Business Law Midterm

Henry announces to his neighbors that Jessica has been convicted of shoplifting. Jessica wants to sue Henry for defamation. Henry may use _____ as an absolute defense and, thus, avoid liability.

truth

The U.S. Constitution's right to have witnesses on your side and the right to confront witnesses is found in which amendment?

6th

A contract may not be enforced under which of the following situations?

Genuine assent to the offer does not occur.

According to the _______, people in peril who receive voluntary aid from others cannot hold those offering aid liable for negligence.

Good Samaritan statutes

The concept that some higher law or body of moral principles connects all of us in the human community is known as what?

ID with the vulnerable

With regard to the enforceability of a present promise, which of the following is an accurate statement regarding past consideration?

Past consideration is no consideration at all.

Under the _____, it is now a felony to willfully fail to maintain proper records of audits and work papers for at least five years.

Sarbanes-Oxley Act

In a cause of action for negligence, the plaintiff must establish the defendant owed a duty of care to the plaintiff. Next, the plaintiff must show that the defendant _______.

breached that duty of care.

A written argument arguing why a litigant wants to appeal a judicial decision is called a _______.

brief

_______ consists of the enforceable rules of conduct that govern commercial relationships

business law

Business ethics involves the application of ethics to the special problems and opportunities experienced by

businesspeople

When a defendant appears at the arraignment, she has the opportunity to enter all but which of the following as a plea?

demurrer

The use of ethics and ethical principles to solve business dilemmas is called an ethical

dilemma

In states that have adopted _______, bartenders and bar owners may held liable for a plaintiff's injury although the bartender or bar owner did not directly cause plaintiff's injury.

dram shop acts

Emily is suspected of shoplifting at a department store. The store security guard detains her while the guard reviews the security tape. After Emily is not released within ten minutes, she threatens to sue the department store. Which of the following torts may Emily wish to sue for?

false imprisonment

At a party one afternoon, Lee complained to others present that he could hear his neighbor Tammy's baby crying through most nights and suspected she left the baby home alone. Tammy, who was not at the party, heard about it from one of her neighbors. Because Lee's statement made Tammy sound like a negligent parent, she wanted to sue Lee. Which of the following privacy torts has Lee likely committed?

false light

________, a privacy tort, is closely related to defamation and occurs when publicity about a person creates an impression about an individual that is not valid. It could involve attributing characteristics or beliefs to a person that he or she does not possess, or creating the impression that an individual has taken certain actions he or she has not taken.

false light

The United States has two parallel court structures: a(n) _______ system and a(n) _______ system.

federal; state

Crimes that are punishable by imprisonment for more than one year or death are called _____

felonies

Occasionally businesses will insert a _______ clause in their contracts. These clauses specify which court would hear a case should a dispute arise over an alleged breach of the contract.

forum-selection

The value of _______ includes the following alternative meanings: the ability to act without restriction from rules imposed by others; the right to possess the capacity or resources to act as one wishes; and the choice to escape the cares and demands of this world entirely

freedom

In a criminal trial, the _____ files a case against the defendant.

government

To prove that a contract is implied, or implied-in-fact, it is necessary for a plaintiff to establish that a defendant _______

had an opportunity to reject the property or service received but did not.Correct

Appellate courts

have the power to review previous judicial decisions passed by trial courts.

trial courts

hear and decide cases when they first enter the legal system.

Brian offers to sell Rachel his computer for $200. Rachel says that she will look at the computer in the morning, and if she likes it she will buy it for $200. At this point, Rachel has not committed to doing anything. This is an example of a(n)

illusory promise.

A(n) _______ contract arises not from words, but from the conduct of the parties.

implied

If you have a dental emergency and the dentist pulls your severely infected tooth without prior negotiation of payment or even any mention of payment, a(n) _______ for payment of services rendered exists.

implied

_______ jurisdiction is a court's power to render a decision affecting the rights of specific persons before the court.

in personam

_______ contracts are called _______ because no formalities are required in making them.

informal; simple

Which of the following considerations is not included in the "WH Framework" for business ethics?

not included is "Managerial decisions are made in an attempt to circumvent the law"

Ethical relativism is a theory of ethics that denies the existence of _______ moral standards.

objective

When deciding whether an offeror intended to be bound by the offer, the courts use the _______ standard.

objective

The _______ states that we base the existence of a contract on the parties' outward manifestations of intent and we base its interpretation on how a reasonable person would interpret it.

objective theory of contracts

An agreement is based upon

offer and an acceptance

Formation of a contract begins when the party initiating the contract, called the _______, makes an offer to another party, called the _______.

offeror; offeree

Which of the following laws would govern a dispute between a tenant and a landlord over payment of rent?

private law

A __________ occurs when a person uses her property in an unreasonable manner that harms a neighbor's use or enjoyment of his property.

private nuisance

In order to obtain an arrest warrant from the magistrate, the law enforcement officer must show _____ that the suspect either committed or is planning to commit a crime.

probable cause

Kevin is offered a job by a reputable company in a different city. To take the new job, Kevin quits his previous job and moves to the new city along with his family. When he shows up at work, he is told that there is no job. Kevin can sue the employer under the theory of

promissory estoppel.

The _______ is also called the "television test," for it requires us to imagine that our actions are being broadcast on national television.

public disclosure test

A pharmaceutical company has been regularly dumping its hazardous waste in a nearby lake. This has led to serious health issues among people living in the neighborhood. Which of the following laws will regulate this incident?

public law

If a plaintiff wishes to recover damages that are meant to punish the defendant and deter future wrongdoers from similar behavior, that plaintiff is seeking _____ damages?

punitive

In situations where a defendant is proved to have committed gross negligence, _______ damages may be awarded to the plaintiff which are not typically awarded in negligence cases.

punitive

In states that recognize _______ comparative negligence, a plaintiff may recover any percentage of damages for which she was not responsible.

pure

Civil law involves

responsibilities between people and people and their government.

If an offer provides certain ways of acceptance but does not require a specific way of acceptance, use of a different means of acceptance

results in a contract only after the acceptance is received by the offeror.

Most states define _____ as the forceful and unlawful taking of personal property.

robbery

Which of the following is a purpose of law?

1. provide order 2. encourage social justice 3. guarantee personal freedoms

Which of the following is not an appropriate category or classification of law?

"Quasi-criminal" law

Which of the following is not a proper method of service of process?

*all of these are proper methods of service of process* (personal service, service by certified mail, residential service)

A quasi-contract is one in which the following happens?

A court may impose contractual obligations on one of the parties as if that party had entered into a contract.

What is a directed verdict?

A verdict for the defendant as the jury would have no legal basis for decision in favor of the plaintiff even if it regarded the plaintiff's claims to be true.

A contract is not formed until acceptance is received by the offeror in which of the following situations?

An unauthorized mode of acceptance is used when the offer merely authorizes certain modes of acceptance but does not require a specific mode of acceptance.

"Cause in fact" is sometimes referred to as _______ while "legal cause" is sometimes referred to as _______.

Actual cause; proximate cause

The two basic elements of a crime include which of the following?

Actus reus and mens rea.

Which of the following statements is true of an assault?

An assault occurs if apprehension exists, regardless of fear.

Compensatory damages are intended to compensate the plaintiff for her damages and typically include all but which of the following?

Attorney fees

The Counterfeit Access Device and Computer Fraud and Abuse Act of 1984 prohibits which of the following categories of computer crimes?

Both unauthorized use of a computer to collect financial or credit information protected under federal privacy law and modification of data that impedes medical treatment to individuals are correct.

_______ is the offering, giving, soliciting, or receiving of money or any object of value for the purpose of influencing the judgment or conduct of a person in a position of trust. By contrast, _____ is the making of threats for the purpose of obtaining money or property.

Bribery; extortion

When courts attempt to determine whether a reasonable person would have owed a duty to others, they consider all but which of the following questions?

Does the defendant in the subject litigation have a prior criminal record, and if so, what is the nature of the prior criminal record (both in terms of the number and types of prior criminal offenses)?

_____ is when the means by which acceptance can occur is expressly stated in the offer.

Express authorization

Felipe, Adam, and Shirley are neighbors. Felipe overhears Adam's offer to sell an antique clock to Shirley for $3,000. Under these circumstances,

Felipe makes a new offer to Adam when he offers to buy the clock for $3,000.

Ronald agrees that he owes a bank $10,000, as claimed by the bank. Ronald explains to the bank that he can only pay the bank $8,000 as full payment toward the money he owes. The bank agrees to accept $8,000 from him. The following month, Ronald receives his new bank statement claiming that he still owes the bank $2,000. Which of the following statements is true of this scenario?

If Ronald does not agree to pay the remaining $2,000, the creditor may sue Ronald for the balance it believes is owed.

Which of the following defines the danger invites rescue doctrine?

If a bystander gets injured while trying to save a victim from danger caused by the offender, then the offender isheld responsible for the bystander's injuries as well.

Which of the following is true of an accord and satisfaction?

If a creditor inadvertently cashes a debtor's "paid in full" check, he can repay the debtor the same amount within 90 days to invalidate an accord and satisfaction.

If a contract has an ambiguous provision, the judge should interpret that provision in which of the following ways?

If the contract contains an ambiguity, the judge should interpret it against the interests of the drafter.

A noted women's rights organization sued an apparel retail chain for installing hidden cameras in its fitting rooms. Which of the following privacy torts does this scenario best illustrate?

Intrusion on an individual's affairs or seclusion.

Why have most states enacted a long-arm statute?

It enables courts to serve defendants outside the state as long as the defendant has sufficient minimum contacts within the state.

On which of the following tenets does the concept of legal realism primarily rest?

Law can never be enforced with complete consistency because the environment is ever changing.

Amy offers to paint Louis's house for $1,000. The offer stated that acceptance in person was required. Within a reasonable time, Louis e-mailed Amy his acceptance. Which of the following statements is true about this situation?

Louis has not accepted the offer as required by the offeror, and there is no contract.

Mary was driving her new moped down a neighborhood road. While she was trying to adjust her headphones to listen to her favorite song, her moped hit an 8-year-old boy who was crossing the road. Mary dismounted her moped and rushed over to the victim. The young child was unconscious and bleeding. In this scenario, Mary owes what duty, if any, to the victim?

Mary has a duty to remove the victim from further harm.

Maya pays $5,000 and purchases a car from her friend, Jane. Later, Maya realizes that the car is worth less than $3,000. Which of the following statements will be true if Maya plans to sue her friend?

Maya cannot sue Jane because the court seldom considers adequacy of consideration.

_____ damages are a small amount of money given to recognize that a defendant did in deed commit a tort where the plaintiff suffered no compensable damages.

Nominal

Partial payment of a liquidated debt may be valid consideration if which of the following occurs?

Once the creditor accepts the proposed different performance, the debt is satisfied and the creditor may not collect anything else.

Macon is planning to buy Kevin's car for $15,000. He gives Kevin $1,500 to keep the offer open for 30 days. Kevin will deduct the $1,500 from the price of the car if Macon purchases the car within the 30 days. If Macon does not buy the car during that time, Kevin will keep the $1,500 and may then offer the car to someone else. Which of the following contracts does this scenario best illustrate?

Option contract

Which of the following statements most accurately reflects the preexisting duty rule?

Performance of a duty you are obligated to do under the law is not good consideration.

______ occurs when one party makes a promise knowing the other party will rely on it, the other party does rely on it, and the only way to avoid injustice is to enforce the promise.

Promissory estoppel

Which of the following is a protection offered by the Eighth Amendment to the U.S. Constitution?

Protection against excessive bail and excessive fines.

What is meant by peremptory challenges?

Rights given to a party to challenge to a certain number of potential jurors without giving a reason

The Corporate and Criminal Fraud Accountability Act is also known as the _______ Act

Sarbanes-Oxley

Freddie offers to sell Lucy five video poker machines. Before Lucy can accept or reject Freddie's offer, the state legislature passes a statute that the purchase, sale, and possession of video poker machines is illegal. In this scenario, Freddie's offer terminates due to which of the following rules?

Subsequent illegality of the subject matter

The United States has 12 geographic-based intermediate appellate circuit courts and then a Federal Circuit Court of Appeals. The Federal Circuit Court of Appeals hears appeals from which of the following?

The Federal Circuit Court of Appeals hears appeals from government agencies.

Business leaders must be sensitive to the differences in legal guidelines in different countries for all but which of the following reasons?

The United States has different laws for different countries regarding business dealings.

Which of the following is a necessary condition for a justiciable controversy?

The court should be able to render a decision that will solve the existing problem.

How is an offeror's intent to be bound by an agreement demonstrated?

The courts determine an offeror's intent based upon how a reasonable person would interpret the offeror's words and actions.

An offer must include all but which of the following elements?

The offer must always be in writing

Under common law, if the offeree's acceptance with terms that are not identical to the offeror's terms, then which of the following is true?

The offeree's attempted acceptance is considered a counteroffer rather than an acceptance

Which of the following is true of whistle-blowers?

They are protected from their employers under the False Claims Act.

why was the Class Action Fairness Act (CAFA) of 2005 created?

To limit the conditions under which a class action suit can be brought in tort cases.

The value of efficiency includes which of the following meanings?

To maximize the amount of wealth in society

If past consideration is given in expectation of future payment, which statement is correct?

Under the Restatement (Second) of Contracts (a persuasive, though not binding, authority), promises based on past consideration may be enforceable "to the extent necessary to avoid injustice".

The _______ laws include sales laws and other regulations affecting commerce, such as bank deposits and collections, title documents, and warranties.

Uniform Commercial Code (UCC)

Which of the following statements accurately describes the difference between bilateral and unilateral contracts?

Unilateral contracts call for actions, not promises, whereas bilateral contracts involve promises in exchange for promises.

At which stage of a case proceeding does a court acquire in personam jurisdiction over a defendant?

When it gives the defendant a copy of the complaint and a summon.

When does a default judgment occur?

When the defendant fails to answer to the copy of the complaint sent by the court

Which of the following conditions would terminate an offer, even if the offeree does not know of the terminating event?

When the offeror loses the legal capacity to enter into a contract.

After a suspect has been arrested and booked and the prosecutor has filed a complaint, the suspect then makes _____ before a magistrate.

a 1st appearance

The value of "security" includes all of the following alternative meanings except

a citizen's willingness to compromise basic constitutional freedoms in return for government-provided security.

_______ requires individuals to follow a rigid set of rules regardless of the situation.

absolutism

If the Federal Trade Commission (FTC), a government agency, requires businesses to adhere to certain standards in advertising, the law that would cover this rule would be:

administrative law

All but which of the following is an exception to the preexisting duty rule?

all but "Consideration given in expectation of future payment" (additional work, unforeseen circumstances, UCC article 2 (sale of goods))

The value of justice includes all but which of the following alternative meanings?

all but "Escaping the cares and demands of this world entirely."

All but which of the following can demonstrate a party's lack of contractual capacity?

all but "One of the parties is refuses to accept the offer." (ch13)

All but which of the following is true regarding silence as a means of acceptance of an offer?

all but "Silence can be acceptance if the offeror demonstrates the benefits of the offered services with reasonable expectation to be compensated." (ch14)

All but which of the following is a requirement for a plaintiff to establish that a defendant is strictly liable?

all but "The act involved cannot occur without a superseding cause." (ch9)

All but which of the following is needed to establish the case or controversy requirement before a court will hear a case?

all but "The court must be able to render an opinion that the current and future parties can use as an advisory opinion."

All but which of the following demonstrate an acceptance by the offeree?

all but "The offeree makes a new offer to the offeror to continue negotiations which ultimately lead to a contract." (ch14)

All but which of the following is an objective of tort law?

all but "To compensate society against wrongs committed by the state" (ch8)

All but which of the following is an example of a major executive federal agency?

all but The Consumer Product Safety Commission

All but which of the following people are affected by a firm's business decisions?

all but mediators (consumers, community, future generations)

The elements of a contract include all but which of the following?

all but writing (includes an agreement, a bargained for exchanged, and a legal subject matter)

All of the following are requirements necessary for an "accord and satisfaction" to be enforceable, except

all except "the debt is liquidated" (ch15)

All of the following include relevant areas of business law with respect to corporate management except

all except property law (white collar crimes, antitrust law, employment law)

While civil law involves the right between people and people and the governments, criminal law

are considered acts against society as a whole

The defendant must prove that the plaintiff voluntarily and unreasonably encountered the threat of the actual harm the defendant caused under the _______ defense.

assumption of the risk

Consideration can be anything, as long as it is the product of a(n) _______.

bargained-for exchange.

If an assault is followed by an intentional, unwanted, offensive bodily contact, a _____ has occurred.

battery

A promise made in exchange for a promise is a _______ contract.

bilateral

Legal interpretations by Judges are called common law, which is also known as

case law

A(n) _______ clause may be inserted in a business's contract in order avoid time and expenses in determining what law shall be applied to the case.

choice-of-law

The minimum standard to be an ethical business includes

choosing a lawful way to compete against rival firms.Correct

For a contract to be considered express, its terms must be _______.

clearly set forth in either written or spoken words

Smith, the CEO of a steel company, wanted to win the tender to supply steel rods for a reputed real estate company. Hence, he paid money to an executive of the real estate company to disclose the dollar amounts of other competing bids so that his company could offer a better bid. What is this crime referred to as?

commercial bribery

An alternative name for "case law" is

common law

Courts issue judicial decisions that often include interpretations of statutes and administrative regulations. This type of law is best described as which of the following?

common law

Sources of contract law include

common law and uniform commercial code

Money damages awarded in civil courts to repay a plaintiff for damages caused by the defendant are __________ damages.

compensatory

A party will receive _______ in return for performing a contract obligation.

consideration

Suppose that Hannah agrees to purchase Rachel's computer for $500. Hannah's payment of $500 is the _______ that Rachel will receive for her car.

consideration

______ as an element of a contract refers to what each party gets in exchange for his or her promise under the contract.

consideration

A(n) _______ is defined as a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.

contract

Which of the following falls under Article 2 of the Uniform Commercial Code (UCC)?

contract for the sale of a good

Betty's Bakery has a three-year agreement with Frank's Farm to purchase ten dozen eggs every week. After two years, Betty's Bakery wants to change the suppliers that will lead to a breach of their agreement. Which area of business law will best govern the legal aspects of this decision?

contract law

An exception to the common law rule requiring that a valid contract must have consideration is

contract under seal

_______ is a defense that, if proved, will prevent the plaintiff from recovering any damages regardless of how slight the plaintiff's negligence may be.

contributory negligence

______ occurs when a person permanently removes personal property from the owner's possession and control.

conversion

Which of the following does not determine what market participants may or may not legally do?

corporations

An offer made by an offeree to the offeror regarding the same matter as the original offer is called a(n)

counteroffer

Jason agrees to buy Sara's car for $10,000. However, Sara tells Jason that she will only sell the car to him if he pays $12,000. In this scenario, Sara makes a(n)

counteroffer

Allison owned a floral shop in Greenville, South Carolina, but has moved to Chicago, Illinois, for personal reasons. She wants to establish another floral shop in the new city. She can find information regarding local taxes if she refers to the:

county ordinances

Its managing director misappropriated the expenses and the incomes of a publicly held company. When the incident came to light, the share value of the company fell drastically. Which of the following laws will regulate this incident?

criminal law

Libel occurs when a(n)

defamatory statement about a person is published in a permanent form.Correct

For a legal case, the location in which the trial may be held is appropriate in the county where the _______ resides.

defendant

To establish proximate cause in a negligence claim, it is necessary to prove that the

defendant could reasonably foresee that his or her actions would cause the harm that the plaintiff suffered.

Which of the following conditions must be present for an offer to have a legal effect?

definite and certain terms

____ occurs when someone in a position of trust or responsibility over the assets of another person uses those assets for his or her personal use and not on behalf of the person who entrusted the assets to person in a position of trust or responsibility.

embezzlement

The __________ defense applies if the idea for a crime originated with a police officer or some other government official who suggested it to the defendant, who would not otherwise have committed the crime.

entrapment

A problem about what a firm should do for which no clear, right decision is available is called a(n) _______.

ethical dilemma

Acme Foods Inc. manufactures food products and is opening a subsidiary in United Cadvia. The firm discovers that to obtain raw materials it has to make some facilitating payments to the local officials and businesses in the host country. The second option is to import raw materials from its own country, which will be expensive in the long run. The managers at Acme are unable to decide which of the two options would be a better choice. Which of the following terms would best describe the situation Acme Foods Inc. is experiencing?

ethical dilemma

Someone who adheres to the _______ argues that traditional moral hierarchies ignore relationships between people.

ethics of care

To establish res ipsa loquitur in negligence cases, the plaintiff must demonstrate that the

event was a kind that ordinarily does not occur in the absence of negligence.

The __________ rule holds that all evidence obtained in violation of the constitutional rights spelled out in the Fourth, Fifth, and Sixth Amendments to the U.S. Constitution is normally not admissible at trial. Such evidence is considered "fruit of the poisonous tree" because it is the result of an illegal procedure.

exclusionary

In typical negligence cases, courts rarely award punitive damages, or _______ damages, which are imposed to punish the offender and deter others from committing similar offenses.

exemplary

______ assumption of the risk occurs when the plaintiff expressly agrees (usually in a written contract) to assume the risk posed by the defendant's behavior.

express

James sold the shares of a company, for which his bother-in-law was the CEO, just a few months before the company filed for bankruptcy. James used information that was not public knowledge to save him from the loss. However, the general public that had invested in the company suffered huge losses due to the drastic fall in the market value of the company. What type of a fraudulent crime does this scenario best illustrate?

insider trading

Which of the following is not an essential element of negligence?

intent to cause harm

What tort occurs when a defendant takes an action intending certain consequences to occur or knowing that those consequences are likely to result?

intentional

A defendant who engages in purposeful, outrageous conduct, which is likely to cause extreme emotional distress to the plaintiff, commits

intentional infliction of emotional distress.

The term "computer crime" refers to any wrongful act that

is directed against computers, uses computers to commit a crime, and involves computers.

Common law, one of the two most important sources of contract law, is derived from _______.

judicial decisions

The human resource policy of a company states that the company aims to treat all humans identically, regardless of race, class, gender, age, and sexual preference. Which of the following values influencing business ethics does this best illustrate?

justice

Marsha worked as a personal secretary to the manager of a firm. She was caught taking away stationery from the office for personal use. It was revealed during trial that she had been doing this ever since she joined work. This is a case of _____.

larceny

The _______ doctrine allows the plaintiff to recover damages, despite proof of contributory negligence, as long as the defendant has a final clear opportunity to avoid the action that injured the plaintiff.

last-clear-chance

The concept of _______ ensures that morality does not interfere with our inclination to obey the law.

legal positivism

The concept of _______ sees our proper role as obedience to duly authorized law.

legal positivism

When parties agree that a debt is owed and the amount of that debt, then that debt is considered to be _______.

liquidated

When there is no dispute over the amount of debt or existence of debt, it is referred to as a _______.

liquidated debt

According to the _______ rule, an acceptance is valid when the offeree places it in the mailbox, whereas a revocation is effective only when the offeree receives it.

mailbox

"Stakeholders" include

management, customers, and employees.

______ terms in an offer and its resulting contract allow a court to determine damages in the event that one of the parties breaches the contract. They include the subject matter, price, quantity, quality, and parties.

material

The terms of an acceptance that reflect the terms of an offer are known as the _______ rule.

mirror-image

Jeff sues Kathy for $10,000 for injury to his property. Kathy is able to establish that Jeff was 45% for the damage to his property. In this example, should Jeff receive $5,500 in damages, which of the following theories of recovery was applied?

modified comparative negligence

_______ law describes certain ethical laws and principles believed to be morally right and "above" the laws devised by humans.

natural

The doctrine of _______ applies to cases in which the defendant has violated a statute enacted to prevent a certain type of harm from befalling a specific group to which the plaintiff belongs.

negligence per se

If someone violates a statute that is in place to protect a specific group of people and prevent a certain harm from affecting that group of people, the violation of that statute is known as _______

negligence per se.

If the defendant acts in a way that subjects others to an unreasonable risk of harm, that defendant has committed a(n) _____ tort.

negligent

The United States Supreme Court is comprised of _______ justices, and these justices serve for _______

nine justices and they serve for life

A valid offer includes

offers communicated by the offeror to the offeree's agent.

For an unliquidated debt,

once the debtor pays the amount agreed on by both the parties, the debt is fully discharged

A key feature of a voidable contract is that

one or both parties have the ability to either withdraw from or enforce the contract.

Courts of jurisdiction have the power to hear and decide cases when they first enter the legal system.

original

The _______ rule states that if a writing, or a term in question, appears to be _______ on its face, we must determine its meaning from just "the four corners" of the document, without resorting to outside evidence, and give the words their ordinary

plain meaning; unambiguous

The doctrines of res ipsa loquitur and negligence per se have been adopted by courts to primarily aid the _______ in negligence suits.

plaintiff

The standing requirement of a lawsuit is said to be met when

plaintiff has a personal stake in the outcome of the case.

Values are _______ that capture one's sense of what is good or desirable.

positive abstractions

Stare decisis is the principle that courts use when they rely on previous case decisions also known as _______

precedent

When employees in a firm asked for a pay hike, the management assessed the expenses involved in it. It realized that the shareholders and customers would have to face more negative consequences when compared to the benefits enjoyed by the employees. Thus, the management decided to introduce employee stock options in order to keep both the employees and the shareholders satisfied. Which of the following theories of business ethics does this best illustrate?

rule utilitarianism

Regarding a liquidated debt, the debtor's payment of the reduced amount of the claimed debt is referred to as the _______

satisfaction

Which of the following is not a type of formal contract?

simple contracts

Like ethical relativism, _______ requires that we evaluate the morality of an action by imagining ourselves in the position of the person facing the ethical dilemma.

situational ethics

During the swine-flu outbreak, the oral comments of a journalist on the products of Bacon Cult, a fast food chain, caused many people to doubt and boycott its products. The boycott caused a significant reduction in sales and the firm sued the journalist. What tort has been committed in the above scenario?

slander of quality

_________ consists of oral statements so inherently harmful that general damages are presumed.

slander per se

The _______ of business consists of expectations that the community imposes on firms doing business inside its borders.

social responsibility

The tort of unfair competition exists when

someone enters an industry with the sole intent of driving another firm out of business.

The three threshold requirements a case must meet before it makes it to a court are _______.

standing, case or controversy, ripeness

When courts rely on precedent, they are obeying the principle of _______.

stare decisis

Assume two parties are engaged in a lawsuit in the state of South Carolina, and the plaintiff chooses to appeal the verdict of the South Carolina trial court. Presuming South Carolina does not have an intermediate court of appeal, where would the case be heard?

state court of last resort

Legislative bodies, such as Congress or state legislatures, create what kind of laws?

statutory laws

Legal responsibility without fault is called _______ liability.

strict

_________ liability applies to actions that, regardless of the care taken, are specifically prohibited, such as selling cigarettes or alcohol to a minor.

strict

Ian, a door-to-door salesman, filed a negligence case against Mark. While ringing the doorbell on Mark's front porch, he was bitten by a venomous snake that Mark kept as a pet. Ian had no previous warning of the snake being loose. In this scenario, Ian is most likely to have filed for damages under

strict liability

When the defendant takes an action that is inherently dangerous and cannot be undertaken safely, the defendant commits a(n)

strict-liability tort.

A _______ is best described as an unforeseeable event that interrupts the causal chain between the defendant's breach of duty and the damages the plaintiff suffered.

superseding cause

Damages in tort actions include all but which of the following?

supplemental

A Ponzi scheme is best described as which of the following?

swindling investments in which high profits are promised from fictitious sources and early investors are paid off with funds raised from later investors.

After defendants have been arrested and read their Miranda rights, the immediate next step in criminal proceedings would be

taking them to the police station for booking.

The original offer is considered _______ if the offeree makes a counteroffer.

terminated

Under deontology, _______ states that an action is moral only if it would be consistent for everyone in society to act in the same way.

the categorical imperative

If a defendant is not informed of his or her Miranda rights,

the information provided by the defendant at the time of arrest will not be admissible at trial.

To have a diversity-of-citizenship case,

the plaintiff and defendant must live in different states.

If a party to a contract asks for an additional amount of money and agrees to do more work than the contract requires, the result is that the promise

to do the extra work is valid consideration.

Which of the following is an intended and essential purpose of law?

to encourage social justice

All but which of the following include functional areas of business law?

tort law

Mary is fired from her job at SUBS Restaurant and Deli. She posts on the internet that her employer serves expired meat and moldy bread. Neither assertion, however, is true. SUBS Restaurant and Deli may be able to pursue an action against Mary for _____

trade libel

A(n) _______ is best described as a binding agreement between two states or international organizations.

treaty

A(n) _______ contract represents a situation where the offeror seeks performance from the offeree to form the contract.

unilateral

In a ________ contract, if one party's consideration is a promise, and the other party's consideration will be an act.

unilateral

If a business asks "would the world be a better place if everyone followed my example," that company is following the _______.

universalization test

If the parties dispute either the existence of a debt or the amount of a debt, that debt is called a(n) _______ debt.

unliquidated

In a(n) _______ debt, the parties either disagree about whether money is owed or dispute the amount.

unliquidated

When a debt is _______, the parties may enter into a(n) _______.

unliquidated; accord and satisfaction

_______ is the legal term for the geographic location in which a case may be tried. It is determined by each state's statutes.

venue

Employers may be held liable for the wrongful acts of their employees if the employer directed or authorized those wrongful acts. This type of employer liability is known as _____.

vicarious liability

A _______ contract is, in effect, not a contract at all because its object is illegal, or it has a defect so serious that the agreement is not a contract at all.

void

Once the potential jurors have reported for jury duty, _______, or the jury selection process begins.

voir dire

Knowing whether a contract is bilateral or unilateral is important because it determines _______.

when the offeree is legally obligated to perform

If nothing is stated to the contrary in the terms of an auction, the auction is presumed to be _______, which means that the seller is merely expressing intent to receive offers

with reserve

n an auction _______, the seller is treated as making an offer to accept the highest bid and therefore must accept it

without reserve