BUS M33 Midterm #3

What was the result in Alaska Pacific Trading Co. v. Eagon Forest Products Inc., the case in the textbook in which the defendant rejected a shipment of logs?

a. by not shipping the logs in a timely manner according to the contract, the seller failed to satisfy the perfect tender rule, thereby releasing the defendant buyer from its duty to accept the logs

A _____________is a particular event that must occur in order for a party's duty to arise. a). condition precedent b). condition subsequent c). concurrent condition d). subordinate condition e). concordant condition

a. condition precedent

Which of the following describes conditions explicitly states in the contract? a). express b). executory c). concordant d). concurrent e). both express and concordant

a. express

Which of the following is the most common type of agency? a). expressed agency b). implied agency c). apparent agency d). agency by ratification e). agency by estoppel

a. expressed agency

Items attached to real estate that are used for business activities are known as trade ________ and _________ treated as goods under the Uniform Commercial Code. a). fixtures; are b). fixtures; are not c). surplus; are d). surplus; are not e). carriage; are

a. fixtures; are

Which of the following is not a form of authority upon which an agency relationship can be created? a). expressed agency b). implied agency c). apparent agency d). agency by recission e). agency by ratification

d. agency by recission

Which of the following are examples of negotiable instruments? a). checks and oral agreements b). drafts and stocks c). notes and oral agreements d). checks, drafts, and notes e). checks and drafts, but not notes

d. checks, drafts, and notes

Which of the following are the two primary kinds of performance? a). partial and significant b). partial and complete c). partial and substantial d). complete and substantial e). complete and significant

d. complete and substantial

A party's contractual obligations are terminated through _________? a). performance b). the failure of a condition to occur c). operation of law d). performance, the failure of a condition to occur, or operation of law e). performance and the failure of a condition to occur, but not by the operation of law

d. performance, the failure of a condition to occur, or operation of law

Which of the following do not meet the Uniform Commercial definition of a good? a). real estate b). corporate stocks c). copyrights d). real estate, corporate stocks, and copyrights do not meet the definition of a good e). real estate and corporate stocks do not meet the definition of a good, but copyrights do meet the definition of a good as a type of intellectual property

d. real estate, corporate stocks, and copyrights do not meet the definition of a good

What are the three sources of law that interpret sales contracts? a). state common law, federal common law, and the Uniform Contracts Code b). state common law, federal common law, and the Uniform Commercial Code c). state common law, state statutory law, and the Uniform Contracts Code d). state common law, state statutory law, and the Uniform Commercial Code e). state statutory law, federal statutory law, and the Uniform Contracts Code

d. state common law, state statutory law, and the Uniform Commercial Code

Which of the following determines the obligations of sellers and buyers? a). terms the parties outline in agreements b). custom c). rules outlines by the Uniform Commercial Code d). terms the parties outline in agreements, custom, and rules outlined by the Uniform Commercial Code e). terms the parties outline in agreements and custom, but not rules outlined by the Uniform Commercial Code

d. terms the parties outline in agreements, custom, and rules outlined by the Uniform Commercial Code

How did the appeals court rule in Steven A. B. Hannington v Trustees of the University of Pennsylvania and Dr. Mark Bernstein, the case in the textbook where the plaintiff, a student suing for alleged wrongful expulsion, attempted to avoid a settlement agreement entered into by an attorney acting on his behalf?

d. the settlement agreement would be enforced based on the doctrine of apparent authority, regardless of whether the attorney exceeded the scope of his actual authority

What law does the judicial system rely on to clarify the obligations of a seller and a buyer if their agreement is unclear? a). the united states constitution b) common law c). the restatement of contracts d). the uniform commercial code e). local and municipal ordinances

d. the uniform commercial code

A written document containing the signature of the creator that makes an unconditional promise or order to pay a sum certain in money at either a time certain or demand is called a ___________.

negotiable instrument

A common law standard known as _________ requires that the seller deliver goods in conformity with the terms of the contract, right down to the last detail

perfect tender rule

A document that gives an agent the authority to sign legal documents on behalf of the principal is known as a(n) ___________

power of attorney

An agent is authorized to act for and on behalf of the _________.

principal

The Uniform Commercial Code (UCC) was created in __

1952

If Article 2 of the Uniform Commercial Code is silent on an issue of sales contract formation or interpretation, what law applies?

Common law

Which of the following articles of the Uniform Commercial Code governs sales contracts? a). 2 b). 2(A) c). 4 d). 4(A) e). 6

a. 2

Which of the following is generally defined as a relationship between a principal and an agent? a). agency b). principality c). collusion d). employment e). concordance

a. agency

If goods are identified at the time the parties entered into a contract and these goods are destroyed through no fault of the parties before risk passes to the buyer, which of the following is true? a). the parties are excused from performance b). the seller has 7 days within which to cure c). the seller has 10 days within which to cure d). the seller has 30 days within which to cure e). the seller has 60 days within which to cure

a. the parties are excused from performance

Collateral is the property that is subject to the security interest, and may include intangibles. Intangibles include __________.

accounts, goodwill, and literary rights

In a(n) _______ relationship, the agent is authorized to act for and on behalf of the principal, who hires the agent to represent him or her.

agency

Which of the following describes conditions that are inferred from the nature and language of the contract? a). express b). implied c). concordant d). concurrent e). both express and concordant

b. implied

A(n) _________occurs whenever a party fails to perform her obligations under the contract.

breach

Which of the following is a substitute for cash? a). a negated instrument b). a promised instrument c). a negotiable instrument d). a promissory agreement e). a negotiable oral promise

c. a negotiable instrument

Which of the following is a person who has a duty to act primarily for another person's benefit? a). principal b). employer c). fiduciary d). trustor e). bailor

c. fiduciary

In a sales contract, how can the buyer make payment?

cash, credit arrangements, or substitute for cash

A promise made by a bank to pay a payee a certain amount of money at a future time is called a _________.

certificate of deposit

When the parties are merchants, the Uniform Commercial Code requires _________.

commercial reasonableness

Contracts containing conditions affecting the performance obligations of the parties are called__________contracts

conditional

A(n) __________ is the person or party that has an obligation to the secured party.

debtor

With a(n) _________ instrument, the payee or subsequent holder can demand actual payment at any time

demand

An order by a drawer to a drawee to pay a payee is known as a ___________

draft

Which of the following articles of the Uniform Commercial Code governs secured transactions in personal property? a). article 1 b). article 4 c). article 5 d). article 7 e). article 9

e. article 9

Which of the following are examples of goods? a). consumer goods b). farm products c). documents of title d). consumer goods, farm products, and documents of title e). consumer goods and farm products, but not documents of title

e. consumer goods and farm products, but not documents of title

According to the Uniform Commercial Code, which of the following refers to the history of dealings between the parties in the particular contract at issue? a). trade dess b). course of dealing c). commercial equity d). usage of trade e). course of performance

e. course of performance

Which of the following are examples of collateral? a). goods and indispensable paper b). goods and intangibles c). goods and proceeds d). goods, indispensable paper, and proceeds e). goods, indispensable paper, intangibles, and proceeds

e. goods, indispensable paper, intangibles, and proceeds

If a principal agrees to hire no other agent for a period of time or until a particular job is done, the principal and agent have entered into a(n) ______ agency contract.

exclusive

A(n) _________breach occurs when a party unjustifiably fails to substantially perform his obligations under the contract.

material breach

Under Article 2(A) of the Uniform Commercial Code, "a transfer of the right to possession and use of goods for a term in return for consideration" is a(n) ________.

lease

Under Article 2(A) of the Uniform Commercial Code, a person who transfers the right to possession and use of goods under a lease is a(n) ___________.

lessor

A __________ transaction is a transaction in which the payment of a debt is guaranteed by the debtor's personal property owned by the debtor.

secured

An interest in personal property or fixtures that secures payment or performance of an obligation is called a(n) _________.

secured interest

The person or party that holds the interest in the secured property is the ________

secured property

An agreement in which the debtor gives a secured interest to the secured party is a(n) ____________.

security agreement

Under which of the following does a principal give authority to an agent only for the specific areas or purposes listed in the agency agreement?

specific power of attorney

With a ______________ instrument, payment can be made only at a specific time designated in the future.

time