Business Law Test 2

10-7 Duty of Loyalty Did Dweck breach any fiduciary duties?

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11-2 Offer & Acceptance Has Carrie breached a valid contract with Antonio?

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6-5 Libel & Invasion of Privacy Does Eubanks have a good case for either tort? Why or Why not?

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any assignment.

A contract between Drill-Bit Sharpeners, Inc., and East Oil Mining Corporation contains a clause stating that rights under the contract cannot be assigned. This ordinarily prohibits

True

A contract is discharged when its specific subject matter is destroyed.

False

A contract is void if one of the parties was intoxicated at the time of its formation

True

A contract to do something that is prohibited by law is void.

False

A copy must be exactly the same as the original to infringe a copyright

False

A corporation's officers and other employees are hired by its shareholders

False

A crime can be committed only against persons.

False

A generic term is not protected under trademark law unless it acquires a secondary meaning

True

A limited liability company can be taxed as a corporation

False

A member of a limited liability company (LLC) has the power and the right to dissociate from the LLC at any time.

False

A misdemeanor is a crime punishable only by a fine

True

A partner owes to the partnership and the other partners a duty of loyalty

False

A partner's profit from a partnership is taxed as income to the firm.

False

A party who unintentionally uses the trademark of another is not liable for trademark infringement

True

A person can reproduce copyrighted material for purposes such as teaching, including multiple copies for classroom use, without paying royalties.

True

A seller must take steps to guard against the foreseeable misuse of a product.

False

A sole proprietorship continues after the death of the proprietor.

False

A third party cannot sue one of the partners of a partnership without suing all of the partners

True

A unilateral contract is formed when the one receiving the offer completes the requested act or performance

False

A void contract is enforceable if it is in writing

False

An Internet service provider cannot be held liable for disseminating defamatory remarks under any circumstances.

False

An acceptance that materially changes a term in the offer will still be considered an acceptance

False

An action in strict product liability requires that the product not be in a defective condition when the defendant sells it.

False

An executory contract is one that has been fully performed.

True

An incidental beneficiary cannot sue the promisor directly for breach of the contract.

False

Anyone who writes a book has automatic copyright protection in every country in the world

False

Anything less than complete performance is a material breach of contract

trespass to personal property.

As a joke, Jem takes Kyla's business law textbook and hides it so that Kyla cannot find it during the week before the exam. Jem may have committed

False

At a criminal trial, the burden of proof is on an accused person to prove his or her innocence

trademark infringement

Beans Coffee & Cocoa Company makes and sells a chocolate-flavored coffee drink under the name "CoCoCafe." Darkroast Java, Inc., later markets a similar tasting drink under the name "KoKoKafe." This is most likely

fraud

Beau sells a car to Cody without disclosing that the odometer, which reads 40,000 miles, was disconnected 80,000 miles ago. Beau is liable for

False

Because the Internet is vast, the unauthorized use of another's mark in a domain name is generally permissible.

a reasonable person

Bette backs out of City Parking Garage, colliding with Dill's car. Dill may recover $7,500 to cover the cost of the repairs if Bette failed to act as

the objective theory of contracts.

Bobbie claims that Carl breached their contract. Carl responds that he never intended to enter into a contract with Bobbie. The intent to enter into a contract is determined with reference to

Dotty was not injured.

Caleb is driving a car in which Dotty is a passenger when an accident occurs. Caleb and Dotty are emotionally rattled, but neither is physically hurt. Caleb is not liable to Dotty on a negligence theory because

copyright infringement

Cathy uses, on her new recording Drive By, the exact note-for-note melody of a song written by Earl without his permission. This is

optional.

Chocolate Sundry LLC's members and managers are Devlin, Effie, and Flavia. After Devlin's relationship to the firm ends, Effie and Flavia agree to discontinue the business. This is

False

Contracts involving interests in any property must be in writing to be enforceable.

False

Corporations, unlike persons, cannot be liable for crimes.

True

Crimes occurring in a business context are popularly referred to as white-collar crime

the loss of profit from the canceled game

Damon contracts to repair the turf on a soccer field for Carousel Sports Park. Damon knows that without the repair, Carousel will have to cancel an upcoming game. Damon does not perform as promised. As consequential damages, Carousel can recover

False

Defamation is one person's use of another's name without permission.

imprisonment up to one year.

Domino causes a disturbance at El Nino Cafe. He is arrested and charged with disorderly conduct, a misdemeanor. A misdemeanor is a crime punishable by

True

Downloading software or music into a computer's random access memory without authorization is copyright infringement.

a penalty clause

Drew contracts to sell a house to Evan. The contract provides that if Drew does not close the deal by February 10, he must pay Evan one-half of the contract price. This provision is not enforceable because it is

True

Due care must be exercised in designing a product.

must express her intent not to be bound to disaffirm the contract.

Emma, a minor acting on her own, signs a contract to buy an off-road vehicle from Rec Buggies, Inc. Later, after taking possession of the vehicle, Emma decides to disaffirm the deal. She

voidable

Employment Sources, Inc., enters into a contract with Fred. If Fred is a minor, this contract is most likely

trade dress

Ernie's Good Eatin' Cafe uses a distinctive decor, layout, menu, and style of service. This restaurant's image and overall appearance is

True

False imprisonment occurs when a person restrains another intentionally and without justification

NOT (a member-managed LLC or a manager-managed LLC.)

Flip, Gordo, Haruko, and Inez are the member of Regional Gymnastics LLC. With respect to the management of the firm, the members can decide in their operating agreement to be

True

Forcing someone to enter into a contract by threatening to do something that the threatening party has no right to do is duress.

False

Fraud occurs only when there is reliance on a statement of opinion.

patent infringement

Gas Up, Inc., designs, makes, and sells a fuel injection system that copies Hybrid Corporation's design without Hybrid's permission. This is most likely

res ipsa loquitur.

George has a badly infected right foot. Herb, George's physician, prescribes amputation. George agrees. During the operation, Herb amputates the left foot. In George's suit against Herb, George's best theory for recovery is

a third party beneficiary contract

George promises to repair Francesca's boat dock in exchange for Efrem's promise to plant trees on George's property. This is

remain silent

Herb, a computer programmer for Inventory Control Corporation, is arrested in his employer's parking lot on suspicion of larceny. Herb must be informed of his right to

a "pass-through" entity

Hollister and Gladys do business as partners in Frothy Confections. For federal income tax purposes, Frothy Confections would be treated as

an available alternative design

Horizon Corporation makes cell phones. Gina files a product liability suit against Horizon, alleging a design defect. In deciding whether to hold Horizon liable, the court may consider the "reasonableness" of

if Ike intended to push Joan.

Ike pushes Joan, who falls and breaks her arm. Ike is liable for the injury

True

In Case 8.1, Coca-Cola Co. v. Koke Co. of America, the United States Supreme Court upheld an injunction prohibiting competing beverage companies from calling their products "Koke."

True

In a criminal case, the jury's verdict usually must be unanimous

True

In a limited liability partnership, a partner can be exempt from personal liability for the malpractice of other partners.

False

In a sole proprietorship, the proprietor shares the burden of any losses or liabilities incurred by the business enterprise with the government.

True

In certain instances of fraud, a court may "pierce the corporate veil" to hold the shareholders individually liable

False

In contract law, "consideration" refers to the courtesy that one party shows another in negotiating a deal

True

Intentionally failing to comply with the terms of a contract is a breach.

forgery

Ira signs Jill's name, without her authorization, on the back of a check made out to her. This is

the use of force or fear.

Jake is charged with embezzlement. Embezzlement is not robbery because embezzlement may be committed without

whether Kyle's rejection or acceptance is received first

Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office. Kyle sends a rejection first, then changes his mind and sends an acceptance. Whether they have a contract is determined by

not fraud.

Jim is an appliance salesperson. To make a sale, he asserts that a certain model of a Kitchen Helper refrigerator is the "best one ever made." This is

unlimited.

Jody owns KuppaJava Kiosks, a sole proprietorship. Jody's liability is

the duty of loyalty

Josh is a director of Sippy Soups, Inc. Josh opposes a contract that is in Sippy's best interest because Josh would like to enter into the contract for his personal benefit. Josh is liable for a breach of

refuses to leave when Joy asks him to go.

Joy invites Ken into her apartment. Ken commits trespass to land if he

mutual rescission

Juan and Isidro enter into a contract to buy, restore, and reopen the Coastal Park Carousel. Before either party begins to perform, they agree to cancel their deal. This is

exchange the player for the $30.

Juana contracts to sell Ignacio her MP3 player for $30. This contract will be fully discharged when Juana and Ignacio

a sole proprietorship

Julia owns and operates Collectable Dolls without creating a separate business organization. She receives all the profits from the doll sales. Collectable Dolls is most likely

copyright infringement.

Kay and Leo copy and exchange MP3 music files over the Internet without anyone's permission. With respect to songs owned by Natural Recording Company, this is

a reasonable person.

Kelly is injured when she slips and falls on Layla's sidewalk. To determine whether Layla owed a duty of care to Kelly, Layla is subject to the standard of

is the consideration that creates Kingston's obligation to pay Melina

Kingston promises to pay Melina $500 to install a sump pump in his warehouse. Melina completes the installation. The act of installing the pump

forgery

Leah gains access to government records and alters certain dates and amounts in her favor. This is

False

Legally, a minor may not contract with an adult.

contracts that must be in writing to be enforceable.

Lyra induces Moe to enter into a contract for the sale of an apartment about which Lyra fraudulently misrepresents a number of material facts. Lyra tells Moe that her commission is 6 percent, but their signed, written contract states "12 percent." The Statute of Frauds governs

True

Money laundering includes making "dirty" money "clean" through legitimate businesses.

True

Most crimes must be prosecuted within a certain number of years.

if the use is unauthorized.

Munchies, Inc., features the trademarks of famous fast-food restaurants such as McDonald's on binders and other school supplies. Munchies's use of the marks is trademark dilution

the minutes of the organizational meeting.

Myron and Norah would like to form Originals, Inc., to do business in the art market. Generally, the articles of incorporation for a corporation do not include

a unilateral contract as soon as Outdoor begins to perform.

On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, Outdoor is more than half done with the work. This is

True

One of the requirements of a valid contract is its acceptance

False

Only a mistake in value will make a contract voidable

six directors

Open & Shutt Gates Corporation has a board of ten directors. Open & Shutt's bylaws do not state any quorum requirements. Normally, a quorum for Open & Shutt would consist of

the name

Paula develops a new espresso machine, which she names "Quik Shot." She also writes the operating manual. Paula can obtain trademark protection for

phishing

Posing as Platinum Bank, Oswald e-mails Nadia, asking her to update her personal banking information through a link in the e-mail. She clicks on the link and types in the data, which Oswald promptly sells to Moe. This is

True

Public domain means that rights to certain intellectual property belong to everyone

True

Quasi contract is a legal theory under which an obligation is imposed in the absence of an agreement

involved in the daily business operations of Timmy's Trees.

RayAnn is a corporate officer for Timmy's Trees, Inc. As a corporate officer, RayAnn is

win, because the spilled soda was foreseeable.

Reaching for a bottle of soda from a display in a Bargain Mart store, Cody slips in a puddle of spilled soda and falls, suffering an injury. Bargain Mart's employees are not aware of the spilled soda until Cody falls. In a suit against Bargain Mart, Cody will most likely

money laundering

Rick manages an illegal gambling operation in his Sushi Bar & Grill. Rick reports the profits of the gambling operation as income from Sushi's legitimate activities on its tax returns. This is

trade secrets law.

RockStar Software, Inc., develops a new series of performance-related video games. This software is most likely protected by

legally sufficient

Rollo promises to perform, for a price, shoe repair services in affiliation with Togs 'n Things, a clothing store. To support a contract, the consideration exchanged by the parties must be

sent

Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Relay's acceptance by e-mail will be considered effective when

more than one year.

Smitty, driving while intoxicated, causes a car accident that results in the death of Tiffany. Smitty is arrested and charged with a felony. A felony is a crime punishable by death or imprisonment for

specific performance.

Sonny agrees to buy a unique collection of Olympics memorabilia for $7,000 from Jana and sends $1,500 as a down payment. When Sonny sends Jana the rest of the price, she refuses to ship the collection. Sonny should seek

is generic

Standard Corporation can not claim a trademark in the phrase "Quality Is Standard" if the phrase

False

Stealing television cable service is not a crime

True

The elements of fraud include the innocent party's justifiable reliance on a misrepresentation of a material fact

True

The intention to enter into a contract is judged by objective facts as interpreted by a reasonable person

bribery

The offering, giving, receiving, or soliciting of something of value for the purpose of influencing the action of an official in the discharge of his or her public or legal duties

False

Thinking about killing someone constitutes the crime of attempted murder.

allows minority shareholders to be represented on the board

Thor Power Products Corporation permits its directors to be elected by cumulative voting. This

True

To qualify as substantial performance, the performance must not vary greatly from the performance promised in the contract.

a public figure.

Toni files a suit against Universal Media Corporation for defamation. Actual malice must be shown for recovery of damages if Toni is

True

Tortfeasor is the term for a person who commits a tort.

False

Trademark dilution requires proof that consumers are likely to be confused by the unauthorized use of the mark.

a service mark

Trek Transport Company uses a mark associated with its name to distinguish its services from those of other trucking firms. This mark is

False

Under the "danger invites rescue" doctrine, a person who tries to rescue another individual from harm is liable for any injuries to the individual.

self-defense

Vance points a gun at Workman, threatening to shoot him. Workman hits Vance, causing his death. Charged with homicide, Workman can successfully claim as a defense

no contract, because Wanda merely expressed her intention to enter a future contract

Wanda tells Vito that she plans to buy his Chocolate Goodies store some day. Vito says, "I won't sell," but later changes his mind and sends to Wanda a letter of "acceptance." Wanda and Vito have

an implied contract.

When Jeff's car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff's obligation to pay the bill, this is

True

When anticipatory repudiation occurs, the nonbreaching party is permitted to bring an action for damages immediately.

if the mistake negates the mental state necessary to commit a crime

Yvon is charged with the crime of theft for taking Zach's backpack, which Yvon mistakenly thought was hers. A mistake of fact is a defense

implied contract

a contract formed in whole or in part from the conduct of the parties (as opposed to an express contract)

executed contract

a contract that has been completely performed by both parties

executory contract

a contract that has not yet been fully performed

felony

a crime, typically one involving violence, regarded as more serious than a misdemeanor, and usually punishable by imprisonment for more than one year or by death.

quasi contract

a fictional contract imposed on parties by a court in the interests of fairness and justice

patent

a government grant that gives an inventor the exclusive right or privilege to make, use, or sell his or her invention for a limited time period

limited liability company

a hybrid form of business enterprise that offers the limited liability of a corporation but the tax advantages of a partnership

corporation

a legal business form that complies with statutory requirements

fair use

a limitation and exception to the exclusive right granted by copyright law to the author of a creative work

misdemeanor

a minor wrongdoing.

offer

a promise or commitment to do or refrain from doing some specified act in the future

mailbox rule

a rule providing that an acceptance of an offer becomes effective on dispatch

voidable contract

a valid contract

acceptance

a voluntary act by the offeree that shows consent, or agreement, to the terms of an offer

trademark

a word, symbol, sound, or design that has become sufficiently associated with a good or has been registered with a government agency

partnership

an agreement by two or more persons to carry on, as co-owners, a business for profit

click-on agreement

an agreement that arises when a buyer, engaging in a transaction on a computer, indicates assent to be bound by the terms of an offer by clicking on a button that says, for example, "I agree,"

anticipatory repudiation

an assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time

specific performance

an equitable remedy requiring exactly the performance that was specified in a contract. Usually, it is granted only when money damages would be an inadequate remedy and the subject matter of the contract is unique (for example, real property)

shareholders

an individual or institution (including a corporation) that legally owns a share of stock in a public or private corporation

counteroffer

an offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer

defamation

anything published or publicly spoken that causes injury to another's good name, reputation, or character

assault and battery

assault - any word or action intended to make another person fearful of immediate physical harm battery - the unexcused, harmful or offensive, intentional touching of another

slander

defamation in oral form

libel

defamation in writing or other form having the quality of permanence (such as a digital recording)

money laundering

engaging in financial transactions to conceal the identity, source, or destination of illegally gained funds

fraud

is intentional deception made for personal gain or to damage another individual

mens rea

mental state, or intent. Normally, a wrongful mental state is as necessary as a wrongful act to establish criminal liability

tortfeasor

one who commits a tort (a civil wrong not arising from a breach of contract)

phishing

the attempt to acquire financial or other personal information from consumers by sending email messages that purport to be from a legitimate business

contractual capacity

the capacity required by the law for a party who enters into a contract to be bound by that contract

copyright

the exclusive right of an author to publish, print, or sell an intellectual production for a statutory period of time

embezzlement

the fraudulent appropriation of funds or other property by a person to whom the funds or property has been entrusted

forgery

the fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another

invasion of privacy

the intrusion into the personal life of another, without just cause, which can give the person whose privacy has been invaded a right to bring a lawsuit for damages against the person or entity that intruded.

sole propietor

the simplest form of business organization, in which the owner is the business

consideration

the value given in return for a promise or a performance in a contractual agreement

larceny

the wrongful taking and carrying away of another person's personal property with the intent to permanently deprive the owner of the property

duress

unlawful pressure brought to bear on a person, causing the person to perform an act that she or he would not otherwise have performed