Business Law FBLA Study Guide Chapters 11-16 With Complete Solutions

Business Law FBLA Study Guide Chapters



If a contractual right is transferred, this does not change the legal rights of the
other party to the contract. - ANSWER True

No consideration is necessary to make a valid assignment. - ANSWER True

A contract creating a duty can prohibit delegation. - ANSWER True

If the obligor breaches, the assignor must sue for the breach. - ANSWER False

Generally, impossibility of performance refers to an obligor's personal inability
to perform. - ANSWER False

A ready, willing, and able offer to perform an obligation is a tender. - ANSWER
True

The only remedy generally available for a minor breach is money damages. True
- ANSWER True

An award of punitive damages seeks to place injured parties in the same
financial position they would have been in if there had been no breach. -
ANSWER False

A party injured by a breach of contract is not required to take any steps to
minimize the harm done. - ANSWER False

Along with minimum ages for marriage with or without parental permission,
some states have laws specifying a minimum age for dating. - ANSWER False

No law exists that forces the parents of an illegitimate child to marry. - ANSWER
True

Today, about one-fourth of the states allow common-law marriages, although all
states must recognize such a union if it is legal in the state in which it occurred. -
ANSWER True

There are few laws that require parents to support their children until adulthood,
because it is difficult to determine what is adequate support. - ANSWER False

,Keeping a spouse from getting property rights can be accomplished with a
prenuptial agreement. - ANSWER True

An annulment must be sought from an appropriate court to confirm the status of
a void marriage. - ANSWER False

In most no-fault states, irreconcilable differences is the legal reason for
marriage dissolution. - ANSWER True

States that do not follow the common-law rule are called community property
states. - ANSWER True

A contract in which ownership of (title to) goods transfers immediately from the
seller to the buyer for a price is a contract to sell. - ANSWER False

When parties exchange goods for goods, the sale is a barter. - ANSWER True

The Uniform Commercial Code (UCC) does not govern contracts to sell goods in
the future. - ANSWER False

The bill of sale serves as written evidence of the transfer of ownership of goods.
- ANSWER True

Casual sellers are also considered merchants. - ANSWER False

When both parties are merchants, a new term inserted by the offeree
automatically becomes part of the contract if the offeror fails to object within a
reasonable time. - ANSWER True

Even if a party against whom enforcement of an oral contract is sought admits in
legal pleadings or testimony that he or she agreed to part or all of a contract, a
signed writing is still necessary to satisfy the Statute of Frauds. - ANSWER False

If the buyer has had adequate opportunity to inspect the goods, acceptance may
be indicated by a failure to reject them within a reasonable time. - ANSWER True

Any person who innocently buys stolen goods from a thief receives title as well
as possession. - ANSWER False

For ownership of goods to be transferred in a sale, the goods must be both
existing and identified to the transaction. - ANSWER True

Unless prohibited by the terms of the sale, the seller may identify the goods as
the subject matter of a particular sales contract. - ANSWER True

, Unless goods are both existing and identified to the contract, they are
categorized as future goods. - ANSWER True

When a bulk transfer is made, the UCC requires notice be given to the buyer's
creditors. - ANSWER False

An innocent third party who in good faith buys some or all of the goods from a
bulk transferee cannot get a good title. - ANSWER False

Auction sales are "without reserve" unless specifically announced in advance to
be "with reserve." - ANSWER False

By nature or trade usage, each unit of fungible goods may be regarded as equal
to every other unit. - ANSWER True

A fractional interest in a single good that is to remain undivided is not a valid
sale under the UCC. - ANSWER False

Caveat emptor means "let the seller beware." - ANSWER False

If a retailer discovers that a product being sold is unsafe that information must
be reported to the Consumer Preventative Safety Council. - ANSWER False

A warranty is a statement about a product's qualities or performance and
therefore is not governed by the UCC. - ANSWER False

The federal Magnuson-Moss Warranty Act applies only to written warranties on
certain products sold to consumers. - ANSWER True

Puffing and warranties are both statements of fact. - ANSWER False

A warranty against infringement basically requires that the goods be fit for the
ordinary purposes for which such goods are used. - ANSWER False

Merchantability requires that any warranty protection that is customary in the
trade be extended to all buyers. - ANSWER True

Corrective advertising may be ordered by the FTC as a sanction for false and
misleading advertising. - ANSWER True

Property can be classified as either real or personal. - ANSWER True

A fixed, original expression of a creative work can be protected by a trademark.
- ANSWER True