Business Law Semester 1 Study Guide
The philosopher is best known as a proponent of duty ethics and believed that people owe moral duties that are based on universal rules
Immanuel Kant
Jack was invited to lunch with his supervisor to discuss his annual performance evaluation. As jack was walking to the restaurant, twisted his ankle in a pothole on the street. which party is responsible for covering Jack's medical bills?
Jack's Employer
Which branch or branches of government is/are responsible for creating federal administrative agencies?
Legislative and executive
in order for Andrew to start a business, he had to file articles of organization with the office of the Secretary of State. What type of business organization is Andrew starting
Limited Liability Company (LLC)
Some version of article 2 of the ucc has been adopted in every state except
Louisiana
Judy received a water bill of 300 dollars for the month of august from her landlord. Over the last year her average water bill per month has been $65. During the month of august, Judy did not use more water than usual, so she attempted to discuss it with her landlord. Her landlord did not want to listen to her and told Judy that she needed to pay the bill or she would be evicted from the apartment. Judy was outraged and sought someone to assist her in resolving the dispute over the water bill. Because Judy was so angry with the way her landlord handled the situation, she decided that she did not want to be in the same room as him as the dispute was being worked out. Judy most likely chose which of the following types of alternate dispute resolutions.
Mediation
Testing automobiles for safety before authorizing production is an example of the ___________ theory of social responsibility
Moral minimum
Jamie who is 29 years old, has worked for the same accounting firm for seven years. She is ready for a new challenge and submitted her resume and employment application for a vice president level position at the firm. The human resource director informs Jamie that she is being denied consideration for the position because she is too young for the job. Can Jamie sue for age discrimination? Why or why not?
No, because Jamie would need to be 40 years old to be protected by the Age Discrimination Employment Act
A team of construction workers have joined together to form a union. The team likes and respects their manager Thomas and would like to invite him to join too. According to section 7 of the national Labor Relations Act is it acceptable for Thomas to join the Union?
No, because managers and professional employees may not belong to unions formed by employees
Which of the following is not an element of a contract?
Only one party must give something of value
A ________ is a written promise by one party to pay money to another party
Promissory note
The theory that each person is presumed to have entered into a social contract with everyone else in society was proposed by
Rawl's social justice
All of the following are true about the Uniform Commercial Code (UCC) except
23 states have enacted all or part of the UCC as statutes
There is a house in Davids neighborhood that has been vacant for over a year. The house was built a few years ago but is now owned by the bank because the previous owned were unable to pay the mortgage. David breaks into the house and steals kitchen appliances because he knows he can resell them for cash. On his way out, he lights a match and throws it on the living room carpet. The house goes up flames and burns to the ground. If David is caught by law enforcement for his acts, what crimes would he be charged with ?
Arson and burglary
Which article of the UCC establishes the requirements for negotiable instruments
Article 3
Which article of the UCC establishes the regulations and principles that control procedures for checking account deposits and collections
Article 4
The supreme court adopted the ________ for analyzing cases that were being heard for violation Section 1 of the Sherman Act
Rule of reason standard
the following describes a small corporation that has elected and received favorable tax treatment and is subject to single taxation of its corporate profits
S corporation
The federal water pollution control act enacted in 1948 is known today as the
Clean Water Act
Which constitutional clause has the greatest impact on business?
Commercial clause
According to the commerce clause of the united states constitution, ___________ has the power to regulate commerce with foreign nations.
Congress
The following laws promote fair trade and free flow of truthful information in the marketplace
Consumer protection laws
The effectiveness of a boycott depends on workers liability to do what?
Convince consumers not to purchase company products
___________ holds that people must make a decision about what is ethical based on their own beliefs about what constitutes right and wrong behavior
Ethical relativism
The structure of the U.S government does no include which of the following branches?
Federal branch
Pickweting can be an effective negotiating tool. Under which constitutional amendment are lawful picketers protected?
First
Making sure that cosmetic packages list ingredients used is the role of the
Food and Drug Administration
Which of the following violates the double jeopardy clause of the fifth amendment to the U.S constitution?
Someone was declared not guilty, but after new evidence is found, the case is retired.
Clair is from France and has been working in the United States for the last two years in cancer research. If her work visa expires in a year, what can Clair's employer do to create permanent position for her in the company.
Sponsor Clair for a green card
Which of the following statementsw accurately captures the taxation of sole proprietorship?
Taxes are reported on the sole proprietor's personal income
Which of the following processes does the Equal Employment Opportunity Commission (EEOC) follow to resolve disputes
The EEOC investigates the claim to determine whether the claim as a merit and if it does not, the EEOC attempts to reach and amicable resolution of the dispute for parties involved.
At your new job, the human resources department asks you to bring two forms of identification before you can start working. Which of the following is the best reason for this
The company wants to make sure you are not an illegal immigrant
Which of the following statements is true about arbitration and mediation?
The disagreeing parties are bound to the decision proposed by the arbitrator if they agreed to do sop beforehand
Which of the following statements is not true about the per se rule?
The plaintiff bears the burden of proving the restraint of trade
which of the following statements is not true about entrepreneurs?
Their endeavors start out as a sole proprietorship.
According to the U.S constitution, the president may enter into treaties with foreign governments provided that
Two thirds of the members of the senate consent
The legislative Branch consists of which of the following
U.S Senate and the U.S house of Representatives
which of the following are an example of inferior federal courts
U.S bankruptcy courts
Which of the following statements concerning business law is true
Unethical behavior may be permissible by law
Which of the following is not a type of implied warranty recognized by the UCC
Warranty of age
To form a sole proprietorship,__________ is required
a local business licence
All of the following are factors that would terminate a general partnership except
a partner filed for bankruptcy
a cessation of work by union members in order to obtain economic benefits or correct an unfair labor practice is
a strike
Which of the following individuals is considered a bailee?
a woman who let her brother park his car at her house during a six month trip overseas
Sandy borrows Mike's car for the weekend. The car gets a flat tire, so sandy purchases a new one.. Mike now owns the new tire. This method of acquiring ownership is called
accession
The library orders 50 dozen chocolate chip cookies for an event. Due to a supply issue, The baker can not get chocolate chips, so she makes 50 dozen oatmeal cookies instead. The library is notified about the change. The oatmeal cookies are considered a(n) ________ to the buyer
accommodation
Samuel has been taking care of a plot of land adjacent to his yard for 25 years, unaware it was not already part of his property. The area has been landscaped and a tool shed has been erected on it. At some point, Samuel may be granted possession of the land due to
adverse possession
Which of the following contractual elements concerns an offer and an acceptance of the offer
agreement
The statute of frauds includes which of the following provisions.
all contracts for the sale of goods costing $500 of more must be in writing
Parties to a contract can sometimes transfer their rights under the contract to other parties. This is called
assignment
Jon's coworker loosens the wheel on Jon's bicycle after they have an argument. This causes Jon to get injured. The resulting lawsuit can be categorized under which type of tort?
battery
A large company contracts with Jon to do some technical writing for the company's website. Jon promises to finish the writing by a certain date. This exemplifies which type of contract?
bilateral contract
A disadvantage of ____ is that the losing party will likely have no chance to appeal
binding arbitration
The A to Z packing plant recieved a written citation from the occupational safety and health administration (OSHA) to have a large crack in the floor of the warehouse fixed. OSHA sent a staff member out to the packing plant 60 days after the citation was given to make sure the crack has been fixed. A to Z packing plant had not fixed the crack. Because this is a major violation of OSHA rules and regulations, what is the packing plant subject to.
both civil and criminal penalties
Which of the following sequences of events most accurately portrays a real life scenario?
collective bargaining --> 60 day cooling off period --> picketing --> strike
In collective bargaining, wages and hours are examples of
compulsory subjects
____________ owners can sell their property without permission from other owners; __________ owners need to obtain permission from the other owners prior to selling or subleasing
condominium; cooperative
A major home improvement store sells home appliances but contracts with a plumbing and electrical company to provide installation for customers. This is an example of
delegation
Catherine drops her dog off at a friends home so she can go away for the weekend. Unfortunately, Catherine forgot to tell her friend she was going to do so, and the friend is out of town. which element of bailment was not satisfied?
delivery of possession
According to the Title VII of the Civil Rights Act of 1964, if an employer treats an individual less favorably that others because of that persons religion, _______ has occurred
disparate-treatment discrimination
Under the Federal Unemployment Tax Act, which party pays unemployment taxes?
employer
Under the ________ theory, a person would look to another person or an outside source for ethical rules and guidance.
ethical fundamentalism
Few philosophers argue that _________ is an acceptable moral theory because of the concern that perpetrators of crimes invoking the principles could never be found guilty of acting unethically
ethical relativism
A painter finishes the work he was promised ahead of schedule and is paid for his services. This is an example of a(n) ___________ contract
executed
you received a shipment of a dozen candles and noticed out of the dozen, five had either cracks in the glass votive or they were broken. As the buyer, you have the right to reject the entire shipment or part of the shipment. what are you covered under?
express warranty
Sera's boyfriend broke up with her on Saturday. She locked the door to her apartment because she wanted him to stay in the hope that they could work it out. He could sue her for
false imprisonment
Administrative agencies are created by which governments?
federal and state
A benefactor donates a plot of land to his alma mater to use as a practice field for lacrosse, which he had played as a student there. If the land must be used for that purpose or else the ownership right will be terminated, it is said to be a ______ estate
fee simple defeasible
When a wrongdoer deceives another person out of money or property, it is called
fraud
property that is used freely by its owner for residential and recreational use is called a _______ estate
freehold
Bill and Ted are co-owners of an electricity company. They both have equal rights and receive equal distribution of business profits and losses. Which type of business organization is this an example of?
general partnership
if consent to create a contract has been obtained by duress or fraud, ______ has been violated, and the contract is void.
genuineness of assent
Under the Uniform Commercial Code (UCC) value has not been given if the holder
gives a non-negotiable instrument
In 1987 there was a players strike in the National Football League that affected several weeks of NFL games. For the games that NFL players were on strike, the team owners used which of the following conflict resolution remedies to insure that games were being played
hired replacement workers
Linda is a professional scuba diver and she is preparing a dive off the coast of Alaska. Because she is used to diving off of the coast of Florida, Linda needed to purchase a dry wet suit so she can survive the freezing temperatures of the Pacific ocean. Linda counted on a local dive shop to outfit her with the proper gear. During her dive in Alaska, Linda sustained severe leg cramps due to the cold water. To recover from the leg cramps, she went to three months of physical therapy. The dive shop is responsible for Linda's medical bills because it breached the
implied warranty of fitness.
If an individual takes an instrument believing it was intended as an honest transaction, then he or she will qualify as a holder in due course based on which of the following?
in good faith
Much to the delight of her neighbor Carl, Maria contacts with a tree removal service to cut down a dead tree in her front yard. The tree removal service breaches the contract, and Maria sues them. Since Carl was a(n) ___________ he has no grounds on which to sue the tree removal company himself.
incidental beneficiary
The amount of money that a worker's compensation claimant can recover
is preset as established by statute or regulations
Which of the following is considered a common crime
larceny
which of the following crimes, by definition involves the use of fear or force
larceny
Juvenile court, probate court, and traffic court are examples of
limited jurisdiction trail courts
Which form of business organization has two different types of partners?
limited partnership
Which of the following is not considered real property?
livestock
Permissive subjects include
location of plant facilities
What are the three tools that are available to management in terms of labor management disagreements?
lockout, hiring replacement workers, and injunction
With a promissory note, the party who makes a promise to pay is the _______ of the note, whereas the party to whom the promise to pay is made is the
maker; payee
Traditional view of the social responsibility of business is that business should focus on
maximizing profits to shareholders
When two major airlines decided to combine and form one large airline they had to take into consideration which of the following federal antitrust statutes?
mergers
The theory that states that a corporation's duty is to make profit without causing harm to others is
moral minimum
Peter calls his friend Lily to borrow $500. On the side of a box, peter writes and signs a note stating that he will pay back the $500 as long as Lily allows him to use her car until he gets a job. The instrument is not negotiable because it violates which of the following
no requirement except the payment of money
informal contracts are so named because
no special form is required for their creation
The federal government has divided each state into air quality control regions; those that do not meet air quality standards are then designated
non attainment areas
The business partners in a general partnership have all of the following rights except the right
of return loans and capital regardless of debt to creditors
Which of the following statements would render an instrument not payable at a certain time
payable after June 4, 2011
Breach of Contract, fraud, illegality of contract, and the discharge of an instrument by cancellation are all examples of
personal difense
Barbara needs to bring in a check to hold her spot on the class field trip to Washington D.C. Barbara's mother does not get paid until the end of the month, but told Barbara she can write a check and date it for the 31st. Which of the following types of checks did Barbara's mom write to hold her spot on the field trip?
postdated check
The most common way to acquire personal property is through
purchase
The fourth amendment to the u.s constitution concerns
search and seizure
At your part time job in a famous cheese steak restaurant you are asked to sign an agreement not to compete if you decide to leave your position there, meaning you will not leave and open up a competing cheese steak restaurant. why would a company ask you to sign such an agreement?
so that you do not take any trade secrets like recipes from the company if you leave
The simplest form of business organization is the
sole proprietorship
Helen Harrison creates an instrument containing the words "Pay Jose Sanchez" and her signature. This is a __________ endorsement and creates _________ paper.
special;order
Suppose a company decides to lay off 150 workers to increase share values as a result some interested parties would benefit, while others would suffer. This scenario demonstrates the concerns with the ________ theory of social responsibility
stakeholder interested
What is the term used to describe a check that has been outstanding for more than six months?
stale
The Americans with Disabilities Act is an example of which of the following
statute
Written laws are certain courses of conduct that must be adhered to by covered parties are called
statutes
A catering company was hired to bake a wedding cake with navy blue frosting. The cake supply company was out of navy blue food coloring, so the catering company created a cake with dark purple frosting instead, hoping the bride and groom did not notice the slight color change. This is an example of
substantial performance
A roofing company finishes a job for the miller family and gets paid. A few days later the millers determine that the wrong shingles were used; they had, in fact, ordered a higher quality material than was used. This constitutes
substantial performance
Nadia has agreed to purchase a truck from her brother Paul for $10,000. Nadia has paid Paul the $10,000, but Paul has not transferred the title to Nadia. It has been weeks, and Nadia is frustrated. She gave Paul until the end of the week to transfer the title of the truck to her. If he does not transfer the title, then Nadia has the right to
sue for breach of contract
Under the ______ clause of the U.S constitution, treaties become part of the law of the land.
supremacy
at the time the United States was being settled ______ as a means to acquire personal property was much more prevalent than it is in today's urbanized society
taking possession
A group of individuals attempts to steal a van, not knowing one of the owners is asleep in the back. The owner ends up dying as a result of this crime. The charges for this group of individuals are likely to be higher because of
the felony murder rule.
when a major breach has occurred, the non breaching party is able to do what
the non beaching party may affirm the contract and sue the breaching party to recover damages
Which of the following is not a defense to a Title VII action
the person being in protected class
Which of the following is not a reason that an agency can terminate by operation of law
the principle or agent moving to a different town
For Cindy's position as the school nurse, she is required to keep her CPR and her first aid certifications up to date. She organized a CPR and first aid course at the elementary school where she works. During the course, students are encouraged to practice CPR on dummies. As Cindy was doing her practice chest compressions, she sprained her wrist. Cindy visited the doctor, and he prescribed her physical therapy for her wrist. Which party is responsible for paying Cindy's medical bills?
the school where Cindy works
which of the following is one of the following is one of the purposes of an administrative agency?
to enforce statutes enacted by congress
all of the following are reasons why consumer protection laws were developed except
to save corporations from financial losses
in an attempt to break up a fight between a feuding couple, Gunther gets hit in the jaw and gets taken to the hospital. he could pursue litigation under which of the following acts
transferred intent
The fair labor standards act does not cover which of the following?
unemployment compensation
which of the following is not one of the three categories of torts?
unintentional torts
a sole proprietor has
unlimited personal liability