Busi law - homework questions
orders the sheriff or other government officer to seize property in the possession of the breaching party that he or she owns and to sell the property at auction to satisfy a judgment.
A writ of attachment
refers to a manifestation of assent by the offeree to the terms of the offer in a manner invited or required by the offer as measured by the objective theory of contracts.
ACCEPTANCE
An offer is made by an offeror to enter a contract, and that offer is accepted by the offeree. There is mutual assent by both parties. To which element of an enforceable contract does the scenario refer?
AGREEMENT
______________________ are regions of each state that the Environmental Protection Agency (EPA) has designated to measure compliance with air quality standards.
Air quality control regions (AQCRs)
is a statute that prohibits deficiency judgments regarding certain types of mortgages, such as those on residential property.
An antideficiency statute
The sale of equipment, automobiles, computers, clothing, and such involve sales contracts subject to which one of the following sources of contract law?
Article 2 of the Uniform Commercial Code
Which of the following establishes a comprehensive, uniform law covering the formation, performance, and default of leases in goods?
Article 2A of the UCC
Leases of automobiles, leases of aircraft, and other leases involving goods are subject to which one of the following sources of contract law?
Article 2A of the Uniform Commercial Code
A seller of goods located in Germany agrees to sell its goods on credit to a buyer located in Singapore but only if the buyer in Singapore submits a letter of credit from a bank guaranteeing payment if the buyer does not pay. This transaction is governed by which of the following?
Article 5 of the UCC
The _____________________ is a federal statute that establishes water quality standards and regulates water pollution.
Clean Water Act
The _____________________________ is a federal statute that authorizes the federal government to deal with hazardous wastes. The act creates a monetary fund to finance the cleanup of hazardous waste sites.
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA or Superfund)
The _____________________ is a federal administrative agency empowered to adopt rules and regulations to interpret and enforce the Consumer Product Safety Act.
Consumer Product Safety Commission (CPSC)
The ___________________ is a federal statute that required the Federal Trade Commission (FTC) to create and administer the national do-not-call registry.
Do-Not-Call Implementation Act
You work for a pharmaceutical company that produces a variety of prescription and nonprescription drugs. Your job is to assist in preparing applications for new drugs that are then submitted to the FDA for licensing. The pharmaceutical company you work for must submit applications to the FDA for approval under the ___________________, which gives the FDA broad powers to license new drugs in the United States.
Drug Amendment to the FDCA
The _________________________ is a federal statute that protects endangered and threatened species of wildlife.
Endangered Species Act
The ____________________ is a federal administrative agency created by Congress to coordinate the implementation and enforcement of the federal environmental protection laws.
Environmental Protection Agency (EPA)
The ___________________ is a federal administrative agency empowered to enforce the Federal Trade Commission Act and other federal consumer protection statutes.
Federal Trade Commission (FTC)
The _________________ is a federal statute, enacted in 1914, that creates certain consumer protections, regulates business conduct, prohibits unfair and deceptive practices, and grants certain antitrust powers to the Federal Trade Commission (FTC).
Federal Trade Commission Act (FTC Act)
The _______________________ is a federal administrative agency that administers and enforces the federal Food, Drug, and Cosmetic Act and other federal consumer protection laws.
Food and Drug Administration (FDA)
A drug company, Bad Wolf Incorporated, has developed a new drug to treat the growth of irregular toenails. BW Inc. is preparing to sell this drug to the public but must first submit an application to the FDA containing information about the safety and possible uses of the product. BW Inc. may only sell the drug if the FDA approves the application. BW Inc. must get approval to sell this drug to the public under the ________________.
Food, Drug, and Cosmetic Act (FDCA or FDC Act)
The ____________________ is a federal statute that requires pesticides, herbicides, fungicides, and rodenticides to be registered with the EPA; the EPA may deny, suspend, or cancel registration.
Insecticide, Fungicide, and Rodenticide Act
You have entered into a contract with a business partner. Ultimately, it turns out that the contract will cause your own business to lose money. According to _____________, it would be your moral duty to abide by the contract you entered even though it will be detrimental to you.
Kantian ethics
_______________ is a moral theory stating that people owe moral duties that are based on universal rules, such as the categorical imperative, "Do unto others as you would have them do unto you."
Kantian ethics (duty ethics)
Michael Edwards is the owner and operator of a nuclear power plant in Washington. The power plant generates pollution, including thermal pollution affecting a nearby river. The nuclear wastes the Edwards' plant creates are relocated to a permanent disposal site selected by the federal government. Edwards' plant was given license to operate by the _______________________.
Nuclear Regulatory Commission (NRC)
The ____________________ is a federal statute that requires food manufacturers to disclose on food labels nutritional information about the food.
Nutrition Labeling and Education Act (NLEA)
You live in a society in which the moral principles for the entire society were chosen by a group of people under a "veil of ignorance"; that is, when they chose the moral principles that would guide the society, they did not know what their station would be in that society, so, as a group, they chose the fairest possible principles. This society would be a living example of _________________.
Rawls's social justice theory
_____________ is a moral theory asserting that fairness is the essence of justice. This theory says that each person is presumed to have entered into a social contract with all others in a society to obey moral rules that are necessary for people to live in peace and harmony.
Rawls's social justice theory
You own and operate an energy-from-waste facility in Nevada. When municipal solid waste is collected from the surrounding communities, it is transferred to your facility, where it's processed and converted to energy. In the process, the municipal waste is stored, treated, and transported through your facilities. The EPA is authorized to regulate your facility under the _________________________.
Resource Conservation and Recovery Act (RCRA)
The ________ prompts companies to encourage senior officers of public companies to act ethically in their dealings with shareholders, employees, and other constituents.
Sarbanes-Oxley Act of 2002
One day, you go to your favorite coffee shop (a national chain) and notice that the signage behind the counter has been changed to include calorie counts for all the food and drink items. This change went into effect as a result of ___________________, which is a section of the federal statute that requires restaurants and retail food establishments with 20 or more locations to disclose calorie counts of the items they serve on menus, menu boards, and drive-through menu boards.
Section 4205 of the Patient Protection and Affordable Care Act
______________ is a provision in the FTC Act that prohibits unfair and deceptive practices.
Section 5 of the FTC Act
__________________ is law that an administrative agency enforces—federal statutes enacted by Congress or state statutes enacted by state legislatures.
Substantive administrative law
_________________ is a federal statute that amended the Patient Protection and Affordable Care Act (PPACA) and created the Health Care Reform Act.
The Health Care and Education Reconciliation Act
_________________ is a federal statute, as amended by the Health Care and Education Reconciliation Act, that is referred to as the Health Care Reform Act. These combined acts mandate that most U.S. citizens and legal residents purchase "minimal essential" health care insurance coverage and provides methods for accomplishing this goal.
The Patient Protection and Affordable Care Act (PPACA)
Which of the following is a model act that establishes uniform legal rules for the formation and enforcement of electronic contracts and licenses?
The Uniform Computer Information Transactions Act
A federal law that permits debtors who are subject to a writ of garnishment to retain a specified percentage or amount of their earnings is which of the following?
Title III of the Consumer Credit Protection Act
________________ are toxic chemicals, such as asbestos, mercury, vinyl chloride, benzene, beryllium, and radionuclides.
Toxic air pollutants
Jerry has purchased 60 acres of lakefront property in a small town that surrounds the lake. He intends to develop the land by building high-rise condominiums. The high ground on the land is suitable for building, but the rest of the property consists of wetlands and ponds created by water flowing onto the property from the lake. Because the lake flows into the ponds and wetlands, they are considered navigable waters under the Clean Water Act. Jerry decides to secretly ditch and fill the ponds and wetlands so that he can build more condominiums in violation of the Clean Water Act The _______________________ is empowered to report Jerry for criminal proceedings and to bring proceedings against him to correct his illegal act.
U.S. Army Corps of Engineers
The _________________ is the federal administrative agency that is responsible for regulating the safety of meat, poultry, and other food products.
U.S. Department of Agriculture (USDA)
The ____________________ is a United Nations-sponsored protocol that requires signatory countries to place the label, "May contain living modified organisms," on all genetically engineered foods.
United Nations Biosafety Protocol for Genetically Altered Goods (Biosafety Protocol)
You are the owner of a steam-engine manufacturing company. In recent years, the market for your product has declined, and you must close one of your plants. It is now time to decide whether you should close a plant that has been unprofitable and is located in a small community. ________________ would require you to weigh the benefits to the shareholders from closing the plant against the benefits to the employees, their families, and the community from keeping it open.
Utilitarianism
Alex, the owner of the new restaurant, Rock & Shore, says to Gemma, a painter, "If you promise to paint my store by July 1, I will pay you $3,000." Alex says, "I promise to do so." If Gemma fails to paint the restaurant, Alex can sue her and recover whatever damages result from her breach of contract. Similarly, Gemma can sue Alex if he refuses to pay her after she has performed as promised. Which of the following was created when Gemma agreed to paint the restaurant?
a bilateral contact
A contracting party's failure to perform an absolute duty owed under a contract is called .
a breach of contract
Section 406 of the Sarbanes-Oxley Act requires a public company to disclose whether it has adopted ___________ for senior financial officers.
a code of ethics
Brandon buys a house for $500,000. He puts $25,000 down and borrows $475,000 from a bank, which takes a mortgage on the property to secure the loan. Brandon then defaults, and when the bank forecloses on the property, it is worth only $100,000. There is a deficiency of $375,000 ($475,000 loan − $100,000 foreclosure sale price). The bank can recover the $375,000 deficiency from Brandon's other property, but the bank has to bring a legal action against Brandon to do so. In order to recover the $375,000, the bank needs to receive which of the following?
a deficiency judgment
A contract provision that states that a breaching party is not responsible to pay consequential damages is called .
a disclaimer of consequential damages
Which of the following best describes the Truth-in-Lending Act (TILA)?
a federal statute that requires creditors to make certain disclosures to debtors in consumer transactions and real estate loans on the debtor's principal dwelling
Amtrak, a commercial train line, decides to lease a new kind of high-speed train that is manufactured by American Railcar Industries, Inc. To finance the train acquisition, Amtrak goes to National Bank. National Bank purchases the trains from American Railcar Industries, Inc., and National Bank then leases the trains to Amtrak. This is an example of which of the following?
a finance lease
Angelica borrows $500,000 from University Bank to buy her first house. Angelica gives a mortgage to University Bank, making the house collateral to secure the loan. Later, Angelica defaults on the loan. University Bank can then follow applicable state law to sell the house at a judicial sale. If the house sells for $575,000, the bank keeps $500,000 and must remit $75,000 to Angelica. The bank's actions are an example of which of the following?
a foreclosure sale
Ella is headed off to her first year at college. She needs to purchase a new computer and a printer on credit from Computers 'R' Us, an electronics retailer. Computers 'R' Us will not sell the computer and printer to Ella unless she can get someone to guarantee the payment. Ella asks her roommate, Aria, to guarantee the payment. Aria agrees, and she is placed on the credit agreement as a guarantor. Aria is then secondarily liable. This scenario is an example of which of the following?
a guaranty arrangement
Your father owns 20 acres of undeveloped farmland that he inherited. He's not able to care for the property, so he decides to sell it. He finds a buyer, and that purchaser agrees to pay the purchase price in three installments over the next nine months. Your father's agreement is an example of which of the following?
a land sales contract
Which of the following is an agreement by the issuer to pay a sum of money on the receipt of an invoice and other documents?
a letter of credit
Starbucks contracts with a general contractor to build a new three-story MegaStarbucks that holds space for approximately 1,500 customers. The contract price is $150 million. However, after construction, Starbucks discovers that the completed building cannot support more than 700 customers because the contractor used inferior materials. The defect cannot be repaired without rebuilding the entire structure. Because this is , Starbucks may rescind the contract, recover any money that it has paid to the contractor, and require the contractor to remove the building.
a material breach
An arrangement where an owner of real property borrows money from a lender and pledges the real property as collateral to secure the repayment of the loan is called .
a mortgage
A manufacturing plant in your city discharges gallons of pollutants into the local river each day. The plant is required to monitor its output, keep samples of the discharges, and keep records. The manufacturing plant is an example of ____________________.
a point source od water pollution
In which of the following does a party acknowledge in court that he or she will pay a specified sum of money if a certain event occurs?
a recognizance
An office assistant makes an error when typing a contract, and both parties sign the contract without discovering the error. Later, a dispute over the contract arises and the error is discovered. The court can change the contract to correct the clerical error to read as the parties originally intended. The court's change is an example of which of the following?
a reformation
Sophia, a college student, wants to purchase a new car. She goes to Star One Autos and finds exactly the car she wants, and she wants to finance the car. However, because Sophia is young and doesn't have much of a credit history, Star One Autos will not sell the car to Sophia on credit. Star One Autos requires Sophia to find a co-signer on the purchase and credit contract. Sophia asks her mother Saundra to co-sign on the agreement. If Saundra decides to sign the contract, that contract would be an example of which of the following?
a surety arrangement
Alex, the owner of the new restaurant Rock & Shore, says to Gemma, a painter, "If you paint my shop by July 1, I will pay you $3,000." If Gemma does not paint the shop by July 1, there has been no acceptance, and Alex cannot sue Gemma for damages. If Gemma paints the shop by July 1, Alex owes Gemma $3,000. If Alex refuses to pay, Gemma can sue Alex to collect payment. Which of the following was created when Alex extended the job offer to Gemma?
a unilateral contract
Which kind of contract meets all of the following characteristics? (1) consists of an agreement between the parties, (2) is supported by legally sufficient consideration, (3) is between parties with contractual capacity, and (4) accomplishes a lawful object
a valid contract
Khloe wins a $30,000 judgment against Kim. Kim refuses to pay the amount of the judgment to Kim. Khloe can obtain from the court whereby the court directs the sheriff to seize Kim's automobile and other property and have them sold at public auction to satisfy the judgment she owes Khloe.
a writ of execution
orders that wages, bank accounts, or other property of the breaching party that are in the hands of third parties be paid over to the nonbreaching party to satisfy a judgment.
a writ of garnishment
Sophia, a college student, wants to purchase a new car. She goes to Star One Autos and finds exactly the car she wants, and she wants to finance the car. However, because Sophia is young and doesn't have much of a credit history, Star One Autos will not sell the car to Sophia on credit. Star One Autos requires Sophia to find a co-signer on the purchase and credit contract. Sophia asks her mother Saundra to co-sign on the agreement and Saundra does. Saundra, the person who acts as a surety, is commonly called a(n) .
accommodation party
A contract that is either express or implied-in-fact is called an contract.
actual
The U.S. government has created governmental bodies including the Federal Deposit Insurance Corporation (FDIC), the Central Intelligence Agency (CIA), and the Environmental Protection Agency (EPA). These governmental bodies are examples of _____________.
administrative agencies
_________________ is law enacted by governments that regulates industries and businesses and professionals.
administrative law
You are an employee of an administrative agency. Your main responsibility is to preside over administrative proceedings and decide questions of law and fact concerning cases. Your decisions are issued in the form of administrative orders, and these orders become final if they are not appealed. Your title is best described as _________________.
administrative law judge
The __________________ is a federal statute that establishes procedures to be followed by federal administrative agencies while conducting their affairs.
administrative procedure act
In the course of investigating and prosecuting possible violations of a statute, an administrative agency needs to obtain information from the people and businesses under investigation. Sometimes, the required information is not readily supplied. In order to obtain the necessary information for the investigation, an administrative agency can issue a(n) ___________________ to a business or person subject to its jurisdiction.
administrative subpoena
__________________ food is food that consists in whole or in part of any filthy, putrid, or decomposed substance or is otherwise unfit for food.
adulterated
A computer program or an electronic or other automated means used independently to initiate an action or respond to electronic records or performances in whole or in part, without review or action by an individual, is called an electronic .
agent
A buyer offers to purchase 40 pairs of red stilettos from a seller. The seller's red stilettos are temporarily out of stock. The seller sends the buyer 40 pairs of silver stilettos and notifies the buyer that these stilettos are being sent a replacement. The buyer is free either to accept or to reject the silver stilettos. The seller's shipment of nonconforming goods is an example of which of the following?
an accommodation
A breach that occurs when one contracting party informs the other that he or she will not perform his or her contractual duties when due is called .
an anticipatory breach
Which of the terms below is often used in addition to the words writing and record and thus recognizes that UCC contracts and other information may be sent or stored by electronic means rather than in tangible writings?
an electronic record
The United States Forest Service is planning a large-scale timber harvest in a national park in the western United States. It will have significant impacts on the natural environment in the area where the harvest will take place as well as the surrounding areas. As a prerequisite to proposing this legislation, the federal government must prepare ______________________.
an environmental impact system
Your friend Buffy signs a contract to purchase a new BMW automobile from Luxury Motors. Buffy then pays for the car and Luxury Motors delivers the car to Buffy. Buffy's contract is an example of which of the following?
an executed contract
Your friend Buffy signs a contract to purchase a new BMW automobile from Luxury Motors. She has not yet paid for the car, and Luxury Motors has not yet delivered the car to Buffy. Buffy's contract is an example of which of the following?
an executory contract
You make an verbal agreement to purchase your next-door neighbor's red bicycle. Your agreement is an example of which of the following?
an express contract
The following elements must be established to create a certain type of contract: 1. The plaintiff provided property or services to the defendant. 2. The plaintiff expected to be paid by the defendant for the property or services and did not provide the property or services gratuitously. 3. The defendant was given an opportunity to reject the property or services provided by the plaintiff but failed to do so. These elements are part of which kind of contract?
an implied-in-fact contract
For which type of contract is no special form or method required for their creation, and thus, the parties to this contract can use any words they choose to express their contract?
an informal contract
Grace is a professional soccer player. She enters into a ten-year employment contract with a professional soccer team. However, later, Grace breaches the contract and enters into a contract to play for a competing professional soccer team. Here, the first team can obtain to prevent Grace from playing for the other team during the remaining term of the original contract.
an injunction
If the variety of goods to a sales contract is left open, the buyer is given the option of choosing those goods. This unspecified variety is an example of which of the following types of open terms?
an open assortment term
A printer and a publishing company enter into a contract whereby the printer agrees to ship the printed books out to the publishing company's customers. However, the contract does not specify a shipper. In this case, the seller is obligated to make the shipping arrangements under which of the following types of open terms?
an open delivery term
If the parties to a sales contract do not agree on when to pay, payment is due at the time and place at which the buyer is to receive the goods. This unspecified date and location is an example of which of the following types of open terms?
an open payment term
A small farm enters into a contract to sell its corn to a cereal manufacturer. Their contract provides that a price for the corn will be set by the federal government. This unnamed amount is an example of which of the following types of open terms?
an open price term
A nonjudicial, private resolution of a contract dispute is called .
arbitration
You purchased a used car for $6,000, and paid in cash. Your purchase is a sale of a good subject to which of the following?
article 2 of the UCC
An agreement between the parties to a dispute whereby they agree that the decision and award cannot be appealed to the courts is called .
binding arbitration
The Department of the Interior (DOI) is responsible for the management and conservation of the majority of federal land and natural resources and administers programs relating to Native Americans, Alaska Natives, Native Hawaiians, territorial affairs, and insular areas of the United States. The DOI is an example of a(n) ______________.
cabinet-level federal department
Sales transactions in the United States used to be guided by the principle of _______________, or "let the buyer beware."
caveat emptor
The _______________ is a federal statute that provides comprehensive regulation of air quality in the United States.
clean air act
SalesCorp enters into a written contract to employ Maria as a chief operations officer of the company for two years, at a salary of $20,000 per month. After one year at work, SalesCorp informs Maria that her employment is terminated. This is a material breach of the contract. If Maria is unable to find a comparable job, she can sue SalesCorp and recover the salary for the remainder of her contract as .
compensatory damages
Dina, who owns a women's retail store, contracts to purchase a large volume of cocktail dresses from a manufacturer for $75,000. At the time of performance, Dina pays the $75,000. She has performed her obligation under the contract once she tenders the $75,000 to the manufacturer. The manufacturer ships the cocktail dresses to Ashley when required to do so and Ashley accepts the cocktail dresses. This is an example of which of the following?
complete performance
Target, a major retailer, contracts with FlyLite, a major manufacturer of personal flight devices, to purchase one million of the first personal hoverboards produced by FlyLite at $200 per hoverboard. FlyLite plans to sell these hoverboards in its stores nationwide at $500 each, and FlyLite is aware that Target intends to resell the hoverboards. The popularity of the hoverboards guarantees that all those purchased by Target will be sold. However, due to mismanagement, FlyLite breaches this contract and fails to deliver the hoverboards to Target. Target cannot purchase the hoverboards elsewhere because FlyLite holds the copyright and trademark on the hoverboards. Therefore, Target can recover the lost profits on each lost sale as _________ from FlyLite—that is, the difference between the would-be sales price of the hoverboards ($500) and the purchase price of each ($200).
consequential damages
For a contract to be enforceable, something of legal value must be given in exchange for a promise. Money, personal property, real property, provision of services, and the like, qualify as consideration. To which element of an enforceable contract does the scenario refer?
consideration
Credit that is extended to natural persons for personal, family, or household purposes is called .
consumer credit
While browsing the Internet, you come across a notice from the Consumer Product Safety Commission (CPSC) that announces the recall of a candle warmer product you have in your home because the product poses fire and burn hazards to customers. The CPSC is authorized to require the manufacturer to recall the candle warmers under the _________________.
consumer product safety act
John Smith was the owner of a corporation in 1912 that sold meat products to consumers. However, in order to stretch the supply of his product, he also mixed in other ingredients that were both filthy and unfit for food. In that time, sales transactions were guided by the principle of caveat emptor, or "let the buyer beware," so the responsibility was on the consumer to avoid unsafe products and not on the business to produce safe products. It was in response to this kind of corporate behavior that federal and state governments in the United States enacted a variety of statutes regulating the safety of food, drugs, cosmetics, toys, vehicles and other products, which are collectively referred to as ____________________.
consumer protection laws
Sliced Bread Inc. is a corporation based in the United States of America. To improve the society in which it exists, Sliced Bread Inc. pays its fair share of taxes and directs other funds to subsidize schools and help educate children. The actions that Sliced Bread Inc. is taking are an example of the _____________ theory.
corporate citizenship
An instrument that gives a creditor a security interest in the debtor's real property that is pledged as collateral for a loan is called a .
deed of trust
The _______________ is a doctrine that says when administrative agency is created, it is delegated certain powers; the agency can use only the legislative, judicial, and executive powers that are delegated to it.
delegation doctrine
The _______________ is a federal act that protects persons from harassment by federal administrative agencies.
equal access to Justice act
A doctrine that permits judges to make decisions based on fairness, equality, moral rights, and natural law is called the doctrine of .
equity
You are the owner of a small business called Top n' Shop. As a business owner, you believe that it is best to look to outside sources for ethical rules or commands and solve your ethical conundrums by looking to the Bible for rules and commands to follow. Your ethical philosophy is best described as _______________.
ethical fundamentalism
_______________ is a theory of ethics that says a person looks to an outside source for ethical rules or commands.
ethical fundamentalism
The CEO of a multinational corporation that produces mouthwash is asked about his philosophies in an interview and states that in his personal and business life, he makes decisions of an ethical nature based on his own opinions of what is right and wrong. The CEO's philosophy can best be described as ___________.
ethical relativism
______________ is a moral theory stating that individuals must decide what is ethical based on their own feelings about what is right and wrong.
ethical relativism
__________ is/are a set of moral principles or values that governs the conduct of an individual or group.
ethics
Federal and state laws prohibit murdering another person. If a person murders another person, then he is violating federal and state laws, and ethics would also prohibit murdering another person. The intertwined nature of ______________ is/are represented by this scenario.
ethics and the law
A fast-food restaurant called Paunchy Burger runs an ad campaign in which one of the actresses says that the chain's Mega-Burger, which contains over 2,000 calories, is a "cornerstone of a healthy, balanced diet." The FTC, finding this advertising in violation of Section 5 of the FTC Act, reaches an agreement with Paunchy Burger such that the chain stops running the ads. The Mega-Burger ad is an example of _______________________.
false and deceptive advertising
At the grocery store, you notice a new brand of cereal. The front of the box says, "TotallyGood Crunch," and text in a callout reads, "boosts your immune system." Although the cereal contains some vitamins and antioxidants, consuming TotallyGood Crunch won't actually prevent you from becoming ill. The "boosts your immune system" claim on the TotallyGood Crunch box is an example of ___________________.
false and misleading labeling
_________________are government agencies created by the U.S. Congress that have broad regulatory powers over key areas of the national economy.
federal administrative agencies
You are a researcher of American television shows and discover that a contentious relationship existed between the FCC and a popular but raunchy television program that aired during the late 1990s. In order to substantiate the claims you make in your research, you require hard proof that the FCC made complaints against the television show. To obtain documents related to these complaints, you could file a request under the __________________.
freedom of information act
_______________ consists of laws that regulate businesses and industries collectively.
general government regulation
Two parties consent to a contract. However, in court, it's found that one of the parties obtained consent through duress. This scenario exemplifies which of the following defenses to the enforcement of contracts?
genuineness of assent
Tangible items that are movable at the time of their identification to a contract are called .
goods
Each day, your local community disposes of hundreds of pounds of garbage. Once per week, the garbage is collected by garbage collectors and transferred to an energy resource recovery facility, where municipal solid waste is processed and converted into energy. The garbage collected from your community is an example of _________________.
hazardous waste
The federal cabinet-level U.S. Department of Homeland Security (DHS) was created in 2002 when Congress enacted the _________________.
homeland security act
An equitable doctrine whereby a court may award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contract existed is called the doctrine of .
implied-in-law contract
Joshua is a new employee at the headquarters of a company that produces baked goods. Recently, he has noticed a sense of fatigue after work, even though his job is not physically demanding, and he frequently has a headache by lunchtime. Joshua's illnesses at work may be caused by exposure to ___________________.
indoor air pollution (sick building syndrome)
Kate is a professional soccer player, and she signs a five-year contract to play soccer for a professional team. Two years into the contract, another professional soccer team, with full knowledge of Kate's contract with the other team, offers Kate twice the amount of money that she is currently making to breach her contract and sign and play with the second soccer team. Kate then breaches her contract and signs to play for the second team. The first team can recover tort damages—including punitive damages—from the second team for the tort of .
interference with contractual relations
A federal administrative agency has decided to interpret existing statutory language and has issued a statement of policy that details what the agency intends to do in the future. This is an example of an administrative agency issuing a(n) ________________.
interpretive rule
___________________ is the authority of an administrative agency to adjudicate cases in an administrative proceeding.
judicial authority
_____________ is that which must be obeyed and followed by citizens, subject to sanctions or legal consequences; a body of rules of action or conduct prescribed by controlling authority and having binding legal force.
law
A(n) is a document that is issued by a bank on behalf of a buyer who purchases goods on credit from a seller that guarantees that if the buyer does not pay for the goods, then the bank will pay the seller.
letter of credit
You are about to become a doctor, but before you do, you must send a detailed application to your state's medical regulatory body. The agency also will accept your letters of recommendation. In this instance, you are applying for a(n) _____________ from your state's medical regulatory body to practice medicine.
license
Pear Smartphones has discovered a new kind of silica, which will make light, inexpensive, virtually unbreakable glass for their phones. Pear Smartphones contracts to purchase the mining equipment necessary to collect the silica from Diggers Inc. The contract states that the equipment is to be delivered by July 1, 2018. The parties know that Pear Smartphones cannot start collecting the silica until it receives this equipment. It is uncertain how much silica the digging will yield. In their contract, the parties agree that Diggers Inc. will pay $20,000 per day for each day after July 1, 2018, that the equipment is not delivered. The potential $20,000/day payment is an example of which of the following?
liquidation damages
Your local zoning board holds inspections to enforce city zoning laws. The local zoning board is an example of a _______________.
local administrative agency
The _________________________ is a federal statute that extends limited environmental protection to the oceans.
marine protection, research and sanctuaries act
As a business owner, you believe that your highest responsibility is to gain as much profit as possible. You also believe that the interests of the other constituencies of your business, including the employees and community residents, are not important in and of themselves. Your business subscribes to the ______________ theory of social responsibility.
maximizing profits
_______________ is a theory of social responsibility stating that a corporation owes a duty to take actions that maximize profits for stakeholders.
maximizing profits
The _________________ is an amendment to the Food, Drug, and Cosmetic Act (FDCA) that gives the Food and Drug Administration (FDA) authority to regulate medicinal devices and equipment (e.g., heart pacemakers, surgical equipment).
medicinal device amendment
A sporting goods dealer is considered a for the goods sold in her store because she is a person who deals in the goods of the kind involved in the store's sales transactions and because, by her occupation, she holds herself out as having knowledge or skill peculiar to the goods involved in the transactions.
merchant
A nonbreaching party's legal duty to avoid or reduce damages caused by a breach of contract is called .
mitigation of damages
You are the owner of an oil company that was responsible for an oil tanker crossing the ocean toward the Gulf of Mexico. The ship ran aground and spilled 90 million gallons of oil, causing damage to at least 40 miles of the coastline. Your company financed the spill cleanup efforts and compensated those who were injured by the oil spill. Under the theory of ___________, your company has met its duty of social responsibility.
moral minimum
_______________ is a theory of social responsibility stating that a corporation's duty is to make a profit while avoiding causing harm to others.
moral minimum
You are the owner of a factory that emits sulfur oxide into the air in the process of burning coal to fuel production operations. To comply with the Clean Air Act, your state monitors your factory to ensure that pollutant levels do not exceed ______________________.
national ambient air quality standards (NAAQS)
You purchase a cell phone for the first time and receive a new telephone number. After giving your phone number to some national businesses in the course of making purchases, you begin receiving unwanted calls from telemarketers from other businesses at all hours of the day. To stop receiving these telemarketing calls, you should add your phone number to the ______________________.
national do not call registry
Checks, drafts, notes, and certificates of deposit are special forms of contracts recognized by the UCC. They require a special form and language for their creation and must meet certain requirements for transfer. These are examples of which of the following types of formal contracts?
negotiable instruments
Damages awarded when the nonbreaching party sues the breaching party even though no financial loss has resulted from the breach are called________damages.
nominal
_____________ are geographical areas that do not meet established air quality standards.
nonattainment areas
You are the owner of several oil tankers as part of your business, Transit Inc. As the owner of the oil tankers, it is your responsibility to prove that your tankers are fully insured to cover any liability that could occur in the event of an oil spill. In 2014, you phased out several older oil tankers so that all of the tankers owned by your company would have double hulls by 2015. The measures you have taken ensure that Transit Inc. complies with the ____________________.
oil pollution act
Furniture Now is a store that rents furniture to low-income individuals, and these individuals take title to the furniture after having paid the cost of the furniture (which is often overpriced with high interest rates). Hazel, an elderly low-income person, has rented and purchased a living room set, a dining room set, and a bedroom set from Furniture Now. Hazel rents an HD television from Furniture Now and signs a contract that states that if Hazel falls more than three months behind in her television payments, Furniture Now can recover all of the furniture she had previously purchased from the store as liquidated damages. Because the actual damages are clearly determinable in advance and the liquidated damages are excessive and unconscionable, this liquidated damages clause would be considered a .
penalty
A party who appeals the decision of an administrative agency is called the ___________.
petitioner
A power stated in a mortgage or deed that permits foreclosure without court proceedings and sale of the property through an auction is called .
power of sale
The _______________ is a federal act that states that federal administrative agencies can maintain only information about an individual that is relevant and necessary to accomplish a legitimate agency purpose.
privacy act
You are the head of the Federal Communications Committee (FCC), the federal agency that regulates interstate and international communications by radio, television, wire, satellite, and cable. In the course of regulating interstate and international communications, your agency must follow certain procedures. _______________ is law that establishes the procedures the FCC must follow in the course of performing its regulatory duties.
procedural administrative law
The Consumer Product Safety Commission (CPSC) has issued a requirement for infant bedside sleepers that requires them to have a minimum side height to ensure that infants cannot climb out of the sleepers. This requirement is one example of a _________________.
product safety standard
A ___________ is a lawsuit that is brought under the federal False Claims Act—also known as the Whistleblower Statute—which permits private parties to sue companies for fraud on behalf of the government and share in any monetary recovery.
qui tam lawsuit
A written document filed by a lender or trustee with the county recorder's office that is proof that a mortgage or note secured by real property has been paid, is called a .
reconveyance
An action to undo a contract that is available where there has been a material breach of contract, fraud, duress, undue influence, or mistake is called .
rescission
The return of goods or property received from the other party to rescind a contract is called .
restitution
The ___________________ is a federal statute that authorizes the EPA to establish national primary drinking water standards.
safe drinking water act
_______________ is a section of the Sarbanes-Oxley Act that requires a public company to disclose whether it has adopted a code of ethics for senior financial officers.
section 406
Christina purchases an automobile from a car dealership. She borrows part of the purchase price from a lender. The lender requires Christina to give it a security interest in the automobile to secure the loan. Christina's loan is an example of which of the following?
secured credit
MacGregor's Saddle Corporation owns a factory that dumps thousand of gallons of hazardous waste into a river near a town called Heartlake. The waste has a negative effect on the homeowners, farmers, and others who use the river's waters in Heartlake. ____________ requires MacGregor's Saddle Corporation to consider the consequences that dumping this hazardous waste will have on the people of Heartlake in addition to the bottom line.
social responsibility
Goods that buyers and lessees order that are to be manufactured to the buyer's or lessee's unique specifications are called .
specially manufactured goods
The Federal Energy Regulatory Commission (FERC) is the U.S. federal agency with jurisdiction over interstate electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. FERC is an example of an administrative agency that administers __________________ laws.
specific government regulation
On November 1, Dwight enters into a contract to purchase a house from Jim for $650,000. The closing date is set for December 1. On December 1, Dwight brings the money to the closing, but Jim does not appear at the closing and thereafter refuses to sell the house to Dwight. In this case, because each piece of real estate is considered unique, Dwight can bring an action of against Jim and obtain a court judgment ordering Jim to sell the house to Dwight.
specific performance
A corporation called JamPants Inc. overextended its business and must now close one of the plants where its product is manufactured. The leadership has settled on the smallest and least-profitable plant, which is located near the town of Atwood. Under the _____________ theory, the leadership of JamPants Inc. must consider the effects that closing the plant will have on the current employees and local community, as well as shareholder interests.
stakeholder interest
Michigan's Department of Environmental Quality is responsible for regulating the land, waterways, and other environmental issues in the state of Michigan. Michigan's Department of Environmental Quality is an example of a ________________.
state administrative agency
A(n) ________________ is a statement issued by an administrative agency that announces a proposed course of action that the agency intends to follow in the future.
statement of policy
You are the owner of a large manufacturing plant that is responsible for a high volume of emissions that affect the air quality in the area around your plant. Your plant is an example of a _____________________.
stationary source of air pollution
Mark Zuckerberg contracts with A-1 Construction Co. to have A-1 construct a new school building for $100 million. The architectural plans call for installation of three-ply windows in the building. A-1 constructs the building exactly to plan except that it installs two-ply windows. A-1's two-ply windows are an example of which of the following?
substantial performance
A(n) ______________ is a rule issued by an administrative agency that has the force of law and to which covered persons and businesses must adhere.
substantive rule
An unconditional and absolute offer by a contracting party to perform his or her obligations under a contract is called .
tender of performance
______________________ was an oil spill that occurred in the Gulf of Mexico from an oil rig owned by BP p.l.c. (formerly British Petroleum) that spilled 5 million barrels of oil over a 5,000-mile area of the Gulf of Mexico. This was the largest oil spill in U.S. history.
the BP oil spill
Your 15-year-old sister is tired of having to borrow cash from your parents to go to the movies with her friends. Your sister doesn't have a job, but she decides to sign up for a credit card. A company called Credit4U issues her a card. Credit4U has violated which of the following?
the Credit Card Accountability Responsibility and Disclosure Act of 2009
Rashena is a Muslim American woman who wears a hijab. She travels for her work frequently. On one of her long flights, the flight attendants are passing out credit card applications. Rashena decides to take one and to apply for a new credit card that will help her earn free airline miles. Later, she receives notice that she's been rejected for the credit card, although her credit is excellent. At the bottom of the notice, someone has written "Go back to your country, Muslim." The credit card company has violated which of the following?
the Equal Credit Opportunity Act (ECOA)
Which of the following gives consumers the right to obtain one free credit report once every 12 months from the three nationwide credit reporting agencies (Equifax, Experian, TransUnion)?
the Fair and Accurate Credit Transactions Act
You are an employee of a large food manufacturing company that produces products under many different brands. In the course of the ethics training you are required to undergo as an employee of the company, you learn about various federal laws governing your industry. You also learn that your company has breached several of those laws. You may sue the company on behalf of the federal government under _______________.
the False Claims Act (Whistleblower Statute)
Which of the following is a federal statute that is designed to eliminate many abusive mortgage loan practices and mandates new duties and disclosure requirements on mortgage lenders and others?
the Mortgage Reform and Anti-Predatory Lending Act
A seller orally agrees to sell her couch to a buyer for $650. When the buyer tenders the purchase price, the seller asserts the Statute of Frauds and refuses to sell the couch to him. The seller is correct. The contract must be in writing to be enforceable because the contract price for the couch exceeds $499.99. Under which of the following rules is the seller correct?
the UCC Statute of Frauds
A model act that includes comprehensive laws that cover most aspects of commercial transactions is called .
the Uniform Commercial Code (UCC)
In certain circumstances, the UCC permits an acceptance of a sales contract to contain additional terms and to act still as an acceptance rather than a counteroffer. This is known as which of the following?
the additional terms rule
When merchants negotiate sales contracts, they often exchange preprinted forms. These "boilerplate" forms usually contain terms that favor the drafter. Thus, an offeror who sends a standard form contract as an offer to the offeree may receive an acceptance drafted on the offeree's own form contract. This scenario raises important questions about whether there is a contract and, if so, what its terms are. Which UCC rule helps merchants to resolve this impasse?
the battle of the forms
Occasionally, the express terms of a written contract are not clear on their face and must be interpreted. In such cases, reference may be made to certain sources outside the contract. Which source considers the conduct of contracting parties in prior transactions and contracts?
the course of dealing
Occasionally, the express terms of a written contract are not clear on their face and must be interpreted. In such cases, reference may be made to certain sources outside the contract. Which source considers the previous conduct of contracting parties concerning the contract in question?
the course of performance
_______________ permits private parties to sue companies for fraud on behalf of the government.
the false claims act (whistleblower statute)
On August 1, Tesla Motors offers to sell a Model S to Sara for $80,000. Tesla Motors signs a written assurance to keep that offer open to Sara until September 15. On September 10, Tesla Motors sells the car to another buyer. On September 15, Sara tenders $80,000 for the car. Tesla Motors is liable to Sara for breach of contract under which of the following?
the firm offer rule
You are a person with a chronic illness that requires expensive monthly treatments. You will require these treatments for the rest of your life. Before 2010, your insurance company had a cap on the lifetime amount in benefits that it would pay. This meant that at some point in the future, your insurance company would stop paying benefits and you would become responsible for paying the entire cost of your treatments. After 2010, the situation changed and your insurance provider was no longer able to impose this cap. Under ______________________, insurers are prohibited from imposing lifetime limits on the payment of benefits.
the health care reform act
Which of the following says that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties?
the objective theory of contracts
Jon is buying a new car, and he decides to sell his old car to his friend Greg. Greg and Jon enter into a contract that states that Greg will purchase Jon's old car for $7,000. This contract is intended to be a final expression of the parties' agreement. However, after Greg tenders the $7,000, he and Jon get into an argument over the car's price. Jon claims that, prior to the contract, Greg verbally agreed to actually pay $8,000 for the car. Jon's claim would be inadmissible in court under which of the following?
the parol evidence rule
Which of the following is a right that allows the mortgagor to redeem real property after default and before foreclosure?
the right of redemption
An implied covenant under which the parties to a contract not only are held to the express terms of the contract but also required to act in "good faith" and deal fairly in all respects in obtaining the objective of the contract is called .
the tort of bad faith
Which of the following is a rule that permits all credit-card companies with whom a cardholder has a credit card to raise the interest on their card if the cardholder is late in making a payment to any credit-card company?
the universal default rule
Jolt Electric Inc. is an electric utility plant in your area. Recently, it has been noted by researchers that unprecedented numbers of fish have been dying in the river adjacent to the utility plant, and the die-off is causing a ripple effect in the local ecosystem. The fish die-off in the river adjacent to Jolt Electric Inc. could be caused by ___________________ pollution from the plant.
thermal
In the course of running your manufacturing company, which produces a wide range of household cleaners, your team discovers a new chemical that seems to be quite effective when used as a cleaning agent. Before you can market this chemical to the public, you must test the chemical to determine its effects on human health and the environment and report the results to the EPA under the ______________________.
toxic substances control act
A contract in which the essential elements to create a valid contract are met but there is some legal defense to the enforcement of the contract is called a(n) contract.
unenforceable
In the search for a mortgage agreement to purchase your first home, you visit a mortgage lender, Big Mortgages Inc. The representative puts you in a high-pressure situation and uses extremely aggressive sales tactics, including telling you that no one else will give you a mortgage, and if you leave, you will never be able to purchase a home. Eventually convinced, you to take out a much larger mortgage than you can afford based on your income and other expenses. Overly aggressive sales tactics are an example of ___________________.
unfair and deceptive practices
The Fourth Amendment to the U.S. Constitution protects persons (including businesses) from ____________________.
unreasonable search and seizures
Mickey borrows $5,000 from Minnie. Minnie lends the money to Mickey without taking an interest in collateral for the loan. Minnie is relying on Mickey's credit standing when she makes the loan. Minnie's loan to Mickey is an example of which of the following?
unsecured credit
A cattle rancher contracts to purchase 1,000 bushels of "corn" from a farmer. The farmer delivers feed corn to the rancher. The rancher rejects this corn and demands delivery of corn that is fit for human consumption. If the parties did not have any prior course of performance or course of dealing that would indicate otherwise, would be used to interpret the word "corn."
usage of trade
A contract that has no legal effect is called a(n) contract.
void
A contract in which one or both parties have the option to void theircontractual obligations is called a(n) contract.
voidable
________________ are areas that are inundated or saturated by surface water or groundwater that support vegetation typically adapted for life in such conditions.
wetlands
Edward convinces Bella to invest in his company selling vacuum cleaners door to door. Bella then discovers Edward's business wasn't legal and that she invested in fraudulent investment scheme. Bella sues Edward for fraud. Because it may take more than one year before the case is heard, Bella is afraid that Edward will transfer any money or property he has to avoid having to pay a judgment if he loses at trial. Bella can immediately make a motion to the court to have the court issue , which would order the seizure of Edward's property, pending the outcome of the lawsuit.
writ of attachment
Beth wins a $40,000 judgment against Jill. Jill then refuses to pay the amount of the judgment to Beth. Jill currently works for Hilltop University. Thus, after receiving this writ of garnishment, Hilltop University must deduct the amount of the garnishment from Jill's wages before she is paid and remit this amount to Beth until the judgment is paid. Beth is able to obtain a postjudgment ________ from the court whereby the court orders Hilltop University to pay 25 percent of Jill's weekly disposable earnings (after taxes) directly to Beth.
writ of garnishment
The rule is a UCC rule that provides that if both parties to an oral sales or lease contract are merchants, the Statute of Frauds writing requirement can be satisfied if (1) one of the parties to an oral agreement sends a written confirmation of the sale or lease within a reasonable time after contracting and (2) the other merchant does not give written notice of an objection to the contract within 10 days after receiving the confirmation.
written confirmation
