Business Law Today

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Marks: 1
In a transaction between Retail Products Corporation and Standard Stores, Inc., the most important factor in determining whether an express warranty is created is whether Choose one answer.
| a. Retail Products intends to create a warranty. | |
| b. Retail Products makes a promise. | |
| c. Retail Products' promise becomes part of the basis of the bargain. | | | d. Retail Products' promise is in writing. | |
Question 2
Marks: 1
Margaret contracts to deliver fifty tables to Furniture Warehouse on May 1. She calls Furniture on April 15 to notify it that she is going to cancel the contract because her workers have gone on strike. Furniture may Choose one answer.

| a. for a commercially reasonable time await Margaret's performance. | | | b. sue Margaret for breach of contract. | |
| c. suspend its own performance. | |
| d. all of the above. | |
Question 3
Marks: 1
Able Tool Company makes hedge trimmers. Brad is injured while using an Able trimmer and sues the company for product liability based on negligence. To win, Brad must show that Choose one answer.
| a. Able did not use due care with respect to the trimmer. | | | b. Able misrepresented a material fact regarding the trimmer. | | | c. Brad was experienced in the use of trimmers. | |

| d. Brad was in privity of contract with Able. | |
Question 4
Marks: 1
Ann obtains from Beta Insurance Company a policy that provides that after it has been in force for a certain time, Beta cannot question statements made in the application. This is Choose one answer.

| a. an antilapse clause. | |
| b. an arbitration clause. | |
| c. an appraisal clause. | |
| d. an incontestability clause. | |
Question 5
Marks: 1
Dick, the sole proprietor of Deep Sea Tours, obtains an insurance policy that protects him against liability resulting from injuries to the person or property of another. This is Choose one answer.

| a. casualty insurance. | |
| b. fidelity insurance. | |
| c. key-person insurance. | |
| d. liability insurance. | |
Question 6
Marks: 1
Mac files a petition for a discharge in bankruptcy. Mac's failure to appear at a meeting of the creditors listed in Mac's schedules may result in Mac being Choose one answer.
| a. fined. | |
| b. held in contempt. | |
| c. denied a discharge of bankruptcy. | |
| d. imprisoned. | |
Question 7
Marks: 1
Value Hardware, Inc., makes and sells hedge trimmers, for which it issues "limited" warranties. While using a Value trimmer, Wendy is injured. Under the Magnuson-Moss Warranty Act, an action against the maker of the trimmer may be brought by Choose one answer.

| a. the Federal Trade Commission only. | |
| b. the Federal Trade Commission or Wendy, but not Value. | | | c. Value or Wendy, but not the Federal Trade Commission. | | | d. Wendy only. | |
Question 8
Marks: 1
Martin poses has a lawyer and represents Allen in a contract dispute. The dispute is settled in Allen's favor in abitration. However, when Allen discovers Martin is not licensed as an attorney he refuses to pay Martin's fee. Martin sues his former client in small claims court. In this case the court will most likely Choose one answer.

| a. award Martin a portion of his fee, less punitive damages. | | | b. enforce the contract since Allen won his case. | |
| c. refuse to enforce the contract since Martin is not licensed to practice law. | | | d. find Martin in contempt of court practicing law without a license. | | Question 9
Marks: 1
Bill offers to sell his Consumer Service Center business to Dina for $100,000. Dina replies, "The price is too high. I will offer to buy it for $90,000." Dina has Choose one answer.
| a. accepted the offer. | |
| b. made a counteroffer without rejecting the offer. | | | c. rejected the offer and made a counteroffer. | |
| d. rejected the offer...
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