Final Exam - ACCT 340

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Jet Purple airline decides it could use another airplane. Jet Purple contacts Ronald Trump and asks Ronald to purchase the airplane from Doh-ing Airplane Company who would deliver it to Jet Purple, then Jet Purple would pay Ronald for the right to use the airplane. This type of transaction is called a(n) ___________. Question content area bottom Part 1 A. implied contract B. accommodation C. sales contract D. finance lease E. rental agreement

John's Equipment Rentals enters into a lease contract with ABC Construction for a backhoe to use in a yearlong excavation project. Under the UCC, ___________. Question content area bottom Part 1 A. John's Equipment Rentals retains the risk of loss, even after possession of the goods passes to ABC B. this is considered an ordinary lease, with ABC bearing the risk of loss as soon as the lease contract is finalized C. this is considered a finance lease, with John's Equipment Rentals bearing the risk of loss until ABC actually receives the leased goods D. this is considered an ordinary lease, with John's Equipment Rentals bearing the risk of loss until ABC actually receives the leased goods E. this is considered a finance lease, with ABC bearing the risk of loss as soon as the lease contract is finalized

Leslie borrows $50,000 from George and signs a promissory note to pay this amount plus 5% interest over 5 years in semi-annual installments. Leslie is the ______________ and George is the _________________. Question content area bottom Part 1 A. payee of a note; maker of a note B. maker of a note; payee of a note C. drawee of a note; payer of a note D. maker of a note; drawee of a note E. drawer of a note; drawee of a note

Marty Levine sees a house for sale and thinks his friend Linda Maxwell would want to buy it. Marty enters into a contract to purchase the house from the seller and signs the contract "Marty Levine, agent for Linda Maxwell." Which of the following is NOT true? Question content area bottom Part 1 A. If Linda had signed an agency agreement with Marty, Linda Maxwell would be obligated to purchase the house. B. If Linda agrees to purchase the house, there is an agency by ratification. C. Because Marty is not Linda Maxwell's agent, Linda is not bound to the contract. D. If Linda does not accept the contract, she is not bound by it. E. Because Marty is now Linda Maxwell's agent, Linda is bound to the contract.

Maya buys a car from Santiago for $10,000. If Maya signs a promissory note that promises to pay Santiago when she graduates from college and gets a job, the document would be _____. Question content area bottom Part 1 A. negotiable - it is for a fixed amount B. nonnegotiable - the promise is conditional C. negotiable - it is in writing D. negotiable - it is a promise or order to pay E. nonnegotiable - the instrument is not payable on demand or at a definite time

Most states permit foreclosure through _________________. Question content area bottom Part 1 A. deed of trust B. reconveyance C. power of sale D. surety arrangement E. mechanics lien

Most _____________ seek to cure a default by ______________. Question content area bottom Part 1 A. debtors; disposing of the collateral B. secured parties; relinquishing their security interest in the collateral C. secured parties; taking possession of the collateral D. unsecured parties; relinquishing their security interest in the collateral E. unsecured parties; taking possession of the collateral

Personal property includes _____ property such as equipment, vehicles, furniture, and jewelry, as well as _____ property such as securities, patents, trademarks, and copyrights. Question content area bottom Part 1 A. intangible; physical B. real; physical C. tangible; intangible D. tangible; real E. intangible; tangible

A(n) _____ judgment is a judgment of a court that permits a(n) _____ lender to recover other property or income from a defaulting debtor if the collateral is insufficient to repay the unpaid loan. Question content area bottom Part 1 A. summary; non-commercial B. declaratory; commercial C. deficiency; secured D. default; unsecured E. executory; secured

A(n) _____ lien is a security interest in property that was not in the possession of the debtor when the security agreement was executed. Question content area bottom Part 1 A. unsecured B. non-collateralized C. floating D. intangible E. elusive

A(n) _______ occurs when a transferor transfers the rights under a contract to the transferee. Question content area bottom Part 1 A. indorsement B. assignment C. allonge D. unqualified indorsement E. negotiation

A(n) ________ is a person who is on a landowner's or tenant's real property but has no invitation, permission, or legal right to be there. Question content area bottom Part 1 A. grantee B. invitee C. trespasser D. licensee E. grantor

Jerry, a car salesperson, warrants that a used car has been driven only 20,000 miles. If true, that would make the car worth $20,000. Jerry gives the buyer a "good deal" and sells the car for $16,000. Unfortunately, the car was worth only $10,000 because it had actually been driven 100,000 miles. If the buyer discovers that the car actually has 100,000 miles and Jerry knew that, _____. Question content area bottom Part 1 A. the buyer can recover $6,000 (the difference between $16,000 price paid and $10,000 actual value) B. the buyer can recover $4,000 (the difference between $20,000 value and $16,000 price paid) C. the buyer may not recover anything because Jerry gave them a good deal D. the buyer can recover $10,000 ($20,000 warranted value minus $10,000 actual value) E. the buyer may not recover anything because Jerry was just puffing

_____ agency occurs when an agent acts for two or more different principals in the same transaction. Question content area bottom Part 1 A. Symbiotic B. Cooperative C. Dual D. Unilateral E. Conditional

__________________ are funds advanced to a debtor from a line of credit secured by collateral. Question content area bottom Part 1 A. After-acquired properties B. Floating liens C. Sale proceeds D. Attachments E. Future advances

Question content area top Part 1 A financing statement is a document filed by a(n) _____ creditor with the appropriate government office that constructively notifies the world of his or her security interest in _____ property. Question content area bottom Part 1 A. unsecured; real B. non-commercial; real C. unsecured; personal D. secured; real E. secured; personal

Question content area top Part 1 A form of co-ownership that includes the right of survivorship is known as ________. Question content area bottom Part 1 A. tenancy in common B. a bailment C. an easement D. a life estate E. joint tenancy

Question content area top Part 1 A holder owes a duty not to ______________________ when seeking recourse against the liable parties or the collateral. Question content area bottom Part 1 A. indorse the check B. assert a universal defense C. create a transfer warranty D. impair the rights of others E. create a presentment warranty

Question content area top Part 1 A person borrows money from a bank to purchase a house. The loan is a 30-year loan, with interest and principal to be paid in equal monthly installments. If the entire amount of the loan, plus accrued interest, is due and payable in the event of a default, the loan agreement contains a(n) _______. Question content area bottom Part 1 A. prepayment penalty B. prepayment clause C. extension clause D. acceleration clause E. maker clause

Question content area top Part 1 A termination of agency where a situation arises that makes the fulfillment of the agency not possible is known as a termination ________. Question content area bottom Part 1 A. by operation of law B. by changed circumstances C. by the third party involved in the transaction D. by impossibility of performance E. by an act of the parties

Question content area top Part 1 Although the automobile industry is exempt from _____ supervision, it is subject to oversight by the _____. Question content area bottom Part 1 A. CFPB; FTC B. CPSC; EPA C. EPA; CPSC D. CPSC; CFPB E. FTC; CFPB

Question content area top Part 1 An agency can be legally terminated in all EXCEPT which of the following ways? Question content area bottom Part 1 A. the occurrence of a stated event B. if a specific purpose is achieved C. if a stated time has elapsed D. the mutual assent of the parties E. ratification of the contract by the principal

Question content area top Part 1 A _____ is a special form of _____ that is created when a depositor deposits money at a financial institution in exchange for the institution's promise to pay back the amount of the deposit plus an agreed-on rate of interest on the expiration of a set time period agreed on by the parties. Question content area bottom Part 1 A. check; draft B. certificate of deposit; note C. check; note D. certificate of deposit; draft E. check; certificate of deposit

Question content area top Part 1 Grandma writes a check to her granddaughter, Christy. Another granddaughter, Devin, steals the check, forges Christy's signature, and cashes it at the local grocery store. Who is liable? Question content area bottom Part 1 A. Devin B. no one C. Grandma D. Christy E. the grocery store

Question content area top Part 1 How long are financing statements effective if a continuation statement is not filed? Question content area bottom Part 1 A. three years B. indefinitely C. five years D. one year E. ten years

Question content area top Part 1 If a customer's data is stolen electronically from a business, the business will file a claim against their _______. Question content area bottom Part 1 A. umbrella insurance B. business interruption insurance C. key person life insurance D. product liability insurance E. cyber insurance policy

Question content area top Part 1 In a(n) _______________ transaction the lender may repossess the collateral on which the loan was given. Question content area bottom Part 1 A. credit report B. secured credit C. mechanics lien D. reconveyance E. unsecured credit

Question content area top Part 1 Sometimes principals request that agents run errands or conduct other acts on their behalf while the agent or employee is on personal business. In this case, the agent is on a _____, and most jurisdictions hold _____ liable if the agent injures someone while on such a mission. Question content area bottom Part 1 A. dual-purpose mission; the agent, but not the principal, B. dual-purpose mission; the principal, but not the agent, C. unilateral mission; neither the principal nor the agent D. dual-purpose mission; both the principal and the agent E. unilateral mission; both the principal and the agent

Question content area top Part 1 The drawer of a check is the party ________. Question content area bottom Part 1 A. who writes the check B. in possession of the instrument C. who must pay the money stated in a check D. who promises to pay the note E. who receives the money from a check

Question content area top Part 1 The duty of _____ is a fiduciary duty owed by an agent not to act adversely to the interests of the principal. Question content area bottom Part 1 A. obedience B. loyalty C. indemnification D. reservation E. reciprocity

Question content area top Part 1 Under the right to obtain specific performance, what is the name of the document that the lessee uses to order the lessor to perform the contract? Question content area bottom Part 1 A. decree of specific performance B. tendered goods C. breach of contract D. replevin action E. adequate assurance of performance

Question content area top Part 1 When does an umbrella policy make a pay out? Question content area bottom Part 1 A. when primary policy limits on other insurance policies have been exceeded B. when an accident is due to stormy conditions C. when a claim is due to rain damage D. only when rain and wind contribute to the loss E. when no other insurance exists to cover the claims

Question content area top Part 1 Which of the following is NOT true about a deficiency judgment? Question content area bottom Part 1 A. Unless otherwise agreed, after a debtor's default, if the proceeds from the disposition of collateral are not sufficient to pay the expenses incurred by the secured party for the collection and enforcement of the debt and to satisfy the debt to the secured party, the debtor is personally liable to the secured party for the payment of the deficiency. B. A secured party may bring an action to recover a deficiency judgment against the debtor. C. The parties may agree in their security agreement that the debtor will not be liable for any deficiency. D. If the underlying transaction is the sale of accounts, chattel paper, payment intangibles, or promissory notes, the debtor is entitled to any surplus and is not liable for any deficiency. E. If the underlying transaction is the sale of accounts, chattel paper, payment intangibles, or promissory notes, the debtor is not entitled to any surplus and is not liable for any deficiency.

Question content area top Part 1 Which of the following is NOT true about an agent's duties? Question content area bottom Part 1 A. An agent who enters a contract with a principal has a duty to perform the lawful duties expressed in the contract. B. An agent who does not perform his or her express duties or who fails to use the standard degree of care, skill, or diligence is liable to the principal for damages. C. An agent who enters a contract with a principal has a duty to meet the standards of reasonable care, skill, and diligence implicit in all contracts. D. An agent owes no duty to notify the principal of important information learned concerning the agency. E. Normally, an agent is required to render the same standard of care, skill, and diligence that a fictitious reasonable agent in the same occupation would render in the same locality and under the same circumstances.

Question content area top Part 1 Which of the following is an INCORRECT statement regarding the functions of negotiable instruments? Question content area bottom Part 1 A. Without negotiable instruments, the "credit economy" of the United States and other modern industrial countries would not be possible. B. Some forms of negotiable instruments extend credit from one party to another. C. Negotiable instruments often serve as record-keeping devices. D. As securities, negotiable instruments represent ownership in a corporation. E. Certain forms of negotiable instruments, such as checks, serve as substitutes for money.

Question content area top Part 1 Which of the following statements regarding chapter 7 liquidation is NOT true? Question content area bottom Part 1 A. The debtor is permitted to keep a portion of his or her assets (exempt assets). B. Chapter 7 liquidation is also called straight bankruptcy. C. The debtor's unpaid debts will be paid by the debtor's future income. D. The debtor's nonexempt property is sold for cash, and the cash is distributed to the creditors. E. The 2005 act substantially restricts the ability of many debtors to obtain a Chapter 7 liquation bankruptcy.

Question content area top Part 1 Who bears the risk of loss during shipment in a destination contract? Question content area bottom Part 1 A. seller B. carrier C. buyer D. consignee E. financing company

Question content area top Part 1 Brooke's next-door neighbor allows Brooke to run a driveway over his land. This sort of easement is known as an easement _____________. Question content area bottom Part 1 A. by prescription B. appurtenant C. by necessity D. in gross E. by reservation

Sally hires James to work as an employee at her firm. James has the ability to enter into contracts on behalf on Sally. This is called a(n) ________. Question content area bottom Part 1 A. general power of attorney B. principal-agent relationship C. implied agency D. employer-employee relationship E. principal-independent contractor relationship

Sarah purchases an automobile from a car dealership. She borrows part of the purchase price from a lender. The lender requires Sarah to give it a _____ in the automobile to secure the loan. This is a secured credit transaction with the automobile being _____ for the loan. If Sarah defaults and fails to make the required payments, the lender can _____. Question content area bottom Part 1 A. mortgage; collateral; enter a deficiency judgment B. right of redemption; protection; repossess the automobile C. right of redemption; protection; foreclose on the property D. security interest; collateral; repossess the automobile E. mortgage; collateral; repossess the automobile

Sid hires Dina, a licensed real estate broker, to serve as a buyer's agent in a real estate transaction. Sid authorizes Dina to make an offer on a piece of real estate. While in the process of making the offer, Dina learns that a medical waste facility has just acquired adjoining land. If Dina fails to tell Sid about this neighboring acquisition, she has breached her duty to ______________. Question content area bottom Part 1 A. notify B. account C. perform D. cooperate E. impute

Suppose Mary owes Hector $1,000. Hector wants Mary to pay the money to Cindy instead of to him. Hector writes out a draft that orders Mary to pay the $1,000 to Cindy. Mary agrees to this change of obligation and writes the word "accepted" on the draft and signs the draft. Hector is the _____, Mary is the _____ and acceptor of the draft, and Cindy is the _____. Question content area bottom Part 1 A. payee; drawer; drawee B. drawer; payee; drawee C. drawer; drawee; payee D. payee; drawee; drawer E. drawee; drawer; payee

Tamara sues Jerry for fraud. Tamara lost a large sum of money to Jerry when she invested in what she alleges was a fraudulent investment scheme. If Tamara is afraid that Jerry will dispose of property prior to the resolution of the lawsuit she has filed, in order to attempt to avoid paying her the funds he owes to her, she _______. Question content area bottom Part 1 A. may file for a writ of execution B. may file for a writ of attachment C. must enter into a guaranty arrangement D. must enter into a surety arrangement E. may file for a writ of garnishment

The Uniform Commercial Code's _________ rule states that a merchant who makes an offer to buy, sell, or lease goods, and assures the other party in a separate writing that the offer will be held open, cannot revoke the offer for the time stated. Question content area bottom Part 1 A. merchant B. irrevocable offer C. firm offer D. written confirmation E. course of dealing

The implied warranty of merchantability _________ to the sale of a coffee pot that is sold by a merchant who is in the business of selling kitchen appliances. The implied warranty of merchantability ________ when someone sells a coffee pot at her garage sale. Question content area bottom Part 1 A. does not apply; applies B. applies; does not apply C. sometimes applies; always applies D. applies; applies E. does not apply; does not apply

The _____ stipulates that sellers or lessors who make _____ warranties related to consumer products are forbidden from disclaiming or modifying the implied warranties of merchantability and fitness for a particular purpose. Question content area bottom Part 1 A. UCC 2A.210; express written B. Magnuson-Moss Warranty Act; express written C. UCC 2.313; implied D. UCC 2.313; express written E. Magnuson-Moss Warranty Act; implied

Title _____ of the _____ Act is also called the Consumer Financial Protection Act of 2010. Question content area bottom Part 1 A. V; Taft-Hartley B. III; Gramm-Rudman C. X; Dodd-Frank D. X; Landrum-Griffin E. V; Smoot-Hawley

To prevail under the attractive nuisance doctrine, plaintiff must prove all of the following factors EXCEPT __________. Question content area bottom Part 1 A. the utility of the defendant maintaining the condition and the burden of eliminating the danger were equal compared to the risk to children B. the child did not realize the risk involved because of his or her age C. the defendant's failure to exercise reasonable care to eliminate the danger or otherwise protect the child caused the child's injury D. the defendant knew or should have known the artificial condition posed an unreasonable risk of injury or death to children E. the defendant knew or should have known there was an artificial condition on the land and that children were likely to trespass

Under the UCC a(n) ____________ is a person who deals in the goods of the kind involved in a transaction, or by his or her occupation holds himself or herself out as having knowledge or skill peculiar to the goods involved in the transaction. Question content area bottom Part 1 A. vendor B. merchant C. agent D. lessee E. dealer

Under the _____ test, the court asks what a consumer would expect to find or not find in food or drink that he or she consumes. Question content area bottom Part 1 A. commercial impracticability B. foreign substance C. consumer expectation D. consumer safeguard E. natural substance

Under the _____ test, the implied warranty would be breached if a person were injured by eating a nail in an apple pie. Question content area bottom Part 1 A. reasonable expectation B. express warranty C. consumer safeguard D. foreign substance E. consumer expectation

What is the difference between Chapter 7 and Chapter 13 bankruptcy? Question content area bottom Part 1 A. Chapter 13 does not enable debtors to catch up on secured credit loans, such as home mortgages, while Chapter 7 does. B. Debtors under Chapter 13 usually retain less property than under Chapter 7. C. Chapter 13 proceedings usually incur more expenses than Chapter 7 proceedings. D. Chapter 13 requires debtors to pay some of their future income to pay off prepetition debts, while Chapter 7 does not require it. E. Under Chapter 13, a creditor can file an involuntary petition to institute a Chapter 13 case; while under Chapter 7, a creditor cannot file an involuntary petition to institute a Chapter 7 case.

What is the purpose of The Mortgage Reform and Anti-Predatory Lending Act? Question content area bottom Part 1 A. It created the Consumer Financial Protection Bureau. B. It requires the disclosure of relevant information in plain language that permits consumers to understand the costs, benefits, and risks associated with the loan. C. It prohibits discrimination in the extension of credit based on sex, marital status, race, color, national origin, religion, age, or receipt of income from public assistance programs. D. It requires disclosures to consumers concerning credit card terms. E. It is designed to eliminate abusive mortgage loan practices.

What is the rule adopted by the Federal Trade Commission that eliminates holder in due course status with regard to negotiable instruments that arise out of certain consumer credit transactions? Question content area bottom Part 1 A. discharge in bankruptcy B. fraud in the inducement rule C. imposter rule D. holder in due course rule E. FTC HDC Rule

What remedy does a seller have if the goods are in the possession of a common carrier and the buyer or lessee breaches the contract? Question content area bottom Part 1 A. having the carrier pay for the goods if they cannot be returned to the seller B. reclaiming the goods from the buyer C. stopping goods in transit D. the seller would has no remedy in this situation E. replevying the goods

When a seller or lessor who is a merchant who regularly deals in goods of the kind sold or leased warrants that the goods are delivered free of any third-party patent, trademark, or copyright claim it is known as a ________. Question content area bottom Part 1 A. Magnuson-Moss warranty B. warranty of no interference C. warranty of good title D. warranty of no security interest E. warranty against infringement

When can a buyer obtain specific performance from a seller? Question content area bottom Part 1 A. anytime B. when the seller's shipment is late C. when the buyer doesn't want to pay another seller for the same goods D. when the goods are unique E. when damages are sufficient

Which of the following is NOT a requirement for creating a negotiable instrument? Question content area bottom Part 1 A. be prepared by an attorney B. be an unconditional promise or order to pay C. state a fixed amount of money D. be in writing E. be signed by the maker or drawer

Which of the following is NOT an example of an implied warranty of merchantability? Question content area bottom Part 1 A. The goods conform to the buyer's expectations. B. The goods must be fit for the ordinary purposes for which they are used. C. The goods must be adequately contained, packaged, and labeled. D. The goods must be of an even kind, quality, and quantity within each unit. E. The goods must conform to any promise or affirmation of fact made on the container or label.

Which of the following is NOT true about Article 9 of the UCC? Question content area bottom Part 1 A. Article 9 applies to transactions involving real estate mortgages, landlord's liens, artisan's or mechanic's liens, liens on wages, judicial liens, and the like. B. In 2001, the National Conference of Commissioners on Uniform State Laws and the American Law Institute issued Revised Article 9 (Secured Transactions) of the UCC. C. Most states have enacted Revised Article 9 as the secured transactions statute within their states. D. Article 9 does not apply to transactions involving real estate mortgages, landlord's liens, artisan's or mechanic's liens, liens on wages, judicial liens, and the like. E. Article 9 (Secured Transactions) of the Uniform Commercial Code (UCC) governs secured transactions in which personal property is used as collateral for a loan or the extension of credit.

Which of the following is an INCORRECT statement regarding electronic financing statements and records? Question content area bottom Part 1 A. An encoding is information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. B. Electronic chattel paper means chattel paper evidenced by a record or records consisting of information stored in an electronic medium. C. Financing statement means a record composed of an initial financing statement and any filed record related to the initial financing statement. D. Most states permit or require the filing of electronic financing statements, or e-financing statements. E. Electronic chattel paper includes records initially created and executed in electronic form and tangible writings that are converted to electronic form.

Which of the following is an INCORRECT statement regarding recording statutes? Question content area bottom Part 1 A. The filing of a deed of trust in the county recorder's office in the county in which the real property is located is public record and alerts the world that the deed of trust has been recorded against the real property. B. The non-recordation of a mortgage does not affect the legality of the instrument between the mortgagor and the mortgagee. C. As a general rule, it is not necessary to record a mortgage or deed of trust in the county recorder's office. D. The mortgagor is obligated to pay the amount of the mortgage according to the terms of the mortgage, even if the document is not recorded. E. The filing of a mortgage in the county recorder's office in the county in which the real property is located is public record and alerts the world that the mortgage has been recorded against the real property.

Which of the following is an INCORRECT statement regarding unsecured credit? Question content area bottom Part 1 A. It requires collateral to protect the payment of the debt. B. The creditor relies on the debtor's promise to repay the principal, plus any interest, when the debt is due. C. If the debtor fails to make the payments, the creditor may bring legal action and obtain a judgment against the debtor. D. In deciding whether to make the loan, the unsecured creditor considers the debtor's credit history, income, and other assets. E. If the debtor is judgment proof, the creditor may never collect.

Which of the following is an example of a breach of an implied warranty of fitness for human consumption? Question content area bottom Part 1 A. A peach pit is found in a peach pie. B. A nail is found in a peach pie. C. An ice cube is found in a fast-food soft drink. D. A chicken bone is found in a deep fried chicken wing. E. A pit is found in a olive from the olive bar.

Which of the following is an example of puffery? Question content area bottom Part 1 A. "This car has been inspected by a state car inspector." B. "This salad contains no nut products." C. "This car has 20,000 miles on it." D. "This painting is worth a fortune." E. "This car will go 100 miles per hour."

Which of the following is a seller's obligation? Question content area bottom Part 1 A. to accept conforming goods B. right of inspection C. to deliver conforming goods D. payment when goods are delivered E. to reject the goods within a reasonable time after delivery

Which of the following statements about presentment warranties is true? Question content area bottom Part 1 A. The person who presents a draft or check warrants that he has good title. B. The person who presents a draft or check warrants that that there are no defenses against the transferee. C. The person who presents a draft or check warrants that the instrument has been materially altered. D. The person who presents a draft or check warrants that he has knowledge that the signature of the maker or drawer is unauthorized. E. The person who presents a draft or check warrants that he or she has no knowledge of any insolvency proceeding against the maker, acceptor, or drawer.

Which of the following statements about transfer warranties is true? Question content area bottom Part 1 A. No one transferring a negotiable instrument has to warrant that he has good title or is authorized to act as the agent for the person that has good title. B. A person transferring a negotiable instrument does not warrant that he or she has no knowledge of any insolvency proceeding against the maker, acceptor, or drawer. C. A person transferring a negotiable instrument warrants that all signatures are genuine or authorized. D. A person transferring a negotiable instrument warrants that that the instrument has been altered. E. A person transferring a negotiable instrument warrants that that there are defenses against the transferee.

Who bears the risk of loss during shipment in a sale or return contract? Question content area bottom Part 1 A. buyer B. consignee C. financing company D. carrier E. seller

Who is a good faith purchaser for value? Question content area bottom Part 1 A. a person to whom void title can be transferred from a person with voidable title B. a person to whom good title can be transferred from a person with a void title C. a person to whom void title can be transferred from a person with good title D. a person who pays sufficient consideration or rent for the goods to the person he or she honestly believes has good title to or leasehold interest in those goods E. a person to whom voidable title can be passed from a person with void title

Who is liable if an independent contractor enters into a contract with authority from the principal? Question content area bottom Part 1 A. the independent contractor only B. the government only C. both the principal and the independent contractor D. the principal only E. neither the principal nor the independent contractor

With the _____, the seller warrants that he or she has valid title to the goods he or she is selling and that the transfer of title is rightful. Question content area bottom Part 1 A. limited warranty B. full warranty C. warranty of no interference D. express warranty E. warranty of good title

________ is issued by a land court that determines the rightful owner of real property. Question content area bottom Part 1 A. A certificate of title B. Marketable title C. Quiet title D. Title insurance E. An abstract of title

________, the most common form of agency, gives the agent the authority to contract or otherwise act on the principal's behalf, as stated in the agency agreement. Question content area bottom Part 1 A. Agency by ratification B. Exclusive agency C. Apparent agency D. Implied agency E. Express agency

A buyer breaches a sales contract if she ___________. Question content area bottom Part 1 A. accepts non-conforming goods B. accepts non-conforming goods as an accommodation C. refuses to accept conforming goods D. accepts conforming goods E. refuses to accept non-conforming goods

A college student borrows money from her mother for college expenses. The loan agreement provides that the student will repay the loan five years after graduation from college. The loan agreement contains a(n) _________ that permits the graduate to add on another two years to the loan if, at the end of five years, she wants extra time to pay the loan. Question content area bottom Part 1 A. prepayment penalty B. prepayment clause C. acceleration clause D. extension clause E. default clause

A major benefit of Chapter 11 bankruptcy is that the debtor ________. Question content area bottom Part 1 A. is given the opportunity to accept or reject certain executory contracts and unexpired leases B. gets to be on the creditors' committee C. reorganize their financial affairs with court supervision. D. usually can discharge all of its secured debt. E. may continue to run his or her business without court supervision

A negotiable instrument is also known as _____. Question content area bottom Part 1 A. a delegation B. commercial paper C. conditional paper D. a bill of sale E. an assignment

A negotiable instrument must state a fixed amount of money. Which of the following would meet this requirement? Question content area bottom Part 1 A. silver B. U.S. dollar C. $20 and a hair cut D. gold E. legal services

A party who agrees to act on behalf of another is called a(n) _____. Question content area bottom Part 1 A. assignor B. principal C. incidental beneficiary D. agent E. delegator

A principal is liable for an agent's actions _________________. Question content area bottom Part 1 A. under no circumstances B. when the agent is negligent when acting within the scope of his or her authority C. under the "coming and going" rule D. when an agent is on a frolic and detour E. when an agent commits an intentional tort outside the scope of his or her authority

A real estate agent who is employed to purchase real estate for a principal cannot secretly sell his or her own property to the principal. This is because agents are generally prohibited from undisclosed _____ with the principal. Question content area bottom Part 1 A. self-dealing B. identification C. contracting D. ratification E. self-actualization

A sight draft is also called a _____ draft. Question content area bottom Part 1 A. conditional B. demand C. reserve D. statutory E. qualified

A university student group contacts a printer to make 1,000 t-shirts in celebration of homecoming weekend. A design is provided to the printer and the price quoted to the student group is $3,000. The printer makes a mock-up t-shirt that is approved by the representatives of the student group. The printer is provided verbal authorization to complete the order by the representatives. When the shirts are completed, the printer requests payment. The student group, however, decides they do not need the shirts after all. The student group asserts that it does not have an enforceable contract as there is nothing in writing between the parties and the Statute of Frauds requires contracts for the sale of goods over $500 to be in writing. Which party will prevail and why? Question content area bottom Part 1 A. the student group, because the Statute of Frauds requires the contract to be in writing B. the student group, because the printer was not authorized to complete the order in writing C. the printer, because the Statute of Frauds does not apply to student groups D. the printer, because the t-shirts are specially made goods that cannot be resold and are completed E. neither party will prevail; the court will find the parties in pari delicto

A warranty _____ negates express and implied warranties. Question content area bottom Part 1 A. revocation B. deed C. disclaimer D. rescission E. ratification

All of the following are non-negotiable instruments EXCEPT? Question content area bottom Part 1 A. an instrument payable in gold B. an oral recording making an unconditional promise to pay C. an instrument payable if certain conditions are met D. an instrument payable in goods and services E. an instrument payable in money

All things that are nonphysical property when a security attaches are called _____ property. Question content area bottom Part 1 A. intangible personal B. tangible personal C. intangible real D. tangible personal E. tangible intellectual

An indorsement may also be written on a separate piece of paper called a(n) _______. Question content area bottom Part 1 A. negotiation B. assignment C. indorsement D. allonge E. virgule

An instrument that is "payable in $10,000 U.S. gold" is a(n) _____ instrument, but an instrument "payable in Euros" is a(n) _____ instrument. Question content area bottom Part 1 A. nonnegotiable; conditional B. negotiable; nonnegotiable C. nonnegotiable; negotiable D. conditional; negotiable E. hypothetical; conditional

Assume that a car salesperson is employed to sell the principal's car. The principal tells the agent that the car was repaired after it was involved in a major accident. If the agent intentionally tells the buyer that the car was never involved in an accident, the agent has made an intentional misrepresentation. Which of the following statements is true? Question content area bottom Part 1 A. Both the principal and the agent are liable for this misrepresentation. B. Neither the principal nor the agent are liable for this misrepresentation. C. The buyer must honor the contract. D. Only the principal is liable for this misrepresentation. E. Only the agent is liable for this misrepresentation.

A person's ownership right in real property is called a(n) ________. Question content area bottom Part 1 A. easement B. personal property right C. estate in land D. gift E. bailment

Cougar Car Sales, Inc. (Cougar), a new car dealership, finances all its inventory of new automobiles at First Bank. First Bank takes a security interest in Cougar's inventory of cars and perfects this security interest. Kim, a buyer in the ordinary course of business, purchases a car from Cougar for cash. If Cougar defaults on its payments to the bank, _______. Question content area bottom Part 1 A. First Bank cannot recover the car from Kim because she is a purchaser in the ordinary course of business B. Cougar can recover the car from Kim because she is a purchaser in the ordinary course of business C. First Bank can recover the car from Kim because she is a purchaser in the ordinary course of business D. Cougar can avoid the payments to First Bank because it no longer has the car E. First Bank cannot recover the car from Kim because she has a perfected security interest in the car

Cyberattacks and cyber crimes have led to the development of _________ insurance for purchase by businesses. Question content area bottom Part 1 A. umbrella B. business interruption C. cyber D. professional malpractice E. product liability

For a warranty to qualify as a(n) _____ warranty, the warrantor must guarantee that a defective product will be repaired or replaced free during the warranty period. Question content area bottom Part 1 A. limited B. full C. exclusive D. conditional E. qualified

From whom can an original owner reclaim his or her goods? Question content area bottom Part 1 A. a person who has purchase goods acquired by fraud B. a person with who purchased stolen goods C. a person who purchases goods from a merchant who has been entrusted with the goods and who deals in the types of goods resold D. a person with good title E. no one

If a client authorizes an attorney to settle a case within a certain dollar amount and the attorney does so, the settlement agreement is _____. Question content area bottom Part 1 A. binding, but only if the client is present when the attorney negotiates it B. binding C. non-binding unless it is either notarized by an official notary public or witnessed by two impartial witnesses (whose signatures appear on the agreement) D. non-binding unless the client ratifies it E. non-binding unless the client rescinds it

If a real estate agent who is employed to purchase real estate for a principal secretly sells his or her own property to the principal, this is a violation of the duty of loyalty known as __________. Question content area bottom Part 1 A. usurping an opportunity B. dual agency C. self-dealing D. competing with the principal E. misuse of confidential information

If an agent acts for two or more different principals in the same transaction, this is known as ________. Question content area bottom Part 1 A. competing with the principal B. self-dealing C. dual agency D. usurping an opportunity E. misuse of confidential information

In a meeting with the creditors, which of the following is NOT true? Question content area bottom Part 1 A. The court must call a meeting of the creditors between 10 and 30 days of granting an order for relief. B. The bankruptcy judge must attend the meeting. C. The debtor may have an attorney present at this meeting. D. Creditors may ask questions regarding the debtor's financial affairs, disposition of property prior to bankruptcy, possible concealment of assets, and similar matters. E. The debtor must appear and submit to questioning, under oath, by creditors.

In a _____ arrangement, a third party promises to be primarily liable with the borrower for the payment of the borrower's debt, while in a _____ arrangement, a third party promises to be secondarily liable for the payment of another's debt. Question content area bottom Part 1 A. guaranty; surety B. surety; guaranty C. subrogation; cosigner D. mortgage; deed of trust E. deed of trust; mortgage

Final Exam - ACCT 340

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