Business Law Final

Design patents have a duration of ____ years.

14

The "public comment" period for proposed administrative agency rules must be at least__________ days.

30

Which of the following is not illegal? An office football "pool" with a cash entry fee and cash prize A raffle with an entry fee to win a car A "giveaway" to every tenth person who buys meat at a butcher shop A "giveaway" to every tenth person entering a department store

A "giveaway" to every tenth person entering a department store.

Concerning torts and crimes, choose the correct statement:

A crime may also be a tort

Judicial Triage is all of the following except: *a court management tool *results in some cases being expedited *results in some cases being postponed *a directed verdict

A directed verdict

In which of the following cases is a contract between A and B binding? ~A makes a mistake of material fact, and the mistake is unknown by B ~A and B make the same mistake of material fact ~A recklessly but honestly misrepresents a material fact ~A innocently misrepresents a material fact.

A makes a mistake of material fact, and the mistake is unknown by B

A discharge by agreement can occur in any of the following situations except:A discharge by agreement can occur in any of the following situations except:​ A. ​death of the obligor. B. ​accord and satisfaction. C. ​release D. ​mutual rescision.

A. ​death of the obligor.

An administrative agency can be created to perform:

All three of the functions of the government

Comparative Negligence:

Allows a comparison of negligence between plaintiff and defendant

Which of the following is not an exclusive right of the holder of a copyright? A. To prepare works that are derived from the original work. B. To obtain a court order enjoining use of the original work by another. C. To distribute copies of recordings of the original work. D. To display or perform the original work in public.

B. To obtain a court order enjoining use of the original work by another.

​When a person has performed services under an oral contract that cannot be enforced because of the statute of frauds, such person: ​A. can recover the agreed payment for the services because a refusal to make payment would be a breach of the contract. B. can recover the reasonable value of the services because there is a quasi-contractual duty to pay for the benefit received from such services. C. ​cannot recover the value of the services because they were rendered under a unilateral mistake of law. D. can have the party receiving the services arrested for obtaining property by false pretenses.

B. can recover the reasonable value of the services because there is a quasi-contractual duty to pay for the benefit received from such services.

Proposed administrative regulations must be:

Both printed in the federal register and published in the trade journals of trades that will be affected.

​In the absence of an agreement to the contrary, when an employee is discharged, regardless of the reason, the employer must: ______. A. provide COBRA compensation. B. make a two-week severance payment. C. pay wages to the expiration of the last pay period. D. create a severance package based on market conditions.

C. pay wages to the expiration of the last pay period.

The Digital Millennium Copyright Act : A. made notice of copyrights no longer mandatory. B. changed the life of a copyright. C. was enacted to curb the pirating of software and other pirated works. D. provided a safe harbor for copyright infringers.

C. was enacted to curb the pirating of software and other pirated works

​A seniority system is unlawful if: A. ​workers with longer years of service are laid off last. B. ​a union did not agree to the policy. C. ​it results from an intention to discriminate. D. ​workers with longer years of service are predominantly from one race.

C. ​it results from an intention to discriminate.

Crimes are classified as:

Common law or statutory according to their origin.

In determining whether limited use of copyrighted material may be permitted as "fair use," courts will consider: A. the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes. B. the nature of the copyrighted work. C. the amount and substantiality of the portion used in relation to the copyrighted work as a whole. D. all of these.

D. all of these

​Unemployment compensation benefits will most likely be denied to all of the following groups of people except: ______. A. an employee who steals company property and is fired. B. full-time students. C. an employee who quits a job without cause. D. an employee who is injured on the job.

D. an employee who is injured on the job.

Workers' compensation statutes do not typically provide for: ______. A. immediate medical benefits. B. prompt periodic wage replacement. C. a death benefit. D. punitive damages.

D. punitive damages.

The America Invents Act: A. amended federal copyright law. B. replaced the patent "first to file system" with a "first to invent" system. C. speeds up the application process for energy conservation inventions for a $4,800 fee. D. replaced the patent "first to invent system" with a "first to file" system.

D. replaced the patent "first to invent system" with a "first to file" system.

​Title VII protects members of which racial grouping(s)? A. ​black only B. ​black, Native American, and Asian-Pacific C. ​white only D. ​all racial groupings

D. ​all racial groupings

​Under the ______ theory, it is not a defense for an employer to demonstrate that it did not intend to discriminate. A. ​Title VII B. ​disparate treatment. C. ​vicarious liability D. ​disparate impact

D. ​disparate impact

The best way to distribute and sell copyrighted computer programs is using: A. copyright laws. B. ​patent laws. C. ​trade secret laws. D. ​restrictive licensing.

D. ​restrictive licensing

​Under which circumstance will an employee not be entitled to Workers' Compensation benefits for an on-the-job injury? A. an injury that is the result of an employee's own negligence B. an injury that is the result of an employee's own gross negligence C.an injury that is caused by a fellow employee D.an injury that is the result of an employee's intoxication

D.an injury that is the result of an employee's intoxication

An agreement that consists of two or more parts and calls for corresponding performance of each part by the parties is called a:

Divisible contract

If a court issues an injunction, the court would be ordering an:

Equitable remedy

A "best efforts" clause is always deemed too indefinite to be enforceable.

False

A party may ask for legal, but not equitable, remedies in a single court.

False

A party who speaks with a reckless disregard for the truth not knowing of the falsity of his or her words cannot be liable for fraud.

False

A revocation of an offer is ordinarily effective after the offer has been accepted.

False

An en banc decision within a US Court of Appeal only requires a panel of three judges.

False

Courts have increasingly set aside arbitration clauses involving small businesses or consumers.

False

Differences among businesses preclude the development of any universal categories of ethical behavior.

False

Generally, when a person of legal age makes a contract with a minor, the contract is voidable by either party.

False

Georgia is at a crowded carnival. As she is trying to get to a corn dog stand, someone in the crowd accidentally pushes her into another carnival-goer, causing that carnival-goer to get a black eye. Georgia is guilty of the tort of assault.

False

Government restrictions on the form, content, and placement of commercial speech on are rarely found constitutional.

False

In a quasi contract the court seeks to enforce the intentions of the parties contained in the agreement.

False

One of the characteristics of the "living constitution" is limited government.

False

Procedural law creates legal rights and duties.

False

Regulations properly adopted by agencies are important, but they do not have the full force of law, as do statutes.

False

Substantive unconscionability has to do with matters of freedom of asset.

False

The constitution prohibits the government from treating different people differently.

False

The defendant in a civil case is the party who is suing.

False

The greatest risk to purchasing online is providing your credit card information to the seller.

False

The law requires parties to be fair and reasonable in the making of a contract.

False

The private life of an ordinary citizen is subject to strict scrutiny

False

There is no evidence that commitment to ethical values is linked with fanatical performance of business organizations.

False

When a minor avoids contracts, the minor always must return the other contracting parties to their original financial positions.

False

When contributory negligence is proven, damages awarded are reduced based on the plaintiffs degree of fault but the plaintiff can still recover some damages.

False

​An assignment is a transfer of duties, and a delegation is a transfer of rights.

False

​Parol evidence is not admissible to show fraud, duress or mistake.

False

The right to be secure against unreasonable searches and seizures conducted by the police is guaranteed by the fifth amendment of the US Constitution.

False; because it's the fourth amendment.

The law that prohibit mislabeling of food, speeding, and sale of alcohol to minors exist primarily:

For protection of public health, safety, and morals.

A motion for a directed verdict is appropriate:

Immediately after the presentation of all evidence at trial.

The right of privacy applies to protect you from unreasonable searches in all of the following scenarios except:

In the commission of crime

An agreement not to compete is enforceable:

In the sale of business

The Fifth Amendment to the US Constitution's protection against self incrimination applies to:

Individuals only

An____________________is a negotiated disposition of a matter before an administrative agency, generally without public sanctions.

Informal settlement

public policy

Is protection from that which violates any established interest of society.

The failure to have a license will not render agreements void if the license:

Is readily obtainable by anyone who offers payment of a required fee.

Economic Espionage Act (EEA)

Makes it a crime to transfer proprietary files, documents, and information from a computer to an unauthorized person

A_________ is a legal principle expressed for the first time in court decision.

Precedent

The due process clause:

Provides a guarantee of protection against loss of rights or property without the chance to be heard

Forgery includes:

Signing another person'd name to a check with the intent to defraud.

_____________law creates, defines, and regulates rights and liabilities.

Substantive

Liz agrees to cook twenty dinners for Brian, and in exchange, Brian will repair all of the plumbing in Liz's house. Liz and Brian's "deal" has:

Sufficient consideration, because Liz has promised something of value.

Failure to give___________________ means that a defendant's statements or confession cannot be used as evidence against that individual.

The Miranda warnings

​ V3 was a successful singing group that contracted to perform at the "Metalsubstance" rock concert. V3 was aware that the promoter would sustain a substantial loss if the group failed to perform. The members of the group were stricken with a virus that confined them to their beds. The promoter sued for breach of contract. What is the probable result?

The contract was discharged by impossibility of performance

What doesn't refer to an element of fraud?

The defendant desired to obtain a financial benefit

What is not protected under the privileges and immunities clause?

The right to go to another state and vote in local elections

Original jurisdiction courts are generally_________________.

Trial courts

A contract for the sale of goods with a price of $500 or more requires written proof to be enforceable

True

A judge rules on the admissibility of evidence presented in the trial.

True

A negotiable instrument may be partly printed and partly typewritten.

True

A peremptory challenge to a prospective juror generally can be exercised without giving a reason.

True

A person entitled to receive money may generally assign that right to another person.

True

A strong president is one of the characteristics of a "living Constitution".

True

A summary jury trial is NOT a mock trial before a judge.

True

A tort is an interference with someone's person or property.

True

An accumulation of complaints from employees, customers, or investors can lead to imposition of restrictive new regulations and laws.

True

An agreement is illegal when either its formation or performance is a crime or a tort, or it is contrary to public policy.

True

An agreement that contemplates the performance of an act prohibited by law is usually void.

True

An appellate court determines whether there has been reversible error.

True

An executory contract is an agreement by which something remains to be done by one or both parties

True

An implied contract is one in which the agreement is shown not by words, written or spoken, but by the acts and conduct of the parties

True

Consideration is what a promisor demands and receives as the price for a promise.

True

Corporations are not entitled to fifth amendment protection.

True

Garnishment is a method for satisfying a judgment against a defendant.

True

If either the offeror or offeree dies or becomes mentally incompetent before the offer is accepted, the offer is automatically terminated.

True

If the main purpose of a promise is to pay the debt of another and benefit the promisor, the statute of frauds is not applicable, and the oral promise to pay the debt is binding.

True

In numerous states, former employers are protected by a qualified privilege for factual comments made about former employees who are applying for jobs at other companies.

True

Libel is the printed equivalent of the spoken form of defamation known as slander.

True

Moral relativists solve ethical dilemmas according to time and place.

True

Moral standards based on positive law may allow businesses to conduct themselves unfairly so long as their actions are not illegal.

True

One of our most important rights is the right of privacy.

True

One of the modern trends in punishing business crimes involves barring executives and officers from working in their fields if they have a criminal conviction.

True

Ordinarily, a court will not consider whether a contract is fair or unfair.

True

Ordinarily, a party to a contract has no duty to volunteer information to the other party.

True

Past benefits already received by a promisor cannot be consideration for a later promise.

True

The Dodd-Frank Act offers no whistleblower protection to employees who would seek to provide information to the SEC or Congress.

True

The US Constitution provides that we have a right to be free from unreasonable intrusions by others.

True

The administrative procedure act is a federal law that establishes the operating rules for administrative agencies.

True

The common law are court-enforced unwritten principles originally based on the usages and customs of the community.

True

The federal court system consists of three levels.

True

The fifth and fourteenth amendments prohibit the national and state governments from depriving any person of property without due process of law.

True

The front-page-of-the-newspaper test helps managers view ethical decisions in terms of public disclosure of the proposed conduct.

True

The group of time-honored rules that courts have used to solve similar problems for decades is called stare decisis.

True

To make an offer, the offeror must appear to intend to create a binding obligation.

True

Trust is a fundamental basis of the capitalist system that is central to the expectations of investors, customers, and other firm stakeholders.

True

Under the Sunshine Act of 1976, called the open meeting law, the federal government requires most meetings of major administrative agencies to be open to the public.

True

​A sale or return is a completed sale with an option for the buyer to return the goods.

True

​A waiver of a breach may be either express or implied

True

An apparently voluntary agreement may in fact not be voluntary if:

Undue influence, physical duress, and economic duress is present.

The Uniform Partnership Act is a good example of a_____________________.

Uniform state law

Garnishment applies to the judgment debtor's:

Wages

Professionals have a duty to perform their jobs at the level of:

a reasonable professional in the same business.

Under the Uniform Commercial Code (UCC), a firm offer applies to:

a written, signed offer by a merchant to buy or sell goods.

What damages are recoverable in a case of promissory estoppel?

an amount necessary to restore the promisee to the position he or she would have been in had the promisee not relied on the promise

Alberto enters into a contract with a contractor to build a parking garage in Gotham City. Stop-N-Go will greatly benefit from this contract since Alberto's parking garage is adjacent to Stop-n-Go. In this scenario Stop-n-Go is:​

an incidental beneficiary.

Examples of illusory promises include:

apparent promises.

The right of privacy consists of:

both the right to be secure against unreasonable searches by the government and the right to protection against intrusions by others.

​The damages that are typically recoverable when a contract has been breached and one party has suffered loss are called:

compensatory damages.

​If an owner has acted in a way that misleads others, the owner may be __________from asserting ownership.

estopped

A defined contribution plan is an employer commitment to make specified future payments to participants upon retirement

false

Although processes and machines are eligible for patent protection, manufactures and compositions of matter are not.

false

An agreement by an employee to refrain from disclosing trade secrets is generally not binding.

false

An employee has a "shop right" to use an employer's invention without consideration if the invention was made during working hours with the employer's material and equipment.

false

An employment contract always will state a time or duration for the contract's applicability.

false

Deductions from wages for cash or merchandise shortages are legal even if they reduce an employee's wages below the minimum wage.

false

Impossibility of performance applies when the debtor does not have sufficient funds to pay a debt.

false

In certain cases, real property can constitute a bailment.

false

In order for a work to be copyrightable, it must possess a significant amount of creativity.

false

Joint tenancy and tenancy in common both feature the right of survivorship

false

Once approved by the U.S. Patent and Trademark Office, a patent is presumed valid after a public comment period of 90 days.

false

Only written words that show an intention to transfer or assign will be given the effect of an assignment.

false

Stealing trade secrets can result in fines, but not imprisonment.

false

The Sony Bono Copyright Extension Act of 1998 extended copyright protection to the life of the author plus 50 years.

false

The beneficiary of a life insurance policy is not subject to any policy restrictions that had been agreed to between the insured and the insurance company.​

false

Through incorporation by deference, a contract can consist of both the original document and the detailed statement that is incorporated in it.

false

Trademarks and service marks are recorded with the Register of Copyrights.

false

Under the statute of frauds, an oral contract must be completed within one year after performance begins.

false

Vesting refers to the ability of an employer to reclaim all of the funds it may have paid into a former employee's retirement fund upon that employee's decision to resign.

false

When a building contractor has substantially performed a contract to construct a building, the contractor is entitled to recover the full contract price

false

​ If a municipality contracts with a contractor to pave a street, the homeowners on that street are third-party beneficiaries of the contract

false

​A men's clothing store policy of hiring males to do measurements for suit alterations is not an example of a BFOQ

false

​A men's clothing store policy of hiring males to do measurements for suit alterations is not an example of a BFOQ.

false

​A promise to pay an attorney a fee owed by a third person can be enforced without a writing.

false

​Consequential damages may not be recovered, even if they were within the contemplation of the parties at the time of contracting.

false

​Future goods can always be identified before they are manufactured

false

​In an FOB place of shipment contract the seller's risk of loss for goods under an that are damaged in transit, ends when they are

false

​Only parties who actually signed a contract may sue on it.

false

​Title VII requires equal pay for men and women.

false

If no termination date is specified for an offer, the offer will remain open:

for a reasonable period of time

​When ambiguous language in an instrument exists:

handwriting supersedes typewritten words.​

An assignment of royalties to a song:​

is a transfer of rights.

One of the motions that can be made after a verdict has been entered is a motion for a:

judgment notwithstanding the verdict

The rule that doing or promising to do what one is already legally bound to do is not consideration applies to a part payment made in satisfaction of a(n) __________ debt.

liquidated

The party who writes or creates a promissory note is called the:

maker

If the parties to a contract agree to undo the agreement and return any consideration involved, the contract is discharged by:​

mutual rescission.

​Most courts hold that when a customer takes an item from the shelf in a self-service store, there is:

no sale

When there is no consideration for a promise, agreement is:

not binding

The substitution of an old contract for a new one that replaces an obligation or a party for another is a:​

novation

Courts will consider the adequacy of the consideration when:

one party claims to have been defrauded

A right can exist

only if there is a corresponding duty

​A person becomes a(n) __________ at the moment of taking possession of abandoned personal property

owner

Concerning administrative investigations:

papers and records generally may be subpoenaed by an agency

The type of patent that may be granted to developers of plant reproduction methods is called a:

plant patent

Law consists of:

principles that govern conduct

A counteroffer is a:

rejection of the original offer

A contract is interpreted to give effect to:

the intent of the parties

​When ________ of the promisor's promise to pay the debt of another is to benefit the promisor, the statute of frauds is not applicable, and the oral promise to pay the debt is binding.

the main purpose

​The defense of noncompliance may not be raised by:

the parties to the oral contract.

The plaintiff in a quasi-contractual action can recover:

the reasonable value of the benefit conferred upon the defendant

​If an express warranty is breached:

the warrantor is always liable.

If instrument is negotiable, it can be:​

transferred by negotiation.​

A disclaimer of warranties made in the manner specified by the Uniform Commercial Code is not unconscionable.

true

A valid tender of payment consists of an unconditional offer of the exact amount due on the date when due.

true

An assignment, if otherwise valid, takes effect the moment it is made.​

true

An express warranty is a statement of fact about the product that becomes part of the basis of the bargain.​

true

An ordinary gift made between two living persons is called an inter vivos gift

true

Bruce is a donee beneficiary to a life insurance contract if he is listed as the beneficiary.

true

Commercial paper facilitates the transfer of funds and payment.

true

If there is a written contract, a disclaimer of the implied warranty of merchantability must be conspicuous.

true

In most bilateral contracts, the performances of the parties are concurrent conditions.​

true

Ordinarily, a seller's opinion about the good(s) cannot be treated as a warranty.​

true

Protection for trade dress is available under the Lanham Act.

true

The NLRA prohibits discrimination against employees for engaging in union activities even if they are warned of the possible consequences of their union activities.

true

The federal Consumer Credit Protection Act gives the debtor the right to rescind a credit transaction within three (3) business days when the transaction would impose a lien on the debtor's home.​

true

The parol evidence rule is based on the theory that any oral agreement was abandoned when the contact was written.

true

Trade dress refers to the packaging look and overall image of a product.

true

Under the UCC, an assignment of all the assignor's rights under a contract generally is held to be both an assignment of rights and a delegation of duties.

true

Under the common law, an employer is under a duty to furnish an employee with a sufficient number of competent fellow employees for the work involved.

true

Upon the death of a joint tenancy with a right of survivorship, that deceased joint tenant's share passes to the remaining tenants equally.

true

​A catalog illustration can become the basis of an express warranty.

true

​A disparate impact exists when the employment practice in question is not shown by the employer to be job related and consistent with business necessity.

true

​A plaintiff in a Title VII lawsuit must belong to a protected class.

true

​A reservation of rights is an assertion by a party to a contract that even though a tendered performance is accepted, the right to damages for the nonconformity to the contract is reserved

true

​Commercial paper are transferable, written, signed promises to pay a specified sum of money.

true

​If a buyer purchases goods on approval, the buyer's creditors cannot reach such goods until there is an approval.

true

​If an instrument is nonnegotiable, the rights of the parties are governed by the general principles of contract law.

true

​In a non-shipment contract involving a merchant-seller, risk of loss passes to the buyer when he actually receives the goods from the merchant.

true

​In order for an employer to be vicariously liable for sexual harassment, a tangible employment action by the supervisor must have occurred.

true

​Title VII applies to the hiring process and to discipline, discharge, promotion, and benefits.

true

​Unless justified by business necessity, physical standards such as height requirements that tend to exclude people of certain national origins violate Title VII.

true

​Women who are unable to work as a result of pregnancy must be provided the same benefits as all other workers.

true

​ A landlord who continuously accepts late rental payments without collecting the late fee provided in the lease:

waives the late fee.

​The parol evidence rule does not apply in which of the following scenarios? A.contradict a complete written contract. B. ​prove the modification or termination of a contract. C. ​replace the statute of frauds. D.​create a contract

​B. prove the modification or termination of a contract.

​When an insurance policy is ambiguous, the policy is interpreted:

​against the insurer.

​Failure to mitigate damages limits recovery to:

​damages that would have been sustained had the plaintiff mitigated the damages where it was possible to do so.

​To establish a gift, the party claiming to be the donee must prove:

​intent and delivery.

​Warren brought his television in for repairs. After Warren left the store, gunmen came in to rob the proprietor. As they ran out, Warren's television was knocked over and destroyed. Warren demanded that the proprietor of the store compensate him for the fair market value of the television. The bailee

​is not liable, since the damage was caused by the criminal act of a third party.

​Repeated breaches and waivers are generally interpreted to indicate:

​modification of contract.

Under the concept of ______, only the original parties to a sales contract could sue each other.​

​privity of contract.

Tom established a bank account for his daughter Mary under the Uniform Gifts to Minors Act. Tom named himself the custodian. Later, Tom had a serious disagreement with Mary and ordered the bank to transfer the money in that account to a similar account maintained in the same bank for Tom's son Ed. The bank must:

​refuse Tom's order, because this would clearly not be for the benefit of Mary.

​The statute of frauds:

​requires that a contract for the sale of land be evidenced by a writing.

​An employment contract of indefinite duration is: ______.

​terminable at will by the employer.

​An oral understanding is not binding if:

​the parties intended to formalize their understanding with a written agreement.

​The defense of noncompliance may not be raised by

​the parties to the oral contract

​At every sale, the seller makes an implied warranty that:

​the seller's title is good.