1. Which of the following is a true statement?

A - Building contractors and subcontractors are usually not independent contractors.

B - An agency relationship can be formed only in a witnessed and signed writing since it is a high-level business relationship.

C - There generally does not need to be a written agreement between the principal and agent in order to create an agency relationship.

D - An agent does not owe to his or her principal a duty to act in good faith.

2. A person may be discharged from his or her contractual obligations under the common law by

A - Substantial performance

B - Complete performance

C - Impossibility of performance

D - All of the above

3. Which of the following contracts is not required as a general rule to be in writing under the Statute of Frauds?

A - A contract to be performed in less than one year.

B - A contract involving the sale of land.

C - A contract for the sale of goods over $500.

D - A guaranty contract to pay someone else's debt if they fail to.

4. Excel Corporation agrees to sell the latest version of its Go! computer game to National Retail Company. Excel delivers an outdated version of Go! (nonconforming goods). National's possible remedies may include

A- recovering damages only.

B - rejecting part or all of the goods, or revoking acceptance only.

C - recovering damages, rejecting goods, or revoking acceptance.

D - none of the above.

5. Which of the following is a false statement?

A- If a contract for the sale of goods does not include a price term, it nonetheless may still be enforceable pursuant to the Uniform Commercial Code.

B- If a contract for the sales of goods does not include the exact terms for payment, it normally will be unenforceable since it is impermissibly vague.

C- When an offer for the sale of goods does not specify a means of acceptance, the offer usually can be accepted by any manner reasonable under the circumstances.

D- A warranty is an assurance by the buyer to the seller that he or she will pay valid and good consideration for a product.

6. Which of the following is the most accurate statement?

A- The offeree's rejection of an offer terminates it as a general rule under the common law.

B- An offeror can revoke an option contract if the offeror decides that the consideration given for it was inadequate.

C- Revocation of an offer made to the general public must be communicated in a large metropolitan newspaper, such as the Miami Herald, New York Times, or Washington Post.

D- Offers are irrevocable under the common law for a three month period.

7. The purpose of a proxy is to:

A- Allow a shareholder to transfer shares to another.

B- Allow a shareholder to place shares in trust.

C- Allow a shareholder to assign her right to vote to another.

D- Allow a shareholder to assign her dividends to another.

8. Which is TRUE regarding the employment at-will doctrine in the United States?

a. It can result in a legal but immoral discharge of an employee.

b. It cannot be changed by a contract between the employer and the employee.

c. It is operable in the U.S. and can result in a discharge without notice or cause or good cause but the employer based on federal law has to pay severance to the discharged employee based on the number of years he or she has worked for the firm.

d. It supersedes and prevails over Title VII of the Civil Rights Act.

9. Which of the following statements is false?

A- Notice-and-comment rulemaking is the most common rulemaking procedure used by administrative agencies in the United States to make law.

B- Tort law provides legal remedies for both personal injury and property damage.

C- To commit an intentional tort, a person must intend the consequences of his or her act or know with substantial certainty that certain consequences will occur.

D- To commit an intentional tort, a person always must act with an evil motive to commit physical harm.

10. Data Corporation created and sells "Economix," financial computer software. Data's copyright in Economix is best protected under

A- the Berne Convention.

B- the Paris Convention.

C- the TRIPS Agreement.

D- none of the above.