Practice Test Geeks(CA) Certified Accountant Practice Test
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Business Law Flashcards

7 cards from real CA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Business Law flashcards as text

  1. Under the statute of frauds, which of the following contracts MUST be in writing to be enforceable?

    Answer: A contract for the sale of land

    The statute of frauds requires contracts for the sale of real property to be in writing to be enforceable.

  2. In a secured transaction under UCC Article 9, what is the primary purpose of 'perfection'?

    Answer: To establish the creditor's priority over other claimants

    Perfection makes the security interest effective against third parties and establishes the creditor's priority in the collateral.

  3. Which corporate officer typically has actual authority to bind the corporation in ordinary business transactions?

    Answer: The CEO or President

    A CEO or President has both express and implied actual authority to bind the corporation in the ordinary course of business.

  4. A seller delivers goods that do not conform to the contract. Under the UCC 'perfect tender rule,' the buyer may:

    Answer: Accept all, reject all, or accept any commercial unit and reject the rest

    Under UCC §2-601, if goods fail to conform in any respect, the buyer may accept, reject all, or accept any commercial unit and reject the rest.

  5. Which of the following is a characteristic unique to a limited partnership compared to a general partnership?

    Answer: Limited partners have no liability beyond their investment

    In a limited partnership, limited partners' liability is capped at their investment, unlike general partners who have unlimited personal liability.

  6. An employee without a written contract is typically considered to be employed under which doctrine?

    Answer: At-will employment

    Most U.S. employees without a written contract are employed at-will, meaning either party can terminate the relationship at any time for any lawful reason.

  7. Which federal law prohibits employers from discriminating against employees based on race, color, religion, sex, or national origin?

    Answer: Title VII of the Civil Rights Act of 1964

    Title VII of the Civil Rights Act of 1964 is the primary federal statute prohibiting employment discrimination based on protected characteristics.