Business Law chapter 3 Exam questions-100% worth it.

Question 1 of 20 Who is the acceptor of a draft in a draft transaction? A. the drawer B. the drawee C. the payee D. the finance Question 2 of 20 A __________ is a type of draft that is always paid at a future date. A. sight draft B. bill of exchange C. time draft D. demand draft Question 3 of 20 The __________ establishes uniform legal rules for the formation and enforcement of electronic contracts and licenses. A. common law of contracts B. Restatement of the Law of Contracts C. UCITA D. UCC Question 4 of 20 A(n. __________ is a clause in an instrument that permits the maker to pay the amount due prior to the date of the instrument. A. prepayment clause B. acceleration clause C. extension clause D. forestallment clause Question 5 of 20 Which of the following statements is true about contracts? A. Parties to an informal contract can use any words they choose to express their contract. B. A contract under seal is disclosed only to the offeror of the contract. C. A letter of credit is an informal contract. D. A void contract is the same as a voidable contract. Question 6 of 20 In a(n. __________ contract, agreement between parties is inferred from their conduct. A. implied-in-law B. implied-in-fact C. express D. formal Question 7 of 20 Windsor, the owner of Windsor's Sandwiches, contacts a new supplier named Gary. He tells Gary that he will pay him $375 if Gary delivers 20 pounds of cheese the following morning. Gary promises to make the delivery as requested by Windsor. This creates a __________ contract between them. A. unilateral B. bilateral This study source was downloaded by from CourseH on :17:36 GMT -05:00 This study resource was shared via CourseH C. implied-in-law D. executory Question 8 of 20 A contract that has been fully performed by both sides is called an __________ contract. A. executory B. executed C. option D. executive Question 9 of 20 Which of the following is an acceptable consideration for a contract? A. arrest B. penalty C. money D. sentence Question 10 of 20 What is the similarity between a demand draft and a trade acceptance?   A. both are examples of sight drafts B. both require credit to be extended to the buyer C. both have the drawer be the payee as well D. both are considered two-party transactions Question 11 of 20 Two brothers, Sam and Jim, were fighting over the division of their ancestral property. After ten years of legal battle, a frustrated Sam contacted a powerful politician who subjected Jim to extreme duress in order to make him sign a contract of assent in favor of Sam. When Jim takes this contract to court, the contract will be declared __________. A. enforceable B. conditionally enforceable C. voidable D. unenforceable Question 12 of 20 Martha contacts a bakery to get a cake for her son's birthday party. She tells the baker that she will pay him $150 for the cake if he delivers the cake on Friday evening. If the baker does not deliver the cake on Friday evening, which of the following will hold true? A. Martha can sue the baker to recover $150 in damages. B. Martha can sue the baker but cannot recover damages. C. The baker has to give $150 plus the cost of the replacement cake to Martha as he entered into a verbal contract with her. D. Martha cannot sue the baker at all. Question 13 of 20 The __________ states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties. A. Restatement of the Law of Contracts B. Restatement (Second. of Contracts C. objective theory of contracts This study source was downloaded by from CourseH on :17:36 GMT -05:00 This study resource was shared via CourseH D. common law of contracts Question 14 of 20 Which of the following is considered a distinction of a check? A. It always draws its money from a financial institution. B. It is created when credit is extended to a buyer by a seller. C. It is a two-party instrument. D. It is an unconditional written promise to pay. Question 15 of 20 __________ are a special form of contract that satisfy the requirements established by Revised Article 3 of the UCC. A. Banknotes B. Negotiable instruments C. Letters of credit D. Stocks Question 16 of 20 A(n. __________ is stated orally or in written words. A. express contract B. implied-in-law contract C. implied-in-fact contract D. quasi-contract Question 17 of 20 A sight draft that arises when credit is extended by a seller to a buyer with the sale of goods is known as a __________. A. check B. time draft C. trade acceptance D. demand draft Question 18 of 20 A(n. __________ is a type of instrument that is payable to anyone in physical possession of the instrument and who presents it for payment when it is due.   A. certificate of deposit B. order instrument C. bearer instrument D. check Question 19 of 20 Which of the following is an informal contract? A. check B. bank draft C. lease D. recognizance This study source was downloaded by from CourseH on :17:36 GMT -05:00 This study resource was shared via CourseH Question 20 of 20 Which of the following is true about a promissory note? A. It is a three-party transaction. B. It is not an order to pay. C. The party who makes the promise is the lender. D. The payee cannot transfer the note to a third party. This study source was downloaded by from