Question 1

Describe the characteristics of a contract and what constitutes as a breach of contract.

Accepted Answer

The answer of Describe the characteristics of a contract and...

Question 2

James, a loan officer, acts on behalf of his bank and authorizes loans to several customers. In this scenario, James is acting as a(n) _____.
A) trustee
B) beneficiary
C) agent
D) principal

Accepted Answer

James is acting as an agent because he is acting on behalf of his bank to authorize loans to customers.

Question 3

Jim, a marketing executive, has been assigned to handle the sales function. In his role, Jim is required to interact with clients and sell the company's products to the highest bidder. In this scenario, Jim possesses _____ authority.
A) implicit
B) implied
C) apparent
D) express

Accepted Answer

Express authority is given explicitly through a written or spoken agreement, which is the case for Jim who was assigned to handle the sales function. Implicit authority is assumed based on the person's position, implied authority is not explicitly stated but reasonably inferred, and apparent authority refers to the authority that a third party assumes an individual has based on their conduct, appearance, or title.

Question 4

Define law and briefly explain why we need laws.

Accepted Answer

The answer of Define law and briefly explain why we...

Question 5

What is a sale? Explain which party assumes risk of loss during the process of transferring goods from seller to buyer.

Accepted Answer

The answer of What is a sale? Explain which party...

Question 6

Unless otherwise specified in the sales contract, the UCC generally holds that the title passes from seller to buyer when:
A) the sales contract is signed.
B) the seller has performed all duties related to delivery of the good.
C) money is actually transferred from the buyer to the seller.
D) the standard examination period of 72 hours expires.

Accepted Answer

According to the UCC, the title passes from seller to buyer when the seller has performed all duties related to delivery of the good. This means that the seller has delivered the good to the agreed-upon location and fulfilled any other obligations related to delivery, such as packaging and labeling the goods for transit. The transfer of money is not necessarily related to the transfer of title, and the examination period may be specified in the sales contract but does not determine the transfer of title.

Question 7

List and describe three types of bankruptcy proceedings.

Accepted Answer

The answer of List and describe three types of bankruptcy...

Question 8

What is intellectual property?

Accepted Answer

The answer of What is intellectual property?...

Question 9

Describe the three common types of intellectual property.

Accepted Answer

The answer of Describe the three common types of intellectual...

Question 10

In order to safeguard his interest in a machine that he invented, Montell must file for a _____.
A) service mark
B) copyright
C) trademark
D) patent

Accepted Answer

Filing for a patent is necessary in order to legally protect an invention. Patents provide the inventor with the exclusive right to use, manufacture, and sell the invention for a certain period of time. A service mark is used to protect a company's services or brand, a trademark protects a company's brand or logo, and a copyright protects original works of authorship.

Question 11

Farms Inc. is not an agent for Naturaz Inc, but it sells Naturaz's products on its lot. To the average buyer, it may look like Farms is an agent for Naturaz. In this scenario, Farms Inc. assumes _____ authority.
A) implicit
B) apparent
C) express
D) implied

Accepted Answer

Farms Inc. assumes apparent authority as it may appear to the average buyer as an agent for Naturaz Inc. Apparent authority is the authority that a principal holds an agent to possess due to the conduct of the principal that causes a third party to reasonably believe that the agent has such authority.

Question 12

Which of the following statements is true about the assignment of risk under the UCC when the contract does not specify who bears the risk?
A) It automatically passes to the buyer.
B) It remains with the seller.
C) It passes to the party that has legal title to the goods when the damage occurs.
D) It passes to the party who is more likely to be insured against a loss.

Accepted Answer

The answer of Which of the following statements is true...

Quiz 19: Online Appendix

Describe the characteristics of a contract and what constitutes as a breach of contract.

James, a loan officer, acts on behalf of his bank and authorizes loans to several customers. In this scenario, James is acting as a(n) _____.

Jim, a marketing executive, has been assigned to handle the sales function. In his role, Jim is required to interact with clients and sell the company's products to the highest bidder. In this scenario, Jim possesses _____ authority.

Define law and briefly explain why we need laws.

What is a sale? Explain which party assumes risk of loss during the process of transferring goods from seller to buyer.

Unless otherwise specified in the sales contract, the UCC generally holds that the title passes from seller to buyer when:

List and describe three types of bankruptcy proceedings.

What is intellectual property?

Describe the three common types of intellectual property.

In order to safeguard his interest in a machine that he invented, Montell must file for a _____.

Farms Inc. is not an agent for Naturaz Inc, but it sells Naturaz's products on its lot. To the average buyer, it may look like Farms is an agent for Naturaz. In this scenario, Farms Inc. assumes _____ authority.

Which of the following statements is true about the assignment of risk under the UCC when the contract does not specify who bears the risk?