Exam 1 - Business Law - Chapters 1, 2, 3, 4, 6, 7, 8, 10, 11

Alvin pays for and downloads a new exercise app on his smartphone. He believes that because he paid for it, he can legally make copies and sell them to his friends at the gym. He is wrong because

he only obtained a license to use the app—not to own and resell it

A state court can exercise jurisdiction over property located within its boundaries. This type of jurisdiction is called

in rem jurisdiction

If a grand jury issues the charges against an individual then the charge is called a (an)

indictment

If Sal sends Max a text telling Max that his wife has just died, when in fact, Sal knows this is untrue, Max may be able to sue Sal for

infliction of emotional distress

In order to commit an intentional tort, a person must cause harm and

intend to commit the act that caused harm

Case 7.2, People v. Sisuphan, the issue was

intent to defraud

Ambiguous terms in a contract are generally

interpreted against the party who drafted the contract containing ambiguous language

If a person has been previously determined to be mentally incompetent by a court then any contract entered into by that person

is void

If a contract can be fully performed in six months from the day the contract is formed,

it does not need to be in writing to be enforceable

A fact to which a reasonable person would attach importance in determining his or her course of action is called a

material fact

A wrongful mental state is known as

mens rea

The business-extension exception to the Electronic Communications Privacy Act (ECPA) permits employers to

monitor employees' personal communications made in the ordinary course of business

If your actions harm someone else but you never intended to cause that harm, you may nevertheless be liable for the tort of

negligence

Generally, past consideration is

no consideration

One of the most common cyber torts is

online defamation

The primary focus of utilitarian ethics is the

outcome of actions

The sharing of resources—such as files, hard drives, and processing styles—among multiple computers without necessarily requiring a central network server is called

peer-to-peer (P2P networking

Administrative agencies are created to

perform a specific government function with which Congress or a state legislature has neither the time nor the expertise to deal

Under the Uniform Commercial Code, contracts for the sale of goods will not fall under the Statute of Frauds if the goods are

priced below $500

Duty-based ethical standards often derive from

principles rooted in religion

The establishment clause

prohibits the government from creating a state-sponsored religion

The doctrine that can prevent an offeror from revoking an offer once the offeror has detrimentally relied on it is known as

promissory estoppel

In contract law, consideration means

something of value received or promised underlying the bargain

Liability for injury can be imposed for reasons other than fault under the doctrine of

strict liability

A person ordinarily is not held liable for committing a crime if that person

suffers from a mental disease and lacks substantial capacity to appreciate the wrongfulness of his or her acts

Pursuant to the doctrine of stare decisis, if an appellate court establishes a rule of law, the principle must be adhered to by

that court only

If you defame someone, you injure

that person's good reputation

The first ten amendments to the U.S. Constitution are known as

the Bill of Rights

The requirement that no person be deprived of "life, liberty, or property without due process of law" is found in

the Fifth Amendment and the Fourteenth Amendment

The United States Supreme Court has held that privacy rights are protected by all of the following Constitutional Amendments except for

the Second Amendment

The fact that U.S. courts consider the rules of law announced in court decisions, or case law, as a primary source of law stems from

the common law

Contracts are governed by

the common law as modified by statutory law and administrative law

Two fundamental approaches to ethical reasoning in a business environment are

the duty-based and outcome-based approaches

Under the common law, a memorandum evidencing an oral contract must include

the essential terms

Adequacy of consideration concerns

the fairness of a bargain

The doctrine of judicial review allows

the judiciary to decide whether laws or actions of the other branches of government are constitutional

Civil law can be best described as

the law that governs relations between persons and between persons and the government

International law sources include

the laws of individual nations, and treaties and international organizations

Remedies are best described as

the legal means used to enforce a right or to compensate for the violation of a right

Venue refers to the

the most appropriate location for a trial

The common law rule governing the admissibility in court of oral evidence is called

the parol evidence rule

Release will not be binding if

the parties do not voluntarily agree to it

To help ensure that they are making ethical business decisions, corporate employees should evaluate their actions based on

the six basic guidelines provided by the George S. May International Company

A state law that directly conflicts with a federal law is invalid under

the supremacy clause

In Case 8.3, Wagner v. Columbia Pictures Industries, Inc., the main issue regarding contract interpretation was

the unambiguous statement of the conditions under which the parties were to share the films profits and whether those conditions had occurred

Social media posts may be included in discovery and litigation because

they may establish a person's intent or what he or she knew at a particular time

When can social media posts be used in criminal investigation and by administrative agencies?

to detect and prosecute criminals

When a person enters onto, above, or below the surface of the land that is owned by another without permission a

trespass to land has occured

A contract in which the terms of the agreement are so unscrupulous or grossly unfair as to be "void of conscience"

unconscionable contract

Promises made in return for actions or events that have already taken place are

unenforceable

The two forms mistakes of fact are

unilateral and mutual

A lender who charges an interest rate above the lawful maximum commits

usury

Which of these is not a type of duty-based ethics a. religious ethical standards b. Kantian ethics c. the principle of rights d. utilitarianism

utilitarianism

Business ethics focuses on

what constitutes ethical behavior in the business world.

Ethics can be defined as the study of

what constitutes right and wrong behavior

Case 4.3, Taylor v. Baseball Club of Seattle, L.P., involved a Mariners fan, Delinda Middleton Taylor, who was injured by a baseball that entered the stands during team warm-ups. The issue in the case was

whether the risk of injury from an errant baseball was foreseeable to a reasonable person with Taylor's familiarity with baseball

Tort is the French word for

wrong

A crime can be defined as

wrong committed against society as a whole

A secondary promise to a primary transaction, such as a promise made by one person to pay the debts of another, is called

a collateral promise

An executory contract is

a contract not yet fully performed

The basic purpose of tort law is to

provide remedies for the invasion of protected interests

The term cybersquatting means

registering someone else's mark as a domain name and then offering to forfeit the name for a price

Police powers allow states to

regulate private activities to promote public order, health, safety, morals, and general welfare

If a party is fraudulently induced to enter into a contract, that party can

rescind (cancel) the contract

The key difference between larceny and robbery is that

robbery involves force or fear; larceny does not

The performance that takes place after an accord is executed is called

satisfaction

One party's intent to deceive the other party to a contract is known as

scienter

Under the First Amendment, corporate political speech is given

significant protection

The general rule with regard to intoxicated persons who enter into contracts is that

some contracts can be avoided by the intoxicated person

The general rule with regard to minors who enter into contracts is that

some contracts can be avoided by the minor

Which of the following is not an element of fraud?

An innocent party under twenty-one years of age

Which of the following is a defense to a negligence claim?

Assumption of the risk

Which tort provides a basis for a criminal prosecution as well as a tort action?

Battery

Which of the following statements need to be true for the Anticybersquatting Consumer Protection Act (ACPA) to apply? a. The domain name is in another language b. The domain name is identical or confusingly similar to the trademark of another c. The one registering or using the domain name has a "bad faith intent" to profit from that trademark d. Both b and c

Both b and c

The five-step procedure designed by ethics consultant Leonard H. Bucklin of Corporate-Ethics.US for investigating and solving ethics problems is known as

Business Progress Pragmatism

Perhaps the most significant federal statute specifically addressing cyber crime is the

Computer Fraud and Abuse Act

The commerce clause of the U.S. Constitution authorizes

Congress to regulate commerce

If Edgar orally agrees to buy a car from Sally for $10,000 and Sally creates a written contract with all the terms of the sale and signs it,

Edgar cannot be enforced to go through with the sale because he has not signed the contract

The American legal system has been strongly influenced by

English law

The landmark decision in the case of Miranda v. Arizona concerned a person's rights under the

Fifth Amendment

U.S. businesspersons are forbidden from bribing foreign officials to ensure advantageous contracts by the

Foreign Corrupt Practices Act

Which of the following is not a defense available to a person who is sued for assault and battery?

Lack of consent

The Safe Web Act also provides a "safe harbor" for Internet service providers (ISPs) giving them immunity from which of the following?

Liability for supplying information to the Federal Trade Commission concerning possible deceptive conduct in foreign jurisdictions

Which of the following activities is not prohibited by the CAN-SPAM Act?

Sending junk mail via the U.S. Postal Service

Which of the following is not a relationship that is likely to lead to undue influence?

Store manager-shopper

Which act was passed to give significant protection to owners of copyrights in digital information?

The Digital Millennium Copyright Act

Which agency investigates consumer complaints of privacy violations?

The Federal Trade Commission

Which act requires companies to set up confidential systems so that "red flags" can be raised about suspected illegal and unethical business practices?

The Sarbanes-Oxley Act

Which act prevents cellphone companies and social media networks from divulging private communications to certain entities and individuals?

The Stored Communications Act

The federal court system does not include the

U.S. Chamber of Commerce

In which of the following situations would Internet users have a reasonable expectation of privacy?

When they enter their personal banking information online

Consideration is often broken down into two parts: something of legal value and

a bargained-for exchange

A court would be likely to apply the doctrine of strict liability to

a builder using dynamite to clear a housing sight

If one of nine justices disagrees with the others and writes a separate opinion, this opinion is called

a dissenting opinion

The requirements for a valid contract do not include

a fair price

A quasi contract can be defined as

a fictional contract

Which of the following is not a type of malware?

a hacker

A posttrial motion to set aside a verdict and enter a new verdict in favor of the nonprevailing party is known as a motion for

a judgment notwithstanding the verdict

The Statute of Frauds covers all of the following except contracts for the sale of

a new college history textbook

Cyber crime can be best defined as

a new way of committing crimes rather than a new type of crime

A long arm statute allows a court to exercise jurisdiction over

a nonresident defendant who has minimum contacts with the state in which the court is located

A contract is

a promise or agreement that can be enforced in court

When you are engaged in legal research, a citation means

a reference to a publication in which a legal authority can be found

A federal court can exercise jurisdiction if a case involves

a treaty, the U.S. Constitution, or a federal law

Written or electronic evidence of an oral contract is referred to as

a written memorandum

A written contract that is intended to be a complete and final statement of the terms of an agreement is referred to as

an integrated contract

Under the "responsible corporate officer" doctrine, corporate officers

are responsible for their own actions and also for the actions of employees under their supervision

Children do not assume the risks of the premises if they are attracted to the property by some object. This is referred to as the

attractive nuisance doctrine

The standard of proof in a criminal law case is

beyond a reasonable doubt

Social media has become a part of everyday business, and employees who criticize fellow workers or managers on social media outlets

can be fired for such actions, but a recent National Labor Relations Board ruling has changed the legality and ethics of such consequences.

Corporations

can be held liable for crimes, just as individuals can be

The general rule concerning the ability of a minor to disaffirm a contract for necessaries is that the minor

can disaffirm but will remain liable for the reasonable value of the goods

When both federal and state courts have the power to hear a case, these courts have

concurrent jurisdiction

If you are a victim of false imprisonment, you are

confined or restrained by another person intentionally and without justification

A severable contract

consists of distinct parts that can be performed separately, with separate consideration provided for each part

Quasi contracts describe

contracts implied in law

One of the major problems in pursuing an online defamation claim is that

discovering the identity of the person who posted the defamation is often extremely difficult

Forcing someone to enter into a contract through fear created by threats is known as

duress

One of the main purposes of contract law is to

ensure that certain promises are legally binding

Contractual capacity refers to a person's legal ability to

enter into a contractual relationship

Primary sources of law include

federal and state statutes, administrative regulations, constitutions, and court cases

Promissory estoppel was originally applied to situations involving

gifts

What does a business lose when another party uses a similar domain name?

goodwill

One reason that businesspersons may find it difficult to comply with the law is because

gray areas in the law make it difficult to tell how the law will be applied to a specific business situation

A state court can exercise personal jurisdiction over an out-of-state defendant if the defendant

had minimum contacts with the state

The federal court system does not include the

AAA

Which of the following types of contracts is not among the types of contracts and clauses that are often held to be contrary to public policy?

A contract for the sale of live farm animals

Which of the following contracts would not be required to be in writing to be enforceable?

A contract that can be performed within six months of being formed

Which of the following need not be included in a written contract?

A detailed description of every term involved in the contract