Reference no: EM132275247

1. Where the principal makes representations to a third party about the role that an agent is to play, which kind of authority usually arises?

Apparent authority.

Authority by ethics.

Inherent authority.

Implied authorit

2. Athletic Goods, Inc. (AGI), agrees to sell sports equipment to Bob’s Sports Store. Before the time for performance, AGI clearly and firmly tells Bob that it will not deliver. This is

anticipatory repudiation.

perfect tender.

rejection of performance.

revocation of acceptance.

3. Ellen assigns to Fred her rights under a contract with Gil. Ellen’s rights under the contract

are extinguished and set up in Fred.

continue until the contract is fully executed.

continue until Gil performs his obligations under the contract.

continue until Fred receives Gil’s performance.

4. If a corporation commits an ultra vires act, which of the following is not an available remedy?

The shareholders may sue for an injunction prohibiting the act.

The shareholders may sue the officers and/or directors for damages.

The state Attorney General may automatically bring criminal charges against the officers and/or directors.

The state Attorney General may sue to dissolve the corporation.

5. Under Article II of the UCC a seller may not

Withhold delivery

Seize the good back on his or her own

Stop delivery in transit

Sell the goods

6. Which of the following is NOT a correct statement regarding arbitration?

A key arbitration legal issue is whether a dispute should in fact be arbitrated.

The U.S. Federal Arbitration Act holds that arbitration agreements are enforceable just like any other contracts.

An arbitration award can be enforced by traditional judicial remedies for enforcing monetary judgments, such as attachment and seizure of property and garnishment of wages.

All arbitration awards are automatically appealable in the traditional court system because the law disfavors the arbitration of disputes.

7. Which of the following is true regarding contracts?

A contract that is completely performed by all parties is called an executory contract.

A contract that has been completely performed by one party, but not the other, is called an executed contract.

A contract that has been performed by A but not by B is executory as to B and executed as to A.

To be enforceable, a contract must be executed.