Business Law Final

SLO # 4 Mary wins her suit against National Manufacturing. National's best ground for appeal is the trial court's interpretation of the dealings between the parties before the lawsuit began the laws the judge used to apply to the case decision the conduct of the witnesses during trial the credibility of the witnesses in the trial

the laws the judge used to apply to the case decision

There are several factors that help determine if a worker is an "employee" or an "independent contractor". Select those factors. Control of the dress worn during work time Control of the tools or equipment used in the work Control of work schedule Whether a worker is covered by the Company's benefit plans The closeness of a family relative to the owner Whether the worker gets a 1099 or a W-2 Whether the worker is shown how to do the work

Control of the dress worn during work time Control of the tools or equipment used in the work Control of work schedule Whether the worker is shown how to do the work

What is required for federal court jurisdiction over a case? Damages in excess of $75,000 State Supreme Court certification Standing of the plaintiff Diversity of citizenship

Damages in excess of $75,000 Standing of the plaintiff Diversity of citizenship

Name the items that Adrian Fontes records for Maricopa County. Deeds of Trust Copyright transcripts Musical albums Disclaimers of interest in property Property Deeds

Deeds of Trust Disclaimers of interest in property Property Deeds

Arizona enacted a law prohibiting the manufacture and sale of cement manufactured outside of Arizona that does not carry a label that the cement cannot be used in government-funded or other large projects. The requirement of the label, and the restriction of non-Arizona cement most likely violate the federalism mutuality of interest Supremacy Clause Commerce Clause doctrine Dormant Commerce Clause doctrine

Dormant Commerce Clause doctrine

The doctrine - Negligence per se will help a plaintiff prove which of the following elements of a negligence claim. Causation Strict product liability Duty Breach of a duty to others

Duty Breach of a duty to others

The four elements to a negligence action include Res ipsa loquitur Negligence per se Duty Reckless disregard for the truth Damages Breach Causation

Duty Damages Breach Causation

What is the correct number of questions for a Test Quiz like this? 0 100 Enough to help me get the grade I need The right answer is enough.

Enough to help me get the grade I need

SLO # 1 Global Corporation, much like all other businesses, has duties prescribed to it by Ethics and the law Ethics only the law only neither ethics nor the law

Ethics and the law

The three primary branches of government include Executive Judicial Military Commercial Legislative

Executive Judicial Legislative

Please match the checks and balances shown below. Executive branch Legislative branch Judicial branch Legislative branch

Executive branch-Appoints heads of regulatory agencies Legislative branch-Approves Presidential nominations and judge appointments Judicial branch-Finds Congressional laws unconstitutional Legislative branch-Overturn regulatory agency rulings with new laws when they are not popular

SLO #9 The three generally accepted branches of government include Executive, Judicial and Legislative Branches Judicial, Regulatory and Legislative there is only one main branch, the Executive branch Federal, State, and Local branches

Executive, Judicial and Legislative Branches

A says I will sell you 25 bikes for my standard price less a 5% discount. B says sounds like a good deal. I will probably do this tomorrow. Is this a valid acceptance under the UCC? T/F

F

At common law, an offeror was the "master of his offer". Today, though, because of the UCC and the internet, anyone can accept any open offer anytime. T/F

F

Because the Supreme Court believes that courts can provide the best relief to plaintiffs, it is reluctant to order parties into arbitration. T/F

F

Because the UCC was drafted, and negotiated, between businessmen, banks and corporate lawyers, it is a good recommendation of commercial standards to follow, but the rules are voluntary for business. T/F

F

Bill sees an offer for 5 toys on the internet for $30 each. It says to send an acceptance within 5 days to [email protected], but Bill, sends it to [email protected]. A forwarding order sends the email to [email protected] 10 days later. Bill's acceptance is nonetheless valid, since the email was forwarded to toysbeus. (This is a tough one. I won't do this to you on the test. Well, maybe.) T/F

F

Case law decided by the Supreme Court is binding on federal but not state courts. T/F

F

Courts use a subjective standard when interpreting contracts so that they can understand why a party entered into an agreement. T/F

F

Each state and the federal government have laws described as the "Statute of Frauds". T/F

F

In order to enforce justice and equality, courts are likely to review whether or not a contract is a good deal for both parties prior to making an enforcement decision for either side. T/F

F

Members of the Board of Directors are elected by the officers of a corporation. T/F

F

Regulatory agencies are created by the President to carry out and faithfully execute the laws. T/F

F

Shareholders have a right to require that the Board of Directors pay a dividend if the Company has too much cash in the opinion of the shareholder. T/F

F

Since the EPA was created by Congress, the Administrator of the EPA is selected by Congress and the President. T/F

F

The Constitution and the United States Code with all of its Titles comprise all rules that affect government, business and individuals. T/F

F

The Supreme Court trend on the exercise of personal jurisdiction over out of state defendants is that it is making it easier for plaintiffs to assert jurisdiction over out of state defendants. T/F

F

The parol evidence rule helps people prove that agreements actually exist. T/F

F

The social responsibility of business consists only of the expectations employees have of their employers. T/F

F

Whether or not a party has a claim against an attorney based on his malpractice in a contract law matter is the same in all states since whether malpractice occurred is a matter of federal, not state, law. T/F

F

While courts decide questions of law, juries may decide the facts and questions of the law when considering a verdict. T/F

F

A says I will sell you 25 bikes for my standard price less a 5% discount. B says sounds like a good deal. I will do it. Deliver them to Colorado. Colorado freight will cost A 40% of the profit he was going to make. Is this a valid contract under the UCC? (Don't worry about whether it should be in writing.) It is a contract and A must pay the freight No, there is no agreement since the offer itself is not valid No, there is no contract because they don't agree on this It is a contract, but A does not have to pay the freight

It is a contract, but A does not have to pay the freight

As a shareholder of a corporation, Susan is entitled to Inspect corporate records Select the Company's Chief Financial Officer Her proportionate share of company assets if a liquidation occurs Decide to whom to pay bonuses No answer text provided. vote on major corporate matters and the Board of Directors

Inspect corporate records Her proportionate share of company assets if a liquidation occurs vote on major corporate matters and the Board of Directors

Note some things that the Board of Directors can do to make sure that ethical actions are taken at their company Investigate any whistleblower complaints vigorously Establish and Enforce the Code of Ethics even if very costly Fire troublesome whistleblowers Establish a whistleblower hotline set ambitious corporate goals and fire those who miss them Have an ethical CEO at the top of the company

Investigate any whistleblower complaints vigorously Establish and Enforce the Code of Ethics even if very costly Establish a whistleblower hotline Have an ethical CEO at the top of the company

A says I will sell you 25 bikes for my standard price less a 5% discount. B says sounds like a good deal. I will do it. Deliver them to Colorado. Colorado freight will cost A 50% of the profit he was going to make. Is this a valid contract under the UCC? (Don't worry about whether it should be in writing.) There is no valid agreement. Yes, but A does not have to deliver them to Colorado Only if A agrees to the freight payment

Yes, but A does not have to deliver them to Colorado

In preparation for a trial between George and ABC Corporation, ABC's attorney places George under oath and asks George questions that are recorded by a court reporter. This is known as an interrogatory Request for Admissions Voir Dire a deposition

a deposition

An easement is a right to a limited use of property small loan secured by the property the north 40 feet of any property the right of government to condemn and take property easily

a right to a limited use of property

Duties of agent include the following accounting loyalty obedience indemnification cooperation notification compensation

accounting loyalty obedience notification

All of the cases that have been decided by U.S. judges, as well as by English judges prior to the American Revolution, constitute a body of law known as common law statutory law civil law English law

common law

Tenure Track Instructor Judd also provides financial and legal accounting advice to clients for a fee. He tells them that he is an attorney and CPA. A client makes a claim (probably in error!) that the advice Judd gave was incorrect. What standard of care would the client have to show that Mr. Judd breached? Check all that apply. A very experienced attorney in tax matters A tenure track instructor at a college A reasonably experienced attorney/CPA in the same situation A reasonable person with average intelligence about legal and financial matters

A reasonably experienced attorney/CPA in the same situation

Match these following descriptions of authority an agent may have Actual authority Implied authority Apparent authority

Actual authority-Authority provided a specific written or oral agreement Implied authority-Authority given by a principal to complete tasks necessary to fulfill the objective Apparent authority-Authority given because of the position, title, location of the agent

Assume that Congress passes a law establishing a new administrative agency to oversee cyberlaw issues. The agency writes rules to enable it to carry out its duties. The rules written by the agency will be known as a part of Commerce Clause Constitutional Law Administrative Law Statutory Law

Administrative Law

SLO # 3 Source of American laws that affect business include state statutes administrative agency rulings All of the above the US Constitution

All of the above

Duties of a principal include the following Compensation indemnification Accounting Cooperation Loyalty Obedience

Compensation indemnification Cooperation

Match these Amendments with the rights they provide to defendants charged with crimes 4th Amendment 5th Amendment 6th Amendment 8th Amendment

4th Amendment-Freedom from unreasonable search and seizure, requirement for a search warrant 5th Amendment-Due process, right to not give testimony against yourself and double jeopardy 6th Amendment-Right to speedy and public trial and to subpoena favorable witnesses and to confront witnesses against you 8th Amendment-No cruel and unusual punishment, excessive fines or penalties

SLO #10 - The primary basis for power of government to regulate business stems from the Declaration of Independence Commerce Clause the Taxing Power in the US Constitution natural laws which govern us

Commerce Clause

A says I will sell you 25 bikes for my standard price ( $75 each ) less a 5% discount. B emails him, and says sounds like a good deal. I will do it. Deliver them to Colorado. A emails back and says I will pay half the freight. B does not respond. Who pays the freight? A B A and B will split it Freight can not be charged to a Buyer under the UCC

A and B will split it

The U.S. Fish and Wildlife Service wishes to make new rules about the desert ground squirrel. This involves a period during which the following actions must occur. A comment period to allow the public to comment on the rule Publication of the proposed rule in the Wall Street Journal, USA Today and other publications of national circulation Notice of a preliminary rule published in the Federal Register Publication of the final rule A waiting period of 60 days to allow for court challenges

A comment period to allow the public to comment on the rule Notice of a preliminary rule published in the Federal Register Publication of the final rule

Match the following bankruptcy parties with the type of bankruptcy outcome they would usually have Chapter 7 - usually individuals, some companies Chapter 9 - usually cities and municipalities Chapter 11 - usually companies Chapter 13 - usually individuals

Chapter 7 - usually individuals, some companies-[Liquidation] Chapter 9 - usually cities and municipalities-[Reorganization] Chapter 11 - usually companies-[Reorganization] Chapter 13 - usually individuals-[Wage earner plans are the usual outcome]

Match these international law concepts with their correct definition. Comity Act of State Sovereign Immunity doctrine

Comity-Nations and their courts will defer to the laws and judicial decrees of other nations Act of State-US Courts will avoid ruling on the actions of other sovereign governments taken in that sovereign's territory Sovereign Immunity doctrine-The concept that foreign nations won't be held liable for their actions, unless specific exceptions (commercial activity, other) apply

Match these laws with some of their requirements Fair Debt Collection Practices Act Fair Credit Reporting Act Securities Act of 1933 Securities Act of 1934 National Environmental Policy Act

Fair Debt Collection Practices Act-Forbidding calling debtors at inconvenient times or threatening to sell debts to others Fair Credit Reporting Act-Requires that consumers obtain a free copy of the credit report once a year Securities Act of 1933-Companies must register with the SEC and prepare a "prospectus" before selling stock to the public Securities Act of 1934-Public companies must provide shareholders with an annual report (Form 10-K) each year National Environmental Policy Act-Governments must complete an Environmental Impact Statement prior to commencing a significant project

Pick the two primary objectives of bankruptcy laws Fair administration of a debtor's net assets Justice and the American way (not this one!) Discharge of the affected parties Fresh start for debtors Collection of debts quickly

Fair administration of a debtor's net assets Fresh start for debtors

After an offer is made, the subject matter of the offer is destroyed. However, the offer is considered terminated Immediately The offer does not terminate unless the offeror wants to terminate it After notice of the destruction is given In 10 days

Immediately

SLO #6 The important principle set forth in the case of Marbury v. Madison is the Supreme Court can rule on the constitutional of Congressional laws and Presidential actions. This principle has come to be known as Ex Post Facto law Res Judicata Writ of Mandamus Judicial Review

Judicial Review

According to the text, when making decisions, the first thing a business should evaluate is the __________ implications of each decision Financial Safety Legal Moral

Legal

List some of the ways that international companies reduce their risk when dealing with the unique challenges of overseas businesses. Licensing Joint ventures Develop new product lines Direct investment Franchising Joint ventures

Licensing Joint ventures Franchising Joint ventures

A says I will sell you 25 bikes for my standard price less a 5% discount. B says sounds like a good deal. I will do it. Deliver them to Colorado. A says I will pay half the freight. What is A doing? Don't worry about whether it should be in writing Making a proposal to add a term to an existing contract Rejecting B's counteroffer Making a counteroffer

Making a proposal to add a term to an existing contract

When making a business decision with ethical concerns, merely complying with the law is referred to as the Worst possible alternative Substantial goodwill Moral minimum Compliance review

Moral minimum

Name the requirements for a valid deed. Names of both parties Description of the property Delivery of the deed to the grantee Notarization of the signature(s) on the document Signature of both parties Terms of the sale of the property Signature of the grantor

Names of both parties Description of the property Delivery of the deed to the grantee Notarization of the signature(s) on the document Signature of the grantor

Match these negligence related concepts with the correct definition Negligence per se Res ipsa loquitur Comparative negligence Strict liability Last chance doctrine Forseeable plaintiff

Negligence per se-Where a violation of a statute shows a duty or breach of that duty Res ipsa loquitur-Something that would not happen in the absence of negligence Comparative negligence-Allocating the level of fault between various causes of a tort Strict liability-A legal basis for imposing negligence liability when the actions of a defendant are extraordinarily dangerous Last chance doctrine-Allowing a plaintiff to show that another party had one final opportunity to avoid a negligence loss Forseeable plaintiff-Not Ms.Palsgraf, standing on the Long Island Railway platform away from the explosives

Jackson, a homeowner, files a lawsuit against Johnson, his construction contractor. Prior to trial, they all meet with their attorneys to try to resolve their dispute before going to trial. This proceeding is known as Negotiation Arbitration Litigation Mediation

Negotiation

The Fair Labor Standards Act requires various things from employers. Select those items required by the FLSA. Sick pay of a minimum of 3 days Payment of overtime Restriction of child labor Modest vacation pay Minimum wage Notification of the rights of employees Recordkeeping by the employer Holiday pay

Payment of overtime Restriction of child labor Minimum wage Notification of the rights of employees Recordkeeping by the employer

Which of these terms must be in an agreement for it to be enforceable under the UCC? Quantity Price Time for Shipment Time and Method of Payment

Quantity

List 3 agencies and the laws they are required to enforce SEC FTC CFPB FCC

SEC-Securities Laws FTC-Laws relating to advertising and trade CFPB-Laws relating to financial transactions between consumers and large companies FCC-Laws relating to mass media, and communications such as phones and the internet

Bill is the Chief Financial Officer of Candle Corp. Bill, while very smart and honest, is a little sloppy in his work. While the financial statements of Candle Corp. are pretty accurate because Bill's Corporate Controller is both smart and honest, Bill has not included internal accounting controls in his job list, and therefore has not tested those controls. Bill's primary headache will occur when which law is enforced? Sarbanes Oxley Act of 2002 Insider Trading Laws Securities Act of 1934 Securities Act of 1933

Sarbanes Oxley Act of 2002

Match these business organizations with their legal requirements Sole proprietorship General Partnership Limited liability company Corporation

Sole proprietorship-Owner is fully liable for losses and damages General Partnership-Owner is jointly liable with others for losses and damages Limited liability company-Owner is liable for losses up to the amount invested Corporation-Owner is liable for losses up to the amount invested

SLO #5 The practice of deciding new cases with reference to former decisions, or precedents, is known as the rule of Law of the Case Summary Judgment Stare Decisis Certiorari

Stare Decisis

Match these contract performance with their correct definitions Substantial performance Unilateral Mistake Bilateral mistake Anticipatory breach Mitigation of Damage

Substantial performance-The idea that a contracting party can complete nearly all of a contract, and won't lose the entire contract amount Unilateral Mistake-The concept that a contracting party will be liable for a misjudgment he/she could have prevented Bilateral mistake-The concept that a contract is never actually formed when both parties are under the wrong assumption about some material fact Anticipatory breach-The concept that a party can notify another party that he/she won't be able to complete a contract, and possibly reduce damages Mitigation of Damage-The concept that a nonbreaching party must take reasonable actions to reduce his/her losses when a contract is breached

Elaine is involved in a car accident where the other driver ran a red light. To determine whether she has a case, her attorney would apply which of the following classifications of law? Substantive law Administrative Law Cyberlaw Procedural law

Substantive law

A says I will sell you 25 bikes for my standard price less a 5% discount. Is this a valid offer under the UCC? T/F

T

Agency relationships are very common in our business world. There are a lot of them. T/F

T

Congress was empowered to pass the Fair Labor Standards Act due to the Commerce Clause in the US Constitution. T/F

T

Glaxo makes a pill that saves thousands from heart attack. It also destroys the liver of .1% of those who take it. Glaxo takes great care to test the drug, and to manufacture it carefully. Glaxo can nevertheless be held liable for a negligent failure to warn about the dangers of the drug. T/F

T

In California, factors in determining if a worker is an employee is whether or not that worker offers his services to several other employers and whether he/she does the primary work of the employer. T/F

T

State law supreme court decisions are binding on ALL of the state courts of the state where the court is located. T/F

T

Subject matter jurisdiction is the power of the court to hear a certain type of case. T/F

T

The parol evidence rule will allow parties to explain ambiguous terms in agreements, but not to contradict those terms with oral testimony. T/F

T

The standards for issuance of a patent are generally that the concept or product must be novel, non-obvious and unique. T/F

T

Tort and contract law are primarily state law. T/F

T

When the dangers of a product misuse or land area are obvious, the manufacturer or landowner has no duty to warn of those dangers. T/F

T

The Securities and Exchange Commission enforces the state securities laws The Securities Act of 1933 and the Securities Exchange Act of 1934. The security of the President and important Cabinet officers Laws relating to Homeland Security and related regulations

The Securities Act of 1933 and the Securities Exchange Act of 1934.

Match the questions of fact and law to the appropriate determinations. The car was speeding The speed limit on that road was too low and did not need to be obeyed John did not file his tax return by April 15th Some people with a valid excuse can file later

The car was speeding [Question of Fact] The speed limit on that road was too low and did not need to be obeyed [Question of law] John did not file his tax return by April 15th [Question of fact] Some people with a valid excuse can file later [Question of law]

When Adrian Fontes records a real estate document where Tenure Track Instructor Judd disclaims an interest in a home so that Wells Fargo Bank will make a loan, who is he notifying of that fact? Mr. Judd The world Business Law students everywhere Wells Fargo Bank

The world

Match these intellectual property "lives" (how long the I/P is effective) with the correct period of time Trade secrets Patents Copyrights Trademarks

Trade secrets-As long as the business treats the I/P as confidential Patents-20 years, in some cases 14 Copyrights-The life of the creator, plus 70 years; in some cases, 95 years Trademarks-For as long as the entity uses the I/P and keeps it registered with the PTO

Which of these are commonly understood to be intellectual property? A list of your friends on Facebook A US Census Bureau study on high tech companies Trademarks Trade Secrets Patents Copyrights

Trademarks Trade Secrets Patents Copyrights

Match these concepts Unilateral agreements Bilateral agreements

Unilateral agreements-Accepted and completed by an act Bilateral agreements-Accepted and completed by a promise to act in the future

The various theories under which a party can show that another is liable for an injury caused a defective product include Intentional battery Warranty (Contract) Strict product liability Product alteration or misuse Negligence Negligent failure to warn

Warranty (Contract) Strict product liability Negligence Negligent failure to warn

A says I will sell you 25 bikes for my standard price ( $75 each ) less a 5% discount. B says sounds like a good deal. I will do it. Deliver them to Colorado. A says I will pay half the freight. Now, worry about whether it should be in writing. Should it be? No, because it is a UCC exception No, because of promissory estoppel No, because it won't be performed within a year Yes, because it is very likely over $500 in total

Yes, because it is very likely over $500 in total

SLO #2 - The common law began as a group of legal principles of Western European nations as a group of legal principles and rules applied by courts in England from the influence of Islamic courts in predominantly Muslim countries as part of Roman common civil law

as a group of legal principles and rules applied by courts in England

John is a resident of Iowa. While driving through California, he has an accident involving Marisol, a California resident. Marisol files a lawsuit in a California state court. Over John, the California court has in rem jurisdiction no jurisdiction in personam jurisdiction concurrent

in personam jurisdiction

The primary source of authority for government regulation of business would be The Declaration of Independence Business Law A110, Orange Coast College Supreme Court decisions the Commerce Clause

the Commerce Clause

Charles loses his breach-of-contract case against Micheletta, a California resident, in a Georgia state trial court. Charles appeals to the state court of appeals. Losing again, he files his next appeal with US Supreme Court the Georgia Supreme Court US District Court in Georgia California Supreme Court

the Georgia Supreme Court

SLO $#8 - Rick and Tom engage in a pretty nasty fight. During the fight, Rick uses racial epithets to curse Tom. When Rick is prosecuted for a hate crime, a question of law for the judge would be if Rick threw the first punch in the fight whether Rick has a First Amendment right to say such things, whether or not in a fight if Rick really said those words if Rick had threatened Tom a week before the fight

whether Rick has a First Amendment right to say such things, whether or not in a fight

SLO # 7 - Tom and Rick engage in a pretty nasty fight. During the fight, Rick uses racial epithets to curse Tom. When Rick is prosecuted for a hate crime, a question of fact for the jury would be how long the sentence should be for Rick whether the legal doctrine of "stand your ground" should apply whether Rick said the words he is accused of saying whether Rick has a free speech right to say such words during a heated fight.

whether Rick said the words he is accused of saying