1. Mark is mentally incompetent and delights in signing paperwork. Henry persuades Mark to signal quite a few promissory notes which he negotiates. Should Mark pay these notes if they’ve been held by holders sooner or later?
A. Mark could not pay these notes since nobody may anticipate this taking place.
B. Mark should pay these notes since duress is not concerned.
C. Mark should pay these notes since there’s a fraud within the inducement.
D. Mark would not need to pay these notes since he has an actual defen
2. Carl writes a verify for $500, payable to Fred. Fred indorses it over to Sally in trade for a tv set. Sally deposits the verify, solely to find that Carl stopped fee on the verify. Which of the next statements is true?
A. The financial institution should pay $500 to Sally.
B. Carl should pay $500 to Sally.
C. Fred should pay $500 to Sally.
D. Nobody is obligated to pay something to Sally.
three. Digital _______ is a system by which funds are electronically transferred from a buyer’s checking account, eliminating the necessity to course of a paper verify.
A. verify conversion
B. fund switch
C. verify switch
D. teller system
four. Private defenses can be utilized towards
A. a holder sooner or later of a negotiable instrument, however not a holder.
B. any social gathering with whom the holder sooner or later has dealt.
C. a holder, however not a holder sooner or later of a negotiable instrument.
D. pure individuals, however not companies.
5. Native enterprise exercise carried on inside state boundaries is named
A. interstate commerce.
B. intrastate commerce.
C. native commerce.
D. public commerce.
6. Lulu orders 20 pairs of navy blue pants from Peter for $four,000, with supply due no later than November 15. On November 15, Peter delivers 20 navy clothes. Lulu could
A. sue for particular efficiency.
B. maintain the products and search adjustment.
C. sue for breach.
D. cowl the sale.
7. Jake purchased a bike from his neighbor Randy. Randy had owned the motorbike for his private use for about two years. The day after the acquisition, Jake is critically injured after the motorbike instantly veers off of the freeway as a result of a producing defect. Jake brings a strict legal responsibility motion towards Randy. Jake will most certainly lose as a result of the
A. defendant should usually be engaged within the enterprise of promoting or in any other case distributing bikes.
B. motorbike cannot have been considerably modified from the time the product was bought to the time of the damage.
C. plaintiff should incur bodily hurt by use of the motorbike.
D. product should be in a faulty situation when the defendant sells it.
eight. Zeke pulls out a knife and tells Bob to put in writing him a verify for $500. Bob does so. Zeke takes the verify to his financial institution, correctly endorses it, and receives $500 in money. Bob stops fee on the verify. Which of the next statements is true?
A. Bob should pay the verify as a result of the financial institution is a holder sooner or later.
B. Bob should pay the verify as a result of Zeke was a holder sooner or later.
C. Bob needn’t pay the verify as a result of it was obtained illegally.
D. Bob needn’t pay the verify as a result of the financial institution is a holder, not a holder sooner or later.
9. Which of the next statements is true of the FTC’s Telemarketing Gross sales Guidelines?
A. A telemarketer is allowed to name a client with out requiring the buyer’s consent.
B. Calling instances are restricted to anytime throughout enterprise days and vacation weekends.
C. Telemarketers are excused from disclosing the identify of the vendor, and what they’re promoting earlier than they make their pitch.
D. Telemarketers should state the entire price of the services or products provided and that the sale is remaining or nonrefundable.
10. Dennis contracts with Racketware, Inc., an organization in France, to buy 5,000 tennis rackets. The rackets shall be shipped by airplane to a warehouse in New Jersey. Dennis and Racketware enter right into a contract on November 1, and the contract recognized the rackets being bought. The airplane containing the rackets leaves France on November 2. The paperwork mandatory to assert the rackets are acquired by Dennis within the mail on November three. Dennis claimed the products on the warehouse on November four. Dennis acquired an insurable curiosity within the rackets on what date?
A. November three
B. November 1
C. November 2
D. November four
11. If an individual obtains property because of one other’s fraud, misrepresentation, mutual mistake, undue affect, or duress, the particular person is claimed to carry solely
A. voidable rights.
B. contract rights.
C. legitimate rights.
D. insured rights.
12. Tom agrees to promote 500 pairs of pants to Sally for $5,000. Tom delivers the pants. Sally palms Tom a verify. Tom calls for money and refuses to simply accept the verify. Which of the next statements is true?
A. Sally shall be in breach if she would not instantly give Tom $5,000 in money.
B. Sally is in breach as a result of Tom is permitted to demand money.
C. Sally should pay money however is entitled to an affordable time to give you the money.
D. Tom is in breach because the UCC offers him no proper to demand money.
13. To simply accept a draft, the drawee
A. want solely signal the draft throughout the face of the instrument.
B. wants to put in writing “accepted” behind the instrument and signal the financial institution’s report.
C. wants to put in writing “accepted” on a separate piece of paper.
D. want solely signal on a separate piece of paper affixed to the draft.
14. If a drawee refuses to pay the instrument, it’s mentioned to be
A. delayed.
B. defaulted.
C. detained.
D. dishonored.
15. Which of the next is true of vacation spot contracts?
A. Each title and threat of loss cross to the customer when items are given to the service.
B. It requires a vendor to show the products over to a service for supply to the customer.
C. The vendor bears no duty for seeing that the products attain their vacation spot.
D. Title and threat of loss cross to the customer, as soon as the vendor tenders items at a spot as per the contract.
16. A verify for which the issuing monetary establishment is each the drawer and the drawee known as a _______.
A. teller’s verify
B. licensed verify
C. financial institution draft
D. traveler’s verify
17. Below the doctrine of _______, the principal consideration is the security of a product, not the conduct of the producer or provider of the products.
A. strict legal responsibility
B. public curiosity
C. public coverage
D. negligence
18. Tom falsely tells Harold that the automotive Tom is promoting has solely 30,000 miles on it. In reality, Tom has turned again the odometer and the true mileage is 150,000. Harold purchases the automotive by giving Tom a verify for $three,000. Tom endorses the verify to Sally in trade for a plasma TV. Harold discovers the fraud and stops fee on the verify, so it is dishonored when Sally deposits it in her checking account. Sally sues Harold to implement fee of the verify. Which of the next statements is true?
A. Harold cannot efficiently assert the protection of fraud within the inducement to keep away from paying $three,000 to Sally.
B. Harold should pay Sally, however solely to the extent of the worth of the plasma TV that Tom purchased from Sally.
C. Harold can efficiently assert the protection of fraud within the inducement to keep away from paying $three,000 to Sally.
D. Harold has an actual protection that may be asserted towards Sally.
19. Congress handed the _______ which requires lenders to reveal the finance cost and the annual proportion charge.
A. Honest Credit score Reporting Act
B. Equal Credit score Alternative Act
C. Reality-in-Lending Act
D. Honest Debt Assortment Practices Act
20. Although Spice offers her four-year-old automotive to Homeless Helpers Charity, she
A. needn’t present an odometer assertion, because the automotive is lower than 15 years outdated.
B. should set the odometer to zero earlier than resale.
C. should present an odometer assertion.
D. needn’t present an odometer assertion.
