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Law Studies (Ch. 23-26)

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

A contract between two parties for illegal activities is not valid.

a)

True

b)

False

2.

Which of the following is a contract?

a)

Betty offers to give a book to Lou. Lou accepts.

b)

Betty offers Lou the book in exchange for Lou’s promise to pay twenty-five dollars. Lou accepts.

c)

Betty offers to give Lou the book if Lou promises to pick it up at Betty’s house. Lou agrees.

d)

None of the above

3.

A written or oral agreement between 2 parties.

a)

Memo

b)

Invoice

c)

Contract

d)

Requisition

4.

What is the first element of a contract?

a)

Consideration

b)

Acceptance

c)

Capacity

d)

Offer

5.

A verbal agreement made out loud during conversation. Most difficult type of contract to enforce.

a)

Oral

b)

Implied

c)

Express

d)

Analytical

6.

In this type of contract, the details are assumed.

a)

Oral

b)

Written

c)

Implied

d)

Express

7.

When one or both parties fail to perform their duties in the contract.

a)

Implied

b)

Breach

c)

Implied

d)

Requisition

8.

The amount established by the card issuer as the maximum amount you may borrow to pay for purchases or cash advances. Based on your creditworthiness.

a)

Credit Limit

b)

Over-limit

c)

Balance

d)

Maximum Balance

9.
Which is an example of an implied warranty?
a)
 customer buys a toaster and assumes it will toast bread.
b)
A jacket's hang tag states that the fabric is pure wool. 
c)
A television's label promises a full refund if the set doesn't work.
d)
A salesperson tells a customer, "This is the best quality  you can buy."
10.
Puffing
a)
creates an express warranty.
b)
is making statements of fact about a product.
c)
is illegal under federal law
d)
is making obvious and lawful exaggerations about a product.
11.
A written warranty that covers some defects but not others is
a)
illegal.
b)
limited.
c)
implied.
d)
full.
12.
If a seller sells a new product without a written warranty, there are
a)
no warranties.
b)
limited warranties.
c)
full warranties.
d)
implied warranties.
13.
Tina buys a new set of headphones that comes with no written warranty. When she tries them out at home, the sound is muffled. The warranty that is broken is the
a)
express warranty.
b)
warranty of fitness for a particular purpose.
c)
warranty of title.
d)
warranty of merchantability.
14.
A(n) _____ is an attempt to limit the seller's responsibilities if something goes wrong with a product.
a)
express warranty
b)
strict liability
c)
disclaimer
d)
implied warranty
15.
To make a valid disclaimer of the warranty of merchantability, a seller must
a)
not mention the implied warranty in the written bill of sale.
b)
use a term such as "with all faults."
c)
provide an express written warranty.
d)
none of the above.
16.

What is debt?

a)

Another word for death

b)

Something, typically money, that is owed or due

c)

A loan on which you do not have to pay interest

d)

That which is incurred during childhood and consummated in college

17.

What is an interest rate?

a)

it is your level of interest about a certain topic expressed as a percentage of your total interest

b)

The amount in terms of dollars that you have to pay back on a purchase

c)

it is the rate at which your interest in something expires. The higher the number, the quicker your interest expires

d)

The amount in terms of a rate or percentage that you have to pay back on an amount borrowed

18.

a repayment of a sum of money to someone who has returned a product

a)

rebate

b)

refund

c)

discount

d)

deal

19.
Web sites and magazines that publish the results of product tests and offer ratings for products are good places to ____. 
a)
begin comparison shopping
b)
find coupons and rebate offers
c)
learn about advertising claims 
d)
look for sales
20.
 The act of making unplanned purchases is called _____ buying.
a)
accidental
b)
spontaneous
c)
impromptu
d)
impulse