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Business Law

Question 31
When a warranty covers the future performance of goods, the breach occurs:
A. at the time the buyer should have discovered the defect in the product.
B. anytime within four years after the buyer discovers the defect.
C. anytime within ten years after the buyer discovers the defect.
D. none of the above

Question 32
When an agent commits a crime at the direction of the principal, the agent and principal may both be liable.
True
False

Question 33
The doctrine that permits a party to suspend its performance under a contract when the other party repudiates the contract is known as:
A. anticipatory repudiation.
B. revocation.
C. voidance.
D. none of the above

Question 34
List the duties of agents to principals under the common law

Question 35
In order for an injured buyer to recover consequential damages, the buyer must show that:
A. the seller knew or should have known at the time the contract was made that the buyer would suffer special damages if the seller did not perform his obligations.
B. he could not have prevented the damage by obtaining substitute goods.
C. neither (a) nor (b).
D. both (a) and (b)

Question 36
An agency relationship can be determined:
A. by direct evidence between the parties.
B. from surrounding circumstances.
C. neither (a) nor (b).
D. both (a) and (b).

Question 37
If the seller refuses to deliver the goods called for by the contract, the buyer can:
A. cover.
B. rescind the contract under the UCC.
C. neither (a) nor (b).
D. both (a) and (b).

Question 38
When an agent's authority is apparent:
A. the agent is not liable to anyone.
B. it is also actual.
C. the principal is liable to the third party.
D. none of the above.

Question 39
From a risk standpoint, a shareholder or limited partner is better off than a general partner.
True
False

Question 40
Commercial agents differ from distributors and non-agents in that commercial agents:
A. generally do not maintain their own inventory of goods.
B. are usually compensated through the payment of a commission when a sale is completed.
C. agents seldom bear the financial risk of nonpayment by the purchaser.
D. all of the above.

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Solution Preview

31. A
32. TRUE
33. A
34. Agent's duties include: to (1) act on behalf of and be subject to the control of the ...

Solution Summary

Agent's duties include: to (1) act on behalf of and be subject to the control of the principal, (2) act within the scope of authority or power delegated by the principal, (3) discharge his or her duties with appropriate care and diligence, (4) avoid conflict between his or her personal interests and those of the principal, and (5) promptly hand over to the principal all monies collected on principal's behalf.

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