Question 1 The lender usually has the right to collect the principal, but is NOT allowed to collect the interest if the loan is: for consumer…

Question 1

The lender usually has the right to collect the principal, but is NOT allowed to collect the interest if the loan is: 

a. for consumer purposes.

b. for commercial purposes.

c. usurious.

d. an online contract.

Question 2

The purpose behind which kind of license is simply to raise money? 

a. Business license

b. Regulatory license

c. E-license

d. Driving license

Question 3

Contracts must be in a signed writing to be enforced in court for: 

a. sale of real property.

b. an interest in the sale of real property.

c. leases over one year.

d. all of the above.

Question 4

A party may be prevented from asserting the statute of frauds as a defense through: 

a. promissory estoppel.

b. contractual estoppel.

c. legislative estoppel.

d. none of the above.

Question 5

If you make a statement that you know to be false, you are committing a(n): 

a. unintentional fraud.

b. misdemeanor.

c. intentional misrepresentation.

d. all of the above.

Question 6

A statement of opinion exaggerating a property’s benefits is called: 

a. puffing.

b. blowing.

c. lying.

d. waffling.

Question 7

When a party makes a material misrepresentation honestly believing it to be true, it is a(n): 

a. fraud.

b. innocent misrepresentation.

c. fib.

d. none of the above.

Question 8

Duress makes a contract: 

a. enforceable in court.

b. hard to read.

c. voidable.

d. iron clad.

Question 9

Inserting an unconscionable provision in a contract is: 

a. standard procedure.

b. unlawful.

c. a deceptive practice.

d. both b and c.

Question 10

Conditions precedent, subsequent, and concurrent may be either express or: 

a. denied.

b. implied.

c. impressed.

d. all of the above.

Question 11

Which of the following is a clause used either because a delay would cause serious damage to the parties or the clause is preprinted in a form? 

a. A performance clause

b. A spoilage clause

c. A time is of the essence clause

d. None of the above

Question 12

If the parties cannot resolve their differences, the contract is interpreted by the: 

a. court.

b. online legal service.

c. mediator.

d. none of the above.

Question 13

Any oral or verbal statement the parties made prior to the written contract is: 

a. tainted evidence.

b. inadmissible evidence.

c. parol evidence.

d. supplemental evidence.

Question 14

Contracts that are personal in nature are NOT assignable: 

a. under any circumstances.

b. without justifiable reason.

c. without consent.

d. all of the above.

Question 15

Assignments that are in writing and signed by the assignor are generally considered: 

a. irrevocable.

b. revocable.

c. void.

d. none of the above.

Question 16

When an obligation is fully performed, that party’s contractual obligation is: 

a. just beginning.

b. discharged.

c. breached.

d. all of the above.

Question 17

Tender occurs when a party makes an offer of performance and is: 

a. ready to perform.

b. willing to perform.

c. able to perform.

d. all of the above.

Question 18

If it is impossible to perform the contract, the parties are: 

a. discharged.

b. subject to arrest.

c. held to that contract.

d. referred to online ADR.

Question 19

A party is discharged from performance of his or her duties under the contract if he or she is a victim of a: 

a. tort breach.

b. material breach.

c. online breach.

d. all of the above.

Question 20

Taking reasonable action to make the damages as small as possible is: 

a. rescission.

b. restitution.

c. mitigation.

d. all of the above.

Question 21

Compensatory damages are the difference between the market price and the: 

a. fair price.

b. contract price.

c. wholesale price.

d. eBay price.

Question 22

The best measure of damages is the loss of: 

a. profit.

b. reputation.

c. product.

d. trust.

Question 23

Compared to nonmerchants, the Commercial Code imposes a higher standard upon merchants, due to their greater: 

a. online exposure.

b. morality.

c. knowledge.

d. none of the above.

Question 24

In an auction, the sale is completed: 

a. when the fat lady sings.

b. with the fall of the hammer.

c. when a reasonable time has passed.

d. none of the above.

Question 25

The basic obligation of the seller to the buyer under the UCC is to deliver: 

a. conforming goods.

b. reasonable facsimiles.

c. groceries.

d. tender.

Question 26

Where a buyer accepts part of any commercial unit, it is acceptance of: 

a. all future deliveries.

b. only that part of the unit.

c. that entire unit.

d. all of the above.

Question 27

Determining the time and place of delivery depends on whether the contract is a shipment or: 

a. trucking contract.

b. destination contract.

c. performance contract.

d. none of the above.

Question 28

The general rule is that NO greater title than what he or she has is transferred by the: 

a. buyer.

b. seller.

c. minor.

d. shipper.

Question 29

To determine who has the risk of loss, we first look to: 

a. who has the most money.

b. see who is guilty of negligence.

c. the contract itself.

d. none of the above.

Question 30

The risk of loss remains with the buyer until the buyer: 

a. returns the goods to the seller.

b. destroys the goods.

c. sells the goods to a third party online.

d. all of the above.

Question 31

When goods are sold, the seller must transfer good title, and the transfer must be: 

a. profitable.

b. rightful.

c. taxable.

d. none of the above.

Question 32

For an express warranty to exist in consumer goods, the warranty must be: 

a. in writing.

b. filed with the court.

c. sent via email.

d. all of the above.

Question 33

An express warranty is NOT created by a seller’s: 

a. expression of value.

b. opinion.

c. description of the goods for sale.

d. both a and b.

Question 34

The designation of whether or not a warranty is full or limited must be: 

a. hinted at.

b. orally agreed to.

c. conspicuous.

d. none of the above.

Question 35

An agent may be appointed by any person with: 

a. capacity to contract.

b. half a brain.

c. a contract to file.

d. a bank account.

Question 36

An agent owes the highest degree of diligent and loyal service to: 

a. his or her family.

b. online friends and contacts.

c. the principal.

d. none of the above.

Question 37

Usually, ratification of a contract will take place by the principal’s acceptance of: 

a. the benefit of the transaction.

b. partial satisfaction.

c. a handshake.

d. all of the above.

Question 38

At the very instant of death of the agent, the agency: 

a. ratifies.

b. terminates.

c. passes to the next of kin.

d. none of the above.

Question 39

A principal is liable if he or she ratifies an agent’s: 

a. wrongful act.

b. profitable act.

c. termination.

d. none of the above.

Question 40

When the employer pays the travel time of the employee, the employee is acting within the scope of employment and:

a. the employer has liability.

b. the employer has no liability.

c. the employee has liability.

d. none of the above.

Question 41

An organization that is established as a separate existence for the purposes of taxes is a:

a. business entity.

b. tax haven enterprise.

c. co-op business.

d. none of the above.

Question 42

Which of the following is usually the starting ownership entity?

a. C corporation

b. Limited partnership

c. Sole proprietorship

d. Limited liability company

Question 43

If you want a company name other than your surname for your sole proprietorship, what would you file with the County Clerk’s Office?

a. Articles of incorporation

b. Fictitious business name statement

c. Notice of name change statement

d. There is no need to file anything

Question 44

Which of the following would be a typical sole proprietor business?

a. Small home office business

b. Family restaurant

c. Construction firm

d. All of the above

Question 45

Which of the following is true regarding C Corporations?

a. Stockholders have limited liability.

b. A corporation is a legal entity that is not separate from its owners.

c. A corporation does not pay a separate income tax.

d. None of the above.

Question 46

A collection of federal and state government laws that regulate the conduct and organization of business corporations, generally to promote fair competition for the benefit of consumers is known as:

a. trust law.

b. antitrust law.

c. federal statute law.

d. none of the above.

Question 47

The legal doctrine used to interpret the Sherman Antitrust Act, one of the cornerstones of United States antitrust law, is the.

a. Robinson-Patman Act.

b. common sense doctrine.

c. rule of reason.

d. antitrust doctrine.

Question 48

The main purpose of the Sherman Antitrust Act was to:

a. destroy monopolies.

b. regulate shipping.

c. prohibit the creation of corporations.

d. limit terms for U.S. Congressional members.

Question 49

Violators of the Sherman Antitrust Act can be fined up to:

a. $350,000 for an individual.

b. $5 million for a corporation.

c. $10 million for a company.

d. both a and c are correct.

Question 50

The Clayton Act:

a. was declared illegal.

b. closed loopholes in the Sherman Antitrust Act.

c. prevents anticompetitive practices.

d. prohibits all mergers and acquisitions.