BUL3310
In order to find a violation of the Sherman Act, courts require evidence of an explicit agreement to violate the law.
False
In today's business world legal compliance is a moral minimum.
True
The Fair Labor Standards act does not limit the number of hours that an employee may work in a workweek or workday, as long as the employee is paid appropriate overtime.
True
The Federal Trade Commission takes the position that it is an unfair or deceptive trade practice under the Federal Trade Commission Act for firms to fail to honor their own privacy policies
True
The tort of false imprisonment requires that the plaintiff either knew he or she was confined or suffered harm as a result of the confinement
True
The tort of false imprisonment requires that the plaintiff either knew he or she was confined or suffered harm as a result of the confinement.
True
Contracts for the sale of fabric, automobiles, computers, furniture, and paper clips would all be governed by Article 2 of the Uniform Commercial Code.
True (goods)
The Truth-in-Lending Act limits credit card liability to $50 per card for unauthorized charges made before a card issuer is notified of a lost or stolen card.
true
When acting on behalf of the prinicpal, an agent has a duty to follow all lawful and clearly stated instructions of the principal.
true
Under the theory of __________, a company can be held liable for violations of civil law by its employee, even if a manager told the employee not to violate the law.
vicarious liability
Freedom of speech is the least prized freedom that Americans possess.
False
Sally's Sewing Machines verbally agreed to sell Suzy Alterations a sewing machine for $350.00. Based on the UCC and statute of Frauds the contract must be in writing.
False
A professional athlete injured during practice is deemed to have consented to the physical contact attendant to practice
True
Intent may be transferred.
True
Pursuant to the "fair use doctrine" a teacher can copy copyright protected materials for classroom use
True
Pursuant to the "fair use doctrine" a teacher can copy copyright protected materials for classroom use.
True
Intent cannot be implied.
False
State long arm statutes permit states to obtain personal jurisdiction over non-resident defendants regardless of the case facts.
False
The Fair Credit Reporting Act does not give consumers a right to have corrected copies of their credit reports sent to creditors.
False
The UCC does not require parties act in good faith in the performance of contracts.
False
Trespass to personal property and conversion are different names for the same tort.
False
Upon filing a bankruptcy petition only a voluntary stay of creditors' actions occurs.
False
When the terms of a written contract are clear, and there is no fraud or deceit, the parol evidence rule will allow oral evidence that contradicts those terms.
False
Mediation is a form of alternative dispute resolution in which the parties choose an impartial third party to hear and decide the dispute.
False (Arbitration is)
A(n) __________ mark is a coined term having no prior meaning until used as a trademark in connection with a particular product.
Fanciful
Chis Cornell is given an offer by a music publisher, but he is not interested in that offer because it is for less money than he believes he is worth. He decides to make a counteroffer. His counteroffer does not terminate the original offer.
FALSE
Joe and Doug have started an internet retail business together. They have both pooled their money and time in developing and creating the business and it's website. The type of business Joe and Doug have created is a sole proprietorship.
FALSE
Business ethics is important to the ongoing viability of any corporation.
True
In cases involving transactions via the internet, the courts have adopted a 'sliding scale' to determine whether they can exercise personal jurisdiction.
True
Jesse is drunk as a skunk and can't even focus on anything when she enters into a contract to buy a $50,000.00 car to be delivered in 30 days. The seller is aware of Jesse's condition but has her sign anyway. The contract is voidable.
True
Joe was in a hurry to get home from work and ran a stop sign, but, he did not hit anyone so Joe is not liable for the tort of negligence.
True
Sharie is a sole proprietorship and operates under the fictitious business name of Shari's Cookies.That name must be registered with the state
True
Sharie is a sole proprietorship and operates under the fictitious business name of Shari's Cookies.That name must be registered with the state.
True
Madonna and Kurt Cobain created a general partnership to make an album. During the recording of the album, Kurt died. Which of the following is true regarding the effect of Kurt's death the general partnership?
Within 90 days the remaining partners may elect to continue the partnership.
Plays, movies, books, songs, choreography, panomine, are all examples of
copyright material.
Prudence is an officer of SellMyStuff, Inc. She wants to take advantage of a desirable business investment that rightfully belongs to SellMyStuff, Inc. Which of the following restricts this behavior?
corporate opportunity doctrine
Herbert entered into a contract with Celina to purchase 500 tomato plants at $1.00 per plant to be delivered in one week. Herbert paid Celina but the week came and went without any plants being delivered. What are Herbert's remedies under the UCC?
Obtain cover
Cream X has been approved by the Food and Drug Administration for the treatment of eczema. Dr. Glover discovers, however, that it is also great for a number of other things including the removal of wrinkles and cellulite. The cream is applied to the skin, not ingested. He starts prescribing it for those purposes and has a great increase in patients. Dr. Smith starts to lose a number of patients to Dr. Glover and becomes grumpy when she hears why Dr. Glover is gaining in popularity. Dr. Smith decides to complain about the practice but does not know quite what to do about it. Which of the following is the appropriate term for Dr. Glover's prescribing of Cream X for the elimination of wrinkles and cellulite?
Off label use
Which of the following is NOT one of the basic elements for formation of a valid contract?
Promissory estoppel
What are the three types of jurisdiction?
Subject matter, personal and in rem
Use the same scenario as the foregoing question, however, George failed to deliver the MP3 players within 1 week. Instead he delivered them 2 weeks later. Harry accepts the MP3 players but refuses to pay George. What is George's possible remedy
Sue for breach of contract
Use the same scenario as the foregoing question, however, George failed to deliver the MP3 players within 1 week. Instead he delivered them 2 weeks later. Harry accepts the MP3 players but refuses to pay George. What is George's possible remedy?
Sue for breach of contract
Sally tells you that she is in a dispute with her employer regarding whether in denying Sally a promotion she wanted, the employer committed sex discrimination. Sally says that she has heard about both mediation and arbitration and asks you which would result in a quicker judgment in her favor because she does not particularly want to go to the time and expense of a court action. Sally also asks if, as a friend, you will go with her when she consults with a lawyer. What would you tell Sally regarding whether she should choose mediation or arbitration?
That an arbitrator would actually decide the case whereas a mediator would not.
Molly runs the best dog grooming shop in town. All the dogs love her, as do the owners. She is particularly popular because of a special type of dog biscuit she gives for treats that provides such energy that owners have been known to try them too. Slowly but surely all the other dog grooming shops start to go out of business. Molly claims surprise when one day she is charged with unlawfully monopolizing the dog grooming business. Which of the following would be her best defense?
That she did not intentionally obtain monopoly power or retain it through anticompetitive acts.
I am able to estimate things well, so that means I can limit the range of alternatives to consider. The previous illustrates the
overconfidence trap
In order to avoid an unworkable construction of the Sherman Act, the courts have construed Section 1 to prohibit only those restraints of trade that unreasonably restrict competition.
true
Invasion of the right to privacy is an intentional tort.
true
Ned is the director of All Metals Corporation. All Metals has entered into a contract with Allied Fabricators to have a prototype built. Ned is a shareholder of Allied Fabricators. Ned has a duty to disclose his relationship with Allied Fabricators to All Metals and vice versa.
true
Nobel Prize winner in economics Milton Friedman asserts that the only guiding criterion for the corporation should be profitability within the confines of the law.
true
Preferred stock refers to stock that generally gives the stockholder priority over common stockholders as to dividends
true
Ted Turner is a public figure. He sees a story in a newspaper that states facts about him that are untrue. If he wants to sue the newspaper he will have to prove actual malice in order to win his case.
true
Terms that were once enforceable trademarks may become generic and thereby not protected.
true
Before implementing a mandatory safety standard, the Consumer Product Safety Commission must find that __________ are inadequate.
voluntary standards
Which of the following is an example of unprotected speech?
"I'm going to beat you to a pulp with this metal bat."
Which of the following is NOT one of the three basic types of deeds?
A Specific deed
Which of the following is not usually considered an independent contractor?
A delivery driver working for a delivery service
Woody and Mathew create a partnership to make a documentary called "Untrue Dectective" that exposes the lies that some detectives have told in famous criminal cases. Mathew decides to release defamatory information about one of the detectives, who he knew did not lie, to the press. Which of the following is false regarding Mathew's poor decision making this partnership?
A partnership is prohibited from placing managerial control of the business in one partner.
Which of the following is NOT one of the three basic types of deeds?
A specific deed
Joe and Sam entered into a contract. Pursuant to the contract Joe was to fix Sam's roof and Sam was to pay Joe $500.00. Joe fixed the roof, but, Sam never paid the $500.00. Joe want's his money but doesn't want to file suit against Sam. What can Joe and Sam do instead
A) Mediate the matter B) Seek arbitration C) Attempt negotiation D) All of the above ANS All of the above
Betty has an unsecured interest in Tom's automobile. HFC has a secured interest in Tom's automobile. Betty has priority.
False
Susan is an employee of ABC Promotions, however, she is not authorized to enter into contracts or otherwise bind ABC to any agreements, however, last month when her supervisor was out a client came in and requested certain flyers be ordered for an upcoming event. The flyer cost ABC $1,000.00, and when they were received ABC forwarded the flyers to the client who in turn paid ABC for the flyers and its services, and used the flyers to promote its event. ABC received a bill from the printing company that prepared the flyers but refuses to pay the bill. Is ABC obligated to pay the printing bill?
ABC is liable because by it's actions it ratified Susan acting as an agent for the specific matter at issue.
Suzy and Amy would like to start an e-business selling handbags and shoes. They would like to be protected from personal liability and also would like the tax advantage of paying company taxes as individuals rather than paying corporate taxes. What type of business entity should they form?
ANS: A limited liability company that is treated as a partnership. AND A subchapter S corporation
Ethics and law are unrelated.
False
The U.S. Supreme Court has held that in order for a public official or public figure to recover damages for defamation by a media defendant, there must be a showing of:
Actual malice
Consideration can be anything that someone might want to bargain for. This includes
All of the above: The thing bargained for can be a promise to do something; The thing bargained for can be a promise to refrain from doing something; The thing bargained for can be another promise or action.
Which of the following UCC Articles governs lease contracts?
Article 2(A)
Which of the following contracts must be in writing to be enforceable?
B) A contract for the purchase of a house.
Sam has met with his attorney to discuss a potential matter he has been concerned about regarding his company's violation of certain employment laws. Under what privilege is the meeting with the attorney protected?
B) Attorney/Client
Joe agreed to pay $50.00 per credit hour as tuition to attend school at a local university. When it came time to actually pay, Joe failed to do so. Which of the following best defines Joe's action in not paying his tuition?
B) Joe is in breach of his agreement with the university.
Dismey Productions has website that pictures on its home page a castle with a naked fairy flying around it against a blue background. Dismey Productions is an adult entertainment film production company. Disney World has been made aware of the website and wants it shut-down. What type of lawsuit should Disney World file?
B) Trademark infringment lawsuit
An expression of opinion is considered an offer.
False
Joellen's General Store advertises cans of X-brand whole tomatoes for $.33 per can. When customers arrive to buy the tomatoes, Joellen tells them that her stock of X-brand canned tomatoes has been sold and that she cannot obtain more at the lower price. She then informs the customers that she has Y-brand canned tomatoes in stock, for $.55 per can and that the Y-brand canned tomatoes are far superior to the X-brand canned tomatoes. What do you call Joellen's behavior?
Bait and switch advertising
Sally saw an ad in a magazine stating that for $1.00 she could receive 10 music CDs, but, then would have to order more. Sally filled out the necessary form and mailed it with her $1.00. Sally received the CDs but didn't want to order more. Later, she received a bill from the company for $100.00 that she refused to pay. Sally is only 14 years old. Which of the following best describes this situation.
Because the CDs were not a necessity, and Sally is a minor the contract is voidable.
Which of the following are situations in which ownership rights are shared by two or more individuals?
Both tenancy in common and tenancy by the entirety
The FTC now requires used car sellers to affix a __________ to the cars that they sell.
Buyers Guide
Herbie has a security interest in an automobile he sold to Glen. How can Herbie perfect his interest by which one of the following?
By filing a financial statement
An independent contractor is also considered an employee of the person for whom work is being done.
False
George and Harry enter into a contract for the purchase and sale of MP3 players. George agrees to deliver the MP3 players to Harry for an agreed upon price within one week. Into what type of contract have George and Harry entered?
Express contract
Which of the following will NOT create an express warranty under the UCC
Expressing an opinion about the quality of the goods.
The practice of __________ occurs when an individual registers a famous trademark as an Internet domain name and then offer to sell the domain name to the trademark owner for a ransom.
Cybersquatting
United Exports is a U.S. company that has entered into a contract to ship certain goods to Russia for a certain price, quantity and via certain shipping arrangements. How would the contract be classified
D) As a direct exporting contract
Which of the following elements must a plaintiff prove in order to succeed in a negligence case?
Defendant owed a duty of care. Defendant breach his duty of care. Plaintiff suffered a legally recognizeable injury. Defendant's breach cause the injury. Correct Response: All of the above.
When referring to a negotiable instrument, who are the three main parties?
Drawee, drawer, payee
Which of the following are considered duties to which directors are subject?
Duty to make informed and reasonable decisions.
Which of the following is a factor to be considered in determining the type of business form to chose?
Ease of creation The liability of the owners Tax considerations The need for capital Correct Response All of the above ANS: ALL OF THE ABOVE
The State of Florida is building a new highway and it is designed to go through your living room in your house. As a result, the State of Florida needs to aquire your home. Which of the following references the power of government to acquire private property needed for a public use?
Eminent Domain
Which of the following references the power of government to acquire private property needed for a public use?
Eminent Domain
The State of Florida is building a new highway and it is designed to go through your living room in your house. As a result, the State of Florida needs to aquire your home. Which of the following references the power of government to acquire private property needed for a public use?
Eminent domain
Filing your financial statement properly, renders the security interest unperfected.
False
George and Harry enter into a contract for the purchase and sale of MP3 players. George agrees to deliver the MP3 players to Harry for an agreed upon price within one week. Into what type of contract have George and Harry entered
Express contract
A tort is a type of civil or criminal wrong
False
The conveyance of a(n) __________ interest conveys absolute ownership of real property.
Fee Simple
In an effort to achieve more exercise someone was considering different ways to achieve the objective. They did not take into consideration how long each would be performed. This is an example of the:
Framing trap
Betty is looking to buy a new home and is desparate to purchase an old colonial near her home. The house is listed with a real estate agent,whom Betty doesn't like. Betty goes directly to the seller and offers the seller cash if the seller agrees not to use the real estate agent and just let that agreement expire, which will take place in a week. What tort has Betty committed.
Interference with a prospective business advantage.
Joe agreed to pay $50.00 per credit hour as tuition to attend school at a local university. When it came time to actually pay, Joe failed to do so. Which of the following best defines Joe's action in not paying his tuition?
Joe is in breach of his agreement with the university.
Dolly Dudley has purchase here first home, with her boyfriend, Daniel Dudmire. Both Dolly and Daniel are listed on the title with each person owning a 50% interest, with right of survivorship. Which of the following types of owership best describes their situation.
Joint Tenancy
Which of the following is true regarding private employer monitoring of employee e-mail on company-owned equipment?
Most courts have upheld a private employer's right to monitor employee e-mail on company-owned equipment.
Pursuant to the Statute of Frauds which of the following contracts must be in writing?
One involving real estate. One involving the sale of a good valued in excess of $500.00. One to build a mansion, that will take more than a year to construct. Correct Response: All of the above.
Accountants may be liable to persons other than their own clients for their own negligence.
True
International Online is an internet service provider. One of it's subscribers posted a defamatory comment regarding another subscriber on its site and as a result defamed subscriber filed suit against the other subscriber and IO. The Court had to determine whether the case against IO could proceed. What is the answer?
Pursuant to the CDA IO is protected and the case against it must be dismissed.
In which of the following manners may an offer be terminated?
Revocation of the offer. Termination by the parties' actions. Rejection of the offer by the offeree. Correct Response: All of the above
The term, "Holiday Inn" has a(n) __________, because the public associates the term with a particular provider of hotel services.
Secondary meaning
Which of the following is NOT a type of warranty under the UCC?
Specific Performance
Business ethics is important to the ongoing viability of any corporation.
TRUE
Dorthey is an agent of Mr. Wizard, the principal. She agrees to act on behalf of the Mr. Wizard. Dorthey becomes a fiduciary.
TRUE
Jesse is drunk as a skunk and can't even focus on anything when she enters into a contract to buy a $50,000.00 car to be delivered in 30 days. The seller is aware of Jesse's condition but has her sign anyway. The contract is voidable
TRUE
When acting on behalf of the prinicpal, an agent has a duty to follow all lawful and clearly stated instructions of the principal
TRUE
Monica tells all her employees that she expects them to treat others as they would like to be treated. Which of following is a descriptive term for Monica's requirement?
The Golden Rule
Which of the following statements is NOT true regarding the characteristics of a corporation?
The board of directors implements the decisions of the officers.
Sal has entered into a contract for hire with Herbie. Sal has agreed to pay Herbie the sum of $1,000.00 if Herbie will steal the secret recipe from Coca Cola. Which of the following is correct?
The contract is illegal and therefore unenforceable
Sal has entered into a contract for hire with Herbie. Sal has agreed to pay Herbie the sum of $1,000.00 if Herbie will steal the secret recipe form Coca Cola. Which of the following is correct?
The contract is illegal and therefore unenforceable.
Sal has entered into a contract for hire with Herbie. Sal has agreed to pay Herbie the sum of $1,000.00 if Herbie will steal the secret recipe from Coca Cola. Which of the following is correct?
The contract is illegal and therefore unenforceable.
sal has entered into a contract for hire with Herbie. Sal has agreed to pay Herbie the sum of $1,000.00 if Herbie will steal the secret recipe form Coca Cola. Which of the following is correct?
The contract is illegal and therefore unenforceable.
Sara has left her job and wants to start working for a competitor of the company in which she was previously employed. She signed a noncompete agreement with her prior employee that has restrictions. Assuming a jurisdiction permits noncompete agreements, which of the following is considered in determining whether the restrictions are reasonable?
The duration of limitations, geographic limitations, and the scope of the activities prohibited.
An agency relationship exists in any circumstance where one person is authorized to act on behalf of another.
True
Consideration can be anything that someone might want to bargain for. This includes
The thing bargained for can be a promise to do something or refrain from doing something. The thing bargained for can be a benefit to the promisor or a detriment to the promisee. The thing bargained for can be another promise or action. Correct Response: All of the above.
Consideration can be anything that someone might want to bargain for. This includes
The thing bargained for can be a promise to do something. The thing bargained for can be a promise to refrain from doing something. The thing bargained for can be another promise or action. Correct Response: All of the above.
A professional athlete injured during practice is deemed to have consented to the physical contact attendant to practice.
True
A court must have both subject matter jurisdiction and personal jurisdiction in order to hear and rule on a case
True
A court must have both subject matter jurisdiction and personal jurisdiction in order to hear and rule on a case.
True
Dismey Productions has website that pictures on its home page a castle with a naked fairy flying around it against a blue background. Dismey Productions is an adult entertainment film production company. Disney World has been made aware of the website and wants it shut-down. What type of lawsuit should Disney World file?
Trademark infringment lawsuit
. If a used car is sold without a warranty, the label must state that the car is being sold "as is."
True
Sid while driving his automobile down the street failed to observe a stop sign hitting Jane who was legally crossing the street at the time. What type of tort did Sid commit?
Unintentional tort (Negligence)
It is a common law doctrine under which judges are obligated to follow the precedents established in a prior decision.
What is stare decisis..
An otherwise copyrightable work that is prepared by an employee within the scope of employment, is called a(n) __________ and belongs to the __________.
a work for hire, employer
A contract most likely will be declared unconscionable if
it is oppressive and the weaker party did not fully understand the consequences of the agreement
Once an agent is given __________ authority, he or she also has __________ authority to do whatever is reasonable to complete the task he or she has been instructed to undertake.
express,implied
Joe and Doug have started an internet retail business together. They have both pooled their money and time in developing and creating the business and it's website. The type of business Joe and Doug have created is a sole proprietorship.
false
Specific performance is the remedy customarily used when one party has breached a contract to perform a personal service.
false
The Truth-in-Lending Act (TILA) is intended to assure a truthful loan application by the consumer.
false
Dolly Dudley has purchased her first home, with her boyfriend, Daniel Dudmire. Both Dolly and Daniel are listed on the title with each person owning a 50% interest, with right of survivorship. Which of the following types of ownership best describes their situation.
joint tenancy
Harry, a vice president of International Pharmaceuticals, Inc. does not apply utilitarianism to business ethical issues. One problem with utilitarianism is that it
justifies human costs that many find unacceptable.
Which of the following provides that a portion of a copyrighted work may be reproduced for purposes of criticism, comment, news reporting, teaching, scholarships, and research?
the Fair Use Doctrine
Conditions __________ occur when the mutual duties of performance are to take place simultaneously.
CONCURRENT
Renee owns a small restaurant that sells hamburgers as one of its main attractions. She puts up a sign that says "Best Burgers in the Country". Peter does an exhaustive investigation of all restaurants in the area and determines that Sam's resturaunt had better hambergers. Peter tells Renee that unless she takes down her sign, he is going to sue her for breach of warranty and false advertising. Renee tells him that he has no cause of action. Who is correct?
Peter is incorrect because Renee was engaged in "puffing".
The creditor, BuyBest (an electronics retail store), sold Mr. N. O'Money a computer which he agreed to pay on credit each month. Mr. N. O'Money did not pay for 4 months. What type of legal procedure would BuyBest use to collect this debt by attaching a portion of Mr. N. O'Money's weekly wages.
garnishment
A trademark is defined as:
A distinctive mark, motto, device or emblem to identify a product or service.
Professor Peter enjoys using a small manual containing information on employment laws in his business law class. The manual costs $100 and is published by We Publish book publishers. Because Professor Peter wants to save his students some money, he copies the manual and has ABC Copy Store make copies for students. Students are required to purchase the copies directly from the copy store. Professor Prudence, who dislikes Peter because she believes he blocked her tenure application, hears about the deal and notifies the publishing company. The publishing company demands that the process be stopped and prepares to seek damages. Can Professor Peter be found guilty of copyright infringement?
It is likely that he would be found guilty of copyright infringement particularly since he arranged for copying of the entire manual, not limited sections.
Joe and Sam entered into a contract. Pursuant to the contract Joe was to fix Sam's roof and Sam was to pay Joe $500.00. Joe fixed the roof, but, Sam never paid the $500.00. Joe want's his money but doesn't want to file suit against Sam. What can Joe and Sam do instead?
Mediate the matter Seek arbitration Attemp negotiation Correct Response: All of the above
.Even if an individual is an at-will employee, in most states the employer is prohibited from discharging the employee for a reason that violates public policy.
True
A check is considered a negotiable instrument.
True
A contract most likely will be declared unconscionable if:
it is oppressive and the weaker party did not fully understand the consequences of the agreement.