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Study Resources (Business Management)

21.The implied warranty of fitness for a particular purpose applies to merchants only. 22.The implied warranty of fitness for a particular purpose arises any time there is a merchant seller. 23.For the implied warranty of fitness for a particular purpose to apply, the seller must have actually known the purpose for which.
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21.              A party who has been induced to enter into an illegal contract because of fraud, duress, or undue influence can sue the other party and recover whatever consideration he has paid. 22.              Someone who is not yet a licensed real estate agent can legally collect a fee for real estate.
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96.A buyer agrees to purchase “two cars” from an elevator company.  All material terms are contained in a written contract, but “two cars” is not further defined.  Which of the following evidence can be admitted if there is a dispute over what “two cars” refers to? a.Oral evidence that before the.
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41.              Generally, a misrepresentation of law is actionable. 42              In order to recover damages for fraud, the innocent party must prove that the fraud caused economic injury. 43.              Ordinarily silence is not a misrepresentation. 44.              A preexisting relationship is a required element of a duress claim. 45.The case in the text involving Mr. Johnson,.
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89.In order to be enforceable, a covenant not to compete must be reasonable in each of the following aspects except:a.              Length of time the restriction is in effect. b.Scope (i.e., activities affected) of the restriction. c.Amount paid to the one who gives up the right to compete. d.Geographic area of the restriction. 90.Lisa has.
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57.Seller, a manufacturer of videocassette recorders (VCRs) contracts to deliver 100 VCRs to a buyer.  The VCRs are delivered at 5:00 p.m. on a Friday.  The buyer unloads the VCRs onto his dock.  About one month later, the goods are inspected.  It is discovered that all the VCRs have a.
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51.              If goods are held by the seller to be picked up by the buyer, the risk of loss passes to the buyer upon “tender of delivery,” if the seller is a merchant. 52.              C.I.F is a pricing term that indicates the seller is responsible for paying the cost of the.
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66.The FDCA is administered by the U.S. Department of Health. ] 67.Criminal actions of the FDCA are referred to the U.S. Department of Justice for prosecution. 68.Federal law prohibits selling any food that contains any impurities. 69.Eye shadow and other cosmetics are subject to FDA regulation. 70.The regulation of pacemakers, kidney dialysis machines, and so.
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86.Which of the following is not a characteristic of consequential damages? a.They arise from circumstances outside of the contract b.They can be recovered in addition to compensatory damages c.They can be collected only if they are foreseeable or known to the other party d.They are fixed in amount at the time the contract is.
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86.Under the UCC, if a purported acceptance to an offer contains additional terms: a.It is treated as a rejection and counteroffer. b.If both parties are merchants, there is a contract and the additional terms may or may not become part of the contract. c.If neither party is a merchant, there is no contract. d.It.
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66.Buyer and seller enter into an agreement to sell a mobile home and lot.  Before the deed can be signed, the mobile home is destroyed by a tornado.  Which of the following doctrines would most likely allow the buyer to avoid his contractual obligations? a.Impossibility b.Commercial impracticality c.Frustration of purpose d.Failure of a condition.
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MULTIPLE CHOICE QUESTIONS—LEGAL CONCEPTS 78.The doctrine of caveat emptor means: a.Let the seller beware. b.Let the seller be liable for all damages. c.Let the buyer beware. d.That the legal remedy must be just and fair. 79.The term “warranty” may be defined as: a.A contractual default. b.A contractual promise. c.Caveat emptor. d.A tender of performance. 80.The following will create an express warranty.
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31.              The doctrine of unconscionability is available in most cases when a party has made a bad bargain. 32.              The requirement that a party’s assent to a contract be genuine or real is regerred to as mutual assent. 33.When only one party to a contract is mistaken about a material fact that.
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56.Drug manufactures have no duty to place their products in containers that cannot be opened by children. 57.Failure to warn about a product’s dangers can make an otherwise safe product defective. 58.The concept of “defect” is expanding. 59.The original seller of the product is liable for an injury caused by a modification of.
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MULTIPLE CHOICE QUESTIONS—LEGAL CONCEPTS 37.The basic obligation of a seller of goods to transfer and deliver goods to the buyer in accordance with the terms of the contract is known as: a.Performance of delivery. b.Tender of delivery. c.Delivery as agreed. d.Anticipatory delivery. 38.A computer dealer whose place of business is in Chicago contracts on March 15.
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106.In a noncarrier case for the sale of goods, which of the following is most important in determining when risk of loss passes? a.Whether the seller is a merchant b.Whether any warranties have been disclaimed c.Whether the buyer is a merchant d.When title passes 107.If a contract calls for the goods to be shipped “F.A.S..
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99.Under which of the following circumstances can the mistaken party rescind a contract when there is a unilateral mistake? a.The mistaken party first held the mistaken belief prior to entering into the contract b.The mistaken belief is one that a reasonable person would have c.The nonmistaken party was aware of the mistaken party’s.
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31.              If an employee breaches an employment contract, the employer can recover the costs incurred to replace the employee plus any increase in salary paid to the new employee in excess of what would have been paid to the old employee. 32.              Mitigation of damages is a doctrine that requires a.
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21.              When there is substantial performance of a contract with a minor breach, the other nonbreaching party may sue to recover the cost to repair the defect. 22.              A material breach allows the other party to rescind a contract. 23.              When one party materially breaches a contract, the other nonbreaching party is.
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129.Which of the following contracts is required to be in writing under the Statute of Frauds? a.A contract for the sale of one piece of business equipment costing $700 b.A contract for the sale of two pieces of business equipment costing $300 each c.A contract for the purchase of a second-hand piece of.
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MULTIPLE CHOICE QUESTIONS—LEGAL CONCEPTS 66.The proper relationship between the common law and the UCC regarding sales is: a.Common law no longer applies to sales. b.The UCC no longer applies to sales. c.The UCC controls sales, but where the UCC is silent, common law still controls. d.The common law controls sales, but where the common law.
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79.The _______________ test is used by most courts to determine legal insanity as it relates to contractual capacity.                 Reasonable person                 Irresistible impulse                 Objective cognitive understanding                 Right or wrong 80.Arthur had been adjudicated insane.  During his period of insanity, Arthur sold some unimproved real estate to Katrina for $5,000, its fair value. .
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Chapter 12 TRUE/FALSE QUESTIONS 1.Article 2(A) of the UCC contains warranty provisions applicable to leases. 2.Express warranties must be written. 3.It is necessary to use formal words such as “warrant” or “guarantee” in order to create an express warranty. 4.An express warranty can be made by mistake. ] 5.The statement “This car has a six cylinder engine”.
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61.              If a contract to sell real estate is signed by an agent, then the contract granting the agent authority to sell the property must also be in writing in states that follow the equal dignity rule. 62.              Where the doctrine of promissory estoppel applies, the person who would ordinarily assert.
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11.              A party that is a merchant in one transaction is a merchant for all transactions in which he/she is involved. 12.              If a homeowner sells a used lawnmower to his neighbor, Article 2 of the UCC does not apply. 13.              A sporting goods dealer is a merchant with respect to golf.
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109.A plaintiff in a fraud case must prove the following except: a.Justifiable reliance. b.False statement of a material fact. c.Intent to deceive. d.Discovery of the falsehood within a reasonable time. e.Knowledge that the statement is false. 110.Which of the following is true about misrepresentations of law? a.A misrepresentation of law is usually not a basis to recover.
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Chapter 11 TRUE/FALSE QUESTIONS 1.Tender of delivery under the UCC requires the seller to deliver goods to the buyer. 2.In order to receive a remedy under the UCC for a breach of a sales contract, a party must commence a lawsuit in the appropriate state or federal trial court. 3.The parties to a sales.
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76.Which of the following statements is not true about a finance lease as defined in Article2A of the UCC? a.         A finance lease is a two-party transaction where the lessor sells the goods to the lessee and provides the financing of the goods. b.A finance lease results in the title being transferred.
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67.If a seller breaches a contract for the sale of goods and the buyer then acquires similar goods from another supplier, this is known as the right of: a.Alternate acquisition. b.Specific performance. c.Cover. d.Contract cancellation. 68.In a contract for the sale of a unique good such as an antique, specific performance would be available as.
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21.              A “firm offer” may be made by a nonmerchant seller. 22.              A “firm offer” can be held open as long as 180 days without consideration. 23.              Under Article 2 of the UCC, acceptances are effective when dispatched. 24.              Under Article II of the UCC, there are detailed rules for the proper methods.
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Chapter 10 TRUE/FALSE QUESTIONS 1.              Article 2 of the UCC applies to transactions in goods. 2.              A sale is the passage of title from the seller to the buyer for a price. 3.              The UCC applies to contracts for services as well as to contracts for the sale of goods. 4.              Sales of stocks and.
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MULTIPLE CHOICE QUESTIONS—LEGAL CONCEPTS 46.Regarding the assignment of contract rights: a.The party owed a particular right under a contract is called the obligee. b.The party who owes the duty of performance is called the obligor. c.The party who transfers his right to another is called the assignor. d.A, B, and C e.A and B only 47.Joan owes.
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11.              In general, an incidental beneficiary has no enforceable contract rights because she was not intended to have such rights. 12.              A covenant is an unconditional promise to perform. 13.              In a condition subsequent, the duty of performance is discharged upon the failure to meet a condition after the duty has already.
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76.What is the general goal of awarding compensatory damages in a breach of contract situation? a.Return the parties to the situation that they were in prior to the contract b.Punish the breaching party for the wrongdoing c.Modify the contract terms to be more equitable to the parties d.Place the nonbreaching party in the same.
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31.Conspicuous is a requirement that warranty disclaimers be noticeable to the average person. 32.The Magnuson-Moss Warranty Act requires that certain goods have express warranties on them. ] 33.A seller who conceals a defect in a product but who does not affirmatively misrepresent the quality of the product cannot be sued for intentional misrepresentation. ] 34.Greenman.
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11.The statement “This car has an actual mileage of 25,000 miles” is an express warranty. 12.The implied warranty of merchantability requires that goods be fit for the ordinary purposes for which they are intended. 13.The implied warranty of merchantability includes a warranty that goods delivered in groups are of a consistent quality. 14.The.
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41.Because strict liability is a tort doctrine, privity does not apply, therefore even bystanders can recover under strict liability. 42.The most widely recognized articulation of the doctrine of strict liability is found in Section 402A of the Restatement (Second of Torts). ] 43.The manufacturer of a subcomponent of a product cannot be sued.
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Chapter 9 TRUE/FALSE QUESTIONS 1.              An assignor is someone who subsequently gains rights under a preexisting contract. 2.              Rights under a contract are delegated and duties are assigned. 3.              All contract rights are freely assignable and permission of the obligor is not necessary 4.              The assignee is said to stand in the shoes of the.
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MULTIPLE CHOICE QUESTIONS—LEGAL CONCEPTS 69.Generally speaking, the contract of a minor: a.Must be in writing. b.Is not enforceable by the minor. c.Is void. d.Is voidable at the minor’s option. 70.The main purpose for making contracts involving minors voidable at the minor’s option is: a.To protect the minor from unscrupulous adults. b.To reduce the amount of litigation in the.
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98.What is the significance of a  “defect” in a product liability case based on strict liability? a.It is not necessary, but can be used to eliminate the need to prove that there was an injury. b.It is a required element in proof of such a case. c.Its presence would allow punitive damages to.
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41.              Unborn animals are not identified until they are born. 42.              A destination contract requires the seller to ship the goods to the buyer via a common carrier. 43.              If no document of title is needed and the goods are identified at the time of contracting, title passes at the time of.
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47.If a buyer delivers nonconforming goods prior to the date that delivery is due, the seller has the opportunity to make the shipment conform under the: a.Time to conform rule. b.Right to make perfect. c.Reasonable delay doctrine. d.Right to cure. 48.If a seller has delivered nonconforming goods that have been rejected by the buyer, the.
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31.The formation of sales and lease contracts requires no consideration. 32.An agreement modifying a sales or lease contract needs no consideration to be binding. 33.              Under the Uniform Commercial Code, it is possible for a nonmerchant to be liable on a contract for the sale of goods of $500 or more without.
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