1. Charlotte and Regina are opening a new business venture to sell gourmet cupcakes. One of the key considerations in starting a new business is
a. The number of share holders
b. Choosing the name.
c. Limited liability
d. the amount of start-up capital required.

2. Richard is traveling to Europe and is curious as to which countries do not have a statute of frauds requirement like the United States. Which of the following countries has never required certain types of contracts to be in writing?
a. Germany
b. England
c. Russia
d. France

3. Refrigerators R Us sells a brand new refrigerator to Connie with a warranty that states: "This refrigerator is warranted to be free from defects for 36 months." This statement creates..
a. neither an express warranty or implied warranty.
b. an express warranty against all defects, and an implied warranty that the refrigerator will be fit for normal use.
c. an express warranty against all defects only.
d. an implied warranty that the refrigerator will be fit for normal use only.

4. Marie wants to purchase a pool table from her friend Gilbert. She does not have cash, and when she attempts to write him a check, she realizes she has run out. She finds a piece of paper and writes "I owe Gilbert $900 for the pool table I am buying today, June 29." In order to make Marie's I.O.U. a negotiable instrument, she may add any of the following phrases to the note EXCEPT:
a."to be paid to the order of Gilbert"
b. "I promise to pay."
c. "I hope to pay on june 30"
d. "to be paid on demand"

5. Farley and Cher have been married for seven years. Now they decide to open a bakery, which they both will operate. Farley decides that it might be a good idea to get a life insurance policy on Cher, who will manage the store. In order to do so, Farley must have..
a. a reasonable idea of the value of her life.
b. an insurable interest in Cher's life.
c. an independent contractor make a decision about life insurance.
d. a valid marriage certificate.