Business Law

The legal document formally creating an agency is called a:

	A. general contract.
	B. power of attorney.
	C. special delegation.
	D. collateral power.

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Which legal term is used for a person who is appointed as an agent?

	A. Special Attorney
	B. Attorney in Law
	C. Attorney in Fact
	D. Apparent Attorney

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A principal cannot accept the benefits of a transaction and refuse to accept the:

	A. obligations.
	B. parallel benefits.
	C. apparent benefits.
	D. representation.

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An agent is liable for losses to the principal resulting from the agent's:

	A. capital accumulation.
	B. personal business.
	C. incompetence.
	D. explicit agreement.

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When an agent signs a contract in the principal's name, he or she is acting on behalf of a(n) __________ principal.

	A. disclosed
	B. undisclosed
	C. apparent
	D. statutory

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A receipt for goods that are to be shipped is known as a:

	A. warehouse receipt.
	B. bill of lading.
	C. bill of sale.
	D. bill of purchase.

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A warehouse receipt is used for goods that are being:

	A. imported.
	B. stored.
	C. exported.
	D. sold immediately.

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Title to goods passes when the:

	A. court approves the transaction.
	B. majority party votes for it to pass.
	C. parties intend for it to pass.
	D. bill of sale is approved.

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Camilla agrees to purchase a car for $ 15,000. Camilla and the seller agree that Camilla will return the following day with license plates to pick up the vehicle. In this case, the title shall pass:

	A. when Camilla arrives with the license plates.
	B. when Camilla takes the vehicle home.
	C. at the time of purchase.
	D. at the time of agreement.

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A legally enforceable agreement that has as its purpose the immediate transfer of title to personal property in return for consideration and includes both a present sale of goods as well as an agreement for the sale of future goods is a:

	A. contract for sale.
	B. negotiated transaction.
	C. contemplated transaction.
	D. void transaction.

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Goods that physically exist and are owned by the seller at the time of sale are considered __________ goods.

	A. accessible
	B. existing
	C. scarce
	D. profitable

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A contract in which title and risk of loss remain with the seller and that provides for the sale subject to the buyer's final decision is a(n):

	A. endorsement of contract.
	B. sale on approval.
	C. contract to sell.
	D. contract for sale.

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A reputed merchant will agree to a sale or return in order to maintain:

	A. balance.
	B. family.
	C. goodwill.
	D. tax returns.

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The Uniform Commercial Code provides specific rules that must be followed by a seller who wants to avoid the responsibility of __________ warranties.

	A. full
	B. limited
	C. implied
	D. expressed

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A disclaimer of the __________ of merchantability must mention the word merchantability.

	A. warranty
	B. guarantee
	C. merchandise
	D. lemon law

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A promise that a defective product will be repaired without charge within a reasonable time after a complaint has been made is a:

	A. full warranty.
	B. limited warranty.
	C. wagering agreement.
	D. conversion.

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The statutes that provide remedies to consumers for products such as automobiles that repeatedly fail to meet certain standards of quality and performance are known as __________ laws.

	A. blue
	B. lemon
	C. elder
	D. red

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In a sole proprietorship, the entrepreneur has to obtain a general __________ from his or her local municipality.

	A. fiscal access
	B. stock reserve
	C. business license
	D. corporate authority

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At times, individuals can become partners for only a short period of time, or for only a single project. This activity is defined as a:

	A. joint venture.
	B. severability.
	C. sole liability.
	D. union charge.

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A business that is formed as a separate legal entity is a(n):

	A. fiduciary.
	B. corporation.
	C. proxy.
	D. entrustment.

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