Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Questions
Q:
The consumer optimum (for two goods, a and b) is reached whenA) TUa = TUb. B) MUa = MUb.C) TUa/Pa = TUb/Pb. D) MUa/Pa = MUb/Pb.
Q:
An agent is strictly liable for any intentional or innocent misrepresentation made by the principal in a transaction.
Q:
Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that
a. approximately conform to all of the details of the contract.
b. entirely conform to the contract except in one or two details.
c. exactly conform to the contract in every detail.
d. substantially conform to the contract in most details.
Q:
The principal is not liable for an agent's negligence while the agent is on a dual-purpose mission.
Q:
Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting. Under a shipment contract, the seller must
a. allow the buyer to reject the goods for any reason.
b. deliver the goods to a particular destination.
c. inspect the goods before shipping them.
d. place the goods into the hands of a carrier.
Q:
The coming and going rule says that a principal is generally not liable for injuries caused by its agents and employees while they are on their way to or from work.
Q:
Clear Day Company, which is based in Delaware, agrees to sell fifty windows, currently stored in Florida, to Great Vu, Inc., which is based in Hawaii. Absent an agreement to the contrary, the place of delivÂery is in
a. California.
b. Delaware.
c. Florida.
d. Hawaii.
Q:
A principal is liable for an agent's tortious conduct during a substantial frolic and detour.
Q:
A measure of the responsiveness of demand to changes in income, all other things being constant, isA) income elasticity of demand. B) price income elasticity of demand. C) price elasticity of demand. D) cross price elasticity of demand.
Q:
International Gem Corporation agrees to sell Jewel Outlets, Inc. (JOI), fifty new diamonds, but the contract does not specify a place of delivery. JOI is expected to pick up the goods. The place of delivery is
a. International's place of business.
b. JOI's place of business.
c. the Annual Gems and Jewels Convention.
d. the U.S. Postal Service office nearest to JOI's place of business.
Q:
Vicarious liability is liability with fault.
Q:
A merchant can disclaim an implied warranty of merchantability.
Q:
Based on the doctrine of respondeat superior, principals are liable for the negligent conduct of agents acting within the scope of their employment.
Q:
Express warranties displace all inconsistent implied warranties.
Q:
A principal is not liable for the intentional torts of agents and employees that are committed outside the principal's scope of business.
Q:
A contract cannot contain both implied and express warranties.
Q:
When demand is perfectly inelastic, the demand curve isA) horizontal. B) vertical.C) upward sloping. D) downward sloping.
Q:
A seller must provide a written warranty for consumer goods.
Q:
Battery committed by an agent on the principal's premises and during the scope of employment is considered an unintentional tort.
Q:
A principal and an agent are each personally liable for their own tortious conduct.
Q:
An implied warranty of merchantability arises in every sale or lease by a merchant who deals in goods of the kind sold or leased.
Q:
The principal is liable for the tortious conduct of an agent who is acting within the scope of his or her authority.
Q:
Merchants are required to warrant that the goods they sell are fit for their ordinary purpose.
Q:
If an independent contractor enters into a contract with a third party on behalf of the principal without express or implied authority from the principal to do so, who among the following is liable on the contract?
A) the principal
B) the independent contractor
C) the third party
D) both the principal and independent contractor
Q:
A client hires a lawyer as an independent contractor to represent her in a civil lawsuit against a defendant to recover monetary damages. If the client authorizes the lawyer to settle a case within a certain dollar amount and the lawyer does so, which of the following is true?
A) The agreement is invalid after the lawyer's contract with the principal terminates.
B) The agreement is void because independent contractors cannot enter into contracts.
C) The agreement is binding only when there is no financial settlement involved.
D) The settlement agreement is binding for the client.
Q:
Which of the following is NOT a possible solution to the problem of pollution?A) Converting a resource that is communally owned into a privately owned resource. B) Imposing a tax on polluters that is related to the amount of pollution.C) Regulating the amount of pollution that a firm can produce.D) Subsidizing the costs of production of activities that generate pollution.
Q:
A product is unmerchantable if an accident could arise in connection with the goods.
Q:
An expression of opinion by a seller will not usually create a warranty.
Q:
Business Unlimited Corporation employs Harriet as its marketing manager. Harriet is driving her automobile to attend a meeting with a client on behalf of her employer. On her way to the meeting, Harriet is involved in an automobile accident that is caused by her negligence. Several people are seriously injured because of Harriet's negligence. Which of the following is an accurate statement regarding liability to the injured parties?
A) Harriet is not liable, as she was acting within the course and scope of her employment at the time of the accident.
B) Business Unlimited Corporation is not liable, since the accident did not occur on company property.
C) Harriet is personally liable to the injured parties but Business Unlimited Corporation is not, as they did not control Harriet's actions at the time of the accident.
D) Harriet is personally liable to the injured parties, and Business Unlimited Corporation is also liable because Harriet was acting within the scope of her employment when the accident occurred.
Q:
A seller must use words such as "warrant" to make an express warranty.
Q:
Which of the following is true of an independent contractor's liability?
A) The agent is liable for torts committed by an independent contractor.
B) The independent contractor is personally liable for the torts he or she commits.
C) The principal is liable for the independent contractor's torts.
D) Both the principal and the independent contractor are liable for the contractor's torts.
Q:
Advertisements can include express warranties.
Q:
On the advice of her colleague, Stacey hires Harold, a lawyer and an independent contractor, to represent her in a court case. While driving to the courthouse to represent Stacey at trial, Harold negligently causes an automobile accident in which a bystander, Mildred, is severely injured. Who is liable to Mildred?
A) Stacey
B) Harold
C) Stacey's colleague
D) the firm that represents Harold
Q:
Jamie is a lawyer who runs her own law firm and specializes in real estate law. Raymond, a real estate developer, hires Jamie to represent him in the purchase of land. Jamie is the ________.
A) principal
B) agent
C) third-party
D) independent contractor
Q:
If the parties to a sales contract state that a certain remedy is exclusive, then it is the sole remedy.
Q:
A major benefit of a health savings account is that itA) combats moral hazard.B) means more health care services will be demanded. C) eliminates rising health care costs.D) creates the incentive to see a doctor regularly.
Q:
A buyer who accepts nonconforming goods cannot revoke the acceptance.
Q:
Which of the following is true of an undisclosed agency?
A) The third party has no knowledge of the agency.
B) The third party knows the agent, not the principal.
C) All transactions with the third party are made by the principal without involving the agent.
D) Transactions under the agency are considered unlawful.
Q:
A buyer who rightfully rejects nonconforming goods can resell the goods and keep the proceeds.
Q:
Which of the following best describes a partially disclosed agency?
A) an agent with multiple principals who do not know each other's identities
B) a transaction in which the third party does not know the identity of the agent
C) a transaction in which the third party knows the agent, not the principal
D) an agent who discloses only the name of his or her principal in a transaction
Q:
A buyer may reject a seller's goods under any circumstances.
Q:
Which of the following is true of a fully disclosed agency?
A) The third party does not know the identity of the principal.
B) The third party knows the name of the principal but all transactions are done with the agent.
C) The contract is between the principal, agent, and the third party.
D) The principal is liable on the contract with a third party.
Q:
A buyer who obtains substitute goods to replace goods that a seller did not delivÂer can also recover damages from the seller.
Q:
In a fully disclosed agency, the contract is between ________.
A) a principal and an agent
B) a principal and a third party
C) an agent and a third party
D) a principal, an agent, and a third party
Q:
The Lorenz curveA) shows what portion of the population are living in poverty and what portion are living in wealth.B) shows what portion of total money income is accounted for by different proportions of the nationʹs households.C) shows what portion of the population is working as professionals, white - and blue-collar, workers and workers at menial tasks.D) breaks down the income levels of each group in the economy.
Q:
If a buyer wrongfully refuses to accept goods that conform to a contract, the seller may recover damages.
Q:
Which of the following torts committed by an agent is the liability of the principal?
A) substantial frolic and detour
B) accidents caused by an agent on the way to work
C) accidents caused by an agent on the way from work
D) negligence
Q:
If a buyer wrongfully refuses to accept goods that conform to a contract, the seller can maintain an action to recover the damages sustained.
Q:
Which of the following is true of misrepresentation?
A) An intentional misrepresentation by an agent is not considered fraud or deceit.
B) The principal is not liable for an agent's intentional misrepresentation.
C) A third party cannot recover damages from the principal due to an agent's intentional misrepresentation.
D) The principal is liable for an agent's innocent misrepresentation.
Q:
If a buyer breaches a contract while the seller is still in possession of the goods, the seller can resell the goods and hold the buyer liable for any loss.
Q:
A ________ is a deceit in which an agent makes an untrue statement that he or she knows is not true.
A) partially disclosed agency
B) misrepresentation
C) respondeat superior
D) dual-purpose mission
Q:
Under the ________ test, if the agent committed an intentional tort to promote the principal's business, the principal is liable for any injury caused by the tort.
A) work-related
B) motivation
C) promotional
D) dual agency
Q:
A buyer's breach of a contract will usually give the seller the right to cancel the contract.
Q:
If you get a job and are never required to join the union, this is known as a(n)A) closed shop. B) open shop. C) agency shop. D) union shop.
Q:
In which of the following cases is a motivation test used to establish the employee's motive?
A) An employee commits a tort to promote the principal's business outside work premises.
B) An employee commits an intentional tort against another employee on work premises.
C) An employee commits an unintentional tort that helps promote the principal's business.
D) An employee assaults another employee due to personal reasons.
Q:
If, before the time for performance, a buyer communicates an intent not to perform, the seller can consider the buyer in breach and pursue a remedy.
Q:
Which of the following is considered an intentional tort?
A) negligence
B) innocent misrepresentation
C) fraud
D) dual-purpose mission
Q:
If goods fail to conform to a contract in any way, the buyer or lessee must reject them.
Q:
In general, a buyer's duty to pay for tendered goods becomes absolute beÂfore the buyer has had an opportunity to inspect the goods.
Q:
A dual-purpose mission is a situation that occurs when ________.
A) an agent works for two or more principals with conflicting interests
B) a principal requests an agent to run an errand when the agent is on his or her own personal business
C) an agent works for more than two principals but has similar agency relationships with all
D) an agent competes with the principal in a business with interests similar to the principal's business after their agency has ended
Q:
Unless the parties agree otherwise, the buyer must make payment at the time and place that the goods are received.
Q:
Fiona works for Open Heart Hospital and lives 10 miles away from her place of work. The hospital has provided her with a car to commute and also pays for its upkeep. If she accidentally injures a person while driving to work in the morning, which of the following will be true?
A) Open Heart Hospital will be completely liable for the injury.
B) The injured person can sue Open Heart Hospital but can only recover reimbursement for his or her medical expenses due to the injury.
C) Both Fiona and Open Heart Hospital will be liable to the injured person.
D) Only Fiona will be liable for her negligence.
Q:
In a perfectly competitive labor market, the labor supply curve facing the firm will beA) upward sloping. B) downward sloping.C) horizontal. D) vertical.
Q:
If goods identified to a contract are destroyed through no fault of either party, both parties are excused from performance.
Q:
According to the coming and going rule, what is the liability of the principal for injuries caused by its agents and employees while they are on their way to or from work?
A) complete liability
B) vicarious liability
C) limited liability
D) no liability
Q:
The doctrine of commercial impracticability only extends to problems that could have been foreseen.
Q:
________ is a situation in which an agent does something during the course of his or her employment to further his or her own interests rather than the principal's.
A) Respondeat superior
B) Frolic and detour
C) Vicarious liability
D) Dual-purpose mission
Q:
An installment contract is breached if a buyer accepts any nonconforming goods.
Q:
________ occurs where a principal is liable for an agent's tortious conduct because of the employment contract between the principal and agent, not because the principal was personally at fault.
A) Vicarious liability
B) Negligence
C) Liability with fault
D) Misrepresentation
Q:
If a contract specifies a certain carrier, a substitution of a different carrier for any reason breaches the contract.
Q:
Minksine Corporation employs Sandy as its marketing manager. Sandy is driving her automobile to attend a meeting with a client on behalf of her employer. On her way, Sandy is involved in an automobile accident that is caused by her negligence. Several people are seriously injured. Which of the following is true of this case?
A) Sandy is solely liable for damages caused by the accident.
B) The injured parties cannot recover damages from Sandy.
C) Minksine Corporation is liable for the injuries caused by Sandy.
D) The injured parties can only claim medical reimbursement from Minksine Corporation.
Q:
The act of Congress which prohibited ʺunfair or deceptive acts or practices in commerceʺ is calledA) the Federal Trade Commission Act of 1914. B) the Clayton Act.C) the Chain Store Act.D) the Robinson-Patman Act.
Q:
What is vicarious liability?
A) non-liability
B) liability for multiple torts
C) liability without knowledge
D) liability without fault
Q:
Until the time for performance under a contract expires, the seller has a right to cure.
Q:
Which of the following is true of tort liability for principals and agents?
A) A principal is responsible for the tortious conduct of an agent regardless of whether the conduct occurs within the scope of the agency.
B) A principal is responsible for the tortious conduct of an agent regardless of whether the conduct occurs within the course of the agency.
C) An agent is liable for the principal's tortious conduct if he or she participates in it.
D) An agent and a principal cannot be held responsible for the same tort.
Q:
Under a destination contract, a seller must deliver the goods via a carrier.
Q:
Why can't an agent take an opportunity meant for the principal? When is an agent permitted to take such an opportunity? Give an illustration of an agent's violation of his or her duty of loyalty.
Q:
Tender must occur at a reasonable hour and in a reasonable manner.
Q:
The ________ is a principal's duty to cover the agent for any losses the agent suffers because of the principal's conduct.
Q:
Which of the following federal agencies is NOT engaged in economic regulation?A) The Federal Reserve B) Federal Aviation AdministrationC) Food and Drug Administration D) Federal Deposit Insurance Corporation