DSST Business Law II Exam
If you are pursuing a business degree, there are certain courses you must take. Upper-level Business Law is one of these courses. But what if you already understand the legal issues of entrustment, bankruptcy, real estate law, and so on? If this describes you, the DSST Business Law II exam might be an exciting option.
DSST is a prior learning assessment program that awards college credit for what students have already mastered through work experience or independent study. This means that with DSST you can essentially test out of a course and receive credit for it at the same time. Although thousands of colleges and universities across the United States recognize DSST for credit, you should always check with your own college before registering for the DSST exam.
The DSST Business Law II exam counts for three semester hours of upper-level credit if you pass the exam. It covers these five topics:
- Sales of Goods
- Debtor and Creditor Relations
- Business Organizations
- Commercial Paper.
You should check out a DSST Business Law II exam study guide, which will provide a detailed exam outline, practice questions, and a list of helpful reference books. It may be helpful to cross reference the exam outline from the study guide with the tables of contents of reference books, and study anything that overlaps.
DSST Business Law II Practice Questions
1. Alexander Klein has a small company that builds automobile parts. He is the company’s only owner and has one employee. He wants to create a formal business entity for the organization to protect himself from liability, but does not want to appoint a board of directors. What is the best business structure for Alexander?
A. A sole proprietorship
B. A partnership
C. An LLC
D. An LLP
E. A corporation
2. Sue Smith signs a contract promising to give her son $200. The sole stipulation in the contract is that Ms. Smith will deliver the money on December 1. Ms. Smith fails to pay her son the $200. Can he sue her for breach of contract?
A. Yes, because Ms. Smith signed the contract and it was valid and enforceable
B. Yes, because the contract had a firm explanation of the terms, including the amount to be paid and the date to be paid
C. No, because there is no proof Ms. Smith read the contract before she signed it
D. No, because the contract is lacking consideration
3. Joseph, who has a fee simple absolute ownership stake in Blackacre, grants Caroline a life estate. Caroline names Michael and Stacy as Blackacre’s tenants in common in her will. Stacy then passes away, leaving her entire estate to Susan. Upon Caroline’s death, who owns Blackacre?
E. Michael and Susan
4. Clark works for Widget Makers Incorporated as a delivery person. In the course of delivering a package, Clark hits Mary with the truck he is driving and Mary sustains serious injuries. Can Mary sue Widget Makers Incorporated for damages?
A. No, because Mary was hit by Clark, not by Widget Makers
B. No, because Widget Makers Incorporated is a corporation and thus immune from personal liability
C. Yes, because Clark was acting as an agent for Widget Makers Incorporated
D. Yes, because Clark is insolvent and Mary will otherwise be unable to collect damages
5. Thousands of customers purchased toasters from Mr. Toast Company, but unfortunately the toasters did not toast at all. The toasters contained no warranty. They didn’t cause any injury or other damages, they simply did not function. Is there a potential cause of action for those who bought the non-functioning toasters?
A. Yes, because of the implied warranty of merchantability
B. Yes, because of the implied warranty of fitness
C. Yes, because of the implied warranty of title
D. No, because the toaster did not contain a warranty or cause damages
6. Kelly and Kara own property as joint tenants with right of survivorship. Kelly wills her share in the estate to Jim when she dies. Kara wills her share in the estate to Matt. Kelly dies in January 2011 and Kara dies in February 2012. Who owns the property after Kelly and Kara’s deaths?
A. Jim with a fee simple absolute
B. Matt with a fee simple absolute
C. Jim and Matt as joint tenants with right of survivorship
D. Jim and Matt as tenants in common
7. Jesse’s Cafe made an oral agreement with Lou’s Deli that they would deliver 100 sandwiches to the Deli every day for three years at a price of $2 per sandwich. Jesse’s Cafe never delivered a single sandwich and Lou’s Deli lost a lucrative catering contract. Does Lou’s Deli have a cause of action for breach of contract?
A. Yes, because Jesse’s Cafe breached the contract when they failed to deliver the sandwiches
B. Yes, because Lou’s Deli incurred actual damages when they relied on the contract
C. No, because the contract is not a valid contract due to the statute of frauds
D. No, because there was no consideration
8. Becky owns property, which her brother Fred helps her to repair. In exchange for his help, Becky wants to grant Fred an ownership interest in the property. She transfers the interest, stipulating that she and Fred will own the property as joint tenants with rights of survivorship, but that Fred will not be able to live on or have possession of the property until she dies. What is the state of ownership of the property?
A. Becky and Fred own the property in fee simple absolute as joint tenants with rights of survivorship
B. Becky has a life estate and Fred has a fee simple absolute
C. Becky and Fred own the property as tenants in common
D. Becky and Fred own the property as joint tenants with right of survivorship, but Becky has a life estate while Fred has a fee simple absolute
9. Tim and Tina own a company as equal partners. Tina embezzles money from customers and disappears. Can Tim be sued by the customers for the funds Tina stole?
A. Only if Tim was complicit in the theft
B. No. Tim cannot be sued, but the partnership can be
C. Only if Tina cannot be found
D. Yes, Tim is jointly and severally liable for Tina’s actions
10. Marissa and Susan both sign a contract in which Marissa agrees to sell Susan a boat for $600. The contract also stipulates that Marissa will include a towing hitch for the boat. Marissa delivers the boat and Susan pays the $600. Marissa refuses to deliver the towing hitch, claiming that they had only discussed the sale of the boat and that she hadn’t read the contract with its provision about the towing hitch before signing. Did Marissa breach the contract?
A. Yes, because she failed to deliver the towing hitch when promised
B. No, because she did not read the contract and understood that she was selling only the boat
C. No, because she delivered the boat which was the primary form of consideration in the contract
D. No, because there was no consideration for Marissa’s delivery of the towing hitch