviewed by voters.
Q2) One of the characteristics of the "living" Constitution is limited government.
A)True
B)False
Q3) The concept of equal protection of the law:
A)applies to both state and federal governments.
B)prohibits any classifications whatsoever.
C)applies only to conduct by private parties.
D)does not permit reasonable classifications.
Q4) A business does not have the constitutional right to participate in the political process or donate money to candidates.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Government Regulation of Competition and Prices
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/40957
Sample Questions
Q1) Section __________ of the Sherman Act applies to agreements, conduct, or conspiracies to restrain trade, which can consist of price-fixing, typing, and monopolization.
A)A
B)B
C)1
D)2
Q2) The Clayton Act prohibits:
A)all unfair methods of competition.
B)conspiracies in restraint of trade.
C)attempts to monopolize.
D)price discrimination between buyers of like commodities.
Q3) Unfair competition is controlled by:
A)statutes.
B)administrative agencies.
C)administrative regulations.
D)all of these.
Q4) Criminal penalties are possible under the Sherman Act.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Administrative Agencies
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/40958
Sample Questions
Q1) A subpoena to testify or to produce records:
A)is prohibited by the constitutional guarantee against unreasonable searches and seizures.
B)is an illegal attempt to gain information by compulsion.
C)cannot be opposed on the grounds that such a request constitutes an unreasonable search and seizure.
D)must be approved by corporate officers to be effective.
Q2) As Courts now tend to accept an agency's reasonable interpretation of a statute involving a technical matter, even though it was not the only interpretation that could have been made.
A)True
B)False
Q3) A court will not reverse an agency's decision merely because the court would have made a different decision based on the same facts.
A)True
B)False
Q4) An agency hearing is generally not subject to the rules of evidence.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Crimes
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/40959
Sample Questions
Q1) Generally, misdemeanors are more serious than felonies.
A)True
B)False
Q2) A crime consists of three elements: the mental state, the intent, and the act.
A)True
B)False
Q3) The Racketeer Influenced and Corrupt Organizations (RICO) Act authorizes both criminal and civil actions.
A)True
B)False
Q4) 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.
Q5) Corporations are entitled to Fifth Amendment protection.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Torts
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/40960
Sample Questions
Q1) The concept of immunity from liability means that:
A)one who harms another can be held liable only for voluntary acts.
B)certain persons are not subject to tort liability.
C)one who harms another without intending to do so is not subject to tort liability.
D)one who harms a child can never be sued by the parents of the injured child.
Q2) Sal sent Max an e-mail message telling Max that his wife had been killed in a car accident, and Sal knew this was untrue.Max may be able to sue Sal for:
A)Intentional infliction of emotional distress
B)Libel
C)Violations of the First Amendment
D)Battery
Q3) The same action can have both civil and criminal liability.
A)True
B)False
Q4) Concerning torts and crimes, choose the correct statement:
A)Every tort is a crime.
B)Every crime is a tort.
C)No crime is a tort.
D)A crime may also be a tort.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Intellectual Property Rights and the Internet
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40961
Sample Questions
Q1) Smarts and Then Some, Inc.developed a software program after several years of research and development.The particular software program was then test-marketed, at which point a competitor filed suit claiming that the Smarts and Then Some program violated the competitor's copyright on a program they too were test-marketing.What is the test to determine whether a copyright has been violated?
Q2) The type of patent that may be granted to developers of plant reproduction methods is called a:
A)process patent.
B)functional or utility patent.
C)improvement patent.
D)plant patent.
Q3) Cybersquatters are individuals who register and set up domain names on the Internet that are identical or confusingly similar to existing trademarks in the hopes they can sell the name to the trademark owner.
A)True
B)False
Q4) Stealing trade secrets can result in fines, but not imprisonment.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: The Legal Environment of International Trade
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/40962
Sample Questions
Q1) Which is a correct statement about arbitration of contractual disputes regarding international trade?
A)It is done in court.
B)There is extensive judicial review of the decision.
C)Parties frequently arbitrate in neutral countries.
D)It is not available in disputes of more than $1 million.
Q2) In order to strengthen the ________, in 1982 Congress passed the ________ to provide clarity on the extraterritorial reach of antitrust actions against foreign companies that have a "direct, substantial, and reasonably foreseeable effect" on U.S.commerce.
A)Rule of Reason Doctrine, Foreign Trade Antitrust Improvements Act
B)Act-of-State Doctrine, Foreign Trade Antitrust Improvements Act
C)Sovereign Compliance Doctrine, Foreign Trade Antitrust Improvements Act
D)Sherman Act, Foreign Trade Antitrust Improvements Act
Q3) A letter of credit agrees to provide the seller with needed currency exchanges when transactions with foreign buyers occur.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Nature and Classes of Contracts: Contracting on
the Internet
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40963
Sample Questions
Q1) A contract is essentially an agreement that creates an obligation.
A)True
B)False
Q2) In a quasi contract the court seeks to enforce the intentions of the parties contained in the agreement.
A)True
B)False
Q3) The elements for a valid contract do NOT include:
A)a fair price.
B)capacity.
C)consideration.
D)assent.
Q4) A contract never can be both executory and unilateral.
A)True
B)False
Q5) A contract for an amount greater than $1 million must be made under seal or it is not binding.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Formation of Contracts: Offer and Acceptance
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40964
Sample Questions
Q1) A "best efforts" clause is always deemed too indefinite to be enforceable.
A)True
B)False
Q2) A revocation of an offer is ordinarily effective after the offer has been accepted.
A)True
B)False
Q3) If either the offeror or offeree dies or becomes mentally incompetent before the offer is accepted, the offer is automatically terminated.
A)True
B)False
Q4) An offer gives the offeror the power to bind the offeree by contract.
A)True
B)False
Q5) Contract terms may not be implied from the parties' conduct.
A)True
B)False
Q6) A requirements contract is too vague to be a legally-enforceable agreement.
A)True
B)False
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Capacity and Genuine Assent
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/40965
Sample Questions
Q1) Status incapacities against married women have largely disappeared.
A)True
B)False
Q2) A contract obtained by physical duress is void.
A)True
B)False
Q3) An incompetent person may ordinarily avoid a contract in the same manner as a minor.
A)True
B)False
Q4) In order for fraud liability to arise, the listener must actually rely on the false statement of fact.
A)True
B)False
Q5) Ordinarily, every party to a contract is presumed to have contractual capacity until the contrary is shown.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Consideration
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/40966
Sample Questions
Q1) Past benefits already received by a promisor cannot be consideration for a later promise.
A)True
B)False
Q2) Ordinarily doing, or promising to do what one is already under a legal obligation to do, is not legal consideration.
A)True
B)False
Q3) If one party's promise contains no real obligation, then the promise is merely an illusory promise and the contract will fail for lack of mutuality.
A)True
B)False
Q4) The fact that the consideration supplied by one party is slight when compared with the burden undertaken by the other party is immaterial.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Legality and Public Policy
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/40967
Sample Questions
Q1) Agreements not to compete are always void.
A)True
B)False
Q2) Which of the following is not illegal?
A)an office football "pool" with a cash entry fee and cash prize
B)a raffle with an entry fee to win a car
C)a "giveaway" to every tenth person who buys meat at a butcher shop
D)a "giveaway" to every tenth person entering a department store
Q3) When money is loaned at a greater rate of interest than is allowed by law, __________ is committed.
A)Usury
B)credit misfeasance
C)petty theft
D)credit malfeasance
Q4) An agreement to slander a third person would not be enforceable because slander is a(n):
A)crime.
B)civil wrong.
C)infringement of privacy.
D)restraint against trade.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Writing, Electronic Forms, and Interpretation of Contracts
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/40968
Sample Questions
Q1) When interpreting an integrated contract, a court will exclude parol evidence in all of the following cases except:
A)to add to the terms of a contract.
B)to modify the terms of a contract.
C)to contradict the terms of a contract.
D)to show fraud.
Q2) A promise to grant a mortgage on real property does not require a writing because it is not a transfer of land.
A)True
B)False
Q3) The statute of frauds applies to:
A)the lease of an apartment on a month-to-month basis.
B)the cancellation of a written agreement for the sale and purchase of land.
C)an employment agreement.
D)the sale of goods priced at less than $500.
Q4) When an insurance policy is ambiguous, the policy is interpreted:
A)against the insurer.
B)in favor of the insurer.
C)according to the dictionary meaning of the words.
D)according to the meaning of the words in the insurance industry.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Third Persons and Contracts
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/40969
Sample Questions
Q1) Bruce is a donee beneficiary to a life insurance contract if he is listed as the beneficiary.
A)True
B)False
Q2) The beneficiary of a life insurance policy is not subject to any policy restrictions that had been agreed to between the insured and the insurance company.
A)True
B)False
Q3) Janet Jones sold the assets and liabilities of her coin-operated laundry to Kevin Katz for $10,000.The assets of the business included all of the washers and dryers.The liabilities included the amounts still owing on seven new dryers, which had been purchased recently from Dryer Company under an installment contract.Katz agreed to make the installment payments on the new dryers as they came due.After Katz failed to make an installment payment when it was due, Dryer Company sued Jones.Jones claimed she no longer was liable.How will the court decide?
Q4) The right to file a legal claim may not be assigned.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 19
Chapter 18: Discharge of Contracts
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/40970
Sample Questions
Q1) For the parties to enter into an accord and satisfaction that discharges the original obligation, there must be a bona fide dispute.
A)True
B)False
Q2) 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
Q3) The doctrine of substantial performance is concerned with the issue of whether an imperfect performance will be considered adequate to discharge one's responsibilities under a contract.
A)True
B)False
Q4) Contracts may be discharged by the joint action of both contracting parties or, in some cases, by the action of one party alone.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Breach of Contract and Remedies
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/40971
Sample Questions
Q1) A reservation of rights is an assertion by a party to a contract that even though a tendered performance is accepted, the right to damages for the nonconformity to the contract is reserved.
A)True
B)False
Q2) Between experienced businesspersons, exculpatory clauses are generally:
A)voidable.
B)void.
C)valid.
D)unenforceable.
Q3) If a plaintiff's loss involves damaged property, it is described as liquidated damages. A)True
B)False
Q4) A waiver of a breach may be either express or implied.
A)True
B)False
Q5) Consequential damages are those that necessarily flow from the breach. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Personal Property and Bailments
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40972
Sample Questions
Q1) Sylvia and Morris were married and owned their home as tenants by the entirety.When Morris died, his will said that he left his half of his home to his brother Tim.Who owns the home at Morris's death?
A)The home is now owned solely by Sylvia.
B)The home is now owned by a joint tenancy between Sylvia and Tim.
C)The home is now owned by a tenancy in common between Sylvia and Tim.
D)The home is now owned by Sylvia and the state, in equal and divisible shares.
Q2) Title to abandoned property is acquired by the first person who obtains possession and control of the property.
A)True
B)False
Q3) Bailments may be:
A)created orally or through a writing.
B)created for either real or personal property.
C)created for nonpossessory personal property.
D)made only after delivery to the bailor is accomplished.
Q4) A bailee's duty of care for bailed property depends on the type of bailment.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Legal Aspects of Supply Chain Management
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40973
Sample Questions
Q1) The legal definition of a guest of a hotel requires that the person:
A)live at least five miles from the hotel.
B)is a guest of a registered occupant of the hotel.
C)is a transient.
D)stay at the hotel for at least 24 hours.
Q2) When goods are delivered to a common carrier for immediate shipment and while they are in transit, who is normally liable for any loss or damage to the goods?
A)the shipper
B)the consignee
C)the carrier
D)the individual designated as responsible in the bill of lading
Q3) A bill of lading will be negotiable if its terms are that the goods are to be delivered to "bearer" or to "the order of" a named person.
A)True
B)False
Q4) A negotiable warehouse receipt states that the goods received will be "delivered to the bearer."
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 22: Nature and Form of Sales
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40974
Sample Questions
Q1) The UCC permits a court to refuse to enforce a sales contract that it finds to be unconscionable.
A)True
B)False
Q2) A contract of indefinite duration may be terminated by notice from either party to the other party.
A)True
B)False
Q3) Gonzalez Manufacturing negotiated by telephone to purchase approximately $7,000 worth of digital video recorders from Video Imports.The final details were worked out by telephone calls on April 2nd.On April 4th, Video sent Gonzalez a confirmation of their telephone agreement, which included pertinent details.Meanwhile, on April 3rd, Gonzalez was offered a better deal than Video's and accepted it.Upon arrival of the confirmation on April 6th, Gonzalez ignored it and did nothing further until May 1st, the date before Video was to deliver.On May 1st, Gonzalez informed Video that their contract was an unenforceable oral contract and that delivery would not be accepted.?When attempts to amicably settle the matter failed, Video sued Gonzalez for breach of contract.Decide.
To view all questions and flashcards with answers, click on the resource link above.
Page 24
Chapter 23: Title and Risk of Loss
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/40975
Sample Questions
Q1) If a buyer purchases goods on approval, the buyer's creditors cannot reach such goods until there is an approval.
A)True B)False
Q2) In a consignment, the dealer-consignee is often referred to as a(n): A)remainder.
B)factor.
C)quotient.
D)exponent.
Q3) Future goods can always be identified before they are manufactured. A)True B)False
Q4) In a non-shipment contract involving a merchant-seller, risk of loss passes to the buyer when he actually receives the goods from the merchant. A)True B)False
Q5) In a self-service store a sale cannot occur until the goods are paid for. A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 25
Chapter 24: Product Liability: Warranties and Torts
Available Study Resources on Quizplus for this Chatper
54 Verified Questions
54 Flashcards
Source URL: https://quizplus.com/quiz/40976
Sample Questions
Q1) Product liability based on privity of contract is accepted by the Uniform Commercial Code.
A)True
B)False
Q2) The federal regulation of express warranties:
A)applies only to limited warranties.
B)applies to a seller who makes a written express warranty for a consumer product costing more than $10.
C)requires all express warranties to be full warranties.
D)requires an implied warranty to be designated as either full or limited.
Q3) A merchant has greater potential warranty liability than does a casual seller.
A)True
B)False
Q4) Which of the following implied warranties is created when the buyer relies on the seller to pick out the goods that the buyer requires to meet a stated need?
A)conformity to description
B)Merchantability
C)fitness for a particular purpose
D)conformity to a sample or model
To view all questions and flashcards with answers, click on the resource link above. Page 26
Chapter 25: Obligations and Performance
Available Study Resources on Quizplus for this Chatper
43 Verified Questions
43 Flashcards
Source URL: https://quizplus.com/quiz/40977
Sample Questions
Q1) The standard for determining commercial impracticability is objective, not subjective.
A)True
B)False
Q2) To be adequate, after a proper demand an assurance of performance must:
A)include consideration.
B)allow for the additional examination of the goods.
C)be sufficient to assure a reasonable person that the contract will be performed.
D)be written.
Q3) The obligations of the parties to a sales contract include:
A)the seller's duty to deliver the goods to the buyer's place of business.
B)the buyer's duty to always accept the goods.
C)the seller's duty to arrange for appropriate transport.
D)the buyer's duty to pay for the goods.
Q4) If a contractually-specified mode of transportation is not available, the:
A)contract is automatically voided.
B)seller must make delivery by a commercially-reasonable substitute.
C)buyer must arrange to pick up the goods.
D)seller must make personal delivery.
To view all questions and flashcards with answers, click on the resource link above. Page 27
Chapter 26: Remedies for Breach of Sales Contracts
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40978
Sample Questions
Q1) Consequential damages are available to the buyer but not to the seller.
A)True
B)False
Q2) When a buyer has broken a sales contract, the seller may resell the goods or the balance of them in the seller's possession.
A)True
B)False
Q3) Which of the following is not an example of incidental damages recoverable by a seller?
A)expenses for the care of the goods after the buyer's breach
B)expenses for transportation of the goods after the buyer's breach
C)expenses for resale of the goods after the buyer's breach
D)expenses for the attorney's fees after the buyer's breach
Q4) In the case of a breach of warranties, the buyer:
A)should not notify the seller.
B)is required to notify the seller.
C)does not have the option to resell the goods.
D)is not able to recover consequential damages.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 27: Kinds of Negotiable Instruments and Negotiability
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/40979
Sample Questions
Q1) Article 2 of the Uniform Commercial Code governs negotiable instruments.
A)True
B)False
Q2) The requirement of a sum certain in money is fulfilled even though the interest rate changes at maturity.
A)True
B)False
Q3) Negotiation of commercial paper results in lesser rights to transferees than those rights afforded assignees of contracts under contract law.
A)True
B)False
Q4) Article 3 of the UCC establishes a four year statute of limitations for most actions involving negotiable instruments.
A)True
B)False
Q5) Negotiability is the characteristic that distinguishes commercial paper and instruments from ordinary contracts.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 29
Chapter 28: Transfers of Negotiable Instruments and
Warranties of Parties
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/40980
Sample Questions
Q1) Al was a well-respected attorney in a small town.A couple retained Al to represent them on the purchase of a home.Before closing, Al informed the couple of payments that they were required to make by check at the closing.Among the required payments the attorney told the couple to make were a check for $1,500 to Bob Brown and a check for $610 to Susan Lee.The attorney explained that the check to Brown was for a survey of the property and the check to Lee was for termite control work that the couple had authorized.??The checks were issued and taken by Al who promised to deliver them.Al did not, however, deliver them.Instead, Al forged the indorsements of the respective payees and cashed the checks.When Al was later arrested on a similar matter, the couple learned what had happened.??The couple made a claim against its bank for reimbursement, claiming the bank was not authorized to pay these checks because they had not been effectively negotiated to the bank.When the facts came to light, no person named Bob Brown had done a survey on the property, but the termite work had been done by Lee.Decide both cases.
Q2) A holder is also known as an assignee of the paper
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 30
Chapter 29: Liability of the Parties Under Negotiable Instruments
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40981
Sample Questions
Q1) Bill decided that it was time to remodel his home.Among the features that Bill had included in his remodeling plan was the addition of several very large picture windows.Because of the great expense of the windows, Bill financed the cost through the issuance of a promissory note.The manufacturer of the windows sold the promissory note to a bank.Just after the promissory note matured, the windows began to leak badly.Bill refused to pay on his promissory note and brought action against the manufacturer for breach of contract.Will the bank recover on the promissory note?
Q2) A holder is on notice that an instrument is defective when the holder:
A)demands payment.
B)brings suit for the collection of an instrument.
C)gives a discharge or release from liability on the instrument.
D)Has actual notice of a defect
Q3) Fraud in factum:
A)occurs when a person is persuaded to execute an instrument because of fraudulent statements.
B)occurs when a person signs an instrument as a result of being fraudulently deceived regarding essential terms.
C)is not a universal defense.
D)cannot be raised against a holder in due course.
Page 31
To view all questions and flashcards with answers, click on the resource link above.
Chapter 30: Checks and Funds Transfers
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40982
Sample Questions
Q1) If a bank pays a check whose face has been altered to increase the amount above that which the drawer intended to pay, the bank:
A)is liable to the drawer for the amount of the increase.
B)is liable to the drawer for the full amount of the check.
C)incurs liability only if it failed to examine the check before payment.
D)incurs liability only if the drawer made the alteration.
Q2) Certification of a check at the request of a holder:
A)releases all prior secondary parties.
B)releases the drawer but not prior indorsers.
C)releases prior indorsers, but not the drawer.
D)does not release all prior secondary parties.
Q3) Banks are liable for losses on counterfeit checks in all the following scenarios except:
A)whether or not the bank acted reasonably in its processing systems in clearing the checks.
B)whether or not the bank complied with time requirements for customers regarding the checks.
C)whether or not the bank made an unreasonable mistake in paying the check.
D)whether or not presentment was valid.
To view all questions and flashcards with answers, click on the resource link above.
Page 32
Chapter 31: Nature of the Debtor-Creditor Relationship
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40983
Sample Questions
Q1) Under the independence rule banks cannot, except in limited circumstances, delve into the underlying contract issues and must only focus on the terms of the letter of credit.
A)True
B)False
Q2) A surety that has made payment of a claim for which it was liable as a surety is entitled to which of the following from the principal?
A)Indemnity
B)Exoneration
C)Assignment
D)Subrogation
Q3) A debtor-creditor relationship is essentially a bi-lateral contract with enforceable rights and duties for both parties.
A)True
B)False
Q4) Standby letters of credit are used only in international trade situations.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 33
Chapter 32: Consumer Protection
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40984
Sample Questions
Q1) The __________ lending market makes loans to consumers who have bankruptcies, no credit history, low-to-moderate incomes, or a poor credit history.
A)subprime
B)subterranean
C)suboptimal
D)optimus prime
Q2) Anyone promoting the sale of a real estate development that is divided into fifty (50) or more parcels of less than five (5) acres each must file a(n) __________ statement with the secretary of Housing and Urban Development.
A)building plan
B)development
C)environmental impact
D)real property
Q3) Anyone promoting the sale of a real estate development that is divided into fifty (50) or more parcels of less than five (5) acres each must file a development statement with the secretary of Housing and Urban Development.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
34
Chapter 33: Secured Transactions in Personal Property
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40985
Sample Questions
Q1) 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
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 purchase money security interest in consumer goods is automatically perfected without a creditor's filing or possession of the collateral.
A)True
B)False
Q4) If the collateral is in the possession of the creditor: ______.
A)a financing statement must be filed to perfect the interest.
B)the security interest is perfected.
C)only a security interest has been obtained.
D)the type of goods will determine the method of perfection.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 34: Bankruptcy
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40986
Sample Questions
Q1) Under the Bankruptcy Reform Act, the "mansion loophole" increases the homestead exemption for debtors.
A)True
B)False
Q2) After all the creditors have been paid by the trustee, any balance is turned over to the debtor.
A)True B)False
Q3) Nonprofit corporations are exempt from involuntary bankruptcy proceedings.
A)True B)False
Q4) Arthur was involuntarily petitioned into bankruptcy by three of his creditors.When the trustee reviewed Arthur's books and records, the trustee discovered the following transactions: (a) Three weeks before the filing of the petition, Arthur paid cash for $17,000 worth of inventory for his store; and (b) Twelve days before the filing of the petition, Arthur paid $300 in full satisfaction of his store's most recent electric bill.?The trustee is considering attempting to set aside both of these transfers as preferential transfers.Discuss the advisability of the trustee's attempt to set aside these transfers.
To view all questions and flashcards with answers, click on the resource link above.
Page 36
Chapter 35: Insurance
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40987
Sample Questions
Q1) Mike Reilly suffered the loss of his home as a result of a chimney fire that was caused by the ignition of soot in the chimney.This fire would be described as: ______.
A)a friendly fire.
B)arson by negligence.
C)a strict liability fire.
D)a hostile fire.
Q2) A person who obtains life insurance generally can only name a beneficiary that has an insurable interest in the life of the insured.
A)True
B)False
Q3) The insured must comply with a number of time limitations in making a claim.
A)True
B)False
Q4) A contract of insurance is to be interpreted as it would be understood by a person with technical knowledge of the law or of insurance.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 37
Chapter 36: Agency
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40988
Sample Questions
Q1) The Uniform Durable Power of Attorney Act (UDPAA) changes the general rule that insanity of a principal terminates an agent's authority to act for the principal.
A)True
B)False
Q2) An agent is distinguished from an ordinary employee in that employees are always hired to represent the employer in dealings with third persons.
A)True
B)False
Q3) A durable power of attorney may be terminated by: ______.
A)revocation by a competent principal.
B)the death of the principal.
C)revocation by a competent principal or by the death of the principal.
D)none of these, since a "durable" power of attorney is designed by law to be irrevocable under all circumstances.
Q4) An agent has an interest in the authority when consideration has been given or paid for the right to exercise the authority.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 37: Third Persons in Agency
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40989
Sample Questions
Q1) Different rules of law govern the vicarious liability of principals and employers.
A)True
B)False
Q2) In which of the following scenarios is the agent exposed to the greatest risk of liability?
A)disclosed principal and authorized contract
B)undisclosed principal and authorized contract
C)partially disclosed principal and authorized contract
D)authorized receipt of money from third person remitted to disclosed principal
Q3) John Smyth is an agent for L.T.Adams.To avoid becoming a party to any contract that Smyth signs for Adams, Smyth should sign in which of the following ways?
A)John Smyth, agent
B)John Smyth, for the principal
C)John Smith, as agent for the principal
D)L. T. Adams, per John Smyth
Q4) Agents may intentionally make themselves contractually liable to third persons.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 38: Regulation of Employment
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40990
Sample Questions
Q1) Under the modern trend of the employment-at-will doctrine, the employer is allowed to terminate the employment contract at any time for any reason or for no reason.
A)True
B)False
Q2) The Family and Medical Leave Act entitles an employee to a total of 24 workweeks of unpaid leave during any 12-month period
A)True
B)False
Q3) Under a collective bargaining situation: ______.
A)groups of employers meet to draw up contracts for all of their employees.
B)representatives of the employees bargain with a single employer or a group of employers for an agreement on wages, hours, and working conditions for the employees.
C)groups of employees meet to dictate the terms of employment to their employers.
D)both management and labor meet to arbitrate their differences.
Q4) A person cannot be both an employee and an agent for a party at the same time.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 40
Chapter 39: Equal Employment Opportunity Law
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/40991
Sample Questions
Q1) The Equal Pay Act prohibits variation in wage rates paid to men and women based solely on gender.
A)True
B)False
Q2) To survive Title VII scrutiny, employers must prove that employment testing and educational requirements are "job related" requirements for satisfactory job performance.
A)True
B)False
Q3) Under Title VII, whites cannot be discriminated against because they are the majority race in this country.
A)True
B)False
Q4) The Equal Pay Act:
A)does not allow variances in wages pursuant to a seniority system.
B)generally requires that members of both sexes be paid equally for equal work.
C)prohibits all variations in wage rates paid to men and women.
D)makes payment variances a BFOQ.
To view all questions and flashcards with answers, click on the resource link above.