 |
| 1 | |
To enforce a warehouse's lien against a merchant who stored the goods in the course of business, the warehouse _____. |
| | A) | must give notice to all persons known to claim an interest in the goods |
| | B) | must advertise the pending sale in a local newspaper and give notice to all persons known to claim an interest in the goods |
| | C) | must only give notice to the merchant who stored the goods |
| | D) | need not give any notice |
|
|
|
| 2 | |
For travel wholly within the United States, the maximum liability of an aircraft for lost luggage is _____ per passenger. |
| | A) | $1,000 |
| | B) | $1,500 |
| | C) | $2,500 |
| | D) | $3,000 |
|
|
|
| 3 | |
If a common carrier is not paid the shipping charges due, the carrier may _____. |
| | A) | sue for compensatory and punitive damages |
| | B) | sell the goods at public sale |
| | C) | sell the goods at private sale |
| | D) | transfer title of the goods to the Interstate Commerce Commission |
|
|
|
| 4 | |
Motor Transport Co., a common carrier, hauls cars and trucks. Maggie wants Motor to transport her car and her household furniture. Motor _____. |
| | A) | may refuse Maggie's entire shipment |
| | B) | must accept Maggie's entire shipment |
| | C) | may refuse to transport the car |
| | D) | may refuse to transport the furniture |
|
|
|
| 5 | |
Happy Hotel has a fire caused by a guest burning candles in her room. Regarding damages to other guest's property, Happy Hotel _____. |
| | A) | is not liable as an insurer |
| | B) | is liable as an insurer |
| | C) | is not liable as an insurer but must have posted a sign in all rooms prohibiting burning candles |
| | D) | is liable as an insurer unless this event were unforeseen |
|
|
|
| 6 | |
Jackson rents a lawnmower from Rental Inc. and for the first time uses the lawnmower to grind sandstone rock into sand. Rental's contract said the lawnmower was to be used to cut grass but did not permit this use. If the lawnmower is damaged, Jackson _____. |
| | A) | is not liable since Jackson had not done this before |
| | B) | is liable |
| | C) | is only liable if Rental can prove that Jackson knew that damage would result |
| | D) | is not liable since this use was not prohibited |
|
|
|
| 7 | |
"Reasonable care" is the degree of care that a _____ person would use under the same circumstances and conditions. |
| | A) | ordinary |
| | B) | careful |
| | C) | reasonable educated |
| | D) | reasonably prudent |
|
|
|
| 8 | |
Venus rents a car from ABC Rental Inc. and a tire blows out while the car is being driven 45 miles per hour in a 20 mile per hour school zone. Who is legally responsible for the blow out? |
| | A) | Venus |
| | B) | ABC Rental |
| | C) | Both Venus and ABC Rental |
| | D) | Neither Venus nor ABC Rental |
|
|
|
| 9 | |
Conversion is a _____. |
| | A) | tort |
| | B) | breach of contract |
| | C) | theft |
| | D) | transformation of the property into something else |
|
|
|
| 10 | |
Chin rents a Blunderbuss car from Acme Enterprise to drive Annie to a family reunion. What party is the bailee? |
| | A) | Annie |
| | B) | Acme Enterprise |
| | C) | Blunderbuss |
| | D) | Chin |
|
|
.