Business Law Review
What is the difference between an agreement and a contract?
An agreement results whenever two people's minds meet on a subject but a contract only exists when the parties intend to be legally obligated by the terms of an agreement
Regulatory agencies are also called social regulatory agencies, true or false?
false
The "mailbox rule" does not apply in situations where the offeror does not receive the acceptance, true or false?
false
The law considers everyone under the age of 21 to be a minor, true or false?
false
The sale of food or drink to be consumed off the seller's premises is not a sale, true or false?
false
The statement of the seller in which the article sold is warranted or guaranteed is known as an implied warranty, true or false?
false
Kenneth was sentenced to six years in prison for forgery. In this case, Kenneth has committed a:
felony
Which of the following is an example of a bailment for the sole benefit of the bailor?
Sally leaving her car in a neighbor's garage while Sally's carport is getting a new roof
Which of the following is true of special federal courts?
They have jurisdiction limited by Congress
An executory contract is defined as:
a contract in which the terms have not been fully carried out by all parties.
A firm offer can be best defined as:
an offer that cannot be revoked for a reasonable time if no time is stated
Which of the following statements is true of the statute of limitations?
In the case of running accounts, such as purchases from department stores, the statute starts from the date of the last purchase
Which of the following is true of a collateral note?
It is a note secured by personal property
Which of the following is true of a binding contract?
It is created when the offeror clearly shows an intention to make an offer
Which of the following statements is true of fraud in execution?
It occurs when a party does not intend to sign a contract, as the nature of the writing is not understood
Which of the following is true of undue influence?
It refers to a person in a special relationship causing another's action contrary to free will
A _________________ is most commonly used when a grantor, for some reason, does not want to know exactly what is in the trust but wants to retain the benefit of the property.
blind trust
Which of the following best describes the difference between civil law and criminal law?
civil law deals with the enforcement or protection of private rights, whereas criminal law deals with offenses against society
What duties does a bank owe its depositor/drawer?
compare the signature on the depositor's check with the signature on file
A written request to a court to settle a dispute is called:
complaint or petition
A joint contract is one in which:
each obligor is bound for the performance of the entire obligation
Ryan, a college student, intends to sell his car. He contacts his friend, Luiz, and inquires whether he is interested in buying the car. Luiz finds the quoted price reasonable and buys the car from Ryan. In this scenario, Ryan is the:
offeror
Parol evidence refers to:
spoken word
The legal rate of interest is a rate:
that is applied when no rate is specified
The term disaffirmation refers to:
the election to avoid a contract or set it aside
Which of the following conditions is a prerequisite for any agreement to be legally enforceable?
the parties entering into the agreement must have the mental capacity to contract
When a party sues to enforce an alleged contract that falls under the Statute of Frauds, the law requires that:
there be a note in writing signed by the party against whom the claim for breach of contract is made
To whom must goods shipped under an order bill of lading be delivered:
to the person who presents the order bill of lading to the carrier at delivery
A check that is presented more than six months after its date is commonly called a stale check, true or false?
true
A chief officer is known as a judge in a state court of record as well as in a federal court, true or false?
true
A false statement made in the belief that it is true is known as innocent misrepresentation, true or false?
true
A foreign draft is one that shows on its face that it is drawn or payable outside the US, true or false?
true
A hotelkeeper is not liable if a guest's behavior increases the risk of a criminal attack, true or false?
true
Administrative agencies primarily set policy through the issuance of rules and regulations, true or false?
true
Appellate courts include courts of appeals and supreme court, true or false?
true
As a general, the adequacy of the consideration is irrelevant because the law allows bargains, true or false?
true
Considerations distinguishes mere agreements from legally enforceable obligations, true or false?
true
Contracts obstructing the administration of justice are unenforceable, true or false?
true
For an act to be established as a tort of injurious falsehood, the false statements of fact must be communicated by the defendant to a third person, true or false?
true
Generally, a part payment of a past-due debt is not consideration to support the creditor's promise to cancel the balance of the debt, true or false?
true
If a party intentionally and without the consent of the other party alters a written contract, the other innocent party is discharged, true or false?
true
If an act is legal at the time of entering a contract but is subsequently made illegal, the contract is discharged, true or false?
true
Many federal laws regulating business do so based on the Commerce Clause of the US Constitution, true or false?
true
Most statutes requiring a license to operate certain types of businesses or professions are enacted to protect the public from incompetent operators, true or false?
true
Only when performance is standardized, may one delegate its performance to another, true or false?
true
Punitive damages are damages paid to the plaintiff in order to punish the defendant, not to compensate the plaintiff, true or false?
true
The Racketeer Influenced and Corrupt Organizations Act includes civil sanctions as well as criminal ones, true or false?
true
The US Supreme Court is the highest tribunal in the land and its decisions are binding on all other courts, true or false?
true
The theft of trade secrets is a federal crime, true or false?
true
Which of the following is true of a warranty of merchantability?
warranty of merchantability relates only to the fitness of the product made or sold
A __________________ is a draft payable on presentation by the payee or holder.
sight draft
Which of the following warranties does an assignor make when he assigns rights under a contract to an assignee for value?
that there are no defenses available to the debtor that have not been disclosed to the assignee
To recover for a tort based on negligence, the plaintiff must show:
the breach of the tortfeasor's duty to the injured party
The use of rogue programs to produce abnormal computer behavior is an example of computer trespass, true or false?
true
Unless otherwise agreed, a merchant warrants that goods shall be delivered free of the rightful claim of any third person by way of patent or trademark infringement, true or false?
true
When one refrains or promises to refrain from doing something, this conduct is known as:
forbearance
Which of the following is true regarding parties who make mutual mistakes of law?
it will generally not invalidate a contract
Which of the following statements is true of the United Nations Convention on Contracts for the International Sale of Goods (CISG)?
the convention only covers contracts between two parties if their operations are in different countries that have adopted the convention
Which of the following is most likely to be a tort based on negligence?
automobile accidents
A constructive bailment is a bailment for the sole benefit of the bailor, true or false?
true
An offer that does not specify a particular manner of acceptance may be accepted in any manner reasonable under the circumstances, true or false?
true
If a decision of an administrative agency conflicts with a statute enacted by a higher legislative body, the agency decision will prevail, true or false?
false
Which of the following is true of the Children's Online Privacy Protection Act (COPPA)?
it imposes certain requirements on operators of websites directed to children under the age of 13
Which of the following is an example of a contract discharged by impossibility of performance?
A new law makes the contract illegal
Which of the following best describes a legatee?
A person receiving a gift of personal property
Mary contracts to sell Rachel her 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?
Because the contract specified what would happen in the case of a mistake, the sale price will not be altered
___________ wills are written entirely in longhand be the testator.
Holographic
Kenneth, aged 16, sells his car to Robin, aged 49. Later, Robin sells the car to Sarah, a third party, before Kenneth can disaffirm the contract. In this case, which of the following holds true?
Sarah can obtain good title to the property
An enforceable contract is made by an adult with a minor. Which of the following is most likely to hold true in this case?
The contract is enforceable against he adult but not against the minor
In which of the following cases will a court refuse to enforce the provision of liquidated damages on a party?
When the amount of liquidated damages fixed by the contract is unreasonable
In which case of the following situations is a state most likely to enforce a usury law?
X charges a very high rate of interest on money borrowed by Y
A bill of lading may not place additional limitations on a carrier's liability, true or false?
false
A constructive trust is also known as a purchase money trust, true or false?
false
A debt that has been prohibited from collection by a statute of limitations can never be revived, true or false?
false
A lease of real property for less than one year must be in writing in order to be binding, true or false?
false
A person receiving personal property by a will is known as a devisee, true or false?
false
An antitrust violation occurs when a business firm seeks to have cooperation within its firm to diminish competition, true or false?
false
An asignee can receive greater rights or interest than the assignor held in contract, true or false?
false
As a general rule, one's rights under a contract cannot be transferred freely, true or false?
false
Which of the following statements is true of illegal sales?
An indivisible sale with an illegal part makes the entire sale illegal
What is the chief function of the courts?
They interpret and apply the law from whatever source to a given situation
When a contract contains the words "time is of the essence," which of the following is true?
Performance on the exact date is deemed vital
What rights does a finder have to abandoned property?
a finder has title to and absolute right to possession of abandoned property
On investigation, it was found the Ken, the bookkeeper at CL Corp., had stolen money from the company's account and recorded financial transactions inaccurately to cover up for his activities. For which of the following business crimes can Ken be prosecuted?
embezzlement
The United Nations Convention on Contracts for the International Sale of Goods (CISG) does not apply to personal consumer transactions, true or false?
true
The consideration in a sales contract is known as the price, true or false?
true
An acknowledgement by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money is known as a certificate of deposit, true or false?
true
The legal term for one party benefiting unfairly at the expense of another is unjust enrichment, true or false?
true
The location where a case is to be tried is know as a venue, true or false?
true
A case of someone finding and taking possession of lost property is an example of:
a bailment for the sole benefit of the bailor
The offering of money, entertainment, or anything of value as a corrupt payment constitutes as a bribe, true or false?
true
If a contract is divisible so that the legal parts can be performed separately from the illegal parts, then the legal parts of the contract are:
enforceable
The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) seeks to:
ensure the cleanup of waste from previous business activities
The statement of the seller in which the article sold is warranted or guaranteed is known as an:
express warranty
At common law, individuals other than the parties to a contract can sue upon or seek to enforce the contract, true or false?
false
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, true or false?
false
Every state has an identical list of types of contracts required by law to be in writing in order to be enforced, true or false?
false
Felonies refer to crimes that are usually punishable by just a fine, true or false?
false
If a debtor tells a creditor "I am ready to pay you now," a sufficient tender of payment has been made, true or false?
false
Which of the following best describes a debenture?
it is an unsecured bond or note issued by a business firm
