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Business Law Test

Business Law Test

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Published by maikypr
A final for a business law class
A final for a business law class

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Published by: maikypr on Jan 25, 2010
Copyright:Attribution Non-commercial


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Business Law
Exam Instructions: There are sixty questions on this exam and five extra credit questions. Youhave seventy minutes to complete it. This exam will make up forty-five percent of your overallgrad. In the True/False section indicate whether the sentence or statement is true (A) or false(B). In the multiple choice section identify the letter of the choice that best completes thestatement or answers the question. Each question is worth .75.Notes: I will update the grade sheet to include your score by 10:00 p.m. Pacific Time on May30th. If you have been identified as a student being considered for a grade increase, your finalgrade will be available on Web Smart by May 28, 2007
 ____1.The rights under a contract for personal service normally can be assigned. ____2.An intended beneficiary can sue directly to enforce a promisor's promise. ____3.A donee beneficiary can never sue to enforce the promise of a promisor. ____4.The vesting of contractual rights in a third party will always prevent the original parties to the contract frommodifying it. ____5.If a contract does
require that performance be rendered directly to a third party, the third party will beconsidered an
beneficiary. ____6.Conditions precedent are more common than conditions subsequent. ____7.Concurrent conditions occur only when the parties to a contract are required to perform their respective dutiessimultaneously. ____8.A contract that involves mechanical fitness is a contract in which performance must personally satisfy the party to whom performance is owed. ____9.A remedy is the means employed to enforce a right or to redress an injury. ____10.A party seeking to recover compensatory damages may also be entitled to recover incidental damages. ____11.A person's actions may cause a breach of contract or a tort, but not both. ____12.A breach of contract may entitle the
party to rescind the contract. ____13.Recovery under quasi contract may be used when one party partially performs under a contract that isunenforceable. ____14.Bankruptcy law has one goal-to ensure equitable treatment to creditors who are competing for a debtor'sassets. ____15.Bankruptcy proceedings are held in federal bankruptcy courts. ____16.In a sole proprietorship, the owner takes all of the profits. ____17.A sole proprietorship is a separate legal entity for tax purposes. ____18.Franchisees ordinarily pay no fee for a franchise license. ____19.Under no circumstances may a franchisor establish an additional franchise in a territory allotted to afranchisee. ____20.In some circumstances, a franchisor may be liable for the act of a franchisee's employee. ____21.Each partner has the right to sell partnership property as if he or she was the exclusive owner.
 ____22.A partner cannot "wrongfully" dissociate from a partnership. ____23.A partnership dissolves when a partner ceases to be associated with the carrying on of partnership business. ____24.In a limited partnership, the liability of a
partner is limited to the amount of capital he or she hasinvested in the partnership. ____25.Express powers of a corporation can be found in the law of the state of incorporation. ____26.In some states, a close corporation can operate without formal directors' meetings. ____27.To a corporation, bonds represent ownership. ____28.The holder of a life estate does
have the right to mortgage the property. ____29.A quitclaim deed warrants more than any other deed. ____30.When a landlord sells leased premises to a third party, any existing leases terminate automatically.
Multiple Choice
 Identify the letter of the choice that best completes the statement or answers the question.
 ____31.Ann and Burt sign a contract in which Ann agrees to paint Burt's house for $2,000. They agree later that Burtwill pay Ann's supplier, City Paint Store, the $2,000 directly. City Paint Store isa.a delegatee. b.an assignee.c.an incidental beneficiary.d.an intended beneficiary. ____32.A contract between Lee and Mary may
be assigned if ita.does not expressly permit assignment. b.involves a sale of goods.c.involves personal services.d.is oral. ____33.Fred and Gail enter into a contract by which Fred promises to deliver fertilizer to Gail. Fred subsequentlydelegates this duty to Holly. Fred isa.the delegatee and the obligee. b.the delegatee but not the obligee.c.the delegator and the obligor.d.the delegator but not the obligor. ____34.Ace Finance Company is a creditor beneficiary in a deal that involves Brad and Carol. Ace, like most creditor  beneficiaries, isa.a donee beneficiary. b.an incidental beneficiary.
c.an intended beneficiary.d.none of the above. ____35.Lois takes out a life insurance policy that names her son, Matt, as the beneficiary. This isa.a delegation. b.an assignment.c.a third party
beneficiary contract.d.a third party
beneficiary contract. ____36.Fred and Ed sign a contract by which Fred agrees to deliver a washing machine on July 31 in exchange for Ed's promise to pay the $500 purchase price on July 31. The delivery of the washing machine and the payment of $500 are examples of a.conditions precedent. b.concurrent conditions.c.conditions subsequent.d.illegal conditions. ____37.Protective Finishes, Inc. (PFI), agrees to paint Quinn's house, using a particular brand of "discount" paint. PFIcompletes the job but uses a different brand of discounted paint. This is most likelya.a complete excuse for Quinn's refusal to pay. b.a material breach.c.complete performance.d.substantial performance. ____38.AAA Autos contracts to sell a customized car to Barb. AAA installs a slightly used engine in the car, arguingthat a new engine would be too costly. Barb sues AAA. The court will most likely rule in favor of a.AAA, because a used engine is the same quality as a new engine. b.AAA, if the difference between the used and new engines is trivial.c.Barb, because the engine is not precisely what Barb wanted.d.Barb, if there is any difference between the used and new engines. ____39.Digital Data Company and E-Services, Inc., enter into a contract. A material breach of their contract willoccur a.if a party's performance is complete, but not substantial. b.if a party's performance is substantial, but not complete.c.if a party's performance is neither complete nor substantial.d.only if a party completely fails to perform.

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