BUSN 201 Midterm A

Runners Feet, a shoe store, orders one hundred pair of athletic shoes from Speedster Inc. Absent a contrary agreement between the parties, title will pass to Runners Feet when

Speedster physically delivers the goods.

A holder will be deemed to have notice of a defect in an instrument if he or she has reason to know that it exists, given all the facts and circumstances known at the time.

T

Outcome-based ethics determines what is ethical by looking at the potential benefits and harms of a given action.

T

Political speech by corporations falls within the protection of the First Amendment.

T

The system of checks and balances in the U.S. Constitution allows each branch of government to limit the actions of the other branches.

T

Under the UCC, if a dispute occurs over the existence of a contract, a purchase order can be sufficient to indicate that there is a contract.

T

When an award of punitive damages is grossly excessive, it furthers no legitimate purpose and violates due process requirements.

T

Talk, Inc., offers to buy from Ultra Corporation 1,000 phones with certain features. Without notifying Talk, Ultra timely ships phones with fewer features. With respect to the offer, this shipment is an acceptance and

a breach.

Via the Internet, Britta enters false code into the computer control system of Chicken Company, a food maker, to alter the levels of ingredients so that consumers of the food become ill. Britta is

a cyberterrorist.

Chris operates the Devil's Brew chain of coffee stands. "Devil's Brew" is

a trade name.

Grain Mill Company brings a suit against Milled Grain Company under the Anticybersquatting Consumer Protection Act, alleging that Milled Grain is profiting from a domain name that is confusingly similar to Grain Mill's trademark. If Grain Mill is successful, recovery may include

actual damages and profits in any amount.

Recharge Corporation makes batteries. Sol is injured when the Recharge battery in his phone bursts into flame. In Sol's product liability suit against the maker, alleging a design defect, the court may consider

an available alternative design.

The Uniform Commercial Code provides a set of rules governing

commercial transactions.

Pine Mills Inc. agrees to sell a certain quantity of plywood to Quality Lumber Company under a destination contract. Pine Mills must

deliver the plywood to a particular destination.

Pavers Inc. contracts to buy some heavy equipment from Earthmovers, Inc. Before either party performs, Earthmovers sells its assets to Excavation Corporation. On learning of the sale, Pavers is concerned about its contract with Earthmovers. Pavers should

demand assurances of performance from the seller.

Lyn is injured when a part of a building ledge breaks free and strikes her. If Lyn brings a successful tort action against the building's owner, she may be awarded special damages to compensate her for

monetary losses, such as medical expenses.

Liz and Moss disagree over the amount due under their contract. To avoid involving any third party in the resolution of their dispute, Liz and Moss could resolve their dispute through

negotiation

Beth, an accountant for Credits & Debits, acquires a negotiable instrument from Ellen by promising to pay its face value in thirty days. Beth acquires the status of an HDC when she

pays the face value due on the instrument.

Duty-based ethical standards are most likely to derive from

philosophical reasoning.

Commerce LLC owes Data Analysis Company $2,000. Commerce executes a note to Data as security for the debt. This security

satisfies the value requirement for HDC status.

Ski Shop sells a pair of skis to Tami. When Tami uses the skis, they snap in two. The cause is something that Ski Shop did not know about and could not have discovered. This is a breach of

the implied warranty of merchantability.

Franny is charged with a crime. Almost all federal courts and some state courts would not hold Franny liable if, at the time of the offense, as a result of a mental disease or defect, she lacked substantial capacity to obey the law and to appreciate

the wrongfulness of her conduct.

To operate practically as a substitute for cash or a credit device, a negotiable instrument must be

transferable without the danger of being uncollectable.

In the IDDR approach to making ethical decisions, the first "D" stands for what?

Discussion

A corporation can refuse to produce business records that might subject the firm to criminal prosecution.

F

Because laws may change, the ability to analyze and evaluate the legal ramifications of situations as they arise is not a lasting skill.

F

Because social media is so widespread, it is legal and ethical for a company to have social media policies limiting employees from criticizing the company.

F

Intentional deceit for personal gain may be unethical but it does not give rise to liability for fraud.

F

State statutes may allow purchasers of defective automobiles to pursue remedies in addition to those provided by the UCC. The seller or manufacturer is given opportunities to remedy the defect. This is called a warranty disclaimer.

F

Under a shipment contract for the sale of a certain quantity of solar panels, the seller is required to deliver conforming goods at a particular destination.

F

A belief in the possibility that a person committed a crime is sufficient probable cause to support the issuance of an arrest warrant.

F

If the owners of a certain grade of wheat stored in a single silo hold title as tenants in common, a seller-owner can pass title to a buyer only by separating the goods.

F

Laws to combat spam have been enacted which have stopped the flow of spam emails.

F

Eliza buys a new motorcycle from Fast Bikes, Inc. The most important factor in determining whether an express warranty is created is whether

Fast Bikes' promise becomes part of the basis of the bargain.

Civil law pertains to the duties that exist between persons or between persons and their governments, excluding the duty not to commit crimes.

T

Corporate social responsibility may increase a business's reputation or goodwill.

T

Works that are copyrightable include product packaging.

T

Business ethics looks at whether business decisions

are right or wrong.

To make a sale, Fran tells Gio that her Hyundai Kia has never been in an accident. This may give rise to an action for fraud if the statement is

false

The triple bottom line looks at all of the following except

how decisions impact the relationship between the U.S. and other nations.

When deciding to engage in corporate social responsibility, a key factor when selecting activities is

how the social activity relates to the business activities of the corporation.

When adopting duty-based ethics, corporations often demonstrate the duties they owe

in their mission statements and strategic plans.

Posing as eBank, Frank e-mails Grace, asking her to update her credit-card information through a link in the e-mail. She clicks on the link and types in the data, which Frank promptly sells to Hector. This is

phishing

Raul wants to transfer a check to Schmidt. The check is defective if it

- is undated. - contains handwritten terms. - is clearly stamped "insufficient funds." ! - all of the choices.

Which of the following is not a state or federal court system?

! Appellate courts

To the extent that it has not been modified by the UCC, the common law of contracts applies to sales contracts.

! F

To avoid unethical practices by a foreign supplier, an effective business practice is to

! have suppliers sign contracts affirming that they will behave ethically.

Don sends an e-mail to Eve, promising her a percentage of the amount in a foreign bank account if she will assist in transferring the funds to a U.S. bank account. Eve forwards her account number, but the funds are never sent. Instead, Don quickly withdraws the funds in Eve's account. This is

! identity theft.

Ryan negotiates an order instrument to Selina by delivery

with any necessary indorsement.

Ricard, an engineer, supervises the construction of a new mountainside roadway. The road collapses in a landslide due to faulty grading. Motorists injured in the collapse sue Ricard in a tort action for negligence. Under that theory, as a professional, Ricard is held to the same standard of care as

other engineers.