NYS FBLA 2009 BUSINESS LAW

NEW YORK STATE FBLA BUSINESS LAW

2009
PLEASE DO NOT OPEN THIS TEST UNTIL DIRECTED TO DO SO Test Directions 1. Complete the information requested on the answer sheet. PRINT YOUR NAME on the Name line. PRINT the name of the event, BUSINESS LAW on the Subject line. PRINT the name of your CHAPTER on the DATE line. 2. All answers will be recorded on the answer sheet. Please do not write on the test booklet. Scrap paper will be provided. 3. Read each question completely before answering. With a NO. 2 pencil, blacken in your choices completely on the answer sheet. Do not make any other marks on the answer sheet, or the scoring machine will reject it. 4. You will be given 60 minutes for the test. You will be given a starting signal and a signal after 50 minutes have elapsed. Tie will be broken using the last 10 questions of the test.

NYS FBLA 2009 BUSINESS LAW 1. The most direct way employers discriminate is through a. Disparate treatment b. Disparate impact c. Age discrimination d. Business necessity 2. An oral statement of fact or promise constitutes a. No warranty b. An implied warranty c. An express warranty d. A limited warranty 3. A person has the right to control the conduct of another, who is performing a physical task for that person, is called a(n) a. Agents agent b. Master c. Independent contractor d. Principal 4. When a minor disaffirms a contract, the merchandise received upon entering the contract should be a. Undamaged b. Returned c. Paid for d. Ratified 5. When a contract ends, it is said to be a. Discharged b. Released c. Tendered d. Avoided

6. Shareholders who want to control the election of the board of directors by buying a majority of the shares in a corporation but are unable to, may try to obtain a a. Pooling agreement b. Proxy c. Shareholder proposal d. Voting trust 7. A type of co-ownership in which a persons heirs inherit that persons share of property is known as a. Tenancy by the entirety b. Tenancy in common c. Joint tenancy d. Adverse possession

NYS FBLA 2009 BUSINESS LAW

8. A warranty that promises to fix or replace a defective product free of charge for a certain time period is called a(n) a. Express warranty b. Limited warranty c. Full warranty d. Warranty of title 9. The difference between market value and debt in the property is called a. Easement b. Equity c. Interest d. Escrow 10. A legal document verifying permission to practice a particular trade or profession is called a a. Contract b. Covenant c. License d. Permit 11. Absolute liability to pay is also known as a. Primary liability b. Secondary liability c. Tertiary liability d. Surety liability 12. The general descriptions of companies and securities that must be filed with the SEC are contained in a a. Prospectus b. Registration statement c. Financial statement d. Commerce clause 13. A corporations financial inability to take a corporate opportunity provides an exception to the a. Business judgment rule b. Fairness rule c. Insider trading rule d. Corporate opportunity doctrine 14. If what seems to be a valid contract turns out not to be, the contract is a. Fraudulent b. Deceptive c. Defective d. Mistaken

NYS FBLA 2009 BUSINESS LAW 15. To say that a contract is legally binding it is a. Valid b. Express c. Unilateral d. Definite 16. If a licensing statute is designed to raise revenue rather than to protect the public, contracts made with unlicensed persons will be a. Void b. Voidable c. Nonbinding d. Binding 17. If unauthorized charges are made on a credit card before the issuing company is notified, the cardholder is liable for a. $25 b. $50 c. $75 d. $100 18. The transfer of a duty or detriment is called a. Delegation b. Assignment c. Novation d. Relegation 19. Fulfilling all terms of a contract properly and totally is called a. Satisfactory performance b. Substantial performance c. Complete performance d. Tender of performance 20. Land, and anything permanently attached to the land, is a. Tangible property b. Real property c. Personal property d. Genuine property 21. Minors may be employed in certain jobs as long as their work does not interfere with a. Religious training b. Schooling c. Family duties d. Social life

NYS FBLA 2009 BUSINESS LAW

22. The detailed view of a stock offering that must be filed with the SEC is known as a a. Prospectus b. Registration statement c. Financial statement d. Commerce clause 23. The jurisdiction of local courts is a. General b. Appellate c. Special d. Limited 24. A consumer who wishes to cancel a contract made with a door-to-door salesperson must do so within a. Three days b. Three weeks c. 24 hours d. two days 25. A partner who takes no active role and is not known publicly, but has unlimited liability is a a. Silent partner b. Secret partner c. Dormant partner d. Limited partner 26. The heart of the golden rule is a. Empathy b. Greatest good c. Opinion d. Constitutional law 27. The federal regulation that requires used car dealers to place warranty information in car windows is a. Regulation Z b. The New-Car Rule c. The Used-Car Rule d. The Truth in Lending Act 28. The party who buys goods on credit or borrows money is called the a. Secured party b. Creditor c. Debtor d. Loanee

NYS FBLA 2009 BUSINESS LAW 29. A frequently used restrictive endorsement is a. For deposit only b. Pay to the order of c. Pay to the order ofwithout recourse d. Pay to bearer 30. Caveat venditor means a. Let the buyer beware b. Let the seller beware c. Let privity stand d. Vindicate the seller 31. Standard-form, written contracts prepared by the seller for the buyer to sign are called a. Adjudicatory contracts b. Adhesion contracts c. Executory contracts d. Cohesive contracts 32. A substitution of one contract for another is a. Substantial performance b. Tender of performance c. Satisfactory performance d. Accord and satisfaction 33. Damages agreed upon by the parties when they first enter into a contract are called a. Actual damages b. Incidental damages c. Anticipatory damages d. Liquidated damages 34. The oldest legal test of insanity is the a. Miranda Test b. American Law Institute Test c. MNaghten Rule d. Entrapment Rule 35. Third parties are entitled to notice of an agencys a. Liability b. Termination c. Estoppel d. Indemnification

NYS FBLA 2009 BUSINESS LAW

36. Social security benefits provided to persons who are unable to work due to illness or injury are known as a. Retirement benefits b. Survivors benefits c. Disability benefits d. Medicare benefits 37. At the bottom level of the federal court system are the federal a. Small claims courts b. District courts c. Municipal courts d. Appellate courts 38. A partnership that is formed simply by the way two or more people conduct their business is called a. Partnership by estoppel b. Partnership by proof of existence c. Apparent partnership d. Limited partnership 39. The person awarded charge and control of minor children is called the a. Guardian parent b. Legal parent c. Custodial parent d. Permanent parent 40. Charge accounts are examples of a. Usury b. Open-end credit c. Secured loans d. Closed-end credit 41. A full endorsement is also known as a a. Qualified endorsement b. Restrictive endorsement c. Blank endorsement d. Special endorsement 42. One corporations purchase of substantially all property belonging to another corporation is a(n) a. Consolidation b. Asset acquisition c. Stock acquisition d. Merger

NYS FBLA 2009 BUSINESS LAW 43. Most partnership law is set forth in the a. Articles of Partnership b. Uniform Commercial Code c. Uniform Partnership Act d. Tenancy in Partnership 44. A check that is more than six months old is a a. Void check b. Stale check c. Voidable check d. Bad check 45. If the suspect pleads guilty, the judge may impose sentence during the a. Interrogation b. Arraignment c. Indictment d. Adjudicatory hearing 46. A contract that at first appears to bind both parties, but really binds no one is a. Unconscionable b. Illusory c. Gratuitous d. Promissory esroppel 47. When a partnership ends, the firms assets are first paid to a. Partners who lent money to the firm b. Partners who put money into the firm c. Surplus due partners d. Creditors other than partners 48. A banks written acknowledgement of receipt of money and its promise to repay that money on the due date is a a. Certificate of deposit b. Secured interest c. Time draft d. Security agreement 49. Insurance that pays for damage for some type of impact to the insureds own car is a. Property damage liability insurance b. Comprehensive insurance c. Collision insurance d. Uninsured

NYS FBLA 2009 BUSINESS LAW

50. Negotiation is transfer of an instrument in such a way that the transferee becomes a a. Holder b. Indorser c. Payee d. Drawee 51. If a valid offer is met with a valid acceptance, the result is a. Misrepresentation b. Genuine agreement c. Legality d. Capacity 52. Preferred status is given to a(n) a. Holder b. Holder in due course c. Indorser d. Drawer 53. An endorsement that limits the liability of the indorser is a a. Qualified endorsement b. Restrictive endorsement c. Blank endorsement d. Special endorsement 54. Persons related by blood are said to be related by a. Affinity b. Bigamy c. Common law d. Consanguinity 55. The party who presents a negotiable instrument is entitled to have the instrument a. Signed b. Indorsed c. Negotiated d. Paid 56. Patents, copyrights, and trademarks refer to a. Tangible personal property b. Intangible personal property c. Bailments d. Intellectual property

NYS FBLA 2009 BUSINESS LAW 57. The person the agent deals with on behalf of the principal is called the a. Coagent b. Proprietor c. Servant d. Third party 58. The property pledged by the debtor as security for the debt is the a. Surety b. Credit c. Interest d. Collateral 59. Vicarious liability is based on the principal of a. Apparent authority b. Negligible duty c. Respondent superior d. Scope of employer

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60. A written notice filed by creditors in a public office that a security interest exists is a a. Security agreement b. Financing statement c. Secured loan d. Disclosure statement 61. Most contracts end by a. Agreement b. Performance c. Operation of law d. Impossibility of performance 62. Mutual mistake is also known as a. Unilateral mistake b. Bilateral mistake c. Material mistake d. Intentional mistake 63. Closed shops were made illegal by the a. Wagner Act b. Taft-Hartley Act c. Landrum-Griffin Act d. Fair Labor Standards Act

NYS FBLA 2009 BUSINESS LAW 64. An occasional or casual seller is a a. Nonmerchant b. Merchant c. Shipper d. Nonshipper 65. Property found in a public place that would indicate it was simply forgotten is considered a. Misplaced b. Lost c. Pledged d. Gratuitous 66. When the law creates an agency relationship by circumstance, it is called a. Special agency b. General agency c. Agency by estoppel d. Would-be agency 67. Goods that presently exist and are the subject matter of a particular contract are a. Specific goods b. Real goods c. Tangible goods d. Identified goods 68. Average fuel economy standards were established by the a. Uniform Commercial Code b. Environmental Protection Agency c. Financial responsibility laws d. Motor Vehicle Information and Cost Savings Act 69. A draft that is not payable until the lapse of the particular period stated on the draft is a(n) a. Trade acceptance b. Sight draft c. Accepted draft d. Time draft 70. A low down payment and smaller monthly payments are advantages of a. Buying b. Financing c. Leasing d. Loaning

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NYS FBLA 2009 BUSINESS LAW 71. A person who dies without making a will is said to have died a. In dower b. In curtesy c. Intestate d. In codicil 72. A receipt given by a carrier to a shipper for shipment of goods is known as a. Warehouse receipt b. Delivery tender c. Bill of lading d. Document of title 73. Goods must be fit for ordinary purposes under the implied warranty of a. Merchantability b. Title c. Fitness for a particular purpose d. Privity 74. To be effective, an offer must be communicated to the a. Attorney b. Offeree c. Lendor d. Offeror

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75. A food and drug containing an ingredient that reduces its standard quality is said to be a. Misbranded b. Adulterated c. Fraudulent d. Impure 76. A principal who makes his or her agents job difficult or impossible has breached the duty of a. Reimbursement b. Authority c. Cooperation d. Obedience 77. An individual who owns part of a corporation is called a(n) a. Partner b. Proprietorship c. Shareholder d. Director

NYS FBLA 2009 BUSINESS LAW 78. All corporations issue a. Preferred stock b. Par value stock c. Common stock d. No-par value stock 79. The real power a principal gives to an agent to act in his or her behalf is called a. Good faith b. Apparent authority c. Judgment and skill d. Actual authority 80. A fact that is important to one of the parties to a contract is a(n) a. Material fact b. Unilateral fact c. Crucial fact d. Concealed fact 81. A contract that is not yet fulfilled is a. Voidable b. Executory c. Exemplary d. Conditional 82. A mortgage with a fixed interest rate and increasing monthly payments is a a. Fixed rate mortgage b. Balloon mortgage c. Graduated-payment mortgage d. Variable-rate mortgage 83. The person who is ordered to pay money for a draft is a a. Payee b. Maker c. Drawee d. Drawer 84. A declaration by a court that a marriage was never effective is a(n) a. Divorce b. Separation c. Annulment d. Limited divorce

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NYS FBLA 2009 BUSINESS LAW 85. Wrongful acts of one of the parties may discharge a contract by a. The Wrongful Act Statute b. The Statute of Limitations c. Operation of law d. Mutual release 86. The age of majority in most states is a. 16 b. 18 c. 20 d. 21 87. Another name for Sunday statutes is a. Blue laws b. Red laws c. Day of rest laws d. Holiday statutes

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88. The written instrument by which the borrower pledges real property to the lender as security for a loan is the a. General warranty deed b. Purchase and sale agreement c. Lease d. Mortgage 89. A false statement made orally to a third party is a. Slander b. Defamation c. Breach of duty d. Libel 90. An agent who suffers a loss as a result of a principals instructions is entitled to a. Indemnification b. Compensation c. Cooperation d. Remunerations 91. The U.S. Supreme Court decides which cases it will hear by a vote of its a. 7 justices b. 9 justices c. 11 justices d. 13 justices

NYS FBLA 2009 BUSINESS LAW 92. Mutual mistake is also known as a. Unilateral mistake b. Bilateral mistake c. Material mistake d. Intentional mistake 93. If a mentally impaired person is declared insane and a guardian appointed, the mentally impaired persons contracts are a. Voidable b. Void c. Binding d. Ratified 94. The wrongful failure to perform a promise set forth in a contract is a. Perjury b. Voidance of contract c. Breach of contract d. Misrepresentation 95. A corporation organized for the purpose of making money is a(n) a. Stock corporation b. Profit corporation c. Public corporation d. Nonprofit corporation 96. Threats of a business nature that cause a person to enter into a contract without real consent would qualify as a. Undue influence b. Duress c. Economic duress d. Fraud 97. Goods that presently exist and are the subject matter of a particular contract are a. Specified goods b. Real goods c. Tangible goods d. Identified goods 98. To qualify under a new-car lemon law, a car must be no older than a. Six months b. Nine months c. One year d. Two years

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NYS FBLA 2009 BUSINESS LAW

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99. Unless a specific time for shipment of mail-order goods is stated, the goods must ship within a. Three days b. Three months c. Three hours d. Thirty days 100. The law requiring that written express warranties on products costing more than $10 meet certain requirements is the a. Parol evidence rule b. Right of Warranty Law c. Nader-Clayton Warranty Act d. Magnuson-Moss Warranty Act

NYS FBLA 2009 BUSINESS LAW ANSWER KEY 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. A C B B A B B C B C A B D C A D B A C B B A D A C 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. A C C A B B D D C B C B B C B D B C B B B C A C A 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75. B B A D D D D D C B B A B A A C D D D C C C A B B 76. 77. 78. 79. 80. 81. 82. 83. 84. 85. 86. 87. 88. 89. 90. 91. 92. 93. 94. 95. 96. 97. 98. 99. 100. C C C D A B C C C C B A D A A B B B C B C D C D D

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