Business Its Legal, Ethical, and Global Environment: Chapter 12. All Answers - $8.99   Add to cart

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Business Its Legal, Ethical, and Global Environment: Chapter 12. All Answers

Business Its Legal, Ethical, and Global Environment: Chapter 12 1. Contracts for the sale of real property are governed by the Uniform Commercial Code. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Sources of Contract Law : Bloom's: Application 2. The Restatement of Contracts is another name for the UCC. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Sources of Contract Law : Bloom's: Knowledge 3. Under the UCC, offers need price, subject matter, and quantity to be definite enough. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Knowledge 4. An offer is effectively communicated upon mailing or dispatch. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Knowledge 5. Revocation can be valid any time prior to acceptance. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Knowledge 6. A merchant's firm offer requires consideration to be valid. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Knowledge 7. Options require consideration to be valid. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Knowledge 8. Under common law, a counteroffer is also a rejection. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Knowledge 9. The UCC Battle of the Forms provision allows additional terms in an acceptance without invalidating the acceptance. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Knowledge 10. The UCC rules on additional terms in acceptance are the same for merchants and nonmerchants. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Knowledge 11. Contracts for services are governed by the UCC. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Sources of Contract Law : Bloom's: Knowledge 12. An acceptance of a stipulated means offer by a different means is effective upon receipt. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Acceptance: The Offeree's Response : Bloom's: Knowledge 13. Common law does not dictate amounts required for consideration. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consideration : Bloom's: Knowledge 14. Contracts for the sale of land must be in writing to be enforceable. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Contract Form: When a Record is Required : Bloom's: Knowledge 15. A contract for the sale of a car for $700, under the old UCC, must be in writing to be enforceable. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Contract Form: When a Record is Required : Bloom's: Knowledge 16. A contract to solicit subscribers through pop-up Internet ads is considered a good under the UCC because it is a list of names. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Sources of Contract Law : Bloom's: Application 17. Implied contracts are unenforceable. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Types of Contracts : Bloom's: Knowledge 18. Quasi contracts are implied-in-law contracts. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Types of Contracts : Bloom's: Knowledge 19. A UCC offer is valid with the subject matter stated even though no price is given. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Knowledge 20. "I'll take it, but you must deliver," is a valid acceptance. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Acceptance: The Offeree's Response : Bloom's: Application 21. An acceptance by a merchant in response to an offer by a merchant cannot contain any additional terms or it will be treated as a counteroffer under the UCC. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Comprehension 22. Parol evidence is always admissible for challenging contract terms. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Writing and E-Commerce: The Uniform Electronic Transaction Act : Bloom's: Comprehension 23. "I'm thinking of selling my CD player," is an example of offer language. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Application 24. "I'll take the bike for $75, but first I have to sell my fish tank," is an example of a valid acceptance. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Acceptance: The Offeree's Response : Bloom's: Application 25. "This offer is limited to these terms," means that between merchants only immaterial terms added in the acceptance will be part of the contract. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Application 26. The parol evidence rule does not apply in UCC contracts. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Writing and E-Commerce: The Uniform Electronic Transaction Act : Bloom's: Comprehension 27. The CISG follows the mirror image rule in formation. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Issues in Formation of International Contracts : Bloom's: Comprehension 28. "Drive my car to Albuquerque, and I'll pay you $500," is not a valid offer. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Application 29. Under the CISG, acceptance is effective only upon receipt. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Issues in Formation of International Contracts : Bloom's: Comprehension 30. Under ESIGN, clicking on a tab that reads “I accept” is a valid acceptance to an offer. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Writing and E-Commerce: The Uniform Electronic Transaction Act : Bloom's: Application 31. An executory contract is one that is fully performed. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Types of Contracts : Bloom's: Knowledge 32. The UCC has no timing rules for acceptance. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Acceptance: The Offeree's Response : Bloom's: Comprehension 33. A contract must be in a formal writing to satisfy the statute of frauds. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Contract Form: When a Record is Required : Bloom's: Knowledge 34. E-Sign requires that there be faxes or written verification of electronic contracts. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Writing and E-Commerce: The Uniform Electronic Transaction Act : Bloom's: Knowledge 35. UETA has not yet been adopted in all of the states. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Writing and E-Commerce: The Uniform Electronic Transaction Act : Bloom's: Comprehension 36. UETA does not apply when there is an applicable statute of frauds. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Writing and E-Commerce: The Uniform Electronic Transaction Act : Bloom's: Comprehension 37. A contract for the sale of potatoes is not governed by the UCC. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Sources of Contract Law : Bloom's: Application 38. Under the UCC, an acceptance followed by additional terms is a counteroffer and a rejection. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Comprehension 39. A contract for rebinding 500 books at a cost of $1.50/book is governed by the UCC. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Sources of Contract Law : Bloom's: Application 40. The above book contract must be in writing to be valid. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Contract Form: When a Record is Required : Bloom's: Application 41. A record, such as an e-mail or fax, now satisfies the writing requirement under both the UCC and common law. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Writing and E-Commerce: The Uniform Electronic Transaction Act : Bloom's: Application 42. Point-and-click is a valid means of forming a contract if the parties had adequate knowledge of the terms and conditions of the agreement in advance. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : E-Commerce and Contract Formation : Bloom's: Application 43. E-Sign is a federal law that requires written signatures for electronic contracts to be valid. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Writing and E-Commerce: The Uniform Electronic Transaction Act : Bloom's: Knowledge 44. Under the UCC, a contract for the sale of a car for $700 need not have a record of the contract to be enforceable. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Contract Form: When a Record is Required : Bloom's: Application 45. A contract for termite extermination at a home would be governed by the UCC. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Sources of Contract Law : Bloom's: Application 46. “Point and click” is not sufficient for acceptance under UETA. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Writing and E-Commerce: The Uniform Electronic Transaction Act : Bloom's: Application 47. A three-year warranty on an oven need be evidenced by a record to be enforceable. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Contract Form: When a Record is Required : Bloom's: Application 48. A contract for the sale of a $12.2 million Lear jet would be governed by common law because a document of title is involved. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Sources of Contract Law : Bloom's: Application 49. “Would you be interested in selling your Prius for $21,000?”, is not an offer. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Application 50. Which of the following contract subject matters would not be covered under the UCC? a. a contract for the sale of a mobile home from the manufacturer b. a contract for the sale of a mobile home from a previous owner c. a contract for the sale of a mobile home plus its lot d. All of the above are under the UCC. : c 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Sources of Contract Law : Bloom's: Application 51. Which of the following is not required for a valid UCC offer? a. quantity b. payment terms c. subject matter d. both b and c e. a, b, and c : b 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Comprehension 52. Which of the following is effective upon mailing or dispatch? a. offers b. rejections c. counteroffers d. revocation e. none of the above : e 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Acceptance: The Offeree's Response : Bloom's: Comprehension 53. To be valid, a UCC merchant's firm offer: a. must be supported by consideration. b. must be evidenced by a record. c. must be signed by both parties. d. all of the above : b 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Comprehension 54. Under both UCC and common law, a counteroffer: a. must be accepted by the original offeror. b. is effective upon mailing or dispatch. c. is also a rejection. d. none of the above : c 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Comprehension 55. Under the UCC and between nonmerchants, additional terms in acceptance: a. constitute a counteroffer. b. are part of the contract. c. result in rejection or the original offer. d. none of the above : d 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Comprehension 56. Under the UCC and between merchants, additional terms in acceptance: a. are part of the contract unless they are material. b. are part of the contract unless the offer was limited. c. result in rejection of the original offer. d. none of the above : a 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Offer : Bloom's: Comprehension 57. The mailbox rule applies to: a. all acceptances. b. acceptances communicated through the offer's stipulated means. c. acceptances under UCC only. d. revocations and acceptances. e. none of the above : b 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Acceptance: The Offeree's Response : Bloom's: Comprehension 58. Which is not a requirement for a merchant's confirmation memorandum? a. evidenced by a record b. signed by both parties c. underlying oral agreement d. none of the above : b 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Writing and E-Commerce: The Uniform Electronic Transaction Act : Bloom's: Comprehension 59. Which of the following contracts would not have to be in writing under the old UCC? a. a contract for the sale of an easement for $450 b. a contract for consulting services for $10,000 over the next 90 days c. a three-year advertising contract d. a contract for the sale of furniture for $700 e. All of the above must be in writing. : b 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Contract Form: When a Record is Required : Bloom's: Application 60. The following series of events occurred between Bull's Meat Market and The Butcher: May 1 - The Butcher faxes Bull's and offers to buy 200 lbs. of T-bone steak at $3.29 per lb. May 2 - Bull's faxes back: "Price is okay. Payment prior to delivery." Bull's and The Butcher: a. have a contract on May 2 with the payment term. b. have a contract on May 2 without the payment term. c. do not have a contract. d. none of the above : a 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Offer : Bloom's: Application 61. Jane Linden is negotiating with James Paul to buy his 1987 Toyota MR5. The following excerpts from letters have occurred so far: Jane: "I would be interested in purchasing your MR5." James: "I am thinking of selling my MR5." Jane: "I am considering selling my diamond tennis bracelet to buy your MR5." Which of the following statements is ? a. James and Jane have a contract to sell the MR5. b. James and Jane do not have a contract to sell the MR5. : b 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Offer : Bloom's: Application 62. John Freeden is negotiating with Bill Murray to buy Bill's mountain bicycle. The following conversation has taken place: John: "I will buy your mountain bike for $325.00." Bill: "I couldn't sell it for less than $375.00." John: "I'll take it for $375.00." Which of the following statements is ? a. Bill and John have a contract for the sale of the bike at $375.00. b. Bill and John have a contract for the sale of the bike at $325.00. c. Bill and John do not have a contract. d. none of the above : c 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Offer : Bloom's: Application 63. Jerry Montray is negotiating with Pamela Barnes for the purchase of her mountain bike. The following conversation has taken place: Jerry: "I will buy your mountain bike for $375.00." Pamela: "I will sell it to you." Jerry: "Good. The tire pump is included." Which of the following statements is ? a. Jerry and Pamela have a contract for the bike at $375.00. b. Jerry and Pamela do not have a contract for the bike at $375.00. c. Jerry and Pamela have a contract for the bike at $375.00 with the tire pump. d. none of the above : a 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Offer : Bloom's: Application 64. Which of the following is not a risk associated with international contracting? a. Currency exchange rates b. Transportation costs c. Fee collection d. None of the above : d 1 : Moderate : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Issues in Formation of International Contracts : Bloom's: Application 65. Ann Frazer has just purchased a new Maserati. Ann will be borrowing the money from her bank. Ann signed the contract at 8:00 PM at the dealership and her bank will not be open until 10:00 AM the following day. Ann: a. has a contract regardless of whether her bank approves her loan. b. has made a conditional acceptance and has no contract. c. will be excused from her contract if the bank does not approve her loan. d. none of the above : c 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Formation of Contracts : Bloom's: Application 66. The language "I offer to sell you my 1974 White Ford Torino" is: a. a valid offer. b. not a valid offer because it lacks a definite price. c. not a valid offer because there are no terms for payment. d. not a valid offer because it is oral. : a 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Offer : Bloom's: Application 67. Day 1: Mike sends Tina a letter offer to sell his fish tank to her for $125. Day 2: Tina faxes Mike an acceptance. Day 2: Mike receives Tina's fax. Day 3: Mike calls Tina to revoke his offer. Mike and Tina: a. do not have a contract since Tina used the wrong means of acceptance. b. do not have a contract because Mike revoked his offer before Tina accepted properly. c. have a contract as of the receipt of the fax. d. have a contract as of when the fax was sent. : d 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Acceptance: The Offeree's Response : Bloom's: Application 68. Walt's Pool World's fax to Pat's Pumps: "I'll take 10 4 hp pool pumps @ $175 each." Pat's Pumps' return fax: "Ok. Will deliver tomorrow AM." Pat and Walt: a. do not have a contract because the faxes will not satisfy the statute of frauds. b. do not have a contract because of the mirror image rule. c. had a contract when Pat's fax was sent. d. had a contract when Pat's fax was received. : c 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Acceptance: The Offeree's Response : Bloom's: Application 69. Which of the following contract subject matters must be evidenced by a writing to be enforceable under the statute of frauds? a. a contract for the sale of an easement for $75 b. a contract for the sale of a computer monitor for $220 c. a contract for consulting for 6 months @ $10,000 per month plus expenses d. All of the above must be in writing. : a 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Contract Form: When a Record is Required : Bloom's: Application 70. Jane: "I'll pay you $50 if you will clean my windows." Al: "I'll do it for $75." Jane: "$65 and it's a deal." Al: "No way." Jane: "Too late. We have a contract." Which of the following statements is ? a. Jane is correct, there is a contract. b. There is no contract. c. There is a contract to clean the windows for $65. d. There is a contract to clean the windows for $75. : b 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Offer : Bloom's: Application 71. Which of the following contracts must be in writing to be enforceable? a. A contract for the sale of an easement for $250. b. A contract for the sale of a bike for $175. c. A six-month marketing consulting contract. d. All of the above must be in writing to be enforceable. : a 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Contract Form: When a Record is Required : Bloom's: Application 72. Abe and Gabriel entered into a contract for Abe to furnish landscaping services for Gabriel's office complex. The contract provides the fee will be $75 per month. At the time Gabriel signs the agreement, the two discuss the fact that the services required in the winter will be less and the fee will be reduced to $50 per month. Abe adds as Gabriel is signing, "I just forgot to put that sliding scale in this contract. Don't worry - I'll take care of it because we understand each other." Gabriel: a. will be permitted to introduce evidence about the winter fee reduction. b. will only need to pay $50 during the winter months. c. will pay $75 per month every month because of parol evidence. d. none of the above : c 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Writing and E-Commerce: The Uniform Electronic Transaction Act : Bloom's: Application 73. Andy: "This is to confirm our telephone conversation of earlier today. 200 lbs. of T-bone at $2.89 per pound." Barb: "Yes, but that's 100 pounds at $2.99." Andy: "Too late, we already reached agreement by phone." Barb: "Too bad, it wasn't in writing." Which of the following statements is ? a. Barb is incorrect. The phone conversation was a contract. b. Barb is correct. The agreement must be in writing to be enforceable. c. Andy can enforce the agreement with the parol evidence rule. d. none of the above : b 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Contract Form: When a Record is Required : Bloom's: Application 74. Day 1: A wires an offer to B Day 2: B receives the offer Day 3: B phones an acceptance A states, "Too late. I changed my mind." Which of the following statements is ? a. A and B do not have a contract b. A and B have a contract under common law only c. A and B have a contract d. none of the above : d 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Offer : Bloom's: Application 75. Melanie: "I'll buy that armoire for $775." Judith: "It's not for sale." Melanie: "How about $875?" Judith: "I don't know. It's been in my family for 130 years." Melanie: "How about $1000?" Judith: "I'll think about it." a. There is an option contract. b. There is no contract. c. There is a reliance case. d. There is a quasi contract. : b 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Acceptance: The Offeree's Response : Bloom's: Application 76. Which of the following contracts would not be governed by the UCC? a. a contract for dentures b. a contract for the purchase of an Arabian horse c. a contract for the purchase of an oil painting for $550 d. a contract for the purchase of an ATR jet e. All of the above are governed by the UCC. : a 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Sources of Contract Law : Bloom's: Application 77. Which of these is an example of a bank’s commitment to pay? a. Bill of lading b. Fee arbitration agreement c. Letter of credit d. A warrant : c 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Issues in Formation of International Contracts : Bloom's: Comprehension 78. John: "I will sell you my laptop computer for $330." Mary: "Will you include the carrying case"? John: "Sold." a. There is a contract for the sale of the computer with the carrying case. b. There is a contract for the sale of the computer but the carrying case is not included. c. There is no contract for the sale of the laptop computer. d. There is a contract but it is unenforceable because it must be in writing. e. none of the above : c 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Offer : Bloom's: Application 79. Alpha Enterprises sent an offer to Omega Enterprises. The offer read as follows: AVAILABLE FOR IMMEDIATE SHIPMENT: 600 WIRELESS NOKIA PHONES - MODEL HCG5321 (THE PHONE FROM "CHARLIE'S ANGELS"). PRICE IS $10 EACH. 30 DAYS, SAME AS CASH. ALL WARRANTIES IN EFFECT. THIS OFFER EXPIRES ON TUESDAY, MARCH 15, 2016. Omega sent the following letter in response on March 14, 2016, via overnight delivery: HAPPY TO ACCEPT YOUR OFFER ON THE NOKIA PHONES. SHIP IMMEDIATELY. There was a major snowstorm that hit the east coast on March 14, 2016, and Omega's letter did not arrive at Alpha's headquarters until March 18, 2016. Alpha had sold the phones to another company. Omega demanded the 600 phones for $10 each claiming that it had accepted the offer in time. a. Omega is correct; it had valid and timely acceptance and had a contract. b. Omega is incorrect; the acceptance must arrive for it to be effective. c. Omega is incorrect; the offeree assumes the risk of the delivery means chosen. d. Omega is correct, but any damages must be recovered from the overnight shipping company. e. none of the above : a 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Acceptance: The Offeree's Response : Bloom's: Application An ad in a newspaper reads: "AVAILABLE TODAY ONLY. FRIENDLY'S APPLIANCES. CLEARANCE SALE FOR ALL FLOOR ITEMS. 75% OFF RETAIL PRICES." Joan Ludwig arrived at Friendly's about one hour after it opened and there were no appliances left. 80. The issues in the situation are governed by: a. The Uniform Commercial Code b. UETA c. common law d. restatement of contracts e. none of the above : a 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Sources of Contract Law : Bloom's: Application 81. The newspaper ad: a. is an offer. b. is not an offer. c. is a merchant's firm offer. d. cannot be revoked. e. none of the above : b 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Offer : Bloom's: Application 82. Which of the following is ? a. Friendly's has breached a contract and owes damages to Joan. b. There is no breach of contract. c. Joan has no rights of recovery because the contract was required to be in writing. d. There was no contract, but Joan can recover on the basis of quasi contract. e. none of the above : b 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Offer : Bloom's: Application 83. Which of the following eliminates the effect of the mailbox rule? a. The UCC eliminates the mailbox rule. b. Common law eliminates the mailbox rule. c. An offer that includes, "Acceptance is effective upon receipt only." d. Any attempt to eliminate the mailbox rule is void. e. none of the above : c 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Acceptance: The Offeree's Response : Bloom's: Knowledge 84. Day 1 - School teacher sends superintendent letter of resignation. Day 4 - Superintendent mails letter accepting resignation. Day 5 - School teacher hand delivers letter withdrawing resignation. Day 6 - Teacher receives superintendent’s letter. a. The above negotiations are governed by the UCC. b. The resignation was accepted and the withdrawal is too late. c. both a and b d. The resignation offer was revoked. : b 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Acceptance: The Offeree's Response : Bloom's: Application 85. Buyer on fax: “Will take house for $587,500 if front lawn is fixed.” Seller on fax in response: “Price is $589,000 and no front lawn.” Buyer on fax in response: “$588,000 plus the front lawn.” Seller on fax in response: $589,000 plus the front lawn.” a. There is a contract for the sale of the house at $588,000 plus the lawn. b. There is a contract for the sale of the house at $589,000 plus the lawn. c. There is no contract. d. none of the above : c 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Offer : Bloom's: Application 86. Which of the following is/are governed by the UCC? a. a contract for the sale of water b. a contract for the sale of extracted oil c. a contract for the sale of barges d. All of the above are governed by the UCC. : d 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Sources of Contract Law : Bloom's: Application 87. Which of these can be a valid contract agreement under ESIGN? a. A fax b. A PDF file c. An online click or check on an “I accept” button d. All of the above : d 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Writing and E-Commerce: The Uniform Electronic Transaction Act : Bloom's: Application 88. "Point and click" refers to: a. the right of the FBI to search web sites. b. the formation of contracts via the Internet. c. the registration of domain names under ICANN. d. pornographic web sites. e. none of the above : b 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : E-Commerce and Contract Formation : Bloom's: Knowledge 89. E-Sign: a. applies only to interstate transactions. b. must still be adopted by the states to be effective. c. does not apply to contracts for the sale of goods. d. applies in all 50 states. e. none of the above : d 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Writing and E-Commerce: The Uniform Electronic Transaction Act : Bloom's: Knowledge 90. The Uniform Electronic Transaction Act (UETA): a. has been adopted in all 50 states. b. has been declared unconstitutional. c. is the same as E-sign. d. none of the above : d 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Writing and E-Commerce: The Uniform Electronic Transaction Act : Bloom's: Knowledge 91. The following exchange took place in a series of e-mails between Mitchell Raines and Leslie Carroll: Mitchell: I am looking at the Trek bike advertised on your website for $650.00. Would you take $600.00? Leslie: I would take $600 if there were no delivery required. Mitchell: Well, I have to have it delivered because you are two states away. Leslie: Well, then if there has to be delivery, I could do it for $630.00. Mitchell: Is that cash? Leslie: Yes. a. Mitchell and Leslie have a contract for the sale and purchase of the bike for $630.00 with delivery. b. Mitchell and Leslie have a contract for the sale and purchase of the bike for $630.00 without delivery. c. Mitchell and Leslie have an offer on the table of $600 with no delivery. d. Mitchell and Leslie do not have a contract. : d 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Offer : Bloom's: Application 92. Julia Pitt runs a boutique that specializes in luggage and travel items. Julia contacts Tumi Luggage about carrying its line of messenger satchels. The Tumi representative tells Julia that Tumi would be happy to sell her 100 Tumi Black Messenger bags for $318 each. Julia is happy with the price and asks Tumi to send the bags. The Tumi representative then faxes a confirmation of the shipment of the 100 bags at $318 each. Julia receives the fax. When the bags arrive, Julia contacts Tumi and says there is a business downturn and that she does not want the bags and that there was no contract anyway. a. Julia is correct; the contract requires some type of authentication from Julia to be enforceable. b. Julia is correct; the contract required more than a fax to have a sufficient record. c. Julia is incorrect; she and Tumi have a valid and enforceable contract. d. both a and b : c 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Acceptance: The Offeree's Response : Bloom's: Application 93. Fred Twain sends the following e-mail to Ralph Barnes: “Will sell you my 2010 Audi A4 for $23,500, will carry or take cash. This offer to remain open until November 11, 2016.” Ralph responds, “I know how much you love that car. I’ll think about it.” On November 12, 2016, Ralph e-mails Fred and writes, “Fred, I am ready to buy your car.” Fred responds, “Ralph, I sold the car this morning because I didn’t hear from you.” a. Fred has breached a contract because Ralph accepted. b. Fred was required to notify Ralph before he sold the car to someone else. c. Ralph no longer had the power of acceptance. d. both a and b : c 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Acceptance: The Offeree's Response : Bloom's: Application 94. On Monday, Sam's Computer Company wires Bob's Computer Mart, "I have two IBM XT's for sale for $1700 each. You pay cost of shipping." Bob received the offer on Monday afternoon and wired back, "You have a deal. 30 days same as cash." On Tuesday morning Sam called to revoke the offer. On Tuesday afternoon Sam received the wire. Sam says there is no contract and Bob says there is. Who is correct? : Mailbox rule applies. There was a contract on Monday afternoon when the wire was sent. Between the two merchants, the "30 days" additional terms will become part of the contract. 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Acceptance: The Offeree's Response : Bloom's: Application 95. List the types of contracts required to be in writing. : UCC - goods $500 or more; real estate; promises to pay the debt of another; contracts that cannot be performed in one year. 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Contract Form: When a Record is Required : Bloom's: Application 96. H2O Plumbing has been working on a residential subdivision project for Paradise Builders. H2O agreed to do all plumbing work on each of the houses for a fee of $5200 per house. H2O has reviewed the market and decided that most plumbers are getting between $5500 and $6000 for houses of comparable size. H2O has done the initial work on all of the houses and has told Paradise it will stop work unless the price is increased to $5500 per house. Paradise is on a tight schedule with its construction lender and with home buyers and succumbs to the demand. Later, when the houses are constructed, Paradise refuses to pay any more than $5200 per house. Explain H2O's rights to them. : H2O cannot get more money for what it was already obligated to do - it could only get $5500 if it agreed to do more on each house. Further, H2O used duress to get Paradise to agree to the transaction. There are at least two contract defenses - lack of consideration and duress - that could be used by Paradise. 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Consideration : Bloom's: Application 97. Trevor Jones accepted a summer internship with Hailey & Thomas, a management consulting firm. The negotiations and offer were all oral. Hailey & Thomas' managing partner did send a letter with the following language: Welcome to Hailey & Thomas. We are looking forward to working with you. When you arrive in New York, please call me so that we may help you locate lodging for the summer. Discuss whether Trevor has a contract and if he has sufficient proof of its existence. Also discuss whether the agreement needed to be in writing. : The agreement did not need to be in writing since it was a contract for less than one year. Even if the contract did need to be in writing, Trevor probably has sufficient evidence with the letter from the managing partner. 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Contract Form: When a Record is Required : Bloom's: Application Barnes & Noble faxes to Woodchip Publishing Company on May 1, 2002 the following: Please ship immediately six copies of NOBODY FIXES REAL CARROT STICKS ANYMORE. Price: $6.00 Shipping: $2/book Woodchip ships six books with an invoice as follows: Six NOBODY FIXES REAL CARROT STICKS ANYMORE @ $6.00 = $36.00 Shipping and Handling = $6.00 98. Is there a contract? : Yes, under the UCC, the shipment was acceptance. Woodchip gave a break on shipping which it is free to do. 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Acceptance: The Offeree's Response : Bloom's: Application 99. Suppose that the fax from Barnes & Noble read: Please ship immediately via priority mail - 10 Copies of NOBODY FIXES REAL CARROT STICKS ANYMORE. Price: $6.00 per book Shipping: $3.95 total Woodchip ships the books at the $6 price but ships them via two-day UPS at a price of $5.95. Is there a contract? : You have two merchants and Woodchip accepted by shipping, but used a different carrier that made a difference in price. It was an acceptance and breach at the same time because Barnes & Noble specified shipping and Woodchip used a different means for shipment. At a minimum, Barnes & Noble is permitted to not pay the extra shipping even if it chooses to accept the books. The acceptance on the different shipping terms is really not an acceptance, but a counteroffer that Barnes & Noble is free to accept or reject. 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Acceptance: The Offeree's Response : Bloom's: Application 100. Name the statutes that affect contract formation in cyberspace. : E-sign - The Electronic Signatures in Global and National Commerce Act Uniform Electronic Transactions Act (UETA) Uniform Computer Information Transactions Act 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Writing and E-Commerce: The Uniform Electronic Transaction Act : Bloom's: Knowledge 101. Discuss whether a contract to solicit names of potential subscribers using pop-up Internet ads for a newspaper is considered goods or services under the UCC. : According to Wall Street Network, Ltd. v. New York Times Company, such a list of names is a service under the UCC and not a good. While the end result is a list of names - potential subscribers - the process of obtaining those names is a service. The essence of the contract calls for services not the sale of goods. 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Sources of Contract Law : Bloom's: Application 102. The Equal Credit Opportunity Act was passed to ensure equal credit opportunity regardless of past credit history. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 103. A negative credit decision cannot be based on an applicant's plans for having children. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 104. The Truth-in-Lending Act applies to all credit transactions. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 105. The solicitation of credit card customers is not regulated by the federal government. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 106. The liability limitation for credit card holders who report a loss or theft is $50. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 107. A credit card applicant can be solicited without disclosure of the card's terms. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 108. Under CARD, credit terms must last for at least two years. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : CPA Exam : Bloom's: Knowledge 109. Leases of consumer goods are not subject to disclosure requirements. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : CPA Exam : Bloom's: Knowledge 110. The Equal Credit Opportunity Act applies only to consumer transactions. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 111. A spouse cannot apply for credit without the signature of his/her spouse. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 112. Asking a couple's plans for having children is a violation of the ECOA. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 113. Requiring credit references for members of one race but not for another is a violation of the ECOA. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 114. Asking that all sources of income be revealed on a credit application is prohibited by the ECOA. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 115. The subprime lending market uses title loans. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 116. Predatory lending involves high interest rates and title loans. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 117. The Fair Credit and Charge Card Disclosure Act prohibits issuing credit cards without the consumer’s consent. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 118. The subprime lending market is also called the predatory lending market. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 119. Many states have imposed additional steps for making loans in the subprime lending market. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 120. The subprime lending market collapse in 2008 led to other credit crunches and business impacts. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 121. An applicant for credit need not disclose spousal support income if he is not relying on it as an income source. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 122. The spouse of a credit applicant must disclose his or her credit information if the credit application is for the applicant’s business operations. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 123. A credit application that asks for criminal convictions from the last five years violates the ECOA. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 124. The Equal Credit Opportunity Act prohibits which of the following? a. Basing the credit decision on the receipt of public assistance income. b. Basing the credit decision on a bankruptcy of five years ago. c. Basing the credit decision on the fact that the applicant was in prison for a felony three years ago. d. Basing the credit decision on unemployment. : a 1 : Moderate : United States - BUSPROG: Diversity : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Application 125. Which of the following questions on a credit application would be a violation of ECOA? a. asking about felony convictions b. asking address and length of residence c. asking whether the applicant is pregnant d. All of the above are violations. : c 1 : Moderate : United States - BUSPROG: Diversity : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Application 126. The maximum liability for a credit card holder whose card is lost or stolen is: a. $50. b. $50 if the cardholder notifies the creditor. c. $0. d. none of the above : b 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 127. Which of the following is not required to be disclosed in the solicitation of a credit card customer? a. fees for issuing the card b. what your credit limit will be c. APR for the card d. All of the above must be disclosed. : b 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 128. Janet Kennedy has received a letter in the mail from BISA International, a credit card firm. The letter describes the card as follows: "This card is yours for only a small annual fee that is billed to your account. There is an annual percentage rate finance charge of 16.5%. There may be other charges for some transactions. There are no late fees, but there will be a charge for going over your credit limit." Which of the following statements is ? a. The letter includes all the necessary disclosures for credit card solicitation under Regulation Z. b. The finance charge is usurious. c. The letter is missing several items of disclosure required under Regulation Z for credit card solicitation. d. none of the above : c 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Consumer Credit Contracts : Bloom's: Analysis 129. Which of the following questions on a credit application violates the ECOA? a. "List your place of employment." b. "Other sources of income - if you wish to have them considered in your credit evaluation." c. "Length of time in current residence." d. "Monthly child support income." : d 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Consumer Credit Contracts : Bloom's: Analysis 130. Under CARD, the terms of the credit card must be: a. sent to the customers. b. printed on paper. c. posted on the Internet. d. all of the above. : d 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Comprehension 131. Stan James carelessly left his wallet in the restroom of a gas station while on a business trip. He did not realize his wallet was gone until eight hours later when he went to check into his hotel. Stan called the credit card companies immediately, only to learn that the thief had charged $2000 on his American Express card, $450 on his MasterCard, and $75 on his gas credit card. Stan James' maximum liability on the cards is: a. $0. b. $50 per card. c. $50. d. none of the above : b 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Consumer Credit Contracts : Bloom's: Application 132. Which of the following questions is prohibited under the ECOA? a. "Will your husband approve of you getting this credit card?" b. "Are you now pregnant or are you planning to be?" c. "We don't count public assistance income." d. All of the above are ECOA violations. : d 1 : Challenging : United States - BUSPROG: Diversity : United States - OH - AICPA: BB-Critical Thinking : Consumer Credit Contracts : Bloom's: Application 133. Which of the following is not a violation of the ECOA? a. requiring a husband's signature when his wife applies for a credit card b. requiring disclosure of pregnancy c. requiring disclosure of length of time at current job d. requiring disclosure of marital status e. All of the above are violations of the ECOA. : c 1 : Challenging : United States - BUSPROG: Diversity : United States - OH - AICPA: BB-Critical Thinking : Consumer Credit Contracts : Bloom's: Application 134. Which of the following question(s) on a credit application would be a violation of the Equal Credit Opportunity Act? a. “Do you plan on getting pregnant within the next two years?” b. “Have you ever declared bankruptcy?” c. “Have you ever been convicted of a crime?” d. All of the above are violations. : a 1 : Challenging : United States - BUSPROG: Diversity : United States - OH - AICPA: BB-Critical Thinking : Consumer Credit Contracts : Bloom's: Application 135. Under CARD, colleges and universities must: a. disclose financial relationships with the credit card companies. b. provide debt counseling for students. c. limit locations for student solicitation for credit cards. d. do all of these. : d 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Comprehension 136. List the federal laws regulating credit contracts and give a brief description of each. : ECOA - prohibits race, color, sex, and national origin from being used as the basis for a decision. TILA - full disclosure provisions of Consumer Credit Protection Act. Fair Credit Billing Act - regular disclosures; full disclosures of open-end credit. FCRA - disclosure of reports and right to correct. Consumer Leasing Act - disclosure in leasing goods. FDCPA - regulates collection tactics. 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Comprehension 137. Discuss what colleges and universities must do under CARD for their students. : CARD requires the schools to limit the locations of solicitation of credit cards for students, to disclose all financial relationships with the credit card companies, and to provide debt counseling for students. These items will help protect and educate the students about the uses and misuses of credit cards. 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Consumer Credit Contracts : Bloom's: Knowledge 138. What additional disclosures must be made in credit transactions in which the debtor's home will serve as security for the loan? : Under the amendments to TILA covering home mortgages, the loan documents must make clear the fact that default could lead to foreclosure and loss of the home. 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : CPA Exam : Bloom's: Knowledge 139. Using what you have learned about consumer credit, develop a credit application that would comply with all federal statutes and regulations. : Cannot ask for extra sources of income unless the consumer wants to reveal them. Cannot ask about marriage, pregnancy, welfare income. Cannot discriminate on the basis of race, gender, national origin. 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking : Consumer Credit Contracts : Bloom's: Synthesis 140. Which of the following contracts would have to have some form or writing or record to be enforced? a. A contract for the sale of a painting for $1,000. b. A contract for employment for nine months. c. A contract for advertising a house for sale for $50. d. All of the above contracts would need to be in writing to be enforceable. : a 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Contract Form: When a Record is Required : Bloom's: Application Evaluate the following facts and then the next two questions. Day 1 S sends a letter to B with the following: “I will sell you my Play Station 3 for $150 when I get my new Play Station.” Day 2 B receives the letter and responds, “I will take the Play Station for $150.” 141. S has made a valid offer to B. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Critical Thinking : Offer : Bloom's: Application 142. The communication between S and B must be evidenced by a record if any rights related to the exchange can be enforced. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Critical Thinking : Offer : Bloom's: Application Evaluate the following facts and then the next two questions. Day 1 S sends a letter to B with the following: “I will sell you my Play Station 3 for $150.” Day 2 B receives the letter and responds, “I will take the Play Station for $150, but include 3 games.” 143. S has made a valid offer to B. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Critical Thinking : Offer : Bloom's: Application 144. B has made a valid acceptance. a. b. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Critical Thinking : Acceptance: The Offeree's Response : Bloom's: Application 145. Which of the following is not part of the CARD provisions on transfer of credit card balances? a. Limits on how quickly credit terms can be changed following the transfer. b. Additional disclosures on transfer fees. c. Limits on transfer fees. d. Prohibitions on additional transfers by the card holder. : d 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Critical Thinking : Consumer Credit Contracts : Bloom's: Application 146. S offers at-home postage and mailing for a monthly fee. Customers are able to carry a balance on their accounts that allows them to mail packages and letters as long as there is a balance in their account. S has a button on its program that carries this logo, “To purchase postage, click here.” Following that click, another window pops up that reads, “You are about to purchase postage. Once you click 'Okay' below, you cannot change this transaction." Why does S have the second pop-up button? a. The pop-up button is simply a courtesy for its customers. b. The pop-up button is necessary to show acceptance of the terms. c. The pop-up button is required under the UCC. d. The pop-up button is required under common law. : b 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Critical Thinking : E-Commerce and Contract Formation : Bloom's: Application 147. A bilateral contract is one in which one side promises to perform in exchange for the other side's actions. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Types of Contracts : Bloom's: Knowledge 148. Void and voidable contracts are one and the same. a. b. : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal : Types of Contracts : Bloom's: Knowledge

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