business law texas tech final

Which of the following is an example of a common carrier?

A publicly licensed shipping company

Administrative agencies create more rules than Congress and the courts combined.

Administrative agencies create more rules than Congress and the courts combined.

Which of the following types of agreements is not a type of agreement that is generally illegal in many states?

Agreements for the sale of used products

For something to constitute an inter vivos gift, it must include which of the following?

All of these Answers: Acceptance Delivery Donative intent

Which type of agency is generally defined as any body created by the legislative branch to carry out specific duties?

An administrative agency is generally defined as any body created by the legislative branch (e.g., Congress, a state legislature, or a city council) to carry out specific duties

After a football game, Tyler and Austin want to enter into a contract together. Tyler is completely sober, but he knows Austin is very intoxicated and is so impaired that he is unable to understand the terms of the contract. If they enter into a contract, the contract would be ________

voidable

John agrees to lease a commercial property until the time when (and if) he is offered a job by Apple Computers. What kind of condition is this?

A condition subsequent

Which of the following terms is not a condition required in promissory estoppel?

I. One party makes a promise knowing the other party will rely on it. II. The other party does rely on the promise. III. The only way to avoid injustice is to enforce the promise All of these are required

Billy, a witness to a motor vehicle accident, is gravely ill with cancer. Pat, who was injured in the accident, would like to preserve his testimony for trial in case he dies before the trial date. What should Pat do?

Pat should preserve Billy's evidence by taking his deposition

Which of the following is not an advantage of a sole proprietorship?

Because the sole proprietorship is not considered a separate legal entity, the owner can be personally sued

For a court to enforce a promise, who must offer consideration?

Both parties

A corporation is considered alien in states in which it conducts business but is not incorporated.

False

A corporation must be incorporated in the state in which it has its principal place of business.

False

An easement is a revocable right to use some part of another's land for a specific purpose without taking anything from it.

False

Closely held corporations generally offer stock for sale to the general public.

False

Lost property and mislaid property are the same legal theories.

False

Most corporations are nonprofit corporations.

False

Normally, employees who deal with third parties are not deemed to be agents

False

Ownership of real property includes the airspace above the land but not the mineral rights below the land.

False

The concept of at-will employment is a relatively new concept, created in the 1950's

False

There is only one correct answer for each ethical dilemma.

False

Which of the following is true regarding the obligation of a minor on disaffirmance?

The obligations of the minor on disaffirmance vary from state to state.

If a contract cannot be performed within one year, the statute of frauds requires that ______________________.

The one-year period begins to run the day after the contract is created, not when the contract is scheduled to begin; and the statute is inapplicable if there is a possibility of completing a contract within one year. Also, contracts whose performance, based on the terms of the contract, could not possibly occur within one year must be in writing; but contracts for lifetime employment do not have to be in writing in order to be enforceable.

It is usually more difficult to prove disparate impact discrimination in employment under Title VII than disparate treatment

True

Real property includes land and everything permanently attached to it.

True

State laws may give employees more, but not less protection than federal laws.

True

An offeror can revoke the offer at any time.

can revoke it at any time,

A ______ is a written document, created by a principal, expressing his or her wishes for an agent's authority not to be affected by the principal's subsequent incapacity

durable power of attorney

Suppose Markus offers to sell Zara his surfboard for $200. Zara responds, "I'll look at it on the weekend, and if I like it, I'll pay you." At this point, Zara has not committed to doing anything. The law considers this a(n) ____________

illusory promise

When the courts deem a contract integrated, parol evidence is generally __________

inadmissible

Historically, which of the following were considered people with limited or no capacity?

included married women, minors, and insane persons.

The mail-box rule is not applicable when there is ________________

instantaneous communication

Joint and several liability means that partners must be sued jointly.

joint and several liability means that a third party can choose to sue the partners separately or all partners jointly in one action

Congress created federal administrative agencies through passage of what type of legislation?

Enabling

Which of the following are estates that do not include the right to possess the property?

Estates that do not include the right to possess the property include easements, profits, and licenses.

Suppose a 17-year-old, Kendall, enters into an agreement to purchase a Harley Davidson from an ad she saw in the paper. She will pay $1,000/month until the bike is paid off. After making the third payment, Kendall turns 18 and decides to move out of state. She e-mails the seller of the motorcycle and tells him not to worry because even though she is moving, she still intends to make her monthly payments to purchase the bike. The above scenario is an example of what legal concept?

Express ratification

How many circuits does the U.S. Courts of Appeal have?

he United States has 12 circuits, including a circuit for the District of Columbia.

For purposes of diversity-of-citizenship, where does a corporation reside?

A business may reside in two states: the state of its incorporation and the state of its principal place of business.

A defendant uses a(n) ______ when her or his answer admits that the facts contained in the complaint are accurate but also includes additional facts that justify the defendant's actions and provide a legally sound reason to deny relief to the plaintiff.

A defendant uses an affirmative defense when his or her answer admits that the facts contained in the complaint are accurate but also includes additional facts that justify the defendant's actions and provide a legally sound reason to deny relief to the plaintiff.

The most frequently awarded damages are compensatory damages.

true

Two forms of sexual harassment are quid pro quo and creation of a hostile work environment.

true

Under employment-at-will, an employee may quit at any time.

true

Under ordinary circumstances, a party's duty to perform the promise agreed to in a contract is absolute.

true

A(n) ______ clause is a clause parties include in a written agreement within the statute of frauds that states that the written agreement accurately reflects the final, complete version of the agreement.

A merger clause

Which of the following is, in effect, not a contract at all?

A void contract is, in effect, not a contract at all.

Which class is protected under the Age Discrimination in Employment Act (ADEA)?

Ages 40 and up

The purpose of the ________________ is to prevent employers from discriminating against employees and applicants with disabilities.

Americans with Disabilities Act

An S corporation has the tax status of a partnership.

An S corporation has the tax status of a partnership.

What is the name given to a business incorporated in another country?

An alien corporation is a business incorporated in another country.

Which of the following is an element of a legally binding contract?

Capacity is the third element of a legally binding contract.

Which of the following is the legal process by which a transfer of property is made by a governmental entity against the protest of the property owner pursuant to the takings clause of the Fifth Amendment?

Condemnation is the legal process by which a transfer of property is made against the protest of the property owner pursuant to the takings clause of the Fifth Amendment.

A court may prevent the offeror from revoking his offer when which of the following occurs?

Detrimental reliance

Which of the following occurs when a minor's parents or legal guardians give up their right to exercise legal control over the minor, typically when the minor moves out of the parents' house and begins supporting him or herself?

Emancipation

When a landlord physically prevents a tenant from entering the leased premises, this is known as _________

If the landlord prevents the tenant from entering the premises or part of the premises, it is an actual eviction (full or partial)

Which of the following describes conditions that are inferred from the nature and language of the contract?

Implied conditions

In a _____ contract, the offeror wants a performance to form the contract.

In a unilateral contract,

Two people enter into a contract under which one of them promises to pay the other $100,000 for killing his business partner. Under which element of a contract is this contract not enforceable?

Legal object

Which of the following is property that the true owner has unknowingly or accidentally dropped or left somewhere?

Lost property is property that the true owner has unknowingly or accidentally dropped or left somewhere.

Which of the following is property that the true owner has intentionally placed somewhere but has forgotten its location?

Mislaid property differs from lost property in that the owner has intentionally placed the property somewhere but has forgotten its location.

Donna is an accountant and decides to do her friend Mike a favor by filing his taxes for free. Mike is very thankful and tells Donna "I will pay you $500 for being so kind and generous!" Mike fails to keep his promise and does not pay Donna the $500. Donna then brings an action to have the promise enforced. Will the court hold that a contract exists?

No, past consideration is no consideration at all

Billy knows that he can bring his case against Bob in a state court in Tennessee. He is unsure, however, of which county in which to proceed. Which of the following addresses the proper county?

Once a case is in the proper court system, venue determines which trial court in the system will hear the case

Suppose you are a donee beneficiary, if you have problems with the contract, whom can you sue?

Only the person who was supposed to perform for you

Which of the following is not a valid reason to fire an employee under the employment-at-will doctrine?

Race

What are the two basic types of property?

The two basic types of property are real and personal

There is a formal court process that must occur for a minor to disaffirm a contract.

There are no formalities required for a minor to disaffirm a contract.

There are two types of administrative agencies, executive and independent.

There are three types of administrative agencies: executive, independent, and hybrid

Which of the following are tools of discovery?

Three common discovery tools are interrogatories, requests to produce documents, and depositions

Values are positive abstractions that capture one's sense of what is good and desirable.

True

Which of the following is an exception to the preexisting duty rule?

Unforeseen circumstances

Joan is the landlord of a commercial property and she has four tenants in the property. She decides to sell the property to another landowner in the area. In this situation _________

While the landlord can transfer ownership of the property to someone else, existing leases remain legally binding

Which of the following statements is false?

With intended beneficiaries, contracting parties did not intend to benefit the third party with their contract

The question of whether a worker is an employee or an independent contractor has important implications in which of the following areas?

Workers' compensation, workplace safety, and unemployment statutes

Usury occurs when ________________

a party gives a loan at an interest rate above the legal maximum

The statute of frauds imposes on parties the need to carefully consider the terms, agree to them, write them down, and ___________.

and sign the agreement

All contracts can be categorized as either _____ or _____ contracts.

bilateral or unilateral.

Under _______________________ an employee may be fired for no reason.

employment-at-will

Which of the following is true if a contract is disaffirmed on the basis of intoxication?

f the contract is disaffirmed on the basis of intoxication, each party to the contract must return the other to the condition she or he was in at the time the contract was entered into.

A ratified contract is still voidable.

false

All exculpatory clauses are illegal as a matter of law.

false

An anticipatory repudiation must be in writing to be enforceable.

false

Employees are protected in the workplace by federal laws only.

false

In contract law, a(n) _____________ is an erroneous belief about the facts of the contract at the time the contract is concluded

mistake of fact

An error on the part of both parties to an agreement is a(n) _____ mistake.

mutual mistake

A party's contractual obligations are terminated through _______________.

performance, the happening of a condition or its failure to occur, material breach by one or both parties, agreement of the parties, or operation of law.

If the parties of a contract put a new agreement in place of the original agreement it is called a(n)

substituted contract.

Under the Americans with Disabilities Act, employers must make reasonable accommodations to known physical or mental disabilities unless the necessary accommodations would impose an undue burden on the employer's business.

true

A _____ contract is one that contains all the legal elements of a contract.

valid contract

The Fair Labor Standards Act mandates that employees who are not excluded who work more than ______ hours in a week be paid no less than one and one half times their regular wage for all the hours beyond ______ that they work during a given week.

40; 40

A business in which one person is in control of the management and profits is a partnership.

A business in which one person is in control of the management and profits is a sole proprietorship

A promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty is known as a(n) _____.

A contract, according to the Restatement (Second) of Contracts,

Shaky Bicycles. Rhonda, an incorporator who filed the articles of incorporation for ABC Corporation, a corporation set up to sell bicycles, listed the correct town and street but incorrectly put the wrong street number in the document. Helen, a manufacturer of bicycle parts, had sold a number of parts to ABC Corporation. Unfortunately, the corporation was not making any profit, and Helen was not paid in a timely manner. Rhonda told her that the corporation was not liable because it was not validly formed due to the address mistake. Bernice, another creditor of ABC Corporation, also claimed that a shareholder of Shaky Bicycles, Slick, was personally liable to her. Bernice alleged that Slick committed fraud against her when he told her that ABC Corporation was making large amounts of money, that if she would only loan $50,000 to the corporation he would marry her, and that the corporation would make so much money that she would be wealthy in six months. She loaned the funds, but the corporation has been unable to repay her. Slick told her that he is sorry, but that her only avenue of recovery is through the corporation. Which of the following would a court likely rule regarding the status of ABC Corporation as a corporation?

A de jure corporation is one which has met the substantial elements of the incorporation process.

Which of the following represents a valid accord and satisfaction?

A dispute over an unliquidated debt may be settled for less than the full amount if the parties enter into an accord and satisfaction.

Easement Dispute. Sally buys a house from Bob that borders on a lake. Her deed gives her the most complete estate a person may have. She is in her bathing suit sunning one day when her neighbor, Fred cuts through her yard. Sally tells him not to do that anymore. Fred informs her that he had previously purchased and properly recorded a right to cut across her yard to get lake access. Sally asks you what she should do to try to get rid of Fred because she doesn't like him cutting through her yard when she is sunning. What type of estate did Sally purchase from Bob?

A fee simple absolute is the most complete estate a person may have.

A limited partnership agreement in which the partners share management responsibilities equally but some partners are limited in regards to the amount of profit distribution to which they are entitled.

A limited partnership (LP) is an agreement between at least one general partner and at least one limited partner with the limited partner or partners having no part in the management of the company.

A limited partnership and a limited liability partnership refer to the same type of business organization.

A limited partnership is a partnership consisting of at least one general partner and at least one limited partner in which the general partners assume all liability for the partnership's debts and the limited partners assume no liability beyond their originally invested capital whereas a limited liability partnership is a partnership in which all the partners assume liability for any partner's professional malpractice to the extent of the partnership's assets.

Tutoring Concerns. Wally and Sally want to go into business together and plan on offering a tutoring service to high school and college students. Wally proposes that they share control of the business and split profits equally and not bother with a written agreement. Sally, however, is concerned about being able to pay their debts since they will have to rent tutoring space and purchase computers and supplies. She is also concerned about parents and students who may sue if the students' test scores do not improve. She tells Wally that she just bought a new boat and car, and that she does not want her assets to be in jeopardy. She tells Wally that they should form a corporation to shield their personal assets. Wally, however, says their personal assets are not in danger with his proposal because they are a business and that, furthermore, forming a corporation would likely result in double taxation. Is Wally correct that with his proposal that they share control of the business and split profits equally, there could be no personal liability for debts?

A major disadvantage of partnerships is that partners are personally liable for the firm's debts

A partnership in which the partners divide profits and management responsibilities is a limited partnership.

A partnership in which the partners divide profits and management responsibilities is a general partnership.

Which of the following is found when one party was forced into an agreement by the wrongful act of another?

Duress

Easement Dispute. Sally buys a house from Bob that borders on a lake. Her deed gives her the most complete estate a person may have. She is in her bathing suit sunning one day when her neighbor, Fred cuts through her yard. Sally tells him not to do that anymore. Fred informs her that he had previously purchased and properly recorded a right to cut across her yard to get lake access. Sally asks you what she should do to try to get rid of Fred because she doesn't like him cutting through her yard when she is sunning. What is the best advice you can give Sally regarding getting rid of Fred?

Easements can be terminated, with the most common method of termination being by agreement.

What are the exception(s) to the preexisting-duty rule?

Exceptions to the preexisting-duty rule include unforeseen circumstances, additional work, and agreements falling under the UCC involving the sale of goods.

Which of the following have all their terms clearly set forth in either written or spoken words?

Express contracts

Title VII of the Civil Rights Acts applies to all employers, no matter how many employees they have.

False

The Americans with Disabilities Act is enforced by the Equal Employment Opportunity Commission in the same way that Title VII is enforced.

ADA is enforced by the EEOC in the same way that Title VII is enforced.

Under Title VII, a successful plaintiff may be awarded _____________.

All of these

John and Joan are both supervisors at a store. John has worked there for twenty years and Joan for fifteen years. Joan is only paid half what John makes. Under the Equal Pay Act (EPA):

All of these John and Joan must be paid the same if their job responsibilities are substantially similar John may be paid more than Joan under a bona fide seniority system John may be paid more than Joan under a bona fide merit system

If no means of communicating the acceptance is specified, what type of means of accepting is generally not valid?

All of these are generally valid ways of acceptance Answers: Telephone Mail Email Fax

Which of the following types of corporation is known specifically for being a closely held corporation yet enjoying the tax status of partnerships?

An S corporation is a particular type of closely held corporation that enjoys the tax status of a partnership

Which of the following occurs when a party to a contract transfers her rights to a contract to a third party?

An assignment

What is the term for the party to a contract who transfers her rights to a contract to a third party?

An assignor

Easement Dispute. Sally buys a house from Bob that borders on a lake. Her deed gives her the most complete estate a person may have. She is in her bathing suit sunning one day when her neighbor, Fred cuts through her yard. Sally tells him not to do that anymore. Fred informs her that he had previously purchased and properly recorded a right to cut across her yard to get lake access. Sally asks you what she should do to try to get rid of Fred because she doesn't like him cutting through her yard when she is sunning. What is the type of right that Fred is exercising by cutting through the yard called?

An easement is an irrevocable right to use some part of another's land for a specific purpose without taking anything from it

A(n) ______ is an irrevocable right to use some part of another's land for a specific purpose without taking anything from it.

An easement is an irrevocable right to use some part of another's land for a specific purpose without taking anything from it.

Which of the following is true regarding illusory promises?

An illusory promise is not consideration.

A(n) _____ occurs when a former minor does not specifically state that he affirms a contract entered into as a minor but takes some action that is consistent with intent to ratify the contract.

An implied ratification

Which of the following is not a way to discharge a contract by mutual agreement?

Anticipatory repudiation

Which of the following is true regarding an award of attorney fees under Title VII?

Attorney fees may be awarded to a successful plaintiff in a Title VII case and are typically denied only when special circumstances would render the award unjust; and if it is determined that a plaintiff's action was frivolous, unreasonable, or without foundation, the courts may award attorney's fees to the prevailing defendant.

An acceptance, which is received after the offer was rejection, is still a valid acceptance.

If an acceptance is received after a rejection is received, the acceptance is not valid because the rejection terminated the offer.

A(n) ________ is a transfer of less than all the interest in a leased property

In essence, a sublease creates a landlord/tenant relationship between the original tenant and the sublessee

Mistakes in contract law result from untrue statements made by one party to the contract.

Mistakes in contract law do not result from the untrue statements of the other party to the contract, and instead, a mistake results from an erroneous belief about the facts of a contract at the time the contract is concluded.

Which of the following would not be considered an example of consideration?

Performance of a duty you are obligated to do under the law is not good consideration.

Which of the following are examples of people who do not have the capacity to enter into legally binding contracts?

Persons who do not have the capacity to enter into legally binding contracts include those who are under the age of majority, intoxicated, or suffering from mental illness.

Which of the following are considered an interest in land within the statute of frauds?

Promises to sell crops annually, agreements between parties for profit sharing from the sale of real property, and boundary disputes that have been settled through the use of land are not within the statute of frauds and, therefore, do not require evidence in writing.

Which of the following is the legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract?

Promissory estoppel

Who typically prepares a corporation's incorporation papers?

Promoters prepare the corporation's incorporation papers. They can also enter into contracts as needed, say, to purchase or lease buildings for the corporation

Property that the original owner has discarded is ______ property.

Property that the original owner has discarded is abandoned property.

Which of the following is true regarding caps on punitive damages in Title VII cases based on discrimination other than race?

Punitive damages are capped at $300,000 for employers of more than 500 employees, at $50,000 for employers of between 100 and 200 employees, and at $25,000 for employers of between 25 and 50 employees.

The bona fide occupational defense does not include which protected classes?

Race and color

Shareholders of a corporation can freely transfer their corporate shares.

Shareholders of a corporation can freely transfer their corporate shares.

Which of the following does an employee not need to demonstrate to recover benefits under workers' compensation?

The injury was serious enough to require inpatient hospital care

Which of the following is not true about the law of contract?

The law of contract serves as statutory law

Which of the following is not a possible defense to a lawsuit in contract?

The offeree lost his job and can no longer afford to proceed with the contract

The sole proprietor has complete control of the management of the business and keeps all the profits from the business.

The sole proprietor has complete control of the management of the business and keeps all the profits from the business.

Which of the following occurs when a party threatens to file a nonfrivolous civil lawsuit unless another party gives consent to the terms of a contract?

Threats to file a civil case against a party do not constitute duress unless the suit is frivolous.

Which title of the Civil Rights Act (CRA) of 1964 governs civil rights in employment situations?

Title VII

The primary type of rule making used by administrative agencies is informal rule making

True

Which of the following is a way in which a gift differs from a purchase as a way of transferring ownership?

When transfer of the property is by purchase, the acquiring party gives some consideration to the seller in exchange for title to the property; but that is not true when gifts are involved.

Which of the following is true under the UCC regarding checks marked "paid-in-full"?

a business does inadvertently cash a "paid-in-full" check, the business has 90 days from the date it cashed that check to offer repayment in the same amount to the debtor.

Employers are required to provide __________ to plan participants under ERISA.

a plan information (i.e., features and funding), a grievance and appeals process for participants to get benefits from their plans, and the right to sue for benefits and breaches of fiduciary duty

In general, a(n) _____ mistake does not generally void a contract.

a unilateral mistake

Which of the following are the two primary kinds of performance?

complete performance and substantial performance.

What is a cooperative?

cooperative consists of multiple individuals who join together to gain a mutual advantage in the market

Mutual promises to marry fall within the statute of frauds.

false

Suretyship is an agreement to complete a contract within one year.

false

A _____ is a false representation of a material fact that is consciously false and intended to mislead the other party.

fraudulent misrepresentation i

Tom and his brother, Fred, create a plumbing business. They agree to share control of the business, to work the same amount, and to split the profits equally. What kind of business have they created?

n a general partnership the partners divide the profits (usually equally) and the management responsibilities and share unlimited personal liability for the firm's debts

A promise to pay a debt that has already been discharged in bankruptcy must be in writing in order to be enforceable in many states.

true

A written agreement for the sale of an illegal subject matter is voidable under contract law.

true

For purposes of determining capacity, intoxicated persons include those under the influence of alcohol, but not drugs.

true

If an agreement, which is required to be in writing under the statute of frauds, contains a serious and obvious typographical error, parol evidence is admissible to demonstrate that the writing contained an error.

true

Making regular payments under a contract after reaching the age of majority will probably constitute implied ratification of the agreement.

true

Misrepresentation is a false statement by a party about a material fact.

true

Silence can be an acceptance when the offeree receives the benefits of the offered services with reasonable opportunity to reject them and knowledge that some form of compensation is expected, yet remains silent.

true

Because their contracts are _____, minors have the right, until a reasonable time after reaching the age of majority, to _____, or avoid, their contracts.

voidable, minors have the right, until a reasonable time after reaching the age of majority, to disaffirm,

__________________ is provided to a plaintiff if the EEOC decides not to sue on behalf of the plaintiff.

A right-to-sue letter

Tutoring Concerns. Wally and Sally want to go into business together and plan on offering a tutoring service to high school and college students. Wally proposes that they share control of the business and split profits equally and not bother with a written agreement. Sally, however, is concerned about being able to pay their debts since they will have to rent tutoring space and purchase computers and supplies. She is also concerned about parents and students who may sue if the students' test scores do not improve. She tells Wally that she just bought a new boat and car, and that she does not want her assets to be in jeopardy. She tells Wally that they should form a corporation to shield their personal assets. Wally, however, says their personal assets are not in danger with his proposal because they are a business and that, furthermore, forming a corporation would likely result in double taxation. What type of arrangement did Wally propose with his suggestion that they share control of the business and split profits equally?

A partnership is an association between two or more people who share control of the business and split the profits equally

What is a written agreement forming a partnership called?

A partnership is formed by articles of partnership stating the partners' names, the name and duration of the partnership, the division of profits and losses, the division of management duties, and the capital contributions that will be made by each partner

A voluntary association between two or more people who co-own a business for profit is called a corporation.

A voluntary association between two or more people who co-own a business for profit is called a partnership.

Which is not considered a discharge of contractual obligations by mutual agreement?

Bankruptcy

Which of the following is available to a party who was misled by a false statement contained in an innocent misrepresentation?

Innocent misrepresentations permit the party that was misled by the false statement to rescind the contract, but the aggrieved party cannot sue for damages.

Which of the following are written contracts intended to be the complete and final representation of the parties' agreement?

Integrated contracts

Real property ownership includes airspace above the land, water rights flowing across or beneath the land, and ___________________.

Real property ownership extends to what lies beneath the land.

Which of the following contractual rights can be assigned?

Real property rights

Silence may constitute acceptance of an offer.

The Restatement of Contracts offers three circumstances under which silence can be an acceptance.

______________ is also known as the Labor-Management Relations Act.

The Taft-Hartley Act

_______________ are laws governing labor-management relations in the U.S.

The Wagner Act, the Taft-Hartley Act, and the Landrum-Griffin Act

Which of the following is not required to be in the articles of incorporation?

The articles of incorporation must include (1) the name of the corporation, (2) the address of the registered office, (3) the name of the registered agent (the specific person who receives legal documents on behalf of the corporation), and (4) the names and addresses of the incorporators

The ______ requirement ensures that courts do not render advisory opinions.

The case-or-controversy (or justifiable controversy) requirement ensures that courts do not render advisory opinions.

The court never considers the adequacy of consideration.

The court seldom considers adequacy of consideration but may with issues of selling assets to avoid creditors in a bankruptcy proceeding.

Which of the following is true regarding the adequacy of consideration?

The court seldom considers adequacy of consideration.

What are the elements of a binding contract?

The elements of a binding contract are: agreement, consideration, contractual capacity, and legal object.

A corporation commits ultra vires when it acts beyond its express and implied powers

True

A landowner may be required to involuntarily transfer their property to the government.

True

All property that is not land or permanently affixed to land is personal property.

True

Overall, the percentage of unionized workers in the U.S. has declined since the post-World War II period.

True

A ______ is a person's present right to future property ownership and possession.

A future interest is a person's present right to property ownership and possession in the future.

In 2009, the FDA issued an Egg Safety Final Rule meant to prevent cases of egg-related salmonella poisoning in the U.S. The regulation requires preventive measures during the production of eggs in poultry houses and subsequent refrigeration during storage and transportation. This rule has an effect of law. Of what is it an example?

A legislative rule

Jeanette signed a month-to-month lease with her landlord. Which of the following describes the type of lease she signed?

A periodic-tenancy lease is created for a recurring term, such as month to month

A person who has the legal right to bring an action in court has standing.

A person who has the legal right to bring an action in court has standing (or standing to sue); and for a person to have standing, the outcome of a case must personally affect him or her.

Disputed Ring. While working in the yard, Tina found a beat up ring. Becca, an eighteen-year old teenager and neighbor, came over to visit and liked the ring. Tina said, "You can have this old thing if you would like." Becca replied, "I really like it - Maybe it's a real diamond!" Tina laughingly told her that there was a one in a billion chance of that and that Tina was more likely to win the lottery. A few months later Becca ran over to Tina's house and told Tina that the ring was actually a diamond worth thousands! Becca gave Tina the ring to examine. Tina put it in her pocket and told Becca that she would never have given it to her if she had realized its value and that possession was back where it had always belonged. Tina also told Becca that Becca failed legally to accept the gift because she did not know its true value and also because Tina did not sign any document turning over title. Becca sues. Which of the following is true regarding Tina's statement that Becca could not have validly accepted the ring?

A transfer of ownership of the ring required no formalities and acceptance is satisfied by the willingness of the donee to take the gift from the donor

When determining whether men and women do equal work and deserve the same pay under the EPA, what factor do courts not consider?

All of these factors help the court determine whether the work was equal Answers: Skill Effort Responsibility Working conditions

Condemnation is a legal process that is protected by the federal constitution and allows the government to take private property only if the property is used for new schools or roads.

False

Assume you know that Robert has told a lie about a friend of yours, Yolanda. You tell Yolanda that she should sue for defamation, but she has no interest in that. Can you sue on behalf of Yolanda?

For a person to have standing, the outcome of a case must personally affect him or her.

A bond used as bail in a criminal case is which type of contract?

Formal contract

If a statute is drafted in a manner that is ambiguous with respect to the type of agency rule making that is required, a court will interpret the rule as requiring formal rule making.

If a statute is drafted in a manner that is at all ambiguous with respect to the type of rule making required, the court will not interpret the law as requiring formal rule making

In rem jurisdiction references jurisdiction over a person subject to an order of guardianship.

In rem jurisdiction involves the power of a court over the property or status of an out-of-state defendant located within the court's jurisdiction area

Adult siblings, John, Sam, and Andy, are in disagreement over how to split the proceeds of a piece of land left to them by a rich uncle who recently died. The uncle was a resident of Georgia, and the land is in Georgia; but neither John, Sam, nor Andy live there. Which of the following is true regarding jurisdiction over the dispute?

In rem jurisdiction is the power of a court over the property or status of an out-of-state defendant located within the court's jurisdiction area.

Disputed Ring. While working in the yard, Tina found a beat up ring. Becca, an eighteen-year old teenager and neighbor, came over to visit and liked the ring. Tina said, "You can have this old thing if you would like." Becca replied, "I really like it - Maybe it's a real diamond!" Tina laughingly told her that there was a one in a billion chance of that and that Tina was more likely to win the lottery. A few months later Becca ran over to Tina's house and told Tina that the ring was actually a diamond worth thousands! Becca gave Tina the ring to examine. Tina put it in her pocket and told Becca that she would never have given it to her if she had realized its value and that possession was back where it had always belonged. Tina also told Becca that Becca failed legally to accept the gift because she did not know its true value and also because Tina did not sign any document turning over title. Becca sues. Which of the following describes the type of gift at issue?

Inter vivos gifts are gifts made by a person during his or her lifetime.

Which of the following are written questions that one party sends to another to answer under oath?

Interrogatories are written questions that one party sends to the other to answer under oath.

Contractual obligations are sometimes imposed by the courts to prevent one party from being unjustly enriched at the expense of another. What are these called?

Quasi-contracts

A defendant in a lawsuit is to be provided by the plaintiff with a copy of the complaint. That process is called ______.

Service of process is the procedure by which courts present these the summons and complaint to defendants.

Stakeholders of a business consist of many different groups of people who are affected by the business's decisions.

Stakeholders of a business consist of many different groups of people who are affected by the business's decisions.

Which of the following statements is false concerning liquidated damages?

The courts specify the amount of liquidated damages a plaintiff receives

The owner of a ______ estate possesses the same interest as the owner of a fee simple absolute, only this interest is subject to a condition that may result in termination of the interest.

The owner of a conditional estate possesses the same interest as the owner of a fee simple absolute except that this interest is subject to a condition: Should a certain required event fail to occur, or should a specific prohibited event occur, the interest will be terminated.

Concurrent federal jurisdiction means that both state and federal courts have jurisdiction over a case.

True

Corporations have implied powers.

True

Employees as well as management are stakeholders of a business

True

Ethics is the study and practice of decisions about what is good or right.

True

Every partner is considered to be an agent of the partnership.

True

If the state of New York sues the state of New Jersey regarding who owns the George Washington Bridge, the U.S. Supreme Court may serve as the trial court.

True

In U.S. law, corporations are legal entities and have rights under the Constitution.

True

State courts have the power to hear all cases not within the exclusive jurisdiction of the federal court system.

True

Subleasing of leased property by the tenant to another party is permissible unless specifically prohibited by the lease.

True

Bob sued Jane over a motor vehicle accident. Bob and Jane settled the case prior to trial for $1,000. The lawsuit is now ______.

Usually the issue of ripeness arises when one party claims that the case is moot—in other words, there is no point in the court's hearing the case because no judgment can affect the situation between the parties.

Which of the following is typically an appropriate venue in a lawsuit?

Usually, the trial court for the county where the defendant resides is the appropriate venue. If a case involves property, the trial court where the property is located is also an appropriate venue. Finally, if the focus of the case is a particular incident, the trial court where the dispute occurred is an appropriate venue.

Which of the following exceptions to the parol evidence rule falls under the Uniform Commercial Code?

When it addresses prior dealings between the parties or usages of trade in the business they are in

Suppose Jared purchases a life insurance policy. Life insurance policies do not vest until the promisee's death. Jared originally made his wife Carla the intended beneficiary, but now that they are divorced, he wishes to make his daughter Haley the beneficiary instead. Can Jared change the beneficiary?

Yes, because Carla's rights were not vested yet

Suppose you entered into a contract to clean someone's pool. Then, both you and the pool owner discovered that the pool water has produced toxic levels of chlorine over time. As a result, you cannot clean the pool without first decontaminating it. This change in knowledge about the toxicity levels of the pool is considered a material fact in the agreement. Can you rescind the contract?

Yes, this seems like a mutual mistake

Agreements regarding marriage in which one party is gaining something other than a return on his or her promise to marry ___________________

are within the statute of frauds and therefore must be in writing

In a limited partnership, ___________________________ no liability beyond the capital they invested

at least one limited partner assumes

If a creditor wishes to obtain the partner's profits while the partner continues to act as a partner and engage in the partnership business, the creditor should obtain a(n) __________________

charging order

In some states, courts consider the purpose of the licensing statute when determining the effect of the agreement. If a licensing statute is intended simply to generate revenue, then the contract of an unlicensed person is _________

valid