REVIEW LEGAL ENVIRONMENT OF BUSINESS FINAL EXAM SP 2019( really spring 2021)
____ 79. Does the law require that an indorsement on a check be on the back and within one and a half inches of the trailing edge?
*No*
6. Commercial paper is(are):
?Checks, Credit Cards and Debit Cards.?
1. The U. S. court system is established to:
?Issue a verdict.?
____ 42. A draft:
?Must be payable in the United States.?
5. A warranty is terminated by:
?The phrase "AS IS"?
____ 24. In order to establish fraud to invalidate a contract:
A false statement could be made recklessly rather than intentionally.
2. A business tort:
Allows a the wronged party to recover money damages
___ 8. In order to have a valid contract there must be:
An offer and an acceptance.
____ 34. It is NOT a contract injuring the public service to agree to:
Appear before a public authority to oppose passage of a bill.
____ 1. Contracts:
Are binding on all parties
____ 41. A valid stop payment order on a check:
Binds a bank for six months if the order is oral.
____ 13. An offer can be accepted:
By putting a properly mailed acceptance in a mailbox.
____ 3. Simple contracts:
Can be implied from the conduct of the parties.
____ 26. A mutual mistake as to value, quality, or price:
Does not affect the validity of a contract.
____ 23. A mutual mistake makes a contract defective when:
Enforcing the contract would cause a harsh result.
____ 30. The courts will:
Generally leave the parties to a private gambling contract where it finds them.
____ 2. A voidable contract:
Gives one party the choice to abide by it or reject it.
____ 40. The Consumer Product Safety Commission:
Has broad power to promulgate safety standards for many products.
____ 16. A new contract replacing an old one is enforceable:
If features are added that benefit both parties.
____ 14. An intended acceptance that varies the offer:
Is a rejection of the original offer.
____ 33. A contract that limits the freedom of marriage:
Is contrary to public policy.
____ 43. A check is a special type of draft which:
Is drawn on a bank and payable on demand.
____ 39. The warranty against encumbrances:
Is made by all sellers.
____ 29. A contract is that is not for a lawful purpose to be achieved in a lawful manner:
Is normally void.
____ 18. Partial payment of a past-due debt:
Is not consideration for the cancellation of the balance of the debt.
____ 17. Refraining from doing something is valid consideration when the act refrained from:
Is something the promisor has a right to do.
____ 12. A sales letter is an offer if:
It is a personal sales letter containing an offer.
____ 45. Among the duties a bank owes its customer, the depositor-drawer, are to:
Maintain secrecy regarding information acquired by it in connection with the depositor-bank relationship.
____ 21. A mutual mistake concerning a material fact:
Makes the contract unenforceable.
____ 44. A postdated check:
May be paid by the bank before its date.
____ 31. A person who operates a business or profession without the required license:
May not be competent to operate the business or profession.
____ 28. If a contract is entered into as a result of fraud, duress, or undue influence, the innocent party:
May ratify the contract by some act or word indicating an intention to be bound.
____ 7. A valid offer:
Must appear to be seriously intended.
4. Mary and Sue, both adults, make a contract to purchase a car. Which statement is NOT true?
Must be for an illegal purpose.
____ 47.. Must a minor always disaffirm a voidable contract during minority or within a reasonable time after becoming of age?
No
____ 49.. May a minor ratify a contract at any time?
No
____ 50.. According to most courts, is a loan to enable a person to gamble a gambling debt?
No
____ 54.. Is an oral contract to sell mineral rights enforceable?
No
____ 55. Must the note or memorandum required by the Statute of Frauds always set forth all the material terms of the transaction?
No
____ 56. Is a note actually a type of draft?
No
____ 60. Can an unsigned instrument be negotiable?
No
____ 70. May a note still be negotiable when the amount in words on the instrument calls for a different amount than the figures call for?
No
____ 71. Is an instrument payable in gold bullion negotiable?
No
____ 74. Is order paper negotiated as soon as it is indorsed by the person to whom it is then payable?
No
____ 76. Does a restrictive indorsement prohibit further negotiation of an instrument?
No
____ 77. If an instrument is payable to "Betty or Bob Jones" must both Betty and Bob indorse it in order to negotiate it?
No
____ 78. Whenever a negotiable instrument has multiple payees must all of them indorse it if the word "and" is not between them all?
No
____ 80. Does return of a check lacking a proper indorsment constitute dishonor?
No
____ _57. Is order paper negotiated merely by handing the paper to another person?
No
____ _58.. Does the law require a person to accept a negotiable instrument in payment of a debt?
No
_____48. Is the age in which a person is considered a minor the same in all states?
No
____ 6. Unjust enrichment:
Offends our ethical principles.
____ 25. A contract would be invalid as a result of duress if:
One party to a contract threatened to harm the other party"s child.
____ 5. If Adams advertises a $5,000 reward for information about the robbery of his store and Jessup tells him who robbed the store:
Only Adams has made a promise.
____ 37. Full warranties:
Permit a refund or replacement if the product contains a defect after reasonable attempts to remedy it.
____ 20. The doctrine of promissory estoppel:
Requires the promisor to reasonably expect the promise to induce action by the promisee.
3. A contract does not require:
That it be written.
____ 35. Which of the following statements is a warranty:
The "Cheesier" pizza has a pound of cheese
____ 9. For an offer to be accepted:
The acceptance must be communicated to the person making the offer.
____ 19. If Agnes agrees to give $1,000 to her college:
The agreement is enforceable without consideration.
____ 15. A promise to pay part of a debt constitutes consideration for cancellation of the entire debt if:
The amount of the debt is in dispute.
____ 22. When the contract specifies what is to happen in the case of a mistake:
The contract provision applies even if the law would be otherwise.
____ 27. When a contract is voidable:
The injured party may sue to have it declared void.
____ 4. Contracts are important in business because:
The law provides a remedy to a party if the other fails to perform.
____ 10. A revocation of an offer occurs when:
The revocation is communicated to the offeree prior to acceptance.
____ 36. All sellers make a warranty of:
Title.
____ 32. It is an unreasonable restraint of trade:
To contract to limit production to reduce supply.
____ 11. When no time is specified in the offer, the reasonable time an offer is open:
Varies with each case depending on the circumstances.
____ 38. The parties to a sales contract can orally agree to exclude:
Warranties if the provision is not unconscionable.
____ 46.. Does the law presume that all parties have the legal competence to contract?
Yes
____ 49.. If a person on drugs cannot understand the meaning of the contract, does that make the contract voidable?
Yes
____ 51. Are most violators of Sunday acts rarely prosecuted?
Yes
____ 52. Is an agreement not to prosecute a thief if stolen goods are returned void?
Yes
____ 72. Can a check that reads, "Pay to Jones" be negotiable?
Yes
____ 73. If no time is specified, is commercial paper payable on demand?
Yes
____ 75. May an instrument be signed by an agent?
Yes
____ 81. May notice of dishonor be given by any commercially reasonable means
Yes
____ _59. Are banks required to be able to supply legible copies of checks at a customer's request for seven years?
Yes
_____53. Is one of the advantages of a written contract that its existence cannot be denied?
Yes
7. As an employee you will receive orders/directions from:
Your employer.