Legal Environment of Business Final

A citation is a regulation enacted by a city or county legislative body.

False

A license that limits the uses of a patent by the licensee is unlawful.

False

A person who wrongfully hurts another's good name or reputation orally may be liable for libel.

False

A request for admission can lengthen a trial because the parties have to take the time to prove facts on which they may already agree.

False

Independent regulatory agencies are not subject to the authority of the president.

False

Strict liability is imposed only for an act that departs from a reasonable standard of care to cause an injury.

False

Insofar as possible, a reasonable, lawful, and effective meaning will be given to all of the terms of a contract.

TRue

If one party to a contract has fully performed but the other has not, the contract is executory.

TYrue

A contract that only one of the parties can enforce in a court is not valid.

False

A corporation can refuse to produce business records that might subject the firm to criminal prosecution.

False

A false statement made with actual malice can constitute defamation, unless the statement is about a public figure.

False

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

False

A prevailing party has no right to appeal a trial court's decision, even if, for example, the party receives a smaller monetary award than sought.

False

A specified state of mind, or intent, is not necessary to establish criminal liability.

False

A state may not restrict certain kinds of advertising, even in the interest of preventing consumers from being misled.

False

A state's prosecution of a crime prevents a separate federal prosecution relating to the same activity.

False

A statute that prohibits theft by means of false pretenses usually applies only to goods, not to services or cash.

False

An act of omission cannot be a crime.

False

An employer can use his or her power and control to engage in an intentional pattern of outrageous abuse against an employee without potential tort liability.

False

An unusual or fanciful trade name is not protected under trademark law.

False

Attempts to settle a case must be concluded before the litigation process begins.

False

Because laws may change, the ability to analyze and evaluate the legal ramifications of situations as they arise is not a lasting skill.

False

Because the Internet is international in scope, no party to an online dispute resolution proceeding can appeal to a court at any time.

False

Civil law has to do with wrongs committed against society for which society demands redress.

False

Contract law does not distinguish between moral and legal obligations.

False

Crimes are sometimes prosecuted by crime victims rather than by a public official.

False

Failing to strictly follow the procedural rules and standards for determining disputes in courts is not likely to affect the outcome in a particular case.

False

If a creative work is not copyrightable, other intellectual property law will not protect it.

False

In a case involving Internet transactions, jurisdiction is proper only when the defendant conducts substantial business in the jurisdiction online.

False

In a criminal case, the object is to obtain a remedy.

False

In a product liability case based on negligence, a defendant may be liable even if the plaintiff has not met the requirements for an action in negligence.

False

In considering a trial court's judgment, an appellate court bases its opinion on its de novo review of the evidence.

False

Judicial review is the process through which Congress approves or rejects judicial appointments.

False

Jurisdiction refers to the right of a citizen to bring a case before a court.

False

On appeal of a court's grant or denial of a motion for summary judgment, the appellate court must defer to the trial court's ruling on the issue.

False

Once a company has investigated any foreign suppliers, it is unnecessary to continue to monitor those suppliers.

False

Once a law is passed to codify an ethical requirement, the ethical aspect of the action is no longer important.

False

Once an offer is made, the offeror cannot revoke it.

False

One of the purposes of criminal law is to compensate the victims.

False

Only Congress may pass a law in conflict with the Constitution.

False

Procedural due process focuses on the content of legislation.

False

Substantive due process requires that a person have an opportunity to object to a proposed action before a fair, neutral decision maker.

False

The commerce clause has had no greater impact on business than any other provision in the Constitution.

False

The commerce clause has never been held to support the federal regulation of noncommercial activities that take place wholly within a state's borders.

False

The law does not prohibit the creation or shipment of counterfeit labels unless they are attached to products.

False

The standard of reasonable care for a professional is the same as that of an ordinary person.

False

The term moral minimum is best defined as the highest degree of ethical behavior expected of a firm.

False

The terms of service that a person agrees to before loading an app on a phone are not truly legally binding.

False

The types of product defects that have traditionally been recognized in product liability law include careless marketing.

False

To be liable on a theory of strict product liability, a defendant must be in a better position than the plaintiff to bear the costs associated with the harm caused by a product.

False

Under the principle of rights theory, the key factor in a decision is how the result may harm the rights of the company to make money.

False

Warrants are required for searches of businesses in highly regulated industries.

False

An agreement to form a contract cannot modify the terms of a previous contract.

False`

A complaint contains a brief summary of the facts necessary to show the party filing the complaint is entitled to relief.

True

A declaration that binds the person who makes it to do a certain act is a promise.

True

A defective product is an unreasonably dangerous product when it is dangerous beyond the expectation of the ordinary consumer.

True

A defendant may be able to limit liability for injuries caused by a defective product by showing that a plaintiff's negligence contributed to the injuries.

True

A deposition can be used to impeach a party or witness who changes his or her testimony at trial.

True

A law that that limits a fundamental right may be held to violate substantive due process.

True

A mistake of fact can often excuse criminal responsibility.

True

A seller who introduces into commerce an unreasonably dangerous product may be subject to a tort action for strict liability.

True

A trademark owner that successfully proves infringement can recover the profits that the infringer wrongfully received from the infringement.

True

An economically injurious falsehood about a business's product can support a tort action for disparagement of property.

True

An executed contract is one that has been fully performed by both parties to it.

True

An illegal act committed by a business using nonviolent means to obtain a business advantage is a white-collar crime.

True

Arbitration differs from other forms of alternative dispute resolution in that a third party hearing a dispute makes a decision for the parties.

True

The United States Supreme Court has held that a constitutional right to privacy is implied by several of the amendments in the Bill of Rights.

True

The common law is a body of law developed from judicial decisions.

True

The most potent weapons against white-collar criminals include the federal laws prohibiting mail and wire fraud.

True

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

True

Voir dire refers to the jury selection process.

True

When making ethical decisions, a business should evaluate the financial implications.

True

Because the Internet is international in scope, it raises international jurisdictional issues.

True

Because the courts have defined interstate commerce broadly, arbitration agreements only slightly connected to interstate commerce may be enforced.

True

By supplying procedures for enforcing private agreements, contract law provides an essential condition for the existence of a market economy.

True

Congress or a state legislature establishes an administrative agency to perform a specific function.

True

Controlling precedents are binding authorities.

True

Crimes are offenses against society as a whole.

True

Each member country to the TRIPS agreement must include in its domestic laws broad intellectual property rights and effective remedies for violations.

True

Ethical decision makers should test and reflect on the outcome of their decisions.

True

Every criminal statute prohibits certain behavior.

True

For fraud to be the basis of liability in a product liability suit, the misrepresentation must have been intentional.

True

Generally, because the parties to arbitration are free to agree to the means of the method, a court will not hear a complaint from either party about the results.

True

If no legally recognized injury or harm results from a given negligent act, there is nothing to compensate—in effect, no tort exists.

True

If the evidence of a defendant's guilt was obtained improperly, it normally cannot be used against the defendant in court.

True

If what is written in a contract is clear, a court will enforce the contract according to its obvious terms.

True

In the United States, the law consists of written laws and court decisions.

True

International law derives from a variety of sources, including the laws of individual nations.

True

Laws would have no discernible meaning without the courts to interpret them.

True

Manufacturers are commonly held liable when their negligence causes users of their products to be injured.

True

Most crimes require an act of commission.

True

Multinational corporations agreeing to resolve a dispute through a formal hearing before a panel of experts is a method of alternative dispute resolution.

True

Picking a jury is an important aspect of litigation strategy.

True

Preemption occurs when Congress chooses to act exclusively on a subject over which the federal government shares power with the states.

True

Some business processes can be protected as trade secrets.

True

Some courts do not allow assumption of risk as a defense to a strict product liability claim because the theory focuses on the nature of a product, not the plaintiff's conduct.

True

The Computer Access Device and Computer Fraud and Abuse Act prohibits cyber theft.

True

The U.S. Constitution provides safeguards that apply not only in federal but also in state courts.

True

The basis of a civil law system is a written code of laws.

True

The legal rules that control a business's actions reflect past and current thinking about how similar businesses should and should not act.

True