Business law-Review Two

which of the following is an example of a contract contrary to public policy?

B agrees to appoint D as a deputy sheriff, provided he helps him win the local elections

a contract is indivisible if it can be performed in ways other than as an entity

False

How are sales contracts handled when terms are missing?

If the price term is not expressly stated, it will be held to be the reasonable price for the same goods in the market.

Which of the following is true of bailments for the sole benefit of the bailee?

any loss or damage to bailed property due to no fault of the bailee falls on the owner

The unauthorized exercise of ownership rights over another's property is known as:

conversion

The person who is ordered to pay a draft is called the:

drawee

Which of the following is most likely to happened when confusion of property belonging to two different owners occurs by accident?

each party will be deemed the owner of a proportionate part of the mass

The maker makes an indorsement by signing on the back of the instrument.

false

Which of the following statements best defines a tender of performance?

it is an offer to perform an obligation in satisfaction of the terms of a contract

Damages fixed by a contract.

liquidated

The person who executes a promissory note is called the:

maker

Which of the following acts govern the sales of movable personal property?

the uniform commercial code

which of the following is true of sunday contracts

their laws are a result of statutes

When a party sues to enforce an alleged contract, the Statute of Frauds requires that:

there be a note in writing signed by the party against whom the claim for breach of contract is made

A check is not a proper tender.

true

which or the following is true of contracts?

written evidence, composed in clear language, is more reliable than oral

AB Developers sign a contact with CL Corp., agreeing to build a $20 million office for the corporation. The construction contract was substantially performed. There were, however, a few minor breaches of the contract by AB Developers that made CL Corp. incur damages worth $10,000. Which of the following is mostlikely to be true in this scenario?

CL needs to pay the full price under the contract less the damages suffered by CL

a dentist performs services without a license is entitled to sue to collect for the services

False

contracts which are designed to limit competition are acceptable by law

False

Under the ______, it is unlawful to discriminate in price between competing buyers if the goods are of like grade, quantity, and quality

Robinson-Patman Act

Which of the following is an example of a bailment for the sole benefit of the bailor?

Sally leaving the keys of her house with her neighbor while she goes on vacation

contracts obstructing the administration of justice are unenforceable

True

many state statutes made sunday contracts illegal. most states have repealed those laws

True

the legal rate applies when parties are silent as to the rate

True

in which of the following situations is a state most likely to enforce a usury law?

X sells a plot of land at a rate higher than the maximum contract rate.

A case of someone finding and taking possession of lost property is an example of:

a bailment for the sole benefit of the bailor

Default refers to:

a breach of any contractual obligation

Which of the following does the Uniform Disposition of Unclaimed Property Act claim?

a holder of property that the law presumes is abandoned must turn the property over to the state

The difference between a sale and a contract to sell is that:

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

Which of the following types of agreements, according to the Statute of Frauds, need to be in writing?

an agreement containing a promise in consideration of marriage

which of the following is true of contracts that limit the freedom of marriage?

an agreement not to marry during minority is valid

A force majeure clause in a contract is a contract provision that excuses performance by a party when:

an extraordinary event outside the party's control occurs

Which of the following statements is true of illegal sales:

an indivisible sale with an illegal part makes the entire sale illegal

In a written contract, Sheldon agreed to tutor the children of Mrs. Smith for a certain period of time. However Sheldon, prior to starting classes, announced that he would not be able to tutor the children due to other commitments. In this case, there has been a(n):

anticipatory breach

A written order by one person directing another to pay a sum of money to a third person is known as a(n):

bill of exchange

A system of shortening the trip a bill of exchange makes from the payee to the drawee bank and then to the drawer is called:

check truncation

____ are writings drawn in a special form that can be transferred from person to person as a substitute for money or as an instrument of credit.

commercial paper

Amount of damages that are equal to the loss sustained.

compensatory

Which of the following is most likely to fall in the category of intangible personal property?

copyrights

The usual remedy for breach of contract is to sue for:

damages

A bill of sale cannot serve to prove ownership of a good.

false

A debt that has been outlawed by a statute of limitations cannot be revived.

false

A draft is also known as a promissory note.

false

A finder of abandoned goods does not hold an absolute right to its possession.

false

A lease of real property for less than one year must be in writing in order to be binding.

false

According to the Statute of Frauds, an agreement of an executor to pay the debts of the estate from the executor's personal funds, needs to be an oral contract.

false

An unconditional written promise to pay a sum of money to another is a draft.

false

Electronic signatures are legally unenforceable.

false

If a written contract appears complete, the parol evidence rule will permit modification.

false

If commercial paper is made payable to whoever has possession of it, it is called order paper.

false

If performance in a contract becomes extremely difficult after the contract is formed, it automatically discharges the contract.

false

In order for a sale to have taken place, the purchase goods need to be delivered to the buyer immediately

false

Land is generally considered as intangible person property.

false

The Statue of Frauds states that the memorandum must contain more essential terms than the written contract.

false

The Statute of Frauds does not apply when the promisor promises the debtor that the promisor will pay the debt owed to the third person.

false

The consideration in a sale contract must always be expressly stated as money or money's worth.

false

The named holder of an indorsed negotiable instrument is the indorsee.

false

The person to whom any negotiable instrument is made payable is called the drawee.

false

Title transfers at the same time in ta sale and in a contract to sell.

false

Transferring is the act of transferring ownership of a negotiable instrument to another party.

false

When a contract to sell is signed by two parties, a sale is said to have taken place.

false

an agreement not to marry certain named individuals is valid

false

Which of the following statements is true of statutes of limitations?

in the case of running accounts, such as purchases from department stores, the statue starts from the date of the last purchase

Which of the following is true of the parol evidence rule?

it allows a written contract to be modified by oral testimony if there is evidence of fraud

which of the following is true of the statute of frauds?

it applies only to executory contracts

Which of the following is true of electronic fund transfers?

it is a transfer of funds begun by a telephonic instrument

Failure to perform with ability and care normally exercised by people in a profession

malpractice

A small amount of damages awarded when there is a technical breach but no injury.

nominal

A commercial paper, which is made payable only to a named person, is called:

order paper

A _____ provides someone with an absolute title to his/her invention for a certain period of time.

patent

Amount of damages paid to one party to punish the other party.

punitive

To set aside or cancel

rescind

Compelling a party to carry out the terms of a contract

specific performance

Parol evidence refers to:

spoken words

An offer to provide money in satisfaction of a debt when one has the ability to pay is a(n):

tender of payment

Which of the following is true of identified goods

they are a type of existing goods

which of the following is true of gambling contracts

they are transactions wherein the parties stand to win or lose based on pure chance

Which of the following is true of automated teller machines?

they enable customers to pay bills

A symbol used to identify and distinguish the source of goods is called:

trademark

A copyright must be registered in order for the owner to sue for its infringement.

true

A holder who takes a negotiable instrument in good faith and for value is a holder in due course.

true

After a discharge in bankruptcy, creditors' rights of action to enforce most of the contracts of a debtor are barred.

true

An advantage that written contracts have over oral contracts is that they can be ascertained.

true

Bailments are governed by contracts.

true

Electronic fund transfers that begin at retailers when consumers want to pay for goods or services with debit cards are called point-of-sale systems.

true

Generally, a transfer initiated by a telephone call between a bank employee and a customer is an example of an electronic fund transfer.

true

If a party intentionally and without the consent of the other party alters a written contract, the other innocent party is discharged.

true

If an act is legal at the time of entering a contract but is subsequently made illegal, the contract is discharged.

true

Rules applied by courts set up by merchants in early England are known as the law merchant.

true

The consideration in a sales contract I known as the prices

true

The contract and the memorandum required by the Statute of Frauds must set forth all the material terms of the transaction.

true

The parol evidence rule assumes that a written contract represents the complete agreement.

true

The rescission of a contract releases an aggrieved party from all obligations that are yet to be performed.

true

The sale of good constitutes the largest number of contracts formed in the country's economic system

true

The term "movable personal property" as used in the UCC, does not apply to real property or intangible property.

true

The theft of trade secrets is federal crime.

true

When a court orders for specific performance, it is exercising its equity powers.

true

With a consignment, the property may be sold and then the property is not returned to the owner.

true

all contracts must be for a lawful purpose, otherwise they would be considered void

true

an attorney may contract to appear before a senate committee meeting to encourage or oppose the passage of a bill

true