Legal Issues Chapter 1/10/11

A federal statute applies to all states. T/F

True A federal statute, of course, applies to all states. A state statute, in contrast, applies only within the state's borders.

The legal rules that control the actions of a business, reflect past and current thinking about how similar businesses should and should not act. T/F

True Realize also that in today's business world, simply being aware of what conduct can lead to legal liability is not enough. Businesspersons must develop critical-thinking and legal reasoning skills, so that they can evaluate how various laws might apply to a given situation and determine the best course of action.

John sees a new watch on eBay. The listing and auction is an offer to form a contract.

false

Merely inquiring about an offer constitutes rejection.

false

The objective theory of contracts focuses on the parties' intentions.

false

The offeror can revoke the offer only by expressly repudiating it.

false

Two disinterested parties are required for an offer to be effective.

false

A ________________________ is a legal authority that a court may consult for guidance, but that is not binding on the court.

persuasive authority

The Montana legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by the united states supreme court only the state of Montana only the federal government only no one

no one

A promissory note is a type of formal contract.

true

Acceptance is timely if it is effective before the offer is terminated.

true

Before the UETA applies, each party to a transaction must agree to conduct it by electronic means.

true

If an agency fails to follow the rulemaking procedures imposed by the Administrative Act, the resulting rule may not be binding. T/F

True If an agency fails to follow the APA's rulemaking procedures, the resulting rule may not be binding

Rules issued by administrative agencies affect almost every aspect of the operations of a business. T/F

True Rules issued by various administrative agencies affect almost every aspect of business operations as a whole.

Typically, in a civil case, a private party sues another private party who has failed to comply with a duty. T/F

True

A secondary source of law is one that clarifies a source of primary law. T/F

True A secondary source of law is a book or article that summarizes and clarifies a primary source of law.

An offer must express reasonably the definite terms to be effective—no term may ever be reasonably inferred.

false

An offer that can be accepted simply by a promise to perform, does not create a binding contract.

false

Even if it conflicts with the U.S. Constitution, a state constitution is supreme within the borders of that state. T/F

False

The terms of service that a person agrees to before loading an app on a phone are not truly legally binding.

False

Fay offers to pay Grey $50 for a tennis lesson for Hetty. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have

a bilateral contract

Yuri agrees to zap.com's terms of service and downloads the site's app. Yuri then reverse-engineers the app to create a competing product. This is

a breach of contract.

On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500, if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had

a unilateral contract as soon as Outdoor began to perform.

Sales Corporation and Real Estate Inc. agree to the payment of a commission for the sale of certain property. If this deal has all of the elements necessary for one of the parties to enforce it in court, it is most likely

a valid contract

Pastries Inc. sends Rollo its catalogue showcasing a variety of baked goods for certain prices. This catalogue is:

an advertisement, not an offer

Bo signs a lease with Capri Properties to lease a studio apartment for the next year for $850 per month. Daisy signs on Capri's behalf. Bo and Capri have

an express contract

Luke puts his motorcycle up for sale via a post on an online auction site. This is

an invitation to negotiate, not an offer

In a suit against Karen, Luke obtains an injunction. this is

an order to do or refrain from doing a certain act.

Simone offers Tom a dozen piano lessons for a certain price per lesson but conditions the deal on Tom accepting the offer by April 1. Simone may revoke the offer

before tom accepts it

Saul claims that his contract with Teri for piano lessons is voidable because he is 17. If Saul avoids the contract, then

both parties are released from it

Anton tells Brooke, who has no knowledge of Shakespearean comedy, that he will tutor her in the subject for $50. As an offer, this is

effective

A contract that only one of the parties can enforce in a court is not valid.

false

A party who confers a benefit on someone else unnecessarily, or as a result of misconduct or negligence, can obtain its fair value by invoking the doctrine of quasi contract.

false

A request to negotiate is an offer.

false

In the case of Sales Corp. v. Transport Co., the court may rule contrary to a precedent if the court decides that the precedent is not in line with the judge's personal values would not bring about the result the judge prefers is incorrect or inapplicable

is incorrect or inapplicable. If a court decides that a precedent is simply incorrect or that technological or social changes have rendered the precedent inapplicable, the court may rule contrary to the precedent. Cases that overturn precedent often receive a great deal of publicity.

The Environmental Protection Agency (EPA) discovers that Fish Farm Inc. has violated an EPA regulation. If no settlement is reached, the EPA can: do nothing take the matter to the U.S. supreme court issue a formal complaint

issue a formal complaint If a settlement cannot be reached, the agency may issue a formal complaint and proceed to adjudication.

On May 1 Ralph offers to cure and smoke Sam's pork, and promises to keep the offer open until June 1. On May 3 Ralph mails Sam a letter revoking the offer. Sam receives and reads the letter on May 5 and responds to Ralph on May 6. Ralph's revocation of the offer became effective on

may 5

Fabien offers to sell his Graphic Signs LLC business to Hanna for $100,000. Hanna replies, "The price is too high. I will buy it for $75,000." Hanna has

rejects the offer and made a counter offer

Power, Inc., is a corporation engaged in the business of producing, refining, and distributing energy resources. With respect to the firm's managers, legal concepts can be useful for Power's human resources manager accounting and finance manager marketing manager silent partner

silent partner

The Food and Drug Administration (FDA) is an executive agency. As an executive agency, the FDA is subject to the authority of: congress the u.s. attorney general the president no government official or entity

the president

Oceans Inc., a seafood distributor, agrees to buy from Paul, (a commercial fisherman) any "overstock" of fish that Paul catches in excess of his legal limit. This agreement is most likely

void

Common law is a body of law developed from judge's decisions in legal controversies. T/F

True

Pavers Inc. contracts with a QuikStop store to repave the store's parking lot for a certain price. To be enforceable, this contract must include an element of

consideration

Only one party entering into a contract must possess characteristics that qualify him or her as competent, for a valid contract to exist.

false

An e-offer might include an arbitration clause specifying that any dispute arising under the contract will be arbitrated in a designated forum.

true