ACCT 315 (Ch. 1, 2, 3, 4, 5, and 7) TEST 1

In Beto v. Car Dealership, a state supreme court held that a minor could cancel a contract for the sale of a car. Now a trial court in the same state is deciding Dora v. Even Steven Autos, Inc., a case with similar facts. Under the doctrine of stare decisis, the trial court is likely to

allow the minor to cancel the contract

Questions of what is ethical involve the extent to which a company has

an ethical duty beyond those duties mandated by law.

VidGames Inc. markets a variety of shooting, fighting, and hunting video games. A state statue is enacted to require all game makers to label any games with an option to kill something as "excessively violent." A court would likely hold this regulation to be

an unconstitutional restriction of speech.

Congress enacts the Ad Restriction Act (ARA) to limit advertising in certain circumstances. The ARA will be considered valid if it directly advances a substantial government interest

and goes no further than necessary to achieve its objective.

In a suit by Citizens Conservation Organization (CCO) against Deep Mining Inc., CCO serves a written request for the defendant to admit the truth of matters relating to the trial. Deep Mining's admission in response

conclusively establishes the matter for trial.

Without the permission of the copyright owner, Faye copies the literary expression of Game of Thrones, changes the names of the main characters, and publishes the result as her own work. This is

copyright infringement.

ChemCo Inc. expends funds and takes steps to ensure that all employees are treated fairly and that the environmental impact of the corporation is minimal. This is the concept of

corporate social responsibility.

Artificial Intelligence Inc. sells to Beta Bots Corporation a promising idea for a technological innovation that is still being developed and that looks very promising. This is

ethical and legal

Fran tells Gio that her Hyundai Kia has never been in an accident. This may give rise to an action for fraud if the statement is

false

Hilo tells the Internal Revenue Service that Jon "cheated on his taxes." This can lead to Hilo's liability for defamation if the statement is

false

Evan is arrested for a theft committed by someone who stole his identity. A court orders his release, but due to a police error in Evan's paperwork, he is held in jail for a month. The police are most likely liable for

false imprisonment.

DIY, a retail hardware store, must use reasonable care on its premises to warn its invitees of

hidden dangers

When deciding to engage in corporate social responsibility, a key factor when selecting activities is

how the social activity relates to the business activities of the corporation.

Sea Coast Café uses the trademark of Tacos del Mar without permission. This use of the mark is actionable as trademark infringement

if consumers are confused.

Product Sales Inc. adheres strictly to the goal of maximizing profits. Even so, Product Sales will benefit from ethical behavior

if customer service is good.

Without permission, Race Runners Inc. uses a trademark that is similar to the registered mark of Swiftfoot, Inc. This use of the mark constitutes trademark dilution

if the use diminishes the distinctive quality of the mark.

In the case of Sales Corp. v. Transport Co., the court may rule contrary to a precedent if the court decides that the precedent

is incorrect or inapplicable.

The Environmental Protection Agency (EPA) discovers that Fish Farm Inc. has violated an EPA regulation. If no settlement is reached, the EPA can

issue a formal complaint.

Analytica LLC files a suit against the United States, challenging a congressional enactment mandating that employers pay their employees' student loans. The process by which the court decides this issue is

judicial review.

State trial courts that are called special inferior trial courts or minor judiciary courts are most likely to have

limited jurisdiction.

Petro Fuel files a suit in a state court against Quality Gas. Before the trial, Petro requests from Quality relevant information stored electronically. In contrast to traditional discovery, this request can legitimately reveal

metadata

Liz and Moss disagree over the amount due under their contract. To avoid involving any third party in the resolution of their dispute, Liz and Moss could resolve their dispute through

negotiation

Taco Hot Dogs, Inc., regularly advertises its products. Under the First Amendment, in comparison with noncommercial speech, the protection given these ads is

not as extensive.

Like most successful companies, Phones Inc. has trade secrets. The law protects those secrets if the information is

of value to a competitor.

GoodGro Inc. makes genetically modified seeds that are identical to Harvest Corporation's patented seeds, without Harvest's permission. This is most likely

patent infringement.

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

police powers

Common law rules develop from

principles underlying judges' decisions in actual controversies.

John, a law enforcement official, monitors Kelsey's Internet activities—e-mail and website visits—to gain access to her personal financial data and student information. This may violate Kelsey's right to

privacy

The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through social media. The first step is

publish a notice of the proposed rulemaking.

Two business companies dispute the quality of goods delivered by the seller and the price agreed to by the buyer. With regard to this dispute, the two firms can

resolve it through an alternative method, such as arbitration. litigate it. ****any of the choices. settle it between themselves.

Georgia enacts a law requiring all businesses in the state to donate 10 percent of their profits to Protestant churches that provide certain services to persons whose income is below the poverty level. Price-Lo Stores files a suit to block the law's enforcement. The court would likely hold that this law violates

the establishment clause.

Each court has a jurisdiction. Jurisdiction is best defined as

the geographic area in which a court has the power to apply the law.

Predictive Data LLC makes and sells software that enables a business to target its advertising precisely. The company could successfully bring an action for copyright infringement against a competitor who copies

the parts of the software that can be read by humans

Flo, the manager of Grounds Maintenance Inc., must decide whether to use an herbicide that could be unhealthy to employees using it and to the public once it is on the ground. Flo might lose the client if she refuses to use the herbicide. If Flo analyzes the importance of good health and avoidance of disease to people in making her decision, she is likely using

the principle of rights theory.

Farmers Pantry Products Inc. and Market Grocers 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 as adversarial as litigation

Dian enters a car race, knowing that there is a risk of being injured in a crash. Dian assumes

the risk of being injured in a crash.

A statute enacted by the Wyoming state legislature to regulate trucking affects interstate commerce. In evaluating this statute, the courts will weigh the burden that it imposes on interstate commerce against

the state's interest in regulating the matter.

Federal regulations concerning medical devices directly conflict with a certain state law. Under the U.S. Constitution, which law takes precedence is determined by

the supremacy clause.

Larry takes Kyla's textbook and hides it so that she cannot find it during the week before the exam. In taking the textbook, Larry most likely committed

trespass to personal property.

Lake City enacts an ordinance that bans the distribution of all printed materials on city streets. Mackensie opposes the city's latest "revenue-enhancing" measure and wants to protest by distributing handbills. In her suit against Lake City, a court would likely hold the ban on printed materials to be

unconstitutional under the First Amendment.

Graphix S.A. traffics in labels that bear counterfeit trademarks. This is a crime

under all circumstances.

Organos Ltd. traffics in nutritional supplements that are marketed as genuine, trademark-branded products when in fact they are counterfeit. This is a crime

under all circumstances.

Cattle House Steaks, an Alabama company, enters into a contract over the phone with Beef Packing Inc., an out-of-state corporation. If a dispute arises, an Alabama court can exercise jurisdiction over Beef Packing

under the minimum contacts test.

"Be honest and treat people fairly." With respect to business ethics, implementing this motto is

very important.

Shelly owns Reclaim & Restore (R&R), a demolition company. Demolition of a Quad City brownstone by an R&R crew injures Penny, a spectator. Under the doctrine of strict liability, Shelly must pay for Penny's injury

without regard to the fault of the R&R crew

Len, a MedCo Supplies salesperson, follows Nan, a salesperson for Optima Health Products (a MedCo competitor) as she visits locations to make sales. Len solicits each of Nan's customers. Len is most likely liable for

wrongful interference with a business relationship.

Commercial Supply wants to initiate a suit against Downwind Power Corporation by filing a complaint. The complaint should include a statement of the facts necessary to show that

Commercial is legally entitled to a remedy

Berry Good LLC registers its trademark with the U.S. Patent and Trademark Office, and uses it to market a distinctive line of ice cream products. Crabapple Inc. uses the mark without Berry's consent to sell imitation frozen desserts. Berry has a cause of action against

Crabapple.

Greg is marketing manager for Home Stuff LLC. Greg is responsible for branding the company's products. Aspects of branding that can be trademarked include

a catchy phrase, such as "Stuff your home with Home Stuff!"

Stare decisis is best defined as

a doctrine under which judges follow established precedents.

The means to enforce a right or compensate for the violation of a right is

a remedy

Power, 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 Power's

accounting and finance manager. marketing manager. ****all of the choices. human resources manager.

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.

Sara files a suit in a state court against Tech Innovations Inc. The parties are allowed to file litigation-related documents with the court online. This is

an electronic court filing system.

Primary sources of law include

case law

Trespass to land is committed if, without the permission of the property owner, a person

causes water to back up onto the property

Without Research Data Corporation's consent, Sia hacks into the firm's computers and downloads trade secrets and other confidential information. Most likely, Sia is liable for the tort of

conversion

To reduce traffic, Market Town enacts an ordinance that allows only a few specific street vendors to operate in certain areas. A court would likely review this ordinance under the principles of

equal protection

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

the law does not codify all ethical requirements.

With respect to what society will tolerate, a company's compliance with the law, and no more, is

the lowest ethical level.