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Business Law Multiple ChoiceChoose the single choice among the 4 choices that best completes the statement or answers thequestion.1.A contract can be avoideda.based on a mistake of fact.b.based on a mistake of judgment.c.if acceptance is promptly revoked.d.based on a mutual mistake of judgment.2.When the offeror and offeree of a contract are mistaken as to the same material facta.either party can rescind the contract at any time.b.both parties must agree to rescind the contract.c.either party can rescind the contract but only if done so promptlyd.there can be no recission if it is a third party beneficiary contract.3.When a mistake occurs as to the market value of the object of a contracta.either party can enforce the contract.b.either party can enforce the contract if the mistake if not more than 20% of the true market value.c.either party can rescind the contract for failure of consideration.d.the contract is enforceable by either party if the object of the contract is tangible personal propertybut not real property.4.A contract made as the result of undue influencea.is voidable. b.voidc.is enforceable because undue influence is not part of contract law.d.is void if the contracting party subject to undue influence is a minor.5.The Uniform Commercial Code (UCC) covers all phasesa. of contracts for the sale or lease of everything.b.of contracts for the sale or lease of goods.c.of contracts for the sale or lease of tangible personal property and intangible personal property. d.of contracts for the sale or lease of tangible personal property, intangible personal property and realestate.6. The UCC says that a lessee’s obligations under a commercial finance leasea.are the same as under any other type of lease.b.are irrevocable and independent from the financer’s obligations.c.depend on the total monetary obligation owed by the lessee.d.can be disclaimed by the lessee if done promptly.7. A merchant’s firm offera.must be supported by consideration to remain open.b.does not require consideration to remain open.c.can be made orally and still remain open.d.cannot remain open for more than 10 consecutive business days.8.The UCC requiresa.at least nominal consideration to modify a contract.b.no consideration to modify a contract.c.adequate consideration to modify a contract.d.that a modification of a contract be in writing.9.Caveat emptor meansa.the law rules.b.have a care.c.let the buyer beware.d.impatience costs.10. A seller’s statement about the value of goods being sold isa.an express warranty.b.an implied warranty.c. not an express warranty.d. effective for 72 hours.11.Automobile mechanical defectsa.are subect to different laws depending on the place of manufacture. b. according to the UCC must be brought to the attention of the selling auto dealer within 90 days ofpurchase.c.are subect to Lemon Laws.d.are required by federal law to be corrected by the manufacturer in the next model of the automobile.12.The Magnusson-Moss Warranty Acta.requires the seller of consumer goods to give a written warranty of fitness for purpose to the buyer ofthe goods.b.can be superseded by state law.c.does not require the seller of consumer goods to give a written warranty to the buyer of the goods.d. was ruled unconstitutional by the U.S. Supreme Court in 2015.13.Under the Employment at Will principlea.employees can quit for good,bad or no reason but they cannot be fired except for good cause.b.employees can bring a wrongful discharge action against employers.c.unemployment compensation benefits cannot be paid to fired employees if employers object.d.employers can fire employees for good,bad or no reason.14.The Norris-LaGuardia Act of 1932a.provides for the formation and operation of labor unions.b.enhanced the right of management in the event of a strike.c.protects strikes, picketing and primary boycotts of all types.d.protects peaceful strikes, picketing and primary boycotts of all types.15.The Taft-Hartley Act of 1947a.made it illegal for a labor union to call for a strike against the manufacturer of defense products,e.g.,military firearms, tanks, bombers.b.limited the duration of any strike to six consecutive months without the consent of the NLRB. c.made it a criminal offense for members of a labor union sponsoring a strike to cross the strikers’picketline.d.allows for the passage of state right-to-work laws. 16.The Landrum-Griffin Act of 1959a.allows for the passage of state right-to-work laws.b.limited the duration of any strike to six consecutive months without the consent of the NLRB.c.made it illegal for a labor union to call for a strike against the manufacturer of defense products.d.outlawed all secondary boycotts (including “hot cargo” agreements).17.The parol evidence rulea.prohibits prior or contemporaneous written or oral evidence to contradict written contacts terms.b.prohibits only prior or contemporaneous oral evidence to contradict written contract terms.c.applies only to contracts for the sale of real estate.d.applies only to contracts for the sale of tangible and intangible personal property.18.The UCC requires that contracts for the sale of good priced at _________ or more be in writing.a.$1,500b.$500c.$2,000d.$2,50019.Contracts containing ambiguous termsa.are seldom enforceable under the UCC.b.can be avoided by either party making a written declaration of ambiguity.c.constitute an exception to the parol evidence rule.d.are not subject to binding arbitration.20.A contract that cannot, by its terms, be performed within one year from the date it was madea.is an exception to the parol evidence rule.b.must be renewed prior to the expiration of one year to be enforceable.c.is known as a “year and a day” contract.d.must be in writing to be enforceable.21.Being in privity of contract meansa.one who has rights in or to a contract.b.one who has limited rights in or to a contract.c.one who is in close proximity to a contract. d.one who is a party to a private contract and not a government contract.22.Delegationa.is forbidden in contracts for the sale of real estate.b.is prohibited in a contract calling for the performance of duties that are personal in nature.c.requires use of a form specified by the statute of frauds.d.relieves the delegator of legal liability to the obligee.23.A third party beneficiary of a contracta.can only enforce the obligations of the promisor with the aid of the promisee.b.has no rights against the promisor unless the third party beneficiary timely informs the promisor inwriting of his/her status as third party beneficiary.c.can enforce contractual obligations against the promisor.d.has no cause of action against the promisor.24.An incidental beneficiary of a contracta.must be identified as such in the contract.b.has the same status as a third party beneficiary of a contract.c.must provide consideration to the promisor.d.cannot enforce a contract to which he or she is not a party.25.The key feature defining an employer/employee relationship isa.the contract between the parties.b.whether or not the employee is entitled to reasonable compensation.c.whether the employer is entitled to the absolute loyalty of the employee.d.the employer’s right to control the employee in the performance of the employee’s tasks.26.In determining whether a person is an employee or an independent contractor the Internal RevenueService will chiefly considera.the degree of control the employer exercises over the work to be done.b.how the person is paid (periodically or by project).c.what skill does the work require.d.what is the length of employment.27.A gratuitous agenta.owes no duties to the principal. b.cannot be liable for breach of contract because there is no contract.c.is held to a lower standard of care.d.can act to benefit himself/herself as well as the principal.28.When an agent retains benefits or profits that belong to his/her principala.an action against the agent for replevin may be brought by the principal.b.the principal may demand an accounting from the agent.c.the principal may demand that the agent post a bond in an amount determined by the court.d.an action against the agent for the imposition of a contructive trust may be brought by the principal.29.Compensatory damages in a contract actiona.are designed to put the non-breaching party in the same position he/she would have been in had thecontract been fully performed.b.are the same as punitive damages.c.cannot be awarded for the breach of a real estate contract.d.is an example of an equitable remedy.30.The measure of damages in action brought for the breach of a contract for the sale of goodsa.will be liquidated damages.b.will be the difference between the contract price and the market price.c.will depend on what the parties to the contract have agreed upon.d.cannot be determined by arbitration.31.Consequential damagesa.are unforeseeable damages resulting from the consequences of a breach of contract.b.are foreseeable damages resulting from the consequences of a breach of contractc.are a type of liquidated damages.d.cannot be arbitrated.32.Mitigation of damagesa.means that the injured party has a duty to take reasonable steps to limit damages.b.means that the non-injured party has a duty to take reasonable steps to limit damages.c.is not required for the breach of a contract for the sale of goods.d.is expressly eliminated by the UCC. 33.If, before either party to a contract has a duty to perform,one of the parties refuses to performa.the non-breaching party must remain ready to perform for a reasonable time.b.the non-breaching party must perform to the extent commercially reasonable.c.both parties are excused from performing the contract.d.the refusal to perform can be treated as a present breach of contract and damages can be immediatelysued for by the non-breaching party.34.When time is stated to be “of the essence” in a contracta.performance must take place within a reasonable time.b.this means that time is a contract condition that must be strictly complied with.c.this means that performance must be completed within the limits specified by the UCC.d. has been construed to mean that delay, unless unreasonable, will not eliminate a party’s right topayment.35.Contracts that have been executed on one sidea.can be rescinded only if the party who has performed receives consideration to call off the deal.b.are deemed to be completely unexecuted.c.cannot be amended.d.can only be amended by the party who has executed the contract.36.Partial payment of a debt after it has been discharged in bankruptcya.revives the entire unpaid balance of the debt.b.cannot be accomplished without the approval of the bankruptcy court.c.requires the creditor who has been paid to return the payment to the bankruptcy court.d.will not revive the entire unpaid balance of the debt.37.If a sale involves specific goods already in existence, identification under the UCC occursa.when the goods are set apart from other goods by the seller.b.when the goods are labeled by the seller as belonging to a particular contract.c.when the goods are shipped to the buyer.d.when the contract is made.38.Under a shipment contracta.title to goods passes at the time and place of shipment.b.title to goods passes upon delivery of the goods to the buyer. c.title passes upon the buyer executing a receipt for the goods.d.title to the goods passes to the buyer no later than 3 days after the buyer has had the opportunity toinspect them.39.If a seller or lessor of goods has stolen the goodsa.his/her title to the goods is voidable.b.the owner of the goods can reclaim the goods if the owner acts promptly after discovery of the theft oracts promptly after he/she should have discovered the theft.c.can pass title to the goods to a good faith purchaser of the goods who has given consideration for thegoods.d.his/her title to the goods is void.40.When the owner of goods delivers goods to a merchant and the goods are of a kind the merchantdeals in, this is known asa.a principal/agent relationship.b.an independent contractor relationship.c.an entrustment.d.an employer/employee relationship.41.An agent’s implied authoritya.is not always present in a principal/agent relationship.b.can cause additional liability to be imposed on the agent.c.exists by virtue of being reasonably necessary to carry out the agent’s express authority.d.can only be disclaimed by the principal, not the agent.42.Ratificationa.is an agent’s approval of actions taken by his/her principal.b.must be in writing.c.is a principal’s approval of his/her agent’s unauthorized act.d.must be made within a reasonable time to be effective.43.An undisclosed principala.has no liability.b.is bound to any contract properly made by his/her agent with a third party.c.is liable under the UCC if a reasonable person under similar circumstances would find him/her liable. d.may be subject to punitive damages for fraud.44.Under the principle of respondeat superiora. a principal is vicariously liable for any harm caused to a third party by the principal’s agent actingwithin the scope of the agent’s employment.b.an agent is answerable to his/her principal for the agent’s conduct.c.an agent is held to a high standard of loyalty owed to his/her principal.d.an agent is entitled to compensation from his/her principal unless the agency is expressly stated inwriting to be gratuitous.45. In a disparate impact employment discrimination casea.a plaintiff must initially prove discrimination based on employment statistics.b.a plaintiff must initially prove prior acts of discrimination by the employer.c.the initial burden of proof is on the employer to show no discrimination.d.a plaintiff must initially show a prima facie case of discrimination.46.The perfect tender rule requiresa.a complete “meeting of the minds” of the contracting parties.b.that a seller or lessor deliver goods in conformity with every detail of the contract between the parties.c.that goods delivered by a seller or lessor be without defect.d.is a common law principle of contracts not recognized by the UCC.47.A buyer’s right to inspect goodsa.must be promptly exercised.b.is absolute (except for C.O.D. shipments).c.applies only to goods purchased for cash and not on credit.d.must be exercised by the buyer and not the buyer’s agent.48.A buyer or lessee of goodsa.cannot demand specific performance as a breach of contract remedy.b.can demand specific performance as a breach of contract remedy if the goods are unique.c.cannot demand specific performance as a breach of contract remedy unless that remedy is stated to beavailable in a written contract between the parties.d.cannot demand specific performance as a breach of contract remedy unless the contract is for thecombined purchase/lease of goods and real property. 49.In order to claim employment discrimination on the basis of age an employee must be at leasta.age 60 .b.age 40.c.age 50.d.age 55.50.Employers may avoid having to make accomodations for disabled employeesa.by having all employees sign a waiver of accommodation.b.by proving that having to provide accommodation will cause the employer “undue hardship.”c.by refusing to hire disabled employees.d.by the employer having his/her/its business declared to be an “exempt entity.”

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