BUS 251 Mega Set
Les orders a set of vitamins online. When it arrives the vitamins were packaged in shrink wrap. When he opens the packaging, he is accepting what type of agreement?
Shrink Wrap
In commerce today, the intent of laws are all of the following except
To promote maximum profits
The age when an individual becomes an adult is an example of
A bright-line rule
Karen offers to sing five songs at Meyer's wedding for $500.00. Meyer responds that he will pay her $500.00, but he needs her to sing six songs. Meyer's actions constitute
A counter offer
An action by a minor to avoid the obligations under a contract that has been performed is
A disaffirmance
Monmouth Publishing employs very brilliant attorneys to search through the laws to find legal loopholes that benefit their profit margin. They find a legal loophole which allows them to require a certain sect of employees to work far under minimum wage, often times taking advantage of people. Therefore, they decide to fire all of their current employees in favor of the sect of employees that they can pay under minimum wage. Are they acting unethically?
A particular act can be deemed unethical yet still be legal.
Black's Law Dictionary, as cited in the textbook, defines "law" as including each of the following except
A tool for regulating personal ethics.
An agreement to buy cocaine from a drug dealer is
A void contract
How many states have adopted the Uniform Commercial Code?
All
Mason, an employee at Campbell Corporation, witnesses Bayden, a fellow coworker taking bribes and gifts from clients in violation of their company's code of ethics, conflicts of interest clause. Mason does not report him as he is a very good friend of his. Which statement below is correct for an effective values management program?
All employees have a duty to report violations of law or the company's code of ethics to a superior manager.
A(n) __________ is where the offeror agrees to hold an offer open and not enter into a contract with another party for a certain period of time in exchange for consideration.
An option contract
Which of the following outcomes would not be available in a court of equity?
An order for the payment of money damages for a breach of contract
A(n) __________ in a contract contains supplementary information such as compensation schedules, incentive programs and confidentiality agreements.
Appendix
Click wrap agreements
Are generally enforceable
Valerie promised to mow Laura's yard for Laura's promise to pay her $50.00 to mow it. This is an example of what type of contract?
Bilateral
The ability to understand the terms of an agreement is
Capacity
This ancient Babylonian document covered contract law.
Code of Hammurabi
Erin witnessed a motor vehicle accident but did not stop because she did not want to get involved. Had she stopped, she could have saved the life of Joseph, who was thrown from the car. When Joseph's widow hears that Erin could have easily saved Joseph's life but chose to ignore the situation, she sues Erin. The state has no "Good Samaritan" laws or duty-to-assist laws, but such cases have been brought in the past. Which of the following will the court apply when making a decision in this case?
Common law
__________ has the power to regulate interstate commerce.
Congress
Something of value that is exchanged as part of an agreement is called
Consideration
Connor is an aerospace engineer and project manager for Space Corporation. His team is actively researching, developing and building a satellite to be launched in soon. Connor learns that a new statute is passed that requires all satellites must be built using American made supplies. He immediately orders his team to scrap the current satellite and start building a new satellite in compliance with the new statute. However, what he did not know is that a provision of the new law states that this applies only to new projects started six months from today. Connor should have
Consulted an attorney who is skilled in this area of law and worked cooperatively for better strategic planning.
Bundy's Bicycle Corporation, a U.S. corporation, had a windfall year in profits and is looking for legal loopholes to avoid paying taxes on it massive profit. To avoid taxes Bundy's merges with a foreign business, simply to avoid paying for taxes in a process called
Corporate inversion
An attorney in the business context is called
Counsel
Statutory law is
Created by the legislative branch and approved by the executive branch.
The triple bottom line in the perspective of corporate social responsibility emphasizes each of the following except
Creation of private value.
In Flagiello V. Pennsylvania Hospital, the court had to balance the hospital's negligence against the charitable immunity doctrine to determine whether Flagiello could recover for injuries sustained on the hospital's property. In its holding, the court determined that
Current societal norms rendered the charitable immunity doctrine inapplicable to this case and fundamental fairness allowed the court to deviate from established case precedent and find Flagiello
Tom is late for a class and tells his friend Shameem that he will pay her $100.00 to drive 20 miles over the speed limit so that he can make it to class on time. Is there a contract?
No as an agreement to violate a statue is illegal and void
16 year old Grace agrees to quit school to work for Andrew in his flower shop full-time. When Grace's mom finds out what she has done, she orders her to tell Andrew that she will quit the job. This is called
Disaffirmance
Becker Corporation hires a social media influencer, Bekah, to use their product and post about it on social media. This is an example of which type of an agreement?
Employment
Because of the increased effort for businesses to create a Code of Conduct and a Code of ethics for business decisions
Ethical dilemmas faced by employers are still often complex with no clear ethical choice.
John tells Jami he would sell her his grandmother's wedding ring for $100.00. Jami accepts and they exchange the ring and the money. Two days later, John tells Jami that he was only joking and now wants the ring back and he will give her the money back. According to the objective theory of contracts, which statement below is correct?
Even if John was joking, the court will not consider John's personal belief but will determine if a reasonable person would believe John's language and conduct indicated he was serious in his intent to contract.
Hailey purchased an automobile insurance policy through State Insurance. However, State Insurance failed to use the proper legally mandated insurance form. Hailey gets into an accident and seeks to use her policy. Which statement below is most likely correct concerning the outcome of the issue?
Even though the form may not be the legally approved form, an insured under the policy may still enforce that policy.
The U.S. Constitution created three branches in the federal government. Those three branches are
Executive, legislative and judicial
Emily is an attorney for Claxton Corporation that hired her to negotiate contracts for them. Emily should do all the following during the negotiating process except,
Exercise an exclusive decision-making function
In Grimshaw v. Ford Motor Company, Ford was found liable because
Ford placed profit over the potential impact to customers, including potential loss of customers' lives.
Aimee and Claire both own their own bakeries in Edwardsville. They both agree with each other to sell their cupcakes for $5.00. Is this contract enforceable?
No as it is a restraint on trade which is against public policy.
Gigi, as a kind gesture, offers to let her friend, Bonnie, stay at her house for free instead of paying the high rent she is currently paying. Bonnie loads up her moving truck and terminates her current lease. When Bonnie shows up to Gigi's house with a full moving truck, Gigi decides she no longer wants her to stay at her house and turns her away. Does Bonnie have any legal recourse?
If Bonnie can show that she reasonably relied on Gigi's promise to her detriment, Bonnie may have legal recourse under under the concept of detrimental reliance.
Purchasing a soda from a soda machine is an example of a __________ contract.
Implied
Examples of characteristics of individuals who lack capacity include all of the following except
Impulsive individuals
NASA hires Connor, an Aerospace Engineer, to research and to develop a wing design to increase the speed of rockets in outer space. This is an example of what type of agreement?
Invention assignment
John owns Marine Brewery and hires Beth to advise him on business decision making. Beth is very aggressive and believes that society is best served when seek a competitive advantage and that ethical violations will harm the companies, always advises John in a manner that focuses on finding that competitive advantage. Beth employs which type theory of corporate social responsibility?
Invisible hand
Option contracts form an offer that is
Irrevocable
The U.S. system of common law
Is derived from the British common law
One advantage of a community-based nonprofit type of corporation is
It is tax-exempt
Dottie, 15 years old, purchases a pint of milk and drinks it all. While she is not old enough to have contractual capacity, under what theory would she be held liable for this item that is necessary for her health and welfare?
Necessaries
Karla is a CEO of Brinkman Corporation which designs, builds and markets slot machines for casinos. Karla's professional career has focused on marketing and employee relations but she is not really knowledgeable about the intellectual property law and protections in the United States that heavily dominates this industry. Which statement is correct?
Karla should have superior knowledge of the law as it relates to her business and work proactively with legal counsel to find ethical and effective business solutions.
In Lucy v. Zehmer, the court ruled that under the objective theory of contracts
Lucy and Zehmer's conduct and language would be viewed by a reasonable person as a serious intent to contract.
In the case of United States v. Apple, the court determined that the Sherman Antitrust Act
Made only unreasonable restraints of trade illegal
When Maria comes home from work, she finds that her yard has been mowed and trimmed. An hour later, a man comes to her door to collect payment for the yard work. Maria refuses to pay him because she has never seen him before and did not hire him to do the work. Which of the following is accurate?
Maria would not have to pay anything.
Mary is broke but needs a gown to go to a formal dance sponsored by her company. She goes to a local dress shop and purchases an expensive gown she cannot afford. She wears the gown to the event, tucking in and hiding the price tag rather than removing it. She dances all night and the next day goes back to the shop and returns the dress. The store's policy is that it will accept returns for 30 days as long as the price tag is still attached.
Mary has not acted ethically because this is not an act generally accepted in society.
If a person if not as guilty as another person in entering an agreement that is illegal based upon fraud, the less guilty person
May have restitution for the portion of the performance the less guilty person performed.
Janet attends a "purse party" at her friend Nancy's house. Nancy claims she made all of the quilted purses she is selling. Janet purchases one of Nancy's handmade purses for $50.00. A few days later Janet finds out that Nancy did not make the purses, but instead stole them from a warehouse. Would Janet be able to get any of the money back that she paid for the purse?
Maybe. Under the concept of in pari delicto if the court determine one party is less guilty because of fraud, that person may get restitution.
Rachel recently earned her driver's license. She learned all the rules of the road within her state, Illinois, and aced her Illinois driver's test. While traveling through Missouri, she follows all of the traffic rules that she learned in Illinois. If a Missouri traffic rule conflicts with an Illinois law, which one would apply to an Illinois licensed driver who is driving in Missouri?
Missouri laws will apply to Rachel when she is driving in Missouri.
In Walker v. Carter, the court determined that contracts that cannot possibly be completed in less than a year
Must be in writing to be enforceable
In Sparrow v. Demonico, the court ruled that in order for a person to lack mental capacity due to a mental illness
Must focus on a party's understanding at the time of the disputed transaction.
__________ theory is a moral philosophy that certain rights and moral values are timeless and universal and discoverable through human reason.
Natural
If an agreement is illegal in purpose and unperformed
Neither party will be able to enforce it.
Candace texts Rosa the following, "Hey Rosa, do you want to buy a car for a really great price?" Rosa immediately replies, "YES!!!!" Has there been a meeting of minds?
No because the offer is too vague
Senator Beach agrees with his donors that if they give him $500 he will arrange a meeting with a group of Senators. Brett donates $500 and requests the meeting but is denied. He sues Senator Beach for breach of contract. Will he be successful?
No it is illegal to sell public office influence and time.
Ralph, 32 years old, sells his car to Joe, 16 years old, thinking Joe is actually 18 years old. When Ralph finds out Joe is actually only 16 years old, he is outraged and wants to have the contract voided because Joe is a minor. Will Ralph be successful?
No the contract is only voidable by the Joe, the minor.
Your Business Law professor walks into a regularly scheduled class today and states that she will not teach class unless each student enrolled in the class pays her $5.00 to teach today. Does consideration exist?
No. While money has legal value, the service of teaching the class is a preexisting duty.
Lotta sells illegal ivory to Johan for $1000.00. Johan gives Lotta the money but Lotta only supplied Johan with half the promised ivory. Johan sues Lotta for breach of contract to force her to provide the remaining promised amount. In general, what most likely will be the outcome of this suit?
Nothing as the courts will leave the parties as is and not enforce recovery or rescission.
A revocation is effective
Once the offeree receives the revocation
Paris offers to sell her landscaping business to Steve for $100,000.00. Before Steve responds, Paris tells him that she has changed her mind. Which statement is true?
Paris is the master of her offer and she can cancel it any time up until Steve accepts it.
The European Union fining Google $2.7 billion for manipulating search results illustrates a trend in the law that
Penalties are becoming stiffer for non-compliance of laws.
Packingham, a registered sex offender in North Carolina, was convicted of a felony for violating a North Carolina law which made it a felony for a registered sex offender to access social media sites that allowed minor children to as well. Packingham appealed his conviction to the U.S. Supreme Court which overturned his conviction stating that the law was unconstitutional because it impermissibly restricted lawful speech and violated the First Amendment. The opinion of the U.S. Supreme Court is
Precedent
Janet enters into a contract with Laura to tutor her in Chemistry one day a week for a year. After the second session, Janet decides to stop tutoring Laura due to their conflicting schedules. Laura sues Janet for breach of contract. This is an example of:
Private laws
A state statute mandates that the statute of limitations of a negligence lawsuit is two years and the plaintiff is barred from filing the suit if he or she files after that time. This statute is an example of a
Procedural law
For a contract to be enforceable it must not violate some __________.
Public Policy
After the recent fire which substantially damaged Notre Dame in Paris, Corporation X, decides to dedicate half of its profits for the next two years to the rebuilding efforts. Under which corporate social responsibility ethical decision making theory would this most likely be proper?
Public theory
The broadest view of Corporate Social Responsibility is that corporations have a social responsibility to which profit is secondary is called
Public theory
Kevin, at 17 ½ years of age, buys a motorcycle from an adult, Shelby. On his 18th birthday Kevin continues to drive his motorcycle. Because he has done so, he becomes legally bound to the terms of the contract by
Ratification
John is hired for a long term project where he is tasked with the job of increasing exposure of millennials to the power of shopping local rather than buying online or from big business. His contract specifically states what areas of mass communication he must use, the specific demographics of the target audience and the end goals desired. It further states that he will use an expense account to cover the costs of travel and expenses related to his job. John's contract is an example of what type of contract?
Relational
Andre, Michael and Reed go on a hunting trip to Texas, leaving their good buddy Evan behind to run the business they own together as partners. In a fit of jealousy and rage, Evan burns the business to the ground. Which statement below is correct?
Since Evan's actions were criminal, he could be held criminally liable and since his actions caused monetary damages to the business, he could also be held civilly liable to his partners for the damages.
Which statement below is correct as it relates to business strategy?
Since the law has become increasingly complex and specialized, and businesses routinely face many different legal issues, it is not unusual for a business to need to seek advice from more than one attorney.
In the case of C.M.D. v. Facebook, Facebook allowed a minor to create a Facebook account, but the minor had to accept Facebook's terms, which included using the minor's name and likeness in advertisements. The minor's parents sued Facebook, claiming the terms of the agreement were not enforceable against a minor, and also claiming that the minor disaffirmed the agreement with Facebook. How did the court rule?
Since the minor kept using Facebook he never disaffirmed it.
Which of the following is not a common challenge to business ethics and values management?
Success is measured in profits and losses, not in ethical conduct.
The "general counsel," may also
Supervise one or more attorneys, usually called "associate counsel"
Kiiko offers to sell her dog to Taiga for $250.00. Taiga immediately yells, "heck no!" Later Taiga changes his mind and calls Kiiko up to tell her that he accepts her offer. Which statement below is correct?
Taiga rejected the offer, and a rejection terminates an offer.
Hannah shops at a high-end doggy boutique and purchases a designer dog collar for $3500.00. As soon as she got home, she put it on her dog who wore it for a couple of days. After a few days, she realized that she could not afford the collar and did not really like it. She attempted to return it to the store and they refused. Hannah filed suit against the store stating that they charged way too much for their products and made an unfair and unreasonable profit. What would most likely be the outcome of the case?
The court will rule that as long as Hannah understood her actions there was consideration as two things of legal value were exchanged.
In Grimshaw v. Ford Motor Company, if Ford if Ford had made the repairs to the cars, diminishing profit but enhancing customer safety, which theory of corporate social responsibility would Ford have been exhibiting?
The broad view or management's hand theory
Tyke's Bikes is a bicycle sales and repair shop in a small city. It sells new and used bikes with a narrow profit margin and does repairs at minimal costs. Frequently, if a child comes into the shop with a broken part or a flat tire, Tyke's makes the repair for free if the child has no money. Tyke's also provides a free one-hour repair class for those who want to learn how to fix their bikes. At large local organized bike rides, Tyke's provides free services, asking only for voluntary donations. Which theory of corporate social responsibility is Tyke's exhibiting?
The broad view, or good corporate citizenship.
Let's say, Habitat for Humanity, a community-based nonprofit, this year had a surplus of money in that they did not spend all of the money that had raised this year. Which statement below is correct?
The surplus will be reinvested in activities that achieve the company's social mission.
In 1971 Poorwa offered to sell her new Ford Mustang to Tom for $2000.00. Tom asked to think about her offer and get back to Poorwa. 40 years later, Tom realizes Poorwa still has the Mustang that is now worth $121,000.00. He calls up Poorwa and says that he has finally had time to think about it and he now accepts Poorwa's offer from 1971 to buy the Mustang at $2000.00. Which statement below is correct?
The offer terminated after a reasonable amount of time had lapsed.
All of the following are required for promissory estoppel except
The offeree was a minor
Tanner texts a friend, "hey, I'll let you use my car today if you do my grocery shopping for me because I am out of time!" Tanner is
The offeror
Sunshine Recording Artists, a major business in the music industry, routinely seeks to copyright the songs of each artist they sign. Rockin' Robert, a new artist with amazing musical talent has just signed with them and he has already created 40 amazing songs in the first week alone and he is not expected to slow down. What advice would you give Sunshine Recording Artists about their legal needs due to their extraordinary increase in intellectual property rights due to Rockin' Robert?
They should employ in-house counsel because of the extraordinary regulatory burdens.
Which legal philosopher asserted that natural law is asserted by God, that it is authoritative over all human beings and it is knowable through the use of reason?
Thomas Aquinas
__________, was a medieval theologian developed the theory which state natural law is given by God; it is authoritative over all human beings; and it is knowable through the use of reason.
Thomas Aquinas
"What if everyone took these same actions" is a question sometimes called the
Universalization approach
Bill is a very skilled attorney with a very strong background in Latin. Therefore, when he writes contracts for his clients, he uses as much legalese and Latin legal terminology as possible. Which statement below is correct?
Whenever possible, an attorney should avoid legalese and instead use plain-English to make contracts easier to understand.
All newly hired attorneys at the law firm of Annaopoli, Windau and Holton must sign a covenant not to compete where they agree that if they leave the firm they will not practice in the same type of law, within 50 miles of the firm for a year after leaving. Miiko, a new attorney who signed the covenant, quits the firm and decides to open an office across the street. Will the covenant not to compete be enforceable?
Yes if the court determines that the covenant not to compete covers a relatively small area and time.
A meeting of the mind requires
a true understanding, and acceptance, of the terms of the offer.
An agreement in which one party may disaffirm or enforce the is
a voidable contract.
At this moment, your contract with your university or college is
express, bilateral, and valid.
Each of the following is a key component in the creation and implementation of a company's values management program except
identifying the values that the company's peer competitors promote.
In general, contracts for services are governed by
state common law.
n general, contracts for the sale of goods are governed by:
state statutory law based on the Uniform Commercial Code.
Will and Kendrick live in a state that requires that contracts involving transactions over $500 be in writing. If they enter a verbal agreement to buy a car for $1,500, this contract is
unenforceable.
According to the mailbox rule, an acceptance if effective
when dispatched by the offeree in a commercially reasonable manner.
