ACCT 3350 Business Law Final Exam Review Q & A 2026 (Complete And Verified Study material) (23pages) LEARNEXAMS

1. A company has been sued for breach of contract. Which of the following defenses is least likely to be successful? A) The contract was not in writing. B) The contract was signed under duress. C) The terms of the contract were not clear. D) The contract is void due to illegality. Answer: A Rationale: The Statute of Frauds requires certain contracts to be in writing, but it does not apply to all contracts. Therefore, a contract may still be enforceable even if not in writing, making this defense the least likely to succeed. 2. In the context of agency law, which duty requires the agent to act in the best interests of the principal? A) Duty of Care B) Duty of Loyalty C) Duty of Obedience D) Duty of Disclosure Answer: B Rationale: The Duty of Loyalty mandates that an agent must act solely for the benefit of the principal and not in their own interest or the interest of a third party. 3. Which of the following is not considered a negotiable instrument? A) Promissory note B) Certificate of deposit C) Insurance policy D) Check Answer: C Rationale: An insurance policy is not a negotiable instrument as it does not promise to pay a specific amount of money to the bearer or to order. 4. Under the Uniform Commercial Code (UCC), which term describes goods that are specifically identified at the time the contract is made? A) Existing goods B) Future goods C) Identified goods D) Unidentified good