FSE-217 BUSINESS LAW

An agency is terminated by operation of the law if which of the following conditions occur?

Death or incapacity of either principal or agent

An agent owes which of the following duties to his principal?

Loyalty and good faith

A funeral director tells a family, " I'll have my man go by your house to pick up you folks at 5:30 this evening with my limo" The funeral home is actually renting the car and driver from a livery service. What happens if there's an accident?

Probably the funeral director is liable since he held out the car and driver as his own.

When one party to a contract breaches it, the other party has the right to sue for breach of contract, but he must exercise this right within the time fixed by a statute which is called

Statute of Limitations.

The law of the land in the United States is the

U.S. Constitution

The highest court of the land in the United States is the

U.S. Supreme Court

When finding a remains, the first question whould be __________ rather than 'who is it?'

What is it?

A written agreement such as a deed or a bond delivered to a third person. He is to deliver it to the grantee only upon performance of fullfillment of a specific condition. This type of agreement is known as:

a conditional

One who receives possession of another's property for sale on commission is

a factor

A charge against another's property as security for a debt or claim is

a lien

Personal effects and clothing of the deceased are best accounted for by utilizing:

a personal effects form

The deposit of tangible personal property as security for some debt or obligation is

a pledge

The consideration of an insurance policy is

a premium.

A process may be referred to as

a summons.

A foreign corporation is one that is chartered in

another state.

The most common method of creating an agency is by

appointment

The means whereby one party conveys his rights in a contract to another who is not a party to the original contract is called

assignment

The dissection of a dead human remains for the educational of learning value derived therein is termed:

autopsy

In a bailment, the person who retains title but gives up possession of the goods is the

bailor

A document of title which sets forth the contract between the shipper and carrier is the

bill of lading

The right to declare dividends depends upon the discretion of the

board of directors

Law which is concerned primarily with those rules of conduct involving financial transactions between individuals or legal entitles is

business law.

The doctrine of stare decisis is concerned with

case law

A draft drawn on a bank and payable on demand is a

check

The recorder in state and federal courts is the

clerk.

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

compensatory damages.

The failure to volunteer or reveal information not requested is termed

concealment

The only person who can legally order a postmortem examination, besides the next of kin, is the:

coroner/medical examiner

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)

corporation

For the average citizen, the most important courts of the state court system are the

courts of original general jurisdiction.

A person to whom a debt is owed is called a:

creditor

A punishable offense against society is defined as a

crime.

A breach of contractual obligation other than money is

default

The right a minor has to avoid a contract is termed

disaffirmance.

The death of a shareholder of a corporation:

does not cause a change in the corporation

A means of destroying another's free will by obtaining his consent to a contract by means of threat to do him some harm is:

duress

Through the power of _____________, land may be acquired from the private sector for use as a public cemetery.

eminent domain

A corporation has a distinct existence separate and apart from the existence of its individual members which is known as a (an)

entity

What is right and just refers to

equity.

Usury is a term which refers to

excess interest

A crime usually punishable by death or incarceration in a penitentiary for more than one year is a

felony.

A term involving a relation of trust and confidence is called:

fiduciary

In a partnership, each partner is liable:

for all of the firm's debts

When one promises to refrain from doing something, his conduct is known as

forbearance.

A contract under seal is called

formal

Parties who acquire rights superior to those of the original owner are known as

holder in due course.

When the buyer makes a selection of goods which are to puchased from the seller, the goods are classified as

identified goods.

Price fixing agreements are

illegal

The _________________ estate is one in which the liabilities exceed the essets of the estate.

insolvent

A contract in which two or more persons are bound both jointly and inidividually is known as a

joint and several contracts.

The power or authority which each court has to hear cases is called

jurisdiction.

Courts concerned with delinquent, dependent, and neglected children are called

juvenile courts.

Rules of civil conduct commanding what is right and prohibiting what is wrong defines

law.

Which one of the following is primarily liable on a promissory note?

maker

Person who sign a promissory note and obligate themselves to pay at maturity are called the

makers

Failure to exercise reasonable care toward another party is known as

negligence.

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

negotiable instruments

Is a funeral director liable for a volunteer pallbearer that closes the car door on the fingers of another volunteer pallbearer?

no

Is malice a necessary element before you can be charged with the desecration of a grave?

no

The party who makes the offer is the

offeror

The laws of city councils are called

ordinances.

The person protected against a loss is the

policy holder.

The party who appoints an agent is the

principal

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 certain sum of money to a bearer is a

promissory note.

Damages in excess of those required to compensate the plaintiff for the wrong done are

punitive.

Land, timber,minerals, building, and other man-made property permanently attached to land are called

real property

What is the basic principle controlling the amount of the funeral bill that may be allowed as a claim in an estate?

reasonableness

Defamation of character by spoken words or gestures is

slander

Courts that have exclusive jurisdiction of bankruptcy matters, claims against the United States, and patent and copyright cases are defined as

special federal courts.

Laws enacted by legislative bodies are

statutes

The owners of a corporation are known as

stockholders

Personal property which can be seen and touched is ____________ personal property.

tangible

A person who dies leaving a valid will is called a/an:

testator

In the field of business law, the most important statute is

the Uniform Commercial Code

Which of the following persons would most likely have the primary rights to control funeral arrangements?

the decendent's adult daughter

A breach and the filing of a will following the death is known as:

tort

When the duty of care that a motorist owes other motorists and pedestrians is breached and results in injury or damage to another, that motorist has committed a

tort

A partnership engaged in the buying and selling of merchandise is a(n)

trading partnership

Money or securities whose title is vested in a person and held for the benefit of named beneficiaries is known as a:

trust fund

Another term for the insurer is

underwriter.

A contract which is based upon acts being done is consideration for a promise is called

unilateral contract.

Any rate of interest above the maximum rate allowable by law is said to be:

usurious

A contract enforced by the courts is:

valid

The decision of a jury is the

verdict.

A contract in which undue influence was proven is considered

voidable

Contracts in which fraud is proven are considered

voidable

Indorsements of commercial paper include which of the following?

2, 3 and 4 2. Blank indorsement 3. Qualified indorsement 4. Restrictive indorsement

For certain contracts to be enforceable they must be in writing according to the Statute of Frauds. They include

3 and 4 3. Contracts for sales of \$500 or more 4. Contracts that can't be completed in one year

The two essential elements of a contract are

3 and 4 3. There must be an offer 4. There must be acceptance

The requirement for a valid offer includes which of the following?

1 and 3 1. It must appear to be seriously intended 3. It must be communicated to the offeree

Orders and decrees from governmental agencies which have the force of law is considered

administrative law.

A man appointed by the court to supervise an estate when a will has not been made is property known as a/an:

administrator

The contract between a principal and an agent creates a relationship called

agency

If a person has the right to make decisions concerning the disposal of a deceased human remains, they also have the right to:

all of the preceding

The party appointed by another to act in his/her name in forming contracts with third parties is

an agent

An agent that has been appointed by a sealed written authorization which states that the agent is to act in the principal's behalf is

an attorney in fact

The right that one person has to use the property of another for a special purpose is known as

an easement

A lien or mortgage against real property is

an encumbrance

A reducing term insurance policy plus savings acccount is called

an endowment policy.

A contract in which the parties make known their intentions by words is

an express contract