4th Block Final Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. __A__ 6. The taking back of an offer by the offeror is a. revocation c. cancellation b. rejection d. consideration __C__ 8. A contract that contains a promise by both parties is a. express c. bilateral b. implied d. unilateral __C__ 11. Threats of a business nature that cause a person to enter into a contract without real consent would qualify as a. undue influence c. economic duress b. duress d. fraud __B__ 12. Mutual mistake is also known as a. unilateral mistake c. material mistake b. bilateral mistake d. intentional mistake __D__ 13. A deliberate deception to secure unfair or unlawful gain is a. misrepresentation c. unilateral mistake b. libel d. fraud __A__ 15. A fact that is important to one of the parties to a contract is a(n) a. material fact c. crucial fact b. unilateral fact d. concealed fact __B__ 16. The age of majority in most states is a. 16 c. 20 b. 18 d. 21 __C__ 19. A minor is held responsible for the fair value of a. athletic shoes c. medical care b. CDs d. video games __B__ 21. Not doing something that one has a legal right to do is a(n) a. benefit c. detriment b. forbearance d. obligation __A__ 23. A promise may be enforceable without consideration under the doctrine of a. promissory estoppel c. preexisting duty b. past consideration d. adequacy of consideration __B__ 27. Charging more than the maximum legal interest rate is a. fraud c. extortion b. usury d. price-fixing __C__ 28. A legal document verifying permission to practice a particular trade or profession is called a a. contract c. license b. covenant d. permit __C__ 31. The wrongful failure to perform a promise set forth in a contract is a. perjury c. breach of contract b. voidance of contract d. misrepresentation __B__ 45. A contract by which ownership of goods is shifted from seller to buyer for a price is a a. bid c. delivery b. sale d. transfer __B__ 47. The right of ownership to goods is known as a. risk of loss c. identified goods b. title d. bill of lading __D__ 48. The transfer of all goods owned by a business is known as a a. forced sale c. total transfer b. shipment contract d. bulk transfer __C__ 49. A receipt given by a carrier to a shipper for shipment of goods is known as a a. warehouse receipt c. bill of lading b. delivery tender d. document of title __A__ 51. Goods must be fit for ordinary purposes under the implied warranty of a. merchantibility c. fitness for a particular purpose b. title d. privity __D__ 53. A guarantee that goods are free of financial obligation, or lien, is called a a. limited warranty c. warranty of privity b. warranty of merchantibility d. warranty of title __A__ 56. Advertising a nonexistent bargain to lure customers and then selling the customers more expensive merchandise is called a. bait and switch c. claim and change b. cease and desist d. fraudulent misrepresentation __A__ 57. A consumer who wishes to cancel a contract made with a door-to-door salesperson must do so within a. three days c. 24 hours b. three weeks d. two days __B__ 58. Companies that run telemarketing scams often charge for their services through a. 800-numbers c. credit card numbers b. 900-numbers d. long distance numbers __C__ 59. A food or drug with false or misleading labeling or packaging is said to be a. injurious c. misbranded b. adulterated d. prohibited __B__ 67. The person making a gift is a a. bailor c. giftor b. donor d. donee __D__ 68. Patents, copyrights, and trademarks refer to a. tangible personal property c. bailments b. intangible personal property d. intellectual property __B__ 73. Minors may be employed in certain jobs as long as their work does not interfere with a. religious training c. family duties b. schooling d. social life __A__ 75. Social security records are a. confidential c. open to federal agencies b. open to the public d. open to state and federal agencies __C__ 80. The party who buys goods on credit or borrows money is called the a. secured party c. debtor b. creditor d. loanee __B__ 81. Charge accounts are examples of a. usury c. secured loans b. open-end credit d. closed-end credit __B__ 90. A check that is more than six months old is a a. void check c. voidable check b. stale check d. bad check __D__ 91. A check that is issued against a checking account with insufficient funds or against a bank in which the drawer has no funds is a(n) a. void check c. outstanding check b. stale check d. bad check __C__ 92. A check signed without authority by someone other than the drawer is a a. bad check c. forged check b. stale check d. certified check __C__ 93. A check that has been written but not yet returned to the bank for payment is a(n) a. certified check c. outstanding check b. stale check d. canceled check __B__ 94. A check that is guaranteed by a bank is a a. cashier's check c. traveler's check b. certified check d. bank draft __C__110. An individual who owns part of a corporation is called a(n) a. partner c. shareholder b. proprietorship d. director __C__114. All corporations issue a. preferred stock c. common stock b. par value stock d. no-par value stock __A__116. A group of shareholders who make a contract to vote in a certain way on a certain issue have made a a. pooling agreement c. shareholder proposal b. proxy d. voting trust __D__122. The result of one corporation's continued existence while absorbing another corporation is a(n) a. consolidation c. stock acquisition b. asset acquisition d. merger __D__124. The corporation or individual making a tender offer is known as the a. target c. directorate b. principal d. suitor Final Selection Matching Matching Match each term with its definition. a. crime f. breach of duty b. tort g. proximate cause c. nuisance h. contributory negligence d. defamation i. comparative negligence e. negligence j. assumption of risk __B__ 6. An offense against the public at large. Match each term with its definition. a. contract f. express contract b. offer g. implied contract c. acceptance h. counteroffer d. capacity i. revocation e. consideration j. rejection __G__ 11. A contract that comes about from the actions of the parties. __D__ 12. The legal ability to enter a contract. __C__ 16. Unqualified willingness to go along with an offer. __E__ 17. Exchange of benefits and detriments by the parties to an agreement. __F__ 20. A contract stated in words; it may be oral or written. Match each term with its definition. a. fraud f. unilateral mistake b. rescind g. bilateral mistake c. material fact h. duress d. concealment i. economic duress e. misrepresentation j. undue influence __G__ 27. When both parties to a contract are mistaken about some important fact. __B__ 29. To cancel; to annul. Match each term with its definition. a. capacity f. minority b. rebuttable presumption g. ratify c. majority h. necessaries d. minor i. guardian e. emancipated j. aliens __I__ 37. One who is appointed by the court to look after the affairs of a mentally incompetent person. __C__ 38. Status of a person who has reached the age at which full civil rights are granted. __B__ 39. An assumption that can be challenged in a court of law. __D__ 40. Young person who has not reached the age of legal adulthood. Match each term with its definition. a. conspiracy f. restraint of trade b. interest g. restrictive covenant c. usury h. price fixing d. lottery i. competitive bidding e. license j. goodwill __H__ 56. Agreement among competitors on certain price ranges within which they set their own prices. __F__ 57. A limitation on the full exercise of doing business with others. __B__ 58. The fee the borrower pays to the lender for using the money. Match each term with its definition. a. breach of contract f. parol evidence rule b. perjury g. best evidence rule c. Statute of Frauds h. duplicate originals d. memorandum i. equitable estoppel e. real property j. goods __F__ 60. Evidence of oral statements made before signing a written agreement is usually not admissible in court to change or contradict the terms of a written agreement. __E__ 67. Land and anything permanently attached to it. Match each term with its definition. a. discharged f. tender b. performance g. mutual release c. complete performance h. accord and satisfaction d. reasonable time i. statute of limitations e. substantial performance j. bankruptcy laws __H__ 79. The substitution of one contract for another. Match each term with its definition. a. assignment f. breach of contract b. delegation g. damages c. novation h. actual damages d. privity of contract i. specific performance e. third-party beneficiary j. injunction __B__ 80. The transfer of a duty or obligation from one person to another. __J__ 83. A court order issued by a judge ordering a person to do or not do a certain act. __A__ 85. The transfer of any property right from one person to another. Match each term with its definition. a. sale f. bill of sale b. price g. risk of loss c. goods h. future goods d. firm offer i. bill of lading e. title j. electronic signature __D__ 95. Under the UCC, a merchant's written promise to hold open an offer for the sale of goods. __F__ 96. A written statement evidencing the transfer of personal property from one person to another. __B__ 97. Money that is paid for goods. Match each term with its definition. a. caveat emptor f. cooling-off rule b. caveat venditor g. product liability c. consumer h. strict liability d. cease and desist orders i. adulterated e. bait and switch j. intrastate sales __H__119. Doctrine that states that the people engaged in dangerous activities will be held liable, regardless of how careful they were and regardless of their intent. Match each term with its definition. a. property damage liability insurance f. uninsured motorist insurance b. Buyer's Guide g. underinsured motorist insurance c. repossess h. collision insurance d. adhesion contract i. comprehensive insurance e. bodily injury liability insurance j. no-fault insurance __I__121. Insurance that covers damage to the insured's car from a variety of sources other than collision. __B__122. Sticker placed by a dealer in the window of each used vehicle for sale, which gives buyer's needed information about used cars. __H__123. Insurance that pays for damages to the insured's own car when it collides with another car or object, or when it turns over. __G__124. Insurance that protects you when another driver has insurance, but not enough to pay for any injuries. __F__125. Insurance that provides protection when the insured is injured in an automobile accident that is caused by a driver who has no insurance. __A__126. Insurance applied to property damage such as another car, a house, telephone pole, etc. __J__127. Insurance policy in which drivers collect money from their own insurance companies regardless of who caused the accident. __C__128. Bank or loan company taking back the car, usually due to loan default. __E__129. Protects the insured against claims or lawsuits for injuries or death caused by negligence. Match each term with its definition. a. equal-pay rule f. discrimination b. pension plan g. disparate treatment c. social security h. disparate impact d. unemployment compensation i. business necessity e. workers' compensation j. disability __H__150. Unintentional discrimination due to policy of employer that on the surface seems neutral, but that has an unequal and unfair impact on members of a protected group. Match each term with its definition. a. negotiable instrument f. drawer b. note g. drawee c. maker h. acceptor d. payee i. demand paper e. draft j. words of negotiability __B__172. A written promise by one person to pay money to another person. Match each term with its definition. a. stale check f. certified check b. bad check g. cashier's check c. forgery h. bank draft d. uttering i. electronic fund transfer (EFT) e. outstanding checks j. debit card __J__182. A card used to electronically subtract money from your bank account to pay for goods or services. __D__183. An offerer deliberately submitting a forged instrument to another. __F__184. Checks guaranteed by the bank on which they are drawn. __B__185. A check drawn on an account in which there are insufficient funds. __E__186. Checks that have been written that have not yet been returned to the bank for payment. __G__187. A check drawn by a bank upon itself. __C__188. A crime such as signing a check by someone other than the drawer without the drawer's authority. __H__189. A check drawn by a bank against funds the bank has on deposit with another bank. Match each term with its definition. a. instrument f. endorsement b. assignment g. depository bank c. negotiation h. blank endorsement d. holder i. special endorsement e. order paper j. restrictive endorsement __B__190. Transfer of a right under a contract. Match each term with its definition. a. sole proprietorship f. partnership by estoppel b. fictitious name g. tenancy in partnership c. employer identification h. joint tenancy d. unlimited liability i. joint liability e. partnership by proof of existence j. dissolution __B__211. Made-up name used by a sole proprietor to operate his or her business. __J__216. Legal detachment or breaking off of a partnership. _D___217. Responsibility of the business owner for all losses experienced by the business. Match each term to its definition. a. corporation f. certificate of incorporation b. shareholder g. dividends c. share h. common stock d. promoter i. preferred stock e. articles of incorporation j. limited liability company __B__220. Investor in, or owner of, a corporation. __E__222. Application for incorporation of a business that describes a corporation's organization, powers, and authority. __A__224. Body formed and authorized by law to act as a single person, separate and distinct from its members or owners. __I__226. Type of stock whose holders have no voting rights but have the right to receive a fixed dividend. __F__227. A corporation's official authorization to do business in the state. __H__228. Type of stock whose holders have voting rights but are the last to be paid. __D__229. Person who carries out the incorporation process by taking the initial steps to organize and finance a business. Match each term with its definition. a. shareholder f. pooling agreement b. directors g. direct suit c. officers h. derivative suit d. proxy i. business judgment rule e. voting trust j. fairness rule __E__230. Transfer of voting rights of a shareholder to a trustee. __C__232. Group of people who implement the policies of the directors by carrying out the day-to-day operations of the corporation. __J__233. The requirement that corporate managers be fair to the corporation when they are self-dealing. __A__235. Investor in owner of a corporation. __H__236. Suit brought against a corporation's management by the shareholders on behalf of the corporation. __D__239. Right to vote another shareholder's stock.