BUA250 Business Law I Final Exam

Federal employment discrimination laws restrict the ability of employers to discriminate against workers on the basis of Select one: a. education. b. gender. c. experience. d. all of the choices.

b. gender.

Sara and Tim enter into a contract for a sale of orchids that requires payment within thirty days of delivery. The UCC provides that when parties do not specify payment terms, payment is due at the time and place of delivery. Under the UCC, the specific payment term in the parties' contract Select one: a. is fully enforceable. b. is enforceable to the extent it mirrors the rule in the UCC. c. removes the entire transaction from under the requirements of the UCC. d. is not enforceable.

a. is fully enforceable.

Grains Inc., agrees to sell to Harvest Bread Company a certain quantity of refined grains. Some of the other terms in the deal are left open. In the case of a dispute, a court will presume Select one: a. whatever is reasonable. b. whatever favors the nonbreaching party. c. whatever favors the plaintiff. d. nothing.

a. whatever is reasonable

Creditors that use information from credit-reporting agencies can be held liable for violations of the Fair Credit Reporting Act. Select one: a. True b. False

b. False

Generally, online ads—unlike other ads—can be less than truthful and not every claim must be substantiated. Select one: a. True b. False

b. False

Shipping times promised in ads are estimates—merchants are not required to notify consumers when orders cannot be shipped as timely as promised. Select one: a. True b. False

b. False

The chief executive officers of the major U.S. steel makers would most likely be prosecuted under the antitrust laws if they Select one: a. met to review developments in the domestic market for steel. b. agreed to work together to control the price of domestic steel. c. promised to reveal to each other their positions on trade and tariffs. d. conferred on resource, supply, and distribution issues.

b. agreed to work together to control the price of domestic steel.

Trade barriers are Select one: a. restrictions on exports. b. restrictions on imports. c. the lack of incentives and subsidies to stimulate imports. d. the lack of incentives and subsidies to stimulate exports.

b. restrictions on imports.

Compliance with Title VII of the Civil Rights Act is monitored by Select one: a. businesses affected by interstate commerce. b. the Equal Employment Opportunity Commission. c. protected classes. d. state and local governing agencies.

b. the Equal Employment Opportunity Commission.

A buyer will be deemed to have accepted delivered goods if, after a reasonable opportunity to inspect the goods, the buyer does not reject them. Select one: a. True b. False

a. True

Normal trade relations status granted to a member of the World Trade Organization means that the member will receive other members' most favorable treatment with regard to imports and exports. Select one: a. True b. False

a. True

Cruisin' Autos, Inc., sells cars to consumers. To avoid liability for oral express warranties, each sales agreement should note that a car is sold Select one: a. subject to warranties included in the written contract only. b. in perfect condition. c. as is. d. with no known defects.

a. subject to warranties included in the written contract only.

True or False: Contractual obligations will be discharged when the specific subject matter of the contract is destroyed.

True

Coki receives a payroll check from Data Solutions Inc. and indorses it by signing her name on the back of the check. This is Select one: a. a restrictive indorsement. b. a special indorsement. c. a qualified indorsement. d. a blank indorsement.

d. a blank indorsement.

Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. With respect to the duties under the original contract, this transfer Select one: a. is an invalid transfer of a non-transferable obligation. b. requires a special form to constitute a valid transfer. c. extinguishes Bill's obligation to perform. d. does not relieve Bill of the potential obligation to perform.

d. does not relieve Bill of the potential obligation to perform.

Ewan, the chief executive officer of Furniture Inc., intentionally understates the amount of the firm's debts in information provided to investors as part of an issue of stock. Gary buys the stock and suffers a loss. Ewan may be subject to Select one: a. only government prosecution. b. only a private investor's suit. c. negative publicity but no criminal prosecution or civil suit. d. government prosecution and a private investor's suit.

d. government prosecution and a private investor's suit.

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

b. the U.S. Department of Justice.

Bev is the chief executive officer of Chef Cafés Inc., which is required to file certain financial reports with the Securities and Exchange Commission (SEC). Under the Sarbanes-Oxley Act of 2002, Bev must Select one: a. designate a corporate official to assume liability for inaccuracies. b. certify that the reports are complete and accurate. c. read the reports and be prepared to answer questions about them. d. do nothing.

b. certify that the reports are complete and accurate.

Airbud Corporation, a U.S. firm, signs a contract with Bueno Computadores Ltd., an Argentinean firm, for a shipment and payment for Airbud's goods. This is Select one: a. indirect exporting. b. direct exporting. c. a distribution agreement. d. licensing.

b. direct exporting.

Under the Securities Act of 1933, securities include Select one: a. whatever a corporation represents to the public as profitable. b. a common enterprise reasonably expected to make a profit. c. an investment in one's own personal entrepreneurial effort. d. any instrument representing corporate ownership or debt.

d. any instrument representing corporate ownership or debt.

A body of law—formed as a result of international customs, treaties, and organizations—that governs relations among or between nations is Select one: a. universal law. b. space law. c. national law. d. international law.

d. international law.

A firm may be deemed a monopolist, even though it is not the only seller in a market, because what matters is size in relation to the market. Select one: a. True b. False

a. True

Acceptance of an offer to lease goods can be made by any means reasonable under the circumstances, including a prompt shipment of the goods. Select one: a. True b. False

a. True

True or False: The standard measure of compensatory damages is the value of the breaching party's actual performance.

False.

An ad is more likely to be considered fair if its benefit to consumers or the competition outweighs any injury it might cause to the interests of consumers. Select one: a. True b. False

a. True

An agreement to transfer the right to possess and use goods for a commercial purpose for a period of time in exchange for payment is a lease. Select one: a. True b. False

a. True

If a buyer wrongfully refuses to accept the goods, the seller can bring an action for damages equal to the difference between the contract and market prices at the time and place of tender. Select one: a. True b. False

a. True

Insider trading is prohibited because trading on the basis of inside information can give the trader an unfair advantage over the investing public. Select one: a. True b. False

a. True

Price-fixing agreements are considered violations of the Sherman Act because of their real and potential adverse effects on open and free competition. Select one: a. True b. False

a. True

Sexual harassment can occur when a pattern of sexually offensive conduct runs throughout a workplace and the employer takes no steps to prevent it. Select one: a. True b. False

a. True

Beryl enters into a contract with Clay for a guided tour of Deep Canyon. Clay represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Most likely, Beryl Select one: a. can rescind the deal based on fraudulent misrepresentation. b. might recover damages for the mistake. c. must comply with the contract because the representation is an opinion. d. could exert duress to obtain a new guide.

a. can rescind the deal based on fraudulent misrepresentation.

Jane signs an instrument using a "J" with a swirl around it. With this mark for a signature, the instrument is Select one: a. negotiable. b. nonnegotiable, because an initial is not a signature. c. nonnegotiable, because an initial does not state the signer's name. d. nonnegotiable, because a simple initial implies a lack of binding intent.

a. negotiable.

A business firm is subject only to the laws of its home nation even when it maintains operations or otherwise does business in other nations. Select one: a. True b. False

b. False

A difference between the handwriting in the body of a check and in the signature affects the validity of the item and will bar a holder from HDC status. Select one: a. True b. False

b. False

An express warranty arises when a seller or lessor indicates verbally that the goods are the "best" of the kind of goods sold. Select one: a. True b. False

b. False

If a check is made "payable to the order of Marcus or Nathan," both parties' indorsements are necessary for negotiation. Select one: a. True b. False

b. False

In states that require a minimum wage that is higher than the specified federal minimum wage, employees are entitled only to the lower federal amount. Select one: a. True b. False

b. False

Home Redo, Inc., and Ivy enter into a contract for a sale of cabinets and countertops. Home Redo, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably Select one: a. the best quality that money can buy. b. fit for the ordinary purpose for which such goods are used. c. suitable for resale at an acceptable price. d. fit for the buyer's particular purpose.

b. fit for the ordinary purpose for which such goods are used.

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

d. all of these choices

Most of the states and the federal government have enacted statutes to protect employees who report wrongdoing from employer retaliation. Select one: a. True b. False

a. True

Don enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation of the structure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be Select one: a. discharged. b. breached. c. altered. d. performed.

a. discharged.

On the receipt of consumer complaints about a company's ads, the most likely first step of the Federal Trade Commission would be to Select one: a. investigate. b. draft a formal complaint. c. order restitution. d. issue a cease-and-desist order.

a. investigate.

The Uniform Commercial Code requires parties to form sales and lease contracts with the same formality used in forming other types of contracts. Select one: a. True b. False

b. False

Under the Clayton Act, a seller can condition the sale of a product on the buyer's promise not to deal in the goods of the seller's competitors. Select one: a. True b. False

b. False

Ana signs a check payable to Boz, who indorses the back, gives it to Credit Union, and receives cash. The transfer of the check from Boz to Credit Union is Select one: a. a payment. b. a negotiation. c. a sale. d. an assignment.

b. a negotiation.

The Family and Medical Leave Act requires certain employers to provide eligible employees with family or medical leave for any of the following reasons except Select one: a. to care for a newly adopted child. b. to go on an extended family vacation. c. to care for a newly placed foster child. d. if the employee is unable to perform the essential functions of his or her job due to a serious health condition.

b. to go on an extended family vacation.

Bottling Company enters into a contract with Chug's Brewery to provide certain bottling and delivery services. Before Bottling starts to work, the market price rises for the fuel for glass ovens. Bottling tells Chug's that due to the added cost it will not perform their deal. Bottling's contractual obligation to Chug's is Select one: a. rescinded. b. discharged. c. breached. d. suspended.

c. breached.

Duke signs a note "payable to the order of Equity Bank." Unless Duke has a valid defense against payment, his liability on this note is Select one: a. qualified. b. secondary. c. primary. d. impaired.

c. primary.

Corner Market sells groceries. Deli & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is Select one: a. the Federal Trade Commission. b. Corner Market and Deli & Drug. c. the Food and Drug Administration. d. Deli & Drug only.

c. the Food and Drug Administration.

Speedy Auto Parts orders two gross of tires from Tough Tread, Inc. Ten tires are delivered in a damaged condition. Speedy Select one: a. cannot reject the entire shipment. b. must reject the entire shipment. c. must pay for all of the tires at the contract price. d. may accept the shipment with a reduction in price.

d. may accept the shipment with a reduction in price.