MGT 2050 QUESTIONS AND VERIFIED ANSWERS
T/F Oral representations or promises made prior to the contracts formation or at the
time the contract was created, may be admitted to in court. - Answers - true
2. Which of the following would not enforce a warranty?
A. A stamp on a tire that states "nail-proof"
B. A label on a couch that states "will not fade"
C. A shirt labeled "designed for comfort"
D. Steel bolts marked to withstand 1,200 pounds of pressure - Answers - C. A shirt
labeled "designed for comfort"
3. Which of the following is not covered by the definition of a warranty?
A. The sale of goods from a supplier to a distributor
B. An offering of free samples
C. A promise that a product will last X years
D. Written details about the nature of a product - Answers - B. An offering of free
samples
4. Which of the following is not a breach of an implied warranty of merchantability?
A. The plug for a lamp is too big to fit in an electrical socket.
B. Tennis shoes do not protect a wearer's foot from a dropped pipe.
C. Roofing shingles do not deter water.
D. Weed killer does not kill weeds. - Answers - B. Tennis shoes do not protect a
wearer's foot from a dropped pipe
5. Bruce owns a motorcycle shop. He sells small motorcycles meant for recreation and
sporting. A customer comes in looking for a motorcycle she can use to take long
journeys on the highway. Bruce sells her a recreational motorbike that ultimately breaks
down. Which of the following is true?
A. Bruce broke an implied warranty of fitness for a particular purpose.
B. Bruce broke an implied warranty of merchantability.
C. The customer has broken an implied warranty of merchantability.
D. Bruce has not broken a warranty. - Answers - A. Bruce broke an implied warranty of
fitness for a particular purpose.
6. True or False: An agent's duties must always be explicitly delineated in a contract's
terms. - Answers - False
Define Factor - Answers - A person who controls and administers personal property &
goods
Define Broker - Answers - A person who facilitates a transaction on others' behalf
, Define Independent Contractor - Answers - A person hired to perform a specific service
for another
Define Agent - Answers - A person who is given authority to act for another person
8. Trevor thinks his brother Spencer needs a new motorcycle. He makes a deal with
Gilbert for Spencer to buy a motorcycle from Gilbert. Which of the following is true?
A. Trevor's deal cannot be enforced because he is not an agent.
B. Trevor's deal is enforceable, since he is Spencer's brother.
C. Spencer can ratify the deal even though Trevor is not his agent.
D. Spencer can ratify the deal only if Trevor is an agent. - Answers - A. Trevor's deal
cannot be enforced because he is not an agent.
9. Unions were meant to do all but which of the following?
A. Gain job security
B. Provide fair wages
C. Enforce reasonable work hours
D. Create strikes - Answers - D. Create strikes
10. Which of the following is true?
A. Unions may not discriminate against union members based on their race, religion, or
gender.
B. Unions' negotiation with labor unions is known as yellow dog contracting.
C. Unions were legitimized by the Sherman Antitrust Act in 1890.
D. The first unions were created in the early 1900s. - Answers - A. Unions may not
discriminate against union members based on their race, religion, or gender.
11. True or False: The Clayton Act had a strong impact on increasing union powers and
improving employer-union relations. - Answers - False
12. True or False: International law is generally successful in setting agreed-upon
standards for safety. - Answers - False; Very successful
Define Comity of Nations - Answers - A sovereign nation will adopt the law of another
out of respect
Define Sovereign Immunity - Answers - Each sovereign nation may not be sued or
prosecuted
Define Act of State Doctrine - Answers - Each sovereign nation must respect the
independence of others
14. Nation A builds a new highway next to citizens' properties. In the months following,
littering as well as several highway accidents result in damage to the properties. The
property owners want to sue the government for damages, but are restrained by:
A. Comity of Nations
T/F Oral representations or promises made prior to the contracts formation or at the
time the contract was created, may be admitted to in court. - Answers - true
2. Which of the following would not enforce a warranty?
A. A stamp on a tire that states "nail-proof"
B. A label on a couch that states "will not fade"
C. A shirt labeled "designed for comfort"
D. Steel bolts marked to withstand 1,200 pounds of pressure - Answers - C. A shirt
labeled "designed for comfort"
3. Which of the following is not covered by the definition of a warranty?
A. The sale of goods from a supplier to a distributor
B. An offering of free samples
C. A promise that a product will last X years
D. Written details about the nature of a product - Answers - B. An offering of free
samples
4. Which of the following is not a breach of an implied warranty of merchantability?
A. The plug for a lamp is too big to fit in an electrical socket.
B. Tennis shoes do not protect a wearer's foot from a dropped pipe.
C. Roofing shingles do not deter water.
D. Weed killer does not kill weeds. - Answers - B. Tennis shoes do not protect a
wearer's foot from a dropped pipe
5. Bruce owns a motorcycle shop. He sells small motorcycles meant for recreation and
sporting. A customer comes in looking for a motorcycle she can use to take long
journeys on the highway. Bruce sells her a recreational motorbike that ultimately breaks
down. Which of the following is true?
A. Bruce broke an implied warranty of fitness for a particular purpose.
B. Bruce broke an implied warranty of merchantability.
C. The customer has broken an implied warranty of merchantability.
D. Bruce has not broken a warranty. - Answers - A. Bruce broke an implied warranty of
fitness for a particular purpose.
6. True or False: An agent's duties must always be explicitly delineated in a contract's
terms. - Answers - False
Define Factor - Answers - A person who controls and administers personal property &
goods
Define Broker - Answers - A person who facilitates a transaction on others' behalf
, Define Independent Contractor - Answers - A person hired to perform a specific service
for another
Define Agent - Answers - A person who is given authority to act for another person
8. Trevor thinks his brother Spencer needs a new motorcycle. He makes a deal with
Gilbert for Spencer to buy a motorcycle from Gilbert. Which of the following is true?
A. Trevor's deal cannot be enforced because he is not an agent.
B. Trevor's deal is enforceable, since he is Spencer's brother.
C. Spencer can ratify the deal even though Trevor is not his agent.
D. Spencer can ratify the deal only if Trevor is an agent. - Answers - A. Trevor's deal
cannot be enforced because he is not an agent.
9. Unions were meant to do all but which of the following?
A. Gain job security
B. Provide fair wages
C. Enforce reasonable work hours
D. Create strikes - Answers - D. Create strikes
10. Which of the following is true?
A. Unions may not discriminate against union members based on their race, religion, or
gender.
B. Unions' negotiation with labor unions is known as yellow dog contracting.
C. Unions were legitimized by the Sherman Antitrust Act in 1890.
D. The first unions were created in the early 1900s. - Answers - A. Unions may not
discriminate against union members based on their race, religion, or gender.
11. True or False: The Clayton Act had a strong impact on increasing union powers and
improving employer-union relations. - Answers - False
12. True or False: International law is generally successful in setting agreed-upon
standards for safety. - Answers - False; Very successful
Define Comity of Nations - Answers - A sovereign nation will adopt the law of another
out of respect
Define Sovereign Immunity - Answers - Each sovereign nation may not be sued or
prosecuted
Define Act of State Doctrine - Answers - Each sovereign nation must respect the
independence of others
14. Nation A builds a new highway next to citizens' properties. In the months following,
littering as well as several highway accidents result in damage to the properties. The
property owners want to sue the government for damages, but are restrained by:
A. Comity of Nations
