Business Law / Accounting Final

In a transaction between Retail Products Corporation and Standard Stores, Inc., the most important factor in determining whether an express warranty is created is whether

Choose one answer.

	a. Retail Products intends to create a warranty.
	b. Retail Products makes a promise.
	c. Retail Products' promise becomes part of the basis of the bargain.
	d. Retail Products' promise is in writing.

Question 2

Marks: 1

Margaret contracts to deliver fifty tables to Furniture Warehouse on May 1. She calls Furniture on April 15 to notify it that she is going to cancel the contract because her workers have gone on strike. Furniture may

Choose one answer.

	a. for a commercially reasonable time await Margaret's performance.
	b. sue Margaret for breach of contract.
	c. suspend its own performance.
	d. all of the above.

Question 3

Marks: 1

Able Tool Company makes hedge trimmers. Brad is injured while using an Able trimmer and sues the company for product liability based on negligence. To win, Brad must show that

Choose one answer.

	a. Able did not use due care with respect to the trimmer.
	b. Able misrepresented a material fact regarding the trimmer.
	c. Brad was experienced in the use of trimmers.
	d. Brad was in privity of contract with Able.

Question 4

Marks: 1

Ann obtains from Beta Insurance Company a policy that provides that after it has been in force for a certain time, Beta cannot question statements made in the application. This is

Choose one answer.

	a. an antilapse clause.
	b. an arbitration clause.
	c. an appraisal clause.
	d. an incontestability clause.

Question 5

Marks: 1

Dick, the sole proprietor of Deep Sea Tours, obtains an insurance policy that protects him against liability resulting from injuries to the person or property of another. This is

Choose one answer.

	a. casualty insurance.
	b. fidelity insurance.
	c. key-person insurance.
	d. liability insurance.

Question 6

Marks: 1

Mac files a petition for a discharge in bankruptcy. Mac's failure to appear at a meeting of the creditors listed in Mac's schedules may result in Mac being

Choose one answer.

	a. fined.
	b. held in contempt.
	c. denied a discharge of bankruptcy.
	d. imprisoned.

Question 7

Marks: 1

Value Hardware, Inc., makes and sells hedge trimmers, for which it issues "limited" warranties. While using a Value trimmer, Wendy is injured. Under the Magnuson-Moss Warranty Act, an action against the maker of the trimmer may be brought by

Choose one answer.

	a. the Federal Trade Commission only.
	b. the Federal Trade Commission or Wendy, but not Value.
	c. Value or Wendy, but not the Federal Trade Commission.
	d. Wendy only.

Question 8

Marks: 1

Martin poses has a lawyer and represents Allen in a contract dispute. The dispute is settled in Allen's favor in abitration. However, when Allen discovers Martin is not licensed as an attorney he refuses to pay Martin's fee. Martin sues his former client in small claims court. In this case the court will most likely

Choose one answer.

	a. award Martin a portion of his fee, less punitive damages.
	b. enforce the contract since Allen won his case.
	c. refuse to enforce the contract since Martin is not licensed to practice law.
	d. find Martin in contempt of court practicing law without a license.

Question 9

Marks: 1

Bill offers to sell his Consumer Service Center business to Dina for $100,000. Dina replies, "The price is too high. I will offer to buy it for $90,000." Dina has

Choose one answer.

	a. accepted the offer.
	b. made a counteroffer without rejecting the offer.
	c. rejected the offer and made a counteroffer.
	d. rejected the offer without making a counteroffer.

Question 10

Marks: 1

Delta Finance Company obtains a judgment against Eve for a debt and wishes the sheriff to seize and sell Eve's property. Delta must return to the court that issued the judgment and obtain a writ of

Choose one answer.

	a. attachment.
	b. contribution.
	c. execution.
	d. redemption.

Question 11

Marks: 1

Finest Business Company issues an instrument in favor of General Supplies, Inc. For the instrument to be negotiable, it need not

Choose one answer.

	a. be an unconditional promise or order to pay.
	b. be payable on demand or at a specific time.
	c. be signed by Finest Business Company.
	d. recite the consideration given in exchange for a promise to pay.

Question 12

Marks: 1

Regional Railroad Company's trains operate without required noise-control devices, which the firm maintains interfere with fuel efficiency. This can result in

Choose one answer.

	a. a fine and imprisonment.
	b. a fine only.
	c. imprisonment only.
	d. loss of the public's goodwill only.

Question 13

Marks: 1

Better Products Corporation makes and markets a variety of household goods. All Better Products' product labels must identify

Choose one answer.

	a. the address to which complaints can be directed.
	b. the federal agency that inspected the product.
	c. the manufacturer.
	d. the percentage of the product that consists of artificial substances.

Question 14

Marks: 1

Pam applies for a job at a Quik Mart store but is not hired due to her gender. Pam files a suit against Quik Mart. A prima facie case is established. Pam

Choose one answer.

	a. loses the suit regardless of Pam's response.
	b. loses the suit unless Pam asserts an appropriate defense.
	c. wins the suit regardless of Quik Mart's response.
	d. wins the suit unless Quik Mart asserts an appropriate defense.

Question 15

Marks: 1

Digital Video Company contracts to sell DVD players to E-lectric Stores, Inc. Digital Video ships nonconforming goods, which E-lectric accepts. E-lectric can recover damages equal to the difference between

Choose one answer.

	a. E-lectric's sale price and the contract price.
	b. the contract price and the value of the goods as promised.
	c. the value of the goods as promised and their value as accepted.
	d. the value of the goods as accepted and E-lectric's sale price.

Question 16

Marks: 1

Eagle Equipment Company manufactures a backhoe, which it sells to U-All Rentals. U-All leases the backhoe to consumers, including Doug. Doug is injured by while using the backhoe, which U-All has not properly maintained. In a product liability suit based on negligence, Doug may recover from

Choose one answer.

	a. no one.
	b. Eagle or U-All.
	c. Eagle only.
	d. U-All only.

Question 17

Marks: 1

Regional Supplies Company insures its real and personal property, as well as the lives of its key employees, to protect its financial interest should some event undermine its security. This is

Choose one answer.

	a. risk bargaining.
	b. risk management.
	c. risk pooling.
	d. risky.

Question 18

Marks: 1

American Products Company and Best Manufacturing, Inc., enter into a contract for the sale of a certain quantity of machine parts. The UCC reads into this contract is the concept of

Choose one answer.

	a. good faith.
	b. square dealing.
	c. the mere image rule.
	d. unconscionability.

Question 19

Marks: 1

Regional Products, Inc., agrees to sell to Quantity Dealers Corporation a certain amount of goods but no mention is made of where the goods are to be delivered. In general, the UCC requires that the delivery take place at

Choose one answer.

	a. a neutral place of business halfway between the parties' locations.
	b. a UCC-designated warehouse.
	c. Regional's place of business.
	d. Quantity's place of business.

Question 20

Marks: 1

Silicon Computers manufactures hard drives. Dave discovers that his Silicon drive is defective. Dave sues Silicon for product liability based on misrepresentation. To win, Dave must show that

Choose one answer.

	a. Dave knew and appreciated the risk caused by the defect.
	b. Dave suffered an injury caused by the defect.
	c. the "defect" was a commonly known danger.
	d. Silicon sold the drive to Dave.

Question 21

Marks: 1

Kay is a salesperson for Liberty Financial Corporation. Mac is also a Liberty salesperson. Neil is Kay and Mac's supervisor. Owen is a Liberty customer. Liberty may be liable for sexual harassment to Kay by

Choose one answer.

	a. Mac only.
	b. Mac, Neil, or Owen.
	c. Mac or Neil only.
	d. Neil only.

Question 22

Marks: 1

Pure Capital Corporation wants to perfect a security interest in a negotiable instrument owned by Quality Securities, Inc., and payable to Rich Investment Company. This can be accomplished by

Choose one answer.

	a. contacting the party to whom the instrument is payable.
	b. filing a financing statement.
	c. notifying the appropriate federal officer.
	d. taking possession of the instrument.

Question 23

Marks: 1

Fine Furniture Store sells household consumer goods. To create a purchase-money security interest, Fine Furniture must

Choose one answer.

	a. assign, to a collecting agent, a portion of its accounts payable.
	b. assign, to a collecting agent, a portion of its accounts receivable.
	c. extend credit for part or all of the purchase price of the goods.
	d. refer purchasers to a third-party lender.

Question 24

Marks: 1

Bay City wants to acquire undeveloped land within the city limits to convert into a public park. Bay City brings a judicial proceeding to obtain title to the land. This is

Choose one answer.

	a. adverse possession.
	b. an easement.
	c. constructive eviction.
	d. the power of eminent domain.

Question 25

Marks: 1

Alpha Communications, Inc., makes and sells cell phones. In deciding whether the phones are merchantable, a court would focus on whether

Choose one answer.

	a. Alpha violated any laws or regulations.
	b. the phones are fit for the ordinary purpose for which such goods are used.
	c. the phones are made according to the best manufacturing methods.
	d. the phones are quality products.

Question 26

Marks: 1

Under the Marine Protection, Research, and Sanctuaries Act (the Ocean Dumping Act), Bayside Chemical Company may dump its chemical waste into the ocean

Choose one answer.

	a. after obtaining a permit.
	b. before obtaining a permit.
	c. without a permit.
	d. not at all.

Question 27

Marks: 1

Regional Bank wants to perfect its security interest in timber owned by Standard Lumber, Inc. Most likely, a financing statement should be filed with

Choose one answer.

	a. the local chamber of commerce.
	b. the county clerk.
	c. the federal loan officer.
	d. the secretary of state's office.

Question 28

Marks: 1

NuTech Company agrees to sell computer equipment to Office Stores, Inc. (OSI) for OSI to market to its customers. Their contract will be unenforceable if it does not include

Choose one answer.

	a. the duration of the deal.
	b. the price of the goods.
	c. the quantity of the goods.
	d. the requirements of OSI's customers.

Question 29

Marks: 1

Home Products Store buys furniture from Imperial Furniture, Inc. The parties agree that the furniture will be shipped "F.O.B. Imperial's warehouse" via Jiffy Shipping Corporation. The furniture is lost in transit. The loss is suffered by

Choose one answer.

	a. Home Products and Imperial Furniture, but not Jiffy Shipping.
	b. Home Products, Imperial Furniture, and Jiffy Shipping.
	c. Home Products only.
	d. Imperial Furniture only.

Question 30

Marks: 1

Ace Purchasing Corporation orders from Best Sales Company goods that are stored in a Coastal Properties, Inc., warehouse. Ace pays for the goods, delivery is via the transfer of a negotiable warehouse receipt, and Ace moves the goods out of the warehouse. The risk of loss passes to Ace when it

Choose one answer.

	a. orders the goods.
	b. pays for the goods.
	c. receives the negotiable warehouse receipt.
	d. moves the goods out of the warehouse.

Question 31

Marks: 1

Business Company stores office furniture with Complete Storage, Inc., under a contract that limits the warehouser's liability for lost or damaged property to $500. The furniture is stolen. The loss is most likely suffered by

Choose one answer.

	a. Business Company and Complete Storage.
	b. Business Company only.
	c. Complete Storage only.
	d. neither Business Company nor Complete Storage.

Question 32

Marks: 1

William carelessly tosses a lit cigarette onto the ground which starts a small fire in a pile of leaves. The fire then spreads and burns down Charlie's house. Wiliam is responsible for the damages to Charlie's house because

Choose one answer.

	a. his negligence was the actual cause of the damages to Charlie's house.
	b. his actions constitute gross negligence.
	c. his negligence was the proximate cause of the damage to Charlie's house.
	d. he has strict liability since smoking is a dangerous activity.

Question 33

Marks: 1

Olga, a salesperson for Pre-owned Cars tells Qunicy, "This is the best car I've ever seen." This statement is

Choose one answer.

	a. an express warranty
	b. an implied warranty
	c. puffery
	d. a warranty of title

Question 34

Marks: 1

Quality Equipment Company contracts for a sale of goods to Regional Sales Corporation. Quality can enforce its right to payment

Choose one answer.

	a. only after Regional has actually inspected the goods.
	b. only after Regional has had an opportunity to inspect the goods.
	c. only before Regional has inspected the goods.
	d. whether or not Regional has had the chance to inspect the goods.

Question 35

Marks: 1

Mike receives a payroll check from National Computer Systems, Inc., and indorses it by signing "Mike" on the back of the check. This is

Choose one answer.

	a. a blank indorsement.
	b. a qualified indorsement.
	c. a restrictive indorsement.
	d. a special indorsement.

Question 36

Marks: 1

Dependable Credit Corporation asks Eagle Supply Company to agree to a security agreement that provides for coverage of the proceeds from the sale of after-acquired property. This is

Choose one answer.

	a. a first-in, first-out rule.
	b. a floating lien.
	c. a funds guaranty.
	d. a future advance.

Question 37

Marks: 1

Medico contracts for a sale of medical equipment to Children's Hospital. For Medico to tender delivery of goods, Medico must

Choose one answer.

	a. only give the hospital notice to enable it to take delivery.
	b. only hold conforming goods at the hospital's disposal.
	c. give the hospital notice and hold the goods at its disposal.
	d. none of the above.

Question 38

Marks: 1

Standard Company denies a promotion to Tony, a member of a minority, when he fails to pass a required test. Few members of minorities have passed the test. The number of promoted employees who are members of minorities does not reflect their percentage in the local labor market. In a suit against Standard, if Tony can show a connection between the test and the number of promoted minority members,

Choose one answer.

	a. it must be proved that Standard had discriminatory intent.
	b. it must be proved that Standard has other discriminatory practices.
	c. it must be proved that the test had a discriminatory purpose.
	d. no evidence of discriminatory intent is necessary.

Question 39

Marks: 1

Lakeshore Paints, Inc., operates a plant next to Clear Lake. The goals of the Clean Water Act include

Choose one answer.

	a. eliminating the discharge of anything into any water.
	b. maintaining the current levels of fresh water and salt water.
	c. making water safe for boating.
	d. protecting fish and wildlife.

Question 40

Marks: 1

Doctors Clinic orders 1,000 bandages from Emergency Supplies Company but fails to specify the sizes. The bandages are delivered in an assortment of sizes. Doctors Clinic may

Choose one answer.

	a. accept the bandages "as is" only.
	b. accept the bandages "as is" or reject the entire shipment only.
	c. accept only the bandages that it wants and reject the rest.
	d. reject the entire shipment only.

Question 41

Marks: 1

Best Products Corporation obtains an insurance policy that provides indemnity against losses in trade or losses caused by the dishonesty of employees, the insolvency of debtors, or breaches of contract. This is

Choose one answer.

	a. casualty insurance.
	b. fidelity insurance.
	c. key-person insurance.
	d. liability insurance.

Question 42

Marks: 1

Tab stores video equipment with U-Store-It under a contract that excuses the warehouser from liability for any damage. A fire due to U-Store-It's negligence destroys the equipment. The loss is most likely to be imposed on

Choose one answer.

	a. U-Store-It only
	b. neither Tab or U-Store-It
	c. Tab only
	d. Tab and U-Store-It

Question 43

Marks: 1

Ed opens Ed's Dry Cleaning store in a small retail center. Performance standards for Ed's operation, as regards hazardous air pollutants, requires

Choose one answer.

	a. compliance with specific standards for each pollutant.
	b. the use of the best available control technology.
	c. the use of the maximum achievable control technology.
	d. the use of the most affordable control technology.

Question 44

Marks: 1

Oregon passes a law requiring special disc brakes on all bicycles sold in the state. Federal law does not require such brakes and no other states have a similar law. If challenged, this law is like to be

Choose one answer.

	a. found unconstitutional based on the Commerce Clause of the U.S. Constitution.
	b. upheld since individual states have the authority to create their own laws.
	c. found constitutional if Oregon can prove the brakes improve safety.
	d. preempted based on existing federal laws.

Question 45

Marks: 1

Craft Engineering, Inc., contracts for a sale of technical instruments to Delta Design Company. Before the date on which performance is due, Craft notifies Delta that it will not perform. This is

Choose one answer.

	a. anticipatory repudiation.
	b. perfect tender.
	c. rejection of performance.
	d. revocation of acceptance.

Question 46

Marks: 1

Clear Sight Company, which is based in Delaware, agrees to sell fifty windows, currently stored in Florida, to Great View, Inc., which is based in Hawaii. Absent an agreement to the contrary, delivery will occur in

Choose one answer.

	a. California.
	b. Delaware.
	c. Florida.
	d. Hawaii.

Question 47

Marks: 1

Pisa Pizza Company contracts to sell 1,000 cases of frozen pizzas to Quality Grocers, Inc., but refuses to deliver. Due to a spice shortage, Quality cannot obtain pizza elsewhere. Quality's right to recover the goods from Pisa is the right of

Choose one answer.

	a. cover.
	b. replevin.
	c. repudiation.
	d. specific performance.

Question 48

Marks: 1

Cody obtains from Dependable Insurance Company a policy that provides that if a dispute arises between the parties concerning the settlement of a claim, the dispute must be submitted to an impartial third party, not a court, for resolution. This is

Choose one answer.

	a. an antilapse clause.
	b. an arbitration clause.
	c. an appraisal clause.
	d. an incontestability clause.

Question 49

Marks: 1

First Financial Corporation is a secured party with a security interest in property owned by Retail Sales Company. Perfection of this security interest may not protect First Financial against the claim of

Choose one answer.

	a. a bank.
	b. a buyer in the ordinary course of business.
	c. a subsequent lien creditor.
	d. a trustee in bankruptcy.

Question 50

Marks: 1

Quality Tools Corporation (QTC) makes hammers and other tools. Rita is injured while using a QTC hammer. She sues the company for product liability based on negligence. To defend successfully against the suit, QTC may show that

Choose one answer.

	a. QTC did not sell the hammer to Rita.
	b. Rita misused the hammer in a foreseeable way.
	c. Rita's injury resulted from a commonly known danger.
	d. the hammer was not altered after QTC sold it.

Question 51

Marks: 1

Office Applications Company (OAC) orders six laser printers from Printing Products, Inc. (PPI), to be delivered by PPI. Before PPI's truck arrives with the goods, OAC tells PPI it will not pay. The printers are lost in transit. The loss is suffered by

Choose one answer.

	a. OAC only.
	b. OAC to the extent of a deficiency in PPI's insurance coverage only.
	c. PPI to the extent of a deficiency in OAC's insurance coverage only.
	d. PPI only.

Question 52

Marks: 1

Machine Manufacturing, Inc., employs four hundred workers at three locations in three states. Excluded from protection under the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 are workers who

Choose one answer.

	a. are fired for gross misconduct.
	b. are laid off for budgetary reasons.
	c. have their hours decreased from full-time to part-time.
	d. voluntarily quit their jobs.

Question 53

Marks: 1

National Toy Company makes a toy that the Consumer Product Safety Commission (CPSC) believes to be hazardous. The CPSC may require National Toy to

Choose one answer.

	a. remove the toy from the market.
	b. report on any items sold, but not remove the toy from the market.
	c. remove the toy from the market and report on any items sold.
	d. none of the above.

Question 54

Marks: 1

Town Style Stores orders leather jackets from Universal Clothing Company. Universal mistakenly ships denim jackets, which Town rejects and returns via Value Transport, Inc. During the return, the jackets are lost. The loss is suffered by

Choose one answer.

	a. Town only.
	b. Town and Universal, but not Value.
	c. Town, Universal, and Value.
	d. Universal only.

Question 55

Marks: 1

Consumer Financial Corporation (CFC) extends credit to consumers. CFC is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on

Choose one answer.

	a. educational achievement.
	b. income.
	c. marital status.
	d. unfavorable credit reports.

Question 56

Marks: 1

Quinn writes a check to Ron on May 1 that is drawn on his account at State Bank. Ron presents the check on December 15. The bank is

Choose one answer.

	a. not obligated to pay the check under any circumstances.
	b. not obligated to pay the check unless Ron can show he is an HDC.
	c. obligated to pay the check if Quinn has sufficient funds in his account.
	d. obligated to pay the check under any circumstances.

Question 57

Marks: 1

Jane's orally promises to pay $400 to Ken. This is

Choose one answer.

	a. a negotiable instrument.
	b. a nonnegotiable instrument, because it is not in writing.
	c. a nonnegotiable instrument, because the amount is within the Statute of Frauds.
	d. a nonnegotiable instrument, because it does not recite consideration.

Question 58

Marks: 1

Rita believes that Shady Grove Apartments, her landlord, has violated the law in a way that entitles her to withhold rent. This remedy is generally associated with

Choose one answer.

	a. failure to provide adequate security against crimes in common areas.
	b. breach of the implied warranty of habitability.
	c. discrimination.
	d. breach of the convenant of quite enjoyment.

Question 59

Marks: 1

To acquire the ownership of a mountain cabin by adverse possession, Cody must occupy the cabin exclusively, continuously, and peaceably for a specified period of time

Choose one answer.

	a. in an, open, hostile, and adverse manner.
	b. until the owner files a suit.
	c. without the owner's knowledge.
	d. with the state's permission.

Question 60

Marks: 1

Mona files an employment discrimination suit against Nationwide Corporation (NC) under Title VII. If Mona shows that NC acted with malice or reckless indifference, she may recover

Choose one answer.

	a. compensatory damages only.
	b. compensatory or punitive damages.
	c. neither compensatory nor punitive damages.
	d. punitive damages only.

Question 61

Marks: 1

Royal Breakfast Cafe buys 100 bags of oranges from Sweet Citrus Company. The parties agree to ship the oranges "F.O.B. Royal Breakfast" via Total Trucking Company. The oranges rot in transit. The loss is suffered by

Choose one answer.

	a. Royal Breakfast and Sweet Citrus, but not Total Trucking.
	b. Royal Breakfast, Sweet Citrus, and Total Trucking.
	c. Royal Breakfast only.
	d. Sweet Citrus only.

Question 62

Marks: 1

Abel & Baker, a partnership that owns and operates Able Bakers, a chain of bakeries, obtains insurance on the lives of its two partners. This is

Choose one answer.

	a. casualty insurance.
	b. fidelity insurance.
	c. key-person insurance.
	d. liability insurance.

Question 63

Marks: 1

Bill leases an apartment from Cathy. Two months later, Bill moves out, and arranges with Dian to move in and pay the rent to Cathy for the rest of the term. This is

Choose one answer.

	a. an assignment.
	b. an easement.
	c. an eviction.
	d. a sublease.

Question 64

Marks: 1

Dan writes a check to Eve on his account at First State Bank. The bank dishonors the check even though Dan has sufficient funds in his account. The bank is

Choose one answer.

	a. liable to Dan only.
	b. liable to Dan and Eve.
	c. liable to Eve only.
	d. not liable to Dan or Eve.

Question 65

Marks: 1

At Sea Food Cafe, Tom believes that he was overcharged and shoves Wally, a waiter. Wally sues Tom, alleging that the shove was a battery. Tom is liable if

Choose one answer.

	a. Sea Food did not overcharge Tom.
	b. the shove was offensive.
	c. Tom acted out of malice.
	d. Wally did not wait on Tom.

Question 66

Marks: 1

Professional Products Company contracts to deliver emergency medical supplies to Rescue & Relief Corporation using only Sky Airways. If Sky declares bankruptcy, then

Choose one answer.

	a. only Rescue & Relief may elect to perform the contract.
	b. Professional may deliver the goods in any reasonable manner.
	c. Sky must designate a substitute carrier.
	d. the entire contract is void.

Question 67

Marks: 1

Allen owns a duplex that he leases to Brad and Cora. Allen may sell

Choose one answer.

	a. the duplex at any time.
	b. the duplex, but only after the lease term expires and Brad and Cora have moved out.
	c. the duplex, but only with Brad and Cora's permission.
	d. the lease, but not the duplex.

Question 68

Marks: 1

Olympic Steel contracts for a sale of steel to A&B Machines, Inc. After Olympic ships the steel, A&B breaches the contract. Incidental damages arising from the breach include the costs to Olympic of

Choose one answer.

	a. designing the goods.
	b. manufacturing the goods.
	c. marketing the goods.
	d. transporting the goods.

Question 69

Marks: 1

Joe, who works as an employee for Interstate Trucking Corporation, suffers an injury in an accident. Joe will be compensated under state workers' compensation laws

Choose one answer.

	a. only if the injury occurred off the job.
	b. only if the injury occurred on the job.
	c. whether the injury occurred on or off the job.
	d. none of the above.

Question 70

Marks: 1

Before undergoing surgery that could cause paralysis, Greg, a violinist, gives his concert violin to Holly. The surgery is successful, and Greg suffers no paralysis. Greg can

Choose one answer.

	a. not revoke his gift because it was a gift causa mortis.
	b. not revoke his gift because it was a gift inter vivos.
	c. revoke his gift because it was a gift causa mortis.
	d. revoke his gift because it was a gift inter vivos.

Question 71

Marks: 1

Over a forty-year period, Ellen worked in a variety of jobs. She was also occasionally unemployed, briefly hospitalized, and suffered a temporary disability. She retired last year. The key federal law on all of these subjects is

Choose one answer.

	a. the Consolidated Omnibus Budget Reconciliation Act.
	b. the Employee Retirement Income Security Act.
	c. the Federal Insurance Contributions Act.
	d. the Social Security Act.

Question 72

Marks: 1

Gina writes and signs a check payable to "Happy Market." Irma, Happy's manager, indorses the check "For deposit only." This is

Choose one answer.

	a. a blank indorsement.
	b. a qualified indorsement.
	c. a restrictive indorsement.
	d. a special indorsement.

Question 73

Marks: 1

Frank opens an account at Electric City, and buys a DVD player, but makes no payments on the purchase. In an attempt to collect the debt, Electric City contacts Frank's parents. This is a violation of

Choose one answer.

	a. the Fair and Accurate Credit Transactions Act.
	b. the Fair Debt Collection Practices Act.
	c. the Truth-in-Lending Act.
	d. none of the above.

Question 74

Marks: 1

First Web Bank, an online financial institution, keeps financial information about its customers. To review this information, the U.S. Department of Justice must first obtain

Choose one answer.

	a. a warrant only.
	b. the customers' permission only.
	c. a warrant or the customers' permission.
	d. none of the above.

Question 75

Marks: 1

Rural Products Company (RPC) possesses farmland. RPC has the right to use the property, including harvesting the crops, for ten years. RPC does not have the right to extract the coal under the land. This is

Choose one answer.

	a. a fee simple absolute.
	b. a leasehold estate.
	c. a life estate.
	d. an easement.

Question 76

Ethan is seventeen years old. Under the Fair Labor Standards Act, Ethan cannot work

Choose one answer.

	a. during school hours.
	b. in a hazardous occupation.
	c. more than eighteen hours per week.
	d. without a special permit.

Question 77

United Farms offers to sell Value Bakeries, Inc., fifty bushels of wheat. Value's representative Wendy responds, "We agree to buy fifty bushels only if the wheat is Grade A quality." Wendy's statement is

Choose one answer.

	a. a breach of the parties' contract.
	b. a counteroffer.
	c. a fulfillment of the parties' contract.
	d. an acceptance.

Question 78

Marks: 1

Aero Corporation requires its pilots to have 20/20 vision without glasses. Neither Beth, an African-American female, nor Clyde, a fifty-year-old male, can satisfy this requirement. Relief under the Americans with Disabilities Act is

Choose one answer.

	a. available to Beth and Clyde.
	b. available to Beth only.
	c. available to Clyde only.
	d. not available to Beth or Clyde.

Question 79

Friendly Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, Friendly must inform potential borrowers of

Choose one answer.

	a. credit terms offered by other lenders and its own credit terms.
	b. only credit terms offered by other lenders.
	c. only its own credit terms.
	d. only the credit terms that will convince borrowers to "close the deal."

Question 80

Miguel buys 1,000 bales of hay from Nuevo Farms. The parties agree that the hay will be transported F.A.S. via Overland Transport Company. Nuevo Farms' truck carrying the hay explodes before reaching Overland Transport. The loss is suffered by

Choose one answer.

	a. Miguel and Nuevo Farms, but not Overland Transport.
	b. Miguel, Nuevo Farms, and Overland Transport.
	c. Miguel only.
	d. Nuevo Farms only.

Question 81

Allen and Becky enter into a sales contract. With respect to the specific contractual provisions set out in the UCC, Allen and Becky may

Choose one answer.

	a. agree to different terms only to a reasonable extent.
	b. agree to different terms unless they "get caught."
	c. agree to whatever terms they wish.
	d. not agree to different terms.

Question 82

Metro Daily and New City Newsstand enter into a contract under which Metro agrees to deliver a certain quantity of newspapers to New City each day. The contract does not include a price term. In a suit between the parties over the price, a court will

Choose one answer.

	a. determine a reasonable price.
	b. impose the lowest market price.
	c. refuse to enforce the agreement.
	d. return the parties to the positions they held before the contract.

Question 83

Ed's Painting Company contracts with Sam to paint his house for $2,000. They start the work and are over half finished when Sam tells them he doesn't have enough money to pay for the job. They finish the job anyway and sue Sam for the amount of the contract. The most likely outcome is

Choose one answer.

	a. Ed's Painting completed the work at their own risk knowing Sam could not pay so they cannot enforce the contract.
	b. Sam will be required to pay consequential and punitive damages.
	c. Sam will have to pay since substantial performance was completed before he tried to rescind the contract.
	d. Sam will only have to pay for the amount of work done up to the time he rescinded the contract.

Question 84

Leo removes a small, uprooted, discarded tree from a construction site on property owned by Mortgage Brokers, Inc., with the permission of Neil, the on-site supervisor. Leo replants the tree on his property and due to his care, it grows tall. This is

Choose one answer.

	a. a bailment.
	b. accession.
	c. confusion.
	d. production.

Question 85

Online Community Bank, an online financial institution, sells nonpublic personal information about Quinn and other customers to E-Marketers, Inc., an unaffiliated third party, without permission. The bank may be liable under

Choose one answer.

	a. the Federal Trade Commission Act.
	b. the Financial Services Modernization Act.
	c. the Right to Financial Privacy Act.
	d. the Uniform Electronic Transactions Act.

Question 86

Consumer Stores, Inc., signs a lease for a storefront owned by Downtown Property Company. Unlike a purchaser of real property, Consumer Stores

Choose one answer.

	a. acquires only temporary possession of the premises.
	b. enjoys exclusive possession of the premises.
	c. holds only temporary title to the premises.
	d. retains temporary, exclusive possession and title to the premises.

Question 87

Holly files an employment, gender-based discrimination suit against Imperial Corporation under Title VII, on a disparate-impact theory. To succeed, Holly must show that Imperial hires fewer women than the percentage of

Choose one answer.

	a. qualified women in the local labor market.
	b. qualified women in the United States.
	c. women in Imperial's state.
	d. women who apply to Imperial for work.

Question 88

Ed can write checks on his account at First City Bank. Gina steals the checks, forges Ed's signature, and cashes the checks at First City. The bank is excused from any liability if, after receipt of the first forged check, Ed fails to report the forgeries within

Choose one answer.

	a. five days.
	b. fourteen days.
	c. one year.
	d. three years.

Question 89

Tom is killed while rock climbing in a national park. His family sues the park claiming that they failed to warn him of dangerous conditions. The park's best defense would be based on a theory of

Choose one answer.

	a. assumption of risk.
	b. comparative negligence.
	c. strict liability.
	d. contributory negligence.

Question 90

Liquid Cash Company is a brick-and-mortar money service business. Money Online, Inc., is an Internet-based money service. The Uniform Money Services Act requires a state license to be obtained by

Choose one answer.

	a. Liquid Cash only.
	b. Liquid Cash and Money Online.
	c. Money Online only.
	d. neither Liquid Cash nor Money Online.

Question 91

Standard Wholesalers, Inc., asks United Purchasing Company to pay for goods with a certified check. A certified check

Choose one answer.

	a. cannot be forged.
	b. does not discharge its drawer from liability.
	c. does not discharge prior indorsers from liability.
	d. is guaranteed by a bank.

Question 92

Recreational Supplies, Inc. (RSI), and Sam, the owner of a Tourist Time shop, orally agree to a sale of beach balls and seashells for $1,000. Sam gives RSI a check for $400 as a partial payment. This contract is

Choose one answer.

	a. enforceable to the extent of $400.
	b. fully enforceable because it is for specially made goods.
	c. fully enforceable because it is oral.
	d. not enforceable.

Question 93

Doug writes a check for $100 payable to Eve on his account at First State Bank. The bank is

Choose one answer.

	a. the bearer.
	b. the drawee.
	c. the drawer.
	d. the holder.

Question 94

On behalf of Digital Supplies Company, Ed signs an instrument in which he promises to deliver 1,000 feet of cable to First Transactions, Inc., on March 1. This instrument is

Choose one answer.

	a. negotiable.
	b. nonnegotiable, because "1,000 feet of cable" is not a fixed amount of money.
	c. nonnegotiable, because it does not indicate a specific type of cable.
	d. nonnegotiable, because it does not recite any consideration.

Question 95

Marks: 1

Lloyd and Molly are employees of New Tech Corporation. They have the same job. Under the Equal Pay Act, New Tech can legitimately pay Lloyd more than Molly on the basis of

Choose one answer.

	a. Lloyd's greater production only.
	b. Lloyd's greater production or seniority.
	c. Lloyd's greater seniority only.
	d. neither Lloyd's greater production nor his greater seniority.

Question 96

Dora leases a house from Evan for a two-year term. To ensure the validity of their lease, it should include

Choose one answer.

	a. a description of the premises.
	b. a due date for the payment of the property taxes.
	c. a requirement that Dora perform structural repairs to the house.
	d. a requirement that Evan carry liability insurance.

Question 97

Owen is a holder of a promissory note obtained from Purchase Money, Inc. Regarding the defenses against payment of the note to which Purchase Money is subject, Owen, as an ordinary holder, is subject to

Choose one answer.

	a. more defenses.
	b. no defenses.
	c. some defenses, but not as many.
	d. the same defenses.

Question 98

AAA Rental Corporation and Bright Lights, Inc., are parties to an oral agreement for a lease of goods with payments in excess of $10,000. They may satisfy the Statute of Frauds by

Choose one answer.

	a. mutually agreeing not to commit fraud.
	b. restating the terms in a phone call.
	c. setting out the terms in an e-mail.
	d. shaking hands on the deal.

Question 99

Great Stores, Inc., hires Haul-away Company to transport fifty large-screen HDTVs from San Diego to Phoenix. En route, a pothole causes the truck to crash, damaging the goods. Liability for the damage most likely rests with

Choose one answer.

	a. Great Stores and Haul-away.
	b. Great Stores only.
	c. Haul-away only.
	d. neither Great Stores nor Haul-away.

Question 100

Great Video Corporation sells high-definition televisions. Under most circumstances, Great Video will be presumed to have warranted that its title to the TVs is

Choose one answer.

	a. bad.
	b. fair.
	c. good.
	d. the best that money can buy at the list price.