ACCT 315 Test 4 Quiz Questions

Kim and Leola own a warehouse in which they operate Mini-Storage Corporation. On the death of either owner, that owner's interest in the warehouse passes to the surviving owner. a. a joint tenancy. b. community property. c. ownership in fee simple. d. a tenancy in common.

a. a joint tenancy.

An ad for Running Shoes Inc. states that its footwear is "The Athlete's Choice." Because of this ad, the Federal Trade Commission is most likely to issue a. none of the choices. b. a cease-and-desist order. c. a settlement. d. a counteradvertising order.

a. none of the choices.

Cutting Edge Inc. makes and sells tools. One of the tools is believed to be hazardous. The firm may be required to a. remove the tool from the market. b. increase the price to cover the cost of any injuries or damage. c. reduce the price to indicate the hazard to consumers. d. export the tool and sell it only abroad.

a. remove the tool from the market

The federal agencies that enforce the antitrust laws include a. the U.S. Department of Justice. b. the Consumer Financial Protection Bureau. c. all of the choices. d. the Securities and Exchange Commission.

a. the U.S. Department of Justice.

Ivy is blind. Jerold has cancer. Kim has cerebral palsy. Considered to have a disability under the Americans with Disabilities Act is a. none of the choices. b. only Ivy. c. Ivy, Jerold, and Kim. d. only Ivy and Kim.

c. Ivy, Jerold, and Kim.

The legally protected rights and interests that a person has in anything of established value subject to ownership is a. commonwealth. b. a bailee's lien. c. property. d. accession.

c. property.

Star Residences fails to provide the utilities to its tenants' apartments, making their use and enjoyment of the premises exceedingly difficult. This is most likely a. an exercise of the landlord's property rights. b. an assignment of the lease. c. a tenancy at sufferance. d. a constructive eviction.

d. a constructive eviction.

Consumer Staples Inc. includes in its advertising obvious exaggerations, vague generalities, and puffery about its products. The firm may be subject to sanctions for a. the vague generalities. b. the puffery. c. the obvious exaggerations. d. none of the choices.

d. none of the choices.

Dig Inc. is the major wholesale distributor of heavy equipment in six states. Dig's closest competitor is Excavator Company. The two firms agree that Dig will operate in four of the states and Excavator in the other two. This is a. a market division. b. a group boycott. c. a trade association. d. a price-fixing agreement.

a. a market division.

Bayside Inc. pays Coastal Marina to release its claim to a strip of waterfront property. Coastal gives Bayside a deed that conveys only whatever interest Coastal has in the strip. This deed is a. a quitclaim deed. b. a deed of quiet enjoyment. c. none of the choices. d. a warranty deed.

a. a quitclaim deed.

Under the Equal Pay Act, an employer can legitimately pay different wages to male and female employees on the basis of a. all of the choices. b. a seniority or merit system. c. any factor other than gender. d. the primary duties of the jobs.

a. all of the choices.

Lisa brings a successful suit against her employer Mold & Die Corporation for employment discrimination. Lisa may be awarded a. back pay, retroactive promotions, and damages. b. retroactive promotions, but not back pay. c. damages, but not back pay. d. back pay, but not retroactive promotions.

a. back pay, retroactive promotions, and damages.

An affirmative action plan may be found to be unconstitutional because it a. does not attempt to remedy past discrimination. b. has not succeeded in remedying discrimination. c. has succeeded and subsequently been eliminated. d. does not make use of quotas or preferences.

a. does not attempt to remedy past discrimination.

Online Media Inc. bundles its products so that consumers are forced to pay for access to some sites that they do not want in order to obtain access to sites that they do want. A court will likely rule that the bundling does not violate the rule of reason if it a. does not injure competition. b. suppresses or destroys competition. c. is the most restrictive means for the firm to achieve its purpose. d. is fully within the firm's ability to achieve.

a. does not injure competition.

The Americans with Disabilities Act applies to workplaces with at least a. fifteen workers. b. one worker. c. ten workers. d. five workers.

a. fifteen workers.

To obtain the title to land without delivery of a deed, one person must possess the property of another a. in an open, visible, and notorious manner. b. with the other's permission. c. with or without interruption. d. in secret.

a. in an open, visible, and notorious manner.

Seaside Vistas leases an apartment to Tori. During a severe storm, the premises are destroyed by flood. Under most state laws, liable for the rent for the rest of the lease term is a. no one. b. Tori only. c. Seaside and Tori in proportionate amounts. d. Seaside only.

a. no one.

Before entering the dining room in Café Peru, Diego checks his coat in the lobby with a valet employed by the restaurant. In the coat's pocket is an iPhone. A bailment may exist between the restaurant and its customer for a. the coat and the phone. b. the phone only. c. the coat only. d. neither the coat nor the phone.

a. the coat and the phone.

Property would have little value if a. the law did not define the rights of property owners. b.the preservation of property was the primary reason for government. c. property could be delivered to another without a transfer of title. d. virtually all property were digital.

a. the law did not define the rights of property owners.

Bib replaces Chloe in her job at Data Sales Corporation. To succeed with an age-discrimination claim against Data, Chloe will have to show that a. the employer's qualifications for the job are too high. b. Chloe is qualified for the job. c. no one could do the job as well as Chloe could. d. Bib is not qualified for the job.

b. Chloe is qualified for the job

Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, Credit Loan must inform potential borrowers of a.comparative prices for goods to be bought with the borrowed funds. b. Credit Loan's credit terms. c. credit terms offered by other lenders. d. the borrowers' credit scores.

b. Credit Loan's credit terms.

Without a permit from the U.S. Army Corps of Engineers, Condos Corporation fills a wetlands area that it owns in preparation for the construction of a housing complex. Under the Clean Water Act, this is most likely a. not a violation because the area was filled before construction. b. a violation. c. not a violation because there was no discharge of pollution. d. not a violation because a permit is not needed to fill wetlands.

b. a violation.

Sara owns a ring. She asks Tomas, a jeweler, to add a diamond to it. Adding the diamond will increase the value of the ring. This is a. conversion. b. accession. c. acquisition. d. validation.

b. accession.

After shopping at a Cut-Price store, Dyan finds a fitness watch in her bag of purchases that she knows she did not pay for. If Dyan fails to return the watch to the store or to pay for it, she will have committed a. accession. b. conversion. c. production. d. confusion.

b. conversion.

Brew House Coffee Company sells coffee and related beverages. The company's ad contends that ambitious businesspersons "Drink Us & Rise Up in the Corporate World!" The Federal Trade Commission would consider this ad a. a deceptive half-truth. b. none of the choices. c. impermissibly vague and general. d. false and misleading.

b. none of the choices.

Consumer Finance Corporation (CFC) extends credit to consumers. CFC applies several criteria to decide customers' "suitability" for credit. Under the Equal Credit Opportunity Act, CFC cannot base its decision on a customer's a. intelligence. b. race. c. education. d. culture.

b. race.

Vim applies for a job at Welding Inc. She passes a test to determine which applicants are eligible for hiring, but Welding discards the results, and Vim is rejected. To successfully defend against a claim for discrimination under Title VII of the Civil Rights Act, the employer must show that a. statistically the practice in question is discriminatory in effect. b. the practice in question was justified. c. any discriminatory effect was unintended. d. the employer feared it would be sued if it used the test results.

b. the practice in question was justified.

Snowboards Inc. refuses to sell its products to Timber Winter Sports Stores, Inc., a retail snowboard dealership. This violates Section 2 of the Sherman Act if Snowboards has monopoly power and a. the refusal is unilateral. b. the refusal has an anticompetitive effect on the market. c. none of the choices. d. Timber has or is likely to acquire monopoly power.

b. the refusal has an anticompetitive effect on the market.

Marv files a suit against the state of New Hampshire, alleging employment discrimination under the Age Discrimination in Employment Act. The state asks the court to dismiss the suit. The court is most likely to rule that a. the court is immune from the request. b. the state is immune from the suit. c. the suit can proceed. d. the plaintiff is immune from any defense.

b. the state is immune from the suit.

Owen owns a farm in Pennsylvania. Owen's brother Quentin owns the subsurface rights to the farm. Either brother can pass title to what he owns a. only with the other's consent. b. without the other's consent. c. only when the other also passes title to what he owns. d. only by first offering to buy out the other's rights.

b. without the other's consent.

Bob owns twenty acres of land on the side of a mountain in Colorado. He files a suit against the Durango Flight School, claiming that its planes flying over his land violate his property rights. To succeed, his best argument is a. the planes fly over more than twice a day. b.the flights are low and frequent, interfering with enjoyment of his land. c. there are other routes the planes could take. d. the planes are effectively taking private property for private use.

b.the flights are low and frequent, interfering with enjoyment of his land.

Derek deeds a parcel of timberland to Elaine as a gift. Derek has given Elaine a. a life estate. b. the power of eminent domain. c. a fee simple absolute. d. the right to adverse possession.

c. a fee simple absolute.

One of the elements of a bailment is a. non-exclusive possession of the bailed property by the bailee. b. tangible, not intangible, items. c. an agreement for the return or disposal of the bailed property. d. conversion of the bailed property by the bailee.

c. an agreement for the return or disposal of the bailed property.

Delivery Service Inc. agrees to pick up a truckload of merchandise for Exporters Corporation and store the contents to be delivered later. Delivery's obligation to deliver the load to Exporters is excused if the contents are a. claimed by a third party with a superior claim. b. stolen through no fault of Delivery. c. any of the choices. d. lost through no fault of Delivery.

c. any of the choices.

Ranch Supplies Company believes that its chief competitor Stock & Equipment Inc. engages in anticompetitive behavior in an attempt to drive Ranch Supplies out of the market. Under the Clayton Act, Ranch Supplies can sue Stock & Equipment for a violation of a. the Sherman Act only. b. the Clayton Act only. c. any of the federal antirust laws. d. none of the choices.

c. any of the federal antirust laws.

Clean Wash Inc. operates a chain of car washes throughout the United States. The government entity that is most likely to be involved in regulating the chain's environmental impact is a. Congress. b. local chambers of commerce. c. federal and state regulatory agencies. d. local police departments.

c. federal and state regulatory agencies.

Disposal Company operates a hazardous waste storage facility. Concerned that there may be a release of chemicals from the site, the company sells the property to Eager Developers Inc. If there is a release, the seller is most likely a. not liable because the company no longer operates the facility. b. not liable because the site was sold before the release. c. liable. d.not liable because the company was concerned about the release.

c. liable.

Say It Inc. and Text Talk Inc. are social media companies. They compete for employees, users, and advertisers. The two firms work together on security threats, however. With respect to antitrust law, this cooperation is most likely a. a violation because it involves setting aside competitive differences. b.a violation because it is not possible to completely thwart such fraud. c. not a violation because it is not anticompetitive. d. a violation because it concerns

c. not a violation because it is not anticompetitive.

Cosmétique Inc. makes and sells cosmetics and related products. By selling its goods at prices substantially below the normal cost of production, the firm hopes to drive its competitors from the market. This is a.. market power pricing. b. price discrimination. c. predatory pricing. d. price-fixing.

c. predatory pricing.

Kay and Lease-Away Inc. enter into a bailment involving the delivery of a moving van to Kay for her use. Unless stated otherwise, the agreement assumes that Kay will a. return the van or its equivalent. b. retain the van. c. return the van. d. none of the choices.

c. return the van.

Pipeline Corporation requires its employees to have a high school diploma. In a suit against Pipeline under the Civil Rights Act, the employer shows a connection between a high school education and job performance. Most likely, this is a. a bona fide occupational qualification defense. b. a prima facie case. c. disparate-impact discrimination. d. a business necessity defense.

d. a business necessity defense.

Rafe signs a one-year lease for an apartment owned by Suki. Rafe is a student and needs the apartment only for two semesters, at the end of which he plans to sublet it for the rest of the term. Rafe's tenancy is a. a periodic tenancy. b. a tenancy at sufferance. c. a tenancy at will. d. a fixed-term tenancy.

d. a fixed-term tenancy.

Hotel operators can limit their liability for any loss or damage to their guests' personal property a. in the absence of negligence. b. in many states, by providing a safe for their guests' valuables. c.under state statutes that limit the liability for articles not kept in a safe. d. all of the choices.

d. all of the choices.

Oil Industries Inc. and Petro Corporation are competing refineries situated on the Gulf coast. The two firms cooperate to obtain federal funds to build a levee that could protect their facilities from rising sea levels. With respect to antitrust law, this effort is a. a violation because it involves a conspiracy to affect market power. b. a violation because it is "objectively baseless." c.a violation because funds will be spent for an anticompetitive purpose. d. exempt from antitrust enforcement.

d. exempt from antitrust enforcement.

Expressly exempt from antitrust laws because it is not interstate commerce, according to the United Supreme Court, is a. professional football. b. digital streaming. c. video production. d. professional baseball.

d. professional baseball.

Direct Sales Corporation sells products to consumers over the phone, through the mail, and online. Under the Federal Trade Commission's Mail or Telephone Order Merchandise Rule, the firm may be liable for failing to a. provide a cooling-off period of three days before shipping. b. all of the choices. c. notify consumers when orders are shipped. d. ship orders within the time promised in its ads.

d. ship orders within the time promised in its ads.

Nancy owns Office Tower, which is situated on an acre of land that she also owns in Peoria, Illinois. Subject to certain qualifications, the exterior boundaries of Nancy's land extend to a. the size of a cubic acre. b. infinity and beyond. c. the limits of the current building market. d. the center of the earth and up to the sky.

d. the center of the earth and up to the sky.

Batteries Corporation is a private employer involved in an employment discrimination suit under the Civil Rights Act. Punitive damages may be recovered against Batteries a. if it can easily afford to pay the amount. b. if it acted with reckless indifference to an individual's rights. c. under no circumstances. d. if it has one hundred or more employees.

b. if it acted with reckless indifference to an individual's rights.

Every agreement concerned with trade, and every regulation of trade, restrains. The test of legality under the antitrust laws, according to the rule of reason, is whether the restraint a. is blatantly, inherently anticompetitive. b. has a substantial effect on interstate commerce. c. suppresses or destroys competition. d. merely regulates and thereby promotes competition.

d. merely regulates and thereby promotes competition.

While hiking on Mountain Trail, Ness's camera falls from his pocket. He fails to notice its loss for a mile, and is then unable to find it. Ole finds the camera. Pau tries to take it from Ole. The party who can assert the best title to the camera is a. Ole. b. Pau. c. Ness. d. none of the choices.

d. none of the choices.