BLAW/FINA2244 Exam #4

Which of the following countries is not a member of the North American Fee Trade Agreement:

Brazil

The government agency charged with monitoring food and drug safety is the:

Food and Drug Administration

The decision to pull orange juice from a store shelves and remove it from the stream of commerce due to the possibility of harmful contaminates is made by what regulatory agency:

The Food and Drug Administration

Which of the following agencies has primary responsibility for sanitation of meat, poultry, and eggs:

U.S. Department of Agriculture

Debt collection usually begins with:

a letter stating that the account is past due

Warranty of title means:

a seller is the rightful owner of the goods being sold

Which of the following is an industry that is greatly affected by NAFTA:

agriculture, automobile and textiles

Which of the following debts are not extinguished by a Chapter 7 bankruptcy?

all of the other choices

Commercial leases are often much more detailed than residential leases. A common provision of a commercial lease would be:

all of the other choices are correct

The Fair Debt Collection Practices Act prohibits the following by debt collectors except:

all of the other choices are prohibited

According to the FTC, which of the following things would indicate an unfair act or practice:

all of the other specific choices are correct

All of the following are factors in determining one's credit score:

all of the other specific choices are correct

Which is the UCC's requirements for an instrument to be negotiable:

all of the other specific choices are correct

Which of the following is a main source of international commercial law:

all of the other specific choices are correct

Which of the following is part of the FTC's three part test for deciding whether a particular act or practice is deceptive:

all of the other specific choices are correct

Which of the following would be a reason that the U.S. government would restrict the export of a good:

all of the other specific choices are correct

Which of the following items are banned from being imported into the U.S.:

all of the specific choices are banned

Chapter 11 Bankruptcies, which are filed by businesses:

allow a business to keep operating under reorganization of its activities and its debts

In a sale under the UCC, title to goods passes when the goods:

any of the other choices would be allowed

A seller or buyer is considered a merchant by the UCC when he:

any of the other specific choices

Unlike express warranties, implied warranties:

are automatically imposed on sellers unless they specifically disclaim them

A secured creditor is one who:

can take a debtor's property to try to satisfy the debt

As a creditor, a business should

determine the debtor's ability to repay and establish debt collection practices

Internationally, the most visible franchises are:

fast food restrants

Article 2 of the UCC covers the sale of:

goods

Suppose parties to a contract that is under the UCC fail to specify some term. The UCC:

has rules to fill the gap about a silent term

Business transactions that involve entities from two or more countries are defined as:

international business

Bankruptcy law:

is federal statutory law, primarily the Bankruptcy Code

If the principal does not pay the creditor, and the surety has to satisfy the debt, the principal:

is obligated to repay the surety

An art gallery sells fake "authorized" Vincent Van Gogh prints to clients for $50,000 each, telling buyers their purchases are good investments. If the FTC sues, the gallery will:

lose because its actions meet the FTC test for deception

Truth in Lending refers to the requirement that creditors:

must disclose all relevant terms in credit transactions

In a wholly owned subsidiary, the foreign business:

owns the whole operation

Under the common law, contract modifications must be supported by new consideration to be binding on the parties. Under UCC Article 2:

parties need no provide new consideration to modify an existing sales contract

The UCC's remedies for breach of contract for the sale of goods are intended to:

place the nonbreaching party in the same position as if the contract had been performed according to its terms

International businesses face risks that include:

political, financial and regulatory risks

The intent of the Nutrition Labeling and Education Act is to:

prevent misleading product claims

The Food and Drug Administration:

prohibits the sale of drugs without FDA approval

Nutrition labeling does not require which of the following to be listed per serving portion:

riboflavin

According to the UCC's Statute of Frauds all:

sales of goods worth more than $500 must be in writing

A financial institution that receives a promissory note has the right to:

sell the note to another party

Negotiable instruments:

substitute for cash

The major export-promotion agency in the U.S. is:

the Commerce Department

Federal regulation of the relationship between consumers and creditors is based on an umbrella law that contains many credit laws. The name of that umbrella law is: the Fair Consumer Credit Act

the Consumer Credit Protection Act

Credit discrimination on the basis of race, sex, color, religion, national origin, marital status, receipt of public benefits, the good-faith exercise of the applicant's rights under any part of the CCPA, or age is prohibited by:

the Equal Credit Opportunity Act

A guarantor is generally the same as :

the surety

If a debtor cannot meet credit obligations it is said:

to default

Restrictions on a country's imports are generally imposed for which of the following reasons:

to protect a countries domestic industries from foreign competition

The UCC's purpose is:

to simplify, clarify and modernize the law governing commercial transactions

The seller's basic obligation under the UCC is too:

transfer and deliver goods that conform to the contract to the buyer

Under a Chapter 13 proceeding, debts must be repaid usually:

within five years