Ba 265

1.

A contract that by its own terms cannot be performed within a year must be in writing to be enforceable.

A) True

B) False

2.

Karen writes on a piece of paper, “I owe you $600,” signs it, and gives it to Lou. This instrument is

A) nonnegotiable, because it does not recite any consideration.

B) negotiable.

C) nonnegotiable, because it does not state any conditions to payment.

D) nonnegotiable, because it does not include an express promise to pay.

3.

A failure to exercise reasonable care is negligence.

A) True

B) False

4.

The test for whether an advertisement is deceptive is whether a reasonable consumer would be deceived.

A) True

B) False

5) Michelle gives out a business card with an e-mail address on it. It is reasonable to infer that Michelle has consented to

A) nothing.

B) accept and respond to any correspondence sent to that address.

C) transact business electronically.

D) submit to the jurisdiction of any selected forum.

6.

Rolling Transport & Storage Corporation wants to insure its warehouse to obtain the maximum possible recovery for the lowest possible premium. To obtain the maximum recovery under a coinsurance clause, the percentage of the value of the property that should be insured is

A) 100 percent.

B) 90 percent.

C) 120 percent.

D) 80 percent.

7.

National Ladder Company is subject to regulations issued by the Occupational Safety and Health Administration (OSHA). Like other federal administrative agencies, the OSHA was created by

A) the U.S. Department of Labor, through a final order.

B) the Federal Trade Commission, through the rulemaking process.

C) the president, through an executive order.

D) Congress, through enabling legislation.

8) The basic purpose of antitrust law is to regulate economic competition.

A) True

B) False

9.

Compensatory damages are foreseeable damages that arise from a party’s breach of a contract.

A) True

B) False

10.

The United...