Business law final

The Food and Drug Administration (FDA) wants Pharmacy Inc. to produce certain records for review. To obtain the records, the FDA will issue

A rule for parole evidence.

A cargo vessel owned by Merchant Shipping Inc. discharges some of the oil contained in its hold into San Francisco Bay and onto the shore. Under the Oil Pollution Act, this is most likely

A violation

Under the principle of rights theory, a key factor in determining whether a business decision is ethical is how that decision

Affects the rights of others

Mandy and Marvin resolve their dispute over the damage to Marvin's real property due to Mandy's excavation for an irrigation pond next door by having a neutral third party render a binding decision. This is

Arbitration

Any action challenged as an attempt to monopolize must have been specifically intended to exclude competitors and garner monopoly power

Attempted monopolization

Breaking Bad Auto Clean, Inc. operates car washes throughout the United States. The government entity that this most likely to be involved in regulating the chain's environmental impact is

Breaking Bad Auto Clean, Inc.'s environmental impact is likely regulated by multiple government entities at the federal, state, and local levels.

Furniture Fashions advertises a special sale-all furnishings, half price. The ad does not state that the sale price does not include delivery or shipping costs. To avoid claims of deceptive advertising, furniture fashions should

Clearly and conspicuously disclose the shipping cost in its ads.

The federal government has the power to regulate commercial activities among the states under

Commerce clause

Blast Cap Inc., makes and sells products containing ingredients potentially hazardous to consumers. The government agency that has the authority to order Blast Cap to remove a product from the market is

Consumer Product Safety Commission

A business corporation that acts to ensure it employees are treated fairly and its operation minimally impact the environment is applying the concept of

Corporate social responsibility

In preparation for a trial between Aerial Endeavors. Inc. and Hot Air Balloon Company, the plaintiff's attorney places the defendant's chief executive officer (CEO) under oath. A court official makes a record of the attorney's questions and the CEO's answers. This is

Cross-examination

A trial court's capacity to directly observe witnesses' gestures, demeanor, and other nonverbal behavior supports the decision of an appellate court to

Defer to the trial court's findings on questions of fact.

Speedboat, Inc. and Safe Harbor dispute the meaning of their contract. Unable to agree on settlement, the parties prepare for trial. To obtain information, they engage in discovery. This includes gaining access to each other's witnesses and other types of evidence by

Depositions and other devices

A consumer may be denied credit or insurance on the basis of his or her credit report, and need not be notified of that fact.​

False

A federal statue applies only to those states that agree to apply it within their borders.

False

A group boycott that is intended to eliminate competition is legal

False

An agency can make rules that are as legally binding as laws passed by Congress

False

Controlling precedents are not binding authorities

False

Corporations never enjoy the same rights and privileges as natural persons do.

False

Drugs can be test-marketed to the public before they are ensured to be safe and effective.

False

Many point sources emitting pollutants into water do not need a permit.

False

Privacy rights receive no protection under federal law.

False

Under the Clean Water Act, criminal penalties apply whether a violation was intentional or unintentional.

False

Under the Sarbanes Oxley act of 2002 chief financial officers are not required to certify the accuracy of information in cooperate financial statements

False

Unilateral conduct can result in a violation of antitrust law.

False

Wetlands may be filled or dredged without a permit from the U.S. Army Corps of Engineers

False

When a release of hazardous chemicals from a site occurs, potentially responsible parties can avoid liability through transfer of ownership

False

Electronics Inc., through careless manufacturing practices, makes and sells products that are unsafe to consumers. This may be subject to sanctions under

Federal and State law

A failure of the Federal Bureau of Investigation to comply with a request under the Freedom of Information Act (FOIA) may be challenged in

Federal district court

Oscar files a lawsuit against Breckenridge Corporation. The defendant believes that even if the plaintiff's statement of the facts is true, according to the law the defendant is not liable. Breckenridge Corporation should

File a motion to dismiss

Sebastian signs a one-year lease for an apartment owned by Joan. Sebastian is a student and needs the apartment only for two semesters, at the end of which he plans to sublet it for the rest of the term. Sebastian's tenancy is

Fixed-term tenancy

Exotic Outings Corporation files a suit against Safari Adventures Inc. and seeks to examine certain documents in the defendant's possession. A legitimate reason for this examination is that the documents

Information that is relevant to the case

On a transfer of real property, the new owner should promptly record the deed because recording

Is the method by which the title to the property is transferred

A constitution sets forth a government's

Limits and powers.

Cherry Farms LLC and Sweet jelly Inc. - dispute the quality of goods delivered by the seller and the price agreed to by the buyer. With regard to this dispute, the two parties can

Litigate it, resolve it through an alternative method, such as arbitration, settle it between themselves.

At one time, a court of law could grant as a remedy only

Monetary Damages

Fight For Peace (FFP), a political lobbying group, wants a certain policy enacted into law. If FFP's policy conflicts with the U.S. Constitution, a law embodying it can be imposed by

No entity

The Vermont legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by

No one

Ernest files a suit in a federal district court against Maggie. Ernest loses the suit, appeals to the U.S. Court of Appeals for the Ninth Circuit and loses again. Ernest asks the United States Supreme Court to hear the case. The Court is

Not required to hear the case

According to the theory of corporate social responsibility, any decision by corporate management should consider how an action affects the firm's

Officers, shareholder's, suppliers, customer's and community

Mason stands in front of horse Shoe Tavern, shouting "fighting words" that are likely to invite Horse Shoe's patrons to respond violently. The First amendment protects such speech

Only if it is symbolic

Mixed Nuts Candies (MNC) makes goods that can cause severe health problems to those with peanut allergies. MNC analyzes the cost of warning people of the risk (which the company's management sees as obvious) and the harm to people if no warning is provided. This analysis most likely is part of

Outcome based ethics

The state of Washington can regulate building contractors and building codes in the state under its

Police Powers

The Environmental Protection agency (EPA) is an executive agency. As an executive agency, the EPA is subject to the authority of

President

Emma claims that a North Carolina state statute infringes on her "procedural due process" rights. This claim focuses on

Procedures used in making decisions to take life, liberty, or property.

Iced Treats, Inc., makes and sells ice cream under a variety of brand names. Frozen Confections wants to merge with Iced Treats, Inc.,its main competitor. In weighing a challenge to the del, a court looks at the relevant product market. This most likely includes ice cream and

Products that have identical attributes, such as frozen yogurt

A suit filed against Mega Corporation, alleging that the firm committed the offense of monopolization. To determine whether Mega Corporation has monopoly power requires looking at

Relevant market

Business ethics looks at whether business decisions

Right or wrong

Kitchen Mechanics, Inc. is subject to a decision by the Consumer Product Safety Commission. Opposed to the decision, the firm wants a court to review it. First, however, the firm must

Standing to sue

Weak Steel Mill Inc. makes steel forms of substandard quality. Acme Building Company has never bought or used a Weak Steel Mill form, but files a suit against the firm, alleging that its products are defective. The defendant's best ground for dismissal of the suit is that the plaintiff does not have

Standing to sue

A federal form of government is one in which the national government shares sovereign power with

States

Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as

Statutory law

Environmental Hazard Corporation operates a storage facility for hazardous waste. Mega Corp. buys Environmental Hazard Corporation before it is discovered that the firm's disposal practices violated CERCLA. With respect to these violations, Superfund imposes on Mega Corp.

Strict liability

Organic fish, Inc. a wholesaler, refuses to sell product to specialty foods market, inc., a retailer. This is

Subject to rule of reason

Susan and Jessica buy a cottage in Gulfport, Mississippi. On the death of either owner, that owner's interest in the dwelling passes to her heirs. This is

Tenancy in common

A decision on a question of state law is final when

The State's highest court make the decision.

Baxter owns Cobblestone Offices, a commercial building situated on an acre of land that he owns in Tyler, Texas. Subject to certain qualifications, the exterior boundaries of Baxter's land extend to

The center of the earth and up to the sky

Sue Ann files a lawsuit against Evergreen Delivery, charging that she has not been paid and wants to recover the unpaid amount, plus interest. The complaint and summons will most likely be served on

The corporation's registered agent

Sylvester wants to file against Millicent. For a court to hear the case,

The court must have jurisdiction

Compliance with the law is not always sufficient to determine "right" behavior because

The law does not codify all ethical requirement

Adhering to utilitarian ethics in making a business decision is likely to result in an action that is considered morally correct if it produces the greatest good for

The most people

Considering the triple bottom line requires looking at how business decisions impact all of the following except

The platitudes

Urban City wants to acquire undeveloped private land within the city limits to construct a public park. The city brings a condemnation proceeding to obtain title to the land and determine its fair value to be paid to the private owner. This is

The power of eminent domain

Organic Greens, Inc. and Natural Market LLC dispute a term in their contract. Because the parties have a long-standing business relationship that they would like to continue, they could settle their dispute through mediation because

The process is not adversarial

Notice-and-comment rulemaking involves a period during which

The public is asked to comment on a proposed rule

Justine borrows $10,000 from State Bank to remodel a room in her home. This transaction is subject to

The truth in lending act

A case of first impression is any legal authority or source of law that a court may look to for guidance but need not follow when making its decision

True

A deposition may be use to impeach a party or witness who changes his or her testimony at trial

True

Account numbers on credit-card receipts must be truncated (shortened).

True

Before a lawsuit is initiated, a plaintiff should consider whether the defendant is able to pay the damages sought.

True

Independent federal regulatory agencies are outside the federal executive departments

True

It is a violation of federal law to sell a pesticide or herbicide that has a chemical strength different from the concentration declared on the label

True

Jurors must decide a case based only on the information that they learn during the trial.

True

Market power is the ability of a firm to enter a given market

True

The Federal Election Commission, like other federal agencies, to notify the public of a proposed rule publishes the proposal

True

Under a state long-arm statute, a court can exercise jurisdiction over certain nonresident defendants.

True

Under the full faith and credit clause, any judicial decision in one state with respect to contract rights will be honored and enforced in all states.

True

Nile books, a bookstore in Gotham City, sells publication that criticize government actions and policies, The city enacts an ordinance prohibiting the sale of such materials in the interest of preserving public tranquility. This ordinance is most likely

Unconstitutional restriction of speech

Old Mill Development, Inc., wants to build a parking garage to connect to Old Mill Shoppes, both of which are on private land. For this action, an environmental impact statement is

Unnecessary

A cost-benefit analysis is part of

Utilitarianism

Gas and Go, Inc. buys a section of land that is zoned exclusively residential. Intending to build a convenience store, car wash, and small mall on the property, the company seeks a variance. Many of the neighbors-single-family homeowners-want to object. Their best arguments is that the variance

Will alter the essential character of the neighborhood

Because litigating a complaint can be costly, and there is a backlog of cases in many courts, a businessperson is likely to attempt to resolve a dispute

With a method of alternative dispute resolution

Waterfront Properties, Inc. pays Land Corp. to release its claim to a strip of shoreline property. Land Corp. gives Waterfront a deed that conveys only whatever interest Waterfront has in the strip. This is

a quitclaim deed

Executive control over the Securities and Exchange, and other agencies, may be exercised through the president's power to

appoint agency officers

Madison files a suit against Eric, claiming that the defendant failed to pay for goods shipped in response to an alleged e-mail order. Eric denies the charge. If the e-mail order exists, it is

evidence

A party does not need to have legitimate grounds to appeal a trial court's decision.

false

When a joint tenant dies, his or her interest in the property passes to his or her chosen heirs.

false

Big Oil, Inc., is a corporation engaged in the business of producing, refining, and distributing energy resources. With respect to the firm's managers, legal concepts can be useful for Big Oil's

marketing manager, human resources manager, accounting and finance manager

Kentucky Chicken, Inc., operates a commercial frying plant, discharging pollutants into the air. Maxwell reports the violation to the Environmental Protection Agency. Maxwell

may be paid up to $10,000

Meredith takes out a loan from Equity Bank. When she fails to make the scheduled payments, Equity advises her of further action that it will take. This is a violation of

no federal law

Marco has an easement that allows him to drive across Angus' land to get to his house. With respect to Angus' land, Marco's right is

nonpossessory interest

Through smart business management, Harvest Bakery obtains monopoly power in its market. This is

not an antitrust violation

Once a court has applied a principle to a certain set of facts, that principle must applied in future cases involving

similar facts

a final rule issued through a notice-and-comment rulemaking procedure has binding legal effect

unless a court overturns it