QUESTION 1 The principal has a right to avoid any contract entered into with the agent if an agent breaches the agency agreement or duties under a contract. O True O False QUESTION 2 A negotiable instrument is a signed writing containing an unconditional promise to pay an exact sum of money. O True O False QUESTION 3 An instrument is payable at a definitive time if it is which of the following: O All of the above Payable on a date readily ascertainable at the time of the promise or order is issued O Payable on a specified date O Payable within a definite period of time after being presented O Both b and cQUESTION 4 If there is a conflict between the UCC and common law contract rules, the common law rule controls. O True O False QUESTION 5 A promissory note is not a debt. O True O False QUESTION 6 All Employees who deal with third parties are usually considered agent of their employer. O True O FalseQUESTION 7 The creation of a negotiable instrument always involved a rigorous negation between the parties. O True O False QUESTION 8 A promissory note is a written promise made by one person to pay another a specific sum. O True O False QUESTION 9 The UCC provides open-term provisions that can be used to fill gaps in an agreement between the parties. All of the following are open term provisions, EXCEPT: O Open delivery term O Open Price term O Open Lease term O Open Payment term O None of the aboveQUESTION 10 Agency relationship can be formed in which following ways. O By operation of the law O By agreement O By nomination Both A and B O All of the above QUESTION 11 The UCC governs the sale and lease of goods. Sale or lease agreements must conform to the provisions provided in the UCC. O True O False QUESTION 12 Goods are an item of property that is movable. Goods may be tangible or intangible property. O True O FalseQUESTION 13 A merchant is which of the following: O A person who deals in goods of the kind in the sale A person who employs a merchant to act on his behalf O A person who holds himself out as having special expertise, knowledge or skill Both A and C O All of the above QUESTION 14 A lease is the transfer of the right to possess and use goods for a period of time in exchange for payment. The person who acquires the right to possession and use of the good is the lessee. O True O False QUESTION 15 The statute of frauds requires a writing for any sales contract for good priced at $500 or more or any lease contract requiring total payments of $1,000 or more. The writing must be signed by both parties. O True O FalseQUESTION 16 All of the following are parties to a draft, EXCEPT: C) Drawer Q Payee C) Drawee O Payor QUESTION 17 The principal owes all of the following duties to the agent, EXCEPT: Q Cooperation Q Safe work Environment Q Compensation Q Indemnication (:3. None of the above QUESTION 18 A check is a negotiable instrument. O True O False QUESTION 19 Courts used the predominant factor test to determine whether a contract for a combination of goods and services is primarily a sale of goods or a sale of services O True O FalseQUESTION 20 Under the UCC, an open quantity term allows the court to determine a reasonable quantity for the contract based on prior dealings between the parties. O True O False QUESTION 21 A fiduciary is a person who undertakes to act on behalf of and primarily for the benefit of another. A fiduciary relationship involves trust and confidence. O True O False QUESTION 22 A signature on a negotiable instrument must be legible. O True O FalseQUESTION 23 The most important factor the IRS considers when determining employee status is the length of time the working relationship exists. O True O False QUESTION 24 All of the following are requirements for negotiability, EXCEPT: O Writing Unconditional promise or order to pay O Signed by maker or drawer O None of the above QUESTION 25 An agent owes to the principal duties of performance, loyalty, notification, obedience and accounting. A breach of any of the fiduciary duties may justify the principal's termination of the agency. O True O False