BUS LAW FINAL EXAM
What freedoms does the First Amendment guarantee?
Freedom of Religion, Speech, Press, Assembly, and Petition
Who brings the case in criminal law?
Government is the party prosecuting
Guido and Hal want to rescind their contract under which Guido sold Hal a mountain bike for $100. To rescind the contract
Guido must return the $100 and Hal must return the bike.
What is the Supremacy Clause of the Constitution?
It says that federal law overrides state law
Edith works for Fast Trades, Inc., a brokerage that facilitates frequent, quick securities transactions for investors. Edith steals her employer's computer program to start up her own competing business, Get Rich Quick, Inc. This is
Larceny
Larry throws a rock intending to hit Mike but misses and hits Nate instead. On the basis of the tort of battery, Nate can sue
Larry
what is substantive law?
Law that defines, describes, regulates, and creates legal rights and obligations.
What is a misdemeanor?
Less serious crime, commonly punishable with a fine, imprisonment for less than 1 year, or both, or with parole.
Does the First Amendment protect obscenity?
NO
A contract for a sale of land from Bayside Properties, Inc., to City Development Corporation contains an erroneous legal description. The most appropriate remedy for these parties is
Reformation
when does motion to dismiss come into play?
the plaintiff asks for summary judgement if the defendant fails to show in court
What 5 contracts must be in writing?
1) sale of goods over $500 2) a contract that cannot be completed within a year 3) collateral requires a co-signer 4) property/real estate 5) marriage/ prenuptial
what are the primary sources of law
1. The U.S. Constitution and the constitutions of the various states. 2. Statutory law—including laws passed by Congress, state legislatures, or local governing bodies. 3. Regulations created by administrative agencies, such as the Federal Trade Commission. 4. Case law and common law doctrines.
What are the 4 elements of negligence?
1. duty of care 2. breach of duty 3. causation 4. damages
what three individuals lack contractual capacity?
1. minors 2. intoxicated/under the influence 3. mentally incompetent
what two elements must exist before a person can be held liable for a crime?
1. the performance of a prohibited act (actus reus) 2. a specified state of mind or intent on the part of the actor (mens rea)
what are the 5 broad categories of crime?
1. violent crime 2. property crime 3. public order 4. white-collar 5. organized crime
what amendments protect a person accused of a crime?
4th amendment: protects against searches and seizures (requires a warrant with probable cause) 5th amendment: requires due process of law and protects against double jeopardy/ self incrimination . ** right to remain silent 6th amendment: right to speedy, public, and fair (jury+witnesses) trial 8th amendment: prohibits excessive bail/cruel and unusual punishment
On Victor's eighteenth birthday, he decides that he no longer wants to keep a fishing boat he bought from Water Craft, Inc., when he was seventeen. His right to disaffirm the deal will depend on
C. whether Victor acts within a reasonable period of time.
Mae is granted immunity after she agrees to testify about a crime. Mae has an absolute privilege against self-incrimination and
CAN NOT refuse to testify on Fifth Amendment grounds.
What is case law?
Case law refers to the final decisions made by judges in court cases.
What is due process?
Constitutional protection against unfair governmental actions and laws
what are the differences between criminal and civil law
Criminal (Gov v. Ind)- the government charges an individual with violating a specific law. ex. Robbery Civil (Ind. v. Ind)- Consists of a dispute between two parties; can exist over a wide range of matter ex. lawsuits, divorce
In an action against Gina, Harry obtains a remedy. This is
D) the legal means to recover a right or compensate for the violation of a right
Destiny and Enzo engage in a business transaction. When a dispute arises, Destiny initiates a lawsuit against Enzo by filing a complaint. If Enzo files a motion to dismiss, he is asserting that
Destiny did not state a claim for which relief can be granted.
Fits Like A Glove Shoes, Inc., and Retail Footwear Stores enter into a contract for a sale of shoes. The contract indicates that the price includes transportation costs to a specific destination by including the term
FOB
What is jurisdiction?
The authority of a court to hear a case
What is venue?
The geographic district in which a legal action is tried and from which the jury is selected.
what is procedural law?
The part of the law that specifies the methods to be used in enforcing substantive law.
what is the supreme law of the land?
U.S. Constitution
what speech is protected by the first amendment?
Verbal communication and any conduct undertaken to communicate an idea (incuding symbolic)
What is trademark infringement?
Whenever a trademark is copied to a substantial degree or used in its entirety by another, intentionally or unintentionally, the trademark has been infringed (used without authorization).
What is statutory law?
Written laws enacted by the legislative branches of the state or federal governments are called statutes. Statutory law declares, commands, or prohibits something.
In making business decisions, Glenda, personnel manager for HVAC Maintenance, Inc., applies her belief that all persons have fundamental rights. This is
the principle of rights
what is durress?
a defense to the enforcement of a contract and a ground for recession of a contract
What is the exclusionary rule?
a law that prohibits the use of illegally obtained evidence in a criminal trial.
Marine Expeditions, Inc., pays Nate's Boats $4,000 to use an oceangoing vessel for a month. For the purposes of the UCC, this is
a lease
Gilbert wants to initiate a suit against Healthways Insurance Company by filing a complaint. The complaint should include
a statement alleging the facts showing the court has jurisdiction.
Eve and other users of Facebook and other social networking sites post trademarked images and copyrighted materials on these sites without permission. This is
a violation of the intellectual property rights of the owners of the images and materials
what are the type of dispute resolutions?
adjudication, expert determination, litigation, mediation, arbitration
What are the four elements of a contract?
agreement, consideration, contractual capacity, legality
Ilene and Jerry enter into a contract under which Ilene agrees to provide groundskeeping services for Jerry's Family Fun Center. Under an antidelegation clause, the contract can prohibit and prevent the transfer of
all duties under the contract.
Justin's posts on Facebook provide information that establishes his intent and what he knew at a particular time, indicating potential liability. For this and other reasons, social media posts are often
all of the choices
Blanche, a salesperson for Custom Restaurant Equipment, Inc., shows Dylan, a buyer for Eat n' Dine Company, display items in Custom's showroom, stating that any purchased equipment will match the display. This statement is
an express warranty
In a suit against Ilene, Jenna obtains an injunction. This is
an order to do or to refrain from doing a particular act
Craft Engineering, Inc., contracts for a sale of technical instruments to Detail Design Company. Before the date on which performance is due, Craft notifies Detail that it will not perform. This is
anticipatory repudiation
Replay Sports Stores and SportsPower Products, Inc., enter into a contract for a sale of trampolines. SportsPower Products is a merchant who deals in goods of the kind sold. Under the UCC, an implied warranty of merchantability arises
automatically
what is the burden of proof in a criminal case?
beyond a reasonable doubt
__________ is the application of moral and ethical principles in a business contract
business ethics
Domino causes a disturbance at El Nino Cafe. He is arrested and charged with disorderly conduct, a misdemeanor. A misdemeanor is a crime punish-able by
imprisonment up to one year.
when a seller is responsible for the goods in a contract only until it leaves his business, this is called a _________ contract
shipment contract
The branch of law dealing with the enforcement of private rights and duties between parties is
civil law
what are the 4 kinds of damages
compensatory, nominal, punitive, consequential
Bubbly Cola features Sparkly Cola's trademark without its owner's permission. Bubbly's use of the mark is actionable provided
consumers are confused
Dana downloads music into her computer's random access memory, or RAM, without authorization. This is a. copyright infringement. b. within Dana's rights as a computer user. c. a basis of liability for the computer maker if it does not act against Dana. d. none of the choices.
copyright infringement
what are the 3 main types of businesses
sole proprietorship, partnership, corporation
Palette Paints, Inc. expends funds and takes steps to ensure that all employees are safe on the job, that all products are safe for consumers, and that the environmental impact of the corporation is minimal. Palette Paints appears to believe in the concept of
corporate social responsibility
Avery files a suit against Beth, alleging that she failed to pay him for two months' labor at her Choice Cheese Factory. Beth denies the charge and claims that Avery breached their contract to produce a certain quantity of cheeses and owes Beth damages for the breach. Beth's claim is
counterclaim
Garrett makes and distributes copies of Here We Go Again, a movie copyrighted by Indie Motion Pictures, Inc. Garrett does this without Indie's permission. He may be liable for
damages, fines, or imprisonment
As a judge, Baxter applies common law rules. These rules develop from
decisions of the courts in legal disputes
In a tweet to Cooper, a reporter for the online Daily Bleat, Evan accuses Financial Services Corporation of cheating on its taxes. If false, making this statement is
defamation
when a seller is responsible for the goods until it reaches the buyers place of business, this is called a ___________ contract
destination contract
Beef Burgers, Inc. contracts to buy five hundred steers from Fattening Feedlots. Before Fattening Feedlots can deliver the steers, there is an outbreak of disease in the feedlot, and all the cattle are quarantined. In this case the perfect tender rule
does not apply
Dumont threatens physical harm to force Eddie to sell his business, Citywide Vending, Inc., to Dumont for a below-market price. This is
duress
Page points a knife at Ray's daughter, threatening to hold her hostage and "cut" her unless Ray takes a certain file from Skelter Supplies Corporation, his employer. Charged with theft, Ray can successfully claim as a defense
duress
Kari and Lillian, who are citizens of Mississippi, are involved in a case related to the adoption of their child. Over this case, Mississippi state courts have
exclusive jurisdiction
What is negligence?
failure to use ordinary or reasonable care
In studying the legal environment of business, Professor Dooley's students also review ethics in a business context. Ethics includes the study of what constitutes
fair or just behavior.
Diego is arrested for a theft committed by someone who stole his identity. A court orders his release, but due to a police error in Diego's paperwork, he is held in jail for a month. The police are most likely liable for
false imprisonment
Ira signs Jill's name, without her authorization, on the back of a check made out to her. this is
forgery
Lipstik, Inc. makes cosmetics. Lipstik intentionally mislabels its packaged products to conceal a defect. Trusting and relying on the mislabeling, Mikayla buys a Lipstik product and suffers an injury. Lipstik is most likely liable for a. product misuse. b. fraud. c. privity. d. puffery.
fraud
BeFriends Corporation uses the trademark of Community Life Inc., a social media site, as a meta tag without Community Life's permission. This may be permissible
if the use is reasonably necessary
what are the 3 kinds of torts?
intentional, negligence, strict liability
What is a felony?
is punishable by imprisonment in a state or federal penitentiary for more than 1 year.
Nyoko signs a covenant not to compete with her employer, Midstates Distribution, Inc. The covenant will be enforced if it
is reasonable with respect to geographic area and duration.
What is common law?
law made by judges through their decisions, not through specific statutes
What is stare decisis?
let the decision stand. Courts have to follow previous decisions made in cases similar in fact.
What is strict liability?
liability that does not depend on actual negligence or intent to harm.
Lorena files a suit against Milton. Before going to trial, the parties, with their attorneys, meet to try to resolve their dispute. A third party suggests or proposes a resolution, which the parties may or may not decide to adopt. This is
mediation
Reno, driving while intoxicated, causes a car accident that results in the death of Santo. Reno is arrested and charged with a felony. A felony is a crime punishable by death or imprisonment for
more than one year
Smitty, driving while intoxicated, causes a car accident that results in the death of Tiffany. Smitty is arrested and charged with a felony. A felony is a crime punishable by death or imprisonment for
more than one year
Bob, research manager for CornAgri Products, Inc., applies utilitarian ethics to determine that an action is morally correct when it produces the greatest good for
most people
What is a violent crime?
murder, rape, robbery, aggravated assault
Grant and Hester enter into a contract for a sale of Hester's Pastoral Valley Orchard. This contract
must be in writing to be enforceable
Street Bikes, Inc., makes and sells a bicycle to Theo. Street Bikes fails to exercise "due care" to make the bicycle safe, however, and Theo is injured as a result. Street Bikes is most likely liable for
negligence
what are the two parts of an agreement?
offer and acceptance
Metro Facilities, Inc., contracts to sell a parking garage to Nouveau Property Company. The contract provides that if Metro does not close the deal by September 15, it must pay Nouveau one-half of the contract price. This provision is not enforceable because it is
penalty clause
who brings the case in a civil action?
plaintiff
what is used to build common law?
precedent
what is the burden of proof in a civil case?
preponderance of the evidence
Greg, a salesperson for Home Improvement Center, tells Irena, "This is the best floor sander I've ever seen." This statement is
puffery
Rough Hewn Lumber Company orally contracts with Joe for the purchase of five acres of Joe's timberland. Joe makes the transfer but Rough Hewn does not pay the price. The lack of a written contract could bar enforcement of this deal. If so, Joe could most likely recover on a theory of
quasi contract
what are the two types of sexual harassment
quid pro quo and hostile work environment
Lexi pays Mobile Edge Electronics $600 and receives a new phone. Under the UCC, this is
sale
Expert Stitching Corporation enters into a contract to sell denim clothing to Fine Fashion Company, which in turn sells a pair of jeans to Grady, a consumer. In contrast to standards that apply to consumers, the UCC imposes on merchants
special business standards
when we identify a car in a contract, we use the VIN. When we identify electronics in a contract, we might use the serial number. Atruck load of oranges or a tanker of milk are identified differently because they are ___________ goods.
special goods
Bert sells his car to Conrad for $5,000 and his bike to Del for $600. Bert sells his vinyl record collection to Elena for $1,000 and his stock in Altogether Now, Inc.—a firm that markets an app for organizing digital music files—to Franz for $4,000. UCC Article 2 covers all of these transactions except the sale of
stock
Much of American law is based on
the English legal system
what is defamation?
the action of damaging the good reputation of someone; slander (verbal) or libel (written)
What is mens rea?
the intention or knowledge of of a crime (mental intention)
Precision Engineering Inc., like other corporations, is subject to laws that are broad in their purpose and their scope. Compliance with these laws is not always sufficient to determine "right" behavior because
the law does not codify all ethical requirements
what is product liability?
the legal liability a manufacturer or trader incurs for producing or selling a faulty product.
What is actus reus?
the physical element of a crime (guilty act)
What is larceny?
theft of personal property
What is embezzlement?
theft or misappropriation of funds placed in one's trust or belonging to one's employer.
Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Bob's Bistros, Inc., but refuses to deliver. Bob's right to obtain substitute goods for those that were due under the contract is the right to obtain
to cover
Herb, a computer programmer for Inventory Control Corporation, is arrested in his employer's parking lot on suspicion of larceny. Herb must be informed of his right to
to remain silent
Chris operates the Devil's Brew chain of coffee stands. "Devil's Brew" is
trade name/mark
the idea for "Price+Profit", an app that businesses can use to track their revenue, profit, and payroll, is protected by
trade secrets law
Beans Coffee & Cocoa Company makes and sells a chocolate-flavored coffee drink under the name "CoCoCafe." Darkroast Java, Inc., later markets a similar tasting drink under the name "KoKoKafe." This is most likely
trademark infringement
Far & Wide Corporation uses the trademark of Google Inc. in a meta tag without Google's permission. This is
trademark infringement
What is copyright infringement?
using works protected by copyright law without permission
In making decisions for Commercial Janitorial & Maintenance Services Inc., Isaiah uses a cost-benefit analysis. This analysis is apart of
utilitarianism
What is trade dress?
visual components that contribute to the overall look of a brand