Quizzes 1-4 (Cody)

Allen is hit and killed by a car as he crossed a busy street. He carried insurance, and his wife submits the policy to be paid the benefit. The company says it doesn't need to pay because he was two weeks late with his last premium payment. The legal rule states an insured person is generally allowed, by policy provision or statue, a grace period of what length of time in which to make the payment of a premium due on a life insurance policy?

30-31 days

All of the following situations reflect a possible conflict of interest except:

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

Jolene is a person of average intelligence, education, experience in business. Julie purchase insurance and paid the premium. The policy was mailed to her, but before they arrived a loss was suffered. When she read the policy, Julie could not determine whether the loss was covered because the policy was too difficult to understand. The loss is___________

Covered because the insurer had an obligation to word the policy in an understandable way.

As you wrestle with the content in chapter three and how you want your business to act, you explored multiple ethical frameworks. One of those was the Laura Nash model. Which of the following is not a question she developed as a business ethicist to help businesspeople reach the right decision in ethical dilemmas?

Does your proposed solution to the problem effectively balance the competing objectives of ethical decision-making and corporate profitability?

A new restaurant opens in a leased space in downtown Lafayette. However, a month after is opens, the building is destroyed by a fire. If a leased building is destroyed, the lease is not terminated until proper notice is given.

False

After the last pleading is filed, an attorney can file a motion for a directed verdict.

False

Allistare and Adele enter into a partnership. Then Allistare dies unexpectedly. A partnership is not dissolved by the death of a partner.

False

An estate in fee simple grants ownership in property for a specific period of time.

False

An insurer may cancel any contract of insurance by the insurer's unilateral act as long as the insurer gives advance written notice.

False

Arbitration is a dispute making process that occurs in a court of law

False

Eli Lily is considering a joint venture with a start-up pharmaceutical company. Under this joint venture manufacturing agreement, Eli Lily as the manufacturer has authority to manufacture products under the start-up's proprietary trademark.

False

Ethical violations do not cause lasting detriment to a company's ability to do business through impacts on the company's reputation.

False

Grove Construction hires George as a special agent. George is authorized by Grove Construction to transact all affairs in connection with a particular type of business or trade or to transact all business at a certain place.

False

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

False

Statutory las includes U.S. Supreme Court opinions.

False

Strict scrutiny is the standard applied to the private lives of ordinary citizens.

False

The relationship between the franchisor and the franchisee is ordinarily and arm's-length employment relationship.

False

The time-honored rules that courts used to solve similar problems for hundreds of years or decades is called precedent.

False

Uniform state laws were adopted by individual states after being written by Congress.

False

When a provision of an endorsement conflicts with a provision of a policy, the policy controls.

False

You have been offered the opportunity to be an agent, but want to make sure you understand the distinctions between the different types of agency relationships. A general agent is authorized by the principal to do all acts that can be delegated lawfully to a representative.

False

You notice a lease you've been asked to review is for a tenancy at sufferance. A tenancy at sufferance is one under which the tenant has a lease that runs for a definite duration.

False

Your friend is renting an apartment and believes that they as the tenant has the absolute right to use the premises for any purpose.

False

Your uncle recently died. He was the majority shareholder in a corporation and with his death, the perpetual life of the corporation ends.

False

You're trying to determine whether a LLC is the right business structure for your new venture. The following statements concerning LCC's are all incorrect except:

Income flows through to the members based on their proportionate interest in the company.

Josh purchases life insurance on his children family in Brody. Two years later one of the boys dies in a tragic accident. At the trial, the insurance company argues that the policy is ambiguous. If the court finds that a provision in the insurance policy is ambiguous:

It is interpreted against the insured.

Which of the following is/are an example of limited or special jurisdiction court/s?

Probate, Juvenile, and Domestic Relations Court

Your friends have heard that there is a way that a limited liability company maybe classified as a partnership for tax purposes. You tell that that can be done if:

Such election is made by "checking the box" for partnership tax treatment of the appropriate internal Revenues Service form.

Administration can create regulations that have the force of law

True

An easement by prescription is created by an adverse or contrary use of the true owner's land for a statutory period.

True

Aureliano is an agent for XYZ Corporation. Aureliano has apparent authority as an agent when the principal's words or conduct leads a third person to reasonably believe that Aureliano has that authority and the third person relies an that appearance.

True

Donovan, Andrea, and Elliott are trying to decide what business form to use if they go into business together. They are told corporations are subject to a form of double taxation. This is:

True

Equity steps in to fill the gaps and provide justice when the law is inadequate.

True

Eric hires Grove Construction as an independent contractor to finish Eric's basement. Eric ordinarily is not liable for harm caused a third person by the negligence of an employee of an independent contractor.

True

Grove Construction hires George as an agent. If an agent's act causes loss to the third person, that third person may generally hold the agent liable for the loss.

True

Grove Construction hires George as an independent contractor. Grove Construction does not have control over the performance of the work done by George.

True

In an effort to act ethically, you've studied various theories. To Immanuel Kant, an action is ethical if it is fair and done for the right reasons.

True

Jurisdiction places certain limitations on the authority of a court to decide certain types of cases.

True

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

True

One tool your professor gave you to act ethically is the Font-Page-of-the-Newspaper Test. This test helps managers view ethical decisions in terms of public disclosure of the proposed conduct.

True

Procedural law delineates the steps that must be adhered to when enforcing rights and liabilities.

True

Tad is an insurance broker. In general insurance brokers are independent contractors who are not employed by any one insurance company.

True

The insured must comply with a number of time limitations in making a claim

True

To collect a property insurance, and insurable interest in the property must exist at the time that the losses suffered.

True

Utilitarians believe that ethics is measured by actions that do the most good for the most people.

True

You are considering purchasing a parcel of land and trying to understand what you are buying. Your real estate agent tells you that land extends downward to the earth's center and upward indefinitely.

True

You are trying to decide whether you need to start a business or can operate without a formal business. Your friend tells you that a sole proprietor is subject to unlimited personal liability for the debts of the business. Is this true or false?

True

You learn that someone has been living in an abandoned cabin on the family farm. When you tell her to leave, she refuses because legal title to land may be acquired by adverse possession, even though the possessor originally had no right to use or possess the property.

True

You rent an apartment a couple blocks behind Krannert. If you as the tenant uses the property for any purpose other than the one specified in the lease, the landlord has the option to declare the lease terminated.

True

You're considering your options for purchasing your first home. You are considering coops and condominiums. A condominium is a combination of co-ownership and individual ownership.

True

Your professor believes it's important to have practical tools to help you make ethical decisions. In apply 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?

Loni Smith suffered the loss of her cottage as a result of a chimney fire that was caused by the ignition of shit in the chimney this fire would be described as:

a hostile fire

Grove Construction hires George as an agent. It is the duty of George as an agent to act with the care that ______

a reasonable person would exercise under the circumstances.

You've bought your first home and want to make sure that everything was done to protect your rights as the new owner. Your real estate agent tells you that any of the following can constitute an effective delivery of a deed except:

a recording of the deeds

You and three friends from Krannert have decided to start a consulting business and are considering a LLC. Members of a limited liability company share profits:

according to the terms of the operating agreement.

The SEC was created as a part of an act of Congress. The SEC creates:

administrative regulations

Fresh Foods hires Joel as a manager. As an agent, Joel is under a duty to obey_____

all lawful instructions given by Fresh Foods as the principal

The right to privacy means that individuals

are protected against intrusions by individuals

You're reading leases for various apartments you are considering renting for the next school year. You aren't sure what type of tenancy it is, but know if the tenancy is for an indefinite period of time, then it may be terminated at any time by landlord or tenant and is called a tenancy________

at will

Grove Construction hires George as an agent. The scope of George's authority as an agent may be determined from all of the following except_________.

consideration paid to George as agent

You and three friends from Krannert have decided to start a consulting business and are considering the best entity form to use. The government's permission is required to create:

corporations

Substantive law

creates, defines, and regulates rights and liabilities

Allison is called as a witness in a robbery trial to testify for the prosecution. When testifying at trial, Allison will undergo ______ by the prosecutor, and a(n) ________ by defense counsel

direct examination, cross-examination

You will be headed to Italy for the summer to study abroad and decide to assign your lease to another student for the month will be gone. If the lease is signed, who is liable for the rent?

either the assignor or the assignee, but not both

The right to _____ which is found in the _____ Amendment to the U.S. Constitution, authorizes the government to take land for public use with just compensation.

eminent domain; Fifth Amendment

You're ready to make an offer on a house, but want to make sure you understand the law. A(n) __________ is personal property that is attached to the earth or placed in a building in such a way that it is deemed part of the real property.

fixture

You and three friends from Krannert have decided to start a consulting business and are considering a limited partnership. A limited partnership can be formed by one or more _____ partners and one or more ______ partners.

general; limited

Ethics has multiple theories to help people make choices. In one, positive law:

is enacted by government authority

Characteristics of the fee simple estate include all of the following except the estate:

is not subject to rights of the owner's surviving spouse

A right

legal capacity to require another party to perform an action

Filled with an abundance of debris, rats and insects. Also, the plumbing in the apartment was inoperable. These conditions:

most likely constitute a breach of the implied warranty of habitability.

A plaintiff files the complaint, which initiates the dispute. When a defendant files a ____ he is attacking the plaintiff's pleading as not stating a cause of action or defense.

motion to dismiss

A guarantee that the grantor owns the estate conveyed is called a covenant _______

of seisin

Not disturb the tenant's possession of the land

quiet enjoyment

What type of deed merely transfers whatever interest, if any, the grantor may have in the property, without specifying that interest in any way?

quitclaim

Grove Construction hires George as an agent, but wants to know what kind of agent he is. A ______ agent is authorized by the principal to handle a definite business transaction or to do a specific act.

special

Suppose the Lafayette Police Department wants to search your apartment. What law requires that the department obtain a search warrant?

the Fourth Amendment

A friend rented an apartment and was injured while in the parking lot. He wants to sue his landlord for his medical expenses and lost pay. You tell him that his landlord is most likely liable if he was injured by:

the criminal act of a third person, when such conduct was reasonably foreseeable.

If an insured person tells her current husband that she is going to name him as beneficiary of her life insurance in place of her former husband and dies a year later without having taken any further steps with respect to the change of the policy beneficiary, the insurance company must pay the proceeds of the policy to:

the former husband

Grove Construction hires George as an agent. If Grove Construction terminates George's agency_______.

the right of the agent to bind the principal to third persons generally ends immediately

Bill purchases life insurance from life insurance for you. Three years later the company learns bills heart only has 25% function, which puts him at risk of early death. An incontestability clause ordinarily bars contest of the validity of a life insurance policy by the insured after the lapse of:

two years

A friend knows you are in MGMT 254 and has brought you a lease to review. She wants to know whether a provision in a residential lease stating that the landlord cutting off heat or water will not constitute an eviction is:

unconscionable

You and classmates get into a heated discussion about whether employees owe confidentiality to their companies. The text explains that an ethical duty of confidentiality could be breached in any of the following situations except:

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

Fresh Food hires Joel as a manager and gives him authority to manage the store. Joel then throws a young customer, injuring the boy. Fresh Foods may be liable on the theory of negligent hiring______

when it is shown the employer knew the employee would create an undue risk of harm in carrying out job responsibilities.