Test on Foundations of Business Law
Foundations of Business Law: Essential Concepts for Students
Test: Torts and Contract Law
20 questions
Question 1: A contract is a legally binding agreement between two or more parties that creates rights and obligations enforceable by law.
A. Ano
B. Ne
Explanation: A contract is defined as a legally binding agreement between two or more parties that creates rights and obligations enforceable by law.
Question 2: A Letter of Credit is listed as one of the main types of negotiable instruments.
A. Ano
B. Ne
Explanation: The study materials list Check, Promissory Note, and Bill of Exchange as the main types of negotiable instruments, but do not mention a Letter of Credit.
Question 3: Marketing defect is one of the three types of product defects.
A. Ano
B. Ne
Explanation: The three types of product defects mentioned in the study materials are manufacturing defect, design defect, and failure to warn. Marketing defect is not listed as a type of product defect.
Question 4: Nuisance is an act that interferes with another person’s use or enjoyment of property.
A. Ano
B. Ne
Explanation: Nuisance is defined as an act that interferes with another person’s use or enjoyment of property.
Question 5: A breach of contract occurs only when both parties involved fail to fulfill their obligations.
A. Ano
B. Ne
Explanation: A breach of contract occurs when one party fails to fulfill its obligations.