Business law exam

1. A check that a bank draws on its own funds and is signed by a responsible bank official but may be used by anyone to pay a debt is called: a. A voucher check b. A certified check c. A cashier's check d. A bank draft

A Cashiers Check

1. A court of original general jurisdiction is

A Trial court

1. Property rights consisting merely of evidence of ownership of property, such as copyrights, checks, notes and stocks are a. Real Property b. Mixed Property c. Intangible Personal property d. Tangible Personal property

Intangible Personal property

1. A newspaper advertisement can be an offer if it shows a. Intent b. The Price c. Markup d. Mutual Agreement

Intent

1. Failure to perform with the ability and care normally exercised by people in the profession is known as:

Malpractice

1. The expression of an offer to contract on certain terms by one person to another person is an indication of acceptance of those terms is which of the following elements of a contract? a. Mutual agreement b. Mutual Consideration c. Capacity d. Legality

Mutual consideration

1. A writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit is known as a (an): a. Promissory note b. Negotiable instrument c. Check d. Order instrument

Negotiable instrument

Laws enacted by legislative bodies

Statutes

1. A charge against another's property as security for a debt or claim is: a. An obligation b. A debt c. An easement d. A lien

a lien

1. The term which means a fact that could alter one's decision to enter into a legal contract is: a. A illegal fact b. A usurious fact c. A material fact d. A fraudulent fact

a material fact

1. A relationship of trust and confidence, such as that which exists between partners in a. Duress b. Fiduciary c. Usury d. Novation

b. Fiduciary

1. During the process of dressing the deceased, the funeral practitioner spilled bleach on the items that was to be returned to the family. Who is responsible? a. The promisor b. The endorser c. The Bailee d. The offeree

bailee

1. Customs which have come to be recognized by the courts as law describes: a. Criminal law b. Case law c. Common law d. Constitutional law

common law

1. The major source of mortuary law is: a. Cannon law b. Common law c. Church law d. Civil law

common law

1. Common law is best described as" a. Customs and practices enforced by the courts b. Rules established in the constitution c. Statues, rules, and regulations d. Rules of common business transactions

customs and practices enforced by the court

1. The right a minor has to avoid a contract is termed: a. Ratification b. Disaffirmation c. Abatement d. Denial

disaffirmation

1. The method of removing one's free will in making a decision by threats to do physical harm to the person, his family, or property is known as: a. Fraud b. Duress c. Bailment d. Misrepresentation

duress

1. The crimes that carry the most severe penalties are called: a. Punitive b. Felonies c. Misdemeanors d. Infractions

felonies

1. An agent owes which of the following duties to his principal? a. Reimbursement b. Loyalty and good faith c. Compensation d. Indemnification

loyalty and good faith

1. All physical items that are not real property are classified as: a. Perpetual property b. Personal property c. General property d. Short-term property

personal property

1. You receive an offer in the mail containing no stipulations as to the acceptance, and you return your acceptance by mail. The agreement is complete when the acceptance is: a. Received by the offeree b. Placed in the mail by the offeree c. Received by the offeror d. Never complete, must be an oral acceptance

placed in the mail by offeree

1. A business owned by one person. a. Sole proprietorship b. Limited liability corporation c. Silent Partner An employer

sole propietorship

1. The ______ states that agreements that cannot be fulfilled in one year must be in writing and enforceable. a. Small Claims Act b. Statute of Limitations c. Statute of Frauds d. Sherman Antitrust Act

statute of frauds

1. A private or civil wrongdoing where the cause is intentional, or caused by negligence for which there may be action or damages is called a/an: a. Fraud b. Tort c. Negligence d. Option

tort

1. Partnership engaged in the buying and selling of merchandise is a (n): a. Unlimited partnership b. Limited partnership c. Trading partnership d. Non-trading partnership

trading partnership

1. A contract is a legally enforceable agreement between: a. Two minors b. Two or more legally competent persons c. Two persons of legal age d. A minor and an adult to perform a legal act

two or more legally competent persons

1. At the conclusion of an arrangements conference, the funeral practitioner was unable to get a written signature of the next of kin in the funeral contract. The total dollar amount of the merchandise is $7,995. The contract is ____. a. Voidable b. Void c. Unenforceable d. Valid

unenforeable

1. A contract based on mutual agreement, parties who are competent, supported by consideration for a lawful purpose is said to be _____. a. Voidable b. Void c. Unenforceable d. Valid

valid

1. Requirements for a valid offer must include: 1. Definite time 2. Acceptance 3. Definite intent 4. Seriously intended A. 1,3, and 4 B. 1,2, and 3 C. All of these D. 2,3, and 4

A

1. An individual who brings together contracting parties is called a. An Agent b. A Broker c. A Bailor d. A Principle

A Broker

1. A form of business organization in which an entity that has a distinct existence separate and apart from the existence of its individual members who are called stockholders is a ________.

Corporation

1. When parties indicate that they have a mutual agreement so clearly by their conduct and what they intended to do that there is no need to express the agreement in words to make it binding there is an _______. a. Executed contract b. Actual contract c. Implied contract d. Expressed contract

Implied Contract

13. A sale is different from a contract to sell in that in a sale: a. There is no difference between the two b. The merchandise is transferred at a future date c. The title and the item are transferred upon completion of the transaction d. The title is transferred at a future date

The title and the item are transferred upon completion of the transaction

1. The doctrine of stare decisis is concerned with: a. Criminals b. Torts c. Civil d. Case law

case law

1. A principle owes which of the following duties to the agent" a. Accounting b. Obedience c. Loyalty and good faith d. Compensation

compensation

1. An award paid to the injured party to cover the exact amount of their loss, but no more. a. Punitive damages b. Liquidated damages c. Compensatory damages d. Nominal damages

compensatory charges

1. The person against whom legal action is brought. a. Judge b. Plaintiff (petitioner) c. Police d. Defendant (respondent)

defendant (Respondent)

1. The termination of a contract by performance, agreement, impossibility, acceptance by the operation of law is termed _____. a. Executed b. Executory c. Deletion d. Discharge

discharge

1. Contract in which the terms have not been fully performed by all the parties is said to be: a. Void b. Voidable c. Executed d. Executory

executory

1. Goods of homogeneous nature which are sold by weight or measure are known as: a. Identified goods b. Existing goods c. Future goods d. Fungible goods

fungible goods

1. A contract made by a legally declared insane person is: a. Illegal b. Voidable c. Unenforceable d. Void

void

1. A consensual relationship created by contract or by law where one party, the principal, grants, and authority for another party, the agent, to act on behalf of and under the control of the principal to deal with a third party. a. Mutual agreement b. Contract employment c. Limited partnership d. Agency

Agency

1. The _____ is appointed by the _____ to enter into contracts with third parties. a. Endorser, maker b. Agent, customer c. General contractor, general partner d. Agent, principle

Agent, Principle

1. The failure of one of the parties to perform the obligations assumed under the contracts is called: a. Unenforceable contracts b. Breach of contract c. Expressed contract d. Voidable contract

B. Breach of Contract

1. Almost all contracts with minors are ______ at the minor's option. a. Breached b. Voidable c. Valid d. Void

B. Voidable

1. The family member that brings the clothing, glasses, and jewelry of the deceased to the funeral home that are to be returned after the service is termed:

Bailor

1. The rights to declare dividends depends upon the discretion of the a. Promotor b. Shareholders c. Board of directors d. Stockholders

C. Board of directors

1. The spouse of a deceased male promises to pay $1, 295.00 to ABC Funeral Home in return for the promise of ABC Funeral Home to cremate her husband. This is an example of _____. a. Consideration b. A formal contract c. Capacity d. Lawful purpose

Consideration

1. Endorsements of commercial paper include which of the following? 1. Warranted endorsement 2. Blank endorsement 3. Qualified endorsement 4. Restrictive endorsement a. 1,3, and 4 b. 1,2, and 3 c. 2,3, and 4 d. 1,2, and 4

C

1. A funeral director that is authorized to carry out all the funeral home owner's business of a particular kind or at a particular place is a/an _____ agent. a. General b. Authorized c. Apparent d. Special

General