Business and Personal Law

Chapter 7: Consumer Law and Contracts

Online Practice Tests

1
As long as the price of a product is less than $500,
A)any means available to accept the offer is considered reasonable.
B)the UCC rules do not apply.
C)a written contract is necessary in order for the contract to be enforceable.
D)an oral contract for the sale of goods is enforceable.
2
The law of sales is now part of the
A)Uniform Commercial Code (UCC).
B)Statute of Frauds.
C)dominant element doctrine.
D)Federal Trade Commission (FTC).
3
In a shipment contract, the seller
A)has title to future goods.
B)assumes the responsibility for loss or damage to goods.
C)is responsible for seeing that the goods get to their destination.
D)is not responsible for seeing that the goods get to their destination.
4
Bait and switch advertising is illegal because
A)the advertiser is trying to sell a different product than the one advertised.
B)the advertiser is trying to sell you something over the phone that you cannot see.
C)it violates the cooling-off rule.
D)it violates the negative option rule.
5
Consumer protection laws do not protect you if you purchase
A)a product considered dangerous.
B)goods online.
C)goods from out of state.
D)goods from another consumer.
6
The cooling-off rule gives you
A)the ability to cancel a contract for most purchases made in the seller's regular place of business.
B)protection from abusive telemarketers who try and sell you product over the phone.
C)three business days to cancel contracts for most purchases made away from the seller's regular place of business.
D)one month to cancel contracts for most purchases made away from the seller's regular place of business.
7
The warranty of merchantability is beneficial because
A)it supersedes any other warranty offered.
B)the merchant warrants that the goods being sold are merchantable.
C)it applies to every sale that occurs in the United States.
D)a private party warrants that the goods being sold are merchantable.
8
A bill of sale is
A)the right of ownerships to goods.
B)formal evidence of ownership.
C)a legal interest in the protection of the property.
D)a merchant's written promise to hold an offer open until the sale is made.
9
The Better Business Bureau is a
A)public agency that hears consumer complaints at the state and local level.
B)public agency that hears consumer complaints at the federal level.
C)private agency that hears consumer complaints at the local and state level.
D)private agency that hears consumer complaints at the federal level.
10
The maximum amount of time for the statute of limitations for sales contracts is
A)one year.
B)two years.
C)three years.
D)four years.
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