Business Law - Midterm

An executory contract is defined as: a. A contract that is required to be created in a special form or manner of creation. b. A contract that may be set aside or avoided by one of the parties. c. A contract where the terms of agreement are specified in words. d. A contract in which the terms have bot been fully carried out by all parties.

A contract in which the terms have not been fully carried out by all parties.

A bill of lading refers to: a. A form signed by an officer of a vessel evidencing the receipt of a certain consignment on board and which does not serve as a document of title. b. A proof of identity that a consignee must deliver to a carrier prior to receiving the goods that have been transported. c. A receipt and contract between the shipper of a particular good and a carrier. d. An agreement between the owner of a vessel and a merchant, by which a ship is hired for the transport of goods for a defined period.

A receipt and contract between the shipper of a particular good and the carrier.

The difference between a sale and a contract to sell is that: a. A sale always requires the price to be paid up front by the seller while a contract does not. b. A sale involves an immediate transfer of title from one party to another while a contract to sell does not. c. A contract to sell involves the immediate transfer of cash to the seller while a sale does not. d. A contract to sell involves the immediate transfer of title from one party to another while a sale does not.

A sale involves an immediate transfer of title from one party to another while a contract to sell does not.

Which of the following is an example of a consignment? a. Arthie sells 10 sacks of wheat to Ben at the market place. b. Arthie sends a shipment of farm produce to Ben for sale. c. Arthie delivers a motorcycle to Ben for servicing. d. Arthie sends one ton of wheat to Ben's warehouse for storage.

Arthie sends a shipment of farm produce to ben at the market place.

Which of the following is most likely to be a tort based on negligence? a. Automobile accidents. b. Commercial disparagement. c. Battery. d. Assault.

Automobile accidents

Jayden contracts to sell Rachel a violin for $10,000, based on an appraisal of the instrument. Their contract provides that even if the appraisal is later found to be mistaken, the sale price will not be altered. One month after the sale, Rachel learns that the violin is only worth $5,000. Which of the following is true: a. Jayden must refund Rachel $5,000, because the appraisal was mistaken. b. The contract is unenforceable, because the appraisal was mistaken. c. The contract is void, because the sale is fraudulent. d. Because the contract specified what would happen in the case of a mistake, the sale price will not be altered.

Because the contract specified what would happen in the case of a mistake, the sale price will not be altered.

Which of the following best describes the difference between civil law and criminal law? a. In civil law, a defendant is entitled to an attorney, regardless of his or her ability to pay for one. Whereas criminal defendants do not have a right to legal representation. b. Civil law deals with the enforcement or protection of private rights, whereas criminal law deals with offense against society. c. Penalties under civil law are more severe than penalties under criminal law. d. The standard of proof required to convict a defendant is greater in a civil case than in a criminal case.

Civil law deals with the enforcement or protection of private rights, whereas criminal law deals with offenses against society.

A written request to a court to settle a dispute is called a: a. Complaint or petition. b. Plaintiff. c. Trial. d. Discovery.

Complaint or petition

The unauthorized exercise of ownership rights over another's property is known as: a. Conversion b. Accession c. Bailment d. Rescission

Conversion

Which of the following is most likely to fall into the category of intangible personal property? a. Annual growing crops b. Knowledge c. Copyrights d. Land

Copyrights

Which of the following can be a writing sufficient to satisfy the Statute of Frauds? a. Unsigned purchase orders stating a quantity. b. A cash register receipt stating a quantity with no customer name. c. Emails with an electronic signature stating a quantity. d. Unsigned invoices not stating a quantity.

Emails with an electronic signature stating a quantity.

A contract is void if parties to a contract are mutually mistaken about their expectations. a. True b. False

False

All agreements are contracts. a. True b. False

False

All contracts must be in writing to be enforceable. a. True b. False

False

An express warranty applies even if defects are actually known to the buyer, or defects are so apparent that no special skill is required to detect them. a. True b. False

False

An offer made in jest that does not appear to be seriously intended to an offeree is considered a valid offer. a. True b. False

False

For a promise to constitute consideration, the promise must impose an obligation on the person making it. a. True b. False

False

If a decision of an administrative agency conflicts with a statute enacted by a higher legislative body, the agency decision will prevail. a. True b. False

False

If an adult purchases personal property from a minor, the adult has only a voidable title to the property. a. True b. False

False

Implied warranty arises as to fitness of used property for ordinary use from a sale made by a casual seller. a. True b. False

False

In order for a sale to have taken place, the purchased goods need to be delivered to the buyer immediately. a. True b. False

False

Land is generally considered as intangible personal property. a. True b. False

False

Ratification to a contract can be made any time before reaching majority. a. True b. False

False

The law states that a unilateral contract can be formed when performance is started. a. True b. False

False

There is no difference between a void contract and an unenforceable contract. a. True b. False

False

To recover damages for an intentional tort, the plaintiff is required to prove that there was a breach of duty by the tortfeasor to the plaintiff. a. True b. False

False

Writing is required when the person against whom enforcement of a sales contract is sought voluntarily admits, in the course of legal proceedings, to having made the sales contract. a. True b. False

False

When one refrains or promises to refrain from doing something, this conduct is known as: a. Duress b. Negligence c. Disaffirmation d. Forbearance

Forbearance

Which of the following is true of government regulation of business? a. Government regulations are used to eliminate abuse in business. b. Government regulations only affect the operation of a small number of businesses. c. Government regulations do not affect product prices. d. Government regulations are used to improve quality of life for only certain sections of society.

Government regulations are used to eliminate abuse in business.

Which of the following statements is true about bailments? a. In some cases, a bailment may exist when the recipient does not return the actual goods. b. Title is transferred in a bailment, along with possession of an object for a short period of time. c. A bailment cannot be established without actual delivery and acceptance of the goods. d. Bailments are always governed by express contracts.

In some cases, a bailment may exist when the recipient does not return the actual goods.

Which of the following is true of the liability of a common carrier of people? a. It can only be liable for gross negligence. b. It must provide an extraordinary degree of care while passengers are in the terminal. c. It begins when the passenger enters the waiting platform. d. Once a passenger disembarks, all liability ends.

It begins when the passenger enters the waiting platform.

Which of the following is true of quasi-contracts? a. It generally offends ethical principles. b. It is an unenforceable contract. c. It prevents the unjust enrichment of a party. d. It is always formed by an adult with a minor.

It prevents the unjust enrichment of a party.

A _________ provides someone with an absolute title to his/her invention for a certain period of time. a. Trademark b. Patent c. Logo d. Copyright

Patent

The purpose of antitrust laws is to: a. Promote competition among businesses. b. Promote a monopoly for flourishing businesses. c. Promote restraint of trade within the state. d. Provide legal exceptions for businesses that are flourishing.

Promote competition among businesses.

An offeree's inquiry about the terms of an offer that differ from the offeror's terms will have what effect? a. The offer will be rejected. b. The inquiry will not reject the offer, and if the offeror says no, the original offer may still be accepted if it has not been revoked. c. The offer will be revoked. d. The inquiry will be considered a counteroffer.

The inquiry will not reject the offer, and if the offeror says no, the original offer may still be accepted if it has not been revoked.

A bailment can be created by the unspoken conduct of the parties. a. True b. False

True

A common carrier may refuse to provide transport for goods if it does not have proper equipment. a. True b. False

True

A common carrier of people is required to assist passengers when necessary for alighting. a. True b. False

True

A finder of lost property has a right of possession against all but the true owner, as long as the finder has not committed a wrong of some kind. a. True b. False

True

A signature can be initials, electronic or stamped, so long as it was made with necessary intent. a. True b. False

True

Administrative agencies primarily set policy through the issuance of rules and regulations. a. True b. False

True

As a general rule, the adequacy of the consideration is irrelevant because the law allows bargains. a. True b. False

True

Contracts made by people who were intoxicated to such an extent that they would not have entered into it if they were sober, makes the contract voidable. a. True b. False

True

In an FOB contract, the seller bears the risk of loss until the goods are delivered to the FOB point designated. a. True b. False

True

Ordinarily, for a mistake to invalidate a contract, the mistake must be a mutual one about a material fact. a. True b. False

True

Silence constitutes acceptance to an offer if it is reasonable in consideration of previous dealings that the offeree to notify the offeror of non-acceptance a. True b. False

True

The U.S. Supreme Court is the highest tribunal land in the land, and its decisions are binding on all other courts. a. True b. False

True

The location where a case is to be tried is known as a venue. a. True b. False

True

The promise or obligation of each party to a contract must be supported by consideration in order for the contract to be valid. a. True b. False

True

A contract must be for a lawful purpose, which must be achieved in a lawful manner, otherwise the contract is: a. Void b. Ratified c. Rescinded d. Voidable

Void