1.Mark asked his son bob, age 17, to take his truck and to sell wheat grown by Mark at the Farmers's Market in town if Bob stops at a gas station on his way to town to sell the wheat and buys gas for Mark's truck by charging the purchase on his father's account, will Bob's purchase be binding on his father?

a. No, because bob's agency relationship with Mark was not supported by consideration.

b. no, because bob was a minor

c. yes, because bob has express authority.

d. yes, because bob had implied authority.

e. none of the above.

2.Joe executed a valid security agreement with First Time Bank covering Joe's new purchase of machinery and equipment for his new factory. However, First Time Bank failed to perfect (by filling or possession) its security interest in the equipment and machinery.

A.First Time Bank may not attempt to enforce its interest in the collateral because it failed to perfect

B. First Time Bank must first immediately file a financing statement to be able to proceed against Robert and repossess the collateral

C. First Time Bank's failure to perfect its security interest does not affect the validity of its interest in the collateral as against the debtor

D. two of the above are correct

E. None of the above are correct

3.ORANGE Corporation moved into new offices under a five year lease. ORANGE's Vice President of Marketing signed the lease with Mark, the Landlord, without being expressly authorized to do so by the board of directors. ORANGE Corp occupied the premises and paid rent for six months, but now wants to rescind the lease. The Chairman of the Board of Directors, calls Lawyer and asks advice. The Lawyer correctly replies:

a. No, you may not rescind the lease because the Vice President had the implied authority to enter into leases for the corporation.

b. No, you may not rescind the contract because the Board ratified the vice president's unauthorized act.

c. Yes, you may rescind the lease because the vice president was not expressly authorized to enter that lease.

d. Yes, you may rescind the lease because only the president of the corporation is authorized to enter into contracts for the corporation

e. None of the above are correct.

4.Which of the following corporate activities, if any, require shareholder approval?

a. authorization to borrow money

b. authorization to purchase corporate investments in stocks and bonds

c. authorization to issue/sell shares of common stock or preferred stock in a public or private offering

d. two of the above are correct

e. none of the above are correct

5.Peter owns a car dealership. His customers, including Linda, are predominately Spanish-speaking. When purchasing one of his cars, Peter makes his customer sign a contract which is entirely English and contains excessive dealer charges. Linda buys one of his cars and later refuses to pay the dealer charges on the contract. If Peter sues her, what is Linda's best defence to enforcement of the contract?

a. undue influence

b. fraud

c. unconscionability

d. misrepresentation

6.Mary bought a $8,000 car from the Neo Motor Company by making a $3,000 down payment and by signing a security agreement which required monthly payments for four years until the remaining $5,000 was paid off. After two years of making payments, Mary defaulted still owing $3,000. Neo gave Mary notice that it intended to repossess the car, did so, and subsequently sold it for $1,800 at a private sale. The expenses of the repossession and sale of the car amounted to $300 so that Neo credited Mary's account with $1,500. This left Mary owing Neo $1,500.Which of the following statement is correct?

A. Neo can hold Mary for the $1500 deficiency

B. The expenses of retaking and selling the collateral shouldn't have been credited to Mary's account. Thus, Mary was left owing only $1200

C. Because the collateral was not sold at a public auction, the sale was not conducted in a "commercially reasonable manner" and therefore subject to challenge by Mary.

D. all of the above are correct.

Please explain why