1350 BUSINESS LAW & ETHICS 9.

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Subject: Law
Due on: 12/15/2017
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BUSINESS LAW & ETHICS

• Question 1

Which of the following statements (if later established as untrue) would constitute a misrepresentation defense to contract formation?

a. "You are going to love this house as we have."

b. "This farm's well is adequate for household, ranch, and crop needs."

c. "The school system here is very fine."

d. "Our buyers are the happiest customers around."

• Question 2

Force majeure clauses:

a. are liquidated damages clauses.

b. are void.

c. serve to shift the risk of unforeseen events.

d. none of the above

ANSWER: c

• Question 3

Which is a requirement for an express warranty?

a. use of the word "warrant" or "guarantee"

b. a description or promise of performance

c. written statement

d. must be made by a merchant

• Question 4

The UCC warranty of merchantability:

a. does not cover sales of food in restaurants.

b. can be disclaimed by using the term "as is."

c. is made in every sale of goods.

d. none of the above

• Question 5

Which of the following is not regulated by the FTC?

a. content accuracy

b. celebrity endorsements

c. performance claims

d. express warranties

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1350 BUSINESS LAW & ETHICS 9.

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