Business law and Ethics Final Review 3.0

• Sole proprietors own the entire business. That's why they're sole. What happens when they die?

- Game over The business ends - Cannot put business in will, can disburse assets though

Implicit Cost

A nonmonetary opportunity cost.

d. government prosecution and a private investor's suit.

Ewan, the chief executive officer of Furniture Inc., intentionally understates the amount of the firm's debts in information provided to investors as part of an issue of stock. Gary buys the stock and suffers a loss. Ewan may be subject to Select one: a. only government prosecution. b. only a private investor's suit. c. negative publicity but no criminal prosecution or civil suit. d. government prosecution and a private investor's suit.

Corporate governance

The way in which a corporation is structured and the effect that structure has on the corporation's behavior.

A bank is not obligated to pay an uncertified check presented for payment more than six months from its date. True False

True

A party who in good faith performs substantially all of the terms of a contract can enforce the contract against the other party. True False

True

• What benefits do you get under FMLA? What do you not get?

- Family Medical Leave Act People who work with 5o people or more - 12 weeks of unpaid leave for medical, child, spouse, etc. - Allowed to keep job. Health insurance, but not getting paid while out

An eligible employee may take unpaid leave under the Family and Medical Leave Act for family or medical reasons, or in certain situations for military service. True False

True

• What's an overdraft?

- An overdraft is where you spend more money than you have 'If you have $500 in your checking account and ask for more, you overdraw your account - Banks will either bounce the check or deny the transaction, or if you have overdraft protection they give you a small loan or use your second account. - Average overdraft fees are $25 to $35

• Right to inspection, waiver of that right

- Automatic right to inspection when receiving goods - If you don't do it in a timely fashion, you waive the right (waiting 2 month for example) - Only exception is if it is complicated and needs a third party to inspect it

Chapters 18 & 19 - Business Organizations • Corporations in court; they're people too!

- Courts say that corporations have people status; certain rights such as first Amendment, freedom of speech and religion, etc

Chapter 10 - Contract Performance and Breach • Assignment vs Delegation - what can and cannot be done

- Difference being assignment hands off all rights of contract to be done by someone else - Other party may not be cool with it - Delegation has somebody doing the work, but the party doing the work may not know about it

Balance Sheet

A financial Statement that sums up a firm's financial position on a particular day, usually the end of a quarter or year.

Indirect finance

A flow of funds from savers to borrowers through financial intermediaries such as banks. Intermediaries raise funds from savers to lend to firms (and other borrowers).

Direct Finance

A flow of funds from savers to firms through financial markets, such as the New York Stock Exchange.

Corporation

A legal form of business that provides owners with protection from losing more than their investment should the business fail.

b. False

The Uniform Commercial Code requires parties to form sales and lease contracts with the same formality used in forming other types of contracts. Select one: a. True b. False

A small-amount mechanic's lien typically stays on record until the property against which it has been filed is sold when it is paid out of the sale proceeds. True False

True

Stare decisis is best defined as Stare decisis is best defined as a. a doctrine under which judges follow established precedents. b. a judicial proceeding to redress a wrong. c. the authority to decide a specific dispute. d. a situation giving a person a right to initiate a judicial proceeding.

a. a doctrine under which judges follow established precedents.

Diamonds & Gold LLC hires Elle to buy gems and precious metals from various sources on its behalf. In this relationship, Diamonds is a. a principal. b. an agent. c. an employee. d. an independent contractor.

a. a principal

The National Restaurant Association announces a new industry code of ethics. The effectiveness of this code will be determined by a. the commitment of management to enforcing the code. b. the success of the campaign publicizing the code. c. the similarity of the code to the employees' personal values. d. the relationship between the code and the law.

a. the commitment of management to enforcing the code.

Leigh buys Masters of Business, a copyrighted book. Under the first sale doctrine, Leigh can legally a. control the distribution of other copies of the book. b. sell the book to another person. c. republish the book as his own work. d. none of the choices.

b. sell the book to another person.

Brass Instruments, Inc., sells seventy-six trombones to Community Band. To avoid liability for most implied warranties, Brass should state in writing that the trombones are sold a.in perfect condition. b. by a merchant. c. with no known defects. d. as is.

d. as is.

Neville files a suit against Olina. To obtain information to prepare for trial, the parties engage in discovery. This includes gaining access to each other's witnesses and other types of evidence by a. undue harassment, improper requests, and related tactics. b. chicanery, subterfuge, and similar methods. c. voir dire, the rule of four, and a writ of certiorari. d. depositions, interrogatories, and other procedural devices.

d. depositions, interrogatories, and other procedural devices.

• Who monitors compliance with Title VII of the Civil Rights Act?

- Primarily the EEOC Equal Employment Opportunity Commission - Investigate employee complaint

• Transfer of shares, what governs?

- Primarily the bylaws

Chapter 20 - Securities Law • Forward looking statements; good faith defense protection

- When filing documents for FCC, you are filing them with forward looking statements - Meaning they expect the following to happen within the next quarter, year, etc. - If you don't put it in there and it occurs, your shareholders can sue

Stock

A financial security that represents partial ownership of a firm.

Income Statement

A financial statement that shows a firm's revenues, costs, and profit over a period of time.

a. True

A firm may be deemed a monopolist, even though it is not the only seller in a market, because what matters is size in relation to the market. Select one: a. True b. False

Accounting Profit

A firm's net income, measured as revenue minus operating expenses and taxes paid.

Economic Profit

A firm's revenues minus all of its implicit and explicit costs.

A federal statute applies only to those states that agree to apply it within their borders. True False

False

Any court can exercise jurisdiction over any property wherever it is located. True False

False

Cybersquatting is illegal only if a domain name is identical to the trademark of another, not if the name is merely confusingly similar. True False

False

Disparate-impact discrimination occurs when a protected class is adversely affected by the practice or procedure of an employer who intended that result. True False

False

Except for an option contract, a firm offer by a merchant is irrevocable once it has been made. True False

False

File-sharing can be used to download others' stored music files without raising copyright issues. True False

False

In states that require a minimum wage that is higher than the specified federal minimum wage, employees are entitled only to the lower federal amount. True False

False

Larceny involves force or fear, but robbery does not. True False

False

Negotiation requires the use of a neutral third party to facilitate a settlement. True False

False

Outcome-based ethics deals with traditional standards of behavior. True False

False

Tapping into a competitor's computer to obtain confidential business data is not a theft of trade secrets. True False

False

The attempt to influence a public official to act in a way that serves a private interest is no crime. True False

False

The use of interviews and tests, and minimum educational requirements, to choose among a large number of applicants for job openings is prima facie employment discrimination. True False

False

As you are aware, the Bill of Rights is the first 10 amendments of the US Constitution. Match the number of the amendment with the rights it gives. A. Powers not listed reserved to the states or the people B. No quartering of soldiers in private houses C. Rights of accused to a fair, speedy trial D. Right against self-incriminiation or double jeopardy E. People get rights not in the Constitution F. Right to trial by jury in civil cases G. Right to bear arms H. Forbids excessive bail; cruel and unusual punishment I. No unreasonable search and seizure J. Freedoms of religion, speech, press, assembly and petition

J. 1st Amendment G. 2nd Amendment B. 3rd Amendment I. 4th Amendment D. 5th Amendment C. 6th Amendment F. 7th Amendment H. 8th Amendment E. 9th Amendment A. 10th Amendment

a. True

Normal trade relations status granted to a member of the World Trade Organization means that the member will receive other members' most favorable treatment with regard to imports and exports. Select one: a. True b. False

b. False

Shipping times promised in ads are estimates—merchants are not required to notify consumers when orders cannot be shipped as timely as promised. Select one: a. True b. False

A truck driver who drives a company truck on a regular basis is most likely an employee. True False

True

Any contract can be discharged by agreement of the parties. True False

True

Business as we know it could not exist without secured transactions because otherwise sellers and lenders would be less likely to sell and lend on credit. True False

True

Contractual obligations will be discharged when the specific subject matter of the contract is destroyed. True False

True

To be eligible for unemployment compensation, a worker must be willing and able to work. True False

True

Fitness Club employs only female staff to assist its female-only members in the club. Greg, a forty-one-year-old male, applies for a staff job, but is not hired. In his suit against the club under the Civil Rights Act, the club most likely has a. a bona fide occupational qualification defense. b. a prima facie case. c. a business necessity defense. d. immunity.

a. a bona fide occupational qualification defense.

Under the Equal Pay Act, an employer can legitimately pay different wages to male and female employees on the basis of a. all of the choices. b. any factor other than gender. c. the primary duties of the jobs. d. a seniority or merit system.

a. all of the choices.

France and the United States are signatories of the Berne Convention. Alain, a citizen of France, publishes a book first in France and then in the United States. Alain's copyright must be recognized by a. all of the signatories of the Berne Convention. b. none of the choices. c. France and the United States only. d. France only.

a. all of the signatories of the Berne Convention.

Don enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation of the structure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be a. discharged. b. performed. c. altered. d. breached.

a. discharged

Home Redo, Inc., and Ivy enter into a contract for a sale of cabinets and countertops. Home Redo, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably a. fit for the ordinary purpose for which such goods are used. b. suitable for resale at an acceptable price. c. the best quality that money can buy. d. fit for the buyer's particular purpose.

a. fit for the ordinary purpose for which such goods are used.

The basis of all law in the United States is a. the U.S. Constitution. b. regulations created by administrative agencies. c. laws passed by Congress. d. case law.

a. the U.S. Constitution.

A precedent is a. the fundamental procedure by which the government exercises its authority. b. a court decision that furnishes an example for deciding subsequent cases involving similar or identical facts or principles. c. a lawsuit in which a number of persons join together. d. the chief executive officer of the United States.

b. a court decision that furnishes an example for deciding subsequent cases involving similar or identical facts or principles.

Works that are copyrightable include a. product packaging. b. all of the choices. c. books. d. music videos.

b. all of the choices.

Isabel and Josh engage in a business transaction that leads to a dispute. Isabel initiates a lawsuit against Josh by filing a complaint. The sheriff serves Josh with a summons. If Josh chooses to ignore it, a. Josh will have a judgment entered in his favor. b. Isabel must file an amended complaint. c. Isabel will have a judgment entered in her favor. d. Josh must be served with a second summons.

c. Isabel will have a judgment entered in her favor.

Bert's Bagels, Inc., and other bakeries refer to a "baker's dozen" as consisting of a collection of thirteen baked goods. According to the UCC, this is a. a course of dealing. b. none of the choices. c .a usage of trade. d. a course of performance.

c. a usage of trade.

Beryl enters into a contract with Clay for a guided tour of Deep Canyon. Clay represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Most likely, Beryl a. might recover damages for the mistake. b. could exert duress to obtain a new guide. c. can rescind the deal based on fraudulent misrepresentation. d. must comply with the contract because the representation is an opinion.

c. can rescind the deal based on fraudulent misrepresentation.

Ben manages a warehouse and its inventory for Coffee Roaster Inc. To operate this part of the business, Ben's authority can be inferred a. to contradict Ben's express authority. b. under no circumstances. c. from the position Ben occupies. d. by a reasonable party with whom Coffee Roaster does business.

c. from the position Ben occupies.

A speedy trial, a trial by jury, a public trial, and the right to confront witnesses are guaranteed by a. the Fifth Amendment. b. state law, not the U.S. Constitution c. the Sixth Amendment. d. the Fourth Amendment.

c. the Sixth Amendment.

Criminal liability for the piracy of copyrighted materials extends only to persons who exchange unauthorized copies for profit. True False

False

Coupon Payment

An interest payment on a bond.

An independent contractor is, by definition, an employee. True False

False

Recently, two low cost carriers announced that they were going to merge to become one company. Name either of the two airlines involved.

Frontier Airlines or Spirit Airlines

a. investigate.

On the receipt of consumer complaints about a company's ads, the most likely first step of the Federal Trade Commission would be to Select one: a. investigate. b. draft a formal complaint. c. order restitution. d. issue a cease-and-desist order.

• What happens if the principal dies?

- Game over effectively - Unless there is some sort of set deal beyond the principle

Explicit Cost

A cost that involves spending money.

Sole Proprietorship

A firm owned by a single individual and not organized as a corporation.

Partnership

A firm owned jointly by two or more persons and not organized as a corporation.

Interest rate

The cost of borrowing funds, usually expressed as a percentage of the amount borrowed.

Curly Fries Inc. grants its agent Dian an exclusive territory in which to sell its products. The company cannot compete with Dian in that territory under the duty of a. cooperation. b. indemnification. c. reimbursement. d. none of the choices.

a. cooperation.

b. the U.S. Department of Justice.

The federal agencies that enforce the antitrust laws include Select one: a. the Consumer Financial Protection Bureau. b. the U.S. Department of Justice. c. the Securities and Exchange Commission. d. all of the choices.

Opportunity Cost

The highest-valued alternative that must be given up to engage in an activity.

b. restrictions on imports.

Trade barriers are Select one: a. restrictions on exports. b. restrictions on imports. c. the lack of incentives and subsidies to stimulate imports. d. the lack of incentives and subsidies to stimulate exports.

A business necessity is a defense against employment discrimination based on the genuine requirements of a business. True False

True

A landlord is expected to use reasonable care to ensure that his or her tenants are not harmed in common areas. True False

True

A patent applicant must demonstrate that an invention is useful to receive a patent. True False

True

If the evidence of a defendant's guilt was obtained improperly, it normally cannot be used against the defendant in court. True False

True

Elmore pays Fidelity Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service. This is a. a stop-payment order. b. an overdraft. c. a stale check. d. a cashier's check.

d. a cashier's check.

Trespass to land is committed if, without the permission of the property owner, a person a. enters the property to assist someone in danger. b. causes water to back up onto the property. c. all of the choices. d. has a revocable license to come onto the property.

b. causes water to back up onto the property.

An undisclosed principal is one whose identity is totally unknown by an agent and a third party at the time a contract is made. True False

False

Crimes are sometimes prosecuted by crime victims rather than by a public official. True False

False

When there is a direct conflict between a federal law and a state law, both laws are rendered invalid. True False

False

Limited Liability

A legal provision that shields owners of a corporation from losing more than they have invested in the firm.

Asset

Anything of value owned by a person or a firm.

Liability

Anything owed by a person or firm.

A contract for a sale of natural gas is a contract for a sale for goods. True False

True

A court can dismiss a Chapter 7 petition if it finds that the use of Chapter 7 would constitute substantial abuse. True False

True

An agency relationship can arise by ratification, which involves a determination of intent expressed by words or conduct. True False

True

An agreement to transfer the right to possess and use goods for a commercial purpose for a period of time in exchange for payment is a lease. True False

True

Ichiro is injured in a two-car accident and sues Heather, the driver of the other vehicle, alleging negligence. Heather claims that Ichiro was driving more carelessly than she was. Comparative negligence may reduce Ichiro's recovery a. only if Ichiro was more at fault than Heather. b. only if Ichiro was less at fault than Heather. c. only if Ichiro and Heather were equally at fault. d. even if Ichiro was only slightly at fault.

d. even if Ichiro was only slightly at fault.

Principal-agent Problem

A problem caused by an agent pursuing the agent's own interest rather than the interests of the principal who hired the agent.

A default judgment is a judgment entered by a court against neither party to a case. True False

False

d. may accept the shipment with a reduction in price.

Speedy Auto Parts orders two gross of tires from Tough Tread, Inc. Ten tires are delivered in a damaged condition. Speedy Select one: a. cannot reject the entire shipment. b. must reject the entire shipment. c. must pay for all of the tires at the contract price. d. may accept the shipment with a reduction in price.

• What is constructive discharge?

Things are so bad at work that you have to quit

b. gender.

Federal employment discrimination laws restrict the ability of employers to discriminate against workers on the basis of Select one: a. education. b. gender. c. experience. d. all of the choices.

Separation of ownership from Control

A situation in a corporation in which the tip management, rather than the shareholders, controls day-to-day operations.

Chapter 14 - Banking in the Digital Age • Stop payment and what happens if a bank ignores it? Is it forever?

- Stock payment is where you go to the banks and tell them you wrote/loss a check to whom for how much, and telling the bank not to honor the check - Cost a fee depending on banks and most have them good for 30 days - If the bank ignores it, the bank is responsible to pay this

a. True

Acceptance of an offer to lease goods can be made by any means reasonable under the circumstances, including a prompt shipment of the goods. Select one: a. True b. False

b. direct exporting.

Airbud Corporation, a U.S. firm, signs a contract with Bueno Computadores Ltd., an Argentinean firm, for a shipment and payment for Airbud's goods. This is Select one: a. indirect exporting. b. direct exporting. c. a distribution agreement. d. licensing.

b. a negotiation.

Ana signs a check payable to Boz, who indorses the back, gives it to Credit Union, and receives cash. The transfer of the check from Boz to Credit Union is Select one: a. a payment. b. a negotiation. c. a sale. d. an assignment.

a. can rescind the deal based on fraudulent misrepresentation.

Beryl enters into a contract with Clay for a guided tour of Deep Canyon. Clay represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Most likely, Beryl Select one: a. can rescind the deal based on fraudulent misrepresentation. b. might recover damages for the mistake. c. must comply with the contract because the representation is an opinion. d. could exert duress to obtain a new guide.

a. subject to warranties included in the written contract only.

Cruisin' Autos, Inc., sells cars to consumers. To avoid liability for oral express warranties, each sales agreement should note that a car is sold Select one: a. subject to warranties included in the written contract only. b. in perfect condition. c. as is. d. with no known defects.

b. False

Generally, online ads—unlike other ads—can be less than truthful and not every claim must be substantiated. Select one: a. True b. False

Name the US Supreme Court Justice who has said they will retire at the end of the term in June.

Justice Stephen Breyer

Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)

Legislation passed during 2010 that was intended to reform regulation of the financial system.

a. is fully enforceable.

Sara and Tim enter into a contract for a sale of orchids that requires payment within thirty days of delivery. The UCC provides that when parties do not specify payment terms, payment is due at the time and place of delivery. Under the UCC, the specific payment term in the parties' contract Select one: a. is fully enforceable. b. is enforceable to the extent it mirrors the rule in the UCC. c. removes the entire transaction from under the requirements of the UCC. d. is not enforceable.

a. True

Sexual harassment can occur when a pattern of sexually offensive conduct runs throughout a workplace and the employer takes no steps to prevent it. Select one: a. True b. False

d. all of these choices

Under the Equal Pay Act, an employer can legitimately pay different wages to male and female employees on the basis of Select one: a. a seniority or merit system. b. any factor other than gender. c. the primary duties of the jobs. d. all of these choices

Mai is struck and injured when the brakes fail on Novi's all-terrain vehicle (ATV), which is damaged in the collision. Off-Road Inc. sold the ATV to Novi. Under product liability laws, Off-Road could be liable to a. none of the parties. b. Mai and Novi. c. Novi, but not Mai. d. Mai, but not Novi.

b. Mai and Novi.

Niles enters Omelet Café and points a gun at the cashier Pico. Niles forces Pico to open the register and give him all the money. Niles will most likely be charged with a. receiving stolen property. b. obtaining property by false pretenses. c. robbery. d. larceny.

c. robbery.

In a phone call to Lou, Mia makes statements about Nye that injures Nye's reputation. If Nye can prove all of the elements of defamation and Mia cannot assert a sufficient defense, Mia is most likely liable for a. contempt. b. malice. c. slander. d. libel.

c. slander.

Brooke is an art collector and hires a broker to buy and sell artworks on her behalf. Under the UCC, in those transactions, Brooke has the status of a. an agent or other intermediary. b. a consumer. c. an employer and manager. d. a merchant.

d. a merchant.

Recharge Corporation makes batteries. Sol is injured when the Recharge battery in his phone bursts into flame. In Sol's product liability suit against the maker, alleging a design defect, the court may consider a. Recharge's share of its market. b. Recharge's advertising. c. Recharge's knowledge of the uses of its battery. d. an available alternative design.

d. an available alternative design.

Chuck signs Dolly's name, without her authorization, to the back of her paycheck, which was issued by Eastside Market. This is a. robbery. b. no crime. c. larceny. d. forgery.

d. forgery.

Federal employment discrimination laws restrict the ability of employers to discriminate against workers on the basis of a. all of the choices. b. experience. c. education. d. gender.

d. gender.

Honi is not a resident of Iowa although her website can be accessed by residents of that state. Jean files a suit against Honi in an Iowa state court. The court is most likely to have jurisdiction over Honi if Jean's claim arises from a. the Internet's capacity to bypass boundaries. b. minimum contacts between Honi and any Iowa resident. c. no interactivity between Honi and any Iowa resident through Honi's website. d. substantial business between Jean and Honi through Honi's website.

d. substantial business between Jean and Honi through Honi's website.

d. a blank indorsement.

Coki receives a payroll check from Data Solutions Inc. and indorses it by signing her name on the back of the check. This is Select one: a. a restrictive indorsement. b. a special indorsement. c. a qualified indorsement. d. a blank indorsement.

Federal law permits the sending of unsolicited commercial e-mail to randomly generated e-mail addresses. True False

False

a. True

If a buyer wrongfully refuses to accept the goods, the seller can bring an action for damages equal to the difference between the contract and market prices at the time and place of tender. Select one: a. True b. False

Corporate social responsibility links the responsibility of citizenship with the strategy and key principles of a business. True False

True

Most of the states and the federal government have enacted statutes to protect employees who report wrongdoing from employer retaliation. True False

True

False.

True or False: The standard measure of compensatory damages is the value of the breaching party's actual performance.

b. False

Under the Clayton Act, a seller can condition the sale of a product on the buyer's promise not to deal in the goods of the seller's competitors. Select one: a. True b. False

DIY, a retail hardware store, must use reasonable care on its premises to warn its invitees of a. dangers about which the business does not, or should not, know. b. all possible dangers. c. no dangers. d. hidden dangers.

d. hidden dangers.

Duty-based ethical standards are most likely to derive from a. a cost-benefit analysis. b. a corporate ethics code. c. the law. d. philosophical reasoning.

d. philosophical reasoning.

Each court has a jurisdiction. Jurisdiction is best defined as a. a judicial proceeding to redress a wrong. b. a situation giving a person a right to initiate a judicial proceeding. c. a doctrine that follows established precedents. d. the geographic area in which a court has the power to apply the law.

d. the geographic area in which a court has the power to apply the law.

• What's a security agreement? What does it contain?

- Security agreement is where you bought something that's not a car, and not easily trackable by title. - UCC 1 agreement with county clerk that contains details about the object - Serial number, model number, who financed it, how much the item is worth, and how much it s financed for, for 5 years

• Specific performance in a real estate contract

- Specific performance is asking the court to give you a piece of property - Pretty much only work in real estate - Piece of art/collectible is an exception

• Tangible goods, what is covered under the UCC?

- Tangible goods are anything you can touch, feel, or transport, or can be moved by a machine - Nontangible goods are things like property or things attached property, - Including stocks and bonds

• Unreasonable terms can kill a contract, or at least kill that clause.

- Unreasonable terms include, denying liability, setting a really high interest rat - Court may throw out contract - Savings clause says anything wrong with a contract can be taken out and the rest can still count

• Are all debts dischargeable?

- When you complete your bankruptcy plan, there are certain debts that are wiped clean - Chapter 13 takes away most debts Exceptions being alimony, child support, student loans, and certain court decisions - Student loans would be forgiven before discharged

Chapter 15 - Creditors Rights and Bankruptcy • Bad faith in drafting a petition, what happens in court?

- When you petition the court in a bankruptcy, you put foward all the data including assets, debts, and forms of incomes - Court has 45 days to review this information - Bad faith petition has red flags like the assets vs debts being out of whack, there's missing income or information - If it's a net 45 they essentially toss it out

Bond

A financial security that represents a promise to repay a fixed amount of funds.

b. certify that the reports are complete and accurate.

Bev is the chief executive officer of Chef Cafés Inc., which is required to file certain financial reports with the Securities and Exchange Commission (SEC). Under the Sarbanes-Oxley Act of 2002, Bev must Select one: a. designate a corporate official to assume liability for inaccuracies. b. certify that the reports are complete and accurate. c. read the reports and be prepared to answer questions about them. d. do nothing.

b. False

Creditors that use information from credit-reporting agencies can be held liable for violations of the Fair Credit Reporting Act. Select one: a. True b. False

Dividends

Payments by a corporation to its shareholders.

Cornel and Deanna resolve their dispute over the subsidence of Cornel's real property due to Deanna's excavation for an irrigation pond by having a neutral third party render a binding decision. This is a. arbitration. b. conciliation. c. intervention. d. rendition.

a. arbitration.

Mobile Device Company (MDC) discovers that defamatory statements about its products are being posted in an online forum. NuView Inc., the Internet service provider whose users are posting the messages, can disclose their identity a. only when ordered to do so by a court. b. only in egregious circumstances. c. in no circumstances. d. whenever and however the provider chooses.

a. only when ordered to do so by a court.

Equipment Company holds a lien on Fertile Farm's equipment. The equipment can be sold to satisfy the debt a. if, before the sale, notice is given to the general public. b. if, before the sale, notice is given to Fertile Farm. c. if, before the sale, notice is given to Fertile Farm's other creditors. d. without notice.

b. if, before the sale, notice is given to Fertile Farm.

Phoenix Inc. is a publisher. Phoenix uses a logo featuring a bird rising from a flame to identify its publications. The publications are printed in a unique process that includes a 3-D printer. Phoenix could most likely obtain trademark protection for its a. publications. b. logo. c. printer. d. printing process.

b. logo.

In an online blog, Oren states that Publicity Corporation invaded the privacy of individuals to collect marketing data for its clients. If the firm can prove all of the elements of defamation and Oren cannot assert a sufficient defense, Oren is most likely liable for a. slander. b. contempt. c. malice. d. libel.

d. libel.

Franco buys a sofa from Grey at a garage sale. Franco writes Grey a check for $50 to pay for the couch. Grey is a. the drawee. b. the drawer. c. none of the choices. d. the payee.

d. the payee.

The Food and Drug Administration (FDA) is an executive agency. As an executive agency, the FDA is subject to the authority of a.no government official or entity. b. state legislatures. c. the U.S. Attorney General d. the president.

d. the president.

• Benefit corporation - material positive impact on society

- For profit corporations - Purpose is to 1.) Serve their shareholders and 2.) Have a bigger benefit to society

• Difference between an independent contractor and an employee (basics)

- Independent has far more control over how and when you do the work, as opposed to an employee - Use their own tools and set their own hours, compared to an employee - Invoicing is most likely independent, compared to checks dependent

• What's a mechanic's lien?

- Mechanic's lien a skilled tradesperson files a document with the county clerk saying they did an activity but wasn't paid for it - They can take someone to court, or file a mechanic lien, which is more powerful - Gets paid off before bank and taxes, guaranteed to get your money - Can force a property into foreclosure for the full payment of money

b. False

A difference between the handwriting in the body of a check and in the signature affects the validity of the item and will bar a holder from HDC status. Select one: a. True b. False

a. True

An ad is more likely to be considered fair if its benefit to consumers or the competition outweighs any injury it might cause to the interests of consumers. Select one: a. True b. False

a. True

An agreement to transfer the right to possess and use goods for a commercial purpose for a period of time in exchange for payment is a lease. Select one: a. True b. False

b. False

An express warranty arises when a seller or lessor indicates verbally that the goods are the "best" of the kind of goods sold. Select one: a. True b. False

c. breached.

Bottling Company enters into a contract with Chug's Brewery to provide certain bottling and delivery services. Before Bottling starts to work, the market price rises for the fuel for glass ovens. Bottling tells Chug's that due to the added cost it will not perform their deal. Bottling's contractual obligation to Chug's is Select one: a. rescinded. b. discharged. c. breached. d. suspended.

b. the Equal Employment Opportunity Commission.

Compliance with Title VII of the Civil Rights Act is monitored by Select one: a. businesses affected by interstate commerce. b. the Equal Employment Opportunity Commission. c. protected classes. d. state and local governing agencies.

a. discharged.

Don enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation of the structure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be Select one: a. discharged. b. breached. c. altered. d. performed.

c. primary.

Duke signs a note "payable to the order of Equity Bank." Unless Duke has a valid defense against payment, his liability on this note is Select one: a. qualified. b. secondary. c. primary. d. impaired.

b. False

If a check is made "payable to the order of Marcus or Nathan," both parties' indorsements are necessary for negotiation. Select one: a. True b. False

b. agreed to work together to control the price of domestic steel.

The chief executive officers of the major U.S. steel makers would most likely be prosecuted under the antitrust laws if they Select one: a. met to review developments in the domestic market for steel. b. agreed to work together to control the price of domestic steel. c. promised to reveal to each other their positions on trade and tariffs. d. conferred on resource, supply, and distribution issues.

An employer can avoid liability under Title VII by showing that the employer's standards for hiring and promoting have a substantial, demonstrable relationship to realistic qualifications for the job at issue. True False

True

True

True or False: Contractual obligations will be discharged when the specific subject matter of the contract is destroyed.

d. any instrument representing corporate ownership or debt.

Under the Securities Act of 1933, securities include Select one: a. whatever a corporation represents to the public as profitable. b. a common enterprise reasonably expected to make a profit. c. an investment in one's own personal entrepreneurial effort. d. any instrument representing corporate ownership or debt.

Chapter 11 - Sales and Lease Contracts; Products Liability • Under the UCC, what is a merchant?

- A merchant is somebody that sells items of a certain kind on a regular basis - Randomly selling a one of car doe not count

• Insider trading, not just for "insiders"

- People inside the company that get the info that ends up buying their own stock - Can also have people on the outside such as family members is also considered inside trading if the information is not available for the public

Chapter 17 - Employment Law • Who has to complete an I-9? How long do you have to complete it?

- The employer NOT the employee - Get it done within three days of a hire

b. to go on an extended family vacation.

The Family and Medical Leave Act requires certain employers to provide eligible employees with family or medical leave for any of the following reasons except Select one: a. to care for a newly adopted child. b. to go on an extended family vacation. c. to care for a newly placed foster child. d. if the employee is unable to perform the essential functions of his or her job due to a serious health condition.

• Who can file for Chapter 7? What is the means test?

- Anybody can file for Chapter 7 Nuclear option for liquidation - Whether you stay depends - Means test looks mathematically at income vs aset vs debt, and where you live (mostly because cost of living) - Calculation is different in NYC vs upstate NY

• Firm offers and how long are they open?

- By default at least 30 days, up to 3 months - Most are time-limited to whatever the merchant wants it to be

• Cashier's checks, what are they and who is responsible for paying the check once it's negotiated?

- Cashier's checks are a guaranteed source of money created by you going to the bank, taking money out of your account, and giving it back to the bank for funds. - Have to be super specific, no different than handing over cash

• Duty of Loyalty and why it's important

- Certain duties apply including this one, meaning you are working for the principle alone - Cannot cut sides deals - Pulls someone aside and offers them more things

• Liability of employees "on a frolic" while at work.

- Doing something outside the scope of their employment, and the liability attaches to the employee - Employer throws you under the bus if you use company care to bring a family member to airport

Chapter 21 - Antitrust Law • Market Division - per se violation (geographic and market based)

- Federal antitrust law treats a market allocation amongst competitors as a per se violation of the antitrust laws. - Other types of potentially anticompetitive behavior are only illegal if their anti-competitive effects outweigh their pro-competitive efficiencies.

Chapter 12 - Performance and Breach in Sales Contracts • Nonconformity, do you have the right to cure?

- If I ship nonconforming goods , meaning I sent blue when someone asked for brown, it depends on how long you have on the contract. - If you shipped Wednesday, you can wait till Thursday if contract - If contract is done, it is up to the buyer if you can cure it

• Can you hire illegal immigrants?

- No - People can be on specific visas, which is not considered illegal unless they overstay their visa

Chapter 16 - Agency Relationships in Business • Can you enter a contract through an agent if legally you otherwise couldn't? (minor, incompetent)

- No - There are instances where people are granted by the court, but that's a different instance

• If you ship and the customer doesn't pay, what can you recover?

- Stock payment is where you go to the banks and tell them you wrote/loss a check to whom for how much, and telling the bank not to honor the check - Cost a fee depending on banks and most have them good for 30 days - If the bank ignores it, the bank is responsible to pay this

• Group Boycott

- Where parties band together to freeze out a vendor - Talk to fellow competitors telling them to not buy from a person is a group boycott, and illegal under the law. - Doesn't include consumers

Express warranty and how is it created? Can you avoid them?

- Yes you can avoid them - Express warranty is some sort of language that your salesperson has agreed to about the object - Warranty on contract is only good to the manufacturer

d. international law.

A body of law—formed as a result of international customs, treaties, and organizations—that governs relations among or between nations is Select one: a. universal law. b. space law. c. national law. d. international law.

b. False

A business firm is subject only to the laws of its home nation even when it maintains operations or otherwise does business in other nations. Select one: a. True b. False

a. True

A buyer will be deemed to have accepted delivered goods if, after a reasonable opportunity to inspect the goods, the buyer does not reject them. Select one: a. True b. False

d. does not relieve Bill of the potential obligation to perform.

Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. With respect to the duties under the original contract, this transfer Select one: a. is an invalid transfer of a non-transferable obligation. b. requires a special form to constitute a valid transfer. c. extinguishes Bill's obligation to perform. d. does not relieve Bill of the potential obligation to perform.

c. the Food and Drug Administration.

Corner Market sells groceries. Deli & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is Select one: a. the Federal Trade Commission. b. Corner Market and Deli & Drug. c. the Food and Drug Administration. d. Deli & Drug only.

a. whatever is reasonable

Grains Inc., agrees to sell to Harvest Bread Company a certain quantity of refined grains. Some of the other terms in the deal are left open. In the case of a dispute, a court will presume Select one: a. whatever is reasonable. b. whatever favors the nonbreaching party. c. whatever favors the plaintiff. d. nothing.

b. fit for the ordinary purpose for which such goods are used.

Home Redo, Inc., and Ivy enter into a contract for a sale of cabinets and countertops. Home Redo, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably Select one: a. the best quality that money can buy. b. fit for the ordinary purpose for which such goods are used. c. suitable for resale at an acceptable price. d. fit for the buyer's particular purpose.

b. False

In states that require a minimum wage that is higher than the specified federal minimum wage, employees are entitled only to the lower federal amount. Select one: a. True b. False

a. True

Insider trading is prohibited because trading on the basis of inside information can give the trader an unfair advantage over the investing public. Select one: a. True b. False

a. negotiable.

Jane signs an instrument using a "J" with a swirl around it. With this mark for a signature, the instrument is Select one: a. negotiable. b. nonnegotiable, because an initial is not a signature. c. nonnegotiable, because an initial does not state the signer's name. d. nonnegotiable, because a simple initial implies a lack of binding intent.

a. True

Most of the states and the federal government have enacted statutes to protect employees who report wrongdoing from employer retaliation. Select one: a. True b. False

a. True

Price-fixing agreements are considered violations of the Sherman Act because of their real and potential adverse effects on open and free competition. Select one: a. True b. False

Federal overtime provisions apply only after a covered employee works more than a. eight hours in a day. b. one year for the same employer. c. forty hours in a week. d. twenty days in a month.

c. forty hours in a week.

Salsa Inc. employs three hundred workers at four locations in two states. Under federal law, Salsa must provide each employee, during any twelve-month period, family or medical leave of a. up to twelve days. b. up to twelve pay periods. c. up to twelve weeks. d. no limited duration.

c. up to twelve weeks.

A bar of soap is unmerchantable if stepping on it would cause its user to slip and fall. True False

False

Pia registers a domain name—qualitytires.com—that is confusingly similar to the trademark of Quality Tires Inc. Pia has a "bad faith intent" to profit from the mark by selling the name to Quality Tires. This is a. trademark dilution. b. a legitimate business practice. c. a bid to obtain a license. d. illegal.

d. illegal.