MGT102-HK. LEGAL ENVIRONMENT OF BUSINESS (MGT102-HK) > TAKE ASSESSMENT: EXAM 2 Question 1 1 points Save Trademarks classified as ______________ are most favored because they are inherently distinctive: a. descriptive b. arbitrary and fanciful c. suggestive d. generic e. none of the above Question 2 1 points Save Under a floating lien: a. specific collateral only is used b. when collateral is sold the lien expires c. new inventory is unavailable to replace old collateral d. new inventory is used to replace collateral that is sold e. real estate is always the collateral used Question 3 1 points Save The formula for Coca-Cola is: a. patented b. copyrighted c. a trade secret d. trade dress e. none of these Question 4 1 points Save Bankruptcy: a. may be forced upon a debtor b. relieves a debtor of legal responsibility for all debts c. cannot be declared by corporations d. entitles all creditors to share equally e. all of the above Question 5 1 points Save Under the Sonny Bono Copyright Term Extension Act of 1998, most copyrighted materials now have protection for the life of the author plus: a. 20 years, the same as the European Union b. 50 years, the same as the European Union c. 70 years, the same as the European Union d. 50 years, the same as the UN Convention e. 75 years, the same as the UN Convention Question 6 1 points Save Bob tells Charles and Fritz “If either of you collect all the old bricks at the house on Main Street that has been torn down and deliver them to the new house I am going to build, I will pay you 10 cents per brick.” Charles then spends three days collecting the bricks at the old house site and is about to deliver them to Bob’s new building site when Bob drives by and tells him to forget it. Charles wants Bob to pay him. a. this was a unilateral contract never executed, so not enforceable b. this was a bilateral contract never executed, so not enforceable c. the court would hold that Bob has a moral obligation to pay Charles d. this was a bilateral contract that would be enforceable due to substantial performance e. this was a unilateral contract that would be enforceable due to substantial performance Question 7 1 points Save A patent may not be issued for: a. a process b. a manufacture c. a composition of matter d. a theory e. any of the above Question 8 1 points Save To be liable for a tort the defendant must have: a. thought about the action only b. considered the consequences of his actions only c. been unaware of the consequences of his actions d. must have engaged in a voluntary physical action e. none of the above Question 9 1 points Save An easement may be described as: a. a right to use intellectual property b. a burden on another person’s estate c. a future interest in personal property d. a negative interest in personal property e. a conversionary right to personal property Question 10 1 points Save When both parties to an agreement are mistaken as to a material fact, the contract: a. is enforced because the mistake is mutual b. may be voidable c. is enforced because a mistake does not provide a basis for relief d. requires amendment by the court e. none of the above Question 11 1 points Save The tort that protects individuals from harm based on careless and unintentional conduct is called: a. conversion b. negligence c. strict liability d. absolute liability e. none of the above Question 12 1 points Save When someone accepts an offer by an exchange of mutual promises, what kind of contract is formed? a. implied b. unilateral c. bilateral d. commercial code e. executed Question 13 1 points Save A creditor who obtains an interest in the property of a debtor without the debtor’s express agreement may obtain: a. a fine b. a lien c. a misdemeanor d. a dessein e. a subrogation Question 14 1 points Save A doctor driving on a highway stops at a car accident to give medical aid that takes an hour of time. The accident victim is unconscious when the doctor arrives, so he does not give his consent to the aid. The doctor bills the victim for an hour of medical services: a. an express contract existed; the victim pays b. an executed contract existed; the victim pays c. a quasiexisted, otherwise the victim would be unjustly enriched d. a valid contract, enforceable by law, was not created; no payment e. this was an adhesion contract; no payment Question 15 1 points Save A close corporation is one: a. with a pending application for incorporation b. with stock that can only be traded with other corporations c. that is in the process of dissolution d. that has a small number of stockholders e. that issues only preferred stock Question 16 1 points Save One element of fraud or intentional misrepresentation is scienter. That means: a. false information about an important fact was passed on b. the defendant knew there was false information being passed on c. the defendant wanted the plaintiff to believe the falsehood d. there was a relationship between the parties that created a legal obligation e. the extent of damages caused Question 17 1 points Save The rights that owners have to their land are: a. unlimited b. severally limited c. limited by land use regulations d. limited only by the landowner’s imagination e. the prior rights of previous owners Question 18 1 points Save Intentional conduct that places a person in fear of immediate bodily harm or offensive contact is the tort of: a. battery b. assault c. defamation d. duress e. false imprisonment Question 19 1 points Save With respect to warranty disclaimers, under the UCC a seller: a. may never disclaim a warranty b. may only disclaim implied warranties c. may disclaim only express warranties d. may disclaim any warranty except a warranty of title e. may disclaim any warranty so long as the disclaimer follows UCC rules Question 20 1 points Save A syndicate refers to: a. an association organized to provide an economic service without profit to its members b. the ability to invest in a business without placing all personal wealth at risk c. a group of persons who join together to finance a specific project d. an organization with a general member and several limited members e. none of the above Question 21 1 points Save An affirmation of fact or promise made by a seller to a buyer that relates to the goods and becomes part of the basis of the bargain creates a (an): a. express warranty b. implied warranty c. product warranty d. caveat emptor e. none of the above Question 22 1 points Save Damages to be paid in case of breach, that the parties agree to in advance of a breach of contract are: a. compensatory damages b. liquidated damages c. nominal damages d. punitive damages e. None of the above Question 23 1 points Save A trade name is protected by: a. the Lanham Act b. the common law c. the law of copyright d. the patent statute e. none of the above Question 24 1 points Save If a creditor is successful in a legal action against a debtor, the court will award the creditor: a. a revisionary lien b. a judgment lien c. a detachment lien d. a lien pendant e. none of these Question 25 1 points Save Early sales law was governed by state law. This created a significant legal challenge for managers because: a. Article 2 of the UCC was unclear b. it forced managers to write sales agreements with many terms left open c. different rules developed across the states d. it required a new sales agreements each time a new order was placed e. none of the above Question 26 1 points Save When a court “pierces the corporate veil” it: a. holds shareholders personally liable for corporate debts b. holds the board of directors jointly and severally liable c. provides the chief financial officer of the corporation with limited liability d. sanctions the under capitalization of the corporation e. provides partial protection from corporation debts Question 27 1 points Save A warranty may be defined as: a. a guarantee of payment by the seller b. a guarantee of payment by the buyer c. a statement by the seller that its goods conform to certain quality, safety, performance or title standards d. a statement by the seller that its goods conform to industry standards e. a statement by the buyer that it accepts responsibility for any harms it causes Question 28 1 points Save You leave your poodle at a new grooming shop and tell them to wash the dog–a $20 service. They do that and also clip the poodle’s nails, paint them, and tie ribbons in his hairservices are an extra $10. You pay them for the wash. What about the extra $10 in services? a. an express contract existed; you must pay the $10 b. an implied contract existed; you must pay the $10 c. a quasiexisted; you must pay the $10 d. no contract for these services existed, no extra payment e. the UCC would hold that no contract existed, so no payment Question 29 1 points Save The term privity of contract refers to: a. the contractual relationship that exists between the parties to a contract b. damage awards provided by juries in products liability cases c. the requirement that products liability law have its origin in the common law of contracts d. the risk that a product is of adequate legal quality e. the requirement that products liability litigation must be brought by private citizens Question 30 1 points Save With respect to parol evidence and the UCC: a. it follows the same rule as the common law b. it allows oral testimony to contradict written documents c. oral evidence may be used to explain trade dealings d. oral evidence may be used even if the court finds that the written documents are a complete statement of terms e. oral evidence may never be used Question 31 1 points Save An open account means: a. multiple payments are made on a regular schedule b. minimum monthly payments are made on an account balance c. half payment is due when the invoice is received d. full payment is due within a fixed time period e. the borrower may borrow up to the full amount of the credit limit Question 32 1 points Save If the parties to a sale under the UCC do not specify when the title to the goods passes, then, assuming goods have to be shipped, title passes to the buyer: a. when the seller completes obligations regarding delivery of the goods b. when the seller ships the title documents and goods c. when the buyer inspects the goods d. when the buyer makes “substantial” payment e. any of the above Question 33 1 points Save In the case of bankruptcy, which of the following classes of creditors have highest priority? a. taxes b. costs of preserving and administering the debtor’s estate c. secured creditors d. rent claims e. general creditors Question 34 1 points Save One advantage of a patent is that: a. the owner has exclusive rights to its use for the length of his life b. it never expires c. it provides strong legal protection for its life d. the owner may not be sued for 15 years e. it is automatically registered worldwide Question 35 1 points Save An invention must be which of the following to get a patent? a. genuine b. useful c. novel d. not obvious e. all of the above Question 36 1 points Save Strict liability may be imposed if you, the buyer, receive an oral or written statement about the quality of a good, that statement becomes part of your bargain with the manufacturer, and you suffer an injury because the statement was not accurate. This is known as: a. implied warranty b. express warranty c. caveat emptor d. product warranty e. none of the above Question 37 1 points Save A contract is formed only when an offer is accepted: a. by the offeree b. by the offeror c. by the rules of the UCC d. by the promisor e. none of the above Question 38 1 points Save Elements of a contract include all of the following except: a. an agreement among the parties b. lawful subject matter c. consideration d. parties with legal capacity e. all of the above are elements Question 39 1 points Save Among the rights and duties of a landlord are: a. the right to constructively evict b. the duty to pay in a timely manner c. the right to inspect the property at any time d. the duty to make essential repairs e. none of the above Question 40 1 points Save When an injured party is allowed to sue all manufacturers of a defective product, so that all these manufacturers might be liable together, this is called: a. absolute liability b. strict liability c. limited liability d. market share liability e. none of the above Question 41 1 points Save In a (an) _________________, the debtor makes a minimum monthly payment and more debt can be added to the account over time. a. collections account b. installment account c. revolving account d. open account e. security account Question 42 1 points Save In a tort action for trespass to land the: a. wrongdoer is excused if he thought he owned the land b. wrongdoer is excused if she thought she had permission to trespass c. the property owner must demonstrate actual injury d. the property owner must show that the land was fenced or otherwise posted as to ownership e. none of the above Question 43 1 points Save When a note is to be paid in periodic payments but also includes a final payment more than double the periodic payments, the note is called: a. an installment note b. a collateral note c. a payee note d. a balloon note e. a maker note Question 44 1 points Save Modern definitions of contracts center on: a. a binding promise b. lex mercatoria c. commercial rules d. evidence of seals e. duties imposed by the Restatement of Contracts Question 45 1 points Save Extreme debt collection tactics, such as late night threatening phone calls, may cause legal action based on the tort of: a. battery b. infliction of emotional distress c. persecution d. malicious prosecution e. all of the above Question 46 1 points Save For liability to be imposed when negligence is alleged, in many jurisdictions, the injured party must prove that the defendant’s act was not only the cause in fact of the injury but also the _______________ of the injury. a. superseding cause b. intervening conduct or strict liability c. misappropriation d. proximate cause or substantial factor e. none of the above are required Question 47 1 points Save Which of the following would be least likely to be an invasion of privacy: a. the use of a person’s photograph without permission b. pleading with a movie star for an autograph c. publication of information about a person that comes from private sources d. publication of information about a person that places them in a false light to others e. walking into the home of a famous sports personality without permission Question 48 1 points Save A binding promise may be defined as: a. one made by parties whose words are serious b. one that tort law enforces c. one that is written d. one that may be enforced by law in case of breach e. one that is sealed in the presence of an attorney and that is written Question 49 1 points Save Another name for market share liability is: a. securities liability b. compounded liability c. tangential liability d. anonymous liability e. enterprise liability Question 50 1 points Save The Convention on the International Sale of Goods (CISG): a. was developed to manage the contract problems inherent in the sale of good to Third World nations b. does not contain a statute of frauds provision so that either oral or written contracts in international markets may be enforceable c. does not apply to civil law countries d. relies heavily on common law contract law principles developed in the United States e. provides that the commercial laws of the seller’s country always apply Question 51 1 points Save TP sells franchises in the Old Fast Food chain. TP sells a franchise to Choy for $100,000 by cashier’s check. Choy then hears that TP is going out of business and tries to stop payment on the check. TP has already transferred the money to a third party who meets the UCC’s requirements for a holder in due course. The bank paid that third party. TP declares it is out of business. In a subsequent lawsuit: a. the court will find that the third party is a holder in due course and, despite the fact that TP has defrauded Choy, not require the third party to repay Choy b. because of the fraud involved, the court will require the third party repay Choy c. because the instrument involved was a cashier’s check and not an ordinary check, the court will not require the third party to repay Choy d. because the amount in controversy was more than $50,000, the courts will be empowered to view the fraud as a felony and will ignore the requirements of the UCC e. none of the above Question 52 1 points Save A major purpose of tort law is to: a. replace the insurance industry b. provide compensation for injured parties by wrongdoers c. impose criminal penalties on the negligent d. adequately regulate government contracting e. ensure the effective operation of the Due Process Clause Question 53 1 points Save Counterfeit goods: a. may be seized and destroyed b. may be sold so long as identified as “not original” c. may be sold so long as identified as “not approved” d. may be sold so long as identified as “not genuine” e. none of the above Question 54 1 points Save The most common nonconsensual lien on real property is: a. a mechanic’s lien b. an artisan’s lien c. an integrated lien d. a mortgage lien e. a possessory lien Question 55 1 points Save When both parties agree that their contractual relationship should be terminated without performance and their obligations are thereby discharged, this is: a. rescission b. novation c. accord and satisfaction d. discharge by operation of law e. equitable remedy Question 56 1 points Save The common law provides protection to owners of intellectual property through which legal action? a. malicious prosecution b. assault c. infringement d. slander e. infliction of emotional distress Question 57 1 points Save The basic elements of a contract include agreement, lawful subject matter, and: a. offer, consideration, and legal capacity b. consideration, legal capacity, and remedies c. consideration, legal capacity, and performance d. consideration, legal capacity, and genuine consent e. offer, acceptance, and legal capacity Question 58 1 points Save A 16-year-old goes to a used car dealership and pays $2,000 cash to buy a car off the lot. a. assuming no fraud by the dealer, and that the car is really worth about $2,000, the contract is valid b. the dealer realizes that the car is worth more than $2,000, so he can void the contract and insist on the car back c. the 16-year-old can bring the car back the next day and demand his money back because the contract is voidable d. the parents of the 16-year-old cannot try to get the money back for the car because parents are responsible for providing their children with necessities e. none of the above Question 59 1 points Save The tort of printed or written defamatory communication is: a. slander b. libel c. privilege d. negligence e. none of the above Question 60 1 points Save When a seller has agreed to supply all of the needs of a buyer, there is a(an): a. requirements contract b. fulfillment contract c. output contract d. totality contract e. such contracts are not allowed under the UCC Question 61 1 points Save Which of the following debt item(s) are not extinguished by a Chapter 7 bankruptcy? a. alimony and child support payments b. back taxes c. debts incurred by fraud against creditors d. fines owed to the government e. all of the above Question 62 1 points Save When the party who breaches a contract has behaved maliciously, the court may want to discourage such behavior in the future by imposing what damages besides regular damages? a. compensatory b. expectancy c. liquidated d. nominal e. punitive Question 63 1 points Save The tort of misrepresentation can be based on: a. negligence or intent b. negligence, but not intent c. intent, but not negligence d. neither intent or negligence; it requires fraud e. deceit only Question 64 1 points Save The general rule regarding acceptance is: a. a reasonable acceptance is valid when sent b. an acceptance is always valid c. acceptances are valid when received d. an acceptance will be valid only if mailed e. an acceptance is a void unless received within forty-eight hours of the offer Question 65 1 points Save When a persons suffers an injury due to deliberate deception, there may be a tort of: a. fraud b. misrepresentation c. fraudulent misrepresentation d. deceit e. all of the above Question 66 1 points Save A person who is given the right to use property during their lifetime is given _____________ in the property. a. an easement b. a life estate c. a covenant d. a non-coercive claim e. none of these Question 67 1 points Save The concept behind the tort of invasion of privacy is to: a. encourage the public exposure of true private facts b. protect individual rights to solitude and freedom from unwarranted public exposure c. allow the government to tap telephone conversations d. place criminal sanctions on the use of a person’s name without their permission e. protect the publication of “false light” stories Question 68 1 points Save A business uses dangerous acid in production. It fails to warn a new employee of the risks involved in using the acid and the employee is injured. If the acid maker is sued, its defense will be that the business and the employee are: a. accomplices b. in violation of federal safety regulations c. sophisticated purchasers d. not covered due to lack of warranty e. ruthless capitalist oppressors Question 69 1 points Save A private nuisance involves: a. a reasonable interference with the enjoyment of land b. a substantial interference with the use of land c. an unreasonable interference with the enjoyment of land d. either b or c e. violation of a statute prohibiting bad acts Question 70 1 points Save A business organization made up of two or more persons who have entered into an agreement to carry on a business venture for a profit, and not all persons have the right to participate in management decisions is a: a. proprietorship b. limited partnership c. cooperative d. general partnership e. none of the above Question 71 1 points Save If a debtor refuses to pay an unsecured creditor, and the debtor is insolvent, the unsecured creditor collects: a. nothing b. one-half of the bill c. one-quarter of the bill d. the full amount of the bill, over time e. the bill plus associated attorney’s fees Question 72 1 points Save The dissolution of a partnership occurs: a. when an event takes place that precludes the partners from continuing in business b. during the process of completing any unfinished business of the partnership c. during the collection and distribution of the partnership’s assets d. when a certificate of limited partnership is executed e. none of the above Question 73 1 points Save The business organization that has at least one general partner and other investors who have limited liability is a: a. corporation b. general partnership c. limited partnership d. limited liability company e. proprietorship Question 74 1 points Save Today a corporation must be created according to: a. state law b. common law c. the Uniform Incorporation Act d. the Uniform Partnership Act e. federal statutory provisions Question 75 1 points Save Because of the war on terrorism, the U.S. government announced a prohibition on doing business with certain countries. Contracts that were in existence at the time the prohibition was announced were: a. unenforceable b. void c. voidable d. quasi-contracts e. unilateral Question 76 1 points Save Contract law is primarily: a. federal statutory law b. state common law c. federal common law d. state statutes e. international code law Question 77 1 points Save The award to a prevailing party in suit for breach of contract to restore his precontractual position is called: a. liquidated damages b. nominal damages c. punitive damages d. compensatory damages e. none of the above Question 78 1 points Save The right of utility companies to run power lines over land and put water lines under private property is based on: a. an easement b. a covenant c. a deed d. a seisin e. a remainder Question 79 1 points Save If the government forces you to sell 10 acres of your land to the Park Service, the Constitution requires that: a. you pay the government b. you continue to pay taxes on the land c. the government pay you “fair market value” for the land d. the government reconvey the title to the land to your heirs once it are done using it e. none of these Question 80 1 points Save Under some circumstances, courts do not require consideration for a promise to be enforced. The doctrine used by the courts to bind a promisor is called detrimental reliance or: a. restitution b. promissory estoppel c. revocation d. all of the above e. none of the above Question 81 1 points Save To transfer contract rights to a third party is: a. assignment b. delegation c. repudiation d. beneficiary e. none of the above Question 82 1 points Save The intentional tort of assault requires: a. that there be physical contact with the body b. that the injured party have knowledge of the danger and be fearful of the threat c. that the injured party be detained against his or her will d. that the defendant intended to injure the plaintiff e. all of the above Question 83 1 points Save The Franchise Rule requires that the following information must be provided except: a. the names and addresses of other franchisees b. an audited financial statement of the franchisor’s operation c. the background and experience of the other franchisees d. the responsibilities that the parties will have to each other under the agreement e. all of the above are required Question 84 1 points Save Property law in the United States has developed from: a. Norman law of the fifth century b. Roman law c. Jus Civile d. English common law e. None of the above Question 85 1 points Save Intentional torts are based on: a. negligence b. carelessness c. willful misconduct d. assumption of care e. obsequiousness Question 86 1 points Save A legally binding contract that can be terminated at the option of one of the parties is called: a. an executed contract b. a formal contract with an escape clause c. a voidable contract d. a void contract e. a parol evidence contract Question 87 1 points Save The courts may impose obligations on one party to a dispute to avoid unjust enrichment to the other party. This is called: a. unenforceable contract b. voidable contract c. implied contract d. void contract e. quasi-contract Question 88 1 points Save A composition involves: a. repaying a percentage of the total amount of a debt b. turning over obligations to pay to a third party c. allowing a guarantor to withdraw from a debt obligation d. turning over right to payment to a third party e. rehabilitating a creditor Question 89 1 points Save Don borrows $70,000 to buy a home. e. His mortgage is with Western Bank. Don is unable to make his mortgage payments. Western forecloses on Don’s house and sells it in a judicial sale. The bank gets $75,000 for the house. In this case, it: a. must return the extra $5,000 to Don b. keeps the extra money to reimburse it for its expenses c. must pay the secretary of state for the expenses the office has incurred d. obtain a mechanic’s lien against Don e. seize Don’s personal property to satisfy its claimsQuestion 90 1 points Save If you rent an apartment, the apartment is known as: a. a renthold b. a leasehold c. a lease in absentia d. a defeasement e. a retainer Question 91 1 points Save Under the perfect tender rule a buyer who receives good that are nonconforming: a. may reject them and withhold payment b. may cancel the contract and recover from the seller any prepayments c. must notify the seller of a rejection in a timely manner to allow the seller to either cure the non-conformities or reclaim the goods d. all of the above e. none of the above Question 92 1 points Save A business organization that involves a mix of partnership and corporation, but is not a legal entity, is known as a: a. sole proprietorship b. joint stock company c. cooperative d. syndicate e. none of the above Question 93 1 points Save According the UCC’s statute of frauds all: a. contracts involving the sale of land must be in writing b. sales of goods worth more than $50 must be in writing c. warranties must be written d. material terms must be included in written contracts e. none of the above Question 94 1 points Save Under a Chapter 13 proceeding, debts must be repaid usually: a. within one year b. within three years c. within seven years d. immediately e. none of the above; all debts are liquidated Question 95 1 points Save If a negotiable instrument is transferred by negotiation, the transferee takes the instrument: a. with all of the transferor’s rights and responsibilities b. free of the transferor’s responsibilities c. with the duties that have been assigned to the instrument by the bearer d. with the rights that have been assigned to the instrument by the holder in due course e. none of the above Question 96 1 points Save Contracts where one party, being in a position of strength, takes advantage of the other party, and which are generally held to be unenforceable, are called: a. unconscionable contracts b. contracts in restraint of trade c. exculpatory agreements d. contracts with public servants e. none of the above Question 97 1 points Save Which of the following is not true about the termination of a limited partnership? a. the bankruptcy of a limited partner does not force termination b. the business may continue to operate during dissolution c. creditors’ rights come before partners’ rights to funds d. limited and general partners share assets equally at the same time after the creditors are paid e. all of the above are true Question 98 1 points Save The tort defined as the intentional and unlawful control or appropriation of the personal property of another is: a. battery to property b. trespass to personal property c. negligent property use d. conversion e. nuisance Question 99 1 points Save Experts estimate the cost of the tort system range from: a. one to two billion dollars per year b. ten to twenty billion dollars per year c. twenty to forty billion dollars per year d. forty to one hundred fifty billion dollars per year e. no estimates are available Question 100 1 points Save An implied contract is one that: a. refers to the implied language of the original written contract b. is inferred from the behavior or circumstances of the parties c. refers to the definitions and usages of terms of trade as dictated by trade customs d. requires the substitution of terms from written agreements used in applying the UCC e. the courts imply the terms to achieve the execution of a public policy MGT102-HK. LEGAL ENVIRONMENT OF BUSINESS (MGT102-HK) > TAKE ASSESSMENT: EXAM 2 Question 1 1 points Save Trademarks classified as ______________ are most favored because they are inherently distinctive: a. descriptive b. arbitrary and fanciful c. suggestive d. generic e. none of the above Question 2 1 points Save Under a floating lien: a. specific collateral only is used b. when collateral is sold the lien expires c. new inventory is unavailable to replace old collateral d. new inventory is used to replace collateral that is sold e. real estate is always the collateral used Question 3 1 points Save The formula for Coca-Cola is: a. patented b. copyrighted c. a trade secret d. trade dress e. none of these Question 4 1 points Save Bankruptcy: a. may be forced upon a debtor b. relieves a debtor of legal responsibility for all debts c. cannot be declared by corporations d. entitles all creditors to share equally e. all of the above Question 5 1 points Save Under the Sonny Bono Copyright Term Extension Act of 1998, most copyrighted materials now have protection for the life of the author plus: a. 20 years, the same as the European Union b. 50 years, the same as the European Union c. 70 years, the same as the European Union d. 50 years, the same as the UN Convention e. 75 years, the same as the UN Convention Question 6 1 points Save Bob tells Charles and Fritz “If either of you collect all the old bricks at the house on Main Street that has been torn down and deliver them to the new house I am going to build, I will pay you 10 cents per brick.” Charles then spends three days collecting the bricks at the old house site and is about to deliver them to Bob’s new building site when Bob drives by and tells him to forget it. Charles wants Bob to pay him. a. this was a unilateral contract never executed, so not enforceable b. this was a bilateral contract never executed, so not enforceable c. the court would hold that Bob has a moral obligation to pay Charles d. this was a bilateral contract that would be enforceable due to substantial performance e. this was a unilateral contract that would be enforceable due to substantial performance Question 7 1 points Save A patent may not be issued for: a. a process b. a manufacture c. a composition of matter d. a theory e. any of the above Question 8 1 points Save To be liable for a tort the defendant must have: a. thought about the action only b. considered the consequences of his actions only c. been unaware of the consequences of his actions d. must have engaged in a voluntary physical action e. none of the above Question 9 1 points Save An easement may be described as: a. a right to use intellectual property b. a burden on another person’s estate c. a future interest in personal property d. a negative interest in personal property e. a conversionary right to personal property Question 10 1 points Save When both parties to an agreement are mistaken as to a material fact, the contract: a. is enforced because the mistake is mutual b. may be voidable c. is enforced because a mistake does not provide a basis for relief d. requires amendment by the court e. none of the above Question 11 1 points Save The tort that protects individuals from harm based on careless and unintentional conduct is called: a. conversion b. negligence c. strict liability d. absolute liability e. none of the above Question 12 1 points Save When someone accepts an offer by an exchange of mutual promises, what kind of contract is formed? a. implied b. unilateral c. bilateral d. commercial code e. executed Question 13 1 points Save A creditor who obtains an interest in the property of a debtor without the debtor’s express agreement may obtain: a. a fine b. a lien c. a misdemeanor d. a dessein e. a subrogation Question 14 1 points Save A doctor driving on a highway stops at a car accident to give medical aid that takes an hour of time. The accident victim is unconscious when the doctor arrives, so he does not give his consent to the aid. The doctor bills the victim for an hour of medical services: a. an express contract existed; the victim pays b. an executed contract existed; the victim pays c. a quasiexisted, otherwise the victim would be unjustly enriched d. a valid contract, enforceable by law, was not created; no payment e. this was an adhesion contract; no payment Question 15 1 points Save A close corporation is one: a. with a pending application for incorporation b. with stock that can only be traded with other corporations c. that is in the process of dissolution d. that has a small number of stockholders e. that issues only preferred stock Question 16 1 points Save One element of fraud or intentional misrepresentation is scienter. That means: a. false information about an important fact was passed on b. the defendant knew there was false information being passed on c. the defendant wanted the plaintiff to believe the falsehood d. there was a relationship between the parties that created a legal obligation e. the extent of damages caused Question 17 1 points Save The rights that owners have to their land are: a. unlimited b. severally limited c. limited by land use regulations d. limited only by the landowner’s imagination e. the prior rights of previous owners Question 18 1 points Save Intentional conduct that places a person in fear of immediate bodily harm or offensive contact is the tort of: a. battery b. assault c. defamation d. duress e. false imprisonment Question 19 1 points Save With respect to warranty disclaimers, under the UCC a seller: a. may never disclaim a warranty b. may only disclaim implied warranties c. may disclaim only express warranties d. may disclaim any warranty except a warranty of title e. may disclaim any warranty so long as the disclaimer follows UCC rules Question 20 1 points Save A syndicate refers to: a. an association organized to provide an economic service without profit to its members b. the ability to invest in a business without placing all personal wealth at risk c. a group of persons who join together to finance a specific project d. an organization with a general member and several limited members e. none of the above Question 21 1 points Save An affirmation of fact or promise made by a seller to a buyer that relates to the goods and becomes part of the basis of the bargain creates a (an): a. express warranty b. implied warranty c. product warranty d. caveat emptor e. none of the above Question 22 1 points Save Damages to be paid in case of breach, that the parties agree to in advance of a breach of contract are: a. compensatory damages b. liquidated damages c. nominal damages d. punitive damages e. None of the above Question 23 1 points Save A trade name is protected by: a. the Lanham Act b. the common law c. the law of copyright d. the patent statute e. none of the above Question 24 1 points Save If a creditor is successful in a legal action against a debtor, the court will award the creditor: a. a revisionary lien b. a judgment lien c. a detachment lien d. a lien pendant e. none of these Question 25 1 points Save Early sales law was governed by state law. This created a significant legal challenge for managers because: a. Article 2 of the UCC was unclear b. it forced managers to write sales agreements with many terms left open c. different rules developed across the states d. it required a new sales agreements each time a new order was placed e. none of the above Question 26 1 points Save When a court “pierces the corporate veil” it: a. holds shareholders personally liable for corporate debts b. holds the board of directors jointly and severally liable c. provides the chief financial officer of the corporation with limited liability d. sanctions the under capitalization of the corporation e. provides partial protection from corporation debts Question 27 1 points Save A warranty may be defined as: a. a guarantee of payment by the seller b. a guarantee of payment by the buyer c. a statement by the seller that its goods conform to certain quality, safety, performance or title standards d. a statement by the seller that its goods conform to industry standards e. a statement by the buyer that it accepts responsibility for any harms it causes Question 28 1 points Save You leave your poodle at a new grooming shop and tell them to wash the dog–a $20 service. They do that and also clip the poodle’s nails, paint them, and tie ribbons in his hairservices are an extra $10. You pay them for the wash. What about the extra $10 in services? a. an express contract existed; you must pay the $10 b. an implied contract existed; you must pay the $10 c. a quasiexisted; you must pay the $10 d. no contract for these services existed, no extra payment e. the UCC would hold that no contract existed, so no payment Question 29 1 points Save The term privity of contract refers to: a. the contractual relationship that exists between the parties to a contract b. damage awards provided by juries in products liability cases c. the requirement that products liability law have its origin in the common law of contracts d. the risk that a product is of adequate legal quality e. the requirement that products liability litigation must be brought by private citizens Question 30 1 points Save With respect to parol evidence and the UCC: a. it follows the same rule as the common law b. it allows oral testimony to contradict written documents c. oral evidence may be used to explain trade dealings d. oral evidence may be used even if the court finds that the written documents are a complete statement of terms e. oral evidence may never be used Question 31 1 points Save An open account means: a. multiple payments are made on a regular schedule b. minimum monthly payments are made on an account balance c. half payment is due when the invoice is received d. full payment is due within a fixed time period e. the borrower may borrow up to the full amount of the credit limit Question 32 1 points Save If the parties to a sale under the UCC do not specify when the title to the goods passes, then, assuming goods have to be shipped, title passes to the buyer: a. when the seller completes obligations regarding delivery of the goods b. when the seller ships the title documents and goods c. when the buyer inspects the goods d. when the buyer makes “substantial” payment e. any of the above Question 33 1 points Save In the case of bankruptcy, which of the following classes of creditors have highest priority? a. taxes b. costs of preserving and administering the debtor’s estate c. secured creditors d. rent claims e. general creditors Question 34 1 points Save One advantage of a patent is that: a. the owner has exclusive rights to its use for the length of his life b. it never expires c. it provides strong legal protection for its life d. the owner may not be sued for 15 years e. it is automatically registered worldwide Question 35 1 points Save An invention must be which of the following to get a patent? a. genuine b. useful c. novel d. not obvious e. all of the above Question 36 1 points Save Strict liability may be imposed if you, the buyer, receive an oral or written statement about the quality of a good, that statement becomes part of your bargain with the manufacturer, and you suffer an injury because the statement was not accurate. This is known as: a. implied warranty b. express warranty c. caveat emptor d. product warranty e. none of the above Question 37 1 points Save A contract is formed only when an offer is accepted: a. by the offeree b. by the offeror c. by the rules of the UCC d. by the promisor e. none of the above Question 38 1 points Save Elements of a contract include all of the following except: a. an agreement among the parties b. lawful subject matter c. consideration d. parties with legal capacity e. all of the above are elements Question 39 1 points Save Among the rights and duties of a landlord are: a. the right to constructively evict b. the duty to pay in a timely manner c. the right to inspect the property at any time d. the duty to make essential repairs e. none of the above Question 40 1 points Save When an injured party is allowed to sue all manufacturers of a defective product, so that all these manufacturers might be liable together, this is called: a. absolute liability b. strict liability c. limited liability d. market share liability e. none of the above Question 41 1 points Save In a (an) _________________, the debtor makes a minimum monthly payment and more debt can be added to the account over time. a. collections account b. installment account c. revolving account d. open account e. security account Question 42 1 points Save In a tort action for trespass to land the: a. wrongdoer is excused if he thought he owned the land b. wrongdoer is excused if she thought she had permission to trespass c. the property owner must demonstrate actual injury d. the property owner must show that the land was fenced or otherwise posted as to ownership e. none of the above Question 43 1 points Save When a note is to be paid in periodic payments but also includes a final payment more than double the periodic payments, the note is called: a. an installment note b. a collateral note c. a payee note d. a balloon note e. a maker note Question 44 1 points Save Modern definitions of contracts center on: a. a binding promise b. lex mercatoria c. commercial rules d. evidence of seals e. duties imposed by the Restatement of Contracts Question 45 1 points Save Extreme debt collection tactics, such as late night threatening phone calls, may cause legal action based on the tort of: a. battery b. infliction of emotional distress c. persecution d. malicious prosecution e. all of the above Question 46 1 points Save For liability to be imposed when negligence is alleged, in many jurisdictions, the injured party must prove that the defendant’s act was not only the cause in fact of the injury but also the _______________ of the injury. a. superseding cause b. intervening conduct or strict liability c. misappropriation d. proximate cause or substantial factor e. none of the above are required Question 47 1 points Save Which of the following would be least likely to be an invasion of privacy: a. the use of a person’s photograph without permission b. pleading with a movie star for an autograph c. publication of information about a person that comes from private sources d. publication of information about a person that places them in a false light to others e. walking into the home of a famous sports personality without permission Question 48 1 points Save A binding promise may be defined as: a. one made by parties whose words are serious b. one that tort law enforces c. one that is written d. one that may be enforced by law in case of breach e. one that is sealed in the presence of an attorney and that is written Question 49 1 points Save Another name for market share liability is: a. securities liability b. compounded liability c. tangential liability d. anonymous liability e. enterprise liability Question 50 1 points Save The Convention on the International Sale of Goods (CISG): a. was developed to manage the contract problems inherent in the sale of good to Third World nations b. does not contain a statute of frauds provision so that either oral or written contracts in international markets may be enforceable c. does not apply to civil law countries d. relies heavily on common law contract law principles developed in the United States e. provides that the commercial laws of the seller’s country always apply Question 51 1 points Save TP sells franchises in the Old Fast Food chain. TP sells a franchise to Choy for $100,000 by cashier’s check. Choy then hears that TP is going out of business and tries to stop payment on the check. TP has already transferred the money to a third party who meets the UCC’s requirements for a holder in due course. The bank paid that third party. TP declares it is out of business. In a subsequent lawsuit: a. the court will find that the third party is a holder in due course and, despite the fact that TP has defrauded Choy, not require the third party to repay Choy b. because of the fraud involved, the court will require the third party repay Choy c. because the instrument involved was a cashier’s check and not an ordinary check, the court will not require the third party to repay Choy d. because the amount in controversy was more than $50,000, the courts will be empowered to view the fraud as a felony and will ignore the requirements of the UCC e. none of the above Question 52 1 points Save A major purpose of tort law is to: a. replace the insurance industry b. provide compensation for injured parties by wrongdoers c. impose criminal penalties on the negligent d. adequately regulate government contracting e. ensure the effective operation of the Due Process Clause Question 53 1 points Save Counterfeit goods: a. may be seized and destroyed b. may be sold so long as identified as “not original” c. may be sold so long as identified as “not approved” d. may be sold so long as identified as “not genuine” e. none of the above Question 54 1 points Save The most common nonconsensual lien on real property is: a. a mechanic’s lien b. an artisan’s lien c. an integrated lien d. a mortgage lien e. a possessory lien Question 55 1 points Save When both parties agree that their contractual relationship should be terminated without performance and their obligations are thereby discharged, this is: a. rescission b. novation c. accord and satisfaction d. discharge by operation of law e. equitable remedy Question 56 1 points Save The common law provides protection to owners of intellectual property through which legal action? a. malicious prosecution b. assault c. infringement d. slander e. infliction of emotional distress Question 57 1 points Save The basic elements of a contract include agreement, lawful subject matter, and: a. offer, consideration, and legal capacity b. consideration, legal capacity, and remedies c. consideration, legal capacity, and performance d. consideration, legal capacity, and genuine consent e. offer, acceptance, and legal capacity Question 58 1 points Save A 16-year-old goes to a used car dealership and pays $2,000 cash to buy a car off the lot. a. assuming no fraud by the dealer, and that the car is really worth about $2,000, the contract is valid b. the dealer realizes that the car is worth more than $2,000, so he can void the contract and insist on the car back c. the 16-year-old can bring the car back the next day and demand his money back because the contract is voidable d. the parents of the 16-year-old cannot try to get the money back for the car because parents are responsible for providing their children with necessities e. none of the above Question 59 1 points Save The tort of printed or written defamatory communication is: a. slander b. libel c. privilege d. negligence e. none of the above Question 60 1 points Save When a seller has agreed to supply all of the needs of a buyer, there is a(an): a. requirements contract b. fulfillment contract c. output contract d. totality contract e. such contracts are not allowed under the UCC Question 61 1 points Save Which of the following debt item(s) are not extinguished by a Chapter 7 bankruptcy? a. alimony and child support payments b. back taxes c. debts incurred by fraud against creditors d. fines owed to the government e. all of the above Question 62 1 points Save When the party who breaches a contract has behaved maliciously, the court may want to discourage such behavior in the future by imposing what damages besides regular damages? a. compensatory b. expectancy c. liquidated d. nominal e. punitive Question 63 1 points Save The tort of misrepresentation can be based on: a. negligence or intent b. negligence, but not intent c. intent, but not negligence d. neither intent or negligence; it requires fraud e. deceit only Question 64 1 points Save The general rule regarding acceptance is: a. a reasonable acceptance is valid when sent b. an acceptance is always valid c. acceptances are valid when received d. an acceptance will be valid only if mailed e. an acceptance is a void unless received within forty-eight hours of the offer Question 65 1 points Save When a persons suffers an injury due to deliberate deception, there may be a tort of: a. fraud b. misrepresentation c. fraudulent misrepresentation d. deceit e. all of the above Question 66 1 points Save A person who is given the right to use property during their lifetime is given _____________ in the property. a. an easement b. a life estate c. a covenant d. a non-coercive claim e. none of these Question 67 1 points Save The concept behind the tort of invasion of privacy is to: a. encourage the public exposure of true private facts b. protect individual rights to solitude and freedom from unwarranted public exposure c. allow the government to tap telephone conversations d. place criminal sanctions on the use of a person’s name without their permission e. protect the publication of “false light” stories Question 68 1 points Save A business uses dangerous acid in production. It fails to warn a new employee of the risks involved in using the acid and the employee is injured. If the acid maker is sued, its defense will be that the business and the employee are: a. accomplices b. in violation of federal safety regulations c. sophisticated purchasers d. not covered due to lack of warranty e. ruthless capitalist oppressors Question 69 1 points Save A private nuisance involves: a. a reasonable interference with the enjoyment of land b. a substantial interference with the use of land c. an unreasonable interference with the enjoyment of land d. either b or c e. violation of a statute prohibiting bad acts Question 70 1 points Save A business organization made up of two or more persons who have entered into an agreement to carry on a business venture for a profit, and not all persons have the right to participate in management decisions is a: a. proprietorship b. limited partnership c. cooperative d. general partnership e. none of the above Question 71 1 points Save If a debtor refuses to pay an unsecured creditor, and the debtor is insolvent, the unsecured creditor collects: a. nothing b. one-half of the bill c. one-quarter of the bill d. the full amount of the bill, over time e. the bill plus associated attorney’s fees Question 72 1 points Save The dissolution of a partnership occurs: a. when an event takes place that precludes the partners from continuing in business b. during the process of completing any unfinished business of the partnership c. during the collection and distribution of the partnership’s assets d. when a certificate of limited partnership is executed e. none of the above Question 73 1 points Save The business organization that has at least one general partner and other investors who have limited liability is a: a. corporation b. general partnership c. limited partnership d. limited liability company e. proprietorship Question 74 1 points Save Today a corporation must be created according to: a. state law b. common law c. the Uniform Incorporation Act d. the Uniform Partnership Act e. federal statutory provisions Question 75 1 points Save Because of the war on terrorism, the U.S. government announced a prohibition on doing business with certain countries. Contracts that were in existence at the time the prohibition was announced were: a. unenforceable b. void c. voidable d. quasi-contracts e. unilateral Question 76 1 points Save Contract law is primarily: a. federal statutory law b. state common law c. federal common law d. state statutes e. international code law Question 77 1 points Save The award to a prevailing party in suit for breach of contract to restore his precontractual position is called: a. liquidated damages b. nominal damages c. punitive damages d. compensatory damages e. none of the above Question 78 1 points Save The right of utility companies to run power lines over land and put water lines under private property is based on: a. an easement b. a covenant c. a deed d. a seisin e. a remainder Question 79 1 points Save If the government forces you to sell 10 acres of your land to the Park Service, the Constitution requires that: a. you pay the government b. you continue to pay taxes on the land c. the government pay you “fair market value” for the land d. the government reconvey the title to the land to your heirs once it are done using it e. none of these Question 80 1 points Save Under some circumstances, courts do not require consideration for a promise to be enforced. The doctrine used by the courts to bind a promisor is called detrimental reliance or: a. restitution b. promissory estoppel c. revocation d. all of the above e. none of the above Question 81 1 points Save To transfer contract rights to a third party is: a. assignment b. delegation c. repudiation d. beneficiary e. none of the above Question 82 1 points Save The intentional tort of assault requires: a. that there be physical contact with the body b. that the injured party have knowledge of the danger and be fearful of the threat c. that the injured party be detained against his or her will d. that the defendant intended to injure the plaintiff e. all of the above Question 83 1 points Save The Franchise Rule requires that the following information must be provided except: a. the names and addresses of other franchisees b. an audited financial statement of the franchisor’s operation c. the background and experience of the other franchisees d. the responsibilities that the parties will have to each other under the agreement e. all of the above are required Question 84 1 points Save Property law in the United States has developed from: a. Norman law of the fifth century b. Roman law c. Jus Civile d. English common law e. None of the above Question 85 1 points Save Intentional torts are based on: a. negligence b. carelessness c. willful misconduct d. assumption of care e. obsequiousness Question 86 1 points Save A legally binding contract that can be terminated at the option of one of the parties is called: a. an executed contract b. a formal contract with an escape clause c. a voidable contract d. a void contract e. a parol evidence contract Question 87 1 points Save The courts may impose obligations on one party to a dispute to avoid unjust enrichment to the other party. This is called: a. unenforceable contract b. voidable contract c. implied contract d. void contract e. quasi-contract Question 88 1 points Save A composition involves: a. repaying a percentage of the total amount of a debt b. turning over obligations to pay to a third party c. allowing a guarantor to withdraw from a debt obligation d. turning over right to payment to a third party e. rehabilitating a creditor Question 89 1 points Save Don borrows $70,000 to buy a home. e. His mortgage is with Western Bank. Don is unable to make his mortgage payments. Western forecloses on Don’s house and sells it in a judicial sale. The bank gets $75,000 for the house. In this case, it: a. must return the extra $5,000 to Don b. keeps the extra money to reimburse it for its expenses c. must pay the secretary of state for the expenses the office has incurred d. obtain a mechanic’s lien against Don e. seize Don’s personal property to satisfy its claimsQuestion 90 1 points Save If you rent an apartment, the apartment is known as: a. a renthold b. a leasehold c. a lease in absentia d. a defeasement e. a retainer Question 91 1 points Save Under the perfect tender rule a buyer who receives good that are nonconforming: a. may reject them and withhold payment b. may cancel the contract and recover from the seller any prepayments c. must notify the seller of a rejection in a timely manner to allow the seller to either cure the non-conformities or reclaim the goods d. all of the above e. none of the above Question 92 1 points Save A business organization that involves a mix of partnership and corporation, but is not a legal entity, is known as a: a. sole proprietorship b. joint stock company c. cooperative d. syndicate e. none of the above Question 93 1 points Save According the UCC’s statute of frauds all: a. contracts involving the sale of land must be in writing b. sales of goods worth more than $50 must be in writing c. warranties must be written d. material terms must be included in written contracts e. none of the above Question 94 1 points Save Under a Chapter 13 proceeding, debts must be repaid usually: a. within one year b. within three years c. within seven years d. immediately e. none of the above; all debts are liquidated Question 95 1 points Save If a negotiable instrument is transferred by negotiation, the transferee takes the instrument: a. with all of the transferor’s rights and responsibilities b. free of the transferor’s responsibilities c. with the duties that have been assigned to the instrument by the bearer d. with the rights that have been assigned to the instrument by the holder in due course e. none of the above Question 96 1 points Save Contracts where one party, being in a position of strength, takes advantage of the other party, and which are generally held to be unenforceable, are called: a. unconscionable contracts b. contracts in restraint of trade c. exculpatory agreements d. contracts with public servants e. none of the above Question 97 1 points Save Which of the following is not true about the termination of a limited partnership? a. the bankruptcy of a limited partner does not force termination b. the business may continue to operate during dissolution c. creditors’ rights come before partners’ rights to funds d. limited and general partners share assets equally at the same time after the creditors are paid e. all of the above are true Question 98 1 points Save The tort defined as the intentional and unlawful control or appropriation of the personal property of another is: a. battery to property b. trespass to personal property c. negligent property use d. conversion e. nuisance Question 99 1 points Save Experts estimate the cost of the tort system range from: a. one to two billion dollars per year b. ten to twenty billion dollars per year c. twenty to forty billion dollars per year d. forty to one hundred fifty billion dollars per year e. no estimates are available Question 100 1 points Save An implied contract is one that: a. refers to the implied language of the original written contract b. is inferred from the behavior or circumstances of the parties c. refers to the definitions and usages of terms of trade as dictated by trade customs d. requires the substitution of terms from written agreements used in applying the UCC e. the courts imply the terms to achieve the execution of a public policy