Business Final Exam
Consideration is one of the necessary elements for an effective gift
F
Consumer Finance Corporation (CFC) extends credit to consumers. CFC is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on a consumer's
RACE
Marketing, Inc., offers to create a campaign to increase N'Ice Cream, Inc.'s online business. N'Ice agrees to pay for the service. These parties have
an express contract.
Habitable Premises Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays the firm just compensation. This is
an expropriation.
Max orally agrees to construct two outbuildings on Ned's ranch for a stated price. Max performs, but Ned does not pay. To recover on a theory of quasi contract, Max must show that if Ned were allowed to retain the benefit of their bargain, Ned would
be unjustly enriched.
Compliance with Title VII of the Civil Rights Act is monitored by
the Equal Employment Opportunity Commission.
Able Collection Agency calls Bob several times a day, and in the middle of the night, about an overdue bill on behalf of Car Sales, Inc. This is a violation of
the Fair Debt Collection Practices Act.
Tom is seventeen years old. Under the Fair Labor Standards Act, he cannot
work in a hazardous occupation.
Nevin negotiates a deal for the sale of twenty-five acres of farmland to Otis. Nevin promises to hold the offer open in return for a small payment but does not state an exact period of time. With respect to this offer
. a reasonable period of time is implied.
Denny works for Engineers P.A. While working on an Engineers project, Denny is injured. Under state workers' compensation laws, he will be compensated only if the injury was
Accidental
Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, Credit Loan must inform potential borrowers of
Credit Loan's credit terms
___________________ is law that has to do with wrongs committed against society for which society demands redress.
Criminal Law
A U.S. employer operating in a foreign country must abide by U.S. discrimination laws even if doing so violates the laws of that foreign country.
F
A finder of mislaid property has no obligation to return the property to the true owner.
F
A party may enter into a contract even if they did not intend to do so.
F
A worker who has voluntarily left his or her job qualifies for unemployment compensation to partially make up for the worker's loss of income.
F
Accessionoccurs when someone acquires title to a valuable piece of personal property by assuming a position of power.
F
Agency relationships cannot exist outside an employment, so agency law has a narrower reach than employment law.
F
An allegation that certain imported goods infringe on a U.S. firm's patents, should be investigated by the Export-Import Bank of the United States.
F
Establishing ownership rights is more complicated for personal property than for real property.
F
Flights over someone's land can never be a violation to the owner's property rights.
F
In a bailment for the mutual benefit of the bailee and the bailor, the bailee need not exercise reasonable care in storing items or holding property.
F
In an agency relationship, one party called the principal agrees to represent or act for another called the agent.
F
Personal property that is affixed to real property in a permanent way, such as tile installed in a house, is known as an appendix.
F
The Immigration Reform and Control Act makes it legal to hire, recruit, or refer for a fee someone not authorized to work in this country
F
The Outer Space Treaty declares that internationally recognized political boundaries extend from Earth into the farthest reaches of space
F
The covenant of quiet enjoyment guarantees that the buyer will not disturb the land or any of its neighbors
F
Consumer Staples, Inc., includes in its advertising obvious exaggerations, vague generalities, and puffery about its products. The firm may be subject to sanctions for
Nothing there is no violation
This law was designed to help reduce corporate fraud and unethical management decisions, by requiring accountability measures for publicly traded companies:
Sarbanes-Oxley Act.
A court can dismiss a Chapter 7 petition if it finds that the use of Chapter 7 would constitute substantial abuse.
T
A fee simple absolute is an estate or interest in land with no limits in terms of disposition or duration.
T
A person who accesses a computer online without authority to obtain protected data is subject to criminal prosecution
T
In an action based on breach of implied warranty, a buyer must show that the warranty existed, and its breach proximately caused the damage sustained.
T
In the United States, each government agency that operates (or authorizes) spacecraft is responsible for complying with U.S. law and international treaties.
T
Nations impose laws to restrict or facilitate international business because business activities can affect national interests
T
The Federal Food, Drug, and Cosmetic Act protects consumers against contaminated and misbranded food and drugs.
T
The UCC promotes commerce by simplifying and streamlining commercial transactions.
T
The covenant of quiet enjoyment forms the essence of the landlord-tenant relationship.
T
The discharge of an employee may in some circumstances give rise to a tort action of wrongful discharge.
T
The law protects a person's rights and interests in anything with an ascertainable value that is subject to ownership.
T
The obligation of commercial reasonableness underlies every sales and lease contract.
T
There are different types of taxes for real property and personal property.
T
To the extent that it has not been modified by the UCC, the common law of contracts applies to sales contracts.
T
Under the Fair Credit Reporting Act, a consumer can request the identity of anyone who has received a credit agency's report on the consumer.
T
Using an agent provides benefits to a principal but can also result in liability imposed on the principal.
T
When a debtor defaults, a secured creditor can take possession of the collateral without a court order, and either retain or resell the collateral.
T
Basso includes in his song "Chords" a few seconds of Dante's copyrighted sound recording "Etudes" without permission. Some federal courts have found that such digital sampling could be: (choose all applicable answers)
a "fair use" exception to the act. a violation of copyright law.
Construction Company has a claim against Diners Café to satisfy a debt that takes priority over other claims against the same property. This is
a lien.
Cal has an easement that allows him to drive across Dale's land to get to Cal's house. With respect to Dale's land, Cal's right is
a nonpossessory interest.
ABC Corporation wants to create something that will help protect their trade secrets and still allow communication between employees of all of their branches. What would be their best option?
an internal social media network.
In a suit against Karen, Luke obtains an injunction. This is
an order to do or to refrain from doing a certain act.
Beryl enters into a contract with Clay for a guided tour of Deep Canyon. Clay represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Most likely, Beryl
can rescind the deal based on fraudulent misrepresentation.
Pavers Inc. contracts to buy some heavy equipment from Earthmovers, Inc. Before either party performs, Earthmovers sells its assets to Excavation Corporation. On learning of the sale, Pavers is concerned about its contract with Earthmovers. Pavers should
demand assurances of performance from the seller.
Rancho Stables orders ten saddles from Saddles, Inc. The sales contract states that if the tack is defective, Rancho will allow Saddles to repair or replace it instead of rejecting the shipment. When the gear arrives, it is defective. In this case, the perfect tender rule
does not apply
Under the UCC, if a court deems a contract (or a clause) to have been unconscionable at the time it was made, the court can do any of the following (choose all applicable answers)
enforce the remainder of the contract without the unconscionable part. refuse to enforce the contract. limit the application of the unconscionable term, in order to avoid an unconscionable result.
Title VII of the Civil Rights Act applies to employers and labor unions with at least
fifteen employees or members
The Americans with Disabilities Act applies to workplaces with at least
fifteen workers
Oren believes that Plumbing Contractor discriminated against him on the basis of race. He files a suit against Plumbing under the Civil Rights Act. To establish a primafaciecase of employment discrimination, Oren must show that
he is a member of a protected class.
Crunchy, Inc., makes claims in its advertising about its snack products. Crunchy's claims would most likely be deemed deceptive if the claims
mislead a reasonable consumer.
Opal signs a promissory note payable to the order of Payday Loan Company. The note states that it is payable "with interest at the legal rate." This note is
negotiable
Earl buys a fishing license and goes fishing. He catches a trout, cleans it, cooks it, and eats it. Earl's acquisition of the trout is by
possession.
Rosa, who operates a Street Tacos restaurant in her apartment, is charged with criminal violations of the local health and building codes, state license regulations, and federal environmental statutes. To obtain a conviction, the prosecution must
prove beyond a reasonable doubt that Rosa committed every essential element of an offense.
With respect to different types of transactions, including ordinary loans, the purpose of a usury statute is to
set a maximum rate of interest.
The Family and Medical Leave Act requires certain employers to provide eligible employees with family or medical leave for any of the following reasons except
to go on an extended family vacation.
Equity International Inc., a U.S. firm, and Finance Invest Ltd., a firm in Great Britain, are parties to a contract with a forum-selection clause. This means that ________ is already decided.
which court will decide the disputes
The study of business law does not involve an ethical dimension.
False
When there is a direct conflict between a federal law and a state law, both laws are rendered invalid.
False
______ can excuse one from criminal liability under the theory of mistake.
. Mistake of fact
An illegal act committed by a business using nonviolent means to obtain a business advantage is a white-collar crime.
True
The prohibition against double jeopardy means that once a criminal defendant is acquitted (found "not guilty") of a particular crime, the government may not retry that defendant for the same crime.
True
Oscar owns Payroll Company, a bookkeeping service. Oscar pays Ripley $5,000 to steal a list of a competitor's clients. This deal is
Void
Chris operates the Devil's Brew chain of coffee stands. "Devil's Brew" is
a trade name
The UCC imposes on merchants
certain special business standards.
When both an owner and a contractor breach a construction contract, a court will attempt to strike a fair balance in awarding damages.
T
Kohl receives from Lily a camera stolen from Mark. Kohl knows that the camera is stolen, and he intends to keep it. Kohl is
criminally liable.
These things would indicate an employer/employee relationship and not an independent contractor (choose all applicable answers)
employer provides tools for the job.
To become a bailment, a delivery of property from one person to another must
involve personal property.
A constitution sets forth a government's
limits and powers.
With respect to debtors, the main goal of bankruptcy law is to
provide a new start without creditors' claims.
Cutting Edge, Inc., makes and sells tools. One of the tools is believed to be hazardous. The firm may be required to
remove the tool from the market.
Sources of consumer protection mean to implement and enforce provisions that exist at the level of
the federal, state, and local governments.
Salsa, Inc., employs three hundred workers at four locations in two states. Under federal law, Salsa must provide each eligible employee, during any twelve-month period, family or medical leave of
up to twelve weeks
Bert's Bagels, Inc., and other bakeries refer to a "baker's dozen" as consisting of a collection of thirteen baked goods. According to the UCC, this is
A usage of trade
A whistleblower is an employee who publicly reveals a co-worker's unsafe or illegal activity.
F
An easement is the right to go onto land owned by another and take away some part of the land itself or some product of the land.
F
To qualify as a sale under the UCC, the price in the transaction must be payable in cash.
F
Before being transported, hazardous waste produced by the operations of Fabrication, Inc., must be properly labeled and packaged under the Resource Conservation and Recovery Act by
Fabrication, Inc.
A controlling precedent is any legal authority or source of law that a court may look to for guidance but need not follow when making its decision.
False
A written contract must consist of a single document to constitute an enforceable contract.
False
An administrative legislative rule is not legally binding on businesses.
False
Tapping into a competitor's computer to obtain confidential business data is not a theft of trade secrets.
False
The Fraud Reduction and Data Analytics Act is used to identify and assess fraud risks in private companies.
False
The assignee receives greater rights than the original assigner had.
False
The crime victim must bring the case against the defendant.
False
The idea for "Price & Profit," an app that businesses can use to track their revenue, profit, and payroll, is protected by
It cannot be protected
"Fair use" includes exceptions for educational purposes for using copyrighted works.
True
A party who in good faith performs substantially all of the terms of a contract can enforce the contract against the other party.
True
An assault can be completed even if there is no actual contact with the plaintiff, provided the defendant's conduct causes the plaintiff to have a reasonable apprehension of imminent harm.
True
An employer's statements in written evaluations of employees are an example of a qualified privilege.
True
During any global outsourcing, a company should continue to monitor those suppliers to make sure those employers are treating their employees fairly.
True
Each member country to the TRIPS agreement must include in its domestic laws broad intellectual property rights, and effective remedies for violations.
True
If it were not possible to assign contract rights, many businesses could not continue to operate.
True
If the evidence of a defendant's guilt was obtained improperly, it normally cannot be used against the defendant in court.
True
In a case alleging slander, the plaintiff must prove special damages to establish the defendant's liability.
True
Persuasion that induces a person to act according to the will of a dominant party is undue influence.
True
Some torts can be criminal as well as civil, depending on the laws in place
True
Talk, Inc., offers to buy from Ultra Corporation 1,000 phones with certain features. Without notifying Talk, Ultra timely ships phones with fewer features. With respect to the offer, this shipment is an acceptance and
a breach
Richard owns Scholars Apartment House. His ownership rights include the right to sell or give away the property without restriction, as well as to use the property for whatever purpose he sees fit. His ownership interest is
a fee simple absolute.
Kim and Leola own a warehouse in which they operate Mini-Storage Corporation. On the death of either owner, that owner's interest in the warehouse passes to the surviving owner. This is
a joint tenancy.
Burger Heaven, a U.S. firm, makes a deal with a Canadian firm, Donny's Diners, that allows Donny's to use Burger Heaven's trade name in Canada in return for a fee. This is
a license.
Metro City operates its own municipal public drinking water system for which the Environmental Protection Agency has set maximum levels of pollutants. The city does not use any equipment to meet these standards. With regard to any contamination of the water, under the Safe Drinking Water Act, this is most likely
a violation.
France and the United States are signatories of the Berne Convention. Alain, a citizen of France, publishes a book first in France and then in the United States. Alain's copyright must be recognized by
all of the signatories of the Berne Convention.
The Uniform Commercial Code facilitates commerce
among the states.
Which would be considered real property (choose all applicable answers)
apples on a tree in an orchard. corn growing in a field.
Darla serves in a representative capacity for Ellen's Botanicals. To accomplish the objectives of this relationship, Darla's authority can be implied by
by custom.
Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is
confiscation
The new health care reforms (Obamacare) succeeded in doing the following (choose all applicable answers)
ended lifetime limits on healthcare coverage., gave patients access to preventative services for free.
To be eligible to participate in a state's health-insurance exchange, the state can require an insurance company to
justify premium increases
Once the electronic record _____________________________ or comes under the control of the recipient, the UETA deems it to have been sent.
leaves control of the sender
Sara believes that she was rejected for a position at Tour Agency on the basis of her race. Sara files a suit against Tour under the Civil Rights Act. To establish a primafacie case of employment discrimination, Sara must show the following (choose all applicable answers)
other persons of her race hold similar positions with similar employers. she applied and was qualified for the job in question.
Repair Service enters into a contract to fix washing machines in Soapy Suds Company's coin-operated laundries. Repair breaches the contract. Soapy is awarded compensatory damages. The purpose is to
provide Soapy with funds for its loss of the bargain.
In selling a warehouse, Riley, a real estate broker, tells Sam that the property has a certain capacity, making it suitable for a nightclub. Riley knows nothing about the capacity of the building, but it is not as he specifies. Sam buys the building. Sam's best course of action is most likely to
recover damages or rescind the contract to buy the building.
The offeror's act of withdrawing an offer is referred to as:
revocation.
An overemphasis on this, is the most common reason for ethical problems in the workplace:
short-run profit maximization.
The credit department of Mega-Mart often calls Nora at work about an overdue bill over the objection of Nora's employer. This is a violation of
the Fair Debt Collection Practices Act.
Bread Company hires Craig to sell the company's products in a certain area. Bread agrees to pay Craig a salary, plus commission, for a trial period. They also agree that he can sell using any methods and during any hours that seem appropriate. The key factor in whether Craig is Bread's employee is
the degree of the employer's control over the details of the work.
Georgia enacts a law requiring all businesses in the state to donate 10 percent of their profits to Protestant churches that provide certain services to persons whose income is below the poverty level. Price-Lo Stores files a suit to block the law's enforcement. The court would likely hold that this law violates
the establishment clause.
Caryn is faced with making a business decision. As she thinks about the problem, she feels that there is no easy answer. She continues to think about what is making her uncomfortable about the situation before brainstorming possible solutions. If Caryn is using the IDDR approach to decision making, she is engaged in which step?
the inquiry step
A judicial decision on the constitutionality of an executive order that limits certain state actions is
the power of judicial review.
The 1803 decision of the United States Supreme Court in the case of Marbury v. Madisonestablished
the power of judicial review.
For promissory estoppel to occur, the following requirements need to be met:
the promisor should have expected the promisee to rely on the promise. there must be a clear and definite promise. enforcement is necessary to prevent an injustice. the promisee has a reasonable reliance on the promise in a definite and substantial manner.
United, Inc., a U.S. film production company, files a suit against Video Ltd., a Mexican production firm, for infringement of intellectual property rights under Mexico's national laws. Both the U.S. and Mexico are signatories of the TRIPS agreement, under which United is entitled to
the same rights and protection under Mexican law as Video.
To succeed in a suit against a potential employer for discrimination under the Americans with Disabilities Act, a job applicant must show that he or she
was not hired solely because of a disability.
Grains, Inc., agrees to sell to Harvest Bread Company a certain quantity of refined grains. Some of the other terms in the deal are left open. In the case of a dispute, a court will presume
whatever is reasonable
Federal employment discrimination laws restrict the ability of employers to discriminate against workers on the basis of
Gender
Market Company employs workers, including Nita, at six locations in two states. Market's discharge of Nita outside the terms of an implied employment contract may result in
the employer's liability for breach of contract.
When a publication denies or casts doubt on another's legal ownership of property, and the property's owner suffers financial loss as a result, this is
the tort of slander of title.
Sal is mentally incompetent but has not been adjudged by a court to be incompetent. Sal enters into a contract with Tony for the cleaning and maintenance of Uptown Office building. Most likely, the contract is
voidable if Sal did not comprehend the consequences.
Performance, such as a payment of funds or a delivery of goods, must take place for a bilateral contract to be formed.
F
Shep offers to make digital copies of Reliable Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Reliable's acceptance by e-mail will be considered effective when
sent from Reliable's email.
The requirements of a novation are as follows
. an agreement by all the parties to a new contract. a new, valid contract. a previous, valid obligation.
An Internet service provider is normally held liable for publishing defamatory statements that come from a third party.
False
Embezzlement includes the making (or altering) of any writing in a way that changes the legal rights and liabilities of another.
False
If a breach of contract is minor, the nonbreaching party's duty to perform is discharged.
False
One element necessary for an effective offer is the terms must be reasonably priced.
False
The registration of a copyright is not evidence that the copyright is valid.
False
Under the Cybersquatting laws, if a person is offering to sell a domain name that is the same (or similar) as another's trademark and intends to profit from the sale, it is legal.
False
Aircraft Corporation employs mechanics, programmers, outside salespersons, and professionals, including pilots. Employees exempt from the Fair Labor Standards Act's overtime provisions include all of the following except
Mechanics
Any electronic communication having to do with business, made on a device that an employer provides to an employee for use in the "ordinary course of business," is subject to employer discovery.
True
Brandon has worked at Google for five years and is being considered for a management position. His supervisor, Claire, writes an e-mail about Brandon's performance to those evaluating him for the management position. The message contains certain negative statements, which Claire honestly believes are true. If Claire limits the disclosure of the contents of the message to company representatives, her statements will likely be protected by a qualified privilege.
True
In effect, a counteroffer converts the original offeror into an offeree with the power of acceptance.
True
In quasi-contract, the party who is seeking recovery must show that the other party who received a benefit, would be unjustly enriched if they were allowed to retain the benefit without paying for it.
True
International law derives from a variety of sources, including the laws of individual nations.
True
Under a construction contract that requires a builder to meet certain specifications, complete performance is required to avoid material breach.
True
Venue has to do with where the most appropriate physical location to file a lawsuit exists.
True
When concurrent jurisdiction exists, the parties may choose to bring the case in state or federal court.
True
Sara files a suit in a state court against Tech Innovations Inc. The parties are allowed to file litigation-related documents with the court online for their state. This is considered:
an electronic court filing system.
Steel Mill, Inc., makes an offer to Tom to enter into a contract to work as a mechanical engineer for a certain salary for one-year subject to a five-year renewal based on his performance. Tom accepts the offer. This is a valid contract because it includes
an offer and an acceptance.
Seafood Café Company makes products that can cause severe health problems to those with shellfish allergies. Seafood analyzes the cost of warning people of the risk (which they believe is obvious), and the risk of harm to people if no warning is included in advertising and on menus. This analysis most likely is part of
an outcome-based ethics.
Under the UETA if an electronic record or signature is the act of a particular person, the record, or signature may be ____________________ that person.
attributed to
Stig creates unique graphic works that feature characters of his own imagination. Copyright protection for Stig's work is
automatic and no registration required
One downside of binding arbitration is that if the parties are not satisfied with the decision, they:
cannot appeal the decision.
Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. With respect to the duties under the original contract, this transfer
does not relieve Bill of the potential obligation to perform.
Music Masters, Inc., enters into a contract to pay Nagi for a dozen original songs. Nagi transfers the right to payment under the contract to Omni Artists. After the transfer, Nagi's contract right to the payment is
extinguished
Federal overtime provisions apply only after a covered employee works more than
forty hours a week
Devon takes temporary family leave from her job at Equipment Sales Company to care for a newborn baby. With respect to Devon's health-care coverage, during the leave, under the Family and Medical Leave Act, Equipment
must continue it.
GoodGro, Inc., makes genetically modified seeds that are identical to Harvest Corporation's patented seeds, without Harvest's permission. This is most likely
patent infringement.
To avoid unethical practices by a foreign supplier, an effective business practice is to
routinely monitor the foreign workplaces.
According to a ______, the party who opens the box automatically accepts the terms by keeping the goods.
shrink-wrap agreement
Ken, a real estate agent, assures Lily that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lily buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lily may recover damages for
the agent's fraudulent misrepresentation.
Flo, the manager of Grounds Maintenance Inc., must decide whether to use an herbicide that could be unhealthy to employees. They want to use it (as well as the public) once it is on the ground. Flo might lose the client if she refuses to use the herbicide. If Flo analyzes the importance of good health and the avoidance of disease as the rights of people in making her decision, she is likely using
the principle of rights theory.
Shuster's lease of retail premises from Thurgood requires Shuster to pay certain fees, subject to the landlord's proof of the correct amount. Thurgood overcharges Shuster for the fees, without explanation. Most likely, the tenant can rescind the lease
with prompt notice.
Odell is an employee of Packing Corporation. She uses social media in a way that violates her employer's stated social media policies. Packing Corporation disciplines Odell, and then fires her after a second transgression. This is:
within the employer's rights.
