1. The parties to a sales contract may agree as to the time, place, and manner of delivery.
2. True
3. False

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QUESTION 2

1. Unless the parties agree otherwise, the credit period begins to run from the time the goods are shipped.
2. True
3. False

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QUESTION 3

1. If a buyer purchases similar goods elsewhere after a breach by the seller, this is known as cover.
2. True
3. False

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QUESTION 4

1. The requirement that goods tendered to a buyer must conform in all ways to the terms of the contract is called the:
2. Complete performance rule.
3. Perfect tender rule.
4. No right to cure rule.
5. Substantial performance rule.

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QUESTION 5

1. Which of the following is true about a buyer's right of inspection?
2. This right must be agreed to in the contract in order for it to apply.
3. This right exists even if not mentioned in the contract, and the seller has the sole right to deterine the time and place the right may be exercised.
4. This right exists even if not mentioned in the contract, and the buyer has the sole right to determine the time and place the right may be exercised.
5. If not mentioned in the contract, the buyer has the right to inspect goods in a reasonable time, place, and manner prior to accepting or paying for them.

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QUESTION 6

1. Which of the following isnota seller's remedy?
2. Right to withhold delivery
3. Right to resell goodsRight to cancel the contract
4. Right to cover

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QUESTION 7

1. Express warranties must be written.
2. True
3. False

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QUESTION 8

1. The failure of a manufacturer of a product to warn users of the dangerous propensities of a product can constitute negligence.
2. True
3. False

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QUESTION 9

1. The U.S. Circuit Court of Appeals for the Tenth Circuit upheld the constitutionality of the do-not-call rules.
2. True
3. False

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QUESTION 10

1. The term "warranty" may be defined as:
2. A contractual default.
3. A contractual promise.
4. Caveat emptor.
5. A tender of performance.

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QUESTION 11

1. A public policy reason for imposing strict product liability on all in the chain of distribution is:
5. These parties are able to insure against product liability costs.
6. These parties should be punished for putting dangerous products on the market.Consumers should be able to choose dangerous products if they want to.
7. Negligence was making it too easy for plaintiffs to recover.

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QUESTION 12

1. Which of the following is not regulated by the FDA?
3. Eye shadow
4. Lipstick
5. Facial makeup
6. Ordinary household soap

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QUESTION 13

1. The Revised Article 3 of the Uniform Commercial Code is called "Negotiable Instruments" rather than "Commercial Paper."
2. True
3. False

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QUESTION 14

1. The signature of the drawer or maker of a negotiable instrument can appear anywhere on the face of the document.
2. True
3. False

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QUESTION 15

1. A holder is the same as a holder in due course.
2. True
3. False

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QUESTION 16

1. Which of the following isnotone of the four general types of negotiable instruments?
2. Notes
3. Drafts
4. Certificates of deposit
5. Money orders

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QUESTION 17

1. Jane owes Bob $500.Bob requests that Jane sign a document, so Jane signs the following document:"I owe Bob $500.(Signed) Jane."This document is:
2. A draft.
3. A check.
4. A note.
5. Not a negotiable instrument.

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QUESTION 18

1. A holder in due course takes an instrument free of which defenses?
2. Personal only
3. Real only
4. Free of all defenses
5. Free of no defenses

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QUESTION 19

1. If unsecured credit has been extended to a judgment-proof debtor, the creditor is unlikely to collect the debt.
2. True
3. False

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QUESTION 20

1. Revised Article 9 of the UCC governs secured transactions in personal property.
2. True
3. False

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QUESTION 21

1. A proof of claim is not required to be filed by a secured creditor.
2. True
3. False

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QUESTION 22

1. Which of the following is true about the distinction between secured and unsecured credit?
2. Secured debt is debt that has already been paid, and unsecured has not yet been paid.
3. Secured debt is expected to be collected, whereas collection of unsecured debt is doubtful.
4. Secured debt will be collected over more than one year whereas unsecured debt is expected to be collected within one year.
5. Secured debt has collateral associated with it, whereas unsecured debt has no associated collateral.

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QUESTION 23

1. Article 9 of the UCC does not cover a security interest in the following:
2. Land.
3. Inventory.
4. Equipment.
5. Patents and copyrights.

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QUESTION 24

1. Bankruptcy proceedings are commenced under:
2. State law.
3. Federal law.
4. Local (city or county) law.
5. State or federal law at the option of the debtor.

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QUESTION 25

1. Sole proprietorships are the most common form of business organization in the United States.
2. True
3. False

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QUESTION 26

1. The right to participate in the management of the business is evidence of a partnership.
2. True
3. False

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QUESTION 27

1. In an LLC, all owners have limited liability.
2. True
3. False

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QUESTION 28

1. The major disadvantage of a sole proprietorship is:
2. The difficulty and cost of formation.
3. The unlimited liability for the business's debts.
4. The sharing of management authority with others.
5. The difficulty in transferring ownership to others.

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QUESTION 29

1. Which of the following best describes the requirements of a partnership?
2. An association of persons, owning property, sharing gross receipts
3. An association of persons, owning a business in order to make a profit
4. An association of persons, owning property in order to make a profit
5. An association of persons

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QUESTION 30

1. Which types of partners in a limited partnership should participate in management?
2. General partners only.
3. Limited partners only.
4. Both general and limited partners.
5. General partners only, unless there are no general partners, and in that case, limited partners participate in management.

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QUESTION 31

1. The shares of a corporation can generally be sold without the approval of the other shareholders.
2. True
3. False

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QUESTION 32

1. A tender offer is an offer made directly to the board of directors of the corporation to be acquired.
2. True
3. False

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QUESTION 33

1. Ordinarily, a merger requires approval of both boards of directors and the shareholders of both corporations.
2. True
3. False

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QUESTION 34

1. Which of the following isnota characteristic of a corporation?
2. Unlimited liability of owners
3. Free transferability of sharesPerpetual existence
4. Centralized management

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QUESTION 35

1. Which of the following generally doesnotneed to be included with the articles of incorporation?
2. The period of duration of the corporation
3. b.The classes and preferences of stock
4. Whether preemption rights are given to the stockholders
5. A copy of the by-laws

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QUESTION 36

1. The first meeting of the board of directors after the bylaws are filed is called the:
2. Promoters' meeting.Adoption meeting.
3. Initiation meeting.
4. Organizational meeting.

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QUESTION 37

1. A principal-agent relationship is formed when an employer hires an employee and pays that employee a salary.
2. True
3. False

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QUESTION 38

1. The work-related test takes into consideration the motivation of the agent when he commits an intentional test.
2. True
3. False

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QUESTION 39

1. In its early years, the American Federation of Labor allowed only skilled labor members to join.
2. True
3. False

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QUESTION 40

1. Agency always requires:
2. Both an agent and principal who are adults.
3. A written contract.
4. Consideration on the part of both the principal and the agent.
5. Intent by both the principal and agent to be in the arrangement.

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QUESTION 41

1. In the context of agency, ratification refers to:
2. Reaffirming a contract that one previously agreed to.
3. Agreeing, after reaching majority, to be bound by a contract entered into as a minor.
4. Agreeing to be bound to a contract entered into by an agent that exceeded the agent's authority at the time the agent entered into it.
5. Getting the appropriate agency to agree to take steps to reduce an excessively large rodent population.

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QUESTION 42

1. In an agency for a fixed term, such as one year, prior to the end of the stated period, the agent has:
2. The power, but not the right, to terminate the arrangement.
3. The right, but not the power, to terminate the arrangement.
4. Both the power and the right to terminate the arrangement.
5. Neither the power nor the right to terminate the arrangement.

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QUESTION 43

1. Stock certificates are tangible personal property.
2. True
3. False

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QUESTION 44

1. The finder of lost property acquires the same rights as the finder of mislaid property.
2. True
3. False

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QUESTION 45

1. Ordinary bailments include bailments for the sole benefit of the bailor, mutual benefit bailments, and bailments for the sole benefit of the bailee.
2. True
3. False

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QUESTION 46

1. A stock certificate is an example of:
2. Tangible, personal, private property.
3. Intangible, personal, private property.
4. Intangible, real, private property.
5. Intangible, personal, public property.

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QUESTION 47

1. The finder of lost property has:
2. No rights in the property.
3. Rights that are good against everyone but the true owner.Rights that are good against everyone including the true owner.
4. Rights to use the property until it must be turned over to the state.

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QUESTION 48

1. The requirement that an insured would suffer a loss in the absence of insurance if the insured property is damaged or destroyed is the requirement of:
3. Indemnification.
4. Reinsurance.
5. Insurable interest.
6. Beneficiary interest