Law Test 3

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

1) employs an agent or broker who holds himself out as having requisite knowledge or skill 2) by occupation presents himself as having knowledge or skill specialized to the transaction 3) regularly deals in goods of the kind involved in the transaction

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

1) it must be payable on demand or at a specified time 2) it must be written 3) it must be made to order of or bearer of 4) it must state a certain sum of money

Which of the following items are banned from being imported to the US

1) items that do not meet US pollution regulations 2) products from endangered species 3) narcotics

Which of the following our main sources of international commercial law

1) rules enacted by worldwide or regional organizations 2) laws defined by trade agreements 3) laws of individual nations

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

1) the act or practice causes substantial harm to consumers 2) the injury from the act or practice is harmful in its net effect 3) consumers cannot reasonably avoid injury

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

1) the deception is likely to mislead a reasonable consumer 2) there is a misrepresentation or omission of info in a communication to consumers 3) the deception is material

Which of the following would be a reason that the US government would restrict the export of a good

1) the sale of the export could jeopardize natural security 2) the export is a scarce raw material 3) the sale of the export could jeopardize national security and/or conflict with national policy 4) the sale of the export conflicts with national policy

All of the following are factors in determining ones credit score

1) the type of credit one Carrie's 2) the length of time one has had credit 3) the number of inquiries made into a persons credit rating 4) ones credit history

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

Agriculture, automobile, and textiles

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

Any way is fit

Unlike Xpress warranties, implied warranties:

Are automatically imposed on sellers unless they specifically disclaim them

Which of the following countries is not a member of the North American free trade agreement

Brazil

The major export promotion agency in the US is

Commerce department

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

Dispute resolution , how alterations to the property will be handled, insurance provisions, utilities

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

Equal Credit Opportunity Act

Internationally the most visible franchises are

Fast food restaurants

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

Food and drug administration

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

International business

Bankruptcy law:

Is federal statutory law, primarily the bankruptcy code

An art gallery sells fake authorized Vincent van Gogh prince to clients for $50,000 each telling buyers their purchases are good investments. If the FTC Suze, the gallery will

Lose because it's actions meet the FTC test for deception

You're the common law, contract modifications must be supported by new consideration to be binding on the parties. Under UCC article 2

Parties need not provide new consideration to modify an existing sales contract

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 FDA:

Prohibits the sale of drugs without FDA approval

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

Riboflavin

Boarding to the UCC 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

The UCC purpose is to

Simplify, clarify and modernize the law governing commercial transactions

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

The FDA

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 consumer credit protection act

Restrictions on a countries imports are generally imposed for which of the following reasons

To protect a countries domestic industries from foreign competition

Colors basic obligation under the UCC is to

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

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

US Department of agriculture

You're a chapter 13 proceeding, debt must be paid usually:

Within five years

Debt Collection usually begins with:

a letter stating that the account is past due

Chapter 11 bankruptcies which are filed by businesses:

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

A secured creditor is one who:

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

If a debtor cannot meet credit obligations it is said:

default

As a creditor, a business should:

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

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

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

is obligated to repay the surety

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

Negotiable instruments:

substitute for cash

Guarantor is generally the same as

surety