BUS 202 Exam 2

Promissory estoppel is an available remedy: If the parties do not have a valid contract, but a promise has been justifiably relied upon Only if the parties have a valid contract

If the parties do not have a valid contract, but a promise has been justifiably relied upon

Oral testimony in court about the terms of a written contract refers to: Parole evidence Parol evidence The Statute of Frauds

Parol evidence

Alice replaces Ben in his job at the Commercial Business Corporation (CBC). Ben believes he has been discriminated against on the basis of his age. For the Age Discrimination in Employment Act (ADEA) to apply: Alice must be forty years of age or older. All parties must be forty years of age or younger. Ben must be forty years of age or older. CBC must have been in existence for at least 40 years. CBC must have at least 40 employees.

Selected Answer: Ben must be forty years of age or older.

Which of the following expresses the duties that the officers and directors owe to the corporation and its shareholders? Duties of of care, obedience, and to spend. Duties of loyalty and care. Duties of loyalty and making a profit. Duties of loyalty and making decisions. Duties to avoid damages and of loyalty.

Selected Answer: Duties of of care, obedience, and to spend. WRONG

Which of the following describes the duty of loyalty and good faith that is held by a person in a position of trust and confidence? Fiduciary duty. Fellow servant duty. Duty to act reasonably. Duty to avoid harm. Principal duty.

Selected Answer: Duty to act reasonably. WRONG

Which of the following is NOT a provision of the Family and Medical Leave Act? Employees will be returned to the same or an equivalent position. The employer is entitled to 30 days notice of the leave, where practical. Employees, to be eligible for leave, must have been employed by the employer for at least 12 months. Employees may take up to twelve weeks paid leave. All of the above are provisions of the Family and Medical Leave Act.

Selected Answer: Employees, to be eligible for leave, must have been employed by the employer for at least 12 months. WRONG

Sara owns a coffee shop. She hires Howard to manage the shop. Which of the following best describes their relationship? Sara, the employer, is the general agent; Howard, the employee, is the principal. Sara, the employer, is the general agent; Howard, the employee, is an independent contractor. Sara is the general partner; Howard is a limited partner. Sara, the employer, is the principal; Howard, the employee, is a general agent. Sara, the employer, is the principal; Howard, the employee, is neither a general agent or an independent contractor because he's a manager. Managers are exempt from agency law.

Selected Answer: Sara, the employer, is the principal; Howard, the employee, is a general agent.

Cindy was hired as a camera operator on the popular cable access show "Wayne's World." Her uniform was similar to those worn by the Dallas Cowboy Cheerleaders. According to Cindy, both Wayne and Garth had "wandering hands" and made frequent comments ("What a fox! You are Babe - alicious!") about her appearance and physical attributes. Wayne and Garth also told her she could appear on camera with them as their own personal Vanna White if she would operate the camera topless every Friday. Although Cindy took the job to advance her television career, she refused. After several months on the job, she quit and filed a complaint with the EEOC alleging she had been sexually harassed on the job. Which of the following is true about Cindy's case? This is a hostile environment case because the harassment was sufficiently severe or pervasive to alter the terms, conditions, or privileges of employment. This is a quid pro quo case because her job status was conditioned on her willingness to behave in a sexual manner at work. Cindy was an at-will employee, so she will have to prove that one of the exceptions to employment at-will apply. All of the above are true. A and B only.

Selected Answer: This is a hostile environment case because the harassment was sufficiently severe or pervasive to alter the terms, conditions, or privileges of employment. PARTIAL

David, a partner in the Tri-State Express Mail delivery partnership, negligently drove his delivery truck onto the curb during a rush-hour package delivery. Marlene was injured. Who of the following may be liable to Marlene for her injuries? Only David. Tri-State Express Mail Partnership. Any partner, personally. B and C. Marlene will have to pay her damages herself.

Selected Answer: Tri-State Express Mail Partnership. PARTIAL

Martine is asked by her employer to falsify documents that are required by law to be submitted to the Nevada Department of Transportation. She refuses, and is fired for her refusal. Does Martine have grounds for a claim of wrongful discharge? Yes, under the covenant of good faith and fair dealing exception to employment at will. Yes, under the public policy exception to employment at will. Yes, under the implied contract exception to employment at will. No, because she was insubordinate. No, there is no recognized basis upon which she might challenge her discharge.

Selected Answer: Yes, under the covenant of good faith and fair dealing exception to employment at will. WRONG

Clay offers to pay Dian $50 for a golf lesson for Ewan. They agree to meet on Friday to exchange the cash for the lesson. These parties have​: a bilateral contract. a unilateral contract. a void contract. an executive contract.

Selected Answer: a bilateral contract.

State University (SU) provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be student at SU. This requirement is​: a discharge by performance. a material alteration. an accord and satisfaction. a condition.

Selected Answer: a condition.

Analytic Projections, Inc., a data analysis firm, wants to hire Benazir, a noncitizen. A work visa is most likely to be set aside for a noncitizen if: hiring the worker will not adversely affect other workers similarly employed. b. the noncitizen is of "ethnic similarity to the employer's workforce." c. the noncitizen is a "person with an extraordinary work ethic." d. there is no shortage of qualified U.S. workers capable of doing the work

Selected Answer: a. hiring the worker will not adversely affect other workers similarly employed. WRONG

Belle is an employee of College Cafeterias, Inc., covered by federal overtime provisions, which apply only after an employee has worked more than​: a. forty hours in a week. b. one year for the same employer. c. seven and a half hours in a day. d. eight hours in a day.

Selected Answer: a. forty hours in a week.

Like the bylaws of other corporations, the bylaws of Rocks, Paper & Scissors, Inc.,​ a. ​establish the value and classes of corporate stock. b. ​establish the operating name of the corporation. c. ​were submitted for approval to the public official in charge. d. ​were adopted at its first organizational meeting.

Selected Answer: a. ​establish the value and classes of corporate stock. WRONG

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Buns n' Burgers in exchange for her payment of a debt that Lyle owes to New Credit Corporation. New Credit is​: Selected Answer: an intended beneficiary. Answers: a delegatee. an intended beneficiary. an incidental beneficiary. an obligor.

Selected Answer: an intended beneficiary.

Cal employs Daily Employment Agency as an agent under a written agreement that describes the rights and duties of both parties. This describes: apparent authority. equal authority. express authority. implied authority. ratification of authority.

Selected Answer: apparent authority. WRONG

Gina believes that she is a victim of employment discrimination that falls under Title VII of the Civil Rights Act. Compliance with Title VII is monitored by: a. employees and job applicants, not an administrative agency. b. the Equal Employment Opportunity Commission. c. employers and businesses, not an administrative agency. d. the courts and Congress, not an administrative agency.

Selected Answer: b. the Equal Employment Opportunity Commission.

Beth, acting within the scope of her authority for the Cake Bake Shop, contracts with Eden Valley Orchards to buy an assortment of fruit. Cake Bake is liable on the contract, and Beth is not, if Cake Bake is​ a. ​not a principal. b. ​a disclosed principal. c. ​an undisclosed principal. d. ​a partially disclosed principal.

Selected Answer: b. ​a disclosed principal.

Tim works for University Food Service, Inc. The employer's discharge of Tim outside the terms of an oral employment contract may result in: a. the imposition of an express employment contract on the employer. b. the employee's ineligibility for unemployment compensation. c. the employer's liability for breach of contract. d. none of the choices.

Selected Answer: c. the employer's liability for breach of contract.

Jason and Kelly enter into a contract for Jason to renovate Kelly's house by a certain date. Jason never performs. After the applicable limitations period has passed, Kelly decides to bring a suit against Jason for breach. This suit: Selected Answer: can no longer be brought. Answers: must be filed within ten to twenty years, depending on state law. can no longer be brought. can be filed within four years after Kelly decides to sue. must be filed between four and five years after Kelly decides to sue.

Selected Answer: can no longer be brought.

A contract in which acceptance is expected in the form of the performance of some act by the offeree is a(n): collateral contract. bilateral contract. conditional contract. unilateral contract. adhesion contract.

Selected Answer: conditional contract. WRONG

Kristin and Lindsey are partners in Mobile Devise, an online marketing firm. Refer to Fact Pattern 16-1. Lindsey dissociates from Mobile. Kristin signs a contract with Organic Olives, a food seller, apparently on Mobile's behalf. Organic Olives does not know of Lindsey's dissociation. The contract is binding on​ a. ​Mobile only. b. ​Kristin only. c. ​Organic Olives only. d. ​Kristin, Lindsey, and Mobile.

Selected Answer: d. ​Kristin, Lindsey, and Mobile.

Mike is a shareholder of NatGas, Inc. NatGas uses cumulative voting to elect directors. This means that the number of Mike's votes is determined by the number of​ a. ​years that he has been a shareholder. b. ​shareholders' meetings that he has attended. c. ​shareholders present at the shareholders' meeting. d. ​members of the board to be elected multiplied by the total number of voting shares that he holds

Selected Answer: d. ​members of the board to be elected multiplied by the total number of voting shares that he holds.

The business judgment rule holds that: directors are personally liable for decisions that have negative consequences for the corporation even if the decisions are made in a careful, well-informed manner. derivative actions can only be filed by the board of directors, and only after they have explored all other options. if directors act in a careful, well-informed manner, they will be immune from liability based on business decisions that turn out to have negative consequences for the corporation. if directors act in a careful, well-informed manner, they will be entitled to the benefits specified in a golden parachute. C and D.

Selected Answer: directors are personally liable for decisions that have negative consequences for the corporation even if the decisions are made in a careful, well-informed manner. WRONG

Chip Makers Union would like Digital Products, Inc., to require union membership of its job applicants as a condition for obtaining employment. This is: illegal in all states. legal in any employment-at-will state. illegal only in states that have right-to-work laws. legal in all states. legal only in states that have right-to-work laws.

Selected Answer: illegal in all states. WRONG

Ann offers to buy a laser printer, with a case of paper and an extra cartridge, from Best Office Products, for $200. Curt, Best's representative, says, "OK, but no paper and no extra cartridge." Curt has: accepted the offer. made a counteroffer without rejecting the offer. rejected the offer and made a counteroffer. rejected the offer without making a counteroffer. lost out on a good opportunity to get rid of that old printer cartridge!

Selected Answer: made a counteroffer without rejecting the offer. WRONG

Under the corporate opportunity rule: officers and directors may personally benefit from an opportunity in which the corporation would have been interested. officers and directors may not personally benefit from an opportunity in which the corporation would have been interested. shareholders may not personally benefit from an opportunity in which the corporation would have been interested. directors are bound to accept any reasonable offer by an outside investor for all or substantially all of the outstanding stock of the corporation. directors are not required to accept a reasonable offer by an outside investor for all or substantially all of the outstanding stock of the corporation, if it would impair their ability to receive compensation under a golden parachute.

Selected Answer: officers and directors may not personally benefit from an opportunity in which the corporation would have been interested.

Debts that are paid out of the bankruptcy estate before any other debts are paid are called: contemporaneous exchanges. privileged debts. priority debts. preferential payments. payments in the normal course of business.

Selected Answer: privileged debts. WRONG

The type of business entity in which there is no legal distinction between the owner and the business is called a: partnership. limited partnership. limited liability company. corporation. sole proprietorship.

Selected Answer: sole proprietorship

Tile & Grout (T&G) contracts to resurface the insides of the pools at Water Park. T&G knows that without the resurfacing, Water Park will have to delay its seasonal opening. T&G does not perform as promised. As consequential damages, Water Park can recover: the cost of new pools. the difference between T&G's price and the eventual cost of resurfacing. the loss of profit from the delayed opening. nothing.

Selected Answer: the loss of profit from the delayed opening.

Termination of an at-will employee, in violation of one of the recognized exceptions to the employer's right to terminate such an employee, is called: at will termination. compelled self-termination. constructive discharge. discriminatory discharge. wrongful discharge.

Selected Answer: wrongful discharge.

The Statute of Frauds means that Contracts entered into because of fraud are voidable Some contracts have to be in writing or they are not enforceable Each of the above

Some contracts have to be in writing or they are not enforceable

A contract for a flu shot from Shopko would be governed by: The Common Law The Uniform Commercial Code

The common Law

The problem regarding oral contracts is that they are not enforceable. This is generally true This is generally false

This is generally false

Contracts entered into because of mutual mistake about the subject matter of the contract are voidable. True False

True