BUAD 322 second half
10. Which of the following is the federal administrative agency that is responsible for enforcing most federal antidiscrimination laws?
the Equal Employment Opportunity Commission (EEOC)
12.26. According to the RMBCA, the articles of incorporation must include which of the following?
the name and address of each incorporator
26.8. A(n) _____ is an unincorporated business entity that combines the most favorable attributes of general partnerships, limited partnerships, and corporations.
LLC
2. ______________ is a provision in the FTC Act that prohibits unfair and deceptive practices.
Section 5 of the FTC Act
4. _____ is a legal procedure by which a secured creditor causes the judicial sale of the secured real estate to pay a defaulted loan.
foreclosure
15. Each of the following is a type of lease EXCEPT __________.
joint tenancy
2. A lease that may be terminated at any time by either party creates a _____.
tenancy at will
11.17. Members of an LLC have _____ liability for the debts, obligations, and liabilities of an LLC.
limited
5. A _____ is a right of possession that returns to the grantor after the expiration of a limited or contingent estate.
reversion
17. A(n) _____ is a seller's express or implied assurance to a buyer that the goods sold meet certain quality standards.
warranty
13. Article _____, Section _____, Clause _____ of the United States Constitution vests Congress with the power to "regulate commerce with foreign nations."
I; 8; 3
51. A _____ transaction occurs when a seller sells goods to a buyer who has obtained financing from a third-party lender who takes a security interest in the goods sold.
three-party secured
23. The __________________ is a commission that is independent of its member nations that has been delegated substantial powers, including authority to enact legislation and to take enforcement actions to ensure member nations' compliance with the European Union treaty.
European Union Commission
8.7. Which of the following is an INCORRECT statement regarding agency authority to bind an LLC to contracts?
In a manager-managed LLC, non-manager members can bind the LLC to contracts.
8. Which of the following is NOT true about a cooperative?
Individual residents may secure loans for the units they occupy.
2. _______________ is law that governs affairs between nations and that regulates transactions between individuals and businesses of different countries.
International law
21. Which of the following is an INCORRECT statement regarding the child labor provisions of the Fair Labor Standards Act (FLSA)?
In 2012, the United States Supreme Court declared the child labor restrictions of the act unconstitutional as an impermissible restriction on interstate and international commerce (in other words, a violation of the Commerce Clause of the United States Constitution).
9. Which of the following is an accurate statement regarding the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005?
The Act made it much more difficult for debtors to escape unwanted debt through bankruptcy.
10. Which of the following is an INCORRECT statement regarding Section 5 of the FTC Act?
The Act prohibits false, but not deceptive, advertising.
In which of the following situations do you think there would be a breach of the implied warranty of merchantability?
The Digijump catches fire when a professional high jumper tried the machine
10. Which of the following is an INCORRECT statement regarding the Family and Medical Leave Act (FMLA)?
The FMLA applies to companies with 3 or more workers.
7. The _________________ is the federal administrative agency that is responsible for regulating the safety of meat, poultry, and other food products.
U.S. Department of Agriculture (USDA)
1. Originally, sales transactions in the United States were guided by the principle of _____--"let the buyer beware."
caveat emptor
6. If a light-skinned member of a race refuses to hire a dark-skinned member of the same race, this constitutes _____ discrimination, in violation of Title VII.
color
6. A _____ contract requires the seller to deliver conforming goods to a specific destination.
destination
14. Under the UPA, general partners have liability for the contracts and debts of the partnership, which means that a third party who sues to recover on a partnership contract or debt must name all the general partners in the lawsuit.
joint
18. Which of the following countries is NOT a member of Mercosur?
mexico
28.10. Siri, who is driving her automobile, is injured when another driver negligently causes an automobile accident. Siri hires a lawyer to represent her on a 35 percent contingency-fee basis. If the lawyer wins the case for Siri or settles the case with Siri's approval, he will earn 35 percent of whatever is collected from the defendant. If the lawyer does not win or settle the lawsuit, he gets paid nothing. The agent can recover this amount from the principal because of the duty to _______.
perform WRONG compensate
12. In which of the following situations would Lucy be able to have her student loan debt discharged during bankruptcy?
she is unable to pay for food for her children
1. A _____ contract requires the seller to deliver goods conforming to the contract to a carrier.
shipment
14. Many of the OSHA standards are _____ duty standards.
specific
24.13. Which of the following is NOT a basic form of franchises?
temporal
8. Which of the following is NOT a criterion to qualify as a general partnership under the UPA?
the issuance of publicly-traded stock
21. A strategic alliance allows two or more companies to ally themselves for any of the following purposes EXCEPT __________.
to reduce tax burdens
19. Individuals have a right to pursue private lawsuits when an employer violates the Genetic Information Nondiscrimination Act (GINA). Which of the following is an example of a type of relief NOT typically sought?
vacation time
25. Which of the following countries comprise the ASEAN Plus Three (APT) Association?
China, Japan, and South Korea
15. Under Title VII, an employer is under a duty to reasonably ______ religious observances, practices, or beliefs of its employees if doing so does not cause an undue ______ on the employer.
accommodate; hardship
1. An employer who terminates a _____ employee without cause during the stated period is liable for ______ discharge and owes damages to the employee.
term; wrongful
21. The Lilly Ledbetter Fair Pay Act of 2009 is a federal statute that provides that each discriminatory pay decision restarts the statutory _____-day clock to file an employment discrimination claim against an employer.
180
18. In what decade was the Fair Labor Standards Act enacted?
1930s
Imagine the model that you promised a customer was worth $45,000, but the model the customer actually received was worth only $40,000. What remedy would the customer be eligible for in a breach of warranty claim?
5,000
16. The African Union (AU) is an organization comprised of all _____ countries located on the African continent.
55
5.3. Which of the following is an INCORRECT statement regarding incorporation procedure?
A corporation can be in incorporated in more than one state.
21.14. Which of the following statements about voluntary dissolution is NOT true?
A corporation cannot be voluntarily dissolved.
2. Which of the following is an INCORRECT statement regarding the corporation as a legal person?
A corporation has the same identity as its shareholders.
11. Which of the following countries is NOT a member of OPEC?
Brazil
29.31. _____ voting is a system in which a shareholder can accumulate all of his or her votes and vote them all for one candidate or split them among several candidates.
Cumulative
7. _____ has the most advanced corporation law in the United States.
Delaware
8. Which of the following is NOT true about vesting under ERISA?
ERISA permits employer's contributions to be gradually vested over a 10-year period and completely vested after that time.
28. The ____________, a federal statute passed in 1963, protects _____________ from pay discrimination based on sex.
Equal Pay Act; both sexes
31. The shipping term _____ requires the seller to bear the expense and risk of loss until the goods are tendered to the buyer at the place of destination.
F.O.B. place of destination
21. The _____ is a federal administrative agency empowered to enforce the Federal Trade Commission Act and other federal consumer protection statutes.
Federal Trade Commission (FTC)
4. is/are rule(s) that provides that the income and losses of a limited liability company or limited liability partnership are reported on the owner's personal income tax return.
Flow-through taxation
24. Which of the following is a correct statement regarding the ADA?
Impairments resulting from pregnancy are disabilities under the ADA.
4. Which of the following is NOT an autonomous agency of the United Nations?
International Criminal Court
5. All states except _____ have adopted some version of Article 2 (Sales) of the UCC.
Louisiana
14. is an action taken by an employer against an employee for filing a charge of discrimination or participating in a discrimination proceeding against the employer (e.g., dismissal or demotion).
Retaliation
3. The _____ administers the day-to-day operations of the United Nations.
Secretariat
18. Which of the following is NOT true about Under the Federal Insurance Contributions Act (FICA)?
Social Security operates like a savings account.
28. _____ is a form of co-ownership of real property that can be used only by married couples.
Tenancy by the entirety
33.33. Which of the following is an INCORRECT statement regarding the duty of care of directors and officers of a corporation?
The duty of care is not a fiduciary duty.
2.8. Which of the following is an INCORRECT statement regarding corporate voting requirements?
The record date is set forth in the corporation's articles of organization.
25. Which of the following is an INCORRECT statement regarding gender discrimination?
Title VII's prohibition against sex discrimination applies only to women.
45. If Tomas is a guarantor for Luciano's debt, which of the following accurately depicts Tomas's liability?
Tomas is liable for Luciano's debt if Luciano defaults on the debt and the creditor has attempted unsuccessfully to collect the debt.
7. If Tomas is an accommodation party for Luciano's debt, which of the following accurately depicts Tomas's liability?
Tomas is liable for Luciano's debt when it is due.
3. Article II, Section 2, Clause 2 of the United States Constitution is also known as the _____ Clause.
Treaty
Do you think this contract for the sale of the drone has to be in writing?
Yes, the contract is over $500
19. A limited liability partnership in the state in which it is organized is called .
a domestic LLP
5. __________________ food is food that consists in whole or in part of any filthy, putrid, or decomposed substance or is otherwise unfit for food.
adulterated
12. A situation where the parties to an agency contract terminate their contract by mutual agreement or when a previously agreed on event occurs is called termination of an agency by .
an act of the parties
24. Marta is starting an engineering consulting business. She'll contract with engineering firms that can use her specific and fairly unique services in the civil engineering field. Marta is ____________.
an entrepreneur
17. Lauren has fallen behind on her credit card payments. After several months of notifications, Capital Credit, the company through which Lauren has credit, files a petition that places Lauren into bankruptcy. Capital Credit has just filed which of the following?
an involuntary petition
15.30. The articles of incorporation are also referred to as the corporate _____..
charter
20. In a surety arrangement a third person becomes the security for the credit extended to the debtor. The third part in this arrangement is called the _______.
co-debtor
48. Personal property that is subject to a security agreement is known as __________.
collateral
13. If a light-skinned member of a race refuses to hire a dark-skinned member of the same race, this constitutes , in violation of Title VII.
color discrimination
22. The parties to a tenancy in common are called tenants in _____.
common
11. _____ are treaties that are sponsored by international organizations such as the United Nations.
conventions
13. State have enacted laws against fraud and deceptive practices that regulate all of the following areas EXCEPT _________.
credit score reporting
9. A form of discrimination that occurs when an employer discriminates against a specific individual because of his or her race, color, national origin, sex, or religion is called discrimination.
disparate-treatment
5. Consider the situation in the video involving a stolen bicycle. In a case in which a buyer purchases goods from a thief who has stolen them, the purchaser _____.
does not acquire title to the goods
11. The Revised Article 2 (Sales) and Article 2A (Leases) defines each of the following, and provides for their use in electronic commerce, EXCEPT __________.
electronic lessee
12. The _______ is a single monetary unit that has been adopted by many countries of the EU that comprise the eurozone.
euro
14. Property that may be retained by the debtor pursuant to federal or state law that does not become part of the bankruptcy estate is called .
exempt property
12. An _____ is created when the seller affirms that the goods he or she is selling meet certain standards of quality, description, performance, or condition.
express warranty
3. What crime committed by the Bank of America resulted in the largest settlement between the government and a private corporation in United States history?
financial fraud
20.23. The _____ is the party who grants the franchise and license in a franchise agreement.
franchisor
19. The _____ is composed of all UN member nations.
general assembly
19. _____ are defined as _____ items that are movable at the time of their sale.
goods; tangible
6. The U.S. Supreme Court has held that sexual harassment that is so severe or frequent that it creates a(n) _____ work environment violates Title VII.
hostile
7. The parties to a joint venture are called _________.
joint ventures
49. If the debtor is _____, he or she has little or no property or income that can be garnished to pay the debt.
judgment proof
10. The ________ is the party to whom the license is granted.
licensee
16. The duty of _____ is a duty that directors and officers have not to act adversely to the interests of the corporation and to subordinate their personal interests to those of the corporation and its shareholders.
loyalty
6. Tenancy by the entirety is a form of co-ownership of real property that can be used only by _____.
married couple
7.24. The owners of LLCs are usually called _____.
members
4. A(n) _____ sale involves the provision of a service and a good in the same transaction.
mixed
4. _____ discrimination is employment discrimination against a person because of his or her heritage, cultural characteristics, or the country of the person's ancestors.
national origin
12. Employment discrimination against a person because of his or her heritage, cultural characteristics, or the country of the person's ancestors is called .
national origin discrimination
4.24. The doctrine of _____ rests on the principle that if someone expects to derive certain benefits from acting through others, that person should also bear the liability for injuries caused to third persons by the negligent conduct of an agent who is acting within his or her scope of employment.
negligence
6.25. Intentional torts include all but which of the following?
negligence
8.4. Which of the following is NOT a duty a principal owes to an agent?
not cooperation, compensation, or reimbursement indemnification? WRONG subrogation?
8. If a nonexempt employee works 50 hours one week and 30 hours the next week, the employer _____.
owes the employee 10 hours of overtime pay of one-and-a-half times their regular pay for the first week
7.27. A(n) _____ is a written document signed by a shareholder that authorizes another person to vote the shareholder's shares.
proxy
18. A corporation that has many shareholders and whose securities are often traded on national stock exchanges is called a .
publicly held corporation
3. A conveyance of property to a church "as long as the land is used as a church or for church purposes" creates a _____.
qualified fee
5. Title VII of the Civil Rights Act of 1964 was enacted primarily to prohibit employment discrimination based on a person's __________.
race and color
21. _____ property is immovable or attached to immovable land or buildings.
real
15. When a mortgage or deed of trust is paid off, the lender files a(n) _____________ with the county recorder.
reconveyance
32. _____ credit requires collateral that secures payment of the loan.
secured
15. is a statute that prohibits deficiency judgments regarding certain types of mortgages, such as those on residential property.
An antideficiency statute
5. Which of the following federal administrative agencies is empowered to adopt rules and regulations to interpret and enforce the Consumer Product Safety Act?
CPSC
3. The ________________________ is a federal statute that prohibits discrimination in the selling and renting of property based on race or color.
Civil Rights Act of 1866
11.20. Which of the following is an INCORRECT statement regarding a fully disclosed agency?
In a fully disclosed agency, the contract is between the agent and the third party.
11. Which of the following is an INCORRECT statement regarding the liability of partners in a limited liability partnership (LLP)?
In an LLP, there must be at least one general partner who is personally liable for the debts and obligations of the partnership.
14. Which of the following is NOT true about The Employee Retirement Income Security Act (ERISA)?
No more than 25 percent of a pension fund's assets can be invested in the securities of the sponsoring employer.
24. The ____________________ is a federal statute that requires food manufacturers to disclose on food labels nutritional information about the food.
Nutrition Labeling and Education Act (NLEA)
20. The Equal Pay Act expressly provides four criteria that justify a differential in payment systems. Which of the following is NOT one of these criteria?
a factor such as sex
5. The board of directors of National Corporation are considering a merger with another corporation. In this case, the board of directors would call .
a special shareholders' meeting
12. A business purchases a new truck from an automobile manufacturer. The business obtains a loan to purchase the truck from a bank, which obtains a security interest in the truck. The automobile manufacturer is paid for the truck out of the proceeds of the loan. This is an example of which of the following?
a three-party secured transaction
23. A pricing term that means the price of goods includes the cost of the goods and the costs of insurance and freight is called .
cost, insurance, and freight
7. Which of the following is NOT a duty of the principal?
duty to perform
5. Apparent agency, or agency by _____, arises when a principal creates the appearance of an agency that in actuality does not exist.
estoppel
23.22. The _____ is the party who is granted the franchise and license in a franchise agreement.
franchisee
22. A shipment contract between two companies specifies "F.O.B. Oakland, California," and the goods are shipped from Los Angeles. The buyer bears the shipping expense and risk of loss while the goods are in transit to Oakland. This scenario is an example of which commonly used shipping term?
free on board point of shipment
11. A limited partnership has two types of partners: _______.
general and limited
3. Fred and George are starting a business. They have agreed to enter into the business together. They agree that their business is an association of two or more persons carrying on a business as co-owners for profit. Fred and George are which of the following?
general partnrers
13. If Cai Zhang, who owns a driveway that runs within her property line, gives her neighbor permission to use the driveway, this is known as an easement by ________.
grant
28. Maria files a gender discrimination claim with the EEOC that states her employer has engaged in sex discrimination. The employer does not promote Maria when she qualifies for a promotion because she filed this claim. This would be an example of ________.
illegal retaliation
5. A situation where an agency terminates because a situation arises that makes the fulfillment of the agency out of the question is called termination of an agency by .
impossibility of performance
6. The CPSC is a(n) _____ federal administrative agency.
independent
12. Which of the following is NOT a transaction approved by the board of directors that requires a shareholder vote?
issuing new shares of stock
1.25. ____________ occurs when one party that owns trademarks, service marks, trade names, or other intellectual property contracts to allow another party to use its trademarks, service marks, trade names, or other intellectual property in the dissemination of goods, services, software, and digital information.
licensing
22. A warranty that covers the costs of parts but not the labor to fix a defective product is a(n) _____ warranty.
limited
7. A person who uses their own real property as collateral for a loan is known as a(n) __________.
mortgagor
28.18. The straight voting method is also referred to as _____ voting.
noncumulative
3. Sid hires Dina, a licensed real estate broker, to serve as a buyer's agent in a real estate transaction. Sid authorizes Dina to make an offer on a piece of real estate. While in the process of making the offer, Dina learns that a medical waste facility has just acquired adjoining land. If Dina fails to tell Sid about this neighboring acquisition, she has breached her duty to ______________.
notify
18. Which of the following is NOT a way ownership of real property can be transferred from one person to another?
revocation
9. Gender discrimination is also known as _____ discrimination.
sex
15. The goals of the African Economic Community organization include all of the following EXCEPT __________.
to incorporate the Middle East as a primary trade partner
6. Tom opens a clothing store called "Rent-a-Shirt" and operates it as a sole proprietorship. Tom files the proper statement and publishes the necessary notice of the use of the trade name. Tom contributes $15,000 of his personal funds to the business and borrows $200,000 from a bank in the name of the business. After several unsuccessful months, Tom decides to close the business. At the time it is closed, the business has no assets, owes the bank $200,000, and owes other debts of $20,000. Tom, the sole proprietor, has liability to pay the bank and all the debts of the sole proprietorship from his own assets.
unlimited personal
34. A seller or lessor has ______________ to property if he or she obtained the goods through _________.
voidable title, fraud
17.12. The board of directors has authority over all of the following EXCEPT _________.
voting rights
1. Which of the following is an INCORRECT statement regarding secured credit?
Unsecured credit requires collateral for a loan.
1. The Restatement (Second) of Agency defines agency as a(n) _____ relationship "which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control, and consent by the other so to act."
fiduciary
6. Which of the following is the most common method of perfecting a creditor's security interest in collateral?
filing a financing statement in the appropriate government office
9. Upon the filing of a voluntary or an involuntary petition, all EXCEPT which of the following creditor actions are stayed?
filing a proof of claim
20. ___________is a business arrangement that occurs when the owner of intellectual property contracts to permit another party to use the intellectual property.
Licensing
22. Which of the following is a correct statement regarding the ADEA?
An employer can maintain an employment policy of hiring only workers who are 40 years of age or older without violating the ADEA.
23. A landlord enters into a lease whereby he rents an apartment to a tenant for a one-year-period, which expires on September 1, 2018. If the tenant remains longer than this date, it is a _____.
tenancy at sufferance
3. The _________________ is a federal statute, enacted in 1914, that creates certain consumer protections, regulates business conduct, prohibits unfair and deceptive practices, and grants certain antitrust powers to the Federal Trade Commission (FTC).
Federal Trade Commission Act (FTC Act)
11. Which of the following is an INCORRECT statement regarding unsecured credit?
It requires collateral to protect the payment of the debt.
5.19. Which of the following is an INCORRECT statement regarding the taxation of LLCs?
Under the Internal Revenue Code, for federal income tax purposes, an LLC is taxed as a corporation unless it elects to be taxed as a partnership.
24. A duty that an agent owes to maintain an accurate record of all transactions undertaken on the principal's behalf is which of the following?
a duty to account
22. Credit that is extended to natural persons for personal, family, or household purposes is called .
consumer credit
2. According to the video, Johnson's parents are in part to blame for his financial difficulties. The video attributes this to the parents overspending on _____________ at high interest rates. These purchases would most likely be considered ____________ property during bankruptcy proceedings.
consumer debt; nonexempt
16. Lesbian, gay, bisexual, and transgender individuals may bring sex discrimination claims, such as when an employer takes an adverse action because of the person's nonconformance with sex stereotypes. This kind of discrimination is which of the following?
gender identity discrimination
22.12. In a(n) _____ agency, a contracting third party knows that the agent is acting for a principal but does not know the identity of the principal.
partially disclosed
12. Which of the following is a doctrine that says if a shareholder dominates a corporation and uses it for improper purposes, a court of equity can disregard the corporate entity and hold the shareholder personally liable for the corporation's debts and obligations?
piercing the corporate veil
8. A __________ is a deed that protects a grantee of real property from defects in title caused by the grantor.
special warranty deed (limited warranty deed)
12. Which of the following is NOT true about a condominium?
Usually, condominium owners may not sell or sublease their units without the approval of the other owners.
13.27. Which of the following is an INCORRECT statement regarding LLPs?
LLPs are creatures of federal law.
11. If a person owns real property in fee simple, his or her ownership _____.
has no limitation on inheritability
24. The UN Security Council is composed of _____ member nations.
15
5. Spain is a member of an important regional organization in Europe that works to promote peace and security as well as economic, social, and cultural development. The organization that Spain is a member of creates open borders for trade among its member nations and has eliminated customs tariffs among member nations. Spain is a member of the ____________________.
European Union (EU)
12. Which of the following is NOT true about Hindu law?
Hindu law is only applied in India.
15.27. Which of the following is an INCORRECT statement regarding a "frolic and detour?"
Principals are generally liable if an agent's frolic and detour is substantial.
7. The _____ is empowered to enforce the FLSA.
U.S. Department of Labor
4. If a principal files for bankruptcy, the agency is terminated ________.
by operation of law
1. Managers of LLCs ______________ for the debts, obligations, and liabilities of the LLC they manage.
are not personally liable
4.1. As a general rule, members of an LLC are not personally liable to third persons for the debts, obligations, and liabilities of an LLC beyond their _____.
capital contribution
27. Which of the following is an example of tangible personal property?
equipment
22. _____ formation occurs when: 1) a certificate of limited partnership is not properly filed; 2) there are defects in a certificate that is filed; or 3) some other statutory requirement for the creation of a limited partnership is not met.
defective
13.21. Owners of corporations are called _____.
shareholders
Assuming this is a destination contract, who will be responsible for the lost package?
your co will be responsible
25. Which of the following statements about voluntary dissolution is NOT true?
A corporation cannot be voluntarily dissolved.
9.1. A power of attorney is an _____ agency agreement that is often used to give a(n) _____ the power to sign legal documents on behalf of the _____.
express; agent; principal
4. Since Jack Johnson has a $30 million contract, he will most likely be required to file for _______________ bankruptcy.
Chapter 13
To help draft the lease agreements for Hover, you need to identify the various parties. Match the appropriate labels with the appropriate parties.
Hover = lessor the photographer = lessee
21.4. Which of the following is an INCORRECT statement regarding limited liability companies (LLCs)?
LLCs are creatures of federal statue.
30. What is the main difference between unsecured credit and secured credit?
Secured credit requires collateral of the debt amount.
6. France is a permanent member nation of a council that is primarily responsible for maintaining international peace and security and has the authority to use armed force. The council that France is a permanent member of is called the UN ___________________.
Security Council
11. Which of the following is an INCORRECT statement regarding race and color discrimination?
The EEOC does not recognize the Pacific Islander racial classification.
6. Which of the following is an INCORRECT statement regarding the European Union?
The EU represents fewer people than the current population of the United States.
8. Which of the following is an INCORRECT statement regarding the Food, Drug, and Cosmetic Act (FDCA or FDC Act)?
The FDCA was enacted in 1964.
9. Which of the following is an INCORRECT statement regarding minimum wage?
The federal minimum wage is tied to inflation, with automatic increases to the minimum wage based on the Consumer Price Index (CPI).
20. Which of the following is an INCORRECT statement regarding the UN Secretariat?
The secretary-general of the UN Secretariat is elected by the Security Council.
12. Which if the following is NOT true about the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985?
Under most circumstances, COBRA coverage is available for 24 months after employment has ended.
1.14. With a(n) _____ power of attorney, a principal confers powers on an agent to act in specified matters on the principal's behalf.
special
20. Which of the following is an INCORRECT statement regarding a limited liability limited partnership (LLLP)?
An LLLP is a type of general partnership.
17. Which of the following is an INCORRECT statement regarding an LLLP?
An LLLP requires at least two general partners and at least two limited partners.
1. Which of the following is a correct statement regarding a limited liability company (LLC)?
An LLC is a separate legal entity from its members.
16. Which of the following is an INCORRECT statement regarding a limited liability limited partnership (LLLP)?
An LLLP is a type of general partnership.
20. Which of the following is an INCORRECT statement regarding the Age Discrimination in Employment Act (ADEA)?
An employer can legally prefer to hire persons 50 years of age or older over persons age 40 to 49. WRONG
4. Which of the following is an INCORRECT statement regarding a sale of goods?
Article 2(A) of the UCC applies to sales contracts for the sale of goods
6. A(n) _____ corporation is a corporation that does not qualify to or does not elect to be federally taxed as an S corporation.
C
22. Jack finds himself overburdened with debt, particularly credit-card debt. Jack does some research and discovers that he qualifies for bankruptcy. At the time he files for bankruptcy, his unsecured credit is $100,000. Jack has few assets, and most of those are exempt property (e.g., his clothes, some furniture). His nonexempt property is $20,000, which will be sold to raise cash. The $20,000 in cash will be distributed to his debtors on a pro rata basis. The other $80,000 is discharged—that is, the creditors have to absorb this loss. Jack is then free from this debt forever. This is an example of which kind of bankruptcy?
Chapter 7—Liquidation
11. _____________________ are ownership rights in real property; the bundle of legal rights that the owner has to possess, use, and enjoy the property.
Estates in land (estate)
33. The shipping term _____ requires the seller to arrange to ship the goods and put the goods in the carrier's possession. The buyer bears the shipping expense and risk of loss while the goods are in transit.
F.O.B. point of shipment
19. The _____________________ is the judicial branch of the United Nations, located in The Hague, the Netherlands.
International Court of Justice (ICJ; also known as the World Court)
11. John applied for a vehicle loan from National Vehicle Loan Agency to purchase his first car. Which of the following actions would NOT be a violation of the Equal Credit Opportunity Act?
National Vehicle Loan Agency rejects his loan, informing him three weeks after he applied that he has too much credit card debt.
11. The general partners of Business Ltd, a limited partnership, vote to make Sasha, a limited partner, president of the limited partnership. Sasha accepts, and she therefore has two distinct relationships with the limited partnership: first as an investor and limited partner and second as a manager (president) of the limited partnership. Sasha can lawfully participate in the management of the limited partnership without losing the limited liability shield granted by her limited partner status under which of the following?
Section 303 of the RULPA
28. Which of the following is an INCORRECT statement regarding unsecured credit?
Since no security interest is associated with the transaction, unsecured credit requires collateral to protect the payment of the debt.
6. Which of the following is an accurate statement regarding the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005?
The Act made it much more difficult for debtors to escape unwanted debt through bankruptcy.
12. Which of the following is an INCORRECT statement regarding the Uniform Partnership Act (UPA)?
The UPA has been adopted in whole or in part by a minority of states
10. Which of the following is an INCORRECT statement regarding the creation of a limited liability partnership (LLP)?
The articles of limited liability partnership is a private document.
14. Which of the following is an INCORRECT statement regarding the name of a general partnership?
The name selected by the partnership can indicate that it is a corporation.
6. Which of the following is an INCORRECT statement regarding the name of a general partnership?
The name selected by the partnership can indicate that it is a corporation.
Ch 12 Mini Sim on Remedies for Breach of Sales and Lease Contracts
The seller's or lessor's basic obligation is the tender of delivery , or the transfer and delivery of goods to the buyer or lessee in accordance with a sales or lease contract [UCC 2-301]. Tender of delivery requires the seller or lessor to (1) put and hold conforming goods at the buyer's or lessee's disposition and (2) give the buyer or lessee any notification reasonably necessary to enable delivery of goods. The parties may agree as to the time, place, and manner of delivery. If there is no special agreement, tender must be made at a reasonable hour, and the goods must be kept available for a reasonable period of time.
17. Which of the following is an INCORRECT statement regarding Title VII remedies?
The sum of compensatory and punitive damages recoverable is potentially unlimited.
2. Suppose that the state of California enters into a treaty with the country of China that reduces trade barriers between California and China. Which of the following is an accurate statement regarding the legality of the treaty?
The treaty violates the Treaty Clause of the United States Constitution.
2.12. The _____ is a model act that provides comprehensive and uniform laws for the formation, operation, and dissolution of LLCs.
ULLCA
7. Which of the following is NOT an autonomous agency of the United Nations?
UNOCAL
10. Canada has found itself in a dispute with France over the breach of a trade agreement that the two countries had formed. Canada decides to initiate a proceeding with the World Trade Organization about the breach that is believed to have occurred in their agreement with France. The dispute between Canada and France will be heard first by a three-member __________________.
WTO panel
5. A limited liability partnership in any state other than the one in which it is organized is called .
a foreign LLP
24. The goal of federal bankruptcy law to grant a debtor relief from some of his or her burdensome debts while protecting creditors by requiring the debtor to pay more of his or her debts than would otherwise have been required prior to the 2005 act, was to give the debtor .
a fresh start
9.9. _______________ is an arrangement in which two or more business entities combine their resources to pursue a single project or transaction
a joint venture
24. Two companies enter into a shipping contract that requires the seller to bear the expense and risk of loss of the goods during transportation. However, the seller is under no duty to deliver replacement goods to the buyer because there is no contractual stipulation that the goods will arrive at the appointed destination. This scenario best describes which of the following commonly used shipping terms?
a no-arrival, no-sale contract
2. You would like to start a new company that provides tutoring services in English for students who speak multiple languages. Which of the following types of corporations would be the best fit for your company?
a nonprofit corporation
17. You believe that you have been discriminated against in the workplace. You cannot immediately file a lawsuit against your employer, so you must first file a complaint with the EEOC. The EEOC agrees with you and finds a violation. The EEOC chooses not to bring suit. The EEOC then issues you a letter that gives you the right to sue your employer. What is this letter called?
a right to sue letter
18. In regard to security breach notification laws _______________.
all 50 states have enacted security breach notification laws, also called data breach notification laws
6. Suppose Georgia Pacific, Inc. interviews Albert Iorio for a sales representative position. Iorio, accompanied by Jane Franklin, the national sales manager, visits retail stores located in the open sales territory. While visiting one store, Franklin tells the store manager, "I wish I had more sales reps like Albert." Nevertheless, Iorio is not hired. If Iorio later enters into contracts with the store on behalf of Georgia Pacific and Franklin has not controverted the impression of Iorio that she left with the store manager, the company will ______.
be bound to the contract, based on Iorio's apparent agency
12. The National Traffic and Motor Vehicle Safety Act is a federal safety regulation that governs all of the following means of transportation EXCEPT __________.
bicycles
17. Discrimination based on protected classes other than race or color is permitted if it is shown to be a _____________________.
bona fide occupational qualification
10. When an unsecured debtor defaults on a loan, the creditor may ________.
bring legal action against the debtor
5. A termination of agency where a situation arises that makes the fulfillment of the agency not possible is known as a termination ________.
by impossibility of performance
4. If the U.S. Department of Justice allegations are true, Bank of America directors and officers might have violated which of the following duties?
care
25. The doctrine of _____, or "let the buyer beware," governed the law of sales and leases for centuries.
caveat emptor
1. Suppose Shoko purchases an automobile from a car dealership. She borrows part of the purchase price from a lender. The lender requires Sarah to give it a security interest in the automobile to secure the loan. This is a secured transaction, with the automobile being _____ for the loan.
collateral
23. A warranty _____ negates express and implied warranties.
disclaimer
8. An agent enters an authorized contract with a third party on the principal's behalf, the principal fails to perform on the contract, and the third party recovers a judgment against the agent. The agent can recover this amount from the principal because of the ___________.
duty to indemnify
20. Amanda is a general medical practitioner in a rural area who makes house calls. Amanda is held to the standard of a reasonable general practitioner in rural areas. As an agent, this standard is a part of Amanda's .
duty to perform
14. Charles owns a piece of land on which he has constructed a house. There are no limitations on his ownership rights, and he owns this property for the duration of his lifetime. Charles can transfer the property by will to a named beneficiary or beneficiaries when he passes away. The type of freehold estate represented by Charles's ownership is best described as __________________________.
fee simple absolute (fee simple)
23. A limited partnership has two types of partners: _____.
general and limited
23. Property that includes securities, patents, trademarks, and copyrights is called .
intangible personal property
32. In a lease contract, the _____ is the person who acquires the right to possession and use of goods under a lease.
lessee
19.29. Shareholders of a corporation generally have _____ liability for the debts and obligations of the corporation.
limited
18. _________, which is job-related experience, education, or unbiased ability test, is a defense to Title VII discrimination.
merit
20. A _____________________ is a treaty involving more than two nations.
multilateral treaty
10. If Kiki buys a lot from Joey that is landlocked (meaning the purchased lot has no direct access to a road), if Kiki can drive over Joey's lot to reach the nearest road, this is known as an easement by ________.
necessity
16. The bankruptcy estate is created _____.
on the commencement of a bankruptcy case
8. Edwardo, an owner of real property, conveys his property "to Carmen Lawson for life, then to Raul Sanchez." Since the property will go to Raul after Carmen's death, Raul's interest is known as a ________.
remainder
3. _______________ are the resulting assets from the sale, exchange, or disposal of collateral subject to a security agreement.
sale proceeds
5. A is a form of business in which the owner is actually the business; the business is not a separate legal entity.
sole proprietorship
9. A _____ warranty deed, also known as a(n) _____ warranty deed, protects a buyer only from defects in title that were caused by the seller.
special; limited
4. Saundra, a 30-year-old college graduate, goes on a job interview for an open position at a company. The interviewer asks Saundra if she plans on having children and if that would affect her ability to come to work every day or to perform her duties. The interviewer is also concerned that having children would affect her ability to travel on company business. Saundra tells the interviewer that she has not decided whether she will have children yet. The company refuses to hire Susan because she is a woman who might have children. This is a violation of which of the following?
the Pregnancy Discrimination Act
10. A model act that permits a new form of entity called a limited liability limited partnership (LLP) wherein all of the partners are provided limited liability is called .
the Uniform Limited Partnership Act (2001; also known as re-RULPA)
2. A sole proprietor has _____ personal liability.
unlimited
17. Which of the following is an accurate statement regarding the liability of a principal for an independent contractor's torts?
Generally, a principal is not liable for the torts of its independent contractors.
23.10. Which of the following is an INCORRECT statement regarding corporate shareholders?
Generally, shareholders have unlimited liability for corporate debts.
2. _____ of a security interest is a process that establishes the right of a(n) _____ creditor against other creditors who claim an interest in the collateral.
Perfection; secured
17. A(n) _______ owns trademarks, service marks, trade names, and other intellectual property and contracts to permit the _______ to use its trademarks, service marks, trade names, and other intellectual property in the distribution of goods, services, software, and digital information.
licensor; licensee
29.23. Under the _____ test, if the agent's motivation for committing an intentional tort is to promote the _____ business, the principal is liable for any injury caused by the tort.
motivation; principal's
32. To be lawful, an affirmative action plan must be _________ tailored to achieve some ________ interest.
narrowly; compelling
10. Under Title I of the Americans with Disabilities Act (ADA), an employer has a duty to _____ accommodate an individual's disability if doing so does not cause a(n) _____ the employer.
reasonably; undue hardship on
43. The right of _____ allows the mortgagor to redeem real property after _____ and before _____.
redemption; default; foreclosure
18. You're going on a two-month-long road trip. You decide to give your sister the power to make all decisions on your behalf while you're gone. This power includes the power to purchase or sell stocks or real estate, pursue or defend lawsuits, and to make all other relevant decisions. Which of the following did you confer on your sister?
a general power of attorney
16. Workers who have been let go because of _____________ or who ___________________ are not eligible to receive unemployment benefits under the Federal Unemployment Tax Act (FUTA).
bad conduct; voluntarily quit work without just cause
1. According to the video, why did the Department of Justice pursue litigation against Bank of America?
because Bank of America was selling "toxic" mortgage securities backed by inadequately secured loans and violating mortgage fraud and consumer protection laws
10. Damages that parties to a contract agree in advance should be paid if the contract is breached are called .
liquidated damages
9. During what decade was the Association of Southeast Asian Nations created?
1960s
19. Which of the following is a correct statement regarding a merger?
A merger occurs when one corporation is absorbed into another corporation.
11. Which of the following establishes a comprehensive, uniform law covering the formation, performance, and default of leases in goods?
Article 2A of the UCC
1. Article _____, Section _____, Clause _____ of the United States Constitution states that the President "shall have power, by and with the advice and consent of the Senate, to make treaties, provided two-thirds of the senators present concur."
Article II, Section 2, Clause 2
14. While browsing the Internet, you come across a notice from the Consumer Product Safety Commission (CPSC) that announces the recall of a candle warmer product you have in your home because the product poses fire and burn hazards to customers. The CPSC is authorized to require the manufacturer to recall the candle warmers under the _________________.
Consumer Product Safety Act (CPSA)
20. You work for a pharmaceutical company that produces a variety of prescription and nonprescription drugs. Your job is to assist in preparing applications for new drugs that are then submitted to the FDA for licensing. The pharmaceutical company you work for must submit applications to the FDA for approval under the ___________________, which gives the FDA broad powers to license new drugs in the United States.
Drug Amendment to the FDCA
1. Suppose that General Motors Corporation and Ford Motor Company, two United States automobile manufacturers, are headquartered in the state of Michigan. Michigan, in order to reduce the sales of foreign-made automobiles in the state, enacts a state law that imposes a 50 percent tax on foreign-made automobiles sold in the state but does not impose this tax on American-made automobiles sold in the state. This tax violates the _____ Clause of the United States Constitution.
Foreign Commerce
21. Giant Corporation Inc. is headquartered in the state of California. California, in order to protect California's ocean shores from pollution, enacts a state law that places a 10% tax on all water bottle sales in the state, whether the water is imported from foreign countries or bottled from a source in the United States. This law does not violate the _______________________ because it does not treat foreign commerce any differently than domestic commerce.
Foreign Commerce Clause
33. __________________ occurs when (1) a debtor transfers property to a third person within two year of the filing of a petition in bankruptcy, and (2) the transfer was made by the debtor with an intent to hinder, delay, or defraud creditors.
Fraudulent transfer
29. Which of the following is an INCORRECT statement regarding statements of opinion?
Puffing creates an express warranty.
25. ___________________ is the land itself as well as buildings, trees, soil, minerals, timber, plants, and other items permanently affixed to the land.
Real property
11. Which of the following is an INCORRECT statement regarding formation of a general partnership?
Stock of the partnership, representing ownership, must be publicly traded on a well-known stock exchange (for example, NASDAQ).
8. Which of the following is an INCORRECT statement regarding pregnancy discrimination?
When it was originally enacted in 1964, Title VII of the Civil Right Act expressly prohibited pregnancy discrimination as an illegal form of employment discrimination.
11. is the process by which a dissolved corporation's assets are collected, liquidated, and distributed to creditors, preferred shareholders, and common shareholders.
Winding up and liquidation
12. Which of the following is NOT true about the Federal Unemployment Tax Act (FUTA)?
Workers who have been let go for cause, such as for illegal activity or drug use on the job, or who voluntarily quit work without just cause are eligible to receive unemployment benefits.
17. Leonora Parks is the head of an organization that is an agency of the United Nations. It is the responsibility of her agency to provide money to developing countries. Under her leadership, the agency has funded thousands of projects for humanitarian purposes and relieved poverty in countries around the world. Leonora Parks is the head of the _______________.
World Bank
13. The _____________________ is an international organization of 160 member nations created to promote and enforce trade agreements among member countries and customs territories.
World Trade Organization (WTO)
1. The owner of a construction company purchases a large tower crane from Builder's Incorporated, a retail dealer, on credit and gives the secured creditor an interest in the collateral. The owner of the construction company is which of the following?
a debtor
15. Arielle, who is driving her automobile, is injured when another driver negligently causes an automobile accident. Arielle then hires a lawyer to represent her on a 35 percent contingency-fee basis. If the lawyer wins the case for Arielle or settles the case with Arielle's approval, he will earn 35 percent of whatever is collected from the defendant. If the lawyer does not win or settle the lawsuit, he gets paid nothing. In this scenario, Arielle has which of the following duties?
a duty to compensate
13. Megan, who owns a piece of vacant real estate, hires Dashiell, a licensed real estate broker, to list the property for sale. Matt, an adjacent property owner to Megan's property, tells Dashiell that a chemical plant has polluted his property and probably Megan's property. As an agent, Dashiell has a duty to tell Megan about the pollution. Dashiell's duty in this scenario is which of the following?
a duty to notify
9. Which of the following is NOT covered by the Family and Medical Leave Act (FMLA)?
a family reunion or other family gathering that requires out-of-state travel
11. Angelica borrows $500,000 from University Bank to buy her first house. Angelica gives a mortgage to University Bank, making the house collateral to secure the loan. Later, Angelica defaults on the loan. University Bank can then follow applicable state law to sell the house at a judicial sale. If the house sells for $575,000, the bank keeps $500,000 and must remit $75,000 to Angelica. The bank's actions are an example of which of the following?
a foreclosure sale
17. _____ treaties are between two nations.
bilateral
15. A principal, Nigel Jones, and an agent, Marcia McKee, agree that the agent will represent the principal to purchase a business and that the agent will disclose the existence of the agency and identity of the principal to third parties. The agent finds a suitable business and contracts to purchase the business on behalf of the principal, but the agent mistakenly signs the contract "Marcia McKee, agent." This is a(n) _____ agency that occurs because of _____.
partially disclosed; mistake
19. A process that establishes the right of a secured creditor against other creditors who claim an interest in the collateral is called .
perfection of a security interest
25.26. A party who employs another person to act on his or her behalf is called a(n) _____.
principal
3. A party who employs another person to act on his or her behalf is called a(n) __________.
principal
26.11. A multinational corporation is also known as a(n) _____ corporation.
transnational
5. An LLC is a _____-managed LLC unless it is designated as a _____-managed LLC in its articles of _____.
member; manager; organization
18.20. Managers of LLCs are _____ liable for the debts, obligations, and liabilities of the LLC they manage.
not personally
10. The Menu Labeling Rule requires restaurants and retail food establishments with _____ or more locations to disclose calorie counts of their food items and supply information on how many calories a healthy person should eat in a day.
20
2. In ______, Congress developed a new federal government agency called the Consumer Financial Protection Bureau (CFPB).
2010
27. Article _____ (Leases) of the UCC directly addresses personal property leases.
2A
10. Which of the following is a correct statement regarding a quitclaim deed?
A quitclaim deed is a deed in which the grantor transfers only whatever interest he or she has in the real property.
14. Many employers maintain seniority systems that reward long-term employees. Which of the following is NOT one of the systems to reward long-term employees?
A seat on the board of directors
24. Which of the following is an INCORRECT statement regarding disclaimer of the implied warranty of fitness for a particular purpose?
A seller cannot disclaim the implied warranty of fitness for a particular purpose.
23. Which of the following is an INCORRECT statement regarding disclaimer of the implied warranty of merchantability?
A seller cannot disclaim the implied warranty of merchantability.
10. Which of the following is an INCORRECT statement regarding gender discrimination?
An employer who discriminates against married women or women with children, but who does not discriminate against females in general, does not violate Title VII.
23. What is the difference between Chapter 7 and Chapter 13 bankruptcy?
Chapter 13 requires debtors to pay some of their future income to pay off prepetition debts, while Chapter 7 does not require it.
14. Which of the following is a former name for the European Union (EU)?
Common Market
13. The _________________________ provides that an employee of a private employer or the employee's beneficiaries must be offered the opportunity to continue group health insurance. Government employees are subject to parallel provisions found in the __________________.
Consolidated Omnibus Budget Reconciliation Act; Public Health Service Act
15. The _____________________ is a federal administrative agency empowered to adopt rules and regulations to interpret and enforce the Consumer Product Safety Act.
Consumer Product Safety Commission (CPSC)
17. Your house sits in the middle of a large plot of former farmland. The government wishes to construct a new section of freeway and has taken your property through the process of eminent domain. Under the ______________________, the government must compensate you a fair amount for your property.
Just Compensation Clause
17. Which of the following is an INCORRECT statement regarding a tenancy at sufferance?
Most states allow owners to use self-help, including force, to evict a holdover tenant.
23. You purchase a cell phone for the first time and receive a new telephone number. After giving your phone number to some national businesses in the course of making purchases, you begin receiving unwanted calls from telemarketers from other businesses at all hours of the day. To stop receiving these telemarketing calls, you should add your phone number to the ______________________.
National Do-Not-Call Registry
7. This treaty creates a free trade zone stretching from the Yukon to the Yucatan, bringing together more than 475 million people across three countries. What treaty is this?
North American Free Trade Agreement (NAFTA)
37. Which of the following is an INCORRECT statement regarding power of sale?
Only a few states permit foreclosure by power of sale, as such a sale is per se unconscionable against the mortgagor and deprives him or her of necessary shelter.
21.21. An owner of a farm employs a real estate agent to sell the farm for $1 million. The agent thereafter learns that oil has been discovered on the property, a discovery that makes the land worth $5 million. Which of the following is true?
The agency terminates because of impossibility of performance. WRONG The agency may be terminated because of this change in circumstances
30. Which of the following is an INCORRECT statement regarding the Fair Housing Act?
The law applies to all persons who own a building of two or more units.
13. Which of the following is NOT true about corporate officers?
The same individual may NOT simultaneously hold more than one office in the corporation.
As you can see there are lot of shipment terms and rules you need to know about before you can ship your rugs. The rules you just learned are based on situations where both parties to the contract do not breach. What happens to the risk of loss rules where there is a breach of a sales contract? You guessed it, there are more rules. Select which rule you'd like to explore
The seller breaches a sales contract.
6. Which of the following is NOT an advantage of a sole proprietorship?
The sole proprietorship "veil" shields the sole proprietor from personal liability for business debts.
Now that we've established when the rugs will be identified, when does title (or Legal, tangible evidence of ownership of goods) of the rugs pass?
Title to goods passes from the seller to the buyer in any manner and on any conditions explicitly agreed on by the parties
4. Which of the following is an INCORRECT statement regarding the Treaty Clause?
Under the Treaty Clause, state governments can enter into treaties with foreign nations, provided that two-thirds of the United States Senate concurs.
21. Which of the following is an INCORRECT statement regarding WTO dispute resolution?
WTO appeals are limited to issues of fact, not law.
22. Norway and Mexico have found themselves in a dispute over a possible breach of a trade agreement between the two countries. It was found by a WTO panel that Norway did, in fact, breach the trade agreement, and the WTO dispute settlement body adopted the panel report. Norway disagrees about the application of the law by the panel and dispute settlement body. Norway can appeal to the ____________________ to resolve these issues of law.
WTO appellate body
14. The ___________________ is a board composed of one representative from each WTO member nation that reviews panel reports.
WTO dispute settlement body
So, what are the rules that govern the UCC's risk of loss analysis? Let's see. To begin to explore them, we need to first identify the goods. Imagine you have three one of a kind rugs for sale, if you plan to sell one to a customer, when should that rug be identified to determine who bears the responsibility if they are damaged or destroyed?
When a contract names the specific rug to be sold
7. Which of the following is NOT an accurate statement about the process of winding up an LLC?
When a member of an LLC is also its creditor, that member's claims are settled and paid after third party creditors.
Would you be making a warranty if you showed a customer a sample Digijump and said, "If you order a Digijump today, it will be just like this one?"
Yes
Is there any way to disclaim (get rid of) the implied warranty of merchantability?
Yes. You could use an "as is" disclaimer
22. A situation in which one corporation is absorbed into another corporation and ceases to exist is called .
a merger
3. An arrangement where an owner of real property borrows money from a lender and pledges the real property as collateral to secure the repayment of the loan is called .
a mortgage
14. A test that determines whether an agent's goal in committing an intentional tort is to promote the principal's business is called .
a motivation test
18. Which of the following refers to a person who can show that he or she has/is: 1. A physical (physiological) or mental (psychological) impairment that substantially limits one or more of his or her major life activities, such as walking, talking, seeing, hearing, or learning. 2. A history of such impairment, such as cancer. 3. Regarded as having such impairment even if he or she does not have the impairment?
a qualified individual with a disability
22. You're going on a two-month-long road trip. Meanwhile, your house is listed for sale. You decide to give your brother the power to make decisions regarding the selling of your house while you are gone, including accepting offers to sell the house and signing documents and deeds necessary to sell the house. Which of the following did you confer on your brother?
a special power of attorney
18. You're looking for a used car, so you visit a few local lots. As you're looking at a used BMW, one of the salespeople comes over and points at the car. "Others would gladly pay $20,000 for this car," he says. The salesperson's statement is an example of which of the following?
a statement of opinion
16. Which of the following is NOT an illegal form of discrimination under Title VII of the Civil Rights Act of 1964?
age
1. Harassment includes all EXCEPT which of the following?
asking a co-worker on a date
34. Under a Chapter 13 petition, the debts of the individual debtor must be primarily ________________ debt.
consumer
3. Under the _____ test, the court asks what a consumer would expect to find or not find in food or drink that he or she consumes.
consumer expectation
12. _____ formation occurs when: 1) a certificate of limited partnership is not properly filed; 2) there are defects in a certificate that is filed; or 3) some other statutory requirement for the creation of a limited partnership is not met.
defective
18. You are the owner of Robots Inc., a company that makes robots for use in private homes. The robots are manufactured in your factories but sold through independent robot dealers that you franchise to make sales to the public. Robots Inc. participates in a model best described as a(n) _____________ franchise.
distributorship
1. Which of the following is NOT a duty of the principal?
duty to perform
25. At the grocery store, you notice a new brand of cereal. The front of the box says, "TotallyGood Crunch," and text in a callout reads, "boosts your immune system." Although the cereal contains some vitamins and antioxidants, consuming TotallyGood Crunch won't actually prevent you from becoming ill. The "boosts your immune system" claim on the TotallyGood Crunch box is an example of ___________________.
false and misleading labeling
22. Advertising is _____ under Section _____ of the FTC Act if it contains misinformation or omits important information that is likely to mislead a "reasonable consumer" or makes an unsubstantiated claim.
false and deceptive; 5
21. Jennifer, a salesperson, is on an assignment for her employer in San Jose, California. She then deviates from her assignment and decides to drive up to San Francisco to meet a friend for lunch. On the way there, Jennifer is involved in an accident. Jennifer's employer would not be liable because Jennifer's negligence actions stemmed from which of the following?
frolic and detour
4. Jennifer, a salesperson, is on an assignment for her employer in San Jose, California. She then deviates from her assignment and decides to drive up to San Francisco to meet a friend for lunch. On the way there, Jennifer is involved in an accident. Jennifer's employer would not be liable because Jennifer's negligence actions stemmed from which of the following?
frolic and detour
25. Cheryl, a female employee at Big Business Corporation, applies for an open management position within the company. The person in charge of the hiring committee calls Cheryl into his office and tells her that he won't be promoting Cheryl because he's concerned that her menstrual cycle will negatively affect her ability to make important decisions. Big Business Corporation's refusal to promote Cheryl in this scenario is an example of which of the following types of discrimination?
gender discrimination
1. The Equal Employment Opportunity Commission (EEOC) is the federal agency responsible for enforcing most federal anti-discrimination laws. The EEOC is empowered to do all of the following EXCEPT __________.
issue warrants of arrest
8. Under the Uniform Partnership Act, general partners have _____ liability for torts and breaches of trust committed by a partner or an employee of the general partnership while acting on partnership business.
joint and several
22. Chris and Christie, brother and sister, form C&C, an LLC, to own and operate a business. Each contributes $20,000 capital. While driving around the local community on LLC business, Chris accidentally hits and injures a pedestrian, Angela. Angela can recover damages for her injuries from Chris personally because he committed the negligent act. She can also recover damages from C&C, LLC, because Chris was acting within the scope of ordinary business when the accident occurred. Christie is only liable up to her $20,000 capital. This is because Christie, as a member, has .
limited liability
13. Lucretia is a partner in an LLP that will dissolve once the LLP has completed a contract with the city of Chicago to paint a series of murals. Lucretia decides that she would rather be employed at a bank than paint murals during the winter and withdraws from the partnership. Since the partnership was a ______, she _______ for damages to the partnership and other partners.
partnership for a term; is liable
20.19. The party who employs an independent contractor is called a(n) _____.
principal
4. Sally hires Micah to work as an employee at her firm. Micah has the ability to enter into contracts on behalf on Sally. This is called a(n) ________.
principal-agent relationship
3.21. The dissolution of a limited liability company arises by all of the following EXCEPT __________.
satisfying all the claims against the partnership
16. Before transacting business in a foreign state, a foreign limited partnership must file an application for registration with that state's _____.
secretary of state
17. The Fair Housing Act of 1968 makes it unlawful for a party to refuse to sell, rent, finance, or advertise housing to any person for the basis of any of the following reasons EXCEPT __________.
sexual orientation
17. Which of the following is NOT a major provision of the Sarbanes-Oxley Act?
shareholder liability
8. Which of the following has NOT been eliminated or reduced through the creation of NAFTA for Mexico, the United States, and Canada?
taxes
31. A _____ is created when a tenant retains possession of property after the expiration of a tenancy or a life estate without the owner's consent.
tenancy at sufferance
1. Theo and James were married on June 20, 2015, and they decided to make their home in Portland, Oregon, where they own a two-story home with an attached garage. The documents of ownership clearly state that should either Theo or James die, their interest in the property will pass to the surviving party. Neither Theo nor James can sell his interest in the property without the other's consent. This form of co-ownership is best described as a ___________________________.
tenancy by the entirety
22. Both Leslie and Ron meet the educational requirements for a particular entry-level job. They are both hired as staff accountants by a company to perform exactly the same duties at their job. The company pays Ron a salary that is 15 percent higher than Leslie's salary. This action is a violation of which of the following?
the Equal Pay Act
3. Melissa's mother has multiple sclerosis, a genetic disease. During a job interview, Melissa offhandedly mentions her mother's disease. The interviewer tells her manager about this fact, and the manager decides not to hire Melissa because they are afraid Melissa might contract her mother's illness, thus requiring her to take large periods of time off work for recovery and treatment. The interviewer and manager have violated which of the following?
the Genetic Information Nondiscrimination Act (GINA)
8. The rightful dissolution of a limited liability company may occur for any of the following reasons EXCEPT __________.
the LLC does not become profitable within 18 months
6. Suppose a worker in a factory reports for work and is walking toward his work station when he trips over some boxes stored on the floor. This would be a violation of _____.
the OSHA general duty requirement to provide safe working conditions
9. After conducting considerable research and investigation, the directors of a major automobile company, American Car Company, decide to produce a large volume of diesel cars. Four years later, when the diesel cars are introduced to the public for sale, few of them are sold because of the public's interest in buying electric and hybrid vehicles due to the increasing environmental damage of pollutants and an increase in gasoline prices. Because this was an honest mistake of judgment on the part of corporate management, American Car Company's judgment is shielded by .
the business judgment rule
35. The UCC incorporates the implied warranty of fitness for human consumption within _____.
the implied warranty of merchantability
18.7. Whose actions create an apparent agency?
the principal's
26. Your friend needs to make a little extra money. She contracts with a romance novel ebook publishing company as a freelance copyeditor for their books. Your friend's relationship with the ebook publishing company is best described as .
the principal-independent contractor relationship
15. is a rule providing that, on the death of a general partner, the deceased partner's right in specific partnership property vests in the remaining partner or partners; the value of the deceased general partner's interest in the partnership passes to his or her beneficiaries or heirs.
the right ship of survivor ship
14. Which of the following is NOT a type of officer authority?
ultra vires
8. In the search for a mortgage agreement to purchase your first home, you visit a mortgage lender, Big Mortgages Inc. The representative puts you in a high-pressure situation and uses extremely aggressive sales tactics, including telling you that no one else will give you a mortgage, and if you leave, you will never be able to purchase a home. Eventually convinced, you to take out a much larger mortgage than you can afford based on your income and other expenses. Overly aggressive sales tactics are an example of ___________________.
unfair and deceptive practices
13. When defendant-employer has the burden of proving an affirmative defense in determining whether the defense has been proven, a court considers all of the following EXCEPT __________.
whether the employees have seen workplace harassment in the past
15. The process of _____ consists of the liquidation (sale) of limited partnership assets and the distribution of the proceeds to satisfy claims against the partnership.
winding up
17. Your father employs a licensed real estate agent to sell your family's house. The agency contract gives the agent an exclusive listing for four months. After one month, your father unilaterally terminates the agency. The agent can no longer act on behalf of your father. Because your father did not have the right to terminate the contract, however, the agent can sue him and recover damages (i.e., lost commission) for which of the following?
wrongful termination
24. _____ discrimination occurs when an employer discriminates against an entire protected class.
Disparate-impact
18. Which of the following is NOT a major provision of the Sarbanes-Oxley Act?
"sliding-scale" cap on nominal damages
26. According to the UCC Statute of Frauds, lease contracts requiring payments of _____ or more must be in writing.
1000
17. When was the Drug Amendment to the FDCA enacted?
1962
16. Article _____ of the UCC applies to domestic transactions in the sales of goods.
2
10. The Bankruptcy Code gives the bankruptcy court the power to void certain fraudulent transfers of a debtor's property made by the debtor within _____ prior to filing a petition for bankruptcy.
2 years
39. The Bankruptcy Code gives the bankruptcy court the power to void certain fraudulent transfers of a debtor's property made by the debtor within _____ prior to filing a petition for bankruptcy.
2 years
30. How many states have enacted all or parts of the UCC as statutes?
50
20. According to the UCC Statute of Frauds, all contracts for the sale of goods priced at _____ or more must be in writing.
500
8.24. Which of the following is an INCORRECT statement regarding corporate management?
A corporation usually has a decentralized management.
15. Which of the following is an INCORRECT statement regarding product and automobile safety?
A private party cannot sue for an injunction to prevent violations of the CPSA.
16. The _____________________ is an organization comprised of all 55 countries located on the African continent.
African Union (AU)
4. Which of the following is an INCORRECT statement regarding workers' compensation insurance?
As a general rule, states do not require employers to purchase workers' compensation insurance to cover workers' compensation claims.
14. Assume that a car salesperson is employed to sell the principal's car. The principal tells the agent that the car was repaired after it was involved in a major accident. If the agent intentionally tells the buyer that the car was never involved in an accident, the agent has made an intentional misrepresentation. Which of the following statements is true?
Both the principal and the agent are liable for this misrepresentation
21. This chapter discusses religious laws and how they govern for four specific religions. Which of the following is NOT one of the religions?
Buddhism
22. Which of the following is an INCORRECT statement regarding the UN Security Council?
Canada is a permanent member of the UN Security Council.
22. Canon law consists of laws and regulations that have been adopted by __________ and other Christian ecclesiastical authorities that relates to internal laws that govern the church and its member. Canons established the structure of the church, definition of faith, rules of conduct, laws of marriage, and laws of _____________________.
Catholic; inheritance
24. The _________________________ is an association composed of the United States and the Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.
Central America Free Trade Agreement (CAFTA)
35. _____ secures payment of a loan.
Collateral
13. stock is a type of equity security that represents the residual value of a corporation.
Common
9. ___________________ is a form of ownership in which each spouse owns an equal one-half share of the income of both spouses and the assets acquired during the marriage.
Community property
22.13. Which of the following is an INCORRECT statement regarding the duration of a corporation's existence?
Corporations automatically expire twenty (20) years after the secretary of state's issuance of a certificate of incorporation unless the owners of the corporation expressly petition the secretary of state for a renewal of the corporate charter.
3. Which of the following is an INCORRECT statement regarding the creation of a sole proprietorship?
Creation of a sole proprietorship utilizes the same procedure for the creation of a corporation.
11. Which of the following is NOT an important question to answer in determining whether an agent's conduct occurred within the scope of his or her employment?
Did the agent possess the required professional licensure(s)?
42. _____ is a court order that relieves a debtor of the legal liability to pay his or her debts that were not paid in the bankruptcy proceeding.
Discharge
15. _____ discrimination occurs when an employer treats a specific individual less favorably than others because of that person's race, color, national origin, sex, or religion.
Disparate-treatment
4. The federal Food, Drug, and Cosmetic Act (FDCA) gives the _____ the authority to regulate the testing, manufacture, distribution, and sale of drugs.
FDA
23. The _____ guarantees workers up to 12 weeks of unpaid leave in a 12-month period to attend to family and medical emergencies and other specified situations.
FMLA
20. Under the _____________________, employees must make contributions (i.e., pay taxes) into the Social Security fund. Under the ___________________________, self-employed individuals must pay Social Security contributions, too.
Federal Insurance Contributions Act; Self-Employment Contributions Act
13. The _______________________ is a federal administrative agency that administers and enforces the federal Food, Drug, and Cosmetic Act and other federal consumer protection laws.
Food and Drug Administration (FDA)
9. A drug company, Bad Wolf Incorporated, has developed a new drug to treat the growth of irregular toenails. BW Inc. is preparing to sell this drug to the public but must first submit an application to the FDA containing information about the safety and possible uses of the product. BW Inc. may only sell the drug if the FDA approves the application. BW Inc. must get approval to sell this drug to the public under the ________________.
Food, Drug, and Cosmetic Act (FDCA or FDC Act)
15. Which of the following is an INCORRECT statement regarding the compensability of a workers' compensation claim?
For an injury to be compensable under workers' compensation, the claimant must prove that he or she was harmed by the intentional or negligent act of a co-worker.
27.16. Which of the following is NOT an advantage to franchising?
For the franchisee, there are no start-up expenses.
26. Article I, Section 8, Clause 3 of the United States Constitution is also known as the _____ Clause.
Foreign Commerce
6. Which of the following is an INCORRECT statement regarding a manager-managed LLC?
In a manager-managed LLC, all actions can be delegated to managers by members of the LLC.
20. Which of the following is NOT an accurate statement about joint ventures?
Joint ventures resemble partnerships, in that they are usually formed to pursue ongoing business opportunities.
19. _____ resemble partnerships, often forming a new corporation, except that they ______.
Joint ventures; focus on a single project or transaction
4. For which of the following debts of an LLC would the members of the LLC be personally liable?
LLC members do not have personal liability to third parties
14. The _____ requires food manufacturers and processors to provide nutrition information on many foods and prohibits them from making scientifically unsubstantiated health claims.
NLEA
2. Nathan opens a clothing store called "The Clothing Store" and operates it as a sole proprietorship. Nathan files the proper statement and publishes the necessary notice of the use of the trade name. Nathan contributes $25,000 of his personal funds to the business and borrows $100,000 from a bank in the name of the business. After several months, Nathan closes the business because it is unsuccessful. At the time it is closed, the business has no assets, owes the bank $100,000, and owes other debts of $25,000. Which of the following is a correct statement regarding Nathan's personal risk exposure for his unsuccessful business?
Nathan loses his $25,000 capital contribution, and he is responsible for the $100,000 debt owed to the bank and the $25,000 debt owed to others.
3. Nathan opens a clothing store called "The Clothing Store" and operates it as a sole proprietorship. Nathan files the proper statement and publishes the necessary notice of the use of the trade name. Nathan contributes $25,000 of his personal funds to the business and borrows $100,000 from a bank in the name of the business. After several months, Nathan closes the business because it is unsuccessful. At the time it is closed, the business has no assets, owes the bank $100,000, and owes other debts of $25,000. Which of the following is a correct statement regarding Nathan's personal risk exposure for his unsuccessful business?
Nathan loses his $25,000 capital contribution, and he is responsible for the $100,000 debt owed to the bank and the $25,000 debt owed to others.
13. The Mercosur trade bloc in South America provides all of the following benefits to its members EXCEPT which of the following?
Negotiate collective trade deals with other trade organizations
19. Which of the following is an INCORRECT statement regarding national courts and international dispute resolution?
Only a relatively small number of cases involving international law disputes are heard by national courts of individual nations.
1. Which of the following is an INCORRECT statement regarding the Occupational Safety and Health Act?
Private employers are not subject to the act.
21. In which of the following situations would Lucy be able to have her student loan debt discharged during bankruptcy?
She is unable to pay for food for her children.
2. Which of the following is an INCORRECT statement regarding unsecured credit?
Since no security interest is associated with the transaction, unsecured credit requires collateral to protect the payment of the debt.
18. Which of the following is NOT true about false and deceptive advertising?
Statements of opinion and sales talk (e.g., "This is a great car") constitute false and deceptive advertising.
4. Which of the following is an INCORRECT statement regarding workers' compensation?
States usually require employers to self-insure for workers' compensation claims.
11. Which of the following is an INCORRECT statement regarding the regulation of drugs?
The FDCA gives the CPSC the authority to regulate the testing, manufacture, distribution, and sale of drugs.
1. _____________ is empowered to remove "quack" devices from the consumer market?
The Food and Drug Administration (FDA)
10. Which of the following is an INCORRECT statement regarding the UN General Assembly?
The General Assembly is the executive body of the UN.
11. Which of the following regulates the safety of school buses?
The NHTSA
6. Which of the following is an INCORRECT statement regarding food labeling?
The NLEA does not apply to packaged foods, since such foods are regulated by the United States Department of Agriculture.
7. Which of the following is NOT true about the Nutrition Labeling and Education Act (NLEA)?
The NLEA requires drug manufacturers to disclose the number of calories derived from fat and the amount of dietary fiber, saturated fat, trans fat, cholesterol, and a variety of other substances contained in the drug.
25. Which of the following is an INCORRECT statement regarding product and automobile safety?
The United States Congress enacted the Consumer Product Safety Act (CPSA) in 1992.
7. Which of the following statements about the government's power of eminent domain in taking real property is NOT true?
The government is only obligated to provide just compensation when private property is taken for commercial purposes.
12. Suppose an LLP that has three partners enters into a contract to lease office space from a landlord for a ten-year period. Three years later, the LLP fails, unable to pay for the remaining seven years' rent. The landlord sues both the LLP and the partners for breach of contract. The LLP is liable but has no money to pay. What is the liability of the three partners?
The partners are not personally liable for the LLP's obligation to the landlord.
15.6. An LLP's operating agreement may include a continuation agreement that involves a buyout of a withdrawing partner's interest in the LLP and can be in the form of all of the following EXCEPT:
The partners can agree to go bankrupt.
23. Which of the following is an INCORRECT statement regarding an international subsidiary corporation?
The subsidiary corporation is organized under the laws of the home country.
21. Wayne, who is 50 years old, applies for an open position as manager at Big Box Retail Stores, Inc. Wayne meets the job requirements of having a college degree and prior experience as a store manager and is otherwise qualified for the job. The employer refuses to hire Wayne because of his age and hires someone who is 30 years old for the job. Which of the following is a correct statement regarding Bix Box Retail Stores' refusal to hire Wayne?
This is age discrimination in violation of the ADEA.
23. Uniformed Services Employment and Reemployment Rights Act of 1994, as amended by the Veterans' Benefits Act of 2010, is a federal statute that safeguards and grants employment benefits to individuals who serve or have served in the U.S. military services including all of the following EXCEPT the __________.
U.S. Postal Service
1. Which of the following federal administrative agencies conducts inspections of food processing and storage facilities?
USDA
2. According to the video, the ______________ reached a $16.6 billion settlement with Bank of America. The ______________ was enacted to reduce the type of activities with which the Bank of America was charged.
United States Department of Justice; Sarbanes-Oxley Act
18. _____ credit does not require any security to protect the payment of the debt.
Unsecured
18. A WTO member nation that believes that another member nation has breached a trade agreement can initiate a proceeding to have the WTO hear and decide the dispute. The dispute is first heard by a _____.
WTO panel
8. Which of the following is a corporation that pays taxes at the corporate level and whose shareholders pay taxes on dividends paid by the corporation?
a C corporation
23. Dean and Miley are entering into a limited partnership. They know that the creation of a limited partnership is formal and requires public disclosure. They prepared a document that complies with the statutory requirements of the RULPA, signed the document, and filed it with the secretary of state. Dean and Miley have executed which of the following?
a certificate of limited partnership
1. You and your twin brother decide to start a carpentry business called Bro & Bro Carpentry. Your business will be a private for-profit corporation whose shares are owned by a few shareholders who are family members, relatives, and friends. Bro & Bro Carpentry is which kind of corporation?
a closely held corporation
12. Which of the following expressly sets forth the events that allow for continuation of the partnership, the amount to be paid outgoing partners, and other details?
a continuation agreement
9. In a limited partnership, who invests capital, manages the business, and is personally liable for the partnership's debts?
a general partner
16. Debbie owns a principal residence worth $500,000 that is subject to a $400,000 mortgage. She therefore owns $100,000 of equity in the property. Debbie then files a petition for Chapter 7 liquidation bankruptcy. The trustee may sell the home, pay off the mortgage, pay Debbie $22,975, and use the remaining proceeds of $77,025 for distribution to the debtor's creditors. The $22,975 is a part of which of the following?
a homestead exemption
10. Laurie and Steve own a small candy shop together, located on Main Street in Allentown, Pennsylvania. Their agreement spells out that should one of the parties die, that person's interest automatically passes to the surviving party. Laurie and Steve's agreement is best described as ____________________.
a joint tenancy
16. A special form of partnership in which all partners are limited partners, and there are no general partners, is called .
a limited liability partnership (LLP)
7. Meagan has just joined a limited partnership by investing with a capital contribution. However, she is not required to participate in management and is not personally liable for partnership debts beyond her capital contribution. Meagan is which kind of partner?
a limited partner
21. Emma, Emily, Diana, and Jill form an LLC. Emily and Emma are named as manager. Emma enters into a contract to purchase goods from a supplier for the LLC. Diana enters into a contract to lease equipment on behalf of the LLC. The LLC is bound to the contract entered into by Emma, but is not bound to the contract entered by Diana. This is because the LLC is which of the following?
a manager-managed LLC
19. Ashley and Anja enter into a partnership for a new business. In their general partnership agreement, they decide to leave out any specifics for when their partnership will be terminated. Ashley and Anja's partnership is an example of which of the following?
a partnership at will
14.26. ____________ is an arrangement between two or more companies whereby they agree to ally themselves and work together to accomplish a designated objective.
a strategic alliance
20. Platinum, Inc., a mining company, purchases equipment on credit from a mining equipment dealer. The dealer retains a security interest in the mining equipment that becomes collateral for the loan. This is an example of which of the following?
a two-party secured transaction
3. The Food, Drug, and Cosmetic Act prohibits the shipment, distribution, or sale of _____ food.
adulterated
24.11. Which of the following circumstances can lead to termination of an agency by impossibility of performance?
after the contract is formed, it becomes more difficult for the principal to perform his or her agency-related duties WRONG - The loss or destruction of the subject matter of the agency
4. Oilmasters Company enters into a contract to sell oil to another company, and the contract has two years remaining when the oil company files for Chapter 11 bankruptcy. In the Chapter 11 reorganization proceeding, Oilmasters Company can reject (get out of) this contract without any liability, or it can keep it, if doing so is in its best interests. This contract is an example of which of the following?
an executory contract
11. Tom is opening a new nightclub. He hires Andy to work as a fire baton twirler. Tom cannot avoid liability if Andy gets hurt because working with fire is considered .
an inherently dangerous activity
25. A member of the board of directors who is also an officer of the corporation is called .
an inside director
8. A situation where an agency terminates because an unexpected change in circumstances has occurred that would lead the agent to believe that the principal's original instructions should no longer be valid is called termination of an agency by .
an unusual change in circumstances
23. Martin and Carl own properties that are adjacent to one another, and Carl's property abuts a public pond and grazing area for animals. For 35 years, Martin has crossed to the pond and grazing area via a path that cuts across the back of Carl's property. Martin's longtime use of the path across Carl's property has created an easement _____________________.
appurtenant
10.10. In a(n) _____ franchise, the franchisor authorizes the franchisee to negotiate and sell franchises on behalf of the franchisor.
area
23. Dairy Queen wanted to enter a foreign country to operate its ice-cream shops, so it granted a franchise to a foreign company operating in that country, which then was in charge of negotiating and selling individual franchisees in that country. The type of franchise exemplified in this scenario is a(n) _____________ franchise.
area
8. Ryan and Carly are planning to enter into a limited partnership in which neither the general partners nor the limited partners have personal liability for the debts and obligations of the partnership. They agree that debts of the partnership are solely the responsibility of the partnership, not of the general or the limited partners. In order to organize their partnership under state law, Ryan and Carly need to file with the secretary of state's office.
articles of limited liability limited partnership
1. A limited partnership agreement is also called the _____.
articles of limited partnership
13. _____ is a situation in which a creditor has an enforceable security interest against a debtor and can satisfy the debt out of the designated collateral.
attachment
21.22. The number of shares provided for in the articles of incorporation is called ____________ shares.
authorized
24. Which of the following is NOT a type of real property?
automobiles
34.20. Which of the following is NOT an example of a breach of a director's or officer's duty of care?
a director's or an officer's failure to realize a profit for the corporation in any given calendar or fiscal year
9. National origin discrimination includes discrimination against employees or job applicants for all EXCEPT which of the following reasons?
a person's undocumented immigrant status
19. A debt collector is not allowed to contact a debtor in certain situations, including all of the following EXCEPT __________.
between 8 a.m. and 9 p.m.
15. Suppose that after conducting considerable research and investigation, the directors of a major automobile company decide to produce large and expensive sport-utility vehicles (SUVs). Three years later, when the SUVs are introduced to the public for sale, few of them are sold because of the public's interest in buying smaller, less expensive automobiles due to an economic recession and an increase in gasoline prices. Because this was an honest mistake of judgment on the part of corporate management, their judgment is shielded by the _____ rule.
business judgement
31.15. According to the _____ rule, directors and officers are not liable to the corporation or its shareholders for honest mistakes of judgment.
business judgement
17. You've just been elected to the board of directors at Mega Corporation. At your meeting on Thursday, you and the other board members have an agenda to meet to discuss the time and place of the annual shareholders' meeting, how special meetings of shareholders are called, and the required vote necessary to enact a corporate matter. The decisions the board makes about these matters are called .
bylaws
13. In a limited partnership, limited partners are not personally liable for partnership debts beyond their _____.
capital contributions
6. Sales transactions in the United States used to be guided by the principle of _______________, or "let the buyer beware."
caveat emptor
3. Josh's Banana Stand is a corporation that franchises independently owned restaurant franchises. Those franchises prepare and sell frozen bananas to the public using the Josh's Banana Stand name, and each franchise is responsible for a specific geographical area. Josh's Banana Stand is an example of a(n) __________ franchise.
chain-style
8. Delaware has a special court—the court of _____—that hears and decides business cases.
chancery
30. The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), as amended by the Veterans' Benefits Act of 2010, applies to all _______ employers in the United States and ______ operating in foreign countries.
civilian and government; U.S. employers
17. Suppose Shoko purchases an automobile from a car dealership. She borrows part of the purchase price from a lender. The lender requires Sarah to give it a security interest in the automobile to secure the loan. This is a secured transaction, with the automobile being _____ for the loan.
collateral
1. A small country in South America has several state-owned enterprises for which it wants to raise capital. It does so by selling 20-year bonds to investors in the United States. Since the bonds are sold to bondholders in the U.S., the government of the South American country is involved in commercial activity in the U.S. If the country defaults and does not pay the bondholders the interest on the bonds, the bondholders can sue the South American country in U.S. court. The exception to the Foreign Sovereign Immunities Act (FSIA) the bondholders could sue under is called the _____________________.
commercial activity
7. Under worker's compensation, an injured worker files a claim with the appropriate state government agency, often called the workers' compensation _____.
commission
22. If a person's minority status is only one factor of many factors considered in an employment decision, that employment decision made in the favor of this minority candidate will usually be _______.
considered lawful
2. Which test has a majority of states adopted to determine the merchantability of food products?
consumer expectation test
4. John Smith was the owner of a corporation in 1912 that sold meat products to consumers. However, in order to stretch the supply of his product, he also mixed in other ingredients that were both filthy and unfit for food. In that time, sales transactions were guided by the principle of caveat emptor, or "let the buyer beware," so the responsibility was on the consumer to avoid unsafe products and not on the business to produce safe products. It was in response to this kind of corporate behavior that federal and state governments in the United States enacted a variety of statutes regulating the safety of food, drugs, cosmetics, toys, vehicles and other products, which are collectively referred to as ____________________.
consumer protection laws
12.Which one of the following approaches does the Fair Debt Collection Practices Act NOT ban debt collectors from using?
contacting the debtor at her place of employment, as long as the employer has not objected
6. Miyu owns preferred stock in Major Corporation. She learns that the corporation's common stock has significantly increased in value, so she changes her preferred stock into common stock. Which kind of preferred stock did Miyu own?
convertible preferred stock
6. Your mother employs a real estate agent to sell her house. Your mother owes a duty to allow the agent to show the house to prospective purchasers during reasonable hours. Your mother's duty is called a duty to .
cooperate
3. The True Blue Corporation issues preferred stock that requires the payment of a quarterly dividend of $2.00 per share. The True Blue Corporation falls behind with six quarterly payments—$12.00 per share of preferred stock. The next quarter, the corporation makes a profit of $14.00 per share. The corporation must pay the $12.00 per share of arrearages to the preferred shareholders plus this quarter's payment of $2.00 per share. Thus, the common shareholders receive nothing. Which kind of preferred stock is the True Blue Corporation issuing?
cumulative preferred stock
13. An instrument that gives a creditor a security interest in the debtor's real property that is pledged as collateral for a loan is called a .
deed of trust
4. A(n) _____ is an instrument that gives the creditor a security interest in the debtor's property that is pledged as collateral.
deed of trust
Assume that the part manufacturer promised to ship the part to Acme's factory. What type of contract is this?
destination contract
7. According to the UPA, the _____ of a general partnership is when the "general partnership receives notice from a general partner of their express will to withdraw as a partner."
dissolution
25.14. In a(n) _____ franchise, the franchisor manufactures a product and licenses a retail dealer to distribute a product to the public.
distributorship
9. A situation that occurs when an agent acts for two or more different principals in the same transaction is called .
dual agency
1. Which of the following is NOT a duty of the agent?
duty to indemnify
2. An agent enters an authorized contract with a third party on the principal's behalf, the principal fails to perform on the contract, and the third party recovers a judgment against the agent. The agent can recover this amount from the principal because of the ___________.
duty to indemnify
9. Which of the following is NOT a duty of the agent?
duty to indemnify
3. The principal owes certain duties to an agent and independent contractor. These duties include all of the following EXCEPT __________.
duty to subrogate
13. ____________ means a computer program or an electronic or other automated source used freely to initiate an act or answer to electronic records or performances in entirety or in part, without review or action by an individual.
electronic agent
22. Suppose Henry owns a large piece of vacant beachfront property and intends to build his retirement home on the property at some future time. The city in which the property is located wants to build a new public boat dock on the property. The city can use its power of _____ to acquire the property for this public use. If it chooses to exercise such power, there has been a(n) _____ of the property, and the government must pay Henry _____.
eminent domain; taking; just compensation
17. Exceptions where employees, including at-will employees, cannot be legally fired include all of the following EXCEPT __________.
employees cannot be fired for violating private law
3. Title VII of the Civil Rights Act of 1964 applies to all EXCEPT which of the following?
employers with fewer than 15 employees
1. A person who wants to establish a business is called an ____________. According to the video, she might choose to establish a mobile business in order to_____________.
entrepreneur; have the ability to go where the customers are located
19. The Equal Pay Act prohibits disparity in pay for jobs that require any of the following EXCEPT?
equal age
19. Zoning generally does all of the following EXCEPT?
establishes aesthetic limitations for the interior of buildings
6. A life estate may be measured by the life of a third party, which is called a(n) _____.
estate pour autre vie
12.9. An apparent agency is also known as an agency by _____.
estoppel
6. The European Union has introduced a single monetary unit, the ___________. ___________________ EU countries have voted to use this currency.
euro; Many but not all
11.25. A share _____ is a situation in which one corporation acquires all the shares of another corporation, and both corporations retain their separate legal existence.
exchange
2. Workers' compensation is a(n) _____ remedy.
exclusive
1. According to the textbook, in the United States, bankruptcy law is _____, which helps individuals like Jack Johnson have their debts ______________.
exclusively federal law; discharged
47. _____ property is property that may be retained by the debtor pursuant to federal or state law that does not become part of the bankruptcy estate.
exempt
3.17. _____ agency is the most common form of agency.
express
12. All of the following are examples of unlawful LGBTQ-related sex discrimination EXCEPT __________.
failing to acknowledge an employee's sexual orientation
2. The EEOC has identified all of the following as examples of unlawful LGBTQ-associated sex discrimination EXCEPT __________.
failing to employ an applicant, failing to promote an employee, or dismissal of an employee because he she is a heterosexual.
21. Penelope Stevenson is a wealthy woman who owns many properties in the "old town" area of the town where she lives. A lifelong lover of books, she decides to give one of her properties to the local library foundation for "as long as the property is used as a library." The ownership rights of the library foundation are best described as _______________________.
fee simple defeasible (qualified fee)
2. The Restatement (Second) of Agency defines agency as a(n) _____ relationship "which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control, and consent by the other so to act."
fiduciary
26.8. Section 1(1) of the Restatement (Second) of Agency defines agency as a(n) _____ relationship "which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control."
fiduciary
36. Which of the following is the most common method of perfecting a creditor's security interest in collateral?
filing a financing statement in the appropriate government office
18. The _____ rule says that a merchant who makes an offer to buy, sell, or lease goods and assures the other party in a separate writing that the offer will be held open cannot revoke the offer for the time stated or, if no time is stated, for a reasonable time.
firm offer
3. Goods that are affixed to real estate and thus become part of it are known as _____.
fixtures
5. Your aunt is selling her house in New Hampshire to move to a condominium in Florida. The house includes a number of storage spaces, such as built-in kitchen cabinets and shelving in many of the bedrooms. This cabinetry cannot be removed from the house without causing significant damage to the walls. The cabinets and shelving in your aunt's house are best described as _______________.
fixtures
26. A _____ lien is a security interest in property that was not in the possession of the debtor when the security agreement was executed.
floating
38. A(n) _____ lien is a security interest in property that was not in the possession of the debtor when the security agreement was executed.
floating
9. A security interest in property that was not in the possession of the debtor when the security agreement was executed is called a(n) .
floating lien
10. General partners do not pay federal income taxes. Instead, the income and losses of partnership have to be reported on the individual partners' personal income tax returns. This is called _____.
flow-through taxation
20. Which of the following is a rule that provides that the income and losses of a sole proprietorship, general partnership, limited partnership, limited liability company, limited liability partnership, and S corporation are reported on the owner's personal income tax return?
flow-through taxation
16.3. An LLP is liable in all of the following situations EXCEPT __________.
for loss or injury caused to a person as a result of a partner exercising due care in the ordinary course of business of the partnership or with authority of the partnership
18. Jill and Anna have formed a limited partnership in the state of Michigan. Their business does well, and as it continues to expand, they would like to transact business in Indiana and Ohio as well. They file an application with the secretaries of state in Indiana and Ohio, and because their application conforms to those states' laws, they are issued a certificate of registration. In Indiana and Ohio, Jill and Anna's partnership would be considered a .
foreign limited partnership
20. Many international contracts contain a choice of _____ clause that designates which nation's court has jurisdiction to hear a case arising out of a contract and a choice of _____ clause that designates which nation's laws will be applied in deciding such a case.
forum; law
2. A __________________ is an estate in which the owner has a present possessory interest in the real property.
freehold estate
10. A worker in a factory reports for work and is walking toward his work station when he trips over some boxes stored on the floor. This would be a violation of the OSHA _____ duty requirement to provide safe working conditions.
general
6. The Occupational Safety and Health Act contains a _____ duty standard that imposes on an employer a duty to provide employment and a work environment that is free from recognized hazards that are causing or are likely to cause death or serious physical harm to its employees.
general
4. _____ are personally liable for the debts and obligations of the general partnership.
general partners
4. A ____________________ is a deed that protects a grantee of real property from defects in title caused by the grantor and prior owners of the property.
general warranty deed (grant deed)
5.5. A general medical practitioner in a rural area would be held to the standard of a reasonable __________________. A brain surgeon would be held to the standard of a reasonable ________________.
general practitioner; brain surgeon = WRONG General practitioner in the rural areas; brain surgeon
25. An employer discriminates against an applicant or employee because it had information that the person's family members have been stricken by a debilitating or a fatal disease that is likely to run in the individual's family. This would be an example of ________ discrimination.
genetic information
6. Bobby Newman is the manager at a new technology company. He's in the process of interviewing candidates for a new Program Manager position. He interviews Shannon for the position. After the interview is over, Shannon casually mentions that heart disease runs in her family. Bobby decides not to hire Shannon because he's concerned that she might inherit her family's heart disease and require expensive medical care and extensive time off work. Bobby Newman is engaging in which of the following types of discrimination?
genetic information discrimination
8. Lewd remarks, offensive or sexually or racially oriented jokes, name calling, slurs, intimidation, ridicule, mockery, and insults or put-downs are examples of .
harassment
1. Which of the following is NOT a type of real property?
harvested timber
10.15. In many situations, a principal and an agent do not expressly create an agency. Instead, the agency is inferred from the conduct of the parties. This type of agency is referred to as a(n) _____ agency.
implied
10. A principal owes a duty to compensate the agent for any losses the agent suffers because of the principal's conduct. This duty is called a duty to .
indemnify
5. One can employ an outsiderlong dash—that is, persons and businesses that are not employeeslong dash—to perform certain tasks on their behalf. This outsider is a(n) ________.
independent contractor
1. Principals often employee outsiderslong dash—that is, persons and businesses that are not employeeslong dash—to perform certain tasks on their behalf. These persons and businesses are called _____.
independent contractors
2. Principals often employee outsiderslong dash—that is, persons and businesses that are not employeeslong dash—to perform certain tasks on their behalf. These persons and businesses are called _____.
independent contractors
2. According to the video, one of the advantages to operating a mobile business instead of a traditional business, which parallels one of the advantages when creating a sole proprietorship, is that it ______________.
is generally less expensive to operate than a traditional business
13. Under the Uniform Partnership Act, general partners have _____ liability for torts and breaches of trust committed by a partner or an employee of the general partnership while acting on partnership business.
joint and several
1. Frank, Leslie, and Chandler form a general partnership. Frank, while on partnership business, causes a motorcycle accident that injures Jean, a pedestrian. Jean suffers $50,000 in injuries. Jean, at his option, can sue Frank, Leslie, or Chandler separately, or any two of them, or all of them due to which of the following?
joint and several liability
9. Under the Uniform Partnership Act, general partners are _____ liable for the business of the limited partnership even if the partner did not join in the commission of the act.
joint and severally
8. A new diamond deposit is discovered in eastern Alaska. Two mining companies, Diamonds Inc. and JewelMiners Corporation, each want to mine the deposit, but neither one has sufficient resources to mine the deposit alone. Diamond Inc. and JewelMiners Corporation should form a ______________ to be able to mine the diamond deposit and remain equally responsible for the mine's debts and obligations.
joint venture partnership
14. Under the Uniform Partnership Act, general partners are _____ liable for the business of the limited partnership even if the partner did not join in the commission of the act.
jointly and severally
11. A _____ is a transfer of the right to the possession and use of named goods for a set term in return for certain consideration.
lease
19. The owner who transfers the leasehold estate is called the _____.
lessor
9. In a lease contract, the _____ is the person who transfers the right of possession and use of goods under the lease.
lessor
12. The term respondeat superior literally means "_____," and is based on the legal theory of vicarious liability, which is liability _____.
let the master answer; without fault
18. Suppose Creative Battles Company owns the merchandising rights to Ninja Island and its characters. If they enter into an agreement permitting Misbehaving Toys to manufacture and distribute clothing and toys with Ninja Island characters, Misbehaving Toys is _______ Creative Battles Company's intellectual property.
licensing
13. Ryan and Carly are planning to enter into a limited partnership in which neither the general partners nor the limited partners have personal liability for the debts and obligations of the partnership. They agree that debts of the partnership are solely the responsibility of the partnership, not of the general or the limited partners. Ryan and Carly make sure to file the correct documents and pay all the necessary fees. Since all filing documents are correct and the proper fee is paid, the state will issue Ryan and Carly a certificate of .
limited liability limited partnership
1. Which of the following is NOT a major legal form in which to conduct a business?
limited sole propiertorship
5. Which of the following is NOT a major legal form in which to conduct a business?
limited sole proprietorship
7. The UCC permits parties to a sales or lease contract to establish in advance in their contract the damages that will be paid upon a breach of the contract. Such pre-established damages are called _________________.
liquidated damages
3.17. Cumulative voting gives a _____ shareholder a better opportunity to elect someone to the board of directors.
minority
29. The owner-debtor in a mortgage arrangement is known as the _____.
mortgagor
13. Under the standard for the _________________, an employerlong dash—the______________long dash—is not liable if an employee, who is motivated by jealousy, injures someone during work hours on the premises who dated the employee's boyfriend. In this standard, the employee's personal motivation is important to the standard.
motivation test; principal
16. Jon is a corporate officer at SuperMassive Corporation. One of Jon's subordinate employees, Greg, is being investigated for embezzlement. Greg is eventually charged. It's then discovered that Jon failed to make a reasonable investigation of Greg's conduct and failed to attend board meetings on a regular basis. Jon is now personally liable for his breach of the duty of care. Jon's breach is called .
negligence
7. The National Highway Traffic Safety Administration has developed Federal Motor Vehicle Safety Standards that cover all of the following EXCEPT __________.
occupant crash awareness
13. The Employee Retirement Income Security Act (ERISA) is a federal act designed to prevent fraud and other abuses associated with private pension funds. Employers are not required to establish pension plans for their employees. If they do, however, they are subject to all of the following EXCEPT __________.
offering the opportunity to continue group health insurance
17.18. A(n) _____ is an agreement entered into among members that governs the affairs and business of the LLC and the relations among members, managers, and the LLC.
operating agreement
2. Employees cannot be discharged because of their race, national origin, gender, age, disabilities, or being members of ________________ as specified in federal and state antidiscrimination laws. Thus, ________________ employee can recover damages and other remedies from an employer for detrimental employment decisions in violation of these statutes.
other protected classes; even an at-will
17. If a contract does not specify otherwise, the following terms will be incorporated EXCEPT:
payment is due from a buyer 30 days after the goods are delivered
10. The doctrine of _____ is often used by unpaid creditors who are trying to collect from shareholders a debt owed by the corporation.
piercing the corporate veil
5. A power stated in a mortgage or deed that permits foreclosure without court proceedings and sale of the property through an auction is called .
power of sale
13. A(n) _________ franchise is a type of franchise in which the franchisor provides a secret formula or other proprietary information to the franchisee. The franchisee then manufactures the product at its own location and distributes it to retailers.
processing plant
22.5. In a(n) _____ franchise, the franchisor provides a secret formula, or the like, to the franchisee. The franchisee then manufactures the product at its own location and distributes it to retail dealers.
processing plant
19. The Consumer Product Safety Commission (CPSC) has issued a requirement for infant bedside sleepers that requires them to have a minimum side height to ensure that infants cannot climb out of the sleepers. This requirement is one example of a _________________.
product safety standard
30.7. A(n) _____ is a person who organizes and starts a corporation, negotiates and enters into contracts in advance of its formation, and finds the initial investors to finance the corporation.
promoter
7. Title VII prohibits any form of gender discrimination where sexual favors are requested in order to obtain a job or be promoted. This is known as _____ sex discrimination.
quid pro quo
7. Which of the following is gender discrimination in employment that occurs where sexual favors are requested in order to obtain a job or be promoted?
quid pro quo sex discrimination
13. A(n) _____ deed is a deed in which the grantor transfers only whatever interest he or she has in the real property.
quitclaim
7. Cindy decides to gift her brother, Bob, with a small cottage that she owns on a piece of property adjacent to her main summer home. To transfer her interest in the house to Bob, Cindy signs a _______________________.
quitclaim deed
20. A corporation has 30,000 shares outstanding. A shareholders' meeting is duly called to amend the articles of incorporation, and 16,050 shares are represented at the meeting. A is present because a majority of the shares entitled to vote are represented.
quorum
19. Bluegold Corporation has a job opening for its chief financial officer (CFO) position. The employer receives applications for this position from many persons, including Marvin McCoy, who is an African American. Marvin is the best-qualified applicant for the job. Marvin receives a job rejection via e-mail, but he is accidentally copied on a long e-mail chain. In the e-mail chain, one of the Bluegold employees who interviewed Marvin writes that he doesn't want to have one of "those people" in a management position, and others in the chain agree. Because Bluegold corporation chose not to hire McCoy because of his race, the company has engaged in , in violation of Title VII.
race discrimination
2.13. An agency can be legally terminated in all EXCEPT which of the following ways?
ratification of the contract by the principal
1. Halle was just hired by a new programming company. Halle uses a wheelchair for mobility. On her first week of work, Halle has trouble getting up to her office, which is on the 30th floor, because there is a lack of wheelchair ramps. Halle is reprimanded for her tardiness. The programming company has failed to provide which of the following?
reasonable accommodation for disability
7. A written document filed by a lender or trustee with the county recorder's office that is proof that a mortgage or note secured by real property has been paid, is called a .
reconveyance
12. Greenwhite Bank makes a loan to Joseph Stokes to purchase a house and takes back a mortgage. When Joseph's loan is taken out, Greenwhite Bank fails to record the mortgage in the country recorder's office, so when Joseph tries to borrow more money on the house from a national bank, no recorded mortgage is found. Greenwhite Bank should have filed the mortgage at the country recorder's office under the state's ___________________.
recording statute
7. SuperMega Corporation issues preferred stock. This quarter, the current interest rate fell below the dividend rate of the preferred shares. SuperMega Corporation then buys back the preferred stock. SuperMega Corporation issues which kind of preferred stock?
redeemable preferred stock
5. If someone is suing a corporation, the complaint and summons is typically served on the corporation's _____.
registered agent
29. The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), as amended by the Veterans' Benefits Act of 2010, requires employers do all of the following EXCEPT __________.
rehire a returning service member into the position the individual left even if the individual cannot qualify for re-employment in that position
19. Unless otherwise agreed, the principal owes a duty to pay back the agent for expenses incurred by the agent on behalf of the principal. This duty is called a duty to .
reimburse
4. While scouting out real estate for his principal, Nick incurs travel expenses. Nick seeks to collect these sums from his principal, invoking the principal's duty to ___________.
reimburse
30. Which is a form of illegal discrimination under Title VII of the Civil Rights Act of 1964?
religion
13. If a person applies for a job with a religious organization but does not subscribe to its religious tenets, and the organization chooses not to hire that candidate based on the difference in religion, this would be considered to be _____________.
religious discrimination WRONG
16. A supervisor or coworker frequently makes offensive remarks about a person's religious beliefs or practices. This would be an example of ________.
religious harassment
25. If the right of possession returns to a third party on the expiration of a limited or contingent estate, it is called a _____.
remainder
16. Carla Stewart is the brother of Matthew Stewart, who lives in a house granted to him by their aunt Joelle. Joelle has conveyed the property to Matthew Stewart for his lifetime, and after Matthew passes away, the right to possess the property will pass to Carla. In this arrangement, Carla Stewart represents the _______________________.
remainder beneficiary
24.2. The goals of the Sarbanes-Oxley Act (SOX) of 2002 include all EXCEPT which of the following?
replace independent corporate audits with internal audits
13. The Equal Credit Opportunity Act (ECOA) is a federal statute that prohibits discrimination in the extension of credit based on all of the following EXCEPT __________.
residential ownership
11. The board of directors authorizes actions to be taken on behalf of the corporation by adopting _____ at board of directors' meetings.
resolution
6. A ___________________ is a right of possession that returns to the grantor after the expiration of a limited or contingent estate.
reversion
7. Edwardo, an owner of real property, conveys his property "to Carmen Lawson for life." The property will go to Edwardo or his estate upon Carmen's death, so his interest is known as a ________.
reversion
21. A(n) _____ consists of the passing of title of goods from a seller to a buyer for a price.
sale
20.9 Which of the following is NOT a characteristic of a corporation?
same identity as owner(s)
12. Which of the following is NOT a requirement for adverse possession?
secret and covert
18. The _________________ heads the Secretariat of the United Nations.
secretary-general
8. In a(n) _______________ transaction the lender may repossess the collateral on which the loan was given.
secured credit
12. A(n) ___________ is when a creditor extends credit to a debtor and takes a security interest in some personal property of the debtor.
secured transaction
26. Bobby Newman is the manager at a new technology company. He's in the process of interviewing candidates for a new Program Manager position. When interviewing Lauren, he finds out that she has a young daughter. Bobby decides not to hire Lauren because he doesn't want to hire women with children because he thinks children are a distraction to working mothers. Bobby Newman is engaging in which of the following types of discrimination?
sex-plus discrimination
15. Nicole is an employee at a large technology company. After each meeting, one of Nicole's managers shakes every person's hand as they leave the conference room. However, the manager pinches Nicole's bottom as she leaves. This has happened on more than one occasion, and Nicole is afraid to report the manager because he is her superior. Nicole could file a claim against her manager for which of the following?
sexual harrassment
24. Owners of a corporation who elect the board of directors and vote on fundamental changes in the corporation are called .
shareholders
5. OSHA standards establish safety requirements for safety guards on saws, set maximum exposure levels for hazardous chemicals, and regulate the location of machinery in the workplace. These are examples of _____ duty standards.
specific
9. Many states have passed _______________ that prohibit fraudulent and deceptive and unfair trade practices that damage patrons.
state consumer protection laws
16.34. Unless otherwise required by a corporation's articles of incorporation or by corporate law, voting for the election of directors is by the _____ voting method.
straight
9. A ________ is an arrangement between two or more companies whereby they agree to ally themselves and work together to accomplish a designated objective.
strategic alliance
25. The area franchisee in an area franchise arrangement is called a __________.
subfranchisor
18.28. The articles of incorporation or the bylaws of a corporation can require a greater than majority of the shares to constitute a quorum of the vote of the shareholders. This is called a _____ voting requirement.
supramajority
52. In a(n) ________ a third person promises to be liable for payment of another person's debt.
surety arrangement
1. The party to whom the leasehold estate is transferred is called the _____.
tenant
14.1. A _____ offer is an offer that an acquirer makes directly to a target corporation's shareholders in an effort to acquire the target corporation.
tender
19. Suppose a principal hires a lawyer to represent her in a lawsuit until the lawsuit is resolved. If the principal and the lawyer voluntarily agree to terminate the relationship prior to the resolution of the case by trial or settlement, the agency is _____.
terminated by an act of the parties
2. Suppose a principal employs an agent to trap alligators. If a law is passed that makes trapping alligators illegal, the agency contract _____.
terminates due to impossibility of performance
20. Suppose a principal employs an agent to trap alligators. If a law is passed that makes trapping alligators illegal, the agency contract _____.
terminates due to impossibility of performance
14. When submitting each annual and quarterly report, the CEO and chief financial officer (CFO) of a public company must file a statement. This statement certifies that the signing officer has reviewed the report; that, based on the officer's knowledge, the report does not contain any untrue statement of a material fact or omit to state a material fact that would make the statement misleading; and that the financial statement and disclosures fairly present, in all material aspects, the operation and financial condition of the company. This report is called .
the CEO and CFO certification
23. Rosie Riveter is a woman hired by Large Business Corporation as an employee. During a 36-month period, Large Business Corporation engages in pay act violations and underpays Rosie each pay period. Rosie files a claim within 30 days after the date of the last paycheck violation. Large Business Corporation is found to have violated the law during the three-year period, so Rosie can recover back pay for the two years preceding the date of the last paycheck violation. In this scenario, Rosie was allowed to file her employment discrimination claim and receive back pay under which of the following?
the Lilly Ledbetter Fair Pay Act of 2009
16. Which of the following regulates written warranties on consumer products?
the Magnuson-Moss Warranty Act
4. A model act that includes comprehensive laws that cover most aspects of commercial transactions is called .
the Uniform Commercial Code (UCC)
17. The formal documents that must be filed at the secretary of state's office of the state of organization of an LLP to form the LLP are called .
the articles of limited liability partnership
23. Persons who are elected by the shareholders that make policy decisions concerning the operation of a corporation are called .
the board of directors
If something happened to a rug in transit, who would be responsible for the loss?
the buyer
25. Chris works as a high school teacher. His home is 15 miles from the school. Chris leaves his home one morning and is driving to work when his negligence causes an automobile accident in which several pedestrians are injured. In this example, Chris is personally liable for his negligence, but the school is not liable because of which of the following?
the coming and going rule
1. Your uncle was a welder on Ford Motor Company's automobile assembly line. When he tells you stories about his time on the line, he mentions that he was employed to perform a physical task but was not given authority to enter into contracts. Your uncle's relationship with Ford Motor Company is best described as .
the employer-employee relationship
3. Suppose a professor is covered by her university's workers' compensation insurance. While teaching her class, the professor is injured when she trips over a power cord that was lying on the floor in the classroom. In this case, _____.
the professor's sole remedy is to recover worker's compensation
7. If the parties to a sales contract do not agree to the time, place, and manner of delivery of the goods, the place for delivery is _____.
the seller's place of business
10. Corporation Sierra and Corporation Tango merge, and it is agreed that Corporation Sierra will gain all the rights, privileges, powers, duties, obligations, and liabilities of Corporation Tango. The representation of this merger is S + T = S. In this scenario, Corporation Sierra is which of the following?
the surviving corporation
4. All of the following statements are true regarding imputed knowledge EXCEPT ___________.
there is no recourse for a principal if the agent fails to notify him of material information regarding the agency
3. The limited liability of shareholders means that ________.
they are liable only to the extent of their capital contributions
8. If a hospital serves primarily English-speaking patients and requires that employees speak only English when performing their duties and wherever patients can hear workers speaking, this would be an example of ________.
the English-only rule
8. According to the Uniform Commercial Code (UCC), the maximum amount of time permitted under the firm offer rule is _____.
three (3) months
17. Which of the following is not a main function or current objective of the World Trade Organization?
to balance member nation trade deficits
2. All of the following are common uses of an LLC EXCEPT?
to ensure federal taxes are paid by the corporation
8. A _________ is an agreement between two or more nations that is formally signed by an authorized representative of each nation and ratified by each nation.
treaty
14.3. In a(n) _____ agency, a contracting third party does not know of either the existence of the agency or the principal's identity.
undisclosed
24. When determining whether accommodations would impose , the EEOC and the courts consider factors such as the nature and cost of accommodation, the overall financial resources of the employer, and the employer's type of operation.
undue hardship
5. According to the video, Johnson's parents took out loans against his future earnings to purchase a house, vehicles, and travel. These purchases were made with ____________ credit. Since Johnson is the party petitioning for bankruptcy, he signed the loans as the¬____________.
unsecured and secured; debtor
17. In 1935, Congress established the federal Social Security system to provide limited retirement and death benefits to certain employees and their dependents. Today, Social Security benefits include all of the following EXCEPT __________.
vacation benefits
10. The process of _____ consists of the liquidation (sale) of general partnership assets and the distribution of the proceeds to satisfy claims against the partnership.
winding up
15. The process of _____ consists of the liquidation (sale) of general partnership assets and the distribution of the proceeds to satisfy claims against the partnership.
winding up
18. The process of _____ consists of the liquidation (sale) of limited partnership assets and the distribution of the proceeds to satisfy claims against the partnership.
winding up
19. A famous architect wants to build a modern community center building made completely of stainless steel that rises six stories and incorporates sharp angles and an irregular shape, and approaches the zoning commission about building it in Old Town, an area filled with traditionally styled buildings from the 1800s. In following the city's ______________________, which require that the traditional aesthetics of Old Town be maintained, the city can deny the architect's building permit for the proposed community center.
zoning ordinances
3. Under the FLSA, an employer cannot require non-exempt employees to work more than _____ hours per week unless they are paid _____ pay of _____ times their regular pay for each hour worked in excess of the standard work week.
40; overtime; one-and-a-half
11. In Chapter _______ bankruptcy, also called _______ bankruptcy, the debtor is permitted to keep a substantial portion of his or her assets. The debtor's non-exempt property is sold for cash, and the cash is distributed to the creditors. Any of the debtor's unpaid debts are _______.
7; liquidation; discharged
10. A current association called ASEAN Plus Three (APT) discusses regional economic, social, and political issues. What three countries are the "Plus Three"?
China, Japan, and South Korea
11. The _____ Omnibus Budget ______ Act (COBRA) is a federal law that permits employees and their beneficiaries to continue their _________________ insurance after an employee's employment has ended.
Consolidated; Reconciliation; group health
3. Federal statute requires the _____ to create and administer the National _____ Registry.
FTC; Do-Not-Call
15. In 1935, Congress established an unemployment compensation program to assist workers who are temporarily unemployed. Under the ______ Unemployment Tax ______ (FUTA) and state laws enacted to implement the program, employers are required to pay _________________.
Federal; Act; unemployment contributions (taxes)
14. _____ states have enacted security breach notification laws that require ______ to notify affected parties that their personal information has been obtained by an unauthorized party.
Fifty; private and governmental entities
26. Title II of __________ makes it illegal for an employer to discriminate against ___________________ and employees based on genetic information.
GINA; job applicants
9.5. Which of the following is an INCORRECT statement regarding corporate bylaws?
Incorporators, not the initial directors, can adopt the bylaws of the corporation.
4. Suppose Jaime, Madara, and Jose form IT Inc., a corporation, and each contributes $1,000,000 capital. The corporation borrows $1 million from State Bank. One year later, IT Inc. goes bankrupt and defaults on the $1 million loan owed to State Bank. At that time, IT Inc.'s only asset is $50,000 cash, which State Bank recovers. What are the financial implications for Jaime, Madara, and Jose have?
Jaime, Madara, and Jose each lose their initial investment of $100,000.
14. Big Oil Company owns a manufacturing plant and has borrowed $50 million from a bank and used the plant as collateral for the loan. If Big Oil Company files for Chapter 11 bankruptcy, would the bank be able to foreclose on the property?
No, an automatic stay would prevent the bank from foreclosing.
24. Big Oil Company owns a manufacturing plant and has borrowed $50 million from a bank and used the plant as collateral for the loan. If Big Oil Company files for Chapter 11 bankruptcy, would the bank be able to foreclose on the property?
No, an automatic stay would prevent the bank from foreclosing.
16. Rani decides to sell her house and hires Mark, a real estate broker, to list and sell the house for a price of $1 million. They agree that Mark will disclose the existence of the agency and the identity of the principal to interested third parties. Mark shows the house to Heather, a prospective buyer, and discloses to Heather that he is acting as an agent for Rani. Heather agrees to buy the house, and Mark signs the contract on behalf of Rani. Which of the following statements is true?
Rani, the principal, is liable on the contract, but Mark, the agent, is not.
1. Which of the following is an INCORRECT statement regarding corporations?
Today, most corporations are formed pursuant to general corporation laws of the federal government.
26. Zora, Heathcliff, Manuel, and Mohammad own a large commercial building as joint tenants. If Heathcliff executes a will that leaves all of his property to his alma mater university, who owns the property when Heathcliff dies?
Zora, Manuel, and Mohammad each own a one-third interest in the building.
14. A(n) _____ statute prohibits deficiency judgments regarding certain types of mortgages, such as those on _____ property.
anti-deficiency; residential
25. A(n) _____ lien is a _____ lien given to workers on personal property to which the workers furnish services or materials in the ordinary course of business.
artisan's; statutory
15. The Pizza Hut Corporation franchises independently owned restaurant franchises to make and sell pizzas to the public under the Pizza Hut name. This is an example of a(n) _____ franchise.
chain-style
14. If an employee who harasses another employee is a(n) ______________, then the employer is liable if it was negligent in __________________ the working situation. In this situation, an employer may not invoke a(n) ___________________.
coworker; controlling; affirmative defense
4. If an employer has a rule that all applicants for an executive position must be at least 5 feet 8 inches tall, this would be an example of ________.
disparate-impact sex discrimination
17.29. Sometimes principals request that agents run errands or conduct other acts on their behalf while the agent or employee is on personal business. In this case, the agent is on a _____, and most jurisdictions hold _____ liable if the agent injures someone while on such a mission.
dual-purpose mission; both the principal and the agent
16.2. Principals often employ outsiderslong dash—that is, persons and businesses that are not _____long dash—to perform certain tasks on their behalf. These persons and businesses are called _____.
employees; independent contractors
24. The shipping term _____ requires the seller to bear the expense and risk of loss until the goods are unloaded from the ship at its port of destination.
ex-ship (from the carrying vessel)
16. A tenancy at will may be created _____, but is more likely to be created _____.
expressly; by implication
20. Suppose that Technology Incorporated wants to acquire Digital Corporation. Technology Incorporated makes a tender offer directly to the shareholders of Digital Corporation to acquire their shares of Digital Corporation. This is a _____ tender offer in which Technology Incorporated is the tender _____ and Digital Corporation is the _____ corporation.
hostile; offeror; target
10. In the case of an ordinary lease, if the lessor is a merchant, the risk of loss passes to the lessee on the _____ of the goods.
lessee's receipt
27. In a landlord-tenant relationship, the tenant receives a _____ estate in the real property.
non-freehold
6.6. After a share exchange, one corporation (the _____ corporation) owns all the shares of the other corporation (the _____ corporation).
parent; subsidiary
27.22. Jordan is a lawyer who has her own law firm and specializes in real estate law. Dylan, a real estate developer, hires Jordan to represent him in the purchase of land. Dylan is the_______, and Jordan is the _________________.
principal; independent contractor
20. Zoning laws act _____; that is, uses and buildings that already exist in the zoned area are permitted to continue even though they do not fit within new zoning ordinances. Such uses are called _____ uses.
prospectively; nonconforming
41. Security interests may be taken in ________.
real, personal, intangible, or other property
53. Power of _____ is a power stated in a mortgage or deed of trust that permits _____ without court proceedings and sale of the property through auction.
sale; foreclosure
46. A creditor who has the only _____ interest in the debtor's collateral has priority over _____ interests.
secured; unsecured
29. A right to _____ letter is issued by the EEOC if it _____ to bring an action against an employer.
sue; chooses not
22. Personal property includes _____ property such as equipment, vehicles, furniture, and jewelry, as well as _____ property such as securities, patents, trademarks, and copyrights.
tangible; intangible
27.23. _____ are the most dominant form of business organization in the United States, generating more than 85 percent of the country's gross business receipts.
Corporations
10.19. Which of the following is an INCORRECT statement regarding the corporation as a legal person?
Corporations are not separate legal persons.
16. Which of the following is NOT an accurate statement about a tenancy for years?
A tenancy for years must always be contracted for at least one year
15. ___________________ is a form of co-ownership in which the interest of a surviving tenant in common passes to the deceased tenant's estate and not to the co-tenants.
A tenancy in common
31. _________________ is a policy that provides that certain ____________ will be given to minority or other protected-class applicants when an employer makes an employment decision.
Affirmative action; job preferences
16. Which African organization is primarily a political organization with goals of eliminating poverty, safeguarding sovereignty and territorial integrity, advancing respect for human rights, promoting justice and the rule of law, coordinating economic development, defending the interests of Africa, and promoting international cooperation of African countries at the United Nations?
African Union
12.15. Which of the following is an INCORRECT statement regarding manager-managed LLCs?
All actions concerning the LLC can be delegated to managers.
24. Which of the following is an INCORRECT statement regarding an LLLP?
An LLLP requires at least two general partners and at least two limited partners.
1.32. Which of the following is an INCORRECT statement regarding shareholders' meetings?
Annual shareholders' meetings must be held at the times fixed in the articles of organization.
3. Cambodia is a member nation of a regional association in southeast Asia along with Brunei, Indonesia, and Malaysia, among others. This association cooperates in promoting economic, political, and cultural issues and was founded in 1967. Cambodia is a member nation of the _______________________.
Association of Southeast Asian Nations (ASEAN)
23. In 1967, the _____________________________ was created. This is a cooperative regional association of diverse nations that cooperate in promoting economic, political, and ___________ issues.
Association of Southeast Asian Nations (ASEAN); cultural
12. Which of the following is NOT part of the complainant's burden of proof in a disparate-treatment discrimination case?
he or she suffered punitive damages as a proximate result of the discrimination
19.16. Marty Levine sees a house for sale and thinks his friend Linda Maxwell would want to buy it. Marty enters into a contract to purchase the house from the seller and signs the contract "Marty Levine, agent for Linda Maxwell." Which of the following is NOT true?
Because Marty is now Linda Maxwell's agent, she is bound to the contract.
5. In the UK referendum vote, ___________________ voted to leave the EU. The UK, as a combined entity, will be leaving the EU. If ___________________ choose(s) to be members of the EU, they may have to apply for admittance.
Britain and Wales; Scotland or Northern Ireland
17. Jack and Ericka enter into a partnership for a new business. In their general partnership agreement, they agree in writing that their partnership will last for six years. At that time, they will reevaluate the partnership. Jack and Ericka's partnership is an example of which of the following?
a partnership for a term
21. The ___________________ has authority to supervise all participants in the consumer finance and mortgage area, including depository institutions, such as commercial and savings banks, and nondepository parties, such as insurance companies, mortgage brokers, credit-counseling firms, debt collectors, and debt buyers.
Consumer Financial Protection Bureau (CFPB)
13. All of the following are correct about Chapter 11 bankruptcy EXCEPT:
Chapter 11 bankruptcy is rarely in the best interests of debtors or their creditors when the business is no longer able to pay its debts.
2. The majority of which of the following types of bankruptcy are filed by corporations and other businesses that want to reorganize their capital structure by receiving discharge of a portion of their debts, obtaining relief from burdensome contracts, and emerge from bankruptcy as going concerns?
Chapter 11—Reorganization
18. A rehabilitation form of bankruptcy that permits bankruptcy courts to supervise the debtor's plan for the payment of unpaid debts in installments over the plan period is which of the following?
Chapter 13—Adjustment of Debts of an Individual with Regular Income
27. Which of the following is an INCORRECT statement regarding color discrimination?
Color discrimination cases are brought more frequently than other forms of Title VII discrimination.
15. The Uniform _____ Code is a model act that includes comprehensive laws that cover most aspects of commercial transactions.
Commercial
16. The ___________________ is a federal statute that required the Federal Trade Commission (FTC) to create and administer the national do-not-call registry.
Do-Not-Call Implementation Act
11. _______________ generally refers to _______________ of gender, which could correlate with an assigned sex at birth or can differ from it.
Gender identity; an individual's personal experience
7. The __________________ is the legislative body of the United Nations that is composed of all UN member nations.
General Assembly
12. The commonly-used shipping term _____ requires the seller to arrange to ship the goods and put the goods in the carrier's possession. The buyer bears the shipping expense and risk of loss while the goods are in transit.
F.O.B. point of shipment
9. Which of the following federal administrative agencies has the authority to bring, pursuant to the Federal Trade Commission Act, an administrative proceeding to attack a deceptive or an unfair business practice?
FTC
17. The ___________________ is a federal administrative agency empowered to enforce the Federal Trade Commission Act and other federal consumer protection statutes.
Federal Trade Commission (FTC)
20. Which of the following statements is NOT true regarding state consumer protection laws?
Few states have enacted consumer protection laws.
24. Which of the following is an INCORRECT statement regarding food regulation?
Food must be entirely pure to be distributed or sold.
5. The United Nations is governed by the _____.
General Assembly, the Security Council, and the Secretariat
18. Suppose Qixia hires Harold, a lawyer and an independent contractor, to represent her in a court case. While driving to the courthouse to represent Qixia at trial, Harold negligently causes an automobile accident in which Mildred is severely injured. Which of the following is an accurate statement regarding the liability of Qixia and/or Harold for Mildred's injuries?
Harold is liable for Mildred's injuries, but Qixia is not liable.
5. Which of the following is an INCORRECT statement regarding the regulation of medicinal devices?
In 1996, the U.S. Congress enacted the Medicinal Device Amendment to the FDCA.
31. Texas Car Sales, Inc., a new car dealership, finances all its inventory of new automobiles at Horns Bank. Horns Bank takes a security interest in the dealership's inventory of cars and perfects this security interest. Tyrone, a buyer in the ordinary course of business, purchases a car from the dealership for cash. If the dealership defaults on its payments to the bank, ________.
Horns Bank cannot recover the car Tyrone bought
22. Suppose American Hover Car Company, a U.S. corporation incorporated under the laws of Delaware, forms a subsidiary corporation called Experimental Vehicle Corporation, an Indian corporation formed under the laws of India, to develop and test hover cars in India. American Hover Car Company is the parent corporation, and Experimental Vehicle Corporation is the subsidiary corporation. If an employee of Experimental Vehicle Corporation negligently injures an Indian citizen while on a test drive, what is the liability?
Only Experimental Vehicle Corporation is liable.
3. Suppose that an employer has a rule that all applicants for an executive position must be at least 5 feet 8 inches tall. Which of the following is a correct statement regarding the legality of this requirement?
It is disparate-impact sex discrimination, in violation of Title VII of the Civil Rights Act of 1964.
3. Suppose that Jasmin, Shou-Yi, and Vanessa form an LLC, and each contributes $25,000 in capital. The LLC operates for a period of time, during which it borrows money from banks and purchases goods on credit from suppliers. After some time, the LLC experiences financial difficulty and goes out of business. If the LLC fails with $600,000 in debts, which of the following is a correct statement regarding the personal liability of Jasmin?
Jasmin will lose her capital contribution of $25,000, but she is not personally liable for the rest of the unpaid debts of the LLC.
9. Which of the following is a correct statement regarding a limited liability partnership (LLP)?
LLPs are creatures of state law.
2. The ________ is a federal statute that provides that each discriminatory pay decision restarts the statutory ________ clock.
Lilly Ledbetter Fair Pay Act of 2009; 180-day
21. _____ are not personally liable for the debts and obligations of the limited partnership.
Limited partners
16. Which of the following is NOT true about the Do-Not-Call Registry?
Only wire-connected phones can be registered.
10. The _________________ is an amendment to the Food, Drug, and Cosmetic Act (FDCA) that gives the Food and Drug Administration (FDA) authority to regulate medicinal devices and equipment (e.g., heart pacemakers, surgical equipment).
Medicinal Device Amendment
14. The trade organization from South America, Central America, and/or the Caribbean which brings together the greatest number of people is _____.
Mercosur
5. Bank of America subsidiaries __________ were also implicated in this case for _________.
Merrill Lynch and Countrywide; financial fraud
2. Organization of the Petroleum Exporting Countries (OPEC) consists of oil-producing and exporting countries. The member nations include all of the following EXCEPT __________.
Mexico
15. Which of the following is an INCORRECT statement regarding the doctrine of sovereign immunity?
Most Western nations have adopted the doctrine of absolute immunity.
4. Which of the following is an INCORRECT statement regarding the regulation of cosmetics?
Ordinary household soap is a cosmetic subject to FDA regulation.
Assume the conversation between Adiyta and the sales rep continues as follows: Adiyta: So how much for the XJD500 ? Sales Rep: $12,000 but that comes with 24 months of free service. Adiyta: That's a lot of money. I'll have to think about it. Sales rep: Take your time, I'll hold one of these beauties for you until next week. Would there be any legal consequences related to Adiyta, if the sales rep sells all of the XJD500s before Adiyta comes back to buy the drone?
No
11. Oil is a natural resource that is highly valuable and can be used as leverage by companies and countries that produce and export large amounts of crude oil. In the 1960s, an organization was formed to ensure that oil companies could not unilaterally cut prices. The organization comprising many of the oil-producing and -exporting countries of the world is called _____________________________.
Organization of the Petroleum Exporting Countries (OPEC)
12. The ____________________________ consists of oil-producing and exporting countries from Africa, Asia, the Middle East, and______________.
Organization of the Petroleum Exporting Countries (OPEC); South America
15. Prior to 1992, your business, based in the northern United States, could not do business with Canadian suppliers because imports were heavily taxed, making the costs an unreasonable burden. After 1992, a new trade agreement reduced tariffs to the point that you were able to start dealing with Canadian suppliers. The trade agreement enacted in 1992 was the ________________________________.
North American Free Trade Agreement (NAFTA)
5. Standards that establish safety requirements for safety guards on saws, set maximum exposure levels for hazardous chemicals, and regulate the location of machinery in the workplace are known as _____ specific duty standards.
OHSA
19. In 1970, the United States Congress enacted the _____ to promote safety in the workplace.
OSHA
11. Which of the following is an INCORRECT statement regarding the Occupational Safety and Health Act?
OSHA has not adopted regulations to enforce the safety standards established by the act.
8. Which of the following is an INCORRECT statement regarding the North American Free Trade Agreement?
On August 12, 1972, the North American Free Trade Agreement (NAFTA) was signed by the leaders of the United States, Canada, and Mexico.
3. The owner-debtor in a mortgage arrangement is known as the _____.
mortgagor
11. Which of the following is NOT true about adverse possession?
Property owned by federal, state, and local governments can be subject to adverse possession.
14. _____ is a seller's commendation of goods that does not create an express warranty.
Puffing
9. Penelope Greenwald is a member of a staff that administers the day-to-day operations of the United Nations. She works primarily in New York, and ultimately reports to the secretary-general. Penelope is a member of the __________________.
Secretariat
4. As referenced in the video, a commercial lease often requires a personal guarantee by an entrepreneur, making a mobile business that does not require a long-term lease attractive to someone starting a new business. In which form of business is an individual owner personally liable for business contracts?
Sole proprietorship
5. Which of the following is an INCORRECT statement regarding formation of a general partnership?
Stock of the partnership, representing ownership, must be publicly traded on a well-known stock exchange (for example, NASDAQ).
22. Which of the following statements about strategic alliances is NOT accurate?
Strategic alliances offer more legal protections than mergers, joint ventures, or franchising when they are dismantled.
8. Charity has evidence that the child restraint system in her vehicle, which was designed, manufactured, and sold by Generic Cars Company, in imminently hazardous and violates Federal Motor Vehicle Safety Standards under the NHSTA. What can she, as an individual, do?
Sue for an injunction based on Generic Cars Company violating NHTSA rules.
32. The _____ Clause of the United States Constitution allows the government to take property for "public use."
Takings
21. When the government needs property to build a new school or a firehouse, or to construct a road or freeway, it may need to acquire the necessary property from private landowners. Which provision of the United States Constitution provides the government with this power?
Takings Clause
21. Brightscreen Corporation, a technology company, is an employer with 800 employees. A group of Hindu employees requests one day off to observe Diwali, a religious holiday. Brightscreen agrees—with so many employees, it would likely not cause an undue hardship on the employer to get other workers to cover for one day. Brightscreen Corporation has made which of the following?
a reasonable accommodation for religion
13. Property owned by federal, state, and local governments is not subject to ______________________.
adverse possession
9. Which of the following is NOT true about adverse possession?
The possessor must occupy the property with the express or implied permission of the owner.
21. The board members of Bluegold corporation are meeting to discuss the possibility of the voluntary dissolution of the corporation. The idea for voluntary dissolution is put forward by a member of the board. The idea is seconded by another board member, and then put to the vote of the entire board of directors. The idea passes, and Bluegold corporation is voluntarily dissolved. The vote that authorized the dissolution is called .
a resolution
18. Elite Hotel refusing to allow Sandra to stay at the hotel on the basis that she has limited mental capacity and they do not think she can care for herself is violation of __________.
Title III of the Americans with Disabilities Act of 1990
8. If Tomas is a guarantor for Luciano's debt, which of the following accurately depicts Tomas's liability?
Tomas is liable for Luciano's debt if Luciano defaults on the debt and the creditor has attempted unsuccessfully to collect the debt.
44. If Tomas is an accommodation party for Luciano's debt, which of the following accurately depicts Tomas's liability?
Tomas is liable for Luciano's debt when it is due.
4. The state of Arizona attempts to enter into a treaty with the country of Canada that would reduce trade barriers between Arizona and Canada. This treaty would be a violation of the _______________, which gives the federal government the power to enter into treaties with foreign nations, but not the states.
Treaty Clause
14. Elissa, Lindsey, Amy, Carrie, and Alison form Cooper Square, LLC. Alison contributes $50,000 capital, and the other four members each contribute $10,000. The members are deciding whether to stop selling one of their product lines. Elissa, Amy, and Carrie all vote in favor. Lindsey and Alison are opposed. The product line is discontinued because three members voted in favor and two were opposed. It does not matter that the two members who voted no contributed $60,000 in capital collectively versus the $30,000 in capital contributed by the three members who voted yes. Because each member has equal rights in the management of the business of the LLC, Cooper Square is an example of which of the following?
a member-managed LLC
4.4. Most corporations have a minimum of all of the following officers EXCEPT _________.
a cabinet
19. To meet this duty, the directors and officers must discharge their duties (1) in good faith, (2) with the care that an ordinary prudent person in a like position would use under similar circumstances, and (3) in a manner they reasonably believe to be in the best interests of the corporation. These requirements pertain to which duty of directors and officers?
a duty of care
6. You decide to file for chapter 7 bankruptcy. You, the debtor, submit a petition that states that you have debts and includes the following schedules: a list of secured and unsecured creditors, with addresses; a list of all property owned; a statement of your financial affairs; a statement of your monthly income; current income and expenses; evidence of payments received from employers within 60 days prior to the filing of the petition; and a copy of the your federal income tax return for the most recent year ending prior to the filing of the petition. You submitted which of the following?
a voluntary petition
3. Under this test, if an agent commits an intentional tort within during working hours or on the principal's premises, the principal is liable for any injuries caused by the agent's intentional torts. Which test is this?
a work-related test
9. _____ shareholders' meetings are held to elect directors, choose an independent auditor, and take other actions.
annual
2. Harry is a new partner who's just been admitted to a general partnership. Harry was admitted as a new general partner by investing a $200,000 capital contribution. When he's admitted to the company, the company owes $1 million in debts. If the general partnership goes bankrupt and out of business still owing both debts, Harry is liable for the existing debts and obligations of the partnership only to the extent of his capital contribution ($200,000). What are these existing debts and obligations ($1 million in the scenario) called?
antecedent debts
16. For an injury to be compensable under workers' compensation, the claimant must prove that he or she was harmed by _____.
an employment-related injury
16. Agency that arises when a principal creates the appearance of an agency that in actuality does not exist is called .
apparent agency
32.16. After conducting considerable research and investigation, the directors of a major automobile company decide to produce large and expensive sport-utility vehicles (SUVs). Three years later, when the SUVs are introduced to the public for sale, few of them are sold because of the public's interest in buying smaller, less expensive automobiles due to an economic recession and an increase in gasoline prices. In this case, the directors are protected by the _____ rule.
business judgement
3. If a contract indicates that the agency agreement terminates on July 27, 2020, it is terminated ________.
by an act of the parties
3. Consider the situation in the video involving a stolen bicycle. In a case in which a buyer purchases goods from a thief who has stolen them, the real owner can _____.
reclaim the goods from the purchaser
19. In a limited partnership, limited partners are not personally liable for partnership debts beyond their _____.
capital contributions
19.11. In a(n) _____ franchise, the franchisor licenses the franchisee to make and sell its products or services to the public from a retail outlet serving an exclusive geographical territory.
chain-style
25. The _______________________ is a clause in an international contract that designates which nation's court has jurisdiction to hear a case arising out of the contract.
choice of forum clause (forum-selection clause)
13.6. Under the _____ rule, a principal is generally _____ for injuries caused by its agents and employees while they are on their way to or from work.
coming and going; not liable
2. UCC articles establish uniform rules for each of the particular facets of commerce listed below EXCEPT __________.
commercial transaction
24. Workers' _____ is paid to workers and their families when workers are injured in connection with their jobs.
compensation
14. Lucy and Lynne were partners in partnership at will. Lucy withdrew, and Lynne finished the work of winding up the partnership. To what is Lynne entitled?
compensation for winding up the partnership
14. Two or more persons may own a piece of real property. This is called _____ ownership.
concurrent
5. Two or more persons may own a piece of real property. This is called _____ ownership.
concurrent
23. Federal and state governments have enacted a variety of statutes that regulate the safety of food, drug, cosmetics, toys, vehicles, and other products. These laws are collectively referred to as _____ laws.
consumer protection
20. In college, you and fifteen of your friends pool your resources and buy a house. You create a corporation, then each friend buys shares in the corporation, and then you all sign lease agreements for different rooms in the house. You can't take out a loan based on the room that you own, but the corporation can borrow money on a blanket mortgage, in which case you would be jointly and severally liable on the loan. This type of co-ownership is best described as a ____________________.
cooperative
3. Which of the following is the most common form of agency?
express
5. When an instrument gives a creditor security interest in a debtor's real property that is pledged as collateral for a loan, this is known as a ________.
deed of trust
50. A(n) _____ is an instrument that gives the creditor a security interest in the debtor's property that is pledged as collateral.
deed of trust
29. In a tenancy at sufferance, most states require an owner to go through certain legal proceedings, called an eviction proceeding or unlawful _____ action, to evict a holdover tenant.
detainer
7. Which of the following is NOT included in national origin discrimination?
discrimination against a person's political affiliation
20. SalesCorp Inc. has an opening for an executive position. SalesCorp Inc.'s job posting for the position includes a rule that all applicants must be at least 5 feet 10 inches tall. This looks like a neutral rule, because it applies to both males and females. However, height is unrelated to the performance of an executive position and eliminates many more females than males from being hired or promoted to an executive position. As a result, SalesCorp Inc.'s rule is an example of sex discrimination, in violation of Title VII.
disparate-impact
19. The Chapter 7 means test is a calculation that establishes a bright-line test to determine whether the debtor has sufficient _____ income to pay pre-petition debts out of post-petition income.
disposable
9. According to the UPA, the _____ of a general partnership is when the "general partnership receives notice from a general partner of their express will to withdraw as a partner."
dissolution
24. Danez, Meghan, and Emily are all members of Poets Speak Out LLC. Each owns a one-third interest in the LLC, and they agree to divide the distributions equally in one-third portions. Danez then sells his one-third interest to Katherine, who is not a member of the LLC. The LLC makes $60,000 in profits. Katherine is now entitled to receive one-third of the distributions ($20,000). In this scenario, Danez has transferred his to Katherine.
distributional interest
16. Ford Motor Company manufactures automobiles and franchises independently owned automobile dealers to sell them to the public. This is an example of a(n) _____ franchise.
distributorship
22. An ____________________ is an easement that is created when an owner subdivides a piece of property that has a well, path, or road on it that serves the entire parcel, and the purchasers of the subdivided pieces of property have an implied easement to use the well, path, or road.
easement by implication
12. A fast-food restaurant called Paunchy Burger runs an ad campaign in which one of the actresses says that the chain's Mega-Burger, which contains over 2,000 calories, is a "cornerstone of a healthy, balanced diet." The FTC, finding this advertising in violation of Section 5 of the FTC Act, reaches an agreement with Paunchy Burger such that the chain stops running the ads. The Mega-Burger ad is an example of _______________________.
false and deceptive advertising
20. Mary owns a _____ in a piece of real property. This means that there are no limitations on her ownership rights. Mary owns this property while she is alive, with no conditions on her ownership rights, and she can transfer the property by will to a named beneficiary or beneficiaries when she dies.
fee simple absolute
22. Suppose Luciana wants to buy lumber to build a small deck in her backyard. She goes to Joe's Lumber Yard to purchase the lumber and describes to Joe, the owner of the lumber yard, the size of the deck she intends to build. Luciana also tells Joe that she is relying on him to select the right lumber for the project. Joe selects the lumber and states that the lumber will serve Luciana 's needs. Luciana buys the lumber and builds the deck. The deck collapses because the lumber was not strong enough to support it. Luciana can sue Joe for breach of which of the following implied warranties?
fitness for a particular purpose
3. According to the video, what are the terms of a typical commercial lease that may be disadvantageous to an entrepreneur?
five to ten years in duration with a personal guarantee of payment
5. A _____ lien is a security interest in property that was not in the possession of the debtor when the security agreement was executed.
floating
8. For a warranty to qualify as a(n) _____ warranty, the warrantor must guarantee that a defective product will be repaired or replaced free during the warranty period.
full
5. Mary files a gender discrimination claim with the EEOC that states her employer has engaged in sex discrimination in violation of Title VII. The employer does not promote Mary when she qualifies for a promotion because she filed this claim. This is _______.
illegal retaliation
4. Suppose a homeowner employs a real estate broker to sell his house. A water pipe breaks and begins to leak water into the house. If the homeowner cannot be contacted, the real estate broker has _____ authority to hire a plumber to repair the pipe to stop the water leak.
implied
23. Under the ADA, an employer is not obligated to provide an accommodation that would _____.
impose an undue hardship on the employer
10. Sonia, who owns a piece of vacant real estate, hires Matthew, a licensed real estate broker, to list the property for sale. Leonard, an adjacent property owner to Sonia's property, tells Matthew that a chemical plant has polluted his property and probably Sonia's property. Sonia does not know this fact, and Matthew does not tell Sonia this information. Sonia sells the property to Macy. It is later discovered that the property Macy bought from Sonia is polluted. In this Example, the information that Matthew was told about the possible pollution of the property is imputed to Sonia. Sonia will be held liable to Macy because of the legal rule of ___________
imputed knowledge
2. Sonia, who owns a piece of vacant real estate, hires Matthew, a licensed real estate broker, to list the property for sale. Leonard, an adjacent property owner to Sonia's property, tells Matthew that a chemical plant has polluted his property and probably Sonia's property. Sonia does not know this fact, and Matthew does not tell Sonia this information. Sonia sells the property to Macy. It is later discovered that the property Macy bought from Sonia is polluted. In this Example, the information that Matthew was told about the possible pollution of the property is imputed to Sonia. Sonia will be held liable to Macy because of the legal rule of ___________
imputed knowledge
7. Information that is learned by an agent that is attributed to the principal is called .
imputed knowledge
23.18. A party who agrees to act on behalf of another is called a(n) _____.
incidental beneficiary WRONG agent
2. In the case of United States v. LaGrou Distribution Systems, Incorporated, the court had to determine if LaGrou ________, in violation of federal food safety laws.
knowingly engaged in the improper storage of meat, poultry, and other food products
11. You own a business called Lincoln's Penny Press and grant licenses to franchisees to use your trademarks, service marks, trade names, and other intellectual property in the distribution of Lincoln's Penny Press items. What role does your business play in the licensing arrangement?
licensor
24. A _________________ is an interest in real property for a person's lifetime; on that person's death, the interest is transferred to another party.
life estate
4. An owner of real estate who makes a conveyance of real property "to Anna for her life" creates a _____.
life estate
12. Fred and Ginger are the limited partners of a limited partnership called Premium Developers, Ltd. Each invests $20,000 in the limited partnership. Premium Developers, Ltd. borrows $1 million from American Bank. After two years, the limited partnership has spent all of its capital, has no assets, and goes bankrupt, still owing American Bank $1 million of unpaid debt. In this case, Fred and Ginger each lose their $20,000 capital investment but are not personally liable for the $1 million debt owed by the limited partnership to American Bank. Fred and Ginger have which of the following?
limited liability
2. In an LLP, there does not have to be a general partner who is personally liable for the debts and obligations of the partnership. Instead, all partners are limited partners who stand to lose only their capital contribution if the partnership fails. None of the partners is personally liable for the debts and obligations of the partnership beyond his or her capital contribution. This means that all partners in an LLP have .
limited liability
16. A special type of limited partnership that has both general partners and limited partners, where both the general and limited partners have limited liability and are not personally liable for the debts of the partnership is called a partnership.
limited liability limited
15. State statutes that regulate the formation, operation, and dissolution of a special form of partnership in which all partners are limited partners, and there are no general partners, are called .
limited liability partnership codes
6.2. An LLC can be either a(n) _____-managed LLC or a(n) _____-managed LLC.
manager; member
40. If two or more secured parties claim an interest in the same collateral but only one has perfected his or her security interest, the _____ interest has priority.
perfected
21. In order to perfect a security interest, a secured creditor files a document with the appropriate government office that constructively notifies the world of his or her security interest in personal property.
perfection by filing a financing statement
3. According to the video, Johnson had a professional hockey contract for $28 million. The nature of his __________ for bankruptcy was not discussed in the video. It is not clear whether creditors forced Johnson into a(n) ________________ bankruptcy or whether Johnson filed _________ for bankruptcy.
petition; involuntary; voluntarily
26. Sex-_____ discrimination occurs when an employer does not discriminate against a class as a whole but treats a subset of the class differently.
plus
14. If Kiki uses a road over someone else's property for the period of time required by the adverse possession statue, this is known as an easement by ________.
prescription
20. A seller's claim that a particular oven is "the easiest oven to clean" is a _____ and ____ create an express warranty.
statement of opinion; does not
18. You decide to purchase a parcel of land near Atwood, Michigan. When the purchase is completed and you own the land, you intend to begin construction of a new home for you and your family. Your rights to use, enjoy, and develop the land you own are called ____________________.
surface rights
4. Joint tenancy is a form of co-ownership that includes the right of _____.
survivorship
1. Suppose a principal hires a lawyer to represent her in a lawsuit until the lawsuit is resolved. If the principal and the lawyer voluntarily agree to terminate the relationship prior to the resolution of the case by trial or settlement, the agency is _____.
terminated by an act of the parties
23. is a situation where an agency terminates because of the occurrence of any of the following circumstances: 1. The death of either the principal or the agent 2. The insanity of either the principal or the agent 3. The bankruptcy of the principal 4. The outbreak of a war between the principal's country and the agent's country
termination of an agency by operation of law
25. The owner of a landscaping company purchases a large tractor from Tractor Supply Company, a retail dealer, on credit and gives the secured creditor an interest in the collateral. Which of the following best describes Tractor Supply Company in this scenario?
the secured party
11. Steve, who is 56 years old, applies for an open position as superintendent at Crystal Springs Golf Course. Steve meets the job requirements of having a college degree and prior experience as a superintendent and is otherwise qualified for the job. However, the employer refuses to hire Steve because of his age and hires someone who is 30 for the job. In this scenario, Crystal Springs Golf Course has violated which of the following?
the Age Discrimination in Employment Act
2. Steve, who is 56 years old, applies for an open position as superintendent at Crystal Springs Golf Course. Steve meets the job requirements of having a college degree and prior experience as a superintendent and is otherwise qualified for the job. However, the employer refuses to hire Steve because of his age and hires someone who is 30 for the job. In this scenario, Crystal Springs Golf Course has violated which of the following?
the Age Discrimination in Employment Act
5. Which of the following imposes obligations on employers and providers of public transportation, telecommunications, and public accommodations to accommodate physically challenged individuals?
the Americans with Disabilities Act
4. In most states, the formation, operation, and termination of limited partnerships are regulated by .
the Revised Uniform Limited Partnership Act (RULPA)
15. A federal statute that establishes rules to improve corporate governance, prevent fraud, and add transparency to corporate operations is called .
the Sarbanes-Oxley Act (SOX) of 2002
12. A seller orally agrees to sell her couch to a buyer for $650. When the buyer tenders the purchase price, the seller asserts the Statute of Frauds and refuses to sell the couch to him. The seller is correct. The contract must be in writing to be enforceable because the contract price for the couch exceeds $499.99. Under which of the following rules is the seller correct?
the UCC Statute of Frauds
6. Johanna and Tom want to start a limited liability company in Michigan. They put together the necessary paperwork, and they file it with the secretary of state of Michigan. The existence of their LLC begins when their paperwork is filed. The filing of this paperwork by the secretary of state is conclusive proof that the organizers have satisfied all the conditions necessary to create the LLC. The paperwork that Johanna and Tom file is called .
the articles of organization
21. Earl has worked as a general partner at Management Ltd, a limited corporation, for 50 years. Earl decides that he would like to retire and spend more time with his husband and children. Earl's retirement is considered a withdrawal, which results in .
the dissolution of a limited partnership
10. Which of the following is a bankruptcy rule that applies to a debtor who has a median family income that exceeds the state's median family income for families the same size as the debtor's family?
the means test
8. The Dottens, a family of four, is planning to file for Chapter 7 bankruptcy relief, but they're not sure if they qualify. In the state where the Dottens live, the state's median income for a family of four is $75,000. The Dottens have a median income of $60,000. The Dottens qualify for Chapter 7 bankruptcy belief under which of the following?
the median income test
4. Corporation Delta and Corporation Echo merge, and it is agreed that Corporation Delta will absorb Corporation Echo. The representation of this merger is D + E = D. In this scenario, Corporation Echo is which of the following?
the merged corporation
2. Which of the following is an INCORRECT statement regarding fixtures?
throw rugs are fixtures
22. Which of the following is NOT a category of employees exempted by the FLSA from federal minimum wage and overtime pay requirements?
tipped employees
5. In the video, the reporter says that one challenge facing a mobile business is keeping its customers informed of where they can find the business. A sole proprietorship that calls itself "Coffee on 34th Street" is making use of its ______________ to let customers know where it is located.
trade show
17. A sole proprietor has _____ personal liability.
unlimited
22. Charlie is a general partner of a limited partnership. As a part of his duties, Charlie is responsible for the debts and obligations of the limited partnership. This also extends to debts that cannot be satisfied with the existing capital of the limited partnership. Charlie has which of the following?
unlimited personal liability
2. Custom Management Corporation employs Elaina as its marketing manager. Elaina is driving her automobile to attend a meeting with a client on behalf of Custom Management. On her way to the meeting, Elaina is texting and not paying attention and is involved in an automobile accident. Several people are seriously injured because of Elaina's negligence. In this example, Elaina is personally liable to the injured parties. In addition, Custom Management Corporation is liable as the principal because Elaina was acting within the scope of her employment when she caused the accident. Custom Management Corporation is liable under which of the following?
vicarious liability
18. According to the U.S. Supreme Court, factors that should be used to determine whether conduct in an employment setting results in a hostile work environment include all EXCEPT which of the following?
whether the conduct is permissible according to commonly-accepted religious precepts
25. The process of liquidating a partnership's assets and distributing the proceeds to satisfy claims against the partnership is called .
winding up
7.28. Under the _____ test, if an agent commits an intentional tort within a work-related time or space-for example, during working hours or on the principal's premises-the principal is liable for any injuries caused by the agent's intentional torts.
work-related
15. _____ generally: 1) establish(es) land use districts within the municipality; 2) restrict(s) the height, size, and location of buildings on a building site; and 3) establish(es) aesthetic requirements or limitations for the exterior of buildings.
zoning
27. Federal anti-discrimination laws prohibit ________ from engaging in _______ against an employee for filing a charge of discrimination or participating in a discrimination proceeding.
employers; retaliation
Sometimes people sell goods even though they do not hold valid title to them. The UCC anticipated many of the problems this situation could cause and established rules concerning the title, if any, that could be transferred to purchasers. Imagine John steals one of your rugs and resells it to Josephine, who does not know that the goods were stolen. If you find out that Josephine has your rug, would you be able to take it back from her?
yes
28. The Magnuson-Moss Warranty Act is a _____ statute that regulates _____ warranties on consumer products.
federal; written
7. General partners do not pay federal income taxes. Instead, the income and losses of partnership have to be reported on the individual partners' personal income tax returns. This is called _____.
flow-through taxation
9. Many international contracts contain a choice of _____________ clause that designates which nation's court has jurisdiction to hear a case arising out of a contract. In addition, many contracts also include a ______________clause that designates which nation's laws will be applied in deciding such a case.
forum-selection; choice of law
Imagine Adiyta sends the following purchase order to Hover and Hover sends an invoice for the drones in response. Which of the following provisions make up the contract between the parties?
- Delivery terms are determined by UCC gap filllers - Timing terms are determined by UCC gap fillers - Payment is due at the time of delivery. A 5% interest charge on all orders that are not paid within five days of theis invoice - There is no restocking fee - Adiyta Enterprises herby agrees to sell and Adiyta Enterprises agrees to buy a XJD 500 Drone with two year full service contract for $12,000
What would need to be present in order for Hover to make a firm offer to Adiyta?
A writing promising to keep the offer open
5. Article 2(A) of the Uniform Commercial Code (UCC) applies to _____.
personal property leases
Under UCC 2-401(1), title to goods passes from the seller to the buyer in any manner and on any conditions explicitly agreed on by the parties. If the parties do not agree to a specific time, title passes to the buyer when and where the seller's performance with reference to the physical delivery is completed. This point in time is determined by figuring out whether or not the contract is a shipment or destination contract.
shipment contract = This type of contract requires the seller to ship the goods to the buyer via a common carrier. destination contract = This type of contract requires the seller to deliver the goods either to the buyer's place of business or to another destination specified in the sales contract.
Whether or not a contract is a shipment or destination contract determines when title passes. Match the appropriate time title passes with the appropriate type of contract.
shipping contract = title passes at the time and place of shipment destination contract = title passes to the buyer when the seller tenders delivery of the goods at the specified destination
What if a customer is not sure whether or not a rug of yours will work in their house? You tell the customer she can buy the rug now and return it within 30 days for a full refund. Who would bear the risk of the loss for the rug in those 30 days?
the buyer
17. On August 1, Tesla Motors offers to sell a Model S to Sara for $80,000. Tesla Motors signs a written assurance to keep that offer open to Sara until September 15. On September 10, Tesla Motors sells the car to another buyer. On September 15, Sara tenders $80,000 for the car. Tesla Motors is liable to Sara for breach of contract under which of the following?
the firm offer rule
20. A warranty that applies to food or drink consumed on or off the premises of restaurants, grocery stores, fast-food outlets, coffee shops, bars, vending machines, and other purveyors of food and drink is called .
the implied warranty of fitness for human consumption
21. Which of the following is an INCORRECT statement regarding the implied warranty of merchantability?
the implied warranty of merchantability requires that the goods must be sold at a price consistent with industry standard or the prior course of dealings between the parties
1. In the case described in the video, who has title to (and rightful ownership of) the bicycle?
the original owner
8. In which of the following does the buyer bear the risk of loss during transportation?
the risk of loss in a shipment contract
6. The rule is a UCC rule that provides that if both parties to an oral sales or lease contract are merchants, the Statute of Frauds writing requirement can be satisfied if (1) one of the parties to an oral agreement sends a written confirmation of the sale or lease within a reasonable time after contracting and (2) the other merchant does not give written notice of an objection to the contract within 10 days after receiving the confirmation.
written confirmation
You have time for one more client, so you decide to focus on the truck coming from Iowa delivering necessary materials to make Acme's widgets. When you check on the delivery, you find that the widgets have been delivered to your loading bay. You go and check on the widgets but realize they are the wrong type. We were sent A-Widgets when you needed C-Widgets. You go back to your purchase order and find that you did indeed order C-Widgets. Can you reject the whole shipment?
yes, because of the perfect tender rule
15. Chris purchases a gold bracelet but his check bounces. He sells the bracelet to Janelle on Craigslist for the fair market value after telling her he had bought the bracelet for a girlfriend but they broke up. Can the jewelry store reclaim the bracelet from Janelle? Why or why not?
No, because Janelle was a good faith purchaser for value.
14. Susan steals a truckload of laptops that are owned by Web Electronics Store. She resells the computers to a local electronics store, which does not know that the goods were stolen. If Web Electronics Store finds out where the laptops are, can it reclaim them? Why or why not?
Yes, because the thief had no title in the goods.
6. Suppose JetGreen Airways, a commercial air carrier, decides to lease a new airplane that is manufactured by Boeing. To finance the airplane acquisition, JetGreen goes to City Bank. City Bank purchases the airplane from Boeing, and City Bank then leases the airplane to JetGreen. Boeing is the _____, City Bank is the _____, and JetGreen is the _____.
supplier; lessor; lessee
Ch 12 Mini Sim on Formation of Sales and Lease Contracts
Hover, Inc. sells high-end drones. They are growing by leaps and bounds but have been confronted with many new legal issues. This module will require you to guide Hover through some of these issues.
16. Which of the following is an INCORRECT statement regarding agreements affecting remedies?
If a consumer objects to a liquidated damages clause in a contract with a large corporation, courts will usually invalidate the contract.
Ch 12 Mini Sim on Title to Goods and Risk of Loss
Imagine you want to start an import business that will bring non-child labor produced Egyptian rugs. There are many legal issues you will have to consider before you begin. This module will walk you through some of those issues.
19. A term that makes it clear to the buyer of a good that no implied warranties attach to the sale of the good is which of the following?
an "as is" disclaimer
1. is a warranty created when a seller or lessor makes an affirmation that the goods he or she is selling or leasing meet certain standards of quality, description, performance, or condition.
an express warranty
15. If the variety of goods to a sales contract is left open, the buyer is given the option of choosing those goods. This unspecified variety is an example of which of the following types of open terms?
an open assortment term
18. Today laws governing the sale of goods have reformed the historical doctrine of ________, which put the risk of a bad purchase or goods on the buyer.
caveat emptor
Assume that Adyita and Hover formalize their agreement with a written contract. The contract includes a provision that reads: Section 18.10. Entire Agreement; Amendments. This instrument contains the entire agreement between the parties hereto with respect to the subject matter hereof. All representations, promises, and prior or contemporaneous undertakings between such parties are merged into and expressed in this instrument, and any and all prior agreements between such parties are hereby cancelled. The agreements contained in this instrument shall not be amended, modified, or supplemented except by a written agreement duly executed by both Landlord and Tenant. If Hover had promised 4 years of drone service, but had only put 2 years in the agreement how many years of service do you think would be binding on Hover?
Two years of service because of the parol evidence rule
9. Which of the following is an INCORRECT statement regarding additional terms in an acceptance?
Under the common law's reasonable facsimile rule, an offeree's acceptance may vary somewhat from the terms of the offer.
25. Also known as "Let the buyer beware," which of the following was the traditional guideline of sales transactions until Articles 2 and 2A of the Uniform Commercial Code were established?
caveat emptor
5. A heading printed in uppercase letters or a typeface that is larger, in a different style, or in a different color than the rest of the body of a sales or lease contract is considered to be .
conspicious
4. The law must address how to handle the receipt and subsequent sale of stolen goods in situations such as in the video where a stolen bicycle is being sold at a flea market. The _____ addresses what title, if any, can be transferred to a purchaser who is sold goods by a seller who does not have valid title to the goods.
Uniform Commercial Code
1. The National Conference of Commissioners on Uniform State Laws promulgated the ______ in order to address the frustration of businesspersons that they are subject to the laws of each state in which they _____.
Uniform Commercial Code; operate
Because the goods are not due for another two weeks, the company tries to rush over conforming goods to Acme. However, you decide to call the company and repudiate the contract before the conforming goods are delivered. What are the seller's options?
correct: - right to stop delivery of goods in transit - right to resale goods - right to recover damages not correct: - rights to recover purchase price
13. The commonly-used shipping term _____ requires the seller to bear the expense and risk of loss until the goods are unloaded from the ship at its port of destination.
ex-ship
14. Two companies enter into a shipping contract. That contract specifies that the seller bears the expense and risk of loss before and until the goods are unloaded from the ship at its port of destination. This scenario best describes which of the following commonly used shipping terms?
ex-ship (from the carrying vessel)
13. Which of the following refers to a characteristic of warranties that are not expressly stated in a sales or lease contract?
implied by law
If the goods are so nonconforming that the buyer has the right to reject them, the risk of loss remains on the seller until (1) the defect or nonconformity is cured or (2) the buyer accepts the nonconforming goods. Which situation do you think would give a buyer such a right to reject the rug?
When you send the buyer the wrong rug, even if it is only slightly different
What's the first question you must ask yourself when figuring out who will bear the risk of loss?
whether or not the contract is a shipment or a destination contract
What are the requirements for the implied warranty of fitness for a particular purpose?
- the seller or lessor has reason to know the particular purpose for which the buyer is purchasing the goods or the lessee is leasing the goods - the buyer or lessee relies on the seller's or lessor's skill and judgement and purchases or leases the goods - the seller of lessor makes a statement that the goods will serve this purpose
Which of the following situations creates an express warranty?
- you tell a customer that Digijump is made of aluminum when it is made mostly of steel and contains no aluminum - you tell a customer that the Digijump will work for two years without needing maintenance incorrect: - You tell a customer that the Digijump is the greatest of pieces of exercise equipment ever made
If a buyer or lessee repudiates a sales or lease contract or wrongfully rejects tendered goods, the seller or lessor has the right to recover damages for breach of contract caused by the buyer's or lessee's breach. Imagine that the contract price for the materials is $50,000, but because the materials were custom made for Acme, they are not really worth much (approximately $10,000). How much can the seller recover?
40,000
9. You purchased a used car for $6,000, and paid in cash. Your purchase is a sale of a good subject to which of the following?
Article 2 of the UCC
The drones that Hover sells are very complex. The component parts are of the highest quality and the value of the drones themselves range from $5,000-$12,000. Everyone who buys a drone receives 24 months of comprehensive repair service (the drones may be of high quality, but they are very sensitive). The value services provided by Hover is roughly $2,000 (depending on the complexity of the issues). What law governs each drone sale contract?
Article 2 of the Uniform Commercial Code
Hover has found that many of its customers, mostly freelance photographers cannot purchase drones outright. Hover has developed a leasing program. What law would cover this drone leasing program?
Article 2A of the UCC
Imagine you are the receiving agent for Acme Enterprises. You have three shipments coming today, which one do you want to check in on first?
Delivery made by a delivery company that contains a special part needed for a specialized machine that Acme uses in its manufacturing process.
In addition to express warranties made by a manufacturer or seller, the law sometimes implies warranties in the sale or lease of goods. Implied warranties are not expressly stated in the sales or lease contract but instead are implied by law. Which implied warranty is present in the following scenario: You: Your patients are going to love this Digijump. Customer: I'm not sure, it seems hard to use. You: It just takes some practice. Customer: I guess. You: I'll tell you what, if you buy this today, I promise you can return it within 180 days if you find it too difficult to use. No cost. Customer: Hmm. That would make me feel much better. You: Good. Customer: Okay. Please deliver it next Friday to my office and I'll write the $50,000 check before I leave. You: Great. It's yours!
Implied warranty of merchantability
Does the company that sent the widgets have any right to cure the defect?
It depends whether performance is due or not
19. Which of the following is a correct statement regarding express warranties?
It is not necessary to use formal words such as "warrant" or "guarantee" to create an express warranty.
Often, goods subject to a sales contract are shipped by a common carrier such as a trucking company, a ship, or a railroad. Many sales contracts contain shipping terms that have different legal meanings and consequences. Match the shipping terms with their definitions.
Requires the seller to arrange to ship the goods and put the goods in the carrier's possession. The buyer bears the shipping expense and risk of loss while the goods are in transit. = Free on board point of shipment Requires the seller to deliver and tender the goods alongside the named vessel or on the dock designated and provided by the buyer. The seller bears the expense and risk of loss until this is done. The buyer bears shipping costs and the risk of loss during transport. = free alongside ship Requires the seller to bear the expense and risk of loss until the goods are tendered to the buyer at the place of destination. = free on board place of destination Requires the seller to bear the expense and risk of loss until the goods are unloaded from the ship at its port of destination. = ex ship Requires the seller to bear the expense and risk of loss of the goods during transportation. However, the seller is under no duty to deliver replacement goods to the buyer because there is no contractual stipulation that the goods will arrive at the appointed destination. = no-arrival, no-sale contract
First you must figure out what law applies to the sale of goods. What do you think?
The import and sale of the rugs would be governed by the Uniform Commercial Code
3. Which of the following is a correct statement regarding the definition of goods according to the Uniform Commercial Code (UCC)?
The unborn young of animals meet the UCC definition of goods
Now that we know what law governs these drone contracts, let's take a look at how a typical customer of Hover enters into an agreement with Hover. Let's call our hypothetical customer, Adiyta. Adiyta comes into the store and talks to one of Hover's sales reps. Here is how the conversation goes: Adiyta: I really think the XJD500 drone would work for me. Sales Rep: Yeah, it is a great drone. It takes great aerial photography because it has such a steady hover. Adiyta: So how much is it going for? Sales Rep: We've had a huge demand for these drones, so this is one of only three left in the store for sale. More are on order, but they won't be available until three months from now. Adiyta: Wow. They're flying! Ha-ha. At this point, has Hover made an offer to sell the drone?
Yes, because this potential contract is governed by the UCC
An implied warranty of fitness for a particular purpose is a warranty that arises when a seller or lessor warrants that the goods will meet the buyer's or lessee's expressed needs. Is there an implied warranty of fitness for a particular purpose made in the following exchange? Customer: I'm looking for a Digijump to help a professional basketball player recover from a sprained ankle. Can you help me pick out the right model? You: Sure thing. The SX100 model is perfect for rehabilitation. Customer: You sure? You: Yes, it has special biofeedback features that will help you focus on the right muscles that need to be strengthened. Customer: Great. I'll take it.
Yes, there was an implied warranty of fitness for a particular purpose given because all three elements of the warranty were present
Ch 12 Mini Sim on Warranties
You are a sales person for a startup which makes a highly complex piece of exercise equipment called Digijump. Digijump is designed to help train and provide physical therapy for professional athletes. When selling such a sophisticated piece of equipment there are many different types of warranties you could be making. This module is designed to expose you to these warranties.
2. Jen buys an Apple watch from her neighbor Paige for nearly fair market value. It is later discovered that Paige obtained the watch from Bling Central with a bounced check—that is, a check for which there were insufficient funds to pay for the Apple watch. Bling Central cannot reclaim the watch from Jen because Jen, the second purchaser, is which of the following?
a good faith purchaser for value
10. Which of the following would NOT be considered an electronic agent by state laws that adopt the Revised Article 2 (Sales) and Article 2A (Leases)?
a human agent who facilitates sales of electronic goods
7. Amanda steals a truckload of Apple TVs that are owned by TVShack. She then resells the televisions to a small local electronics store, WatchRite, who does not know that the goods were stolen. If TVShack finds out where the televisions are, it can reclaim them because the thief had no title in the goods, so title was not transferred to WatchRite. TVShack's only recourse is against the thief, if she can be found. Which of the following best describes the title in the scenario?
a void title
21. Jen buys an Apple watch from her neighbor Paige for nearly fair market value. It is later discovered that Paige obtained the watch from Bling Central with a bounced check—that is, a check for which there were insufficient funds to pay for the Apple watch. Bling Central cannot reclaim the watch from Jen because Jen, the second purchaser, purchased the watch in good faith and for value. The title Paige has for the watch from Bling Central is best described by which of the following?
a voidable title
3. A statement that negates express and implied warranties is called .
a warranty disclaimer
What if a customer wants to special order a rug that does not yet exist? When will the rug be identified?
when shipped, marked, or otherwise designated by the seller or lessor as the goods to which the contract refers
What if the parties haven't specifically agreed as to when title passes?
title passes to the buyer when and where the seller's performance with reference to the physical delivery is completed
2. Consider the situation in the video involving a stolen bicycle. According to the Uniform Commercial Code, in a case in which a buyer purchases goods from a thief who has stolen them, the real owner can reclaim the goods from the purchaser. This is called _____ title.
void