Business law test 3

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A holder in due course is a holder who takes a negotiable instrument ___________________. A. free of all claims and most defenses that can be asserted against the transferor B. subject to some of the claims and none of the defenses that can be asserted against the transferor C. subject to all the claims and defenses that can be asserted against the transferor D. free of all claims and defenses that can be asserted against the transferor E. subject to all the claims and some of the defenses that can be asserted against the transferor

A holder owes a duty not to ______________________ when seeking recourse against the liable parties or the collateral. A. impair the rights of others B. create a transfer warranty C. assert a universal defense D. create a presentment warranty E. indorse the check

A termination of agency where a situation arises that makes the fulfillment of the agency not possible is known as a termination ________. A. by impossibility of performance B. by changed circumstances C. by operation of law D. by the third party involved in the transaction E. by an act of the parties

A type of agency that is formed when an agent does not have an express power but one can be inferred is best known as ________. A. implied agency B. exclusive agency C. agency by ratification D. express agency E. apparent agency

A(n) _______________is the signature of a signer that is placed on the instrument to negotiation it to another person. A. indorsement B. assignment C. virgule D. negotiation E. allonge

All of the following are types of indorsements EXCEPT? A. retroactive B. restrictive C. blank D. special E. qualified

An agency that occurs when a principal and an agent do not expressly create an agency, but it is inferred from the conduct of the parties, is called ________. A. implied agency B. express agency C. agency by ratification D. apparent agency E. exclusive agency

An instrument that is not payable to a specific payee or indorsee is _____ paper. A. bearer B. non-negotiable C. secured D. order E. non-transferable

A _________________ is a two-party negotiable instrument that is an unconditional written promise by one party to pay money to another party. A. promissory note B. check C. trade acceptance D. nonnegotiable contract E. certificate of deposit

A ___________________ is a draft payable at a designated future date, while a ____________________ is a draft payable on sight. A. time draft; sight draft B. demand draft; future draft C. sight draft; time draft D. future draft; trade acceptance E. trade acceptance; sight draft

A state's law prohibits the sale of marijuana. Jerry signs a promissory note promising to pay Gordon $500 for marijuana and Gordon negotiates this instrument to Matthew, a holder in due course. When Matthew presents this note to Jerry, Jerry can raise which of the following defenses? A. illegality B. fraud in the inducement C. breach of contract D. mental illness which makes a contract voidable E. undue influence

A stop-payment order is an order by a ______ of a check. A. drawer B. payer C. payee D. bank E. drawee

Before a strike, a union must give _____-day notice to the employer that the union intends to strike. A. 60 B. 45 C. 30 D. 7 E. 10

Gender discrimination is also known as _____ discrimination. A. sex B. sexual identity C. sexual orientation D. professional appearance E. personal appearance

If a contract indicates that the agency agreement terminates on July 27, 2020, it is terminated ________. A. by an act of the parties B. by operation of law C. by impossibility of performance D. by the third party involved in the transaction E. by changed circumstances

If an agent acquires confidential information during the course of the agency and uses it to his or her advantage, this is known as ________. A. misuse of confidential information B. competing with the principal C. usurping an opportunity D. self-dealing E. dual agency

In R. Williams Construction Company v. Occupational Safety and Health Review Commission, the court held that the construction company ________. A. had violated OSHA knowingly and knew its employees would be subject to hazards B. had no actual knowledge that its employees had entered the trench on that day C. did not violate OSHA D. could not know that its employees would enter the trench on that day E. violated OSHA accidentally

Outsiders who are employed by principals to perform certain tasks on their behalf are called ________. A. independent contractors B. principals C. agents D. employees E. employers

Section _____ of the _____ prohibits unions from engaging in unfair labor practices that interfere with a union election. A. 8(b); NLRA B. 7(a); FLSA C. 8(b); Landrum-Griffin Act D. 8(a); Landrum-Griffin Act E. 7(b); FLSA

Standards that establish safety requirements for safety guards on saws, set maximum exposure levels for hazardous chemicals, and regulate the location of machinery in the workplace are known as _____ standards. A. OSHA B. ADA C. FLSA D. FMLA E. FTCA

Suppose Mary owes Hector $1,000. Hector wants Mary to pay the money to Cindy instead of to him. Hector writes out a draft that orders Mary to pay the $1,000 to Cindy. Mary agrees to this change of obligation and writes the word "accepted" on the draft and signs the draft. Hector is the _____, Mary is the _____ and acceptor of the draft, and Cindy is the _____. A. drawer; drawee; payee B. drawer; payee; drawee C. payee; drawer; drawee D. payee; drawee; drawer E. drawee; drawer; payee

Suppose a principal hires a lawyer to represent her in a lawsuit until the lawsuit is resolved. If the principal and the lawyer voluntarily agree to terminate the relationship prior to the resolution of the case by trial or settlement, the agency is _____. A. terminated by an act of the parties B. not terminated, since the lawsuit remains unresolved C. terminated by an unusual change in circumstances D. terminated by operation of law E. terminated by impossibility of performance

There are three methods of _______________: (1) payment of the instrument, (2) cancellation, and (3) impairment of the right of recourse. A. discharge B. primary liability C. secondary liability D. guarantee of collection liability E. accommodation liability

The Landrum-Griffin Act is also known as the ________. A. Labor Management Reporting and Disclosure Act B. National Labor Relations Act C. Labor Management Relations Act D. Railway Labor Act E. Norris-LaGuardia Ac

The _____ HDC rule _____ HDC status with regard to negotiable instruments arising out of certain consumer credit transactions. A. FTC; eliminates B. FCC; recognizes C. FTC; recognizes D. FCC; eliminates E. UCC; recognizes

The _____ is empowered to enforce the FLSA. A. U.S. Department of Labor B. Uniform Commerce Commission C. Federal Trade Commission D. Interstate Commerce Commission E. Fair Labor Standards Board

The ________ type of visa allows the holder to bring his or her immediate family members to the United States. A. H1-B B. FICA C. I-9 D. H4 E. FUTA

To qualify as a(n) ____________________, a transferee must have taken the instrument for value, in good faith, and without notice that it is defective or overdue. A. holder in due course B. indorser C. indorsee D. unqualified indorser E. holder

Under the ADA, an employer is not obligated to provide an accommodation that would _____. A. impose an undue hardship on the employer B. necessitate an employee's absence from work C. necessitate changes to the work environment D. require expense E. require managerial oversight

Under the UCC, in order to be a holder in due course, value has been given if the holder did any of the following EXCEPT? A. performed a pre-existing duty B. taken the instrument in payment of or as security for an antecedent claim C. acquired a security interest or lien on the instrument D. performed an agreed-upon promise E. given a negotiable instrument or an irrevocable obligation as payment

Under the UCC, only _____________ defenses can be asserted against a holder in due course. A. universal B. virgule C. qualified indorsement D. allonge E. personal

Under workers' compensation laws, an injured employee files a claim with the ________. A. appropriate state agency B. Equal Employment Opportunity Commission C. local police department D. local courthouse E. federal government

Wages are ________. A. a compulsory collective bargaining topic B. an illegal collective bargaining topic C. a closed shop rule D. a permissive collective bargaining topic E. a union shop rule

What is a two-party negotiable instrument that is a special form of a note created when a depositor deposits money at a financial institution in exchange for the institution's promise to pay back the amount of the deposit plus an agreed-upon rate of interest upon the expiration of a set time period agreed upon by the parties? A. certificate of deposit (CD) B. trade acceptance C. time note D. promissory note E. check

What is the rule adopted by the Federal Trade Commission that eliminates holder in due course status with regard to negotiable instruments that arise out of certain consumer credit transactions? A. FTC HDC Rule B. discharge in bankruptcy C. imposter rule D. fraud in the inducement rule E. holder in due course rule

What is the type of check on which the bank is considered as both drawer and drawee? A. cashier's check B. certified check C. postdated check D. stale check E. incomplete check

When an agent exceeds the scope of his or her authority, who is liable to the third party? A. the agent only B. the government only C. neither the principal nor the agent D. both the principal and the agent E. the principal only

When an employer refuses to hire a cook in a restaurant because of his or her accent, this is ________. A. national origin discrimination B. race discrimination C. religious discrimination D. color discrimination E. gender discrimination

Which article of the UCC governs commercial electronic wire transfers? A. Article 4A B. Article 2 C. Article 2A D. Article 5 E. Article 3

Which of the following is NOT a right under the Landrum-Griffin Act? A. working for wages below union scale B. right of free speech C. voting in elections D. initiating judicial action E. nominating a candidate for union office

Which of the following is NOT part of the complainant's burden of proof in a disparate-treatment discrimination case? A. the complainant is the victim of a racially neutral employment practice or rule that caused an adverse impact on a protected class to which the complainant belongs B. the complainant is a member of a Title VII protected class C. the complainant applied for and was qualified for the employment position D. the employer kept the position open and sought applications from other persons with the complainant's qualifications E. the complainant was rejected for the employment position despite the fact that he or she applied for and was qualified for the position

Which of the following is a correct statement regarding an employer's response to employee attempts to form and join a union? A. Threats of loss of benefits for joining the union are unfair labor practices. B. An employer may form a company union. C. When an unfair labor practice has been found, a court may set aside the election and order a new election. D. When an unfair labor practice has been found, the NLRB may issue a cease-and-desist order to restrain the practice. E. A statement such as "I'll close this plant if a union comes in here" is a fair labor practice.

Which of the following is an INCORRECT statement regarding presentment warranties? A. According to the Uniform Commercial Code (UCC), a presentment equates to a transfer; therefore, presentment warranties and transfer warranties are identical. B. A drawee who pays an instrument may recover damages for breach of presentment warranty from the warrantor. C. Any person who presents a draft or check for payment or acceptance warrants that the instrument has not been materially altered. D. Any person who presents a draft or check for payment or acceptance warrants that the presenter has good title to the instrument or is authorized to obtain payment or acceptance of the person who has good title. E. Any person who presents a draft or check for payment or acceptance warrants that the presenter has no knowledge that the signature of the maker or drawer is unauthorized.

Which of the following is an INCORRECT statement regarding the Family and Medical Leave Act (FMLA)? A. The FMLA applies to companies with 3 or more workers. B. The employer may require medical proof of claimed serious health conditions. C. Leave because of the birth of a child cannot be taken intermittently unless the employer agrees to such an arrangement. D. The FMLA covers approximately one-half of the nation's workforce. E. An eligible employee who takes leave must, on returning to work, be restored to either the same or an equivalent position with equivalent employment benefits and pay.

Which of the following is an INCORRECT statement regarding the transfer of a negotiable instrument by negotiation? A. According to the Uniform Commercial Code (UCC), the holder of a negotiable instrument cannot enjoy the same rights as the transferor. B. The proper method of negotiation depends on whether the instrument involved is order paper or bearer paper. C. The holder may acquire even greater rights than the transferor if he or she qualifies as a holder in due course. D. The holder receives at least the rights of the transferor. E. The person to whom the instrument is transferred becomes the holder.

Which of the following is an INCORRECT statement regarding workers' compensation? A. States usually require employers to self-insure for workers' compensation claims. B. For an injury to be compensable under workers' compensation, the claimant must prove that he or she was harmed by an employment-related injury. C. Workers can sue an employer in court to recover damages for employment-related injuries if the employer does not carry workers' compensation insurance or does not self-insure if permitted to do so. D. Workers' compensation is an exclusive remedy. E. In addition to covering physical injuries, workers' compensation insurance covers stress and mental illness that are employment-related.

Which of the following is prohibited under the Landrum-Griffin Act? A. engaging in an unauthorized activity that has an adverse economic impact on the union B. nominating a candidate for union office C. initiating judicial action D. voting in elections E. right of free speech

Which type of agency exists when there is a written agency agreement between the parties? A. express agency B. exclusive agency C. apparent agency D. implied agency E. agency by ratification

Who is liable for the injury caused by inherently dangerous activities that a principal assigns to an independent contractor? A. the principal only B. the independent contractor, if a minor is injured C. both the principal and the independent contractor D. the independent contractor only E. neither the principal nor the independent contractor

A(n) _____ is a person who is in possession of a negotiable instrument that is drawn, issued, or indorsed to him or to his order, or to bearer, or in blank. A. holder B. acceptor C. holder in due course D. maker E. drawer

A(n) ___________ is a person who is in possession of a negotiable instrument that is drawn, issued, or indorsed to him or his order, or to bearer, or in blank. A. holder B. indorsee C. holder in due course D. unqualified indorser E. indorser

A check that has been outstanding for six months is considered a(n) _____ check. A. incomplete B. stale C. cashier's D. postdated E. certified

A party who employs another person to act on his or her behalf is called a(n) _____, while a party who agrees to act on behalf of another is called a(n) _____. A. assignee; assignor B. principal; agent C. agent; principal D. delegatee; delegator E. assignor; assignee

A party who employs another person to act on his or her behalf is called a(n) __________. A. agent B. principal C. third party D. employee E. contractor

A party who signs an instrument for the purpose of lending his or her name (and credit) to another party to the instrument is known as a(n) A. unqualified indorser B. accommodation party C. principal D. qualified indorser E. indorser

A principal is liable for an agent's actions _________________. A. when an agent commits an intentional tort outside the scope of his or her authority B. when the agent is negligent when acting within the scope of his or her authority C. under the "coming and going" rule D. when an agent is on a frolic and detour E. under no circumstances

A principal is liable under the doctrine of vicarious liability for intentional torts of agents and employees committed within the agent's scope of employment. The _________ tests are the two tests applied by courts to determine whether an agent's intentional torts were committed within the agent's scope of employment. A. negligence and intentional B. motivation and work-related C. fully and partially D. frolic and detour E. coming and going

An instrument that states "payable to cash" is _____. A. non-negotiable B. payable to bearer C. payable to drawer D. payable to order E. payable to acceptor

Apparent agency, or agency by _____, arises when a principal creates the appearance of an agency that in actuality does not exist. A. accord and satisfaction B. estoppel C. execution D. ratification E. rebuttal

If Anastasia indorsed her check by writing "without recourse" above her signature, what type of indorsement would be created? A. special B. qualified C. restrictive D. nonrestrictive E. blank

If a principal files for bankruptcy, the agency is terminated ________. A. by the third party involved in the transaction B. by operation of law C. by an act of the parties D. by changed circumstances E. by impossibility of performance

If an agent is offered a business opportunity that is meant for the principal and the agent takes advantage of it, this is known as ________. A. self-dealing B. usurping an opportunity C. dual agency D. competing with the principal E. misuse of confidential information

If a light-skinned member of a race refuses to hire a dark-skinned member of the same race, this constitutes _____ discrimination, in violation of Title VII. A. personal appearance B. color C. divergent-impact D. race E. national origin

Independent contractors usually ________. A. use the principal's tools B. work for a number of clients C. use the principal's administrative staff D. go to the principal's offices E. are controlled by the principal

It is NOT illegal for employees to strike ________. A. while occupying the employer's premises B. after the majority of the employees vote to strike C. during only part of the day D. during the 60-day cooling off period E. during a no-strike period

Negotiation is the transfer of a negotiable instrument by a person other than the _____. A. holder in due course B. issuer C. holder D. payee E. indorsee

Principal and third party are not bound to the contract unless the principal ratifies the contract in which type of agency? A. apparent agency B. agency by ratification C. exclusive agency D. implied agency E. express agency

Suppose Elliot draws a check on his checking account at City Bank "payable to the order of Phyllis Jones." When Phyllis presents the check for payment, City Bank refuses to pay it. Phyllis can collect the amount of the check from Elliot because Elliot, the _____, is _____ liable on the check when it is dishonored. A. drawee; secondarily B. drawer; secondarily C. payee; primarily D. maker; secondarily E. maker; primarily

Suppose a professor is covered by her university's workers' compensation insurance. While teaching her class, the professor is injured when she trips over a power cord that was lying on the floor in the classroom. In this case, _____. A. the professor's sole remedy is to bring a claim against the university before the Occupational Safety and Health Administration (OSHA) B. the professor's sole remedy is to recover workers' compensation C. the professor's sole remedy is to sue the university in civil court for strict liability D. the professor can both recover workers' compensation and sue the university in civil court for negligence E. the professor's sole remedy is to sue the university in civil court for negligence

Suppose that Harold Green draws a check "pay to the order of Victoria Rudd" and delivers the check to Victoria. Victoria indorses the check in blank by writing her signature "Victoria Rudd" on the back of the check. Victoria's signature is a _____ indorsement. A. primary B. blank C. special D. restrictive E. qualified

Suppose that an employer has a rule that all applicants for an executive position must be at least 5 feet 8 inches tall. Which of the following is a correct statement regarding the legality of this requirement? A. It is disparate-treatment sex discrimination, in violation of Title VII of the Civil Rights of 1964. B. It is disparate-impact sex discrimination, in violation of Title VII of the Civil Rights Act of 1964. C. It is a bona fide occupational qualification (BFOQ), and therefore legal. D. It is disparate-impact personal appearance discrimination, in violation of Title VII of the Civil Rights Act of 1964. E. It is disparate-treatment sex discrimination, in violation of Title VII of the Civil Rights Act of 1964.

The Restatement (Second) of Agency defines agency as a(n) _____ relationship "which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control, and consent by the other so to act." A. intended beneficiary B. fiduciary C. independent contractor D. third-party beneficiary E. employment

The general duty standard under the Occupational Safety and Health Act (OSHA) ________. A. contains rules applicable to safe equipment B. is to provide a work environment free of recognized hazards even if there is no specific regulation in place addressing the situation C. contains rules applicable to dangerous industries D. contains rules applicable to safety procedures E. is to provide a work environment free of all hazards

The large body of common law that governs situations where one person allows another to act of their behalf is known as ________ law. A. employee B. agency C. contract D. tort E. principal

Title VII of the Civil Rights Act of 1964 was enacted primarily to prohibit employment discrimination based on a person's __________. A. national origin and gender B. race and color C. sexual orientation and personal appearance D. gender and sexual orientation E. race and gender

Under a union shop agreement ________. A. no unions may be formed at the employer's premises B. an employer may hire anyone as long as he or she joins the union C. an employer may form a union and require its employees to join it D. an employer may only hire someone who is a member of a union E. an employer may hire anyone whether or not he or she joins the union

What type of indorsement is created if Anastasia Houser indorses her check by writing "pay to Ekaterina Sokova" above her signature? A. nonrestrictive B. special C. qualified D. blank E. restrictive

When an agent runs personal errands while on the job, this is known as __________, which would release the principal from liability. A. negligence B. frolic and detour C. the "coming and going" rule D. misrepresentation E. an intentional tort

When an employer refuses to hire a cook in a restaurant because she belongs to the National Organization for Women, this is ________. A. national origin discrimination B. gender discrimination C. color discrimination D. religious discrimination E. race discrimination

When an employer treats married women differently than other employees, this is ________. A. not discrimination because only males can file these actions B. sex-plus discrimination C. hostile work environment D. quid pro quo discrimination E. religious discrimination

Which of the following are excluded from Title VII coverage? A. employers with 15 or more employees B. tax-exempt private clubs C. state and local governments D. employment agencies E. labor unions with 15 or more members

Which of the following is NOT a recognized right of employees? A. to join together to form a union B. to disparage the employer and/or the employer's product(s) C. to self-organize D. to bargain collectively through representatives of their own choosing E. to engage in concerted activities for the purpose of collective bargaining

Which of the following is NOT a universal defense? A. mental incapacity B. undue influence C. forgery D. illegality E. minority

Which of the following is NOT an unfair employment practice? A. threatening to close the plant if the employees form a union B. passing a dress code allowing only one pro-union button on an employee's outfit C. threatening a loss of employment benefits if employees form a union D. interfering with an employee's ability to form a union E. physically threatening an employee who desires to form a union

Which of the following is a correct statement regarding the check collection process? A. Banks in the collection process that are not the depository or payer bank are called transitory banks. B. The depository bank must present a check to the payer bank for collection. C. The Federal Reserve System may not be used in the collection of a check. D. A bank cannot have more than one role during the check collection process. E. Depository banks are called intermediary banks.

Which of the following is an INCORRECT statement regarding gender discrimination? A. A manager who refuses to promote a female unless she engages in sexual activities with him violates Title VII. B. An employer who discriminates against married women or women with children, but who does not discriminate against females in general, does not violate Title VII. C. Title VII's prohibition against sex discrimination applies equally to men and women. D. An employer who refuses to promote a qualified female to a management position because of her gender violates Title VII. E. An employer violates Title VII if it discriminates against female job applicants or employees who belong to the National Organization for Women (NOW).

Which of the following is an INCORRECT statement regarding the Electronic Fund Transfer Act? A. The Federal Reserve Board adopted Regulation E to further interpret the Act. B. The United States Congress enacted the Act to regulate non-consumer electronic funds transfers. C. Pursuant to the Electronic Funds Transfer Act and Regulation E, other than for a telephone transaction, a bank must provide a customer with a written receipt of a transaction made through a computer terminal or electronic device. D. Pursuant to the Electronic Funds Transfer Act and Regulation E, a bank must provide a monthly statement to an electronic funds transfer customer at the end of the month in which the customer conducts a transaction. E. Pursuant to the Electronic Funds Transfer Act and Regulation E, a bank can send unsolicited EFTS debit cards to a consumer only if the cards are not valid for use.

Which of the following is an INCORRECT statement regarding the H-1B foreign guest worker visa? A. The duration of stay for a worker on an H-1B visa is three years. B. The number of H-1B visas are unlimited. C. H-1B visa holders are allowed to bring their immediate family members to the United States under the H4 visa category as dependents. D. An H4 visa holder is not eligible to work in the United States. E. Workers from India make up more than 25 percent of all workers employed under H-1B visas.

Which of the following is the most common form of agency? A. implied B. express C. equitable D. symbolic E. quasi-

Which of the following makes it an unfair labor practice for an employer to interfere with an employee who wishes to form or join a union? A. Labor Management Reporting and Disclosure Act B. National Labor Relations Act section 8(a) C. Labor Management Relations Act D. National Labor Relations Act section 8(b) E. National Labor Relations Act section 7

Which of the following statements about certified checks is true? A. The drawer can stop payment on a certified check. B. A check becomes certified when a bank writes or stamps the word certified on an ordinary check. C. The bank pays for a certified check with bank funds. D. A bank is obligated to certify a check. E. A certified check can become stale.

Which of the following statements about the Federal Labor Standards Act is true? A. The Department of Labor requires that students and apprentices be paid minimum wage. B. Managerial, administrative, and professional employees are exempt from minimum wages laws. C. An employer may not reduce wages by the reasonable cost of food and lodging provided by the employer. D. Employers may pay wait staff $2.13 an hour regardless of tips. E. Minimum wage applies to all employees in the United States.

Which of the following is/are the function(s) of a negotiable instrument? A. record-keeping device only B. substitute for money, credit device, and record-keeping device C. substitute for money only D. creator of conditions for the payment of money E. credit device only

Who is liable if an independent contractor enters into a contract without authority from the principal? A. the principal only B. the independent contractor only C. both the principal and the independent contractor D. neither the principal nor the independent contractor E. the government only

Workers who choose to return to work before a strike is over are known as ________. A. sit-down strikers B. crossover workers C. partial strikers D. wildcats E. replacement workers

Workers who do not have permission from the union to strike are known as ________. A. crossover workers B. wildcats C. replacement workers D. sit-down strikers E. partial strikers

____________________ is designed to eliminate many past abuses in the banking system. A. The Federal Reserve System B. The Dodd-Frank Wall Street Reform and Consumer Protection Act C. Regulation E D. The Bank Secrecy Act E. The Electronic Funds Transfer Act

_____ wire transfers are also known as wholesale wire transfers. A. Negotiable B. Commercial C. Non-negotiable D. Retail E. Marketing intermediary

A bearer paper is negotiated by ________. A. special indorsement only B. indorsement only C. delivery only D. both delivery and indorsement E. qualified indorsement only

A firm must pay time and one half overtime pay to ________. A. a nonexempt employee beginning the second week he or she works more than 40 hours in a week B. any employee who works more than 40 hours in one week C. each week a nonexempt employee works more than 40 hours in a week D. a nonexempt employee who works more than 40 but less than 50 hours a week E. any exempt employees who work more than 40 hours per week

A holder in due course is a holder who takes a negotiable instrument for value, in good faith, and without notice that it is _________. A. negotiable or non-negotiable B. express or implied C. defective or overdue D. primary or secondary E. a check or a promissory note

A negotiable instrument must state a fixed amount of money. Which of the following would meet this requirement? A. gold B. silver C. U.S. dollar D. legal services E. $20 and a hair cut

A principal is liable for an agent's ________. A. when an agent is on a frolic and detour B. under no circumstances C. intentional and innocent misrepresentations made within the scope of his or her authority D. under the "coming and going" rule E. when an agent commits an intentional tort outside the scope of his or her authority

A real estate agent who is employed to purchase real estate for a principal cannot secretly sell his or her own property to the principal. This is because agents are generally prohibited from undisclosed _____ with the principal. A. identification B. contracting C. self-dealing D. ratification E. self-actualization

An agency contract can be terminated in all of the following ways EXCEPT? A. by an act of the parties B. by operation of law C. by the third party involved in the transaction D. by changed circumstances E. by impossibility of performance

An instrument that states "payable to IBM" is _____. A. a promissory note B. payable to order C. non-negotiable D. payable to acceptor E. payable to bearer

Article _____ of the _____ establishes rules for the creation of, transfer of, enforcement of, and liability on negotiable instruments. A. 2; Interstate Commerce Code B. 3; Uniform Contracts Code C. 3; Uniform Commercial Code D. 2(A); Uniform Contracts Code E. 2; Interstate Commerce Code

A _____ indorsement would be created if Betsy McKenny indorsed her check and then wrote "pay to Dan Jones" above her signature. A. qualified B. restrictive C. special D. primary E. blank

A principal, Nigel Jones, and an agent, Marcia McKee, agree that the agent will represent the principal to purchase a business and that the agent will disclose the existence of the agency and identity of the principal to third parties. The agent finds a suitable business and contracts to purchase the business on behalf of the principal, but the agent mistakenly signs the contract "Marcia McKee, agent." This is a(n) _____ agency that occurs because of _____. A. partially disclosed; fraud B. fully disclosed; fraud C. partially disclosed; mistake D. fully disclosed; mistake E. undisclosed; mistake

Bearer paper _________________. A. is a promise to pay a specific entity B. is made to order C. results when the drawer or maker does not indicate a specific payee D. is a conditional promise to pay a specific person E. is made to a specific person

Hiring a young person to play a child in a movie would ________. A. violate the Age Discrimination in Employment Act B. violate the Americans with Disabilities Act C. be a bona fide occupational requirement D. violate the National Labor Relations Act E. violate the Older Workers Benefits Protection Act

If a holder takes an instrument from a shady looking character in a dark alley, it could be inferred that the holder did not take the instrument ________. A. from a drawer B. for value C. in good faith D. from a payee E. without notice that it was overdue

If an agent acts for two or more different principals in the same transaction, this is known as ________. A. self-dealing B. competing with the principal C. dual agency D. misuse of confidential information E. usurping an opportunity

Makers of promissory notes and certificates of deposit have____________ liability for the instruments. A. no B. secondary C. primary D. guarantee of collection E. accommodation

One can employ an outsiderlong dash—that is, persons and businesses that are not employeeslong dash—to perform certain tasks on their behalf. This outsider is a(n) ________. A. employer B. principal C. independent contractor D. agent E. third party

One of the differences between a cashier's check and a certified check is that ______________. A. a certified check can become stale B. only a customer can obtain a cashier's check from a bank C. only a customer can obtain a certified check from the bank D. the drawer can stop payment on a certified check E. when a bank pays on a cashier's check the bank debits the customer's account

Recognizing a closed shop is a(n) _____ subject of collective bargaining. A. preliminary B. compulsory C. illegal D. permissive E. conditional

Recognizing closed shops is ________. A. a closed shop rule B. a union shop rule C. an illegal collective bargaining topic D. a permissive collective bargaining topic E. a compulsory collective bargaining topic

Sally hires James to work as an employee at her firm. James does not have the ability to enter into contracts on behalf of Sally. This is called a(n) ________. A. principal-independent contractor relationship B. general power of attorney C. employer-employee relationship D. implied agency E. principal-agent relationship

Sally hires James to work as an employee at her firm. James has the ability to enter into contracts on behalf on Sally. This is called a(n) ________. A. principal-independent contractor relationship B. general power of attorney C. principal-agent relationship D. implied agency E. employer-employee relationship

Suppose Qixia hires Harold, a lawyer and an independent contractor, to represent her in a court case. While driving to the courthouse to represent Qixia at trial, Harold negligently causes an automobile accident in which Mildred is severely injured. Which of the following is an accurate statement regarding the liability of Qixia and/or Harold for Mildred's injuries? A. Both Qixia and Harold are liable for Mildred's injuries. B. Neither Qixia nor Harold is liable for Mildred's injuries, since the accident arose out of the course and scope of employment. C. Harold is liable for Mildred's injuries, but Qixia is not liable. D. Qixia is liable for Mildred's injuries since Harold was her independent contractor, but Harold is not liable. E. Qixia is liable for Mildred's injuries since Harold was her employee, but Harold is not liable.

Suppose a worker in a factory reports for work and is walking toward his work station when he trips over some boxes stored on the floor. This would be a violation of _____. A. OSHA specific duty standards B. OSHA conditional duty standards C. the OSHA general duty requirement to provide safe working conditions D. the federal Workers' Compensation Act mandate for employers to provide an injury-free workplace E. the FLSA's requirement to provide a safe work environment (in recognition of the fact that the FLSA mandates a safe work environment as a fair labor standard)

Suppose that a thief steals a negotiable instrument and transfers it to Harry. Harry does not know that the instrument is stolen. Harry meets the _____ test and can therefore qualify as a holder in due course (HDC). A. materiality B. reasonable person C. good faith D. objectivity E. due diligence

TaylorMade Golf Company wants to purchase supplies with a large dollar value from Washington Iron & Aluminum. TaylorMade instructs its bank to wire the funds to Washington Iron & Aluminum's bank, with instructions to credit Washington Iron & Aluminum's account. Who originated the wire transfer? A. TaylorMade Golf's bank B. Washington Iron & Aluminum's bank C. TaylorMade Golf D. no one E. Washington Iron & Aluminum

The FTC HDC rule eliminates holder in due course status with regard to negotiable instruments in ____________ transactions. A. commercial B. banking C. consumer D. bankruptcy E. real estate

The Family and Medical Leave Act provides which of the following? A. 6 weeks of unpaid leave during a 6-month period for the placement of a child with an employee for adoption B. 6 weeks of unpaid leave during a 12-month period to care for a spouse with a serious health problem C. 12 weeks of unpaid leave during a 12-month period for the birth of a child D. 12 weeks of unpaid leave during a 6-month period for a serious health condition that makes an employee unable to perform his or her duties E. an unlimited amount of time to take care of a family member

The Federal Trade Commission (FTC), a federal administrative agency in charge of consumer protection, adopted the FTC HDC rule pursuant to its federal _____ powers. A. quasi-judicial B. executive C. statutory D. "fourth branch" E. judicial

The drawee of a check is the party ________. A. who receives the money from a check B. in possession of the instrument C. who must pay the money stated in a check D. who writes the check E. who promises to pay the note

The Dodd-Frank Wall Street Reform and Consumer Protection Act is ________. A. a federal statute that requires financial institutions and other entities to file a Currency Transaction Report (CTR) with the Internal Revenue Service (IRS) B. a state statute that reformed many aspects of the banking system C. a federal statute that reformed many aspects of the banking system D. a federal statute that protects consumers from securities brokers E. a federal statute that allows trading on Wall Street

The ________ type of visa allows employers to hire employees with extraordinary abilities. A. FICA B. H4 C. EB-1 D. I-9 E. H1-B

Title I of the Americans with Disabilities Act ________. A. requires an employer to ask if an applicant has a disability B. requires an employer to ask about the extent of an applicant's disability C. limits an employer's ability to test for an employee's disabilities D. allows an employer to ask about the nature of an applicant's disability E. allows an employer to conduct a preemployment medical exam on an applicant.

Under apparent agency, if Luke tells his agent Isaac that he no longer has authority to enter into contracts on his behalf, but fails to notify a third party who then enters into a contract with Isaac, Luke will ________. A. choose whether or not to accept the contract B. avoid the contract C. be bound to the contract D. be able to accept part of the contract E. not be bound to the contract

Wayne, who is 50 years old, applies for an open position as manager at Big Box Retail Stores, Inc. Wayne meets the job requirements of having a college degree and prior experience as a store manager and is otherwise qualified for the job. The employer refuses to hire Wayne because of his age and hires someone who is 30 years old for the job. Which of the following is a correct statement regarding Bix Box Retail Stores' refusal to hire Wayne? A. This is age discrimination in violation of the ADA. B. This is not age discrimination, since the employer hired someone for the position who was at or above the age of 30. C. This is age discrimination in violation of the ADEA. D. This is age discrimination in violation of the FLSA. E. This is not age discrimination, since age requirements constitute bona fide occupational qualifications (BFOQs).

What is the term for a certificate of deposit that is over $100,000? A. big CD B. large CD C. jumbo CD D. huge CD E. giant CD

When an eligible employee who takes leave returns to work, he or she ________. A. is entitled to the accrual of seniority during the leave period. B. must be provided with a promotion upon return from leave C. must be restored to either the same or an equivalent position with equivalent employment benefits and pay D. must be restored to the same or equivalent position if he or she is among the highest-paid 10 percent of that employer's employees E. must be restored to either the same or an equivalent position but does not need to be awarded equivalent employment benefits and pay

When sexual comments are frequent and unreasonably interfere with an employee's work performance, it is ________. A. sex-plus discrimination B. not discrimination C. a hostile work environment D. quid pro quo discrimination E. religious discrimination

Which of the following is a recognized right of employees? A. to require co-workers to join the union B. to deny replacement workers access to employer property C. to form or assist labor organizations D. to stop members of management from speaking to the press about a strike E. to occupy employer property and prevent access to crossover employees

Which of the following is an INCORRECT statement regarding crossover and replacement workers? A. Individual members of a union may choose to return to work after joining the strikers for a time. B. Employees who choose either not to strike or to return to work after joining the strikers for a time are known as crossover workers. C. Individual members of a union must honor a strike. D. Once a strike begins, the employer may continue operations by using management personnel and hiring replacement workers to take the place of the striking employees. E. Individual members of a union may choose not to strike.

Which of the following is an INCORRECT statement regarding the check collection process? A. The collection process is governed by Article 4 of the Uniform Commercial Code (UCC). B. When a payee or holder receives a check, he or she can go to the drawer's bank and present the check for payment in cash. C. A bank does not have a duty to accept deposits into a customer's account. D. The collection process may involve several banks. E. When a payee or holder receives a check, he or she can deposit the check into a bank account at his or her own bank.

Who is liable for the torts of an independent contractor? A. both the principal and the independent contractor B. the principal only, if the tort involves minors C. the independent contractor only D. neither the principal nor the independent contractor E. the principal only

Who is liable if an independent contract enters into a contract with authority from the principal? A. the independent contractor only B. neither the principal nor the independent contractor C. the principal only D. both the principal and the independent contractor E. the government only

Why was the FTC HDC rule enacted? A. to prevent fraud by banks B. to provide universal defenses C. to correct the harsh result of the holder in due course rule in connection with consumer purchasers of goods D. to require disclosures by banks E. to prevent fraud by consumers

________, the most common form of agency, gives the agent the authority to contract or otherwise act on the principal's behalf, as stated in the agency agreement. A. Implied agency B. Exclusive agency C. Express agency D. Apparent agency E. Agency by ratification

A(n) _______ occurs when a transferor transfers the rights under a contract to the transferee. A. indorsement B. negotiation C. assignment D. allonge E. unqualified indorsement

______________ is a requirement of negotiable instruments that says they must be able to be easily transported between areas. A. Permanency requirement B. Order to pay C. Portability requirement D. Signature requirement E. Unconditional promise to pay

A bearer instrument is payable to anyone who ________. A. is the drawer B. has a driver's license C. is the maker D. is in physical possession of the instrument E. is identified on the face of the instrument

A holder who does not qualify as a holder in due course in his or her own right becomes a holder in due course if he or she acquires the instrument through a holder in due course. This is called _______________. A. an indorsement B. a virgule C. good faith D. the shelter principle E. an allonge

A power of attorney where a principal confers broad powers on the agent to act in any matters on the principal's behalf is known as a(n) ________. A. durable power of attorney B. limited power of attorney C. apparent agency D. general power of attorney E. special power of attorney

A strike may be called ________. A. when an employer will not give its employees a raise. B. when employees want more vacation time C. immediately after voting to strike D. after 60-day notice is given to the employer E. after 30-days' notice is given to the employer

Actions or events that relieve certain parties from liability on negotiable instruments are known as _____________. A. signature liability B. the fraud in the inducement rule C. transfer and presentment warranties D. discharge E. the FTC HDC rule

After the country suffered a major financial and economic depression in the mid-2000s, the United States Congress decided that the bank system needed to be reformed. To accomplish this, Congress passed the _____ Street Reform and Consumer Protection Act. A. Dodd-Frank Main B. Smoot-Hawley Wall C. Landrum-Griffin Main D. Dodd-Frank Wall E. Landrum-Griffin Wall

Agents owe a duty _______________ to the principal. A. to compensate B. to cooperate C. to indemnify D. of loyalty E. to reimburse

An agency that occurs when a person misrepresents himdash- or herself as another's agent when they are not and the purported principal ratifies the unauthorized act is known as ________. A. exclusive agency B. apparent agency C. express agency D. agency by ratification E. implied agency

An indorsement may also be written on a separate piece of paper called a(n) _______. A. indorsement B. virgule C. assignment D. allonge E. negotiation

Andrew borrows $10,000 from Wei and signs a promissory note agreeing to pay Wei the principal and 10 percent annual interest over three years in equal monthly installments. Here, Andrew is the _____ of the note, and Wei is the _____. A. originator; drawee B. acceptor; drawee C. drawer; payee D. maker; payee E. drawee; payee

Authority that is created when the principal leads a third party to believe that the agency has authority is called ________. A. implied agency B. exclusive agency C. agency by ratification D. apparent agency E. express agency

A _____ check is a type of check for which a bank agrees in advance to accept the check when it is presented for payment. A. draft B. non-negotiable C. qualified D. certified E. promissory

A ________ is a negotiable instrument known as a sight draft that arises when credit is extended with the sale of goods. A. nonnegotiable contract B. promissory note. C. check D. trade acceptance E. certificate of deposit.

For an injury to be compensated under workers' compensation, the ________. A. employer must have intentionally harmed the employee B. employee must have paid for workers' compensation insurance C. employer must self-insure D. employee must have incurred an employment related injury E. grocery stores.

If Anastasia indorsed her check by writing "for deposit only" above her signature, what type of indorsement would be created? A. blank B. nonrestrictive C. special D. restrictive E. qualified

If a client authorizes an attorney to settle a case within a certain dollar amount and the attorney does so, the settlement agreement is _____. A. non-binding unless the client ratifies it B. binding, but only if the client is present when the attorney negotiates it C. non-binding unless the client rescinds it D. binding E. non-binding unless it is either notarized by an official notary public or witnessed by two impartial witnesses (whose signatures appear on the agreement)

If a company has a policy of hiring employees over the age of 50, this would ________. A. violate the Americans with Disabilities Act B. violate the National Labor Relations Act C. violate the Age Discrimination in Employment Act D. not violate the Age Discrimination in Employment Act E. violate the Older Workers Benefits Protection Act

If a nonexempt employee works 50 hours one week and 30 hours the next week, the employer _____. A. owes the employee 15 hours of overtime pay (which represents one-and-a-half times their actual number of overtime hours worked) for the first week B. owes the employee 10 hours of unpaid leave time C. owes the employee 10 hours of overtime pay of two times their regular pay for the first week D. owes the employee 10 hours of overtime pay of one-and-a-half times their regular pay for the first week E. does not owe the employee any overtime pay, since the average number of hours worked during the two weeks was 40 (representing a basic workweek)

If an employee harasses a coworker________. A. the employer is never liable B. the employer is strictly liable C. the employees must go to mediation D. the employer is liable if it was negligent in controlling the situation E. only the harasser is liable

If an employee is injured and the employer carries workers' compensation insurance ________. A. the employee can also sue the employer in court for negligence B. the employee can sue the federal government C. the employee can sue the appropriate state agency D. workers' compensation is the employee's exclusive remedy E. the employee can collect both workers' compensation and sue the employer

If the holder takes the instrument with noticeable evidence of forgery, the holder would not qualify as a(n) ________. A. indorsee B. unqualified indorser C. qualified indorser D. holder in due course E. indorser

In an undisclosed agency, who has liability to the third party? A. neither the principal nor the agent B. the principal only C. the agent only D. both the principal and the agent E. the government only

In determining the degree of control that the principal has over the party, the courts will look at all of the following EXCEPT? A. the length of time the agent has been employed, and the amount of time that he or she works for the principal B. who supplies the tools, equipment, and administrative and support staff used C. who controls the manner and means of accomplishing the tasks D. whether or not the agent has a college degree E. whether the worker is engaged in a distinct occupation or an independently established business

Lars draws a check made "pay to the order of Yasmin Aslan." Yasmin signs the back of the check and cashes the check at the grocery store. Has the check been negotiated? A. no, it was not indorsed B. no, Yasmin must take the check to the bank C. no, it has not been delivered D. yes, Yasmin indorsed and delivered it E. no, Yasmin must indorse it to a third party

Lars draws a check made "pay to the order of Yasmin Aslan." Yasmin signs the back of the check and leaves it on the counter at the grocery store. Ross picks it up and cashes it. Can Yasmin obtain a new check from Lars? A. yes, Yasmin can obtain a new check from Lars B. no, but Yasmin can sue the grocery store for not protecting the check C. no, but Yasmin can sue the bank for cashing it D. no, Yasmin converted the order paper to bearer paper and has no recourse E. no, Yasmin converted bearer paper to order paper and has no recourse

Leslie borrows $50,000 from George and signs a promissory note to pay this amount plus 5% interest over 5 years in semi-annual installments. Leslie is the ______________ and George is the _________________. A. payee of a note; maker of a note B. maker of a note; drawee of a note C. drawee of a note; payer of a note D. maker of a note; payee of a note E. drawer of a note; drawee of a note

Location of plants is ________. A. a compulsory collective bargaining topic B. an illegal collective bargaining topic C. a union shop rule D. a permissive collective bargaining topic E. a closed shop rule

Makers of promissory notes and certificates of deposit have _____ liability for the instruments. A. holder B. tertiary C. holder in due course D. primary E. secondary

Millicent has $50,000 that she would like to invest and earn income on. Millicent goes into City Bank and deposits her money with the bank in exchange for a certificate of deposit (CD) that bears an annual interest rate of 7 percent. Here, City Bank is the _____ of the CD, and Millicent is the _____. A. originator; acceptor B. originator; drawee C. drawee; payee D. maker; payee E. drawer; payee

OSHA has all of the following powers EXCEPT? A. to establish specific safety standards B. to bring civil actions against companies for violating safety standards C. to impose criminal penalties against companies for violating safety standards D. to hire contractors to correct deficiencies E. to inspect businesses for safety violations

Suppose a homeowner employs a real estate broker to sell his house. A water pipe breaks and begins to leak water into the house. If the homeowner cannot be contacted, the real estate broker has _____ authority to hire a plumber to repair the pipe to stop the water leak. A. express B. equitable C. symbolic D. implied E. quasi-

Suppose that Sam Bennett receives a weekly payroll check from his employer, Ace Corporation, made "payable to the order of Sam Bennett." Sam takes the check to a local store, signs his name on the back of the check, gives the check to the cashier, and receives cash for the check. Which of the following is correct in terms of negotiation of the check? A. Delivery, but not indorsement, has occurred; therefore, the check has not been properly negotiated. B. The check is non-negotiable. C. Indorsement, but not delivery, has occurred; therefore, the check has not been properly negotiated. D. The check has been properly negotiated. E. Ace Corporation is a holder in due course.

TaylorMade Golf Company wants to purchase supplies with a large dollar value from Washington Iron & Aluminum. TaylorMade instructs its bank to wire the funds to Washington Iron Aluminum's bank, with instructions to credit Washington Iron & Aluminum's account. What type of transaction is described in this transaction? A. debit card purchase B. bank check C. ATM D. commercial electronic funds transfer E. direct deposit

The Fair Labor Standards Act applies to ________. A. private employers and employees engaged in services B. state government employers and employees C. federal government employers and employees D. private employers and employees engaged in the production of goods for interstate commerce E. local government employers and employees

The Family and Medical Leave Act applies to companies with more than ________. A. 100 subsidiary companies B. 25 employees C. 15 employees D. 50 employees E. 75 subsidiary companies

The Immigration Reform and Control Act ________. A. imposes criminal penalties on employees who fail to comply B. does not apply to employers with more than 50 employees C. requires employers to make a photocopy of each employee's driver's license D. requires employers to obtain an I-9 from each employee E. requires that all employees be citizens of the United States

The drawer of a check is the party ________. A. who receives the money from a check B. who must pay the money stated in a check C. in possession of the instrument D. who writes the check E. who promises to pay the note

The term respondeat superior literally means "_____," and is based on the legal theory of vicarious liability, which is liability _____. A. answer to the higher authority; based on recklessness B. answer to the higher authority; based on intent C. let the master answer; based on gross negligence D. let the master answer; without fault E. let the master answer; based on ordinary negligence

Title VII of the Civil Rights Act applies to all of the following EXCEPT A. a labor union with 100 members B. employment agencies C. New York City D. foreign nationals employed in foreign countries by U.S. companies E. a company with 30 employees

To be covered by the Family and Medical Leave Act, the employee must ________. A. be an employee of a state government B. be an employee of a local government C. be an employee of the federal government D. have worked 1,250 hours in the previous 12-month period and been employed with that employer for at least one year E. have worked 1,000 hours in the previous 12-month period

Transferors of negotiable instruments can be held liable for ________. A. presentiment warranties only B. both transfer and presentment warranties C. signature warranties only D. transfer warranties only E. cancellation only

What is NOT a requirement for an instrument to be negotiable? A. The instrument must be signed by the maker or the drawer. B. The instrument must be payable on demand or at a definite time. C. The instrument must be an unconditional promise or order to pay. D. The instrument must require an undertaking in addition to the payment of money. E. The instrument must be in writing.

What is an order to pay? A. a drawer's promise to pay a payee B. a maker's promise to pay at payee C. drawee's unconditional order to pay a drawer D. a drawer's unconditional order to a drawee to pay a payee E. a payee's order to pay a maker

When a man is offered a promotion in exchange for sexual favors one time, this is________. A. a hostile work environment B. not discrimination because only females can file these actions C. sex-plus discrimination D. quid pro quo discrimination E. religious discrimination

When an employer refuses to hire a cook in a restaurant because she is married to a dark-skinned person, this is ________. A. gender discrimination B. religious discrimination C. race discrimination D. color discrimination E. national origin discrimination

When an employer refuses to hire a cook in a restaurant that does not open until 12 noon because of the cook's need to take off Sunday mornings due to church attendance, this is ________. A. gender discrimination B. national origin discrimination C. race discrimination D. religious discrimination E. color discrimination

Which defenses may be asserted against a holder in due course? A. undue influence B. mental illness which makes a contract voidable C. breach of contract D. illegality E. fraud in the inducement

Which federal statute gives employers a free speech right to speak out against unions? A. Railway Labor Act B. Labor Management Reporting and Disclosure Act C. National Labor Relations Act D. Labor Management Relations Act E. Norris-LaGuardia Act

Which federal statute regulates internal union affairs and established the rights of union members? A. Railway Labor Act B. Labor Management Relations Act C. Norris-LaGuardia Act D. Labor Management Reporting and Disclosure Act E. National Labor Relations Act

Which of the following is NOT a critical factor in determining independent contractor status? A. the length of time the agent has been employed by the principal B. whether the principal supplies the tools and equipment used in the work C. whether the worker is engaged in a distinct occupation or an independently established business D. whether the worker is employed in an "employment-at-will" jurisdiction E. the amount of time that the agent works for the principal

Which of the following is NOT a critical factor in determining independent contractor status? A. whether the employer has the right to control the manner and means of accomplishing the desired result B. the degree of skill necessary to complete the task C. whether the worker hires employees to assist him or her D. whether the employer's form of business ownership is sole proprietorship, partnership, traditional corporation (C-corp), Subchapter S corporation (S-corp), or limited liability company (LLC) E. the method of payment, whether by time or by the job

Which of the following is NOT a requirement for creating a negotiable instrument? A. to be signed by the maker of drawer B. to be an unconditional promise or order to pay C. to be payable to order or to bearer D. to state a variable amount of money E. to be payable on demand or at a definite time

Which of the following is NOT an important question to answer in determining whether an agent's conduct occurred within the scope of his or her employment? A. Was the agent advancing the principal's purpose when the act occurred? B. Did the act occur substantially within the time period of employment authorized by the principal? C. Did the act occur substantially within the location of the employment authorized by the employer? D. Did the agent possess the required professional licensure(s)? E. Was the act specifically requested or authorized by the principal?

Which of the following is NOT one of the methods to discharge a negotiable instrument? A. writing cancelled on the face of the instrument B. payment of the instrument in full C. destruction or mutilation of the instrument with the intention of eliminating the obligation D. destruction of the instrument by accident E. payment of an unaccepted check in full to the holder by a drawee in good faith

Which of the following is NOT subject to Article 3 of the UCC? A. trade acceptance B. check C. certificate of deposit D. nonnegotiable contract E. promissory note

Which of the following is a correct statement regarding the ADA? A. A common cold is a presumptive disability under the ADA. B. The ADA does not protect people from employment discrimination based on their relationship with a person with a disability. C. Pregnancy is considered a disability under the ADA. D. Impairments resulting from pregnancy are disabilities under the ADA. E. A current user of illegal drugs is covered by the ADA.

Which of the following is a violation of Age Discrimination in Employment Act? A. a 50year-old is hired in place of a 39-year-old B. an 18-year-old with no experience is hired in place of a 39-year-old with ample experience C. a 14-year-old is hired to play a 14-year-old character on a TV show D. a 25-year-old is hired in place of an equally qualified 40-year-old because the 40-year-oldwas too old E. a 25-year-old is hired in place of a 35-year-old

Which of the following is an INCORRECT statement regarding discharge from liability on negotiable instruments? A. Cancellation can be accomplished by any manner apparent on the face of the instrument or the indorsement. B. Cancellation can be accomplished by destruction or mutilation of a negotiable instrument with the intent of eliminating the obligation. C. An instrument is not canceled if it is destroyed or mutilated by accident or by an unauthorized third party. D. The holder of a negotiable instrument cannot discharge the liability of any party to the instrument by cancellation. E. Intentionally striking out the signature of an indorser cancels that party's liability on the instrument and the liability of all subsequent indorsers.

Which of the following is an accurate statement regarding the liability of a principal for an independent contractor's torts? A. Generally, a principal is liable for the torts of its independent contractors due to negligence theory. B. Generally, a principal is liable for the torts of its independent contractors due to the inherent risks associated with running a business. C. Generally, a principal is strictly liable for the torts of its independent contractors. D. Generally, a principal is not liable for the torts of its independent contractors. E. Generally, a principal is liable for the torts of its independent contractors due to intentional tort theory.

Which of the following is considered a disability under the Americans with Disabilities Act? A. an alcoholic who is a current user of alcohol B. a current user of illegal drugs C. pregnancy D. autism E. seasonal allergies

Which of the following is not a universal (real) defense? A. mental incapacity B. forgery C. minority D. fraud in the inducement E. discharge in bankruptcy

Which of the following restriction on union solicitation may employers engage in? A. requiring the employees to hold the meetings off premises B. requiring employees to consider at least 3 different unions C. requiring employees to register prior to doing any soliciting D. preventing non-union employees from entering the premises E. requiring the employees to meet in the evening

Which of the following statements about child labor laws is true? A. Children cannot work in agriculture. B. Children cannot work in performance productions. C. Children under the age of 14 cannot sell newspapers. D. Children ages 16 and 17 can work unlimited hours in nonhazardous jobs. E. Children ages 14 and 15 can work unlimited hours in nonhazardous jobs.

Which of the following statements about presentment warranties is true? A. The person who presents a draft or check warrants that that there are no defenses against the transferee. B. The person who presents a draft or check warrants that the instrument has been materially altered. C. The person who presents a draft or check warrants that he or she has no knowledge of any insolvency proceeding against the maker, acceptor, or drawer. D. The person who presents a draft or check warrants that he has good title. E. The person who presents a draft or check warrants that he has knowledge that the signature of the maker or drawer is unauthorized.

Which of the following statements about transfer warranties is true? A. A person transferring a negotiable instrument warrants that that there are defenses against the transferee. B. A person transferring a negotiable instrument warrants that that the instrument has been altered. C. A person transferring a negotiable instrument does not warrant that he or she has no knowledge of any insolvency proceeding against the maker, acceptor, or drawer. D. A person transferring a negotiable instrument warrants that all signatures are genuine or authorized. E. No one transferring a negotiable instrument has to warrant that he has good title or is authorized to act as the agent for the person that has good title.

Which of the following statements about cashier's checks is NOT true? A. The bank guarantees payment of the check. B. The bank serves as the drawer and the customer serves as the drawee. C. The purchaser must have a checking account at the bank. D. They are cancellable negotiable instruments. E. Cashier's checks are issued to cash

Which of the following statements regarding secondary liability is true? A. Makers of promissory notes have secondary liability. B. An accommodation party who signs an instrument guaranteeing collection does not have secondary liability on the instrument. C. Makers of certificates of deposits have secondary liability. D. A party is held to have secondary liability if the instrument is properly presented for payment, has been dishonored, and notice is timely given to the person who is secondarily liable. E. An accommodation party who signs an instrument guaranteeing payment has secondary liability on the instrument.

Workers from _____________ make up almost 25% of all H1-B visas. A. Canada B. England C. the United States D. India E. Mexico

________________ allow(s) deposits and withdrawals on a bank's premises or other convenient location. A. Direct deposit B. Online banking C. Point-of-sale terminals D. Automated teller machines E. Debit cards

allow(s) customers to view bank statements online and pay bills from their accounts using their home and the Internet. A. Point-of-sale terminals B. Debit cards C. Automated teller machines D. Online banking E. Direct deposit

________________ allow(s) for debit cards to be used in lieu of checks at retail businesses, and operate the same as a check. These cards are used to allow immediate deduction of payments from a checking or savings account; there is no extension of credit involved. A. Automated teller machines B. Online banking C. Debit cards D. Point-of-sale terminals E. Direct deposit

A commercial wire transfer is also known as a(n) ________________. A. bank check B. ATM C. debit card purchase D. direct deposit E. wholesale wire transfer

A(n) _____ shop is a workplace in which an employee does not have to join the union but must pay an agency fee to the union. A. company B. closed C. union D. open E. agency

Agency that arises when a principal creates the appearance of an agency that in actuality does not exist is called ________. A. exclusive agency B. implied agency C. express agency D. agency by ratification E. apparent agency

All of the following are examples of negotiable instruments EXCEPT? A. checks B. promissory notes C. drafts D. certificates of deposit E. documents that state that they are nonnegotiable

All of the following are examples of transfer warranties made by any person who transfers a negotiable instrument for consideration, EXCEPT? A. The instrument has not been materially altered. B. The transferor has good title to the instrument or is authorized to obtain payment or acceptance on behalf of one who does have good title. C. All signatures are genuine or authorized. D. That there are no defenses of any party that are good against the transferor. E. That there are no defenses of any party that are good against the transferee.

All of the following are ways in which a qualified individual with a disability can show that he or shehas a disability EXCEPT? A. a mental (psychological) impairment that substantially limits one or more of his or her major life activities B. aphysical (physiological) impairment that substantiallylimits one or more of his or her major life activities C. is regarded as havingaphysical (physiological) impairment that substantially limits one or more of his or her major life activities,even if he or she does not have theimpairment D. ahistory of a mental (psychological) impairment that substantially limits one or more of his or her major life activities E. a history of untreated drug addiction

An agent who enters into a contract on behalf of another party impliedly warrants that he has the authority to do so. This is called the agent's implied warranty of _____. A. fitness for ordinary responsibilities B. fitness for a particular purpose C. habitability D. merchantability E. authority

An example of an independent contractor is a ________. A. retail associate B. professor C. teacher D. cashier E. doctor

An order paper is negotiated by ________. A. indorsement only B. qualified indorsement only C. delivery only D. special indorsement only E. both delivery and indorsement

Computer and electronic technology make it possible for banks to offer electronic deposit, withdrawal, payment, and collection services to bank customers. This technology is collectively referred to as the _____. A. CCTS B. EFAP C. ICTS D. CMTS E. EFTS

Employers are required to provide reasonable accommodations for an employee's disability ________. A. regardless of cost B. unless it is impossible C. upon request of the employee D. regardless of difficulty E. provided it does not cause an undue hardship of the employer

If a transfer is by indorsement, the transferor makes all but which of the following warranties to any subsequent transferee? A. All signatures are genuine or authorized. B. No defenses of any party are good against the transferor. C. The transferor is not a holder or a holder in due course of the instrument. D. The instrument has not been materially altered. E. The transferor has good title to the instrument or is authorized to obtain payment or acceptance on behalf of one who does have good title.

If an instrument states that it is "payable to the order of IBM," it is considered a(n) _______. A. non-negotiable Instrument B. variable interest rate loan C. collateral note D. bearer instrument E. order instrument

If a 65-year-oldemployee is let go because the cost of his or her benefits increases, this would ________. A. be a sound business decision B. violate the National Labor Relations Act C. violate the Americans with Disabilities Act D. be a bona fide occupational requirement E. violate the Older Workers Benefits Protection Act

If the name of the payee or indorsee is misspelled in a negotiable instrument ________. A. the drawer must be write a new instrument B. the negotiable instrument is void C. the drawee must write a new instrument D. the payee or indorsee can use strategically use white-out to correct the name E. the indorsee can indorse the check using the misspelled name, the correct name, or both

In a fully disclosed agency, who is liable to the third party? A. the government only B. both the principal and the agent C. the agent only D. neither the principal nor the agent E. the principal only

In a partially disclosed agency, who would be liable to the third party? A. the agent only B. the government only C. the principal only D. neither the principal nor the agent E. both the principal and the agent

Justin has a checking account at Country Bank. When Justin purchases a car from Mary's Motors, a car dealership, Justin pays for the car by writing a check on the bank made payable to Mary's Motors. In this case, Justin is the _____, Country Bank is the _____, and Mary's Motors is the _____. A. drawee; drawer; payee B. payee; drawer; drawee C. drawer; payee; drawee D. drawee; payee; drawer E. drawer; drawee; payee

Lexi has $20,000 that she would like to invest and earn income on. Lexi goes to Washington Trust Bank and deposits her money in exchange for a certificate of deposit with an annual interest rate of 3%. Lexi is the _____________ and Washington Trust Bank is the ____________. A. drawer of a CD; drawee of a CD B. payer of a CD; payee of a CD C. payee of a CD; payer of a CD D. maker of a CD; payee of a CD E. payee of a CD; maker of a CD

Mary wrote a check to Bob for $1,000 payable on sight. Mary is the _____________ A. drawee of a check B. bearer of an instrument C. payee of a check D. maker of a note E. drawer of a check

Principals often employee outsiderslong dash—that is, persons and businesses that are not employeeslong dash—to perform certain tasks on their behalf. These persons and businesses are called _____. A. quasi-employees B. virtual employees C. temporary employees D. dependent contractors E. independent contractors

Section _____ of the _____ gives employees the right to join together to form a union. A. 3; FLSA B. 5; NLRA C. 6; Landrum-Griffin Act D. 5; Landrum-Griffin Act E. 7; NLRA

States usually require employers to purchase workers' compensation insurance from ________. A. the federal government B. the Equal Employment Opportunity Commission C. no one D. the local government E. private insurance companies or state funds

Suppose Georgia Pacific, Inc. interviews Albert Iorio for a sales representative position. Iorio, accompanied by Jane Franklin, the national sales manager, visits retail stores located in the open sales territory. While visiting one store, Franklin tells the store manager, "I wish I had more sales reps like Albert." Nevertheless, Iorio is not hired. If Iorio later enters into contracts with the store on behalf of Georgia Pacific and Franklin has not controverted the impression of Iorio that she left with the store manager, the company will ______. A. not be bound to the contract, since Iorio did not have apparent authority B. not be bound to the contract, since Iorio did not have express authority C. be bound to the contract, based on Iorio's implied authority D. be bound to the contract, based on Iorio's express authority E. be bound to the contract, based on Iorio's apparent authority

Suppose a principal employs an agent to trap alligators. If a law is passed that makes trapping alligators illegal, the agency contract _____. A. terminates due to operation of law B. is still enforceable, since the act of trapping alligators was legal when the principal and agent entered into the agency contract C. terminates due to an unusual change in circumstances D. terminates due to an act of the parties E. terminates due to impossibility of performance

Suppose that an agent works for a principal that is in the business of real estate development. The principal is looking for vacant land to purchase to develop. A third party who owns and wants to sell his vacant land tells an agent of the principal of the availability of the land. The agent, without informing the principal, purchases the land for her own use. The agent is wrongfully _____ an opportunity, and thereby violating the agent's duty of _____. A. coopting; care B. usurping; obedience C. ratifying; loyalty D. ratifying; obedience E. usurping; loyalty

Ted draws a check "payable to the order of Mary Smith" and delivers the check to Mary. Mary indorses it and gives it as a gift to her daughter. Which of the following is a correct statement regarding whether Mary's daughter can qualify as a holder in due course (HDC)? A. Mary's daughter can qualify as an HDC because a gift has value, and therefore meets the value requirement for becoming an HDC. B. Mary's daughter cannot qualify as an HDC because she took the instrument with notice that it had been dishonored. C. Mary's daughter can qualify as an HDC because she took the check from a family member (more particularly, her mother). D. Mary's daughter cannot quality as an HDC because she took the instrument with notice that it was encumbered. E. Mary's daughter cannot qualify as an HDC because she has not given value for it. In order to become a holder in due course, the holder must pay something of value for the instrument.

The labor bill of rights is found in which of the following? A. Railway Labor Act B. National Labor Relations Act C. Norris-LaGuardia Act D. Labor Management Relations Act E. Landrum-Griffin Act

The _____ is a group of employees that a union is seeking to represent. A. permissible bargaining unit B. collective whole C. "collective soul" D. presumptive bargaining unit E. appropriate bargaining unit

The ____________________ created the Consumer Financial Protection Bureau. A. Bank Secrecy Act B. Federal Reserve System C. Regulation E D. Electronic Funds Transfer Act E. Dodd-Frank Wall Street Reform and Consumer Protection Act

The ____________________ requires mortgage lenders to make a reasonable and good faith determination that a borrower has the ability to repay the loan. A. Federal Reserve System B. Regulation E C. Electronic Funds Transfer Act D. Bank Secrecy Act E. Dodd-Frank Wall Street Reform and Consumer Protection Act

Title VII prohibits discrimination against all of the following EXCEPT? A. color B. national origin C. sex D. race E. age

To correct the situation where a consumer is unable to raise a claim against seller for selling a defective good the _______________ was enacted. A. Holder in due course rule B. imposter rule C. discharge in bankruptcy rule D. Fraud in the inducement rule E. FTC HDC rule

Universal defenses can be raised against ________. A. payees only B. drawees only C. holders only D. holders in due course only E. both holders in due course and holders

Which federal statute gives workers the right to collectively bargain with its employer? A. Norrisdash-LaGuardia Act B. Labor Management Relations Act C. Labor Management Reporting and Disclosure Act D. Railway Labor Act E. National Labor Relations Act

Which of the following about independent contractors is true? A. If someone is named an independent contractor in a contract, the degree of control that the principal has over the contractor is irrelevant. B. Independent contractors usually use the principal's tools. C. Principals control the performance of an independent contractor's work. D. Independent contractors usually work for one client. E. Labeling someone an independent contractor is only one factor in determining status.

Which of the following entities are NOT exempt from OSHA (the Occupational Safety and Health Act)? A. industries regulated by other federal safety laws B. state governments C. local governments D. federal government E. grocery stores.

Which of the following is NOT a requirement for creating a negotiable instrument? A. be signed by the maker or drawer B. be in writing C. not require any undertaking in addition to the payment of money D. state a fixed amount of money E. be a conditional promise or order to pay

Which of the following is NOT covered by the Family and Medical Leave Act (FMLA)? A. the placement of a child with an employee for adoption or foster care B. a serious health condition that makes the employee unable to perform his or her duties C. care for a spouse, child, or parent with a serious health problem D. the birth and care for a child E. a family reunion or other family gathering that requires out-of-state travel

Which of the following is a correct statement regarding the ADEA? A. Setting an age limit for pilots violates the ADEA. B. The ADEA permits age discrimination unless a BFOQ is shown. C. Persons under the age of 40 are protected by the ADEA. D. Only hiring a young person to play a young character in a movie or play violates the ADEA. E. An employer can maintain an employment policy of hiring only workers who are 40 years of age or older without violating the ADEA.

Which of the following is an INCORRECT statement regarding commercial wire transfers? A. The customer is liable to pay the bank for any properly paid funds transfer. B. Article 4A applies only to commercial electronic funds transfers. C. A customer of a bank may request the bank to pay another party by wiring funds to the other party's bank account. D. Consumer electronic funds transfers are not subject to Article 4A. E. Uniform Contracts Code Article 2 governs commercial wire transfers.

Which of the following is an INCORRECT statement regarding discharge from liability on negotiable instruments? A. Generally, all parties to a negotiable instrument are discharged from liability if the party primarily liable on the instrument pays it in full to the holder of the instrument. B. When a party other than a primary obligor pays a negotiable instrument, that party and all subsequent parties to the instrument are discharged from liability. C. Generally, all parties to a negotiable instrument are discharged from liability if a drawee in good faith pays an unaccepted draft or check in full to the holder. D. To be discharged from liability on a negotiable instrument means to be relived from liability on the instrument. E. The Uniform Contracts Code specifies when and how certain parties are discharged from liability on negotiable instruments.

Which of the following is an INCORRECT statement regarding immigration in the United States? A. Currently, the immigration laws of the United States are administered by the U.S. Citizenship and Immigration Services (USCIS). B. The USCIS is part of the U.S. Department of Homeland Security. C. The USCIS processes immigrant visa and naturalization petitions. D. Two major forms of foreign guest worker visas are the H-1B and EB-1 visas. E. Prior to 1921, there were many restrictions on immigration to the United States.

Which of the following is an INCORRECT statement regarding the functions of negotiable instruments? A. Without negotiable instruments, the "credit economy" of the United States and other modern industrial countries would not be possible. B. Some forms of negotiable instruments extend credit from one party to another. C. Negotiable instruments often serve as record-keeping devices. D. Certain forms of negotiable instruments, such as checks, serve as substitutes for money. E. As securities, negotiable instruments represent ownership in a corporation.

Which of the following is an INCORRECT statement regarding the Dodd-Frank Wall Street Reform and Consumer Protection Act? A. The Act reorganized and streamlined the federal government agencies that regulate the banking industry. B. The CFPB can adopt rules to regulate the activities of banks, financial institutions, payday lenders, and debt counselling firms. C. The Act increased the powers and strengthened bank regulatory oversight by federal agencies. D. The Act requires mortgage lenders to make a reasonable and good faith determination that a borrower has the ability to repay the loan. E. The Act created the Consumer Product Safety Commission.

Which of the following is an INCORRECT statement regarding cashier's checks? A. The purchaser does not have to have a checking account at the bank. B. With a cashier's check, the holder serves as payee. C. A cashier's check is a two-party check. D. With a cashier's check, the issuing bank serves as both the drawer and the drawee. E. Usually, a specific payee is not named.

Which of the following is not a universal (real) defense? A. material alteration B. fraud in the inception C. extreme duress D. illegality E. breach of contract

Which of the following makes it an unfair labor practice for a labor union to interfere with an employee who wishes to form or join a union? A. Labor Management Relations Act B. National Labor Relations Act section 7. C. Labor Management Reporting and Disclosure Act D. National Labor Relations Act section 8(a). E. National Labor Relations Act section 8(b).

Which of the following statements about union elections is true? A. If 30% or more of employees sign consent cards to form a union, management must permit the union. B. If 50% or more of employees sign consent cards to form a union, management must permit the union. C. Unions elections must be held on the request of any employee. D. If less than 50% of employees sign consent cards to form a union, a union election will not be held. E. If less than 30% of employees sign consent cards to form a union, a union election will not be held.

______________ occurs when an employer adopts a work rule that is neutral on its face but causes an adverse impact on a protected class. A. Sexual harassment B. Disparate treatment C. Gender discrimination D. A bona fide occupational requirement E. Disparate impact

A(n) ___________ on a negotiable instrument can be any symbol that is (1) handwritten, typed, printed, stamped, or made in almost any other manner and (2) executed or adopted by a party to authenticate a writing. A. principal B. qualified indorser C. indorser D. unqualified indorser E. signature

________________ replace(s) checks in that customers can use them to make purchases. A. Direct deposit B. Automated teller machines C. Online banking D. Point-of-sale terminals E. Debit cards

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