Legal Environments of Business

A deposition is or can accomplish any of the following except: (A) the testimony of a witness taken under oath.(B) conducted outside of the courtroom.(C) can be used to impeach a witness.(D) can be used to dismiss the lawsuit.

(D) can be used to dismiss the lawsuit.

All of the following situations reflect a possible conflict of interest except: A CEO offers a contract to a friend without checking competing bids.​​A CEO hires a relative for a company position although another candidate is more qualified.​​ A manager buys a piece of realty that would be suitable for a planned company project.​​ A CEO takes a cut in pay to decrease company overhead.

A CEO takes a cut in pay to decrease company overhead.

In which of the following cases is a contract between A and B binding?

A makes a mistake of material fact, and the mistake is unknown by B.

Bruce opens a used car lot but has difficulty competing with Humdinger Motors, a much larger used car lot down the street. In his newspaper ad, Bruce includes the false statement, "Humdinger sells cars with defective titles." Humdinger experiences an immediate decrease in sales. Bruce has most likely committed the tort of:

Disparagement

a body of law that provides justice when the law does not offer an adequate remedy

Equity

True or False: A motion for a directed verdict occurs immediately after the last pleading is filed.

False

True or False: A promise to make a gift is enforceable.

False

True or False: A requirements contract is too vague to be a legally-enforceable agreement.

False

True or False: A take-it-or-leave-it contract of adhesion is an example of substantive unconscionability.

False

True or False: A trespass to personal property is any unpermitted entry below, on, across, or above the land of another.

False

True or False: An administrative agency whose erroneous decision causes a regulated person or enterprise substantial loss is liable for such loss regardless of whether the agency acted in good faith.

False

True or False: An offer gives the offeror the power to bind the offeree by contract.

False

True or False: An offer is effective only if it is communicated by the offeror in person.

False

True or False: Because a corporation is not a human being, it cannot be convicted of a crime.

False

True or False: Criminal penalties for corporations are based on a percentage of sales.

False

True or False: Factual incapacity is imposed because of the class or group to which a person belongs.

False

True or False: Generally, advertisements, catalog prices, and circulars are offers that can be accepted.

False

True or False: Generally, when a person of legal age makes a contract with a minor, the contract is voidable by either party.

False

True or False: One advantage of our current legal system is that the growth of technology has not created many new laws.

False

True or False: Plaintiffs are typically awarded punitive damages in negligence cases.

False

True or False: Recognizing that an ethical dilemma exists is usually far more difficult than resolving the dilemma once its existence is recognized.

False

True or False: Regulations properly adopted by agencies are important, but they do not have the full force of law, as do statutes.

False

True or False: The Federal Register lists all administrative regulations, presidential proclamations, and executive orders on a semiannual basis.

False

True or False: The U.S. Supreme Court has held that the right of privacy does not apply to intrusions into our privacy by means of new technology.

False

True or False: The decision of an association tribunal is binding on both the association member and the consumer.

False

True or False: Within each state in the United States, only the U.S. Constitution is in force.

False

True or False: ​The group of time-honored rules that courts have used to solve similar problems for decades is called precedent.

False

True or False: ​The mediator in a mediation has the power to force the parties to come to a settlement.

False

True or False: A summary jury trial is a mock trial before a judge

False (It is a mock trial where lawyers present evidence to a jury of six people)

True or False: Those uniform state laws that have been adopted by individual states were first written by Congress.

False (National Conference of Commissioners on Uniform State Laws, composed of reps from every state, draft various statutes for adoption by the states)

True or False: ​Jane asserts she has a legal right. Jane is really saying she has an obligation to perform or refrain from performing an act.

False (That's a Duty)

Jack sells Jim a used car that Jack falsely described as having been driven only 12,000 miles. Fraud has occurred if:

Jim relied upon Jack's statement.

True or False: A claim of undue influence will be unsuccessful unless the contracting parties have a close relationship of trust.

True

True or False: Acceptance of an offer to form a unilateral contract need not be communicated to the offeror to be effective.

True

True or False: All cities, counties, and other governmental subdivisions have basic powers to adopt ordinances, such as traffic and zoning laws, within their sphere of operation.

True

True or False: Although laws are enacted at different levels of government to provide the framework for business and personal rights and duties, the framework for this legal system is constitutional law.

True

True or False: An acceptance must be absolute and unconditional.

True

True or False: Crimes are classified as common law or statutory according to their origin.

True

True or False: Equity provides justice when the law is inadequate.

True

True or False: Forgery includes signing another person's name to a check with the intent to defraud.

True

True or False: In a composition of creditors, the various creditors of a single debtor mutually agree to accept a fractional part of their claims in full satisfaction of the claims.

True

True or False: Moral standards based on positive law may allow businesses to conduct themselves unfairly so long as their actions are not illegal.

True

True or False: Ordinarily, every party to a contract is presumed to have contractual capacity until the contrary is shown.

True

True or False: The common law are court-enforced unwritten principles originally based on the usages and customs of the community.

True

True or False: Under the Sunshine Act of 1976, called the open meeting law, the federal government requires most meetings of major administrative agencies to be open to the public.

True

True or False: When necessary medical care is provided to a minor, a parent is liable at common law for the medical expenses provided the minor child.

True

True or False: ​The Uniform Commercial Code is a good example of uniform state laws.

True

​True or False: A "Rent-a-Judge" serves as a referee.

True

True or False: The federal court system consists of three levels.

True (The U.S. Supreme Court, the U.S. Court of Appeals, and the Federal District Courts)

In applying the "front-page-of-the-newspaper" test to a contemplated course of conduct one should ask

Would I be willing to have my spouse, friends, and children read about this if it winds up on the front page of the newspaper?

Which of the following is not illegal? an office football "pool" with a cash entry fee and cash prize a raffle with an entry fee to win a car a "giveaway" to every tenth person who buys meat at a butcher shop a "giveaway" to every tenth person entering a department store

a "giveaway" to every tenth person entering a department store

In general, an acceptance occurs when:

a clear expression of the offeree's agreement to be bound by the terms of the offer occurs.

When an offer has been accepted:

a contract is formed, assuming that all of the other elements of a contract are present.

The unauthorized use of a computer belonging to someone else is:

a crime in some states

Marquez agrees to buy Dale's pickup truck so he can pull his trailer. Both Marquez and Dale believe that the truck is big enough to do the job. After they complete the deal, Marquez finds that the truck is not strong enough to handle the trailer. The contract between Marquez and Dale can be rescinded because of:

a mutual mistake.

The maximum amount of time that a minor has to disaffirm a contract is:

a reasonable period of time after reaching the age of majority.

An absolute privilege is available as a defense to slander liability when

a witness testifies in a court proceeding.

Conspiracy means ____ committing a criminal act.

an agreement aimed at

What damages are recoverable in a case of promissory estoppel?

an amount necessary to restore the promisee to the position he or she would have been in had the promisee not relied on the promise

Examples of illusory promises include:

apparent promises

State supreme courts primarily have ______ jurisdiction

appellate (review findings of lower courts)

The concept of equal protection of the law

applies to both state and federal governments

​Statutory law can be created by all of the following except: ​Congress. ​state legislatures. ​local governments. ​by the courts.

by the courts

A declaration of war

can be enacted only by the national government.

A subpoena to testify or to produce records:

cannot be opposed on the grounds that such a request constitutes an unreasonable search and seizure.

​Rights guaranteed in the United States Constitution

cannot be taken away by statutes or court decisions.

The concept of immunity from liability means that:

certain persons are not subject to tort liability

​Which is not considered an alternate means of dispute resolution?

civil lawsuit

Crimes are generally defined and their punishments specified by:

codes and statutes

A(n) _______ is a promise that depends on the occurrence of a specified condition in order for the promise to be binding.

conditional promise.

​The "living-document" view of the Constitution has all of the following characteristics except: ​strong federal government ​strong president​ various administrative agencies with significant power ​constructionist view of the Bill of Rights.

constructionist view of the Bill of Rights

Maria intentionally attempts to have Patty break a contract with Alfred. Maria will be liable under which theory of tort?

contract interference

​Substantive law:

creates, defines, and regulates rights and liabilities.

The ______ makes it a federal offense to circumvent or create programs to circumvent encryption devices that copyright holders place on copyrighted material to prevent unauthorized copying.

digital millennium copyright act (DMCA)

True of False: A party who speaks with a reckless disregard for the truth not knowing of the falsity of his or her words cannot be liable for fraud.

false

True or False: A crime is a wrong that arises from a violation of a private duty, whereas a tort is a wrong that arises from a violation of a public duty.

false

True or False: A recognizance is an agreement by which one party admits or recognizes that a specified sum of money is owed to another party.

false

True or False: A standard arbitration clause can be substantively unconscionable if the fees and costs are so excessive as to deny the innocent party the ability to resolve his claim.

false

True or False: An unlicensed doctor can sue a patient for the doctor's fee if the patient in fact recovered because of the doctor's care.

false

True or False: For tort liability to be imposed, the perpetrator of the tort must have acted with the intent to do wrong

false

True or False: In a "bedrock view" the Constitution is merely a statement of goals and objectives, intended to grow and change with time.

false

True or False: In a benefit-detriment approach, consideration is a benefit received by the promisee.

false

True or False: In applying the stakeholder model of business ethics, only the interests of important constituencies affected by an action need to be satisfied.

false

True or False: Many changes have been made to the Constitution by the constitutional method of amending.

false

True or False: Offensive language used by one person to describe another constitutes the tort of slander.

false

True or False: Recognizing that an ethical dilemma exists is usually far more difficult than resolving the dilemma once its existence is recognized.

false

True or False: Sara Student wished to pay off her $5,000 student loan. If she sends in a check for $3,000 and the creditor cashes the check, the debt will be fully satisfied provided the check is marked "paid in full."

false

True or False: Substantive unconscionability has to do with matters of freedom of assent.

false

True or False: The Constitution prohibits the government from treating different people differently

false

True or False: The Freedom of Information Act provides access to any information upon request.

false

True or False: The greatest risk to purchasing online is providing your credit card information to the seller.

false

True or False: When the federal government deregulates an industry, the states automatically have the power to regulate the same industry.

false

Under the _______ Amendment, agency officials have the right to conduct________ with a warrant, but a(n) ________ inspection is permitted when violations are dangerous to public health and safety.

fourth, inspections, warrantless

Bribery is defined as:

giving money, property, or any benefit to a person to influence that person's judgment.

An administrative regulation:

has the force of law

According to the book Building and Growing a Business Through Good Times and Bad, companies with 100 years of consistent dividends:

have a strong commitment to values

If U.S. Senator Jones is charged with a conflict of interest because of his financial interest in a firm he helped to secure a contract, he would most likely be charged with the crime of ________.

improper political influence

An offer that is indefinite may be clarified by reference to another writing through:

incorporation.

The Freedom of Information Act

is intended to subject agency action to public scrutiny.

The _____ rule(s) on the admissibility of evidence.

judge

​One of the motions that can be made after a verdict has been entered is a motion for a:

judgment notwithstanding the verdict.

Voir dire examination is used in connection with

jury selection

Under the _______, acceptance of an offer takes place when a properly addressed postage paid mail acceptance is placed in the hands of US Postal Service.

mailbox rule

The Economic-Espionage Act (EEA):

makes it a crime to transfer proprietary files, documents and information from a computer to an unauthorized person.

In a living-document view, the U.S. Constitution is a document that:

must be interpreted to accommodate both stability and flexibility.

A finding of undue influence would most likely not occur in a contract between:

neighbor and neighbor.

A customer went into a store and saw a beautiful leather jacket bearing a price tag of $29. The customer handed the cashier a $50 bill and said, "I accept. We have a deal." The cashier then noticed the price tag and told the customer an error had been made and that the price was $229. In this case:

no contract was formed because the customer's offer was refused.

An agreement arises when one person, the __________, makes an offer and the other person to whom the offer is made, the __________, accepts.

offeror; offeree

Courts will consider the adequacy of the consideration when:

one party claims to have been defrauded.

The term "exhaustion of administrative remedies" means that:

parties to an administrative action can appeal only after the agency has made a final decision.

Within the past five years, the U.S Supreme Court has:

placed some limitations on the commerce clause.

Which of the following powers is not reserved solely to the national government? ​power to regulate interstate commerce ​power to tax​ power to coin money​ power to borrow money on the credit of the United States

power to tax

What type of damages are recoverable when the defendant's tortious conduct is accompanied by fraud, malice, or willful or wanton conduct?

punitive

An obligation to pay for the reasonable value of services rendered when there is no contract would be called:

quasi-contractual

When it comes to administrative agencies, courts:

regard agencies as able to perform their duties effectively, accept rules that have been established by agencies using a rational basis, do not substitute their own judgment in agency decisions.

A counteroffer is a(n):

rejection of the original offer.

Immanuel Kant's categorical imperative theory:

requires that we avoid one-sided benefits as a result of ethical decisions.

In a quasi-contract situation, the reasonable value of services or goods to avoid unjust enrichment are called:

restitution damages

The United States constitution places the most significant limitations on administrative investigation in the area of:

search and seizure of the person.

Oral or spoken defamation is:

slander

Liz agrees to cook 20 dinners for Brian, and in exchange, Brian will repair all of the plumbing in Liz's house. Liz and Brian's 'deal' has:

sufficient consideration, because Liz has promised something of value.

The United States Supreme Court was created by:

the U.S. constitution

Even if a contract appears legal on its face, it may be unenforceable if:

the contract has an illegal purpose.

An offer is terminated upon rejection by the offeree unless:

the offeror renews the offer.

The U.S. Patriot Act and airport security regulations were enacted for the protection of:

the state

The passage of federal securities disclosure laws occurred largely as the result of:

the stock market crash of 1929

Dealing honestly, reasonably, and in good faith means all the following except:

these are express duties in every contract for services.

True or False: "Mental state" does not require an awareness of guilt. Group of answer choices

true

True or False: A constitution is the written document that establishes the structure of the government and its relationship to the people.

true

True or False: A contract is essentially an agreement that creates an obligation.

true

True or False: A factual incapacity may exist when, because of a mental condition caused by medication, drugs, alcohol, illness, or age, a person does not understand that a contract is being made or understand its general nature.

true

True or False: According to the Privileges and Immunities clause, a state cannot bar someone who comes from another state from engaging in local business or from obtaining a hunting or fishing license.

true

True or False: An agreement may involve the performance of several promises, some of which are illegal and some legal.

true

True or False: An agreement that calls for the commission of a civil wrong is illegal and void.

true

True or False: An agreement that contemplates the performance of an act prohibited by law is usually void.

true

True or False: An implied contract is one in which the agreement is shown not by words, written or spoken, but by the acts and conduct of the parties.

true

True or False: An option contract gives one of the parties an absolute right to enter into a second contract at a later date.

true

True or False: As Courts now tend to accept an agency's reasonable interpretation of a statute involving a technical matter, even though it was not the only interpretation that could have been made.

true

True or False: Before an appeal can be taken to a court concerning a determination of an agency, all administrative remedies must be exhausted.

true

True or False: Contractual intention is determined by objective standards.

true

True or False: Ethics is a philosophical concept that deals with values related to the nature of human conduct.

true

True or False: If a merchant receives and cashes a check for partial payment of a debt and the check bears the notation that the amount is in full payment of a disputed sum, the total debt is released.

true

True or False: If the law is intended to protect one of the parties to an otherwise illegal contract, that party may seek relief in court.

true

True or False: If the offeree purports to accept an offer but in so doing makes any change to the terms of the offer, such action is a counteroffer that rejects the original offer.

true

True or False: In addition to issues of social responsibility, business values and ethics play an important role in the success or failure of a business.

true

True or False: In an administrative hearing, an administrative law judge hears the complaint and has the authority to swear witnesses, take testimony, make evidentiary rulings, and make a decision to recommend to the administrative agency heads for action.

true

True or False: In most states, promises made to another based on moral obligation lack consideration and are not enforceable.

true

True or False: In the case of unforeseen difficulties, a second promise to pay a contractor a higher amount on the original contract may be enforceable.

true

True or False: Interactive web sites are immune from liability for content created by a third-party user, unless the web site actively edits the content.

true

True or False: Moral relativists solve ethical dilemmas according to time and place.

true

True or False: Ordinarily doing, or promising to do what one is already under a legal obligation to do, is not legal consideration.

true

True or False: Participation in a free raffle without consideration is lawful, because there is no lottery.

true

True or False: Parties to illegal agreements are generally not entitled to help from the courts.

true

True or False: Status incapacities against married women have largely disappeared.

true

True or False: The Due Process clause has extended the due process clause to protect the record or standing of a student.

true

True or False: The Foreign Corrupt Practices Act applies to businesses with their principal offices located in the United States.

true

True or False: The assumption of risk defense has been abolished in several states.

true

True or False: The principle behind the quasi contract is to prevent unjust enrichment.

true

True or False: The promise of a creditor to refrain from debt collection in exchange for a promise by the debtor to modify the terms of the transaction is legally sufficient consideration.

true

True or False: The use of someone's car without that person's permission is a trespass to personal property.

true

True or False: Utilitarians believe that ethics is measured by actions that do the most good for the most people.

true

True or False: When a contract sets a price for services rendered, a plaintiff cannot sue for reasonable value.

true

True or False: When purchasing from a website, the website terms generally become the contract of the parties and are legally enforceable.

true

In an employment contract, agreements not to compete are:

valid, if the restriction is reasonable and necessary for the protection of the former employer

A legally binding agreement that can be rejected at the option of one of the parties is called a(n):

voidable contract

An ethical duty of confidentiality could be breached in any of the following situations except: ​information obtained through research of the employer is disclosed. ​​customer lists or leads are disclosed to a competitor. ​​proprietary information or technology of a business is disclosed. ​​when a confidential informant tells government officials of illegal company activity.

when a confidential informant tells government officials of illegal company activity.

Positive law:

​is enacted by government authority.