MGMT 254 Final Exam
To satisfy the requirements of due process, an agency handling a complaint must generally______, although there is no right to __________.
give notice and hold a hearing, trial by jury before an agency.
Jolene is a person of average intelligence, education, experience in business. Julie purchase insurance and paid the premium. The policy was mailed to her, but before they arrived a loss was suffered. When she read the policy, Julie could not determine whether the loss was covered because the policy was too difficult to understand. The loss is:
Covered because the insurer had an obligation to word the policy in an understandable way
A person has an insurable interest in property is destruction of that property would cause a monetary or pecuniary loss to that person
True
Administrators can create regulations that have the force of law.
True
Boycotts are always illegal, even when done with good intentions.
True
Equity steps in to fill the gaps and provide justice when the law is inadequate.
True
Homeowners insurance is a combination of the standard fire insurance policy and comprehensive personal liability insurance
True
It's an automobile collision results in a permanent serious disfigurement or death, a lawsuit may be brought against the party who was at fault
True
When a buyer makes a purchase without relying on the seller's skill adjustment, no warranty of fitness for particular purpose exist
True
When the parties opt to mediate to settle disputes, the losing party generally can appeal from such mediation to a court.
True
Bill purchases life insurance from life insurance for you. Three years later the company learns bills heart only has 25% function, which puts him at risk of early death. An incontestability clause ordinarily bars contest of the validity of a life insurance policy by the insured after the lapse of:
Two years
The right to privacy means that individuals
are protected against intrusions by individuals.
The time-honored rules that courts used to solve similar problems for hundreds of years or decades is called precedent.
False
There're multiple types of fire. All fires that cause damage are classified as hostile fires
False
This statement "this chainsaw is The chainsaw is the market" will most likely create an express warranty
False
Uniform state laws were adopted by individual states after being written by Congress
False
Angelina go shopping at Nordstrom's. The clerk hoping her makes many statements about how that outfit looks on Angelina. Which of the following statements made by the clerk does not likely constitute an express warranty?
"this looks beautiful on you"
All of the following situations reflect a possible conflict of interest except:
A CEO takes a cut in pay to decrease company overhead
Loni Smith suffered the loss of her cottage as a result of a chimney fire that was caused by the ignition of shit in the chimney this fire would be described as:
A hostile fire
You are a student in business law and have been asked by an international student to explain what a crime is. You tell the student that it generally consist of:
A mental state and an act or omission
Professionals include doctors, lawyers, engineers, and others with advanced education or training. These professions have a duty to perform their jobsAt the level of coolant
A reasonable professional in the same business
And apparently voluntary agreement my in fact not be voluntary if:
All of these
Sarbanes-Oxley would prohibit which of the following individuals from serving on an audit committee of the company board?
All of these
Angela requested a price from Carpenter on a mahogany table to be built according to Angela specifications. Because mahogany is difficult to obtain, Angela agreed to pay the cost of the wood plus $175 and the Carpenter agreed to build it. Which of the following is correct?
Although the price is somewhat unclear, the parties have entered into a contract
Julia and her husband wright purchase in the store a building in downtown Lafayette. Their insurance agent tells them that for property insurance, and insurable interest must exist:
At the time of the loss
The filing of a bankruptcy petition operates as an_____, which prevents creditors from taking action, such as filing suits or foreclosure action, against the debtor
Automatic stay
Alice told Beth, "I'll give you $300 dollars for that necklace." Beth replied, "$350." Alice said, "no thanks." Beth then said that Beth accepted the $300, but Alice was no longer interested and said that there was no contract. Beth insists there is a contract. Results?
Best counter offer of $350 dollars terminated Alice's offer of $300
You believe your account has not held their professional requirements in the way they handled reporting your financials and that lead to your inability to get a loan. Your attorney tells you that an accountant may be able to raise the defense of the____in a malpractice suit by third-party
Contract rule
You and three friends from Krannert have decided to start a consulting business and are considering the best entity form to use. The government's permission is required to create:
Corporations
In the US, money is the default remedy in many civil disputes. However, when the law does not offer an adequate remedy through money, ________ is a body of law that provides justice.
Equity
A person who is harmed by a conspiracy that violates the Sherman Antitrust Act may sue the wrongdoers for treble damages, which is four times the actual damages.
False
A person who is prevented from enforcing a contract because of the statute of frauds also is prevented from recovering the value of services, property, or money furnished the other party to the oral contract.
False
A state supreme court hears every case a party appeals to it.
False
An agreement to charge an agreed-upon price or to set maximum or minimum prices between or among competitors is called price fixing but it is not per se a violation of the Sherman Act.
False
An output or requirement contract is not enforceable unless the parties include an estimate of prospective amounts.
False
And insurer may cancel any contract of insurance by the insurer's unilateral act as long as the insured gives advance written notice
False
Daniel asserts he had a legal right. Daniel is really saying he has an obligation to perform or refrain from performing an act.
False
George agrees to lease Alice a home for 1,000 a month, In a benefit-detriment approach, consideration is a benefit received by the promisee.
False
Jo was told that cost is expenses of administration of the bankruptcy case, including trustee fees are paid before any money is disbursed to secured or unsecured creditors
False
Output contract is too vague to be a legally-enforceable agreement
False
Requiring buyers to purchase one product in order to get another is acceptable practice and not a violation of the Sherman Act.
False
Sabrina is a nationally-known pediatric surgeon in Chicago, Illinois, and sells her practice. The contract may specify that Sabrina will not practice within a 100-mile radius of Chicago for one year.
False
The parol evidence rule does not apply to the sale of goods.
False
The term "course of dealing" refers to the language and customs of an industry. So if you have a construction contract, it refers to how the contract would be handed in that specific industry.
False
Through incorporation by deference, a contract can consist of both the original document and the detailed statement that is incorporated in it.
False
Under the ____________ Amendment, agency officials have the right to conduct _____________ with a warrant, but a(n) __________ inspection is permitted when violations are dangerous to public health and safety
Fourth, inspections, warrantless
You're trying to determine whether a LLC is the right business structure for your new venture. The following statements concerning LCC's are all incorrect except:
Income flows through to the members based on their proportionate interest in the company
If the offeree dies before the offer has been accepted, the offer:
Is automatically revoked by the death of the offeree
The Blanchard and Peale three-part test for resolving ethical dilemmas consists of the following questions:
Is it legal? Is it balanced? How does it make me feel?
When evaluating a contracts question, what is the first question you should ask yourself?
Is this contract governed by UCC or Common Law?
Jeff purchased in good faith a warehouse receipt for 1,000 pairs of running shoes without notice of any defense to it, for value, and in the regular course of his business. Unknown to Jeff, the goods had been stolen from Jane and delivered to the warehouse that issued the receipt purchased by Jeff. Which of the following statements is true?
Jane is entitled to the goods and will prevail over Jeff
Mary offered to sell Mike several pieces of rare Chinese art at a very good price because they were duplicates in her own collection. By could not accept the offer at the time, but he didn't give Mary $500 in return for her promise to keep her offer open for three weeks. Mike returned with the agreed-upon balance two weeks later to find that Mary already had sold the pieces she had offered to self to him. Mary explained that she had been able to get a better price from another buyer. She offered to return Mike's $500 and insisted that this was all she was obligated to do. Is Mary right?
No, an option contract was formed
Jon visited a garage sale and found a baseball card collection which he believed was worth over $2000. He bought the collection for $75 from Wallace. Later John discovered the collection was essentially worthless and demands his money back from Wallace. Must Wallace refund Jon's money?
No, the contract is enforceable because Jon was operating under a unilateral mistake and Wallace did not know the value of the cards
When the debtor has fewer than twelve creditors, how many must sign an involuntary petition?
One, assuming that the creditors unsecured claim is at least $15,325
None of the following transfers maybe set aside as preferences by the bankruptcy trustee except for:
Payments to a debtor's relative
Which of the following is/are an example of limited or special jurisdiction court/s?
Probate, Juvenile, and Domestic Relations Court
A____contract is a contract to buy all that a buyer needs from the seller
Requirements
Suppose a Dodge truck slams into a crowd in the driver claims the brakes failed. All of the following are potentially liable in a defective product suit except:
The bystanders
Virgene, a widow, just sold a piece of farmland. She will live off of that money during her retirement. Virgene dotes her son, Charles who asks her to invest her money in his company, which is faltering. He tells her that if she does not lend him the money she will never see him again. Virgene is afraid of being alone and agrees to Charles' request, but soon changes her mind and asks for her money back. Charles claims they have formed a binding contract. What is your conclusion?
The contract is voidable based on undue influence
If it insured person tells her current husband that she is going to name him as beneficiary of her life insurance in place of her former husband and dies a year later without having taking any further steps with respect to the change of the policy beneficiary, the insurance company must pay the proceeds of the policy too:
The former husband
A wrong that arises from a violation of a private duty is called a:
Tort
A contract for the sale of goods with a price of $500 or more requires written proof to be enforceable
True
A firm offer is an offer that states that is to be irrevocable, or irrevocable for a stated period of time.
True
A professional soccer team contracts with a player for a five year, $25 million price, but can cancel the contract at any time. A promise that in fact does not impose any obligation on the promisor is known as an elusive promise.
True
Allison takes a suit to Sparkle Dry Cleaner. This is a bailment, which is a special form of a sale of goods in which possession is transferred to a bailee.
True
An oral contract to sell specially manufactured goods is enforceable if the goods cannot be sold to other buyers, and the manufacturer has made a substantial progress in manufacturing the goods
True
Contractual capacity can exist even though a party does not understand every provision of the contract
True
If a buyer refuses to pay for goods after an acceptance that was not revoked, the seller may bring action to recover the purchase price and any incidental damages
True
If a merchant receives and cashes a check for partial payment of a debt and the check bears the notation that the amount is in full payment of a disputed sum, the total debt is released.
True
If either the offeror or offeree he dies or becomes mentally incompetent before the offer is accepted, the offer is automatically terminated
True
If the main purpose of a promise is to pay the debt of another and benefit the promisor, the statute of frauds is not applicable, and the oral promise to pay the debt is binding.
True
Nobel economist Milton Friedman believes that government regulation of business interferes with the free enterprise system.
True
One of the concerns reflected in Sarbanes-Oxley was the auditors were not exercising sufficient discretion and independence in conducting audits of their clients
True
Procedural law delineates the steps that must be adhered to when enforcing rights and liabilities.
True
Suppose Sports Etc. sells $10,000 worth of goods to Cycle Sports, but Cycle Sports refuses to take possession. When a buyer has a broken a sales contract, the seller may resell the goods or the balance of them in the seller's possession
True
When persons enter into an agreement, it is presumed that the buyer and seller intend the agreement to have some effect.
True
When purchasing from my website, the website turns generally become the contract of the parties and are legally enforceable
True
You take your Ford Mustang to the dealership to have the transmission repaired. Accordingly, the contract has both services and materials included, so the contract is classified according to the element that has the greater cost
True
You're considering opening a franchise and have researched the relationship between franchisors and their franchisees. Franchises may be found liable for the wrongful conduct of their franchisees on an apparent authority theory when the conduct of the franchisor create an appearance of authority
True
Your professor believes it's important to have practical tools to help you make ethical decisions. In apply the "front-page-of-the-newspaper" test to a contemplated course of conduct one should ask
Would I be found criminally liable if this winds up on the front page of the newspaper?
A right is defined as:
a legal capacity to require another party to preform an action.
All of the following satisfy the Statute of Frauds' except:
a record that omits quantity
The Securities Exchange Commission (SEC) was created as part of an act of Congress. The SEC creates:
administrative regulations.
You're purchasing your first home and want to make sure you understand exactly what you are buying. Your real estate agent tells you to get a summarized report of title to property which is called:
an abstract of title
The parol evidence rule:
applies to complete written contracts
The rights and duties of a warehouse are for the most part the same as those of a(n):
bailee under an ordinary mutual-benefit bailment
When a carrier accepts goods for land shipment, it ordinarily issues to the shipper a(n):
bill of lading.
The types of civil cases that a private citizen can file in federal district courts include:
cases between citizens of different states that involve damages of $75,000 or more
Cycle Sports and Sports Etc. have entered various contracts over the last ten years. These contracts are a ________, which represents a pattern of performance between the parties to a contract.
course of dealing
Substantive law:
creates, defines, and regulates rights and liabilities
The farmers around Indiana are in the middle of harvesting their fields. Those harvested crops would be an example of ___________.
existing goods
Assault is the wrongful touching of another person without that person's consent
false
Because a corporation is not a human being, it cannot be convicted of a crime
false
Generally, advertisement, catalog prices, and circulars for offers that can be excepted
false
In a limited partnership, limited partners are not responsible for the debts of the firm if they engage in management activities.
false
You're considering purchasing your first home and want to make sure you understand the law. You've been told a deed is not necessary to transfer title to land when the land is a gift. Is this true or false?
false
Your friend is renting an apartment and believes that they as the tenant has the absolute right to use the premises for any purpose. Is this true or false?
false
a trespass to personal property is an unpermitted entry below, on, across, or above the land of another
false
An agreement not to compete is enforceable:
in the sale of a business
An oral understanding is not binding if:
the parties intended to formalize their understanding with a written agreement.
Someone accused you of misappropriating a trade secret, and you ask your attorney what that means. She tells you the measure of damages for misappropriation of a trade secret is:
the profits earned by the 'thief' derived from the misappropriation of the trade secret
One thing professors wrestle with is how much of a book or article can be used without violating the copyright laws. The "Fair Use" principle provides some safe harbors for use. In determining whether limited use of copyrighted material may be permitted a "fair use", courts will consider:
the purpose and character of the use, including whether such use is of a commercial nature of is for nonprofit educational purposes, the amount and substantiality of the portion used in relation to the copyrighted work as a whole, and the nature of the copyrighted work
Under Article 2, when two parties intend to form a contract but the acceptance includes conflicting terms:
there is a contract based on the terms of the offer and acceptance that are consistent, but the conflicting terms in the acceptance cancel out
Dealing honestly, reasonably, and in good faith means all the following except:
these are express duties in every contract for services
A business formula, information compilation, or device that provides an advantage over competitors that do not have it is known as a:
trade secret
A corporation is separate legal entity capable of owning property, contracting, and being sued in its own name.
true
A landowner is not under any duty to warn of dangers or to make the premises safe to protect the trespasser from harm.
true
A new restaurant opens in a leased space in downtown Lafayette. However, a month after is opens, the building is destroyed by a fire. If a leased building is destroyed, the lease is not terminated until proper notice is given.
true
A public warehouser has a specific lien against the goods stored for reasonable costs incurred from the storage.
true
You're talking with a classmate about the difference between a trademark and trade dress. She tells you that trade dress refers to the packaging look and overall image of a product. Is this true or false?
true
A judge rules on the admissibility of evidence presented in the trial.
True
To make an offer, the offeror must appear to intend to create a binding obligation
True
You and three friends from Krannert have decided to start a consulting business and are considering a LLC. A court can disregard the LLC entity to hold one or more members personally liable in any of the following situations, except:
When members vote to make substantive changes to the operating agreement
________ is a transfer of possession - but not title - to personal property.
a bailment
One tool your professor gave you to act ethically is the Font-Page-of-the-Newspaper Test. This test helps managers view ethical decisions in terms of public disclosure of the proposed conduct.
true
A trespasser was injured on your grandparent's farm and has threatened to sue them for negligence. Which of the following duties does a landowner owes to a trespasser?
The duty to refrain from causing intentional harm once the presence of the trespasser is known.
When a plaintiff sues on the basis of strict tort liability, the action is subject to:
the appropriate state's tort statute of limitations
You will be headed to Italy for the summer to study abroad and decide to assign your lease to another student for the month will be gone. If the lease is signed, who is liable for the rent?
the assignee
When goods are delivered to a common carrier for immediate shipment and while they are in transit, who is normally liable for any loss or damage to the goods?
the carrier
A friend has a copyright for a play and is explaining it to you. She says an owner of a copyright may license some of his or her rights to another in exchange for royalty payments. Is this true or false?
true
A friend has asked you if she can get a copyright for her photos. You tell her that in order for a work to be copyrightable, it must possess a significant amount of creativity. Is this true or false?
true
Donovan, Andrea, and Elliott are trying to decide what business form to use if they go into business together. They are told corporations are subject to a form of double taxation. This is:
true
Jill sues her CPA for malpractice. She alleges that the CPA's failure to fulfill reasonable standard of care cost $100,000 in extra interest and penalties. She is in a contributory negligence state. If the jury finds that Jill is 10% at fault, what will she recover as damages?
$90,000
The fifth amendment to the United States Constitution's protection against self incrimination applies to:
Individuals only
Claudia owed Wendy money. Space Wendy called Claudia's home and work several times per day for five weeks asking for repayment, with some of the calls coming after midnight. Wendy might be liable for:
Intentional infliction of emotional distress
Ruth sent Mark an email message telling Mark that his wife Anna had been killed in a car accident, and Ruth knew this was untrue. Mark may be able to sue Ruth for:
Intentional infliction of emotional distress
What are the elements required in a crime and intentional tort?
Mental intent and actus reus
Under the____Act, Auditors are to report any fraud at the company to management and the audit committee, and maybe eligible for____
SOX, whistleblower awards
To insure that audit partners do not become entrenched, Sarbanes-Oxley requires audit firms to change audit partners at least once every____Years
Seven
Right has decided now that he's married and has children life insurance would be a good idea to provide for his family in the event of his death. What type of insurance is written for specified number of years and terminates at the end of that period?
Term insurance
The degree of care required of a person is:
That degree of care a reasonably prudent person would exercise under similar circumstances
A court will not reverse an agency's decision merely because the court would have made a different decision based on the same facts.
True
You've been asked what a significant difference between an illustrative agency hearing and tell your friend the key difference is that:
There is no right of trial by jury before the agency.
Arthur was an involuntary petition into bankruptcy by three of his creditors. When the trustee reviewed Arthur's books and records, the trustee discovered the following transactions:(A)Three weeks before the filing of the petition, Arthur paid cash for $17,000 worth of inventory for his store; And(B) 12 days before the filing of the petition, Arthur paid $300 in full satisfaction of his stores most recent electric bill. The trustee is considering attempting to set aside both of these transfers as preferential transfers. Discuss the advisability of the trustees attempt to set aside these transfers. As to b
This is a purchase for something received earlier in the ordinary course of business and allowed
If there are 12 or more creditors, at least____of those creditors whose unsecured and undisputed claims total____or more must sign the involuntary petition
Three; $15,325
Defamation is a broad category of laws that protect people and companies from false statements made about them. An absolute privilege is available as a defense to slander when
a witness testifies in a court proceeding
Congress is a bill that would create a new agency. As the legislative director to Sen. James Smith, You need to tell him what administration agencies can do. In general, an administrative agency can be created to perform:
all three of the functions of government.
Before an agency can begin rule making proceedings it must be given jurisdiction
by congressional enactment in the form of a statute
Luke intentionally attempts to have Shelby break a contract with Ben. Luke will be liable under theory of tort?
contract interference
A car accident occurred between Jim and Joe with no witnesses. Joe sues Jim for damages. If Joe has either engaged in or refrained from actions that are at least partially to blame for his injuries, what negligence has occurred?
contributor y
Allison is called as a witness in a robbery trial to testify for the prosecution. When testifying at trial, Allison will undergo ______ by the prosecutor, and a(n) ________ by defense counsel.
direct examination, cross-examination
A crime consists of three elements: the mental state, the intent, and the act
false
Jon manages a Stop & Shop. His employee blackmails an official on behalf of the store. Because it is a business crimes, Jon cannot be held criminally responsible for the conduct of his employee
false
You are not protected from unreasonable searches by the right to privacy in which of the following scenarios:
in the commission of a crime.
You work for the attorney general of the state of New York, who is annoyed at what he believes is improper raised prices. If this is the effect of an antitrust violation to raise prices, then
the state attorney general may bring a class action suit for damages
Due process includes the right to be heard, question witness, and present evidence
true
In Indiana, former employers are protected by a qualified privilege for true comments made about former employees who are applying for jobs at other companies
true
The use of someone's car without person's permission is a trespass to personal property
true
There are several defenses available when the standard of strict liability is applied
true
You've just reviewed the Microsoft case we discussed in class and want to test your understanding of its concepts. A(n) ___________ occurs when the seller makes a buyer who wants to purchase one product buy an additional product that he or she does not want
tying agreement
You in three friends from Krannert have decided to start a consulting business and are considering a limited liability corporation. Members of a limited liability company share profits:
According to the terms of the operating agreement
A right of ________ refusal is the right of the party to meet the terms of a proposed contract before it is executed, such as a real estate purchase agreement.
First
You in three friends from Krannert have decided to start a consulting business and are considering a limited partnership. If no LP certificate is filed what is the result?
Both general and limited partners are fully liable
Which of the following are required to have a valid, enforceable contract?
Form required Competent Parties Lawful purpose Agreement Genuine assent Consideration
John has purchased a plot of land that is bound by a river on one side and another parcel of land on the others. He has no access to his land. He negotiates with his neighbor Bob for access across his neighbor's land. What is the name of John's estate? What has John negotiated for with Bob? What is the name of Bob's estate?
Dominant Estate Easement Servient Estate
Arbitration is a dispute making process that occurs in a court of law.
False
Bankruptcy law does not regulate the banner in which the assets of the debtor are distributed; instead, distribution of the debtors assets is solely within the discretion of the trustee
False
The known user role imposes liability on the accountant for malpractice when he can foresee the parties who rely on his work in the financial statements
False
The right to sue for damages sustained from a defective product is reversed exclusively to the original purchaser of the product
False
To be engaged in warehousing, an enterprise must have appropriate storage buildings.
False
Under the known user rule the identity of the particular user must be known to hold the accountant liable for malpractice
False
Josh purchases life insurance on his children family in Brody. Two years later one of the boys dies in a tragic accident. At the trial, the insurance company argues that the policy is ambiguous. If the court finds that a provision in the insurance policy is ambiguous:
It is interpreted against the insured
A customer went into a store and saw a beautiful leather jacket bearing get a price tag of $29. The customer handed the cashier at a $50 bill and said, "Hi except. We have a deal." The cashier then noticed the price tag and told the customer an error had been made and that the price was $229. In this case:
No contract was formed because the customers offer was refused
A member of the cleaning crew takes information from waste basket at your county firm and then purchases stock based on that information. You threw it away because it was bad information. This person sues you for his losses. ____Impose liability on the accountant to a total stranger who gets possession of the accountant's work and then sustains a loss because of a false statement in the work
No courts
When the FTC or DOJ evaluate mergers under the Clayton Act, they can request a divesture order which is:
Not: An order by a quarter requiring an enterprise to dispose of its inventory.
Albert purchases is soup from Tyler, but Albert relies on Tyler's expertise to pick the perfect interview suit. Which of the following implied warranties is created when Albert relies on Tyler to pick out the goods that the buyer requires to meet a stated need?
Not: Merchantability
Suppose Devonne signs a contract to purchase a cottage from Anthony, but Anthony later refuses to transfer title to the cottage to Devonne. Devonne could force Anthony to transfer title to the cottage by asking a court for an order of ....
Not: substantive law.
Your friends have heard that there is a way that a limited liability company maybe classified as a partnership for tax purposes. You tell that that can be done if:
Such election is made by "checking the box" for partnership tax treatment of the appropriate internal Revenues Service form.
Your Uncle Charles gives each of his nieces and nephews a check for $10,000 at Christmas. This is a gift because a gift is a free transfer of the title to property
True
Promissory estoppel does NOT require
a clear and definite promise
Arthur was an involuntary petition into bankruptcy by three of his creditors. When the trustee reviewed Arthur's books and records, the trustee discovered the following transactions:(A)Three weeks before the filing of the petition, Arthur paid cash for $17,000 worth of inventory for his store; And(B) 12 days before the filing of the petition, Arthur paid $300 in full satisfaction of his stores most recent electric bill. The trustee is considering attempting to set aside both of these transfers as preferential transfers. Discuss the advisability of the trustees attempt to set aside these transfers. As to a
This is a purchase in the ordinary course of business and allowed
Utah Pie was a company that was harmed by a violation of the Sherman Act. As a result, Utah Pie, as a person or enterprise harmed by a Sherman Act violation, could bring an action for
Treble damages
A federal agency planning to adopt a new regulation must give public notice of such intent and then hold a hearing at which members of the public may express their views and make suggestions.
True
After all the creditors have been paid by the trustee, any balance is turned over to the debt
True
In addition to issues of social responsibility, business values and ethics play an important role in the success or failure of a business.
True
In an administrative hearing, an administrative law judge hears the complaint and has the authority to swear witnesses, take testimony, make evidentiary rulings, and make a decision to recommend to the administrative agency heads for action.
True
Lamborghini demanded that its franchised make improvements to their dealerships in exchange for more cars to sell. Then Lamborghini changed its mind after a franchisee had already paid for the improvements. Damages recoverable in a case of promissory estoppel are determined by the profits that the promisee expected.
True
The Sunshine Act requires most meetings of major administrative agencies to be open to the public.
True
The insured must comply with a number of time limitations in making a claim
True
The parol evidence rule is based on the theory that any oral agreement was abandoned when the contract was written.
True
The person who has drunk too much alcohol at a party and signs a contract may be able to rescind that contract
True
The principal behind the quasi contract is to prevent unjust enrichment
True
The recovery of lost profits by the seller provides reimbursement for costs the seller incurred in gearing up for contract performance.
True
To collect a property insurance, and insurable interest in the property must exist at the time that the losses suffered
True
Under the Sunshine Act of 1976, called the open meeting law, the federal government requires most meetings of major administrative agencies to be open to the public.
True
XYZ Corporation sues Joe for bankruptcy even though Joe has said he can pay his debt. Joe may recover damages against XYZ because XYZ filed an involuntary bankruptcy petition against Joe in bad faith
True
Carol, who is planning to move out of town, offers to sell her sofa to her friend Betty for $750. Betty says, "I'll take it, and I would like you to throw in the coffee table along with it." Under Article 2 of the UCC, Carol and Betty have:
a contract for the sofa only
Suppose Jim is seriously injured by his new chain saw. If the sales contract excluded any damages from recovery, courts would hold that contract:
is enforceable under UCC Article 2
Characteristics of the fee simple estate include all of the following except the estate:
is not subject to rights of the owner's surviving spouse
A covenant _______ promises that the grantor of an interest in land will execute any additional documents required to perfect the title of the grantee.
of further assurances
a liquidation of damages clause in a consumer contract is enforceable if it:
reasonable attempts to estimate the actual harm caused by a breach
If a contract for the sale of goods omits the price to be paid, the:
buyer is required to pay a reasonable price for the goods
What type of deed merely transfers whatever interest, if any, the grantor may have in the property, without specifying that interest in any way?
quitclaim
Jorge, Antonio, and Elizabeth are trying to decide what business form to use if they go into business together and are leaning towards a corporation. Who serve as agents of the corporation and run the "day-to-day" operations of the business?
officers
Courts will consider the adequacy of the consideration when:
one party claims to have been defrauded
Carriers operate means of moving goods between different locations. A carrier owned and operated by the shipper is:
private carrier
When the __________ of the promisor's promise to pay the debt of another is to benefit the promisor, the statute of frauds is not applicable, and the oral promise to pay the debt is binding.
promissory estoppel
A warehouser that holds itself out to serve the public generally without discrimination is called a(n):
public warehouser
What are the elements of negligence?
duty, breach, causation, damages
A friend has written a book for a company. She wonders how long it is protected by copyright. You tell her a copyright of a "work made for hire" runs for the life of the creator of the work plus 50 years. Is this true or false?
false
A negotiable warehouse receipt that provides for delivery of the goods to the order of Jill Jones may be negotiated by delivery of the document to the purchaser
false
Jozeca and Kent decide to create Gardens by You, an unincorporated association for grow a community garden. If someone is injured from food grown at Gardens by You, they can sure Gardens by You directly.
false
The shopkeeper's privilege gives store managers the absolute right to detain anyone they believe has shoplifted for an indeterminate period of time
false
Unwillingness of businesses to voluntarily improve the ethics of their practices has little practical effect on the regulatory environment
false
You're ready to make an offer on a house, but want to make sure you understand the law. A(n) __________ is personal property that is attached to the earth or placed in a building in such a way that it is deemed part of the real property.
fixture
An agreement to pay reasonable additional compensation to a contractor to a contractor for the performance of a pre-existing contract when the contractor faces extraordinary circumstances caused by unforeseen difficulties is called a:
good-faith adjustment
There are multiple ethical theories, frameworks to help people act ethically. One of these, the Utilitarian Theory:
is based on doing the most good for the most people
Ethics has multiple theories to help people make choices. In one, positive law:
is enacted by government authority
Eli Lily is considering a joint venture with a start-up pharmaceutical company. Under this joint venture manufacturing agreement, Eli Lily as the manufacturer has authority to manufacture products under the start-up's proprietary trademark.
true
Ethics is a philosophical concept that deals with values related to the nature of human conduct.
true
Freedom from liability to third persons dealing with the franchise holder is one of the main reasons that franchisors grant franchises.
true
Machinery and equipment that is movable is ordinarily held not to be fixtures even though it is necessary to unbolt them from the floor or disconnect electrical wires.
true
Moral standards based on positive law may allow businesses to conduct themselves unfairly so long as their actions are not illegal
true
The land you want to purchase has an easement by implication on it. An easement by implication arises when one conveys a portion the land that has been used as a dominant estate in relation to the part retained.
true
Utilitarians believe that ethics is measured by actions that do the most good for the most people.
true
You are considering purchasing a parcel of land and trying to understand what you are buying. Your real estate agent tells you that land extends downward to the earth's center and upward indefinitely. Is this true or false?
true
You are trying to decide whether you need to start a business or can operate without a formal business. Your friend tells you that a sole proprietor is subject to unlimited personal liability for the debts of the business. Is this true or false?
true
You notice a lease you've been asked to review is for a tenancy of years. A tenancy for years terminates at the expiration of the specified term, regardless of whether one party gives the other any notice of termination.
true
You rent an apartment a couple blocks behind Krannert. If you as the tenant uses the property for any purpose other than the one specified in the lease, the landlord has the option to declare the lease terminated.
true
You want to open a business, but have decided a franchise is the best option. Your attorney tells you that if you as the franchisee are negligent and cause harm to a third person, the franchisor is not liable because you are an independent contractor. Is this true or false?
true
Your neighbor tells you that you can use his land to access yours. However, when you ask him to put in it writing, he refuses. Your lawyer tells you an oral promise to create an easement is not binding because of the statute of frauds. Is this true or false?
true
A transferee's rights to a warehouse receipt may be defeated by a good-faith purchaser of the goods from the transferor of the receipt
ture
Your friend is wondering if it's worth it to get a copyright to a series of articles she's written. You tell her a copyright gives the creator of an artistic or literary work a federal statutory right to exclusively:
use the work, reproduce the work, and display the work
Jordan agrees to sell a gun to a member of the mob. The gun is on Congress' do-not sell list. Illegal agreements are:
void
An ethical duty of confidentiality could be breached in any of the following situations except:
when a confidential informant tells government officials of illegal company activity.