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?
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
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?
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
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?
Answer: A — The standard of care is typically determined by the industry's standard practices, which are considered reasonable under the circumstances.
CLEP® is a trademark registered by the College Board, which is not affiliated with, and does not endorse, this product.