Legal Env. Midterm pt.1

Bruce opens a used car lot but has difficulty competing with Humdinger Motors, a much larger used car lot down the street. In his newspaper ad, Bruce includes the false statement, "Humdinger sells cars with defective titles." Humdinger experiences an immediate decrease in sales. Bruce has most likely committed the tort of:

Disparagement

A family law court is an example of a small claims court.

False

A recognizance is an agreement by which one party admits or recognizes that a specified sum of money is owed to another party.

False

Arbitration procedures occur in a court of law.

False

Ex post facto laws can be adopted by either the states or the national government.

False

Peter Drucker's primum non nocere means "avoid all conflicts of interest."

False

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

False

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

False

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

False

​At common law, a minor cannot be held contractually liable for his or her necessary medical expenses when the parent is unable or unwilling to pay.

False

Which of the following amendments to the U.S. Constitution provides for due process protections?

Fifth Amendment

​If your home or business is searched unlawfully, any items obtained during that unlawful search could be excluded as evidence in a criminal trial because of the ________.

Fourth Amendment's exclusionary rule​

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

The Miranda warnings

Meetings are to be open to the public under:

The Sunshine Act

The U.S. Patriot Act and airport security regulations were enacted for the protection of:

The state

A case brought by the federal government against a corporation for securities fraud would be heard in federal district court.

True

A motion to dismiss is one form of answering a complaint

True

Agencies must give advance notice of their open meetings.

True

Although laws are enacted at different levels of government to provide the framework for business and personal rights and duties, the framework for this legal system is constitutional law.

True

An administrative agency whose erroneous decision causes damage to a person or business is not liable for such loss if the agency acted in good faith.

True

In some cases, third persons, such as third party beneficiaries or assignees, have rights on a contract.

True

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

True

Maintaining confidentiality is an ethical issue for both employees and company management.

True

Some of the powers delegated to the national government may be exercised by the states.

True

The use of someone's car without that person's permission is a trespass to personal property.

True

U.S. Senator Jones enjoys an absolute privilege when she is speaking on the floor of the Senate.

True

​A "Rent-a-Judge" serves as a referee

True

​A factual incapacity may exist when, because of a mental condition caused by medication, drugs, alcohol, illness, or age, a person does not understand that a contract is being made or understand its general nature.

True

​If an offer is indefinite or vague, no contract arises from an attempt to accept it.

True

​In order for fraud liability to arise, the listener must actually rely on the false statement of fact.

True

​Individuals can create their own private law when they contract among themselves

True

​The elements for a valid contract do NOT include:

a fair price

Comparative negligence:

allows a comparison of negligence between plaintiff and defendant.

The Racketeer Influenced and Corrupt Organizations (RICO) Act is a federal statute passed to address:

continuing criminal activity.

When a defendant is convicted of a crime, the court taking from the defendant any property used or gained from the crime is known as:

forfeiture

​The greatest changes to the written Constitution have been brought about by:

judicial interpretation

Ethical egoists such as Ayn Rand hold that:

people always act in their own self-interest.

The United States constitution places the most significant limitations on administrative investigation in the area of

search and seizure of the individual and businesses.

The Uniform Partnership Act is a good example of a(n):

uniform state law

​Judy, a widow, just sold a piece of property. She will live off that money during her retirement. Judy dotes on her son, Chris, who asks her to invest her money in his restaurant, which is faltering. He tells her that if she does not lend him the money she will never see him again. She is afraid of being alone and agrees to his request, but soon changes her mind and asks for her money back. Chris claims they have formed a binding contract. What is your conclusion?

​The contract is voidable based on undue influence.

​When an offer has been accepted:

​a contract is formed, assuming that all of the other elements of a contract are present.

​A crime generally consists of:

​a mental state and an act or omission.

The Securities Exchange Commission creates

​administrative regulations

​Blackmail is defined as:

​an illegal demand made by a nonpublic official.

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

​for a reasonable period of time.

The commerce clause of the Constitution:

​has been expanded by Supreme Court interpretations to give the U.S. government the power to regulate the general welfare of the nation.

​If an offeree dies before the offer has been accepted, the offer:

​is automatically revoked by the death of the offeree.

​All of the following statements refer to an element of fraud except:

​the defendant desired to obtain a financial benefit.

​In an auction __________, the auctioneer takes bids as agent for the seller with the understanding that no contract is formed until the seller accepts the transaction.

​with reserve

​An agreement arises when one person, the __________, makes an offer and the other person to whom the offer is made, the __________, accepts.

​​offeror; offeree