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