QUESTION 1: A disclosed principal is not liable to a third party for contract made by the agent acting outside the scope of his or her authority.
True
False
QUESTION 2: Major credit reporting agencies must provide consumers with free copies of their credit reports every twelve months
True
False
QUESTION 3: All consumer protection laws are federal.
True
False
QUESTION 4: Generally, a principal has a duty to pay an agent for services rendered.
True
False
QUESTION 5: During a union election campaign at Standard Manufacturing Company, the employer can:
a. limit only the places for campaigning.
b. limit only the times for campaigning.
c. limit only the places and times for campaigning.
d. prohibit all campaigning on company property during working time.
QUESTION 6: Carol wishes to negotiate a bearer instrument in her possession to Jim for an order instrument that Jim holds. Indorsements are required to negotiate:
a. bearer instruments only.
b. order instruments only.
c. bearer instruments and order instruments.
d. none of the above.
QUESTION 7: Under workers' compensation laws, a worker who is injured on the job files a claim with a government agency instead of suing the employer.
True
False
QUESTION 8: Good faith is "honesty in fact and the observance of reasonable commercial standards of fair dealing."
True
False
QUESTION 9: A+ Auto Rentals owes Apex Auto Dealership $2,000. A+ executes a note to Apex as security for the debt. This security:
a. does not constitute sufficient consideration for HDC status.
b. does not satisfy the value requirement for HDC status.
c. satisfies the consederation requirement for HDC status.
d. satisfies the value requirement for HDC status.
QUESTION 10: Ace Corporation requires its employees to have a high school diploma, claiming a definite connection between a high school education and job performance. In a suit against Ace under Title VII, this requirement is shown to have a discriminatory effect. Ace has:
a. an affirmative action defense.
b. a bona fide occupational qualification defense.
c. a business necessity defense.
d. no defense.
QUESTION 11: Chris, who works as an employee for Delta Products, Inc., is protected under the National Labor Relations Act, which is enforced by the National Labor Relations Board (NLRB). The NLRB has the authority to:
a. administrate workers' pension plans.
b. enforce the Occupational Safety and Health Act.
c. engage in labor union activities.
d. prevent unfair labor practices.
QUESTION 12: Beth, an accountant for Credits & Debits, acquires a negotiable instrument from Elle by promising to pay its face value in thirty days. Beth acquires the status of an HDC when she:
a. acquires possession of the negotiable instrument.
b. agrees with Elle to buy the negotiable instrument.
c. pays the face value due on the instrument.
d. transfers the instrument to another party.
QUESTION 13: Title VII does not apply to unions.
True
False
QUESTION 14: Dave works as an employee for Eagle Products Corporation. Eagle begins to electronically monitor its employees' e-mail. If Dave resists this policy, he may bring action under
a. state tort law only.
b. the Electronics Communications Privacy Act only.
c. state tort law or the Electronics Communications Privacy Act.
d. none of the above.
QUESTION 15: Gail issues a check drawn on First National Bank to Housewares Depot as payment for several kitchen appliances. Later, Gail discovers defects in the goods and orders First National to stop payment on the check. Gail does not renew the order, and the bank clears the check eight months later. The bank must
a. recredit Gail's account only.
b. replace the defective goods only.
c. recredit the account and replace the defective goods.
d. none of the above.
QUESTION 16: A deceptive advertisement is one that is false or misleading.
True
False
QUESTION 17: A check is a promise to pay a sum of money at some time in the future.
True
False
QUESTION 18: Blythe's application to Community Bank for a credit card is denied. Blythe can obtain information on her credit history in a credit agency's files under:
a. no federal law.
b. the Equal Credit Opportunity.
c. the Fair Credit Reporting Act.
d. the Fair Debt Collection Practices Act.
QUESTION 19: Applied Manufacturing Company (AMC) employs Belle as an agent. To terminate Belle's authority, AMC must notice:
a. Belle only.
b. Belle and any third parties who know of the agency relationship.
c. only third parties who know of the agency relationship.
d. the public generally.
QUESTION 20: If a stop-payment order on a check is not renewed, the bank can pay the check, as a stale check, without liability.
True
False.