BUSN Law Ch 1-12
Which CSR school of thought relies on the invisible hand of economic efficiency as a sufficient guide for social responsibility?
Narrow
The Uniform Commercial Code (UCC) requires several specific terms of a contract to be in the writing, while common law contracts have a much more liberal rule concerning what must be in the writing.
False
The checks and balances in the U.S. Constitution ensure that the executive branch of the government is always dominant over the other two branches.
False
Attention to business ethics is important because ____
ethics is a useful tool for preventing legal liability
Generally, with respect to a merchant's firm offer, the Uniform Commercial Code (UCC) provides that the offer can be irrevocable for a maximum period of _____.
3 months
CH 9-12
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The Bill of Rights consists of the Constitution's first
10 amendments.
Which of the following sales agreements is most likely to be subject to Article 2 of the Uniform Commercial Code (UCC) because it represents a merchant transaction?
A sales agreement made by Mike, a wholesaler, who sells to Sunil, the owner of a retail store.
Which of the following is true of alternative dispute resolution?
Accidental disclosure of confidential business information is unlikely to occur in ADR because ADR methods are usually conducted in private.
Ace Corp., a company based in New York, uses the delivery services of Red Source Inc. to ship machinery to a customer located in Boston. If the contract is a normal shipment contract,
Ace Corp. will bear the risk of loss until the goods are delivered to Red Source.
Which of the following is the appropriate "reality response" to the following business ethics challenge: "Business ethics cannot be taught. It's religion, not management?"
Altering people's values isn't the objective of ethics. Managing values and conflict is the goal.
Abel sends Baker a letter: "I offer to perform consulting services for six months at $100/month." Baker signs "I agree." This contract fits into which category?
Bilateral
Abel sends Baker a text message: "I will provide landscaping for your office park for $500 per trip." Baker calls Abel and says, "I agree to your landscaping offer." The Abel-Baker contract fits into which category?
Bilateral
Abel sends Baker an e-mail: "I will provide computer networking services for $100 per hour." Baker calls Abel and replies, "I agree to your networking services offer." This contract fits into which category?
Bilateral
Holden calls Caulfield, a private detective, and tells him: "I need a private detective to find Tippy, my prize-winning pup." Caulfield informs him of his $100 day fee and Holden agrees to pay him once per week. What is the category of contract between Holden and Caulfield?
Bilateral
Which of the following is a similarity between the Uniform Commercial Code (UCC) and the U.N. Convention on Contracts for the International Sale of Goods (CISG)?
Both do not require an offer to have complete terms in order to be valid.
Abel sends Baker a letter: "I offer to perform consulting services for six months at $100/month." Baker signs "I agree." What source of law governs this agreement?
Common
Abel sends Baker a text message: "I will provide landscaping for your office building for $500 per trip." Baker calls Abel and says, "I agree to your landscaping offer." What source of law governs this contract?
Common
Abel sends Baker an e-mail: "I will provide computer networking services for $100 per hour." Baker calls Abel and says, "I agree to your networking services offer." What source of law governs this contract?
Common
The owner of an office building hires an architect to produce renovation plans for a $5,000 fee. The owner retains the plans once the fee is paid. What source of law governs this contract?
Common, because it is a contract for services.
The owner of a warehouse contracts with Satellite Services for the purchase and installation of special satellite dishes at the warehouse. The contract allocated $8,000 for the installation services and $2,000 for the satellite dishes. Which source of law governs this contract?
Common, because of the allocation of price.
Selecting the course of action that results in the most benefits for the most individuals is an example of what approach to moral philosophy?
Consequences-based
The federal government has the inherent power to protect the general welfare of the citizenry.
False
The legal environment of business is certain; laws are always obeyed, and laws are always enforced.
False
In the Lucy v. Zehmer case, the court held:
Even if the seller had no subjective intent to sell his property, a reasonable person would have concluded that the parties had a serious intent to contract.
Holmes Hats agrees to sell 100 top hats to a formal wear store and deliver them no later than April. This agreement falls into which of the following categories of contracts?
Express
A party suing another for breach of contract is not required to demonstrate tender of performance in order to meet the "clean hands" maxim
False
According to the doctrine of accord and satisfaction, rendering a substitute performance does not guarantee a discharge of obligation until the original performance contracted for is accomplished.
False
Congress may not tax activities or property that it might not be authorized to regulate directly under any of the enumerated regulatory powers.
False
Independent business owners who approach attorneys for resolving their business-related disputes are referred to as counsel.
False
Mary sues Moe and wins the case, receiving a court judgment entitling her to the amount of $42,000 from Moe. In this case, Moe is most likely to become the judgment creditor
False
The Federal Arbitration Act is a statute in which Congress has endorsed the use of mediation as the preferred dispute resolution method in matters governed by federal law.
False
The Uniform Commercial Code (UCC) applies to real estate sales contracts.
False
The Uniform Commercial Code (UCC) considers electronic records and signatures in a sales transaction as invalid.
False
The state trial court in Nevada issued a decision in which a party was found guilty of fraud. Should a case arise in the future with the same basic fact situation, Nevada courts will be bound by precedent to follow the reasoning and decision of this prior decision.
False
The statute of frauds does not apply to contracts made in consideration of marriage.
False
The time spent in alternative dispute resolution (ADR) is much more than that spent in discovery, a civil jury trial, and possible appeal.
False
When a remedy at law (i.e., money damages) is fully sufficient to bring justice, equitable remedies are permitted.
False
When a sales contract is missing terms on when a payment is due, and if the involved parties have not had an established course of past conduct, the Uniform Commercial Code (UCC) requires that the payment be made at least seven working days before the seller makes delivery.
False
Wilma hires Fred, a contractor, to paint her house. When Fred finishes, Wilma refuses to pay him and states that the quality of the job done is not satisfactory. If Fred sues Wilma for breach of contract in a trial court, Fred would be the defendant.
False
Fundamentally, state trial courts rule on certain points of state law and render a decision. That decision is binding on the parties, and on everyone else.
False - Fundamentally, state courts rule on certain points of state law and render a decision. That decision is binding on the parties, but on no one else.
When a party to an agreement owes a duty to perform and fails to fulfill her obligation, she is said to have discharged her obligation to the other party.
False - breach
Federal trial courts within a certain state may not rule on state law issues even in cases where the federal court has jurisdiction.
False-Fundamentally, state trial courts rule on certain points of state law and render a decision. Federal trial courts within a certain state may rule on state law issues in some cases where the federal court has jurisdiction.
State courts cannot have concurrent jurisdiction with federal courts.
False-More than one court may have jurisdiction over the same case. This is called concurrent jurisdiction. State courts may have concurrent jurisdiction with other state courts or federal courts.
Which of the following sources of law has a higher priority than the others in the hierarchy of primary sources of federal and state law?
Federal administrative law
Shelley sends Keats an offer via U.S. mail: "I offer to manage your website at a rate of $100 per hour. You must accept by Friday." Keats signs: "I accept, but I'll only pay you $90" and puts it in the mailbox on Friday. Shelley receives the letter Saturday. Which of the following is true? I. A contract exists on the day Shelley sent the offer to Keats. II. A contract exists as of Friday. III. No contract exists because of the statute of frauds. IV. No contract exists because of the mirror image rule.
IV only.
Which of the following actions by the parties are events of termination of an offer? I. Revocation. II. Rejection. III. Death of the offeror. IV. Lapse of reasonable time.
I and II.
Which of the following are appropriate to address in a code of ethics? I. Respect. II. Trustworthiness. III. Dress code. IV. Ban on use of company property for personal reasons
I and II.
All of the following are reasons why attention to business ethics is important, except business ethics ___________________. I. teach people right and wrong. II. sensitize business owners and managers in terms of how they should act. III. is a useful tool for preventing legal liability. IV. help managers retain a strong moral compass in times of turmoil.
I only.
Homer hires Frida to paint his portrait. Frida paints the portrait and delivers a painting to Homer in exchange for $5,000. Which of the following source(s) of law govern(s) the contract? I. Common. II. Statutory. III. Constitutional. IV. Secondary.
I only.
On Monday, Shelley sends Keats an offer via e-mail: "I offer to manage your website at a rate of $100 per hour. You must accept by Friday." Keats receives the e-mail on Monday, but waits until Saturday to reply: "I accept. Shelley receives the e-mail response on Saturday. Which of the following is true? I. No contract exists because the lapse of time. II. A contract exists as of Saturday. III. No contract exists because of the statute of frauds. IV. No contract exists because of the mirror image rule.
I only.
Which schools of thought emphasize maximizing shareholder wealth as a corporation's only moral responsibility? I. Narrow view: Invisible hand. II. Statutory view: State's hand. III. Moderate view: Government's hand. IV. Broad view: Management's hand
I only.
A company is considering whether to expand its facilities. If the company has integrated corporate social responsibility principles, which of the following stakeholders will it consider when making its decision? I. Owners of residential property in the neighborhood. II. Its employees. III. Its suppliers. IV. Its shareholders.
I, II, III, and IV.
Finn the manager at Yachts Are Us (YAU), a ship-building company along the Mississippi River, is told to cut overhead costs. If Finn's company incorporates CSR principles, what stakeholder(s) would Finn take into consideration when determining his strategy? I. Owners of local restaurants where YAU employees eat lunch. II. YAU employees. III. YAU suppliers. IV. YAU shareholders.
I, II, III, and IV.
Yankee Antiques Unlimited (YAU) is a company considering the fate of a local plant. The principals can either invest more to upgrade the plant's technology or shut down the plant entirely. If YAU has adopted a broad view of corporate social responsibility, what stakeholders would they consider when making the decision? I. Owners of local restaurants where YAU employees eat lunch. II. YAU employees. III. YAU suppliers. IV. YAU shareholders.
I, II, III, and IV.
Which of the following are appropriate to address in a code of ethics? I. Responsibility and accountability. II. Citizenship and civic virtue. III. Caring. IV. Ban on use of company property for personal reasons.
I, II, and III.
Which of the following are reasons why attention to business ethics is important? I. Helps managers retain a strong moral compass in times of turmoil. II. Sensitizes business owners and managers in terms of how they should act. III. Useful tool for preventing legal liability. IV. Teaches people right and wrong.
I, II, and III.
Which of the following are events of termination of an offer via operation of law? I. Death of the offeror. II. Rejection. III. Destruction of the subject matter of the contract before acceptance. IV. Lapse of reasonable time.
I, III, and IV.
Which of the following schools of thought define CSR in practice? I. Narrow view: Invisible hand. II. Statutory view: State's hand. III. Moderate view: Government's hand. IV. Broad view: Management's hand.
I, III, and IV.
Which of the following are not schools of thought that define CSR in practice? I. Narrow view: Invisible hand. II. Statutory view: State's hand. III. Moderate view: Government's hand. IV. Broad view: Management's hand. V. Individualist's view: Individual's hand.
II and V.
Adams hires WindCo. to erect a windmill to power his manufacturing plant for $100,000. The contract allocates 80% of the price to the windmill and 20% of the price for the labor it will take to erect the equipment. Which of the following source(s) of law govern(s) the contract? I. Common. II. Statutory. III. Constitutional. IV. Secondary.
II only.
Which of the following are appropriate to address in a code of conduct? I. Respect. II. Trustworthiness. III. Dress code. IV. Ban on use of company property for personal reasons.
III and IV.
Which of the following are events of termination of an offer via operation of law? I. Revocation. II. Rejection. III. Death of the offeror. IV. Lapse of reasonable time.
III and IV.
On Monday morning, Shelley sends Keats an offer via e-mail: "I offer to manage your website at a rate of $100 per hour. You must accept by Friday." Keats receives the e-mail on Monday afternoon, and immediately replies "We already have a web designer. Thanks." On Tuesday, Keats learns that the web designer position is actually open, so he e-mails Shelley "Sorry for the confusion. I accept your offer of Monday. When can you start?" Which of the following is true? I. No contract exists because the lapse of time. II. A contract exists as of Tuesday. III. No contract exists because of operation of law. IV. No contract exists because Shelley's original offer was rejected.
IV only.
Helsel goes to see a physician concerning a particularly harsh flu. The doctor examines him, prescribes medication, and gives him a bill for medical services. This agreement falls into which of the following categories of contracts?
Implied
Holden brings Tippy to Caulfield, a veterinarian, for treatment. No payment or other agreement terms were discussed. After the treatment, Caulfield presents Holden with a bill for $500. What is the category of contract between Holden and Caulfield?
Implied
Which of the following is true of subject matter jurisdiction on the basis of diversity of citizenship?
In a diversity-of-citizenship case, a federal court will apply state law.
Attorneys who are part of the executive or midlevel management team of large companies are known as
In house counsel
Canada applies the country of origin principle in international jurisdiction for Internet transactions. Which of the following is likely to be true of Canada in terms of its jurisdiction standards?
It applies the law of the country in which the defendant's servers are located.
roughly defined as the science and philosophy of law, defines several schools of thought that are used to describe various approaches to the appropriate function of law and how legal doctrines should be developed and applied.
Jurisprudence
Which of the following is the appropriate "reality response" to the following challenge of business ethics: "Ethics cannot be managed?"
Management inherently incorporates a value system because priorities can be influenced by ethics.
In his classic condemnation of the CSR movement, Nobel Prize-winning economist Milton Friedman advocated which CSR view?
Narrow
Which CSR school of thought follows the view that market efficiencies guide morality and responsibility in business?
Narrow
Ethical decisions made on the basis of religious tenets or codes are an example of what approach to moral philosophy?
Principles-based
An ethical decision made on the basis of inherent moral rights is an example of which approach to moral philosophy?
Principles-based Correct
Which of the following is a type of informal alternative dispute resolution (ADR)?
Settlement agreement
Which of the following is an example of equitable relief? A fine imposed for speeding. A breach of contract. Specific performance. A statutory scheme.
Specific performance.
Which of the following is a constitutional restriction on the state regulation of commerce?
States are free to regulate commerce as long as the state law is a legitimate effort to regulate health, safety, and welfare.
The owner of a warehouse contracts with Satellite Services for the purchase and installation of satellite dishes at the warehouse. The contract allocated $8,000 for the satellite dishes and $2,000 for installation. Which source of law governs this contract?
Statutory (UCC), because of the allocation of price.
Which of the following is always true of litigation and arbitration?
The hearing is conducted in a formal setting.
Which of the following is the appropriate "reality response" to the following challenge of business ethics: "Complying with the law is the only guide for ethical conduct?"
The law is a baseline for ethical decision making, but unethical acts can occur within legal limits.
Which of the following is an executive power granted by the U.S. Constitution?
The power to enter into treaties and carry out foreign policies.
Which of the following is a congressional power granted by the U.S. Constitution?
The power to regulate commerce
Which of the following terms best describes a form of appeal in which an appeals court conducts a new trial as if the original trial had never occurred?
Trial de Novo
Civil laws are designed to compensate parties (including businesses) for losses as a result of another's conduct.
True
Criminal laws are a protection of society, and the violation of criminal laws results in penalties to the violator such as fines or imprisonment.
True
Decisions of trial courts are reviewed by appellate courts.
True
Liquidated damages are damages that the parties in a contract agree to ahead of time.
True
Litigation is likely to have an adverse effect on the business relationship between the parties.
True
Political spending by corporations is a form of protected speech under the First Amendment.
True
The rule preventing recovery for reasonably avoidable damages is often called the duty to mitigate.
True
Adjudicating disputes is one of the primary roles of the U.S. judiciary.
True -In the American legal system, the judiciary has two primary roles. First, courts adjudicate disputes. Second, certain courts are charged with the responsibility of judicial review.
Best thought of as procedural model law, the _____________ applies to transactions where the parties have expressly agreed to use electronic methods to facilitate an agreement.
Uniform Electronic Transactions Act
Digital signatures are recognized under state statutes that have passed which of the following acts?
Uniform Electronic Transactions Act
When two parties agree to use an electronic-commerce method for a transaction, the _____________ sets out procedural guidelines that recognize electronic records and signatures under the law.
Uniform Electronic Transactions Act
Holden puts up a poster around his neighborhood, "Missing: My Dog Tippy. Reward $100 if you find Tippy and bring him to my house." Caulfield finds Tippy and presents the dog to Holden. What is the category of contract between Holden and Caulfield?
Unilateral
___ emphasizes prioritizing moral principles in the organization and ensuring behaviors are aligned with those values.
Values management
In which of the following situations does a federal court have exclusive jurisdiction over cases?
When the United States is a party in the litigation.
In the Leonard v. Pepsico, Inc. case, the court held:
although certain advertisements could be an offer if the promise is clear, definite, and explicit, such was not the case in this particular television advertisement.
In the Grimshaw v. Ford Motor Company case, the court found that Ford's conduct ___________.
constituted corporate malice
When a seller breaches a sales contract, the Uniform Commercial Code (UCC) provides the buyer with an option to take immediate steps by canceling the contract and purchasing substitute goods from another vendor in order to continue business operations. This right is known as _____.
cover
Cardozo Candies agrees to sell 100 boxes of chocolates to a retail store and deliver them in one week. This agreement falls into which of the following categories of contracts?
express
In private arbitrations Multiple Choice the losing party has to get the approval of the winning party to appeal to a trial court. the arbitrator's decision is considered the final decision by both the parties. the arbitrators are federal judges. the two parties agree to arbitrate.
d. the two parties agree to arbitrate.
Joan is on trial for first-degree murder. It is a jury trial in which she is pleading not guilty. Presently, the plaintiff's attorney is asking questions of the witnesses on the plaintiff's list. This is known as _____.
direct examination
Some ethicists refer to the triple bottom line to put CSR into perspective. The triple bottom line consists of being 1) profitable, while 2) considering potential destruction to the __________, and 3) adding social value.
environment
Based on the fact that Josh's bike is less than a year old, has recently been serviced, and is perfect for mountain riding, Rick agrees to buy the bike and signs Josh's contract. However, Josh is aware that, in reality, his bike is much more than a year old. In this scenario, Josh's behavior is reflective of _____.
guilty knowledge
An aggrieved party is entitled to recover consequential damages when
he damages are a result of the breach of the contract.
Ted is on trial for murder. The prosecution must provide _____ evidence in order to secure Ted's conviction.
inculpatory
Nate agrees to sell his boat to Tina. In the contract, Nate agrees to deliver the boat in two weeks, but Tina learns that he is looking for another buyer who will pay a higher price. Tina turns to the court to stop Nate from selling his boat to any other party. In this case, she is seeking _____.
injunctive relief
If a state in the United States enacts a statute that affects the rights of children born out of wedlock and it is challenged, the courts will most likely examine the constitutionality of the statute applying
intermediate-level scrutiny.
In Grimshaw v. Ford Motor Company, the evidence showed that Ford ________________.
needed to spend only $15.30 per car to fix the defect
Business organizations committed to corporate social responsibility (CSR) aim to achieve commercial success in ways that honor ethical values and respect ______
people, communities, and the natural environment
Business organizations that integrate corporate social responsibility (CSR) principles in their decision making plan to achieve commercial success while still honoring ethical values and respecting ___________.
people, communities, and the natural environment
Corporate Social Responsibility (CSR) is defined as corporations that aim to achieve commercial success through ways that honor ethical values and respect for:
people, communities, and the natural environment.
The power granted by the supremacy clause to override a state law is called _____.
preemption
A company is considering shutting down one of its plants. In this decision, employees are _______.
primary stakeholders
A company is considering shutting down one of its plants. In this decision, managers are ______.
primary stakeholders
Some ethicists refer to the triple bottom line to put CSR into perspective. The triple bottom line consists of being 1) ______, while 2) considering potential destruction to the environment and 3) adding social value.
profitable
When two parties have imperfectly expressed their agreement and this imperfection results in a dispute, a court may change the contract by rewriting it to conform to the parties' actual intentions. This contract modification is called _____.
reformation
Clintonville Power (a hypothetical power plant) is considering shutting down one of its plants. In this decision, the surrounding neighbors are ________.
secondary stakeholders
Some ethicists refer to the triple bottom line to put CSR into perspective. The triple bottom line consists of being 1) profitable, while 2) considering potential destruction to the environment, and 3) adding _____ value.
social
The U.N. Convention on Contracts for the International Sale of Goods (CISG) is different from the Uniform Commercial Code (UCC) in that
the CISG allows sellers the right to cure even after the performance period is over.
In the Raffles v. Wichelhaus case, the court held:
there was no mutual assent between the parties due to mistake by ambiguity.
A contract that meets all of the statutory requirements to form a contract but is subject to a legal defense is a(n) ____________ contract.
unenforceable
In Grimshaw v. Ford Motor Company, the court _______
upheld the lower court's award of $3.5 million to Grimshaw
Evidence indicates that management teams who embrace ________________ promote profitability and contribute to sound public policy.
values management
Managing ethics in the workplace involves identifying and prioritizing moral principles to guide behaviors of the organization. This is called ____________
values management
Hyde hires an arsonist to set a warehouse on fire for $1,000. This agreement is legally ____________.
void
A contract in which one party may either disaffirm or enforce a contract is ______
voidable
