CA Business Law 3

Question 1

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

Accepted Answer

A contract for the sale of land

Answer

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

Question 2

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

Accepted Answer

To establish the creditor's priority over other claimants

Answer

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

Question 3

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

Accepted Answer

The CEO or President

Answer

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

Question 4

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

Accepted Answer

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

Answer

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.

Question 5

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

Accepted Answer

Limited partners have no liability beyond their investment

Answer

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

(CA) Certified Accountant Practice Test