Legal Environment of Business

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The ECPA is the:

Electronic Communications Privacy Act

Which article of the Uniform Commercial Code (UCC) governs bank relationships with their customers and other banks?

Article 4

What does it mean to have primary liability on a negotiable instrument?

As soon as a party signs the instrument as a maker or accepts the instrument as a drawee, they are the first to become liable for payment.

What factors make an agreement enforceable under the principle of quasi-contract? Choose 2 answers.

One party is being enriched at the expense of the other & The enriched party knows about the benefit and keeps it.

What party to a negotiable instrument is involved with both an order to pay and a promise to pay?

Payee

You have had a grudge against the owner of a local barbeque restaurant for years. You went to high school together, and he is always acting like he is better than you because even though you both own barbeque restaurants, his business seems to be more popular than yours. You come up with a plan to get back at him by spreading false rumors that his barbeque made a lot of people sick. That'll teach him! What do you think might happen if you go through with your plan?

The owner of the restaurant could sue you, and you may have to pay him money.

You are an accounting student at a university and also a talented guitar player. During summer vacation, you are hired full time to do bookkeeping for a computer store. You work during normal business hours at the computer store. Your work there is supervised by the office manager, and you are paid an hourly wage. On Saturday nights, you play guitar at a pub. You bring your own instrument, and you decide what music to play. You are paid a set price for this gig. A question arises at both the store and the pub as to whether you are an employee or an independent contractor. This question is important because employers have certain obligations to employees that do not apply to independent contractors. For example, employers are liable for the wrongful acts of employees but generally not for the acts of independent contractors. Likewise, employers must withhold payroll taxes for employees but not for independent contractors. Are you an employee or an independent contractor at the store and at the pub?

You are an employee of the computer store and an independent contractor of the pub.

The principle of stare decisis does which of the following?

creates predictability in the legal system

Which of the following implied warranties means the product will be suitable for the particular use that the buyer intends?

implied warranty of fitness for a particular purpose

Historically, the common law developed from:

the unification of local customs and laws in feudal England.

A judge issues a warrant without probable cause. What protection will limit the usage of any evidence that is now gathered? Choose 2 answer choices.

Fourth amendment & Exclusionary rule

Franklin tosses a ball up in the air and intends to catch it, yet the ball hits a bystander, Yen, and injures her. Which of the following is correct?

Franklin was negligent.

A chain of jewelry stores uses an actress, Felicity Fake, who resembles Rachel Real, a famous actress, to appear in commercials for their stores, with the intent of giving the impression that Rachel Real is endorsing the chain. They dress Felicity in a dress similar to the dress Rachel Real wore in her most famous movie and ask Felicity to imitate Rachel's voice. Rachel Real is insulted by the presentation. For which intentional tort could Rachel sue the company? Choose 2 answer choices.

Invasion of Privacy & Appropriation

What customer activity can override the liability of a bank for making incorrect payments on a customer's account? Choose 2 answer choices.

1. A violation of a customer's duty to review bank statements 2. Customer Negligence

In general, how does respondeat superior differ for employees versus independent contractors? Choose 2 answer choices.

1. Principals are usually responsible for the actions of employees, and more rarely responsible for the actions of independent contractors. 2. Principals are responsible for the actions of both categories if they are negligent in hiring.

Once a secured party has possession of collateral, what may they do? Choose 3 answer choices.

1. Sell the goods in a public space. 2. Sell the goods in a private space. 3. Retain the goods if less than 60% of the debt is paid.

What does the EFTA require banks to do? Choose 2 answer choices.

1.Provide statements for each month an EFT transaction occurs 2.Make available receipts for ETF transactions on terminals

What remedies are available to a seller when the buyer breaches a contract before the goods are delivered to the buyer? Choose 3 answers.

1.The seller may withhold delivery of the goods. 2. The seller may resell the goods and sue to recover damages. 3. The seller may cancel the contract.

You find an antique roadster for sale. It's one of a kind; exactly the kind of car you've always dreamed of owning! You offer $30,000 for the car, and the owner agrees. Just before you are scheduled to pick up the car, however, the owner changes his mind. Your dream is gone in an instant! What do you think would happen if you sue the owner to force him to honor the deal?

A court would probably require the owner to sell you the car.

Which act or statement is a valid offer?

A detailed advertisement

What is the term for when a merchant gives a written, signed assurance that he or she will not revoke an offer for a stated period of time?

A firm offer

What is the difference between a material breach and an immaterial breach?

A material breach results in damages to the non-breaching party, while an immaterial breach is minor.

Who has the right to disclose an electronic communication under the SCA?

Any intended recipient of the communication

Which of the following is true about signature liability?

Any party (except a qualified indorser) who signs the instrument has either primary or secondary liability for payment on the instrument.

Which section of the Uniform Commercial Code (UCC) applies to contracts for sales of goods?

Article 2

What is the prosecutor's burden of proof in a criminal case?

Beyond a reasonable doubt

Who is liable to third parties for damage caused by an agent's tortious conduct if the principal had directed the agent to take that action?

Both the agent and the principal

Which of the elements required to prove negligence involve the reasonable person standard? Choose 2 answer choices.

Breach duty of care & duty of care

Where do the funds to pay out workers' compensation claims come from?

Business contributions to a state held fund

What must a plaintiff prove in an express warranty case?

Buyer reliance on the seller's promises

What is the most common way that duties under a contract are discharged?

By performance

The Uniform Commercial Code applies to what types of contract?

Contracts for goods

A company handbook states that employees will be given warnings for three instances of arriving late for work, after which they will be fired. An employee is fired after being late for the first time. Which of the exceptions to at-will employment could apply?

Contractual agreements.

In general, certain terms must be included in contracts to satisfy the requirement of definiteness. What are the exceptions to this rule? Choose 2 answer choices.

Courts can complete a contract to supply some missing terms & Sale contracts under the UCC.

Emily is a customer at First National Bank. Emily examined her bank statements closely and promptly, and Emily found that the bank paid a check she had not signed. Emily notifies the bank of this. Who would now be safe from liability in this situation?

Emily

Which of the following illustrates a financial or non-financial cost of unreported unethical behavior to a company? Choose 2 answers.

Employee morale hit an all-time low when Scott, the line supervisor, ignored repeated instances of harassment by certain employees & Sweet Home Diner lost half of its business when the community became outraged with the owner for failing to stop the racist social media postings of the restaurant manager.

What are the two types of actual authority? Choose 2 answer choices.

Express and Implied Authority

The Bankruptcy Code exempts (limited to a certain dollar amount) which type of property?

Jewelry

If harm is done by an agent, and it is discovered that this agent has been convicted of the same harm before at a previous job, what might a principal be liable for?

Negligent hiring

When does title to stolen goods transfer?

Never.

Miranda received a draft in the mail and is concerned it is not valid. What issue or feature could invalidate a draft?

No drawee is mentioned.

Does the First Amendment protect defamatory speech online, provided it is anonymous?

No, because defamatory speech is unlawful.

You've spent the last eighteen months writing a how-to book for entrepreneurs who want to establish their own business. As you put the final editing touches on the book, you start thinking about how you can protect your book, and how you can make sure you receive the profit from it.What do you think you should do to make sure only you can profit from your work?

Nothing; copyright protection happens automatically once the work is in tangible form.

Which situation would be considered sufficient consideration for a contract to exist?

Pam agrees to pay Derek $500 if he does not sit next to her in class anymore.

To prevent others from making, selling, or using an invention, an inventor should seek what type of intellectual property protection?

Patent Protection

What are two types of challenges an attorney can make during voir dire? (Select 2 answers)

Peremptory challenges & Challenge for cause

What is a document called that is filed with the court to state the position of the plaintiff or the defendant in a lawsuit and ask for relief from the court?

Pleading

Under the Uniform Commercial Code (UCC), what is the only required term for a valid sales contract?

Quantity of goods being sold.

What is the term for when a party to a contract performs his duties exactly according to the terms of the contract?

Strict performance

How is substantial performance involved with the classification of material breaches versus immaterial breaches?

Substantial performance involves an immaterial breach.

After all pleadings are filed and discovery is completed, a party may ask the judge to rule in their favor on the basis that there are no genuinely disputed facts and the judge need only rule on the law. The motion asks the court for a:

Summary Judgement

In what situations does the UCC overrule common law?

The UCC applies to contracts that sell goods.

What is required for a writing to be legally sufficient to form a contract? Choose 2 answer choices.

The UCC requires that the quantity to be included & the writing must provide evidence of agreement.

What is required to form an agency relationship?

The agent and principal must agree to enter the relationship.

Why would a superseding cause relieve a tort defendant of liability?

The defendant could not have reasonably foreseen the event.

What must a plaintiff show to be awarded a quasi-contract in a lawsuit?

The defendant was unjustly enriched.

What key factor determines what remedies are available for a seller in a sales contract when there is a breach by the buyer?

The location of the goods involved in the breach

Which of the following scenarios illustrates a business world without agency relationships?

The owner prepares tax returns.

Why would parties use accord and satisfaction regarding a negotiable instrument? Choose 2 answer choices.

The parties might wish to avoid a lawsuit & The parties could wish to end the obligation without further conflict.

What authority does the federal government have under the Commerce Clause? Choose 2 answer choices.

To regulate international commerce & To regulate commerce on the national and local levels.

What type of acceptance requires an affirmative action for the offeree to accept that offer?

Unilateral Contracts

Under the Uniform Commercial Code (UCC), risk of loss passes to the buyer:

When the contract designates it to pass.

If a user of a social media app, publicly posts content incriminating themselves, may police use that as evidence against the individual?

Yes, because there was no reasonable expectation of privacy in the post.

Is a principal liable for the tortious actions of the principal's agent?

Yes, but only if the principal authorized the tortious conduct.

If an anonymous online user commits defamation against an individual or business, may that individual or business compel the Internet Service Provider to reveal the identity of the user?

Yes, if ordered to do so by a court.

Is a principal under a duty to compensate an agent who works on the principal's behalf?

Yes, if the contract requires compensation.

You agree to paint your neighbor's house for a certain price. You get ninety percent of the painting done and then have to leave town for your real job. Your neighbor is pretty mad because you didn't finish the job, and says she is not going to pay you a penny! What do you think will happen when you try to collect payment from your neighbor for painting her house?

You will probably receive the price you agreed on, less the amount it will take for her to have the painting finished.

What does mens rea require?

a particular state of mind

Which of the following meets the signature requirement on a negotiable instrument?

a symbol or mark used by the maker or drawer with the intent to authenticate the instrument

Which of the following is an equitable remedy for breach of contract?

an order for specific performance

Failure to pay a debt for having a car bumper replaced and painted to match the car would lead to:

artisan's lien

The role of a mediator is to:

assist parties in a dispute in resolving their differences out of court.

In contrast to federal courts, state courts have what kind of jurisdiction?

broad

Under the Uniform Commercial Code (UCC), when must a depositary bank pass a check on to the next bank in the check collection process?

by midnight of the next banking day following its receipt

For an original work of authorship, such as a book, song, poem, article, recording, or other work, an author would seek the protection of a:

copyright.

What happens when a negotiable instrument has either been canceled by the holder or the holder is paid in full?

discharge of liability for all parties

Forcing a party to agree to the terms of a contract through the use of threats or blackmail is called:

duress

Personal defenses to liability for payment on a negotiable instrument are:

effective against a holder, unless they are a holder in due course.

State statutory law is created by:

elected members of the state legislature.

What is the system of government called in which states form a union and share sovereign power with the central government of the union?

federalism

A person may be subject to which of the following penalties for crimes committed under the Racketeer Influenced and Corrupt Organizations Act (RICO Act)?

fines, imprisonment, and forfeiture of property

What does venue refer to?

geographic location of the court

An employee who violates a company's social media policy by public posting negative comments about the company:

may be fired.

If a trial court judge is deciding an issue that has never come before the court (a case of first impression), they:

may create new precedent.

Ethics is the consideration of how one should act, based on which of the following concepts?

morality, or principles of right and wrong

Patentability requires the invention be:

novel, non-obvious, and useful.

The Lanham Act:

protects the rights of trademark holders.

Employers have the right to monitor emails by their employees when: (Select two)

the employer has provided the computer on which the emails are sent & the company has provided the email server on which the email was sent.

Under the principle of rights, the term "rights" refers to:

the fundamental rights of human beings.

A business using a word, phrase, symbol, or design to identify and distinguish its brand of goods would protect that branding with a:

trademark

The federal and most state judicial branches have at least these three levels in the court system:

trial court, intermediate appellate court, and highest appellate court.

A company exhibits responsible corporate citizenship when it:

uses its wealth and influence to benefit society as a whole.

A contract for an illegal purpose is

void

Which of the following is a duty or obligation imposed on a bank customer by the Uniform Commercial Code (UCC)? Choose 2 answers.

1. A bank customer must review a bank statement in a reasonable period of time. 2. A bank customer must notify the bank of the forgery or alteration of the customer's check.

A product is unreasonably dangerous to consumers when it meets which of the following conditions? Choose 3 answers.

1. A less dangerous alternative was available but was not used by the manufacturer. 2. The manufacturer failed to adequately warn the consumer about the dangers of the product. 3. It is inherently dangerous but is even more dangerous than an ordinary consumer would expect.

How do parties determine which is the appropriate law for a mixed contract? Choose 2 answer choices.

1. Common law is appropriate for some mixed contracts. 2.The predominant-factor test dictates the proper choice of law.

What is the evaluation standard for a personal satisfaction contract? Choose 2 answer choices.

1. Objective, reasonable person standard 2. Subjective personal taste

What does agency by ratification require? Choose 2 answer choices.

1. The principal affirms the agent's entire act, not just a portion. 2. The principal must have the legal capacity to contract.

What is the standard to which most personal satisfaction contracts must adhere? Choose 2 answers.

1. satisfaction of a reasonable person 2. satisfaction of the receiving party (buyer)

How much time off does the Family and Medical Leave Act (FMLA) provide?

12 weeks of unpaid time off

What authority is ended with the termination of an agency relationship?

Actual Authority

For what terminations does a principal NOT have a duty to notify third parties?

Agencies terminated by operation of law.

What party can enforce a negotiable instrument?

An ordinary holder

An employer requires a college degree to work in any position in the company. What part of Title VII could apply?

Disparate impact.

Which of the following laws regulate wiretapping on a federal level?

Electronic Communications Privacy Act

What must a plaintiff prove in an intentional tort case?

Intent to commit the act.

What is the difference between legal remedies and equitable remedies for breach of contract?

Legal remedies are monetary while equitable remedies are non-monetary.

May the government terminate a government employee who speaks out against policies and procedures?

No, if the matter is one of public concern.

What is the result of a contract in which both parties are wrong about a material fact of the contract?

The contract is voidable.

The ethical model that focuses on the outcome of a decision, as opposed to the motives behind the decision, is:

Utilitarianism

Under which theory of ethics would a decision be ethical if it provides the greatest benefit for the largest number of individuals?

Utilitarianism

What type of contract exists when at least one party has the option of canceling it?

Voidable

What is the process of interviewing prospective jurors and either approving of or challenging a person's impartiality toward service on a particular jury?

Voir dire

You haven't used your professional camera in a while, so you offer to sell it to your friend who just started photography classes at the local college. Later in the day, you start having second thoughts. You call your friend and tell her that you changed your mind, and the camera is not for sale after all.What do you think would happen if your friend tried to enforce your offer and make you sell her the camera?

Your friend cannot force you to sell her the camera because you let her know you changed your mind before she accepted the offer.

What does the reasonable person standard impose on a person in a negligence lawsuit?

a duty to act as a reasonable person would in the same circumstances

In a negligence action, a plaintiff may seek an award for compensatory damages as a result of which of the following? Choose 3 answers.

actual missed days at work, medical bills & the loss of a spouse's companionship

The first sale doctrine:

allows a person who owns a lawfully made copy of a copyrighted work to sell the copy.

When the parties in a dispute present their arguments and evidence to a neutral third party who then renders a decision, it is called:

arbitration

Assuming there are not enough assets to pay the debts of an entire class of creditors, creditors must:

be paid at a pro rata share.

When a defendant faces a negligence lawsuit, what defenses are available? Choose 3 answers.

contributory negligence, assumption of risk & comparative fault

A secured party who has control will prevail over a secured party who has only filed for these types of collateral:

deposit accounts, investment property, and letter-of-credit rights.

Which of the following are methods of preventing unethical behavior? Choose 2 answers.

establishing a company code of ethics & terminating an employee for unethical behavior

Which of the following types of trademarks are in the correct order, from highest protection to lowest protection?

fanciful, arbitrary, suggestive, descriptive, generic

The process by which a creditor may take possession of (and usually sell) collateral to satisfy an unpaid debt is called:

foreclosure

An arbitrator is different than a mediator because an arbitrator:

has the authority to make a binding award.

What is an exception to the statute of frauds?

promissory estoppel

Under the Uniform Commercial Code (UCC), which term in a written contract for the sale of goods is essential?

quantity of items being purchased.

If a secured party has perfected its interest, it has a legal interest against:

the debtor and other creditors.

An attached security interest will legally protect a creditor against:

the debtor.

What parties could have a right to enforce a negotiable instrument? Choose 3 answer choices.

1. An owner of the instrument who is not in possession of the instrument 2. Anyone who falls under the Shelter Rule, even if he or she is a non-holder 3. A holder who lost a check

Article 2 of the UCC applies to what types of contracts? Choose 2 answer choices.

1. Contracts for the sale of goods and services when it is predominately goods 2. Contracts for the sale of goods.

In what situation could a party enforce strict performance? Choose 2 answer choices.

1. When the parties specifically agree to it in the contract. 2. When the requirement is reasonable

What are the legal differences between a material breach and an immaterial breach of contract? Choose 2 answer choices.

1. Whether the court will discharge the contract 2. The level of the performance of the contractual obligations

What factors are important for a buyer to determine when deciding which remedies apply when a seller breaches a sales contract? Choose 2 answer choices.

1. Whether the seller delivered nonconforming goods. 2. Whether the seller failed to deliver the goods

What implied terms do all contracts include? Choose 2 answers.

1. an implied covenant of fair dealing 2. an implied covenant of good faith

How may an agency relationship be formed? Choose 3 answers.

1. by express written agreement between agent and principal 2. implied by the conduct of the principal 3. implied by the conduct of the principal

Which of the following are implied warranties? Choose 3 answers.

1. prior dealing or trade usage 2. merchantability 3. fitness for a particular purpose

Which amendment to the U.S. Constitution is the primary source of equal protection provisions in employment law?

14th amendment

What situation would NOT be regulated by the federal government under the Commerce Clause?

A state requiring lawyers practicing in the state to be licensed

Federal courts have exclusive subject matter jurisdiction over which of the following? Choose 2 answer choices.

Bankruptcies & Patent/trademark/copyright cases

A jury finds Joe not guilty of murder. Investigators have found new evidence proving Joe's guilt, so the prosecutor in the case wants to charge and try Joe again. What prevents the government from doing this?

Double Jeopardy

What must a prosecutor prove when the law requires mens rea?

Intent

Lilly hired Harris Lawn Service to cut her grass one summer, and paid through automatic charges to her credit card. After taking three months off for winter weather, Harris staff cut Lilly's grass for four weeks in a row before charging the fees on Lilly's credit card. Lilly protested the charges, stating she did not hire the company to cut grass for the second summer. Harris sues Lilly. What law applies? Choose 2 answer choices.

Lilly's silence is acceptance because of the parties past dealings & Lilly's silence is acceptance because the offeree accepted the benefit offered.

What restrictions on business speech are allowed by the First Amendment? Choose 2 answer choices.

Limitations on advertisements for alcohol & Some advertising venues for tobacco

What are the best remedies for wrongful termination in the case of someone who found another job three months after being fired? Choose 2 answer choices.

Lost benefits & Lost Wages

After a day at the lake, you stop on the way home to gas up your car and discover your debit card is missing. Because it is late in the day on a Sunday, you wait until the next morning to contact the bank. The bank employee checks your account and discovers that $600 in purchases have been made overnight!Do you think you will be responsible for the $600 in unauthorized charges on your account?

No, you will be responsible for only $50.

At the federal level, the primary legislation that protects workers from dangerous conditions on the job is:

Occupational Safety & Health Act (OSHA)

What is the term for a contract agreement in which an offeror promises to pay after the occurrence of a specified act, and the offeree is not required to respond in words?

Unilateral Contract

What type of contract is created by an agreement that is oral when it is required by the Statute of Frauds to be in writing?

Voidable

In what situations does federal law preempt state law? Choose 2 answer choices.

When Congress passes a law and creates an agency to enforce that law & When Congress passes very detailed laws

In what situation is a minor most likely to be able to terminate a contract?

When a minor order books for school.

You decide to sell your antique Mercedes, so you post an ad on Facebook Marketplace. Your friends advise you to require payment with a cashier's check only and to not take any personal checks. You get your first potential customer who comes out and looks at the car. She offers you the full price you are asking but wants to pay with a personal check. Why do you think your friends advised you to require payment with a cashier's check instead of a personal check?

With a cashier's check, the bank has already committed itself to pay the amount stated on the cashier's check.

After eating at a local restaurant, in which you had a heated disagreement with the owner, you decide to go online and post a review. Your review states that not only would you never eat their again due to their unprofessionalism, but that your food was bad and the restaurant was so unclean that it should be inspected by the health department, because you "saw a rat run across the floor of the kitchen." If your review is posted anonymously, does the restaurant owner have any legal recourse so they may find out who you are and possibly sue you for defamation?

Yes, the business may have the right to uncover your identity in order to bring a suit against you.

You lost your high-paying corporate job six months ago when the company went out of business. After being out of work for four months, you finally find a job, but make much less money than you did before. At the same time, your debts have been rising dramatically due to some medical issues that resulted in large doctor and hospital bills. You start to consider filing for bankruptcy but are concerned that if you file for bankruptcy, you will lose your car. How would you get to work then? Do you think there is anything you can do to ensure that you don't lose your car if you file for bankruptcy?

Yes, you can reaffirm the debt.

Which of the following activities is an example of corporate social responsibility?

establishment of a foundation that funds high school educational initiatives

Employers are not required to make accommodations for employees:

if that accommodation causes an undue hardship on the business.

A business will be able to protect its trademark for how long?

if unregistered, as long as it is in use

A contract for a purpose that causes the parties to violate a law is:

illegal and void

Sal has ordered 100 pounds of shrimp for his restaurant from Sam every Friday for 5 years and has always paid that week's market price. One Friday, Sal decides to take a vacation but doesn't tell Sam. Sam claims they have a contract, even though it was never written down. What kind of contract do they have?

implied - in - fact.

Which of the following is the lowest priority of claims in bankruptcy?

medical debts

Title VII The Civil Rights Action of 1964 applies to:

private and some federal government employers.

In which of these situations does an express warranty exist? Choose 2 answer choices.

1. Crane Outdoor Shop sells only online. The product postings include detailed descriptions of the features, but no pictures. 2Crane Outdoor Shop shows products on the showroom floor as examples of what they sell, but all purchases are made online and another sample of that item is delivered to the customer's home.

Which feature is a requirement for a negotiable instrument to be a valid draft instrument? Choose 2 answer choices.

1. Drafts must state a definite amount of money to be paid. 2. Drafts must designate a financial institution.

Millie did not sign a negotiable instrument. How could Millie be liable for an instrument without having signed it? Choose 3 answer choices.

1. Millie decided she liked the terms of the negotiable instrument and ratified the instrument. 2. Millie's authorized agent signed the instrument. 3. Millie was negligent by allowing people to think that she may have signed the instrument.

Who may enforce a negotiable instrument? Choose 2 answers.

1. the holder of the instrument. 2. a person not in possession, but who is entitled to enforce a lost, stolen, or destroyed instrument.

Which of these contracts would be enforceable, despite the existence of a mistake? Choose 2 answer choices.

1.Christopher agrees to sell his washer and dryer to Ella in "as is" condition. Ella thinks the set is in excellent condition and is willing to take a chance on buying it. Neither works after a few weeks of use. 2. Christopher agrees to sell his washer and dryer to Ella. Ella thinks the dryer uses gas instead of electricity, but she is incorrect.

What are the main provisions of the Immigration Reform and Control Act (IRCA) enacted in 1986? Choose 2 answers.

1.The IRCA made it illegal to hire, recruit, or refer for a fee someone not authorized to work in the United States. 2.The IRCA provided amnesty to certain groups of immigrants living illegally in the United States at the time.

Which of the following is the provision of the U.S. Constitution that establishes federal law precedence over state law?

the supremacy clause

In general, which of these contract terms is NOT required to meet the requirement of definiteness?

Acceptance

What conditions must be met for an offer to be legally accepted? Choose 2 answers.

Acceptance must be unequivocal with no requests for changes in the offer & It may only be accepted by the intended offeree or the offeree's agent.

Which of the following workers are generally NOT eligible for workers' compensation? Select 3 answers.

Agriculture, Temporary & Domestic Workers.

The earliest international agreement that provided copyright protections among the signatories to the agreement was the:

Berne Convention

In the United States, who creates federal statutory law?

Congress

What is preemption in the Supremacy Clause?

Federal law is supreme over state law

In what stages of the criminal process could a jury be involved? Choose 2 answer choices.

Indictment & Trial

To whom does the Electronic Funds Transfer Act apply?

The EFTA applies to financial institutions and customers.

What is the main provision of the Immigration Act of 1990?

The Immigration Act of 1990 placed caps on the number of visas (entry permits) that can be issued to immigrants each year.

What is the test for whether a contract is governed by the Statute of Frauds because of the one-year rule?

The contract must be objectively impossible to perform within one year.

Employers must make which of the following to accommodate the religious practices of employees?

A reasonable accommodation.

What is a Federal Reserve Bank called that acts as only a clearinghouse during the check collection process?

intermediary or collecting bank

What are the differences between legal and equitable remedies? Choose 2 answer choices.

1. One is monetary. 2. One requires actions instead of damages.

A pledge has occurred in which of the following situations?

Sarah allowed her bank to hold a valuable painting that she owns, in exchange for the bank loaning her money.

Which of the following is the proper order for the payment of bankruptcy claims by class from highest priority to lowest priority?

Secured claims, priority claims, unsecured claims

A reasonable expectation of privacy requires: (Select 2 answers)

Societal acceptance of the expectation of privacy as reasonable & An individual's actual, subjective expectation of privacy

The default provision of the Uniform Commercial Code (UCC) is that, unless otherwise specified, title to goods being sold passes when:

The goods are physically delivered to the buyer.

How does a principal become liable to third parties on contracts?

The principal's agent has the authority to bind the principal in a contract with a third party.

You are the manager of a sandwich shop called Buns-R-Us, which has twelve employees. The corporate office has a very robust ethical code of conduct for employee behavior and has trained each employee on it. On a personal level, you disagree with some of the rules. And, because you are the manager, you choose not to follow them. When your employees see that you, as the manager, do not follow the rules, what's the likely consequence?

They will likely not follow the rules either.

What characteristics must an item possess to be classified as a "good"? Choose 2 answers.

It must be moveable and tangible.

Under which principle of ethics would a person consider whether his or her action is one that every other person should take?

Kant's categorical imperative

Cari discovers that Lucas has a criminal background and shares this information with others where they both work. Which intentional tort could apply here?

Public Disclosure of Private Facts

What is the lowest level of review by a court to determine whether a government action unconstitutionally infringes on protected rights?

Rational Basis Review

Under which of the following could an online user reasonably expect to maintain privacy protections under the Fourth Amendment? (Select two)

when the user is entering in their credit card information to an online store & when the user posted to a private online journal which did not allow for sharing or followers

The holder of a utility patent may protect their rights for:

20 years from the date they apply for the patent.

The reasonable person standard can vary based on what factors? Choose 2 answer choices.

The occupation of the defendant & Facts and circumstances of the situation.

For a party to be subject to contractual liability on a negotiable instrument, what must occur?

The party must sign the instrument.

An implied warranty of fitness for a particular purpose may be properly disclaimed by which of the following?

a written "as is" statement

Which mistake is likely to be voidable?

bilateral mistake

What does respondeat superior dictate?

A principal can be held liable for employee actions, even if the principal is not at fault.

When used as collateral, a laptop computer used by a family for email, games, and schoolwork would be classified as:

Consumer goods

Which type of lack of capacity is easiest to prove?

Minor Status

What business speech is protected by the First Amendment?

Some types of advertising

In the United States, who creates federal statutory law?

State legislatures

Breeze Manufacturing agrees to purchase goods from Hawkins Inc. In what situation could Breeze reject a shipment of goods from Hawkins under the perfect tender rule?

The goods do not meet the specifications detailed in the contract.

You've decided to buy some rental property but know very little about the law regarding landlord-tenant relations. You head to the local law library to do a little research on the subject. The law librarian is extremely helpful, and with his help, you have lots of reading material about landlord-tenant law! You discover there are several kinds of law and that some laws are procedural and other laws are substantive. What do you think procedural law covers?

The methods of enforcing the rights established by substantive law.

How may a revocable offer effectively be revoked? Choose 2 answers.

The offeror may take an action that contradicts the offer and make that known to the offeree & The offeror may withdraw the offer with a clear expression.

Which of the following types of intellectual property protection usually has a set term of 20 years?

patent

A written or authenticated security agreement is a requirement when creating a secured transaction unless:

the secured party has possession or control of the collateral.

A business landowner has a duty to reasonably maintain his or her property for safety. When the business invites guests or customers onto its premises, it has a duty to:

warn invitees of and reasonably protect them from a foreseeable risk of harm or danger from something on the premises.

Which of a bank's duties pertain to a properly signed and valid check? Choose 3 answer choices.

1. Stop-Payment Orders 2. Death of a customer 3. Stale Checks

What must a party show to win a substantial performance lawsuit? Choose 2 answer choices.

1. The breach was not intentional. 2. He or she acted in good faith.

What factors influence the remedies available to a seller when the buyer breaches a contract? Choose 3 answers.

1. which party has possession of the goods 2. whether the buyer has rejected or accepted the goods 3.whether or not the goods are in transit

What is the time limit for commencing an action for breach of contract under the Uniform Commercial Code (UCC)?

Four years

What factor should a plaintiff consider when deciding which interference tort applies to a situation?

If the plaintiff had a contract with another party who breached the contract.

What rights does a third-party beneficiary to a contract hold in regard to that contract?

If the third party is an intended beneficiary of the contract, the third party has the right to sue either the promisor or the promisee.

What is the principle that is applied to determine how much compensation a party receives in a quasi-contract settlement?

quantum meruit

Tort law provides a civil remedy for violations of which of the following protected interests? Choose 3 answers.

the destruction of or damage to property, personal and physical safety & personal or business reputation

What factors are used to judge if consideration is adequate to ensure a fair bargain? Choose 2 answers

Promises exchanged may not be a preexisting duty & Promises must be made with voluntary consent.

Which of the following are objections that a court may have to a discharge of the debtor's obligations? Choose 3 answers.

1. An unsecured creditor may object to being excluded from the distribution if she had not been notified of the bankruptcy. 2. An unsecured creditor may object to being paid after a secured creditor if his claim was filed first. 3.A secured creditor may object to being excluded from the distribution if she had not been notified of the bankruptcy.

Ben is very mad at his supervisor because of pay cuts. Ben plots to damage some equipment so his company will have to pay him overtime compensation to repair it. In which of these situations could Ben be found guilty? Choose 2 answer choices.

1. Ben walks over to the equipment holding a heavy sledgehammer he brought from home, but at the last minute, decides against hitting the equipment. Instead, he trips and falls, slamming the sledgehammer into a crucial part of the equipment, which ruins the machine. 2.Ben carries out his plan, but there are no witnesses.

What are the fiduciary duties of an agent to her principal? Choose 3 answers.

1. Loyalty 2. Accounting 3. Obedience

Which of the following are correct statements about the writing requirement of a negotiable instrument? Choose 2 answers.

1. may be any intentional reduction to a tangible form 2. may be a typed, printed, or handwritten document

Which posters does the Occupational Safety and Health Act (OSHA) require most businesses to display? Choose 2 answers.

1. records of occupational illness and injuries. 2. post certain notices in the workplace.

The Electronic Fund Transfer Act (EFTA) provides for which of the following? Choose 3 answers.

1. recovery of damages from a bank for an EFTA violation\ 2. protection for unauthorized electronic transactions if timely notice is given 3. that a bank must investigate an EFT complaint by a customer

An author may expect to receive copyright protection for the life of the author plus:

70 years

Which of the following qualifies as a "good" under Article 2 of the Uniform Commercial Code?

A commercial freezer unit.

What does the ratification of an agency relationship include?

A party affirms the contract another person made with a third party.

Tyler entered into a contract with Leah to provide supplies for her business. What form can the writing of the contract take? Choose 3 answer choices.

An email, an invoice & a check.

Nicole transferred a negotiable instrument to Andy. Andy later sues Nicole alleging a breach of presentation warranty. What could Andy claim Nicole has violated?

Andy could allege that Nicole was aware of an unauthorized signature.

Which international agreement requires its member countries to establish border procedures for searching international shipments of goods?

Anti-Counterfeiting Trade Agreement

During self-help, a secured party may take the secured collateral from a debtor:

As long as they do not breach the peace.

Shawn will pay Craig with a negotiable instrument, and Shawn plans to involve a third party in that process. What instrument should he use? Choose 2 answer choices.

Check & Draft

Internet Service Providers (ISPs) are not liable for the content posted by someone on a neutral forum under the:

Communications Decency Act of 1996

Which of the following are the two primary types of damages available for an intentional tort? Choose 2 answers.

Compensatory damages & punitive damages

John approaches a stranger standing at John's car who appears to be about to break the window. Before the stranger sees him, John knocks him to the ground. What should John claim as a defense to the criminal battery charge?

Defense of property

Who can terminate an agency relationship?

Either the agent or the principal may terminate.

What actions are valid exceptions to the perfect tender rule? Choose 3 answers.

1.The seller may choose a different means of delivery if the agreed upon means becomes unavailable or impractical. 2.The seller has the right to cure nonconforming goods within the contract time for performance. 3.The contract is unenforceable if the goods which had been identified to the contract are destroyed.

What is the bank called that receives a check from another bank in the check collection process? Choose 2 answers.

1.intermediary or collecting bank, if it only passes the check on without paying it 2.

Check fraud may occur through which of the following actions? Choose 2 answers.

1.writing checks on two different banks to cover the float of funds 2. forging a signature

What is true of corporate political speech? Choose 2 answers.

Political donations are protected by the First Amendment as types of corporate political speech. & Corporate political speech is protected by the First Amendment.

Samuel has mental competency issues. Samuel entered into a contract with Beth, but now Samuel is petitioning the court to terminate the contract. What options does the court have in ruling in the case? Choose 2 answer choices.

The contract is void if Samuel has been previously determined to be mentally incompetent & The contract is voidable if Samuel was incompetent at the time the contract was formed.

In a check collection process that involves multiple banks, which bank is the first to receive a check?

The depositary bank

Which of the following will meet the requirement for a negotiable instrument to contain an unconditional promise or order to pay?

The instrument may not contain any condition to payment and may not refer to another writing that governs the payment.

The reasonable person standard applies to which of the required elements to be proved in a negligence case? Choose 2 answer choices.

Duty of care & Breach of Duty

Which activity is a duty or responsibility of a bank? Choose 2 answer choices.

Duty to detect forged signatures & Duty to report transactions to customers.

In which of the following must a court order be obtained to secretly record a conversation under federal law?

When the police want to record the conversation

In what situations would a court be likely to award a quasi-contract? Choose 2 answer choices

When the unjust enrichment is a relatively insignificant amount of money & If the defendant was unjustly enriched and played a part in deceiving the plaintiff.

In which of the following might an individual have a reasonable expectation of privacy online?

When they are entering their credit card information.

Which of the following types of intellectual property may only be owned by a business?

a trade secret

Jan claims she was having a hallucination as the result of her clinically diagnosed schizophrenia while committing a crime. This defense is known as:

Insanity

After class one day, you are in a hurry to meet a friend and accidentally leave your textbook in the classroom. You soon realize you do not have your book and return to the classroom to get it. Unfortunately, the book is gone. You go to lost and found, but no one has returned it. Later, you find out that someone took your book and sold it. What crime was committed by the person who took your book?

Larceny

Clarence sneaks into his neighbor's yard and takes a bike to sell for cash. What crime could he have committed? Choose 2 answer choices.

Larceny & Theft

What are the three levels of scrutiny used by courts to determine the constitutionality of a government action? Choose 3 answers.

intermediate scrutiny, rational basis review & strict scrunity

White-collar crime, which is usually committed by corporate or government officials, typically involves crimes committed for financial gain, such as: Choose 2 answers.

mail and wire fraud & embezzlement

Which of the following qualifies for protection under the first sale doctrine?

Lucia purchases a book and later resells it to her friend.

Which of the following are the TWO types of ADR that results in parties voluntarily signing a settlement agreement rather than proceeding to trial? Choose 2 answer choices.

Mediation & Negotiation

Which of the following provides notification to a criminal defendant in custody of the right to an attorney?

Miranda Warning / Rights

In 2005, bankruptcy reform laws:

required debtors to pay more of their debts in bankruptcy.

What are the elements of consideration? Choose 2 answer choices.

something of value from each party & an exchange to which the parties agree

What type of speech does not receive First Amendment protections? Choose 3 answers.

speech that incites lawlessness, obscenity & threats to the president of the United States

Under the SCA, when may an employer monitor electronic communications of employees? (Select 3 answers)

the employee consents, If the employer supplied the computer on which the monitoring is taking place & When the monitoring occurs as part of the ordinary course of business.

In ethics, compliance with the law is considered:

the moral minimum

How does the punishment for a misdemeanor differ from the punishment for a felony?

Misdemeanor fines are lower and imprisonment is usually limited to less than one year in jail.

Shawn is creating a negotiable instrument to give to Craig and Shawn does not want to involve a financial institution. Which type of negotiable instrument will Shawn make?

Promissory Note

What is the term for the doctrine under which a seller must deliver goods that conform exactly to the terms of the contract?

The perfect tender rule.

Which of the following elements of a negotiable instrument are required to be definite? Choose 2 answers.

1. The promise order to pay. 2. The amount.

When is an agent liable on a contract that the agent entered into in the business of the agent's principal? Choose 3 answers.

1. when the principal is undisclosed 2. if the agent entered into the contract in a personal capacity 3. when the agent is acting without authority

Which of the following defenses to negligence is used to assign liability proportionately to the level of harm from each party's own conduct?

comparative fault

Which party is involved with a certificate of deposit? Choose 2 answer choices.

Payee & Maker

Online activities and content may be legally regulated through the following laws or mechanisms: (Select two)

The First Amendment to the Constitution & Tort Law

Under the UETA, if a party does not follow the security procedures and then fails to detect an error, what happens?

The party who followed the procedures can avoid the effect of the error.

If a consumer falls when a step on a new ladder breaks, what warranty could apply?

implied warranty of merchantability

To meet the element of intent, a plaintiff must prove that the defendant:

knowingly committed the act or knew with substantial certainty that his or her actions would result in the consequences.

Which branch of government has the authority to enact law?

legislative

Which of these types of contracts must be in writing under the requirements of the Statute of Frauds? Choose 3 answers.

promises made in consideration of marriage, contracts for the sales of land & collateral promises to pay the debt of another person.

What is the primary purpose of the Statute of Frauds?

requiring written evidence of agreements concerning important transactions

Granting a Motion for a J.N.O.V. means:

the jury verdict was wrong and so clearly against the weight of the evidence that no reasonable person could have found as the jury did.

What elements are required for an offer to be effective under the common law? Choose 3 answers.

1. The terms of the offer must be reasonably definite so that all parties understand them. 2.The offeror must intend to be bound by the offer. 3.The offer must be communicated to the offeree.

How does the 1980 United Nations Convention on Contracts for the International Sale of Goods (CISG) differ from the Uniform Commercial Code (UCC)? Choose 3 answers.

1. Under the UCC, an irrevocable offer must be in writing, but under the CISG it can be oral. 2. The CISG does not apply to consumer sales. 3. The CISG is stricter on requiring mirror image acceptances.

Which of the following must a plaintiff prove when suing based on an implied warranty of fitness for a particular purpose? Choose 2 answers.

1. the buyer told the seller of his or her particular needs from the product 2. the seller stated the product would meet the buyer's particular needs

Which of the following is a valid offer?

Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's lease ends in two months. Arun wants to think about it and six days later has not yet responded.

You go out drinking and playing cards with your buddies. After you have consumed a huge amount of alcohol, you agree to sell your motorcycle to your buddy. The next morning, after you sober up, your buddy tells you what you did. Do you think your buddy can legally hold you to the deal to sell him your motorcycle?

No, he can't, if you were so intoxicated that you could not form the mental capacity to enter into a contract, and your buddy knew you were intoxicated.

Which of the following are examples of an electronic fund transfer (EFT)?

a transfer of funds through an automated teller machine (ATM), a computer, a smart phone, or online banking

The CAN-SPAM Act regulates unsolicited commercial emails by: (Select two)

requiring opt-out systems & prohibits deceptive email headings

When making a decision using the stakeholder theory of management, a business professional would place more weight on which of the following? Choose 2 answers.

the impact of its decisions on employees over the profitability of the business & the harm to customers from using the company's product over profits

Which of the following represent two of the potential financial costs of reporting unethical behavior? Choose 2 answer choices.

the loss of top performing employees & penalties, fines, and lawsuits against the company

What rights does the perfect tender rule give buyers of goods? Choose 2 answer choices.

1. The right to accept delivery of all of the goods 2. The right to reject the seller's goods if the goods are not exactly as described in the contract

What are the types of situations that may qualify as grounds for discharge due to impossibility? Choose 3 answers.

1. The specific subject matter of the contract is destroyed. 2. A party to a personal contract dies or becomes incapacitated. 3. The subject matter of the contract becomes illegal.

In what ways does Article 2 of the Uniform Commercial Code (UCC) differ from contract rules under the common law? Choose 3 answers.

1. Under the UCC, merchants have more flexibility in having open terms. 2. Under the UCC, the only required definite term is quantity of product being sold. Other terms such as price and delivery time can be left open. 3.Under the UCC, any manner of showing agreement to contract is accepted, but under the common law acceptance must mirror the offer.

Quon and Bert have signed a contract for Bert to mow Quon's grass every week in June, July, and August for a price of $40 per week. They have agreed to all the necessary terms, but Bert has not yet mowed because it is still May. What type of contract do they have?

Executory

An employer reacts to an employee's report of a Title VII violation by cursing and making offensive jokes about that employee and moves the employee to another department. What part of Title VII could apply? Choose 2 answer choices.

Hostile work environment & Retaliation.

Isabel is 17 years old and wants to stop paying for the use of the local gym, but wishes to continue teaching classes. Her contract with the company includes terms regarding her employment and use of the facility. What must she do to properly disaffirm the contract? Choose 2 answer choices.

Isabel must disaffirm both the gym membership obligations and the employment terms in the contract & Isabel must let gym staff know she is terminating the contract..

Which of the following are considerations of corporate social responsibility? Choose 3 answer choices.

Issues within the community where a business is located, Environmental impact of a business & Ethical treatment of employees and suppliers.

The Palace Restaurant purchases goods from Pluto Restaurant Supply House on a regular basis. Pluto breaches the contract with Palace when Pluto runs out of the cooking equipment Palace agreed to purchase. What remedy is NOT available to Palace?

Reclaim the goods from Pluto's other customers

Fred and Wilma enter into a contract for horse riding lessons. Fred accidentally types the price for lessons to be $4.00 each instead of $44.00 each. Wilma wishes to enforce the contract at $4.00 per lesson. Which remedy would be most effective?

Reformation

You have a small business supply store. You order fifty boxes of paper from Hammerhill Paper Supply and tell them you need the paper delivered within four days, and Hammerhill agrees to provide the paper within four days. Neither you nor Hammerhill mentions the price of the paper, though. How do you think the price of the paper will be determined if you get into a legal dispute with Hammerhill about it?

The court will determine a reasonable price at the time of delivery.

You and a friend are taking a road trip during summer break and decide to stop for lunch. You choose your favorite fast food restaurant. You both order a burger, fries, and a soft drink and chow down. In the afternoon, as you are continuing your journey, both of you begin to feel stomach cramps. They get worse so you decide to go to an urgent care clinic. The doctor there diagnoses you both with food poisoning and prescribes medication. You fill the prescription, check into a hotel, and experience several days of agony. You later discover the cook at the restaurant undercooked the beef in your burger, which caused your food poisoning. You sue the restaurant. Is the restaurant liable to you or is only the employee liable?

The restaurant is liable.

A company issues a laptop computer to an employee for use at the business location only. The employee takes the laptop home to use for his or her own purposes and reports it as lost. This is an example of:

embezzlement

You recently had an accident on the job. Some equipment fell on you causing a serious injury, and your medical bills alone are likely to be over $85,000. You claim an outside vendor who was working on the equipment that day created the problem that caused the injury, and you want to sue. You live and work in Texas, and the outside vendor is a resident of Oklahoma. Where do you think you should file the lawsuit?

in either federal or state court

What is the medium level of scrutiny, sometimes called heightened scrutiny, that a court will use when deciding a case that involves a quasi-suspect class?

intermediate scrutiny

What products are included in the UCC definition of goods? Choose 2 answer choices.

1. Crops harvested by the seller. 2. Oil and gas if the seller removes.

The Uniform Commercial Code (UCC) affects a bank's relationship with its customers in which of the following ways? Choose 2 answers.

1. It allows a bank to refuse to pay a six-month-old check. 2. It permits a bank to pay an overdraft and charge a fee for the service.

What remedies are available to a buyer when a seller refuses to deliver the goods that are the subject of a contract? Choose 3 answers.

1. The buyer may sue to obtain specific performance if the goods are unique or if damages are an inadequate remedy. 2. The buyer may buy other goods and recover damages from the seller. 3. The buyer may cancel the contract.

What is the result if parties agree to a contract orally, but it is a contract that must be in writing under the statute of frauds? Choose 2 answer choices.

1. The contract is voidable. 2. The parties can complete the contract.

To win a wrongful interference with a contract case, a plaintiff must prove which of the following elements? Choose 3 answer choices.

1. The defendant knew a contract between the plaintiff and a third party existed. 2. A valid contract existed between the plaintiff and a third party. 3. The plaintiff experienced injury or damages as a result of the defendant's actions.

How can the legal concepts of accord and satisfaction apply to negotiable instruments? Choose 2 answer choices.

1. The parties can agree to discharge the instrument for less than the stated amount. 2. The UCC provides debtors a way to prove accord and satisfaction.

Which of the following is a PMSI?

A bank provides John a loan to purchase a refrigerator and retains a security interest in the refrigerator.

Through which proceeding do prosecutors obtain an indictment?

Grand Jury

Under the common law, which of the following is true?

In a case of first impression, a judge may use persuasive authorities rather than precedents.

How does larceny differ from embezzlement? Choose 2 answer choices.

It requires that the property is entrusted to the perpetrator & The intent could include taking the property temporarily.

Which of the following lists the steps of a trial in the correct chronological order from beginning to end?

Jury selection, opening statements, plaintiff's case, defendant's case

Linda wants to buy some equipment and needs computer software to use the equipment. Linda asks the salesperson if the software is Mac-compatible because she owns only one computer and it is a Macbook. The salesperson states that the computer software is Mac-compatible and many of his customers use the software on their Apple computers. The software box offers no information regarding operating system requirements. When Linda arrives home and opens the package, she discovers the software is not Mac-compatible. The store states it will not accept returns of opened software, and the salesperson says he was relying on what other customers told him. What will be the result if Linda files a lawsuit?

Linda wins under implied warranty of fitness for a particular purpose.

What remedies are available in the case of a unilateral mistake in making a contract? Choose 2 answers.

Rescission & Reformation

Which of the elements must a plaintiff prove to prevail in a negligence lawsuit?

The plaintiff must address all of the elements.

Which act is violated if an employer refuses to provide health insurance to pregnant females due to the increased cost associated with their pregnancy?

The pregnancy discrimination act

What is the key factor in apparent authority?

The principal's actions

Which of the following are reasons why a motion for a new trial might be granted? (Select 3 answers)

The trial was unfair, the judge committed prejudicial error & excessive damages were awarded.

A purchase money security interest (PMSI) is created when a seller or lender agrees to extend credit to a buyer for all or part of the purchase price of:

consumer goods

If an employee reports illegal behavior of a publicly traded company and is later terminated because of it, under Sarbanes-Oxley they may be entitled to:

reinstatement, back pay, and attorneys' fees.

What does the law require for a personal service contract?

The personal service requirement must be stated.

Marathon Shoe Store Inc. gives notice to HighFlyer Shoe Co. that Marathon cannot pay for its current shoe order and would like to cancel. HighFlyer has not yet finished making the shoes. What options does HighFlyer have to address the breach of contract by Marathon? Choose 2 answer choices.

1.HighFlyer can cease manufacturing any unfinished goods and sell the goods for salvage value. 2.HighFlyer can complete manufacturing and sell the goods, and can sue for any difference between the contract price and the sales price.

At what stage in the criminal process does the defendant typically plead guilty or not guilty?

Arraignment

What are the three steps of a civil trial? Choose 3 answers.

Opening arguments, closing arguments & presentation of testimony & evidence

One of the key purposes of the Digital Millennium Copyright Act (DMCA) is to bring copyright laws into the digital age by regulating digital media copyright infringement. As with non-digital assets, an owner of copyrightable material:

does not need to include a (c) symbol on their digital work in order to be protected from reproduction.


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