Compend Business Law
When an agent receives his authority through a contract with a principal agency is created by A appointment B bequest C default D estoppel
Appointment
A draft drawn on a bank and payable on demand is A premium B dividend C bequest D check
Check
The damages awarded an injured party in a contract in which the injured party is entitled to compensation for the exact amount of the loss are called A nominal damage B compensatory damages C punitive damages D liquidated damages
Conpensatory Damages
The one who ships by common carrier is called the A carrier B consignor C consignee D pawn
Consignor
The maximum amount of interest that may be charged is called the A capital rate B legal rate C contract rate D prime rate
Contract rate
An association of individuals united for a common purpose and permitted by law to use a common name and to change its members without dissolution of the association is a(an) A corporation B assignment C bailment D partnership
Corporation
Written instruments drawn in a special form, which can be transferred from person to person as a substitute for money or as instruments of credit are called A wills B bailments C negotiable instruments D contracts
Negotiable instruments
A small amount awarded when there is technical breach but no injury generally one dollar A compensatory damages B punitive damages C liquidated damages D nominal damages
Nominal Damages
All but one of the following are important duties of the principal to his agent A abide by the terms of the contract B indemnification C compensation D novation
Novation
All physical items that are not real property are classed as ___ property A personal B perpetual C short-term D general
Personal
Land, timber, minerals, buildings, and other man-made property permanently attached to land are called ___ property A real B implied C general D limited
Real
When a principal terminates the agency because of a breach of material part of the contract of employment by the agent, the agency is terminated by A proxy B statute C revocation D quit claim
Revocation
The owners of a corporation are known as A directors B stockholders C makers D drawee
Stockholders
When the duty of care that a motorist owes other motorists and pedestrians is breached and results in injury or damage to another a ____ has been committed A verdict B forgery C tort D conversion
Tort
An agreement that is not legally binding A valid contract B simple contract C unenforceable contract D implied contract
Unenforceable Contract
A contract made by an intoxicated person is A void B voidable C valid D simple
Voidable
A written disposition of property real or personal to take effect at the death of an individual is called A will B lease C deed D promissory note
Will
A special agent whose task is to bring two contracting parties together A independent contractor B attorney in fact C broker D power of attorney
Broker
Whatever the promisor demands and receives as a price for a promise is considered to be A novation B ratification C consideration D authority
Consideration
The election to avoid a contract is called A forbearance B ratification C novation D disaffirmance
Disaffirmance
There are two general ways in which agencies may be terminated one of which is by operation of law and the other is by A endorsement B acts of parties C compensation D proxy
Acts of parties
A person appointed by the court to oversee the deceased estate is called A heir B executor C legatee D administrator
Administrator
The contract between a principal and an agent creates a relationship called A novation B assignment C agency D partnership
Agency
A valid contract that is enforceable must meet which of the following requirements A mutual agreement B competent parties C consideration D all of these
All of these
In order to be enforceable a valid contract must meet which of the following requirements A competent parties B consideration C lawful purpose D all of these
All of these
The means whereby one party conveys his rights in a contract to another who is not a party to the original contract is called A Bill of lading B Contract of agency C novation D assignment
Assignment
When a funeral director has the personal effects of a dead human body in his possession he is properly termed a A bailee B bailor C inn keeper D common carrier
Bailee
If the payee of commercial paper is indicated as "myself", "cash", "payroll", or some similar name the term is equivalent to A acceptor B drawer C bearer D payee
Bearer
A mutual exchange of promises makes a contract A voidable B bilateral C unilateral D void
Bilateral
The right to declare dividends in a corporation belongs to the A stockholders B board of directors C share holders D beneficiary
Board of Directors
The right to declare dividends rest upon the discretion of A the shareholders B stockholders C board of directors D stock owners
Board of Directors
A funeral director may serve an estate as A administrator B executor C both of the above D none of these
Both of these
A failure or refusal to perform contractual obligations A breach B fraud C duress D ratification
Breach
An addition or modification of a will is known as a A gift B letters testamentary C deed D codicil
Codicil
Customs which have come to be recognized by the courts as law describes A administrative law B case law C common law D criminal law
Common Law
Which of the following involves judge-made law A equity law B police power C common law D canon law
Common Law
When a funeral director has a dead human body in his care he is properly termed a A bailee B bailor C custodian D none of these
Custodian
In addition to his express authority a general agent has authority which one in his position usually exercises and this is known as A estoppel B limited C customary D breach
Customary
The decision to avoid a contract is called A ratification B disaffirmance C forbearance D novation
Dissaffirmance
The election to avoid a contract is referred to as A forbearance B ratification C disaffirmance D novation
Dissaffirmance
The profits of a corporation belong to the corporation until set aside by the directors for distribution as A drafts B patients C dividends D deeds
Dividends
The person who is ordered to pay a draft is called the A drawee B payee C bailor D offeror
Drawee
The person who executes a draft, such as a bill of exchange, trade acceptance, or a check is referred to as the A payee B bearer C drawee D drawer
Drawer
A means of destroying anther person's free will by obtaining consent to a contract by means of a threat to do him some harm is A fraud B duress C undue influence D tort
Duress
A corporation has a distinct existence separate and apart from the existence of its individual members which is know as a(an) A entity B joint venture C abatement D annuity
Entity
Barred from asserting ownership and denying the right of another person to sell the property to a good-faith purchaser is called A acceptance B chattel C estoppel D usury
Estoppel
When a person by words or conduct leads another person to believe that a third person is his agent the relationship of agency is created by A appointment B legacy C forgery D estoppel
Estoppel
A personal representative of the decedent appointed in the will to carry out the provisions of the will is called A devisee B administrator C executor D surrogate
Executor
A 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
A statement of guarantee by the seller is called A implied warranty B constructive warranty C limited warranty D express warranty
Express warranty
A term involving a relationship of trust is known as A bailment B usury C fiduciary D custody
Fiduciary
Any agreement that is based on the promise of trust is called A canon law B fiduciary agreement C administrative agreement D common agreement
Fiduciary Agreement
When one promises to refrain from doing something his conduct is known as A consideration B forbearance C disaffirmance D ratification
Forbearance
Which of the following would be a corporation that is chartered in another state? A alien corporation B domestic corporation C private corporation D foreign corporation
Foreign Corporation
A contract under seal is called A simple B executed C executory D formal
Formal
One who induces another to enter into a contract as a result of an intentionally or recklessly false statement of a material fact is guilty of A fraud B duress C undue influence D perjury
Fraud
One who is authorized by a principle to transact all of the principal's business at a particular place or of a particular kind is called a ____ agent A special B legal C principal D general
General
If an agent discloses confidential information this is a breach of A good faith B redemption C concealment D legacy
Good Faith
With this type of sale, the seller bears the risk and expenses until the goods are delivered at a point designated A consignment sale B goods sold COD C goods sold FOB D auction sale
Goods sold FOB
Property rights consisting merely of evidences of ownership of property, such as copyrights, checks, notes, and stocks are _________ personal property A real B mixed C intangible D watered
Intangible
When a person dies without a will he is said to die A testate B intestate C executor D none of these
Intestate
The power or authority which each court has to hear cases is called A forbearance B disaffirmance C jurisdiction D judicial power
Jurisdiction
Harming or injuring a person by defaming him/her in writing is known as A libel B assault C slander D battery
Libel
A person who executes a promissory note is called the A drafter B maker C holder D endorser
Maker
When agency is created by unforeseen emergency through the pledging of another's credit agency is created by A forbearance B necessity C ratification D delivery
Necessity
The substitution of a new party for the original party who is to perform is A contract of agency B assignment C novation D ratification
Novation
The laws of city councils are called A statutes B ordinances C torts D constitutions
Ordinances
"Spoken words" A police power B stare decisis C parole evidence D formal law
Parole Evidence
This states that complete written contracts may not be modified by oral testimony unless evidence of fraud exists A Statutes of Frauds B Parole evidence rule C Usury rule D Formal contract rule
Parole evidence rule
You receive an offer in the mail containing no stipulations as to the acceptance and you decide to return your acceptance by mail. The agreement is complete when the acceptance is: A received by the offeror B placed in the mail by the offeree C received by the offeree D placed in the mail by the offeror
Placed in the mail by the offeree
The consideration that an insured pays for protection is known as A policyholder B face amount C premium D amount due
Premium
The filing and proving of the will following death is called A lawsuit B accounting C probate D specific performance
Probate
An unconditional written promise made by one person to another, signed by the maker, engaging to pay on demand or at a fixed future time, a sum certain in money to order or to bearer is a A Bill of Sale B tort C promissory note D codicil
Promissory Note
Anything that may be owned, possessed, used, or disposed of for a price is called A slander B property C estoppel D usury
Property
The approval of an act previously done by another in a person's name without authority is known as A assignment B usury C ratification D novation
Ratification
The restatement of one's willingness to be bound by his promises made during minority is called A ratification B novation C disaffirmance D forbearance
Ratification
Unilateral act of holder giving up rights in the instrument or against a party to it A fiduciary B renunciation C special endorsement D debenture
Renunciation
The action used to recover possession of property unlawfully detained A novation B replevin C abatement D forbearance
Replevin
Which of the following means stare decisis A unwritten law B common law C stand by the decision D stature law
Stand by the decision
The statute listing certain classes of contracts which must be in writing to be enforceable is called A Uniform Commercial Code B Statue of Limitations C Statute of Fraud D Statute of Contracts
Statute of Fraud
When one party to a contract breaches it the other party has the right to sue for breach of contract but they must exercise this right within the time fixed by a statute which is called A Uniform Commercial Code B Statute of Limitations C Statute of Frauds D Statute of Time
Statute of Limitations
Which of the following is considered personal property A land B house C stocks D all of these
Stocks
Personal property which can be seen and touched is ____ personal property A converted B voidable C tangible D special
Tangible
A person who dies leaving a valid will is called a A testator B intestate C administrator D donor
Testator
A breach of the duty of care one individual has toward others is called: A criminal B duress C tort D usury
Tort
Law designed to compensate the aggrieved not to punish the wrongdoer is A state B business C criminal D tort
Tort
The purpose of ___law is to compensate the aggrieved not to punish the wrongdoer A business B tort C criminal D college
Tort
Any rate of interest above the maximum allowable by law is said to be A fiduciary B usurious C illegal rate D prime rate
Usurious
A contract which is enforceable by the courts is known as A simple B valid C formal D voidable
Valid
A contract made by a legally declared insane person is A void B valid C voidable D simple
Void
A contract that is of no legal effect is A simple B valid C void D voidable
Void
A contract where there are mutual mistakes as to the existence of the subject matter will render a contract A void B voidable C valid D simple
Void
A contract which is not enforceable by law A valid B simple C void D voidable
Void
A mistake made by both parties regarding a fact makes a contract A valid B simple C void D voidable
Void
Mutual mistakes as to the existence of the subject matter renders a contract A void B valid C voidable D simple
Void
A contract in which duress is proven is considered A valid B void C voidable D simple
Voidable
A contract in which undue influence is proven, is considered to be A valid B void C voidable D formal
Voidable
A contract that may set aside by at least one of the parties is: A void B simple C valid D voidable
Voidable
An enforceable agreement that can be set aside by one party is called A valid B void C voidable D executed
Voidable
Duress makes a contract A valid B simple C void D voidable
Voidable