Legal Environment of Business
Textbook Exam Questions
Course Introduction
The Legal Environment of Business provides a comprehensive overview of the laws and regulations that affect the operation of businesses in the modern world. The course examines key legal principles in areas such as contracts, torts, property, business organization, intellectual property, and employment law, with a focus on understanding how these laws impact managerial decision-making. Special attention is given to the ethical and social responsibilities of businesses and the role of law in promoting fair competition, protecting consumer and employee rights, and fostering sustainable business practices. Through case studies and real-world examples, students develop critical thinking skills and an appreciation for the legal challenges that businesses face in a global context.
Recommended Textbook
Business Law and the Legal Environment Standard Volume 23rd Edition by
Available Study Resources on Quizplus
39 Chapters
2081 Verified Questions
2081 Flashcards
Source URL: https://quizplus.com/study-set/2059
Page 2
David P. Twomey
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) If your home or business is searched unlawfully, any items obtained during that unlawful search could be excluded as evidence in a criminal trial because of the
A)Fourth Amendment's exclusionary rule
B)Constitutional common law
C)Fifth Amendment's right to privacy
D)common law
Answer: A
Q2) One advantage of our current legal system is that the growth of technology has not created many new laws.
A)True
B)False
Answer: False
Q3) Those uniform state laws that have been adopted by individual states were first written by Congress.
A)True
B)False
Answer: False
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) A court that can only hear disputes involving damages of $5,000 or less has a limited jurisdiction.
A)True
B)False
Answer: True
Q2) A summary jury trial is:
A)binding on the parties.
B)a mock trial.
C)a full and complete hearing of all evidence pertaining to the case.
D)a shortcut to establishing judicial precedent.
Answer: B
Q3) A judge rules on the admissibility of evidence presented in the trial.
A)True
B)False
Answer: True
Q4) State supreme courts generally hear all cases appealed to them.
A)True
B)False
Answer: False
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) To Immanuel Kant, an action is ethical if it is fair and done for the right reasons.
A)True
B)False
Answer: True
Q2) The U.S.Patriot Act and airport security regulations were enacted for the protection of:
A)the person.
B)public, health, safety and morals.
C)the state.
D)personal rights.
Answer: C
Q3) Utilitarians believe that ethics is measured by actions that do the most good for the most people.
A)True
B)False
Answer: True
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) The equal protection clause prohibits a statute from treating one person differently from another:
A)when there is no reasonable ground for classifying them differently.
B)unless the statute discriminates on the basis of cultural standards.
C)unless the statute is clearly arbitrary or capricious.
D)if the statute discriminates on the basis of gender.
Q2) The Bill of Rights provides protection for corporations.
A)True
B)False
Q3) "Preemption" means that the federal regulatory scheme is controlling.
A)True
B)False
Q4) The due process clause:
A)allows the U.S. government to take private property without due process.
B)allows a state to take private property without due process.
C)provides a guarantee of protection against loss of rights or property without the chance to be heard.
D)does not apply to state governments.
6
To view all questions and flashcards with answers, click on the resource link above.
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) The attorney general of a state may bring a class action suit to recover damages for those injured by an antitrust violation which raised prices.
A)True
B)False
Q2) Governments may regulate prices but not credit terms.
A)True
B)False
Q3) The Robinson-Patman Act guarantees a seller the right to refuse to deal with anyone for any reason or purpose.
A)True
B)False
Q4) A manufacturer having a restriction on territories in the form of a sole outlet is a per se violation.
A)True B)False
Q5) Market power under the Sherman Act is defined by both geographic and product markets.
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) An agency hearing is generally not subject to the rules of evidence.
A)True
B)False
Q2) The ______can issue a(n) ______ to stop a practice that it decides is improper.This order is binding unless reversed on an appeal.
A)ALJ, cease-and-desist order
B)Court, monetary fine
C)FTC, cease-and-desist order.
D)FTC, appeal
Q3) When it comes to administrative agencies, courts:
A)regard agencies as able to perform their duties effectively.
B)accept rules that have been established by agencies using a rational basis.
C)do not substitute their own judgment in agency decisions.
D)All of these.
Q4) Under the Sunshine Act of 1976, called the open meeting law, the federal government requires most meetings of major administrative agencies to be open to the public.
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) If a person unlawfully gains access to a computer and fraudulently causes goods to be "lost" from their true destination, he might be guilty of _______.
A)circumventing logistics transfers.
B)computer raiding.
C)economic espionage by computer.
D)diverted delivery by computer.
Q2) Crimes are generally defined and their punishments specified by:
A)trial court judges.
B)appellate judges.
C)codes and statutes.
D)the United States Constitution.
Q3) Money __________ involves the knowing and willful participation in a financial transaction involving unlawful proceeds when the transaction is designed to conceal or disguise the source of the funds.
A)ironing
B)vacuuming
C)laundering
D)cooking
To view all questions and flashcards with answers, click on the resource link above.
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) Once the cause in fact is established, the plaintiff must establish ________, that is the harm by the injured person that was a foreseeable consequence of the defendant's negligent actions.
A)actual causation.
B)proximate causation.
C)but for causation.
D)the Palsgraf standard.
Q2) The tort of invasion of privacy requires the reasonable intrusion into one's private affairs.
A)True
B)False
Q3) The use of someone's car without that person's permission is a trespass to personal property.
A)True
B)False
Q4) If a crime does not hurt an identifiable person, it is not a tort.
A)True
B)False
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) A copyright bestows upon the creator of an artistic or literary work a federal statutory right to exclusively:
A)use the work.
B)reproduce the work.
C)display the work.
D)All of these
Q2) Which of the following is not an exclusive right of the holder of a copyright?
A)To prepare works that are derived from the original work.
B)To obtain a court order enjoining use of the original work by another.
C)To distribute copies of recordings of the original work.
D)To display or perform the original work in public.
Q3) The measure of damages for misappropriation of a trade secret is:
A)ten times the loss of revenues by the owner of the trade secret (punitive damages).
B)three times the loss of revenues by the owner of the trade secret (treble damages).
C)the loss of revenues by the owner of the trade secret.
D)the profits earned by the 'thief' derived from the misappropriation of the trade secret.
To view all questions and flashcards with answers, click on the resource link above.
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) "Know-how" secrets and processes are considered intellectual property rights, which are legally protectable.
A)True
B)False
Q2) A direct sale by an American firm to a customer abroad, with terms of payment commonly based on an irrevocable letter of credit, is an import sale.
A)True
B)False
Q3) The _______ is administered by ___________ to protect trademarks in the international community.
A)Madrid System, the WIPO, B)Berne Convention, the WIPO.
C)Madrid System, TRIPS.
D)Berne Convention, TRIPS.
Q4) The Securities and Exchange Commission (SEC) is not limited to litigation when a securities law enforcement investigation runs into secrecy or blocking laws.
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
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 never can be both executory and unilateral. A)True
B)False
Q2) An offer of a reward for the arrest and conviction of a criminal is an example of a:
A)unilateral contract.
B)bilateral contract.
C)quasi contract.
D)formal contract.
Q3) Negotiable instruments are examples of formal contracts.
A)True
B)False
Q4) An executed contract is an agreement that has been completely performed. A)True
B)False
Q5) A contract of record is also referred to as a(n): A)recognizance. B)reconnaissance.
C)recording contract.
D)implied contract.
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) An acceptance must be absolute and unconditional.
A)True
B)False
Q2) Advertisements that call for an act may be deemed to be a unilateral contract.
A)True
B)False
Q3) A counteroffer is a(n):
A)acceptance of the original offer.
B)rejection of the original offer.
C)acceptance of the original offer and an invitation to further negotiate.
D)a revocation of the original offer.
Q4) An output contract is too vague to be a legally-enforceable agreement.
A)True
B)False
Q5) Acceptance of an offer to form a unilateral contract need not be communicated to the offeror to be effective.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
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) In order for fraud liability to arise, the listener must actually rely on the false statement of fact.
A)True
B)False
Q2) A young stockbroker was rather overwhelmed by a flood of new clients.Assunta, one of his clients, had purchased XYZ Corp.stock through the broker at a price of $35 per share.The price had gone down to $29 by the time Assunta telephoned the broker.Assunta told the broker that she wanted to sell the stock if it went below $30 and inquired as to the price.The broker did not check the price, but thinking it could not have fallen below the $30 threshold, simply reassured Assunta that it was still "in the low 30s." Marta, Assunta's cousin, also had purchased XYZ stock at $35 per share and made a similar call to the broker and received the same response.Marta, however, coincidentally saw the price on a stock ticker tape when she hung up and realized the broker had made an error.Both Assunta and Marta held the stock and did not sell.?Later that same day, the stock price fell an additional $7 per share.Facing sizable losses, both Assunta and Martha decided to sue for fraud when Marta told Assunta of the broker's misstatement.Discuss the probable outcome of the lawsuits.
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) None of the following can be legal consideration except:
A)Refraining from beating one's spouse.
B)Promising to refrain from beating one's spouse.
C)Refraining from smoking cigarettes.
D)Refraining from using cocaine.
Q2) The promise of a creditor to refrain from debt collection in exchange for a promise by the debtor to modify the terms of the transaction is legally sufficient consideration.
A)True
B)False
Q3) In a composition of creditors, the various creditors of a single debtor mutually agree to accept a fractional part of their claims in full satisfaction of the claims.
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) An unlicensed doctor can sue a patient for the doctor's fee if the patient in fact recovered because of the doctor's care.
A)True
B)False
Q2) 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.
Q3) All of the following are types of contracts that might be unenforceable as contrary to public policy except:
A)a contract that is contrary to the protection of the public welfare, health, or safety
B)a contract that is contrary to the protection of the person
C)a contract that is contrary to the protection of recognized social institutions
D)a contract that does not harm the public good
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) The statute of frauds:
A)requires full disclosure in the case of consumer sales on credit.
B)requires a seller of real estate to obtain a broker's license.
C)specifies the punishment of perjury.
D)requires that a contract for the sale of land be evidenced by a writing.
Q2) To be enforceable under the statute of frauds, the note or memorandum must be signed by the party sought to be bound by the contract.
A)True
B)False
Q3) Because contracts are legally binding agreements, they must be in writing to be enforceable.
A)True
B)False
Q4) The provisions of a contract must be construed as a whole in such a way that every part is given effect.
A)True
B)False
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) Only parties who actually signed a contract may sue on it.
A)True
B)False
Q2) If there is a time limitation or any other restriction in a contract, a third-party beneficiary:
A)may ignore it.
B)may void it.
C)is bound thereby.
D)must consent to be bound thereby before it is effective.
Q3) The party making an assignment is called the:
A)assignee.
B)assignor.
C)obligor.
D)successor.
Q4) Generally, an assignment must be in writing and signed by both parties.
A)True
B)False
Q5) An assignment, if otherwise valid, takes effect the moment it is made.
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) All courts hold that when an agreement requires satisfaction of the other party regarding the acceptance of an act, a reasonable person standard is used.
A)True
B)False
Q2) A condition precedent must occur before a party to a contract has an obligation to perform.
A)True
B)False
Q3) A contract can be discharged by impossibility in all the following scenarios except:
A)destruction of subject matter in a sales contract.
B)performance under the contract becomes 25% more expensive due to currency fluctuations in construction contract.
C)when the law changes.
D)death of obligee in a personal services contract.
Q4) A person who substantially performs a contract is liable for damages to the other party.
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) When a party expressly declares before the time for performance arrives that the contract will not be performed, such a declaration is called an anticipatory repudiation.
A)True
B)False
Q2) A firm request for additional payment under an existing contract without refusal to perform until the additional payment is made is considered a repudiation of a contract.
A)True
B)False
Q3) __________ occurs when a party expressly declares that performance will not be made when required.
A)Anticipatory repudiation.
B)An injunction.
C)Restitution.
D)A waiver of breach.
Q4) A waiver of a breach may be either express or implied. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
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) Joe rents a unit at the local Stor-More storage complex and places a lock on the unit's door. Joe has created a bailment with Stor-More.
A)True
B)False
Q2) Joint tenancy and tenancy in common both feature the right of survivorship.
A)True
B)False
Q3) A bailee's interest in the bailed property can be characterized as:
A)ownership.
B)a fractional proprietary interest.
C)possession.
D)constructive ownership.
Q4) The intent to make a gift requires an intent to transfer title at that time. A)True
B)False
Q5) 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.
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) A contract carrier holds itself out as willing to furnish transportation for compensation without discrimination to all members of the public who apply.
A)True B)False
Q2) The rights of a holder of a duly negotiated warehouse receipt are extinguished by the warehouser's surrender of goods to the depositor.
A)True B)False
Q3) The hotelkeeper owes a duty as a bailee of personal property in a(n) _______ to
A)bailment for the benefit of the bailor, transient guests.
B)mutual benefit bailment, transient guests.
C)bailment for the benefit of the bailor, permanent boarders.
D)mutual benefit bailment, permanent boarders.
Q4) Warehouse receipts and bills of lading are both considered documents of title. A)True B)False
To view all questions and flashcards with answers, click on the resource link above.
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 CISG:
A)governs all contracts between parties in countries that have ratified it.
B)applies only to goods bought for personal, family or household uses.
C)applies to contracts in which the predominant part of the obligation is the supply of labor or other services.
D)None of these.
Q2) Janet Durham orally agreed to purchase certain computer hardware priced at $10,000 from Ted Stallings.The sale of the hardware also included a one-time setup service visit priced at $100.The total contract price amounted to $10,100.The computer hardware was delivered and set up, and Durham paid $10,100.Afterwards, Durham discovered that she could obtain the same goods and services from another seller for a total contract price of $9,100.She now seeks rescission of the contract, based on the fact that more than $500 in goods were involved in the sales transaction, that the contract between her and Stallings was subject to the statute of frauds as a result, and that the oral agreement between them was therefore unenforceable.Durham wants to return the computer hardware to Stallings, and receive reimbursement of $10,000 (She is willing to waive her claim to reimbursement for the $100 setup service visit.) Evaluate Durham's legal position in this matter.
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) "Without reserve" auctions give the auctioneer the right to withdraw the goods from the sale process if the bids are not high enough.
A)True
B)False
Q2) A buyer with a voidable title cannot pass on valid title to a subsequent good faith purchaser.
A)True
B)False
Q3) If shipped goods are damaged or destroyed after risk of loss passes:
A)the contract is avoided
B)the seller has breached the contract
C)the buyer has the option to accept or not accept the goods
D)it is the buyer's loss
Q4) Goods are identified when they have been selected as the goods called for by a sales contract.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
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) Which of the following statements made by the seller does not likely constitute an express warranty?
A)"This looks beautiful on you."
B)"This is 100 percent wool."
C)"This motor generates 100 horsepower."
D)"This is a 3.2 liter rotary engine."
Q2) Any warranty that does not provide the complete protection of a full warranty is called a warranty in breach.
A)True
B)False
Q3) The right to sue for damages sustained from a defective product is reserved exclusively to the original purchaser of the product.
A)True
B)False
Q4) Whenever a sale of goods is made, certain warranties are implied unless they are expressly excluded.
A)True
B)False
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) If adequate assurance of performance is not given within five (5) business days from the time of the demand for assurance, the demanding party may treat the contract as repudiated.
A)True
B)False
Q2) 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.
Q3) Good faith essentially means that neither party can do anything to impair the other party's expectation of performance.
A)True
B)False
Q4) A buyer always has a right to examine the goods to determine if, in fact, the goods conform to the contract.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
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) When a buyer has possession of goods after rightfully rejecting them, the buyer is treated:
A)the same as a seller in the possession of goods after default by a buyer.
B)as being strictly liable for the safety of the goods.
C)the same as if an entrustment had been created.
D)as an insurer of the goods until the seller retakes possession.
Q2) In the absence of a liquidated damages clause and a proof of greater damages, the seller's damages are computed as:
A)25% of the purchase price or $500, whichever is less.
B)25% of the purchase price or $500, whichever is greater.
C)20% of the purchase price or $500, whichever is greater.
D)20% of the purchase price or $500, whichever is less.
Q3) 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
Q4) Consumer protection law prohibits the waiver of defenses in consumer contracts.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 28
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) Bruce agrees to buy Joe's ranch.They draw up a note, under which Bruce is to pay Joe in three installments, each payable on a specified date.Joe has concerns about Bruce's ability to pay on time, so he insists that the note include an acceleration clause.Such a clause would allow Joe to:
A)accelerate the sale of the ranch.
B)demand payment of the entire amount Bruce owes him if a certain event occurs.
C)extend the date of maturity on the note until a certain date in the future.
D)accelerate the statute of limitations in a case involving negotiable instruments
Q2) If an instrument is nonnegotiable, the rights of the parties are governed by the general principles of contract law.
A)True
B)False
Q3) A person who becomes a party to an instrument to add strength to the instrument for the benefit of another party to the instrument is called a:
A)benefactor.
B)secondary obligor.
C)collateral obligor.
D)contingent beneficiary.
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) Indorsements may be classified in terms of whether the indorser has added any words to the indorsement and what those words are.
A)True
B)False
Q2) A payee whose name is misspelled may indorse with the wrong name, the correct name, or both.
A)True
B)False
Q3) Order paper is negotiated by the indorsement of the holder only.
A)True
B)False
Q4) Thomas, the holder of a check, presents it to the drawee bank for payment.If Thomas indorses the check, Thomas warrants that the account of the drawer in the drawee bank contains funds sufficient to cover the check.
A)True
B)False
Q5) An instrument may be transferred only by negotiation.
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) The FTC rule concerning holders in due course is confined to consumer credit transactions.
A)True
B)False
Q2) Instruments may be negotiated even if it is overdue.
A)True
B)False
Q3) A(n) __________ is an unauthorized change or completion of a negotiable instrument designed to modify the obligation of a party to the instrument.
A)alteration
B)modification
C)transformation
D)transmutation
Q4) A holder through a holder in due course:
A)has greater rights than a holder in due course.
B)has fewer rights than a holder in due course.
C)has the same rights as a holder in due course.
D)must meet the requirements for becoming a holder in due course in order to achieve holder in due course status.
To view all questions and flashcards with answers, click on
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) In a complex funds transfer, an intermediary bank may receive and transmit the payment order.
A)True
B)False
Q2) A debit transaction occurs when a person making a payment requests such payment be made to the beneficiary's bank.
A)True
B)False
Q3) 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.
Q4) A consumer who notifies the issuer of an EFT card within two (2) days after learning of a loss or theft of the card is limited to a maximum liability of:
A)$500.
B)$50.
C)There is no liability limitation in this situation.
D)There is no liability in this situation.
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) A surety is liable from the moment the principal is in default.
A)True
B)False
Q2) If the creditor does not enforce the suretyship agreement within the statute of limitations, the obligation is forever discharged.
A)True
B)False
Q3) Suretyship and guaranty transactions have the common feature of a promise to answer for the debt or default of another.
A)True
B)False
Q4) An absolute guaranty creates the same obligation as a suretyship.
A)True
B)False
Q5) An issuer in a letter of credit transaction has an obligation to assure that the goods sold by the seller in fact conform to the contract.
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) 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
Q2) A letter from a collection agency to a consumer that gives the impression a lawsuit is about to be brought against the consumer when in fact it will not be brought is not a violation of the Fair Debt Collection Practices Act.
A)True
B)False
Q3) A finance company may not reject an loan applicant on any of the grounds listed below, except:
A)the applicant is married.
B)the applicant is sixty-five or older.
C)the applicant is divorced.
D)the applicant is on a fixed income.
To view all questions and flashcards with answers, click on the resource link above.
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) In most states, __________ provides that a security interest in a non-inventory motor vehicle must be noted on the vehicle title registration.
A)a non-Code statute
B)UCC Article 2
C)UCC Article 9
D)judicial precedent
Q2) What is the purpose of a financing statement?
A)to meet UCC accounting requirements under Article 9
B)to create a security interest
C)to amend a security agreement
D)to alert third persons that a creditor has a security interest in the collateral described
Q3) All of the following are elements of a security agreement except: ______.
A)identification of the parties involved.
B)a reasonable description of the collateral.
C)demonstration that the parties intended for the creditor intends to have a security interest.
D)statement of the amount of the debt.
To view all questions and flashcards with answers, click on the resource link above.
35
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) Peter is employed as a shop electrician for ABC, Inc.Peter has a car being repaired and a home on which he is paying mortgage payments.Peter is contemplating filing for bankruptcy, but he is not sure which type of petition to file.Peter also wonders whether the auto repair costs and the mortgage payments are dischargeable.Which bankruptcy filing is most appropriate for Peter? Are Peter's debts dischargeable?
Q2) Costs and expenses of administration of the bankruptcy case, including trustee fees are paid before any money is disbursed to secured or unsecured creditors.
A)True
B)False
Q3) The holder of a claim that is the subject of a bona fide dispute may be counted as a petitioning creditor.
A)True
B)False
Q4) Under no circumstances may a reorganization plan include executory contracts or collective bargaining agreements.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
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) An application for insurance: ______.
A)may be oral.
B)generally is attached to the policy and becomes a part of the insurance contract.
C)must be prepared by an attorney.
D)has no binding effect on the applicant.
Q2) 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.
Q3) An insured person is generally allowed, by policy provision or statute, a grace period of what length of time in which to make the payment of a premium due on a life insurance policy?
A)14 to 15 days
B)30 to 31 days
C)60 to 61 days
D)90 days
To view all questions and flashcards with answers, click on the resource link above.
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) A general agent is authorized by the principal to do all acts that can be delegated lawfully to a representative.
A)True B)False
Q2) When an unauthorized act is ratified, the effect is the same as though the act had been originally authorized.
A)True B)False
Q3) The intention to ratify an unauthorized act may be expressed by words or conduct.
A)True
B)False
Q4) If the principal terminates the agency: ______.
A)the agent's authority to act for the principal is terminated automatically.
B)the right of the agent to bind the principal to third persons generally ends immediately.
C)the termination is not effective until notice is given to third parties.
D)the termination is not effective until the agent receives the notice.
To view all questions and flashcards with answers, click on the resource link above. Page 38
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) The rule of law imposing vicarious liability on an innocent employer for the wrong of an employee is known as the doctrine of respondeat superior.
A)True
B)False
Q2) If an agent commits a crime, the agent's liability will depend on the nature of the agency relationship.
A)True
B)False
Q3) Hiring an individual with a criminal record is conclusive proof that the employer is liable for the tort of negligent hiring.
A)True
B)False
Q4) The fact that a tort or crime is committed by an employee imposes vicarious liability on an employer.
A)True B)False
Q5) An agent is necessarily liable if the principal is undisclosed. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 39
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 FLSA, workers in all of the following groups may be legally paid less than minimum wage except for: ______.
A)Full time college students.
B)Individuals with impaired productive capacity due to mental disability
C)Domestic service workers.
D)Workers at firms engaged in interstate commerce.
Q2) To be eligible for FMLA leave, an employee must have been employed by a covered employer for at least __________ months and have worked at least __________ hours during the 12-month period preceding the leave.
A)6; 1,250
B)6; 1,500
C)12; 1,250
D)12; 1,500
Q3) The sole issue addressed in the Fair Labor Standards Act is child labor.
A)True
B)False
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) Title VII protects members of which racial grouping(s)?
A)black only
B)black, Native American, and Asian-Pacific
C)white only
D)all racial groupings
Q2) 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.
Q3) The ADA does not require employers to make any accommodations for individuals with disabilities.
A)True B)False
Q4) Title VII permits the EEOC to sue employers directly when it has reasonable cause to believe that intentional discrimination was the defendant employer's "standard operating procedure."
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 41