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web.groovymark@gmail.com
- December 12, 2024
Question 41
What is a bilateral contract?
A) A contract that only involves the performance of one party
B) A contract that requires both parties to perform reciprocal promises
C) A contract that is only valid when written
D) A contract that terminates after one party completes their part
Answer: B
Explanation: A bilateral contract arises when both parties make reciprocal promises to perform.
Question 42
What is a voidable contract?
A) A contract that cannot be enforced by law
B) A contract that can be legally avoided at the option of one party
C) A contract that must be completed without dispute
D) A contract that is created by an oral agreement only
Answer: B
Explanation: A voidable contract may be legally avoided or canceled at the option of one of the parties involved.
Question 43
What is the primary function of the Tenth Amendment?
A) To give states all powers not delegated to the federal government
B) To regulate international trade
C) To establish federal income tax
D) To limit the rights of individual citizens
Answer: A
Explanation: The Tenth Amendment reserves powers to the states that are not specifically granted to the federal government.
Question 44
What is the doctrine of accord and satisfaction?
A) A legal principle that allows parties to sue for breach of contract
B) An agreement where one party agrees to accept less than originally agreed to satisfy a debt
C) A clause that terminates a contract
D) A rule that requires contracts to be signed in the presence of a notary
Answer: B
Explanation: Accord and satisfaction occur when a creditor accepts a performance different from the one originally promised as a satisfaction of the debt.
Question 45
What is the principle of rights in ethics?
A) A system that protects only individual rights
B) The principle that human beings have certain fundamental rights that business decisions should not violate
C) A corporate policy that guarantees employment rights
D) A legal obligation to increase shareholder profits
Answer: B
Explanation: The principle of rights in ethics is based on the belief that human beings have certain fundamental rights that must be respected in business decisions.
Question 46
What is a liquidated damages clause?
A) A provision in a contract that imposes a penalty for breach
B) A clause that stipulates an estimated amount of damages if a contract is breached
C) A section of a contract that nullifies the agreement
D) A requirement for all contracts involving more than $500
Answer: B
Explanation: A liquidated damages clause specifies an amount that the parties believe to be a reasonable estimation of the damages that will result from a breach of contract.
Question 47
What is the purpose of the Lanham Act?
A) To regulate contracts in interstate commerce
B) To protect manufacturers from losing business to competitors using confusingly similar trademarks
C) To create state laws governing consumer protection
D) To regulate the environmental impact of businesses
Answer: B
Explanation: The Lanham Act was enacted to protect manufacturers from losing business to rival companies that use confusingly similar trademarks.
Question 48
What does the term ‘guaranty’ refer to in business law?
A) A promise to pay a debt only if the debtor defaults
B) A guarantee of performance in a bilateral contract
C) A legal promise to purchase goods under a contract
D) A clause that provides a warranty for services provided
Answer: A
Explanation: A guaranty is a promise to pay a debt only if the primary debtor defaults.
Question 49
What does the term ‘tender of delivery’ mean?
A) The transfer of goods to the buyer at the point of sale
B) The seller’s act of placing conforming goods at the buyer’s disposal
C) The buyer’s payment before the delivery of goods
D) A condition precedent for the formation of a sales contract
Answer: B
Explanation: Tender of delivery refers to the seller placing conforming goods at the buyer’s disposal.
Question 50
What does the Uniform Commercial Code (UCC) govern?
A) The sale of all real estate
B) The sale of goods and tangible movable items
C) International treaties between trading partners
D) The sale of intellectual property
Answer: B
Explanation: The UCC governs the sale of goods and tangible movable items.
