Unit 3 of 5
Study guide for CLEP CLEP Introductory Business Law — Unit 3: Sales & Torts. Practice questions, key concepts, and exam tips.
63
Practice Questions
10
Flashcards
4
Key Topics
Try these 5 questions from this unit. Sign up for full access to all 63.
A company's policy of only hiring employees who agree to resolve disputes through arbitration, rather than through the court system, is an example of which of the following concepts?
Freedom of Speech
Due Process
Alternative Dispute Resolution
Selective Incorporation
Mandatory Mediation
Answer: C — This question tests the student's understanding of alternative dispute resolution methods, which is a key concept in business law.
A seller's statement about a product's quality is
Always a warranty
Always an opinion
A warranty if in writing
An opinion if made by a salesperson
A warranty if relied upon by the buyer
Answer: E — A warranty if relied upon by the buyer is correct because a seller's statement can be a warranty if relied upon by the buyer.
What is the term for a false statement of fact made to induce someone into a contract?
Misrepresentation
Fraud
Duress
Undue influence
Mistake
Answer: A — Misrepresentation is correct because misrepresentation is a false statement of fact made to induce someone into a contract.
Under the UCC, a seller's implied warranty of merchantability means the goods must be
Fit for a particular purpose
Of average quality
Suitable for ordinary use
Identical to the sample
Available for return
Answer: C — Suitable for ordinary use is correct because the UCC implies a warranty of merchantability, meaning goods are suitable for ordinary use.
A company is being sued for negligence, and the court must determine whether the company's actions met the standard of care expected of a reasonable person. Which of the following is the primary factor in determining this standard?
The industry's standard practices
The company's internal policies
The level of harm caused to the plaintiff
The intent of the company's actions
The judge's personal opinion
Answer: A — The standard of care is typically determined by the industry's standard practices, which are considered reasonable under the circumstances.
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