Accounting_215_Final_Exam

Accounting_215_Final_Exam - Final Exam Section B 100 points...

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Final Exam Section B 100 points L. Curtis TRUE/FALSE: True - a; False - b 1. As a general rule, the finder of lost property automatically becomes the rightful owner, whereas the owner of the premises where the property is discovered automatically becomes the owner of mislaid property. 2. A retention by the donor of even partial control over the item claimed to have been given usually prevents the gift from being effective. 3. The viewpoint of the third party with whom the agent deals is more important than the viewpoint of the agent in determining whether apparent authority existed. 4. Contracts that are made by an agent that is a minor are voidable. 5. The principal-agent relationship is a fiduciary one, which requires that each be entirely open with the other and not keep any information from the other that has any bearing on their arrangement. 6. R and S contracted for the sale of a cow by R to S. Both thought the cow was with calf. It turned out later that the cow was not pregnant. Either R or S can disaffirm the contract on the ground of mistake. 7. F wrote a check to G as a gift. F asks his bank not to pay the check, contending that there is no contract because G gave no consideration for the check. F is right. 8. An executory contract is a contract that has been completely performed. 9. Under the UCC, an oral sales contract (calling for the sale of goods having a value of $500 or more) is valid—despite the fact it is not in writing—if, after the contract is made, the seller delivers the goods and the buyer accepts them. 10. In May of 1978 H and J enter into an oral contract of employment, under the terms of which J is to perform certain tasks during the months of July and August of 1979. Because J's actual performance is only going to take two months, this contract does not have to be in writing. 11. The act of ratification does not bind the principal as though the act had been previously authorized. 12. If an assignment materially alters the duties of the obligor, the obligor still must complete the contract. 13. If a contract is required by the Statute of Frauds to be in writing, as a general rule it is valid and enforceable (when in writing) even if it possesses a defect (such as lack of consideration or reality of consent) that would otherwise cause it to be invalid. 14. In general, risk-shifting and risk-creating contracts are both illegal. 15. X orally agrees to work for Y "as long as I shall live" for a specified monthly salary. Two years later X quits his job without legal excuse, and Y seeks damages for breach of contract. If X's defense is "the Statute of Frauds," the defense is not good for the reason that X could have died within a year after making the contract. (i.e., X is liable to Y). 16. The "parol evidence rule" applies only to those written contracts which fall within the Statute of Frauds
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This note was uploaded on 02/12/2011 for the course ACCT 215 taught by Professor Curtis during the Spring '08 term at Iowa State.

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Accounting_215_Final_Exam - Final Exam Section B 100 points...

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