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.