Exam 1 BUL 2

Mena, a female, and Neil, a male, are employees of Operational Processes Corporation. Mena regularly e-mails sexually explicit images to Neal via Operational's network. Neil finds this offensive. This is hostile work environment harassment none of the choices quid pro quo harassment a constructive discharge

hostile work environment harassment

Any debtor who is eligible for bankruptcy relief under Chapter 7 is eligible under Chapter 11. true false

true

Checks received after a certain time can be deferred for posting until the next banking day. true false

true

if an agent has represented himself or herself as possessing special skills, the agent is expected to use them true false

true

Kiosk Jewelers borrows from Lender Inc. and Mortgage Company, using the same collateral. Only Mortgage Company has a perfected security interest. Kiosk defaults on both loans. The party with first rights to the collateral is Kiosk Jewelers none of the choices Lender Inc Mortgage Company

Mortgage Company

United Contractors Inc. holds a lien on Vista Estate's real property. This property can be sold to satisfy the debt if, before the sale, notice is given to -Vista Estate -Vista Estate's other creditors -the general public -the state in which the property is located

Vista Estate

Kris transfers a note, on which Liu is the maker, to Mia, who takes it for value and in good faith. Mia knows that Kris breached the contract underlying the note, giving Liu a defense against payment. With respect to this note, Mia is a knowledgable holder in due course an ordinary holder an ordinary holder in due course a knowledgable acceptor

an ordinary holder

Quinn signs a check "pay to the order of Ronda" drawn on Quinn's account in Suburban Bank. Quinn has $400 in his account but the amount of the check is $500, which the bank pays. This is -a dishonored check -an overdraft -a certified check -a stale check

an overdraft

Denny, a certified public accountant and an investor, and Ethel, an insurance salesperson and a realtor, may create an agency relationship for a business purpose only any legal purpose any purpose no purpose

any legal purpose

Dana draws a check on Equity Bank, and she asks the bank to agree in advance to accept the check by setting aside sufficient funds to cover the amount. If Equity agrees, the check will be considered cashed certified deposited provisionally credited

certified

Beal, a member of a protected class, applies for a job with Coffee Brew Corporation, but fails the company's employment test and is not hired. Beal believes that the test has an unintentionally discriminatory effect. If so, this is a constructive discharge disparate-impact discrimination disparate-treatment discrimination not discrimination

disparate-impact discrimination

the doctrine of respondeat superior imposes liability for an agent's tort on a principle without regard to the personal fault of the agent true false

false

Jane signs an instrument using a "J" with a swirl around it. With this mark for a signature, the instrument is -negotiable -nonnegotiable, because an initial does not state the signer's name -nonnegotiable, because an initial is not a signature -nonnegotiable, because a simple initial implies a lack of binding intent

negotiable

The UCC does not define the term default. This encourages the parties to a secured transaction to -include standards that align with the concept of unconscionability -run counter to the UCC's provision regarding good faith -stipulate the conditions that will constitute a default -provide the creditor with the maximum protection possible

stipulate the conditions that will constitute a default

Beca signs a check "pay to the order of City College" drawn on Beca's account in Delta Bank to pay her tuition. Beca is none of the choices the drawee the drawer the payee

the drawer

only the debtor may file a plan under chapter 13 true false

true

the destruction of an original check after the creation of a substitute check prevents the check from being paid twice. true false

true

To force a debtor with twelve or more creditors into bankruptcy proceedings, at least three of those who join in the petition must have unsecured claims that add up to at least $155 $1,575 $15,775 $157,750

$15,775

LNG LLC and Mainline Utility Corp enter a contract for a sale of liquefied natural gas. LNG draws a draft unconditionally ordering Mainline to pay $50,000 to LNG's order in sixty days. Mainline signs and dates the draft. LNG can sell the draft to -Mainline only -LNG's bank only -Any party after the draft has been paid -Any party before payment is due

Any party before payment is due

Emily, an employee of Farm Supplies, Inc., files a suit against her employer, alleging sexual harassment by her supervisor Gowan. The employer may be liable if it had effective harassment policies and complaint procedures that were followed by none of the employees Emily Emily's co-workers Gowan

Emily

Daisy signs a check "pay to the order of Ewan" drawn on Daisy's account in Finance Bank. Graham forges Ewan's indorsement. Finance Bank pays the check. Most likely​ -Daisy will be liable for the amount -Ewan will have to pay Daisy for the amount -Finance Bank will have to recredit Daisy's account -the Federal Reserve will reimburse all parties for their costs

Finance Bank will have to recredit Daisy's account

Rubin writes a check drawn on his account at Clearwater Bank and payable to the order of Gwyn. The bank does not pay the check. Rubin is -Absolved of liability on the check -Liable to Gwyn for the amount of the check -Liable to the bank for the amount of the check -Entitled to payment of the amount of the check from Qwyn

Liable to Gwyn for the amount of the check

Quito writes a check to Roy on Quito's account at Sterling Bank. The bank dishonors the check because Quito has insufficient funds in his account. The bank is liable to Quito Roy Quito, Roy, and the payees on Quito's subsequent checks no one

Quito

Fitness Club employs only female staff to assist its female-only members in the club. Greg, a forty-one-year-old male, applies for a staff job, but is not hired. In his suit against the club under the Civil Rights Act, the club most likely has -a prima facie case -a bona fide occupational qualification defense -a business necessity defense -immunity

a bona fide occupational qualification defense

Mechanical Engineering Inc. may be liable for the sexual harassment of an employee if the company knew or should have known about the harassment, failed to take immediate action, and the harassment was committed by the employee's previous employer a company supervisor a competitor any of the choices

a company supervisor

Bey indicates that he is acting as an agent on behalf of an unidentified client—Cuisine LLC—when he enters into a contract with Diners Bistro. Cuisine is a disclosed principle an apparent agent an undisclosed principle a partially disclosed principle

a partially disclosed principle

Construction Inc. wants to agree with its creditors on a plan under which it pays a portion of its debt and is discharged of the rest. To accomplish this goal, the corporation should file a petition in bankruptcy under Chapter 11 for relief through a liquidation a reorganization a repayment plan an adjustment plan

a reorganization

Dana operated Energy Inc. a corporation in the fuel-supply business. Dana wants to create a plan under which the firm pays a portion of its debts, is discharged of the remainder, and is allowed to continue in business. Energy should file a petition in bankruptcy for relief through a liquidation a reorganization a repayment plan an adjustment plan

a reorganization

Emily writes and signs a check payable to "Festival Cinema." Georg, Festival's manager, indorses the check "For deposit only." This is a blank indoresement a qualified indorsement a restrictive indorsement a special indoresment

a restrictive indorsement

Dan signs a check "pay to the order of Elton" drawn on Dan's account in Fidelity Bank and dates the check "May 1". Elton presents the check to the bank for payment on December 15. This is a cashier's check an overdraft a certified check a stale check

a stale check

Lending Bank files a financing statement regarding a transaction with Metro Company. To be valid, the financing statement must contain all of the following except -a description of the collateral -a statement of the purpose of the transaction -Lending's name -Metro's name

a statement of the purpose of the transaction

Business Sales Inc.'s debt to Cartage Company is past due. Cartage brings a legal action against Business Sales to collect. To ensure that a judgment in the creditor's favor will be collectible, Cartage asks the court to order the seizure of the debtor's property. This is a request for an artisan's lien a mechanic's lien a writ of attachment a writ of execution

a writ of attachment

Brewery Company's debt to Credit Service is past due. Credit obtains a judgment against Brewery, but the firm refuses to pay. Credit asks the court to order the seizure of Brewery's property. This is a request for an artisan's lien a mechanic's lien a writ of attachment a writ of execution

a writ of execution

Compared to Chapter 7 and 11 plans, a Chapter 13 plan -permits creditors to force a debtor into involuntary bankruptcy -allows a debtor to retain possession of his or her assets -is more expensive and more complicated -permits any interested party to file a repayment plan

allows a debtor to retain possession of his or her assets

Watercraft Inc. employs Vern as a sales agent for a trial period. At the end of the period, Watercraft and Vern disagree on the amount of the commissions Vern is due for sales that he made. Vern may demand a constructive trust an accounting nothing specific performance

an accounting

Rosa introduces Sal to her friend Trey as "my associate." Sal purports to act as Rosa's agent in a business transaction with Trey. If Rosa is liable for Sal's actions, it will be because their relationship is a nullified agency an agency by estoppel an agency by operation of law not an agency relationship

an agency by estoppel

Based on Nan's conduct, Odel reasonably believes that Poppy has the authority to act on Nan's behalf even though Poppy does not have the actual authority to do so. In this circumstance, Poppy has apparent authority express authority implied authority no authority

apparent authority

Darla serves in a representative capacity for Ellen's Botanicals. To accomplish the objectives of this relationship, Darla's authority can be implied by by contradiction by custom by any subjective measure none of the choices

by custom

Dallas presents an uncertified check for payment more than six months after its date. The check was drawn by Emma on her account in First Bank. If the bank follows the usual banking practice in such a case, it will cash the check consult Emma refuse to cash the check ask Dallas what he would prefer

consult Emma

Curly Fries Inc. grants its agent Dian an exclusive territory in which to sell its products. The company cannot compete with Dian in that territory under the duty of none of the choices cooperation indemnification reimbursement

cooperation

At 1 A.M., in front of EZ Credit Corporation, which is closed, Frank buys a $500 promissory note for $50 from Greg. When presented with Frank's demand for payment, Diane, the maker of the note, could successfully claim that Frank -acquired the note with notice that it was overdue -did not acquire the instrument in good faith -did not give value for the instrument -none of the choices

did not acquire the instrument in good faith

Reg borrows funds from Suburban Bank secured by Reg's house. Reg defaults on the debt. The bank's options include -retaining the security interest and pursuing a judicial remedy -destroying the collateral and collecting the unpaid debt from Reg -disposing of the collateral in any commercially reasonable manner -repossessing the collateral and disavowing the security interest

disposing of the collateral in any commercially reasonable manner

An affirmative action plan may be found to be unconstitutional because it does not attempt to remedy past discrimination does make use of quotas or preferences has not succeeded in remedying discrimination has succeeded and subsequently been eliminated

does not attempt to remedy past discrimination

A gratuitous agent can be liable to a principle for breach of contract, even in the absence of a contract, but not liable for the negligent performance of the deal true false

false

A principle may be liable for an agent's or an employee's tort, with the exception of negligence, which is an unintentional tort for which the agent or employee is vicariously liable true false

false

A secured party perfects a claim by filing a financing statement with the debtor true false

false

An agency relationship is based on the attributes of power, control, and financial self-interest - not the trust and confidence of a fiduciary relationship true false

false

Debts to remain after a liquidation are not discharged, and the debtor retains his or her obligation to pay them true false

false

Even if a customer's negligence substantially contributes to a forgery of the drawer's signature on a check, the bank is obliged to re-credit the customer's account for the amount of the check true false

false

If an employer sued for an adverse employment action on the basis of discrimination articulates a legal reason for the action, the employer wins true false

false

Online payment systems are not yet among the most common types of electronic fund transfer systems true false

false

Providing only a debtor's trade name in a financing statement is sufficient for perfection even if the trade name is not the legal name of the business true false

false

Retail Store Inc. can give Secure Loan Company a security interest in future inventory to be acquired by the debtor true false

false

The bank on which a check is drawn is the depositary bank true false

false

To create an enforceable security interest, the collateral must be in the possession of neither the debtor nor the secured party, but in escrow true false

false

To qualify for a Chapter 7 bankruptcy, a debtor must complete a means test to determine whether the debtor has been living within his or her means. true false

false

Under chapter 13, all debts are dischargeable true false

false

Under the Age of Discrimination in Employment Act, if an employer offers a legitimate reason for its action, an employee's case is held to be a pretext. true false

false

Workers in the United States generally have less protection against sexual harassment in the workplace than workers in other countries true false

false

a debtor must have title to collateral to give a secured party a security interest in the property true false

false

a person who cannot legally enter into a certain contract directly can do indirectly through an agent true false

false

a security interest can cover only property in which the debtor has present rights true false

false

agency relationships come about by voluntary consent and agreement of the parties - consideration is required, and the agreement must be in writing true false

false

an undisclosed principal is one whose identity it totally unknown by an agent and a third party at the time of a contract is made true false

false

both parties to an agency relationship have the power and the right to terminate the relationship at any time true false

false

businesses must be technically insolvent to file for bankruptcy relief true false

false

consideration to support a simple contract is not sufficient value to support the acquisition of a security interest true false

false

each state permits a debtor in bankruptcy to retain the family home in order to preserve some equity to pay any debts that are discharged true false

false

in a chapter 7 proceeding, at a meeting of creditors, one of the creditors is elected to take over the debtor's assets true false

false

once a bankruptcy petition is properly filed, creditors can commence or continue most legal actions against the debtor to recover claims true false

false

the lack or failure of consideration is a personal defense and can be used to avoid payment to an ordinary holder, an HDC, and a holder through an HDC true false

false

Rhea writes a check for $100 drawn on Savers Credit Union and presents it to Timpani Jewelers for payment. If the check is not backed by sufficient funds, Rhea may be prosecuted for forgery fraud negligence all of the choices

fraud

Oren believes that Plumbing Contractor discriminated against him on the basis of race. He files a suit against Plumbing under the Civil Rights Act. To establish a prima facie case of employment discrimination, Oren must show that he is a member of a protected class the employer has no legal defenses against the claim discriminatory intent motivated the employer's act no other firm in the industry has committed a discriminatory act

he is a member of a protected class

Kelly Autos Inc. borrows funds from Loan Company under a security agreement. Later, Kelly's buys new vehicles to add its inventory. Loan Company has a security interest in the new vehicles -if the security agreement included an after-acquired property clause -if the lender has not yet filed a financing statement -if Kelly's bought the new vehicles with the lender's funds -none of the choices

if the security agreement included an after-acquired property clause

Under the Bankruptcy Code, the means test is used to -keep higher-income people from abusing the bankruptcy process -force more people to file for Chapter 7 bankruptcy -determine the validity of a statement or claim by any party in interest -prioritize the claims of the creditors in an involuntary proceeding

keep higher-income people from abusing the bankruptcy process

Gil and Hera are employees of IT Solutions Inc. Under the Equal Pay Act, IT Solutions can legitimately pay different wages to male and female employees on the basis of merit martial status similar work at the same facility gender

merit

under Chapter 7, once the proceeds have been distributed, the obligations of the debtor most likely to be discharged are -taxes accruing within the last 3 years -claims based on the debtor's willful or malicious conduct or fraud -none of the choices -domestic-support obligations

none of the choices

Karen writes on a piece of paper, "I owe you $600," signs it, and gives it to Lou. This instrument is -negotiable -nonnegotiable, because it does not include an express promise to pay -nonnegotiable, because it does not recite any consideration -nonnegotiable, because it does not state any conditions to payment

nonnegotiable, because it does not include an express promise to pay

Ben signs a promissory note for $1,500 in favor of Community College. The note is undated but specifies that it is "payable one month after date." This note is -negotiable -nonnegotiable, because 1 month is not a reasonable time -nonnegotiable, because there is no option to pay early -nonnegotiable, because the maturity date cannot be determined from the face of the instrument

nonnegotiable, because the maturity date cannot be determined from the face of the instrument

Edna is the payee of a bearer instrument—a promissory note in the amount of $10,000. Flem offers to irrigate Edna's ranch next week in exchange for the note. She agrees and delivers the note to Flem. Flem is -an HDC, because he promised to perform services at a future date -an HDC, because the transferor was the original payee on the note -not an HDC, because he did not acquire the instrument in good faith -not an HDC, because he did not yet give value for the instrument

not an HDC, because he did not yet give value for the instrument

Beth, an accountant for Credits & Debits, acquires a negotiable instrument from Ellen by promising to pay its face value in thirty days. Beth acquires the status of an HDC when she -acquires possession of the negotiable instrument -agrees with Ellen to buy the negotiable instrument -pays the face value due on the instrument -transfers the instrument to another party

pays the face value due on the instrument

Resort Company replaces Sharon, a forty-five-year-old employee, with Terry. Sharon files a suit against the employer under the Age Discrimination in Employment Act. To establish a prima facie case, she must show, among other things, that she is deserving of higher pay than the individual who replaced her generally more dependable than the individual who replaced her older than the person who replaced her qualified for the position

qualified for the position

Olive is a supervisor for Pasta!, a restaurant. Qua is a Pasta! employee. The owner announces that some employees will be discharged. Olive tells Qua that for sexual favors, she will give him an excellent performance review and recommend a raise. This is employer relatiation hostile-environment harassment none of the choices quid pro quo harassment

quid pro quo harassment

Suva is an agent for Tax Accountants, Inc. On the firm's behalf and at its request, Suva pays Uzo for specially coded software. Suva's right to obtain the amount of the payment from Tax Accountants arises under the duty of none of the choices compensation indemnification reimbursement

reimbursement

Muni Investment Company signs a check payable to Notes & Loans, Inc., to buy a promissory note executed by Omni Corporation. This check -does not constitute sufficient consideration for HDC status -does not satisfy the value requirement for HDC status -satisfies the consideration requirement for HDC status -satisfies the value requirement for HDC status

satisfies the value requirement for HDC status

Jon, a paraplegic, applies for a broadcaster's job with a radio station. The manager says, "You meet all our requirements. But we need someone who can move around the studio without accommodation." Most likely, Jon could recover from the station under no federal law Title VII of the Civil Rights Act the Age of Discrimination in Employment Act the Americans with Disabilities Act

the Americans with Disabilities Act

Faye forges Greta's signature on a check "payable to the order of Faye" drawn on Greta's account in Home Bank. Most likely, if the bank pays the check -the Federal Reserve will reimburse all parties for their costs -the loss will be apportioned among all of the bank's customers -Greta will be liable for the amount -the bank will have to recredit Greta's account

the bank will have to recredit Greta's account

Curt issues a check payable to Discount Mart. Ethel, Discount's cashier, forges the store's indoresement and deposits the check in her bank account. Curt's bank, Farmers Bank, pays the check. Curt can recover from Ethel, but not the bank the bank, which cannot recover from Ethel the bank, which can recover from Ethel neither Ethel nor the bank

the bank, which can recover from Ethel

Bern, a salesperson at a Carpet & Tile store, tells Dan, a customer, "Buy your flooring here, and I'll install it for less than the store would charge." Dan buys carpeting, which Bern installs for half the store's price. Bern keeps the money. With respect to the store, Bern has breached no duty the duty of loyalty the duty of performance the duty of obedience

the duty of loyalty

Larry is an agent for Mary. She gives him clear instructions to enter into contracts on her behalf only on Mondays, Wednesdays, or Fridays. He enters into a contract on her behalf on Tuesday. Larry has breached no duty the duty of loyalty the duty of performance the duty of obedience

the duty of obedience

a bankruptcy trustee must determine whether the debtor's financial situation warrants relief based on a comparison of the debtor's income with -the profit of the debtor's creditors -the income of other families in the same state -the wealth available to the debtor's peers -the debtor's expenses

the income of other families in the same state

Franco buys a sofa from Grey at a garage sale. Franco writes Grey a check for $50 to pay for the couch. Grey is none of the choices the drawee the drawer the payee

the payee

Marv files a suit against the state of New Hampshire, alleging employment discrimination under the Age Discrimination in Employment Act. The state asks the court to dismiss the suit. The court is most likely to rule that the state is immune from the suit the suit can proceed the plaintiff is immune from any defense the court is immune from the request

the state is immune from the suit

With respect to processing checks for payment, the UCC governs the relationships of banks with their customers the Federal Reserve only other banks all of the choices

their customers

to operate practically as a substitute for cash or a credit device, a negotiable instrument must be -conditional without the risk of being collectable -transferable without the danger of being uncollectible -qualified with a promise to set aside the qualification -payable without recourse

transferable without the danger of being uncollectible

A check may fall under Uniform Commercial Code Article 3 as a negotiable instrument and be subject to UCC Article 4 in the course of collection. true false

true

A plaintiff who sues on the basis of disparate-treatment discrimination in hiring must make out a prima facie case of illegal discrimination, and will win in the absence of a legally acceptable employer defense true false

true

A trade acceptance is created when, as part of a deal to buy wheat from Moyo, Naruta signs a draft ordering the buyer to pay for the wheat within 90 days true false

true

An employer may be able to avoid liability for sexual harassment by taking prompt remedial action true false

true

Any transaction in which the payment of a debt is guaranteed by personal property owned or held by the debtor is a secured transaction true false

true

Business as we know it could not exist without secured transaction because otherwise sellers and lenders would be less likely to sell and lend on credit true false

true

Generally, when an indorsement is unauthorized, the burden of loss falls on the first party to take the instrument true false

true

If only a bank's drive-through facility is open, a check deposited on Saturday will not trigger the bank's midnight deadline until the following Monday true false

true

Improper filing of a financing statement can render a security interest unperfected true false

true

Normally, an employer is liable for a supervisor's sexual harassment only if the supervisor took a tangible employment action against an employee. true false

true

Only the payee's bank can acquire the rights of a holder and negotiate a check indorsed by the payee "For deposit only." true false

true

The Age Discrimination in Employment Act extends to federal government employees but state employees are usually immune from age-based claims true false

true

To avoid the risk of loss from theft, a holder can convert a blank indorsement to a special indorsement by writing, above the signature of the indorser, the name of the indorsee true false

true

When Title VII applies to an employer, any employee - including an undocumented worker - can bring an action for employment discrimination true false

true

With an order instrument, the payee must be identified with certainty because the transfer of the instrument requires his or her signature. true false

true

a debtor who makes false statements under oath may be denied a discharge of his or her debts in the bankruptcy proceedings true false

true

a person who transfers an instrument for consideration warrants to all subsequent transferees and holders who take the instrument in good faith that all signatures on the item are authentic and authorized true false

true

a security agreement must describe the collateral because no security interest can exist unless the parties agree on the property subject to it true false

true

all bankruptcy proceedings are conducted in federal bankruptcy courts true false

true

in a chapter 7 proceeding, the bankruptcy trustee collects the debtor's estate and reduced its cash, preserving the interests of the debtor and creditors true false

true

in some situations, the court find an agency relationship where there is no formal agreement true false

true

several documents may be considered together to comprise a security agreement true false

true

whoever takes an instrument with a forged indorsement cannot become a holder because a forged indorsement does not transfer title. true false

true

Under Chapter 7, the primary effect of a discharge is to -extend the time for the debtor's payment of overdue debts -allow a creditor to collect a previous judgment on a discharged debt -force a creditor to obtain a new judgment on a discharged debt -void a judgment on a discharged debt and prohibit an action to collect it

void a judgment on a discharged debt and prohibit an action to collect it

Colin signs a note "payable to the order of Debit Bank." The bank indorses the note in blank and negotiates it to Equity Funds, which sells it to Financial Investments. Liability associated with the transfer of the note from Equity to none of the choices contractful signature warranty

warranty