Business Law 245 Final
8) Which of the following is an independent agency?
B. The Consumer Product Safety Commission
841-842) Which of the following is a corporation that, with minor errors, has substantially met the requirements of the state incorporation statute?
A. A de jure corporation A de jure corporation (literally, "a corporation from law," or a lawful corporation) has met the substantial elements of the incorporation process. Courts usually hold that corporations that make minor errors in the incorporation process still enjoy de jure corporate status. 125.
803) When the articles of partnership do not address the matter, which of the following is true regarding a partner's right to sell a partnership interest to a creditor?
A. A partner can sell his or her interest in a partnership to a creditor. 113.
820) Which of the following is not a reason for full dissolution of a partnership in Spain?
A. A partner fails to comply with provisions of the contract. In Spain, full dissolution is permitted in the following four situations: (1) One partner dies, (2) a partner is declared insane and unfit to manage the business, (3) a partner is declared bankrupt, and (4) a partner requests that the partnership be terminated.
194) Which of the following would constitute the privacy tort of false light?
A. Attributing characteristics or beliefs to a person that he or she does not possess. False light is closely related to defamation and occurs when publicity about a person creates an impression about that individual that is not valid.
761) If a manager has business transactions in one of the European Union countries and wants to terminate an agency relationship, he or she would want to have access to knowledge about which of the following?
A. Chapter IV of the Agency Relationship Law A U.S. manager conducting business in the European Union needs access to the intricacies of Chapter IV of the Agency Relationship Law that focuses on termination.
11) The type of law involved in comparing laws between the U.S. and Zeno is ____.
A. Comparative law Zach should understand comparative law which studies and compares the laws in different countries.
361) In most cases, when a minor marries, she or he is considered ____.
A. Emancipated In most cases, when a minor marries, she or he is considered emancipated.
333) If the subject matter of an offer is destroyed, the offer _______.
A. Immediately terminates If the subject matter of an offer is destroyed, the offer immediately terminates.
313) In which of the following does a contract arise not from words but from the conduct of the parties?
A. Implied contracts Implied contracts arise not from words but from the conduct of the parties. 49.
782) In China, which of the following is defined as "an organization which possesses civil legal capacity for civil acts and which, according to the law, independently enjoys civil rights and assumes civil obligations"?
A. Legal person The Civil Code of China defines a legal person as "an organization which possesses civil legal capacity for civil acts and which, according to the law, independently enjoys civil rights and assumes civil obligations." 110.
335) What have most states done with regard to unsolicited merchandise received from a seller?
A. Most states have passed laws providing that unsolicited merchandise does not have to be returned and the recipient may keep it as a gift, with no contract being formed. Most states have passed laws providing that unsolicited merchandise does not have to be returned and the recipient may keep it as a gift, with no contract being formed. 54.
795) How many actual people (not persons as defined by the Uniform Partnership Act) are required in order to have a partnership under the Uniform Partnership Act?
A. None A partnership requires "two or more persons." The UPA defines persons as "individuals, partnerships, corporations, and other associations." Therefore, almost any individual or group of people could serve as a partner, but these persons must have the legal capacity to be partners. 112.
859) In a closely held corporation, a breach of the duty of a majority shareholder to act with care and loyalty when selling his or her shares is known as ____.
A. Oppressive conduct The majority shareholder in a closely held corporation has a fiduciary duty to act with care and loyalty when selling the shares. In closely held corporations, a breach of this fiduciary duty is known as oppressive conduct.
155) Which of the following is using fraudulent means to obtain information about someone's phone use?
A. Pretexting According to Exhibit 7-1, pretexting involves using fraudulent means to obtain information about someone's phone use.
852) Which of the following is true regarding how directors are chosen during incorporation?
A. Prior to incorporation, either the incorporators appoint them or the corporate articles name them Because there are no shareholders in the beginning, either the incorporators appoint board members or the corporate articles name them.
216) The ________ standard is a measurement of the way members of society expect an individual to act in a given situation.
A. Reasonable person The reasonable person standard is a measurement of the way members of society expect an individual to act in a given situation.
834) Which of the following is false regarding management of a corporation?
A. Shareholders generally participate in corporate management. Unless the articles of incorporation specify otherwise, shareholders do not participate in corporate management. Instead, they elect a board of directors that, in turn, selects officers to manage the day-to-day business of the corporation. 123.
799) Which of the following is true regarding Sandra's statement that a written agreement is not necessary to set up a partnership?
A. She is correct. An explicit written agreement is not required to create a partnership. 114.
306) Which of the following would describe Beverly's role in the transaction?
A. She was the offeror. The agreement consists of an offer by one party, called the offeror, to enter into a contract and an acceptance of the terms of the offer by the other party, called the offeree. 50.
33) The ethical theory that requires that we evaluate the morality of an action by imagining ourselves in the position of the person facing the ethical dilemma is called ______.
A. Situational ethics Situational ethics requires that we evaluate the morality of an action by imagining ourselves in the position of the person facing the ethical dilemma.
197) What did the court rule in regard to the plaintiff's claim of intentional infliction of emotional distress in Olson v. CenturyLink, the case in the text in which the plaintiff alleged that representatives of the defendant, a provider of telephone services, wrongly failed to process his application, disconnected his telephone service, and hung up on him during telephone conversations?
A. That the conduct complained of by the plaintiff failed to meet the level of conduct required for a finding of the intentional infliction of emotional distress. According to the court, the conduct alleged in the amended complaint did not approach the standard required for a finding of the intentional infliction of emotional distress.
820-821) Which of the following was the result in the case in the text, Jack A. Kahn and Denise W. Kahn v Stewart Mesher and Lieselotte Mesher, the case in which it was claimed that in winding down a partnership, a defending partner wrongfully profited by failing to make appropriate disclosures to other partners regarding an offer to purchase property held by the partnership?
A. That the defending partner breached his fiduciary duty. The court ruled that the defending partner's keeping the offer to himself in order to keep the entire profit was a breach of his fiduciary duty. 120.
35) Which of the following is asserted by the principle of rights?
A. That whether a business decision is ethical depends on how the decision affects the rights of all involved. The principle of rights asserts that whether a business decision is ethical depends on how the decision affects the rights of all involved, a principle that is foundational to Western culture.
@ 175) Which of the following was created specifically to combat white-collar crime? `
A. The Sarbanes-Oxley Act. Sarbanes-Oxley was created specifically to combat white-collar crime.
388) Which of the following is true on appeal regarding the case of Mary W. Scott v. Mid-Carolina Homes Inc., discussed in the "Case Nugget" in which the plaintiff sued to recover damages after a salesperson allegedly mistakenly agreed to sell a mobile home to her for a price that was too low, later told her the mobile home could not be sold because of a bent frame, and then proceeded to sell it for a higher price to other buyers?
A. The court refused to find that the defendant had the right to rescind the contract based on the alleged unilateral mistake. In upholding the award to the plaintiff, the state supreme court explained that a contract may be rescinded for unilateral mistake only when the mistake has been induced by fraud, deceit, misrepresentation, concealment, or imposition of the party opposed to the rescission, without negligence on the part of the party claiming rescission; or when the mistake is accompanied by very strong and extraordinary circumstances that would make it a great wrong to enforce the agreement.
111) What was the result at the federal appellate court level in Trunk v. San Diego, the case in the text involving whether the presence of a cross on federal land near a Korean War memorial violated the First Amendment?
A. The court ruled that the presence of the cross violated the First Amendment. According to the Ninth Circuit, "the prominence of the Cross in the Memorial, leads us to conclude that a reasonable observer would perceive the Memorial as projecting a message of religious endorsement, not simply secular memorialization," and the memorial was therefore found to violate the establishment clause.
756) When an employee commits a tort within the scope of the agency, which of the following is true regarding liability of a principal who controls the employee's behavior?
A. The employer is liable. If an agent is an employee and the principal/employer controls the employee's behavior, the principal can be found liable. 104.
186) Which of the following is true regarding the intent needed for an intentional tort?
A. The intent at issue is not intent to harm but, rather, is intent to engage in a specific act, which ultimately results in an injury, physical or economic, to another. In regard to intentional torts, the element of required intent is not intent to harm but, rather, to engage in a specific act, which ultimately results in an injury, physical or economic, to another.
819) Which of the following is true regarding whether the law firm is liable for purchases made by Wally?
A. The law firm is liable for the purchases because it had not provided notification to the office supply that Wally was no longer authorized to make purchases for the firm. A partner who intends to dissolve or withdraw from the partnership must give the other partners notice of this intent. Once the partnership is dissolved, the partner no longer has actual authority to bind the partnership. However, if the partnership does not notify third parties of the dissolution, the partner can still have implied authority to bind the partnership. 121.
5) The _______ is the supreme law of the land.
A. U.S. Constitution The U.S. Constitution is the supreme law of the land, the foundation for all laws in the United States.
311) Harry and Frank are in agreement that Harry will pay Frank $2,000 for a used car. At what point is there a binding contract?
A. When the agreement is made. As soon as the promises are exchanged, a contract is formed, and the parties' legal obligations arise.
431) Which of the following is an exception to the general rule that rights to a contract cannot be assigned when a contract is personal in nature?
A. When the only part of a contract left to be fulfilled is the payment. Rights to a contract cannot be assigned when the contract is personal in nature. Third parties cannot legally become the recipient in situations in which a contract is personal in nature unless the only part of a contract left to be fulfilled is the payment, because rights to payment can always be assigned. 78.
244) Which of the following do courts focus on when a strict product liability action is involved?
A. Whether the product was in a defective condition and unreasonably dangerous when sold. With strict products liability, courts focus on whether the product was in a "defective condition, unreasonably dangerous" when sold. 45.
781) Which of the following is a relationship between two or more persons or corporations created for a specific business undertaking?
B. A joint venture 109.
387) Why is it important to distinguish between unilateral and mutual mistakes?
B. Because it determines which contracts are voidable. The distinction between unilateral and bilateral contracts is important in determining which contracts are voidable. .
57) The challenge to the juror who said that they could not be fair is referred to as a[n] ________.
B. Challenge for cause If a potential juror's response to a question indicates that she or he may be biased, either attorney may challenge, or ask the court to remove that potential juror "for cause."
484) Which of the following is true regarding Chinese law?
B. China currently has legislation that covers the sale of goods and the provision of services, but no legislation that covers leases. Currently, China has legislation that covers the sale of goods and the supply of services. The country does not, however, have legislation that covers leases. 89.
728) As set forth in the text, which of the following is false regarding agency law in relation to sports agents?
B. Efforts are underway to develop a uniform act addressing regulation of sports agents because none exists at the present time. The specific legislation that regulates the conduct of athlete agents in these 40 states is the Uniform Athlete Agents Act (UAAA).
855) Under the Revised Model Business Corporation Act, how long do proxies last if they are not withdrawn?
B. Eleven months Under Section 7.22(c) of RMBCA, proxies last for 11 months and can be withdrawn at any time unless specifically designed to be irrevocable.
110) What does the establishment clause of the First Amendment provide?
B. Government cannot make a law establishing a religion. The establishment clause maintains that government "shall make no law respecting an establishment of religion."
306) Which of the following describes Rick's role in the transaction?
B. He was the offeree. The agreement consists of an offer by one party, to enter into a contract and an acceptance of the terms of the offer by the other party, called the offeree. 51.
484) Which of the following is true regarding payment and the place for delivery if those terms are left open under the UCC?
B. If payment terms are omitted, payment is due at the time and place at which the buyer is to receive the goods, and the place for delivery is the seller's place of business. Under the UCC, if the terms of payment are left open, payment is due at the time and place at which the buyer is to receive the goods; and if the place for delivery is left open, the place for delivery is the seller's place of business. 91.
743) Which of the following refers to the right of a principal to sue an agent to recover any amount assessed against the principal for a breach of contract caused by the agent's negligence?
B. Indemnification The principal has a right to indemnification; that is, when sued by a third party, a principal may sue his agent to recover the amount assessed to the third party for damages caused by the agent's negligence. 100.
9) The concept of _____ suggests that individuals should have the freedom to disobey a law enacted by people if their conscience goes against the law and they believe the law is wrong.
B. Natural law Under natural law, individuals not only have basic human rights but also the freedom to disobey a law enacted by people if their conscience goes against it and they believe it is wrong.
347) Which of the following occurs when three conditions are met: one party makes a promise knowing the other party will rely on it; the other party does rely on it; the only way to avoid injustice is to enforce the promise?
B. Promissory estoppel Promissory estoppel occurs when three conditions are met: one party makes a promise knowing the other party will rely on it; the other party does rely on the promise; the only way to avoid injustice is to enforce the promise.
105) Which amendment provides that the government cannot infringe on citizens' right to bear arms?
B. Second Exhibit 5-2, "Summary of the Bill of Rights," reflects the protection of the Second Amendment that in light of the need for a well-regulated militia for security, government cannot infringe on citizens' right to bear arms.
554) Which of the following options have most states adopted in regard to warranty rights of third parties?
B. Seller's warranties extend to any reasonable and foreseeable user. In regard to warranty rights of third parties, most states have adopted the position that seller's warranties extend to any reasonable and foreseeable user. 94.
468) Which of the following requires that the breaching party fulfill the terms of the agreement?
B. Specific performance Specific performance is sometimes called specific enforcement. It is an order requiring that the breaching party fulfill the terms of the agreement. 86.
440-441) Alice owned a condominium directly above Sam. Alice failed to take proper care of some plumbing problems, and on several occasions Alice's plumbing problems caused leaking into Sam's apartment resulting in property damage. Both Alice and Sam had signed a condominium association agreement providing that each tenant would pay for any damage caused; that the agreement could be enforced by the management of the association or, in a proper case, by an aggrieved owner; and that adherence to the agreement was required "for the benefit of the Association and any person acquiring or owning an interest in the property." The association itself refused to sue Alice in order to recover damages with which to reimburse Sam. Therefore, Sam sued Alice himself. She claimed that he had no standing to sue. Which of the following is the most likely result of the dispute if the court follows Allan v. Nersesova, the case in the text involving a similar issue?
B. That Sam was an intended beneficiary of the agreement between Alice and the association; that he had standing to sue; and that under the terms of the agreement, the association's failure to act gave him the right to proceed. The appellate court in Allan v. Nersesova ruled that the governing documents made the injured party an intended creditor beneficiary of the contract between the party with plumbing problems and the condominium association thereby granting the injured party the right to bring suit for breach of the agreement when the association failed to do so. 77.
353) Which of the following was the judge's ruling in Jamil Blackmon v. Allen Iverson, the case in the text in which the plaintiff alleged that the defendant, a professional athlete, wrongfully failed to pay him a percentage of proceeds received from using the nickname "The Answer" in merchandising although the defendant agreed to do so after the plaintiff suggested the use of the nickname?
B. That the defendant's promise to pay was past consideration insufficient to create a binding contract. The judge ruled that disclosure of "The Answer" idea had already occurred and was, therefore, past consideration insufficient to create a binding contract.
351) Which of the following was the result on appeal in Thelma Agnes Smith v. David Phillip Riley, the case in the text in which the plaintiff who had lived with the defendant out of wedlock for several years sought after they broke up to enforce two agreements regarding the sale and assignment of property to her?
B. The court ruled in favor of the plaintiff on the basis that a recitation of nominal consideration of $1 along with consideration of love and affection was adequate consideration to support the agreements. According to the court, "the recitals of nominal consideration that are present in both agreements, as well as the consideration of Smith's love and affection, are adequate consideration and will support the conveyances." 58.
477) Which of the following was the result in Eureka Water Company v. Nestle Waters North America Inc., the case in the text involving whether a trade name is considered a good or nongood?
B. The court ruled that a trade name is not a good. The court ruled that a trade name is not a good.
243) The defense that Belinda waited too long after the product was purchased in which to sue is a defense based upon which of the following?
B. The statute of repose. Statutes of repose provide a defense by barring actions arising more than a specified number of years after the product was purchased. 46.
33) Which of the following presents a problem when considering the theory of ethics known as absolutism?
B. The unquestionable nature of the rules in most absolutist repositories seems overly inflexible when applied to different situations.
27) The ______ for ethical behavior seeks consideration of what the world would be like if a decision is copied by everyone else.
B. Universalization test The universalization test for ethical behavior seeks consideration of what the world would be like if a decision is copied by everyone else.
237) Which of the following are considered foreseeable plaintiffs in product liability cases?
B. Users, consumers and bystanders. Foreseeable plaintiffs include users, consumers, and bystanders. 43.
418) When may a court rule find parol evidence admissible to further the court's understanding of an agreement?
B. When a court determines that a written agreement does not represent a complete and final version of the agreement. When court determines that the written agreement does not represent a complete and final version of the agreement, evidence to further the court's understanding may be admissible. The additional evidence is limited to elements missing from the writing but consistent with it. 76.
836) Which of the following is false regarding a nonprofit corporation?
C. A nonprofit corporation may not earn profits. Nonprofit corporations may earn profits, but they do not distribute them to shareholders. 124.
784) In which of the following does the franchise operate under the franchisor's business name and act subject to the franchisor's standards and methods of business operation?
C. Chain-style business operation In a chain-style business operation, such as McDonald's and Burger King, the franchise operates under the franchisor's business name and is required to follow the franchisor's standards and methods of business operation. 111.
346) In a bilateral contract, the consideration for each promise is ____.
D. A return promise In a bilateral contract (a promise for a promise), the consideration for each promise is a return promise.
240) Which of the following is true regarding damages that may be recovered in negligence-based product liability cases if proven?
C. Compensatory damages and punitive damages may be recovered. Damages that are recoverable in negligence-based product liability cases are the same as those in any action based on negligence: compensatory damages and punitive damages. 44.
361) Which of the following occurs when a minor's parents or legal guardians give up their right to exercise legal control over the minor, typically when the minor moves out of the parents' house and begins supporting himself or herself?
C. Emancipation 62.
454) A contractual condition of satisfaction is considered a[n] ______ condition that must be met before the other party's obligation to pay for the performance arises.
C. Express Satisfaction is considered an express condition that must be met before the other party's obligation to pay for the performance arises.
802) Which of the following is correct regarding Matthew's claim to additional compensation based upon the amount of work he was doing?
C. He is incorrect. Unless otherwise agreed, no partner will receive a salary for participation in the business regardless of the amount of time and effort put in.
553) If it is generally accepted in the trade that a certain product is always preassembled, the failure of the seller to deliver the goods in that condition would be a breach of the ____.
C. Implied warranty of trade usage If it is generally accepted in the trade that a certain product is always provided in a certain way, the failure of the seller to deliver the goods in that condition would be a breach of the implied warranty of trade usage. 95.
455) Which of the following occurs when a party unjustifiably fails to substantially perform his or her obligations under the contract?
C. Material breach A material breach occurs when a party unjustifiably fails to substantially perform his or her obligations under the contract. 85.
454-455) If a contract does not clearly specify that the satisfaction is to be personal, the ______ standard applies. A. Express B. Subjective
C. Objective D. Absolute E. Unbiased If a contract does not clearly specify that the satisfaction is to be personal, the objective standard applies.
842) Only the state can challenge a de facto corporation's existence as a corporate entity in a suit called an action of ____.
C. Quo warranto Only the state can challenge a de facto corporation's existence as a corporate entity, in a suit called an action of quo warranto (Latin for "by what right"). 126.
229) Which of the following is liability without fault?
C. Strict liability. Strict liability is liability without fault.
415) What was the result in Stewart Lamle v. Mattel Inc., the case in the text in which the plaintiff claimed that in discussions Mattel agreed to a three-year license agreement to distribute a board game the plaintiff created, and that the agreement was confirmed by Mattel through an email, but that Mattel later wrongfully refused to enter into a written contract and follow through with the deal?
C. That it was up to a jury to decide matters including whether the parties intended to be bound by the oral agreement and whether an email contained the material terms of the oral contract. According to the court, "To prove a contract with Mattel, Lamle must prove the parties objectively intended to be immediately bound by an oral contract on June 11; the June 26 email contains the material terms of that oral contract; and Bucher had actual or apparent authority to sign for Mattel Lamle faces a difficult burden persuading the jury." 75.
407) Which of the following was the result in the Case Nugget in the text involving the dispute between Dr. Ralph M. Aurigemma and New Castle Care, LLC, involving whether an oral agreement entered into on September 4 involving Dr. Aurigemma serving as medical director from October 1 of that year until October 1 of the next year was enforceable?
C. That the contract was not in writing and, therefore, could not be enforced. The court ruled that because the terms of the oral contract were for a time period of more than a year, the oral contract would have had to have been in writing in order to have been valid. The court also pointed out that in Delaware, the state at issue, the partial-performance exception to the statute of frauds does not apply to oral contracts incapable of being performed within a year.
409-410) What did the appellate court rule in the case in the text, Power Entertainment Inc., v. Football League Properties Inc., involving the enforceability of an alleged oral agreement by which the plaintiff assumed a third party's debt owed to the defendant in return for the defendant transferring a licensing agreement to the plaintiff?
C. That the oral agreement fell outside the statute of frauds if the plaintiff satisfied the main purpose doctrine. According to the court, based on the main purpose doctrine, "it is apparent Power Entertainment may be able to show the alleged oral agreement falls outside of the statute of frauds." 73.
191) Which of the following gives immunity to providers of interactive computer services for liability they might otherwise incur on account of material disseminated by them but created by others?
C. The Communications Decency Act of 1996.. One section of the Communications Decency Act of 1996 gives immunity to providers of interactive computer services for liability they might otherwise incur on account of material disseminated by them but created by others.
434) Which of the following states that in the case of multiple assignments of the same right, the first assignee to give notice of assignment to the obligor is the party with rights to the contract?
C. The English rule A minority of states have adopted the English rule, which states that the first assignee to give notice of assignment to the obligor is the party with rights to the contract. 80.
475) Which of the following is true regarding the creation of the Uniform Commercial Code?
C. The Uniform Commercial Code was created by the National Conference of Commissioners on Uniform State Laws and the American Law Institute, but not the U.S. Commercial Consortium. Two important groups of lawyers and law school professors are the National Conference of Commissioners on Uniform State Laws (NCCUSL) and the American Law Institute (ALI), which worked together to create the Uniform Commercial Code (UCC).
773) Which of the following governs partnerships in most states in the absence of an express agreement?
C. The Uniform Partnership Act The Uniform Partnership Act governs partnerships in most states in the absence of an express agreement.
550) Which of the following is true regarding whether Samantha made an implied warranty of merchantability in regard to the blender?
C. There is no implied warranty of merchantability because Samantha was not a merchant in respect to consumer appliances. To invoke the implied warranty of merchantability, the purchaser must have purchased or leased the good from a merchant. 96.
60) Which of the following is true regarding trials in Japan?
C. Trial involves a series of discrete meetings between the parties and the judge. The Japanese legal system has no juries, the discovery process is not as simple as it is in the U.S., and trial is a series of discrete meetings between the parties and the judge.
375) The term ______ refers to the fact that an agreement is so unfair that it is void of conscience.
C. Unconscionable 66.
114) Which of the following is true regarding the Fifth Amendment's protection against self-incrimination?
D. A person does not have to be a witness against himself or herself in a criminal case. The Fifth Amendment protects against self-incrimination, meaning that in a criminal case, the defendant does not have to testify in court as a witness against herself or himself.
336) Which of the following is generally true if no means of communicating an acceptance is specified in an offer?
D. Acceptance may be made by any reasonable means. If no means of communicating the acceptance is specified, any reasonable means is generally acceptable. 55.
815) Which of the following may cause the dissolution of a partnership?
D. An act of the partners, an operation of the law, or an act of the court. The dissolution may occur by an act of the partners, an operation of the law, or an act of the court. 117.
226-227) Why have most states replaced the contributory negligence defense with a comparative negligence theory?
D. Because of situations in which a plaintiff is barred from recovery due to minimal contributory negligence. Because of many situations in which an extremely careless defendant causes a great deal of harm to a plaintiff who is barred from recovery due to minimal contributory negligence, most states have replaced the contributory negligence defense with either pure or modified comparative negligence. 39.
730) A ______ is a written document, created by a principal, expressing his or her wishes for an agent's authority not to be affected by the principal's subsequent incapacity.
D. Durable power of attorney A principal may preemptively enact a durable power of attorney, a written document expressing his or her wishes for an agent's authority not to be affected by the principal's subsequent incapacity.
443) The state of New York does not grant a donee beneficiary the right to enforce a contract unless the promisee is connected to the donee through a ______ relationship.
D. Familial Donee beneficiaries can enforce their rights to most contracts. However, some jurisdictions do not allow donee beneficiaries to enforce their contractual rights in all situations. For example, the state of New York does not grant them the right to enforce a contract unless they have a familial relationship to the promisee. 81.
338-339) Which of the following is true regarding the Uniform Electronic Transactions Act?
D. It seems to create an electronic version of the mailbox rule. The Uniform Electronic Transactions Act seems to create an electronic version of the mailbox rule.
236) Which of the following are commonly used theories of recovery in product liability cases?
D. Negligence, strict product liability, and breach of warranty. There are three commonly used theories of recovery in product liability cases: negligence, strict product liability, and breach of warranty.
186) _____ torts occur when the defendant is careless and acts in a way that subjects other people to an unreasonable risk of harm.
D. Negligent Negligent torts occur when the defendant acts in a way that subjects other people to an unreasonable risk of harm.
186) _____ torts occur when the defendant is careless and acts in a way that subjects other people to an unreasonable risk of harm.
D. Negligent Negligent torts occur when the defendant acts in a way that subjects other people to an unreasonable risk of harm. 27.
193) Which of the following is true regarding the groups generally considered to be public figures for purposes of the public figure privilege to actions for defamation?
D. Politicians and entertainers, but not small business owners, are generally considered to be public figures.
155) Which of the following is an investment swindle in which high profits are promised from fictitious sources and early investors are paid off with funds raised from later investors?
D. Ponzi scheme
227) Under which of the following does the court determine the percentage of the fault of the defendant with the defendant then being liable for that percentage of the plaintiff's damages, with no requirement that the defendant be more than 50% at fault?
D. Pure comparative negligence. According to a pure comparative negligence defense, the court determines the percentage of fault of the defendant, and the defendant is then liable for that percentage of the plaintiff's damages.
865) Which of the following may be redeemed for a certain number of shares at a specified price within a given time period?
D. Stock warrants E. Share grants If preemptive rights exist, all shareholders receive stock warrants, which they can redeem for a certain number of shares at a specified price within a given time period.
485) What did the court in Reilly Foam Corp. v. Rubbermaid Corp. rule in regard to whether a quote is considered an offer under the UCC?
D. That generally quotes are not offers but that some price quotes are sufficiently detailed to be deemed offers. The court ruled that generally, price quotes are not considered offers; however, some price quotes are sufficiently detailed to be deemed offers. 88.
356) Which of the following was the result on appeal in the Case Opener involving the alleged breach of an oral contract based on the plaintiff lawyer loaning a corporate client funds and the client later reneging on a promise, made in gratitude, to give the lawyer 3 percent of the company's stock?
D. That the promise was not enforceable because it was a gift. According to the court, "If there is no expectation of payment by either party when services are rendered, the promise is a mere promise to make a gift and not enforceable. The promise of 3 percent of the stock represented a moral obligation but was legally unenforceable. 57.
399) Which of the following was the result in Orville Arnold and Maxine Arnold v. United Companies and Michael T. Searls, involving the issue of whether an arbitration agreement entered into as part of a consumer loan transaction containing a substantial waiver of the consumer's rights, including access to the courts, while preserving for all practical purposes the lender's right to a judicial forum, is void as a matter of law?
D. The court found that the waiver of the plaintiffs' rights to a judicial forum considered along with the defendants' retention of such rights and other unfair aspects of the agreement required a finding that the arbitration agreement was void. According to the court, the wholesale waiver of the plaintiffs' rights together with the complete preservation of the defendants' rights "is inherently inequitable and unconscionable because in a way it nullifies all the other provisions of the contract."
177) Under the Sarbanes-Oxley Act, which of the following is true regarding the destruction of documents in a federal bankruptcy investigation?
D. The destruction of documents in a federal bankruptcy investigation is a felony with possible sentences of up to 20 years in jail. Under the Sarbanes-Oxley Act, the destruction of documents in a federal bankruptcy investigation is a felony with possible sentences of up to 20 years' imprisonment.
388) Which of the following is true regarding the elements that must be satisfied in order for a mutual mistake to interfere with legal consent?
D. The required elements are: (1) a basic assumption about the subject matter of the contract, (2) an adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement, and (3) a material effect on the agreement. 69.
550) Which of the following is needed in order for the implied warranty of merchantability to be applied?
D. The seller must be a merchant, and either a sale or lease must be involved. To invoke the implied warranty of merchantability, the purchaser must have purchased or leased the good from a merchant.
50) Which of the following is true regarding the court system in the Republic of China (Taiwan)?
E. Responsibility for interpreting the country's constitution falls to the Constitutional Court of the Judicial Yuan. While Taiwan's Supreme Court is the court of last resort for civil and criminal cases, responsibility for interpreting the country's constitution falls to the Constitutional Court of the Judicial Yuan.
185) ________ torts occur when the defendant takes an action that is inherently dangerous and cannot ever be undertaken safely, no matter what precautions the defendant takes.
E. Strict-liability Strict-liability torts occur when the defendant takes an action that is inherently dangerous and cannot ever be undertaken safely, no matter what precautions the defendant takes.
7) Which of the following is true regarding administrative agencies?
E. Administrative agencies exist at the federal, state, and local level. The federal, state, and local governments have dozens of administrative agencies.
368) Which of the following is true regarding an agreement to commit a crime or a tort?
E. An agreement to commit a crime is unenforceable, and an agreement to commit a tort is unenforceable. Any agreement to commit a crime or tort is illegal and unenforceable.
222) Which of the following is true regarding the law of negligence in Germany?
E. Both mental and physical capabilities are taken into account in determining whether a defendant is negligent. German law is concerned with the defendant's ability to foresee, understand, and avoid danger; and both mental and physical capabilities are taken into account in determining liability for negligence.
832) Which of the following is false regarding corporations?
E. Corporations cannot claim rights under the U.S. Constitution. Like natural persons, most corporations have certain rights according to the Bill of Rights. 122.
418) Even if they would normally have to be in writing, if applicable criteria are met, oral contracts for _____ goods are enforceable.
E. Customized Oral contracts for customized goods are enforceable even if they would normally have to be in writing. 74.
203) Which of the following is not a typical type of compensatory damage?
E. Damages to punish the defendant for wrongdoing. Compensatory damages are typically rewarded for pain and suffering, costs of repairing damaged property, medical expenses, and lost wages.
34) Which of the following consists of acting on the basis of the recognition that certain actions are right or wrong, regardless of their consequences?
E. Deontology Deontology consists of acting on the basis of the recognition that certain actions are right or wrong, regardless of their consequences.
547) Which of the following are types of warranties?
E. Express warranties and implied warranties of quality, but not acknowledged title warranties There are three basic categories of warranties: express warranties, implied warranties of title, and implied warranties of quality. 92.
814) Which of the following are the steps in order of the life cycle of a partnership?
E. Formation, performance, dissolution, winding up, termination or continuation. .
757) An employee's significant deviation from the employer's business is often referred to as a _______.
E. Frolic of his own Courts often refer to an employee's substantial departure as a "frolic of his own." 102.
780) The Mexican limited liability company is derived from the model in which of the following countries?
E. Germany Mexico adopted the limited liability company model from Germany. 108.
802) Which of the following is true regarding Barry's claim that he is entitled to compensation for closing down the mortuary?
E. He is entitled to compensation for the work. If a partner dies during the term of the partnership, however, the surviving partners are entitled to compensation for services in closing the partnership's business affairs. 116.
763) Which of the following is false regarding revocation of the authority of an agent and renunciation by an agent?
E. If an agent has breached a fiduciary duty to the principal, the principal can revoke the agent's authority; but the agent may be entitled to damages. If the agent has somehow breached the fiduciary duty to the principal, the principal can revoke the agent's authority without liability. 106.
317) Which of the following is true regarding the type of marriage contract discussed in the text called the muta'a?
E. It is a temporary type of arrangement called a "pleasure marriage" in which the female is paid for sexual intimacy. In Iraq under the muta'a ("contract for a pleasure marriage"), a marriage can last anywhere from an hour to 10 years and is renewable. Under the contract, the male typically receives sexual intimacy, in exchange for which the woman receives money.
744) In non-contractual relationships, which of the following may the agent seek in order to force the principal to perform the contract?
E. None of these When the agency relationship is not contractual or the contract is for personal services, an agent does not have the right to specific performance. The agent may recover for services rendered and/or future damages but may not force the principal to fulfill the specific contractual agreements or even to continue to employ the agent.
454) A contractual condition of satisfaction may be judged by either a[n] ______ or ______ standard.
E. Objective; subjective Satisfaction may be judged according to either a subjective or an objective standard.
392) In China which of the following is true regarding the treatment of fraudulent misrepresentations by outsiders?
E. Outsiders have been fined heavily and refused permission to enter into more agreements with Chinese firms. In China, accusations of outsiders' fraudulent misrepresentation have resulted in heavy fines and even refusals to allow the fraudulent party to enter into any more agreements with Chinese firms.
93) According to the ______ Amendment to the Constitution, all powers that the Constitution neither gives exclusively to the federal government nor takes from the states are reserved for the states.
E. Tenth According to the Tenth Amendment to the Constitution, all powers that the Constitution neither gives exclusively to the federal government nor takes from the states are reserved for the states.
51) Yolanda found a better job and quit Robert's employment. Yolanda, however, wants to sue Robert because she believes that he may have terminated her employment in the future based on age discrimination. At this point, which of the following would be Robert's best defense to a lawsuit filed by Yolanda in the state in which she worked?
E. That the case is moot. A case is moot when there is no point in the court's hearing the case because no judgment can affect the situation between the parties.
730) Which of the following was the result in Penny Garrison et al. v. The Superior Court of Los Angeles, the case in the text in which the plaintiffs sought to sue a residential care facility and avoid the effect of a durable power of attorney by which the decedent's daughter signed agreements to arbitrate disputes involving the facility?
E. That the durable power of attorney was effective and that the agreements to arbitrate would be upheld. According to the court, "Because the durable power of attorney was legal and enforceable, Garrison [the daughter] could not cancel the agreements into which she entered."
336) Which of the following is false regarding how the Japanese tend to view contracts?
E. The Japanese do not desire that any terms be left to be decided later. The Japanese tend to view contracts as ongoing relationships in which parties work with each other to smooth out any problems that arise in performance of the contract. Often suspicious of long, detailed contracts, the Japanese have a distinct preference for short, flexible agreements that leave a number of terms to be decided later. 53.
445) Which of the following was the result in the case in the text Wesley Locke v. Ozark City Board of Education, in which an umpire was injured by an angry parent and sued claiming that he was an intended third-party beneficiary under a contract the defending board of education had with the Alabama High School Athletic Association requiring police protection which was not provided?
E. The case was remanded for trial on the issue of whether adequate police protection was provided in view of the fact that the plaintiff was an intended third-party beneficiary to the contract between the school board and the athletic association. The state supreme court found that the plaintiff was an intended third-party beneficiary and remanded the case to the trial court for a hearing on the issue of whether the board had provided adequate protection at the game. 79.
163) What was the result in the case of U.S. v. Park, the case in which the defendant, the president of a national food-chain corporation, claimed he should not be held liable for allowing food in a warehouse to be exposed to rodent contamination because he had delegated responsibility to subordinates?
E. The court refused to dismiss claims against him because of proof that he had responsibility and authority to prevent the contamination or to correct it and failed to do so. According to the court, "[I]t is clear that the Government established a prima facie case when it introduced evidence sufficient to warrant a finding by the trier of the facts that the defendant had, by reason of his position in the corporation, responsibility and authority either to prevent in the first instance, or promptly to correct, the violation complained of, and that he failed to do so."
863) How much must a shareholder who signs a stock subscription pay for no-par shares?
E. The fair market value of the shares For no-par shares, or shares without a par value, the shareholder must pay the fair market value. 130.
754) Which of the following is true regarding liability of a principal if a contract an agent makes with a third party expressly excludes the principal from the contract?
E. The principal is not liable on the contract. In certain situations the agent is the only party liable for the contract. This includes a situation in which the contract expressly excludes the principal from the contract. If the principal was not a party to the contract, he or she has no liability to the agent.
47) Which of the following is typically an appropriate venue in a lawsuit?
E. The trial court where the defendant resides and also the location where the dispute occurred if the lawsuit focuses on a particular incident. Usually, the trial court where the defendant resides is the appropriate venue; if the focus of the case is a particular incident, the trial court where the dispute occurred is an appropriate venue.
