Buisness Law Final

The triple bottom line looks at all of the following except A. how decisions impact the relationship between the U.S. and other nations. B. how decisions impact sustainability and the planet. C. how decisions impact profits and revenue. D. how decisions impact employees and consumers.

A.

Ray is a delivery driver for Sicilian Pasta Company. Ray does exactly what the company tells him. Ray is A. an employee. B. an independent contractor. C. an employer. D. a principal.

A.

T/F A business, but not an individual person, can be deemed liable for monopolizing or attempting to monopolize trade or commerce in violation of the antitrust laws.

False

T/F A buyer is required to cover and a failure to do so will bar the buyer from using any other remedies available under the UCC.

False

T/F A court cannot dismiss a debtor's petition under Chapter 13 even if the circumstances indicate bad faith.

False

T/F A foreign corporation that has not obtained a certificate of authority to do business in a state can nevertheless maintain an action in the state's courts.

False

T/F A gratuitous agent can be liable to a principal for breach of contract, even in the absence of a contract, but not liable for the negligent performance of the deal.

False

T/F A merchant who is in the business of selling certain goods makes an implied warranty of merchantability every time she sells any type of merchandise.

False

T/F A whistleblower is an employee who publicly reveals a co-worker's unsafe or illegal activity.

False

T/F Agency relationships come about by voluntary consent and agreement of the parties—consideration is required, and the agreement must be in writing.

False

T/F An express employment contract cannot protect an employee from discharge without good cause.

False

T/F An independent contractor is, by definition, an employee.

False

T/F Because it may be unclear how a court will interpret and apply a law, companies can ensure decisions are viewed as ethical by documenting their own interpretation of the law.

False

T/F Because social media is so widespread, it is legal and ethical for a company to have social media policies limiting employees from criticizing the company.

False

T/F Certain business processes are copyrightable.

False

T/F Congress does not pass laws based on ethics.

False

T/F Corporate stocks and bonds meet the requirements to be among the items of property characterized as goods under the UCC.

False

T/F Creditors that use information from credit-reporting agencies cannot be held liable for violations of the Fair Credit Reporting Act.

False

T/F Crowdfunding can be exempt from the registration requirements of the Securities Act of 1933 if shares are offered directly to investors.

False

T/F Decision makers need to consider what they can and will do before they consider what they should do.

False

T/F Disparate-impact discrimination occurs when a protected class is adversely affected by the practice or procedure of an employer who intended that result.

False

T/F During an employee's leave under the Family and Medical Leave Act, an employer must continue to compensate the employee to avoid the potential negative effect of unpaid leave on interstate commerce.

False

T/F Federal law on menu labeling supplements but does not supersede previous state and local law on the same subject.

False

T/F Federal law permits the sending of unsolicited commercial e-mail to randomly generated e-mail addresses.

False

T/F Federal securities laws take priority over state securities laws.

False

T/F If a bank pays a stale check in good faith but without consulting the customer, the bank has no right to charge the customer's account for the amount.

False

T/F If a seller fails to deliver the goods, the buyer can purchase other goods to substitute for those due under the contract, but cannot then sue for consequential damages.

False

T/F If any financial institution, such as a brokerage house, handles a check for payment or collection, the check is covered by UCC Article 4.

False

T/F If the acceptance to a sales contract between non-merchants includes terms different from those in the offer, no contract is formed under the UCC.

False

T/F In a product liability suit based on a design defect, a manufacturer is liable only when the harm was not reasonably preventable.

False

T/F In a successful tort suit, an individual is awarded compensatory damages to put him or her in a better position than the party who committed the tort.

False

T/F In an agency relationship, one party called the principal agrees to represent or act for another called the agent.

False

T/F Like the partners in a partnership, the shareholders in a corporation cannot change without affecting the continued existence of the firm.

False

T/F Making ethical decisions is most often best done by analyzing objective standards (such as profit or number of people fired) instead of subjective impacts on stakeholders.

False

T/F Once a bankruptcy petition is properly filed, creditors can commence or continue most legal actions against the debtor to recover claims.

False

T/F Once a manufacturer's trademark is established, another manufacturer may use it without permission.

False

T/F One of the purposes of criminal law is to compensate the victims.

False

T/F Online conduct gives rise to only a narrow variety of legal actions.

False

T/F Outcome-based ethics deals with traditional standards of behavior.

False

T/F Rationalization is the process of making a logical decision based in evidence and an analysis of the ethical dimensions of the decision.

False

T/F Requiring users of a social media site to agree to certain terms and conditions to use the site is most likely an antitrust violation.

False

T/F Securities must be registered under the Securities Act of 1933 for the Securities Exchange Act of 1934 to apply.

False

T/F Tender can occur at any hour and in any manner—such as by a phone call to the buyer, allowing "fifteen minutes to pick up the goods."

False

T/F The Immigration Reform and Control Act makes it legal to hire, recruit, or refer for a fee someone not authorized to work in this country.

False

T/F The UCC provides that a sale or lease contract will fail for indefiniteness if more than one of its terms is left open.

False

T/F The UCC states that an agreement sufficient to constitute a contract cannot exist if the moment of its making is undetermined.

False

T/F The Uniform Commercial Code requires parties to form sales and lease contracts with the same formality used in forming other types of contracts.

False

T/F The law does not prohibit the creation or shipment of counterfeit labels unless they are attached to products.

False

T/F The principal is bound by the agent's unauthorized act, unless the principal negates it.

False

T/F The quality and safety of food may be important to consumers, but food labels that provide standard nutrition facts are a seller's option, not a requirement.

False

T/F The term moral minimum is best defined as the highest degree of ethical behavior expected of a firm.

False

T/F To avoid permitting a key employee to take family or medical leave, an employer must show that the leave would cause "substantial injury" to the employer.

False

T/F To avoid sanctions under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, scienter must exist.

False

T/F To deem an agreement a per se violation of antitrust law, a court must determine whether the agreement actually constitutes a restraint on trade.

False

T/F To gain a share of a market, a businessperson can interfere in another's business, even if the behavior is predatory.

False

T/F To maintain a claim of trademark dilution, the products involved must be similar.

False

T/F To qualify for a Chapter 7 bankruptcy, a debtor must complete a means test to determine whether the debtor has been living within his or her means.

False

T/F Under a shipment contract for the sale of a certain quantity of solar panels, the seller is required to deliver conforming goods at a particular destination.

False

T/F Under the categorical imperative, an unethical decision that would have only a small impact is acceptable as long as no one else in society acts the same way.

False

T/F Warrants are required for searches of businesses in highly regulated industries.

False

T/F When a sales contract contemplates shipment of the goods but does not specify the arrangements, either party can make those arrangements.

False

T/F When profit maximization is the goal, a company does not benefit from ethical behavior.

False

T/F With a joint checking account, the bank can hold any joint-account owner liable for payment of an overdraft even if that owner did not sign the check or benefit from its proceeds.

False

T/F Because a franchisor's termination of a franchise can adversely affect a franchisee, much franchise litigation involves claims of wrongful termination.

True

T/F Because checks serve as a substitute for cash, they can facilitate financial record keeping.

True

T/F Business as we know it could not exist without secured transactions because otherwise sellers and lenders would be less likely to sell and lend on credit.

True

T/F Choosing a business organizational form that limits its owners' liability may lead to greater profits for the firm.

True

T/F Congress enacted the Sarbanes-Oxley Act to help reduce unethical management decisions.

True

T/F Consumers benefit when producers work to develop better products that can be sold at lower prices to beat the competition.

True

T/F Corporate "citizenship" involves making decisions beyond just maximizing profits and dividends.

True

T/F Corporate social responsibility links the responsibility of citizenship with the strategy and key principles of a business.

True

T/F Digital sampling can constitute copyright infringement.

True

T/F Directors and officers whose failure to exercise due care results in harm to the corporation or the shareholders can be held liable for negligence unless the business judgment rule applies.

True

T/F Downloading music into a computer's random access memory, or RAM, without authorization is copyright infringement.

True

T/F Duty-based ethics is based in the idea that every business has certain duties to others.

True

T/F Establishing the relevant product market is a key issue in monopolization cases because the way a market is defined can determine whether a firm has monopoly power.

True

T/F Ethical decision makers should test and reflect on the outcome of their decisions.

True

T/F Express and implied warranties do not displace each other because more than one warranty can cover the same goods in the same transaction.

True

T/F Generally, when an acceptance to a sales contract between merchants includes terms additional to those in the offer, the terms automatically become part of the deal.

True

T/F Global businesses need to be conscious of the impact of different religious principles on ethics.

True

T/F If a court determines that a contract involving both goods and services is primarily a goods contract, any dispute over the deal will be decided under the UCC.

True

T/F If a party to a contract has reasonable grounds to believe that the other party will not perform, he or she can demand in writing assurance of performance.

True

T/F If a person buys cattle at a livestock auction, title will pass to the buyer when the cattle are physically delivered unless the parties agree otherwise.

True

T/F If a sales contract prohibits any changes unless they are in a signed writing, then only those changes agreed to in a signed writing are enforceable.

True

ABC Hardware Store orders one hundred power hand-drills from Best Tools Inc. When the hand-drills are delivered, they are all missing pieces. ABC rejects the shipment. To exercise a right to cure, Best Tools must A. promptly notify ABC of the intent to cure. B. pay a cure fee. C. enter into a new contract with ABC. D. pick up the nonconforming tools before the end of the business day.

A.

Beri owns and operates City Delivery Service as a sole proprietorship. When she dies, the business will automatically A. dissolve. B. transfer to its creditors. C. transfer to Bev's heirs. D. reform with its employees as the owners.

A.

Bio Med Corporation makes and sells Curative, the most prescribed name-brand pain-relief medication. Drugs Inc. has the potential to make a generic version of the same drug. Bio Med agrees to pay Drugs not to make or sell the generic. This agreement is most likely A. a per se violation of the Sherman Act. B. a deal that neither restrains trade or harms competition. C. subject to analysis under the rule of reason. D. not within the scope of the Sherman Act.

A.

Building Company adds a shipping dock to the property of Corporate Complex, but the owner does not pay. Building files a lien on Corporate's property. The property A. can be held to guarantee payment of the debt. B. must be returned to the debtor within a certain period of time. C. must be sold to provide payment of the debt. D. none of the choices.

A.

Devon takes temporary family leave from her job at Equipment Sales Company to care for a newborn baby. With respect to Devon's health-care coverage, during the leave, under the Family and Medical Leave Act, Equipment A. must continue it. B. must add the baby to it. C. may terminate it. D. may suspend it.

A.

Health Food Inc. coordinates the purchase, sale, and delivery of organic products. The stated corporate purpose is to make a profit and to have a material positive impact on society and the environment. Health Food is A. a benefit corporation. B. a private corporation. C. a nonprofit corporation. D. not a corporation.

A.

Hilo tells the Internal Revenue Service that Jon "cheated on his taxes." This can lead to Hilo's liability for defamation if the statement is A. false. B. an opinion. C. true. D. contemptuous.

A.

Integrated Devices, Inc., is a private, for-profit corporation that is owned by seven shareholders who are members of the same family. Integrated is A. a close corporation. B. a public corporation and a private corporation. C. an S corporation. D. a benefit corporation.

A.

Jake offers to sell Kyle a collection of baseball cards. To qualify as a sale under the UCC, Kyle's payment for the cards must be A. in cash, or its equivalent, or in other goods or services. B. the fair market value of the goods. C. split into more than one installment. D. specified on an invoice and evidenced by a receipt.

A.

Kay and Leo form Metro Delivery Inc. Responsibility for all policymaking decisions necessary to the management of corporate affairs rests with Metro's A. board of directors. B. officers. C. shareholders. D. incorporators.

A.

Minerals Ltd. contracts to provide several manufacturers with tin. When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Minerals so that it cannot fulfill its contracts, the distributor A. is excused from the performance of its contracts. B. can substitute some other material for the tin. C. is liable for breach of contract. D. must obtain tin in any way to meet the needs of its customers.

A.

Owen is given value by Payday Sales Company in the form of a commitment to sell goods on credit. In terms of creating an enforceable security interest, this is A. one of the requirements. B. the only requirement. C. a factor but not a requirement. D. irrelevant.

A.

Viaduct Corporation used untested and risky construction techniques to build a bridge under budget. The techniques were legal but the bridge collapsed, killing several people. Viaduct's actions were A. unethical and may result in legislation to ensure it does not happen again. B. dangerous and so inherently illegal. C. legal under Sarbanes-Oxley and so Viaduct will face no penalties. D. ethical because they were legal and so Viaduct owes no one.

A.

When making decisions that are ethical under either profit maximization or corporate citizenship theories, a business should include all of the following steps except A. publicize the options you rejected with your reasons. B. reflect on the outcome of the decision once it is made. C. recognize that there is an ethical issue in the decision. D. apply ethical theories to reasonable alternatives.

A.

With respect to what society will tolerate, a company's compliance with the law, and no more, is A. the lowest ethical level. B. the only ethical level. C. the highest ethical level. D. irrelevant.

A.

"Be honest and treat people fairly." With respect to business ethics, implementing this motto is A. only important with large customers. B. very important. C. not important. D. only important in democratic societies.

B.

Brea and Colin do business as Dig Excavators. In acting on the firm's behalf, Brea makes an honest error in underestimating the cost of a certain project. In this situation, to her firm, Brea is liable for a breach of the duty of A. accounting. B. none of the choices. C. Loyalty. D. care.

B.

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

B.

Jazz Inc. makes and markets music. The company wants to make an initial public offering of securities via the Internet. Most likely, this offering A. is an attempt to deceive and manipulate investors. B. can avoid high costs and complicated procedures. C. will result in higher expenses and extended oversight. D. is a way for investors to fairly break the rules.

B.

Life Products Inc. enters into a contract to sell medical supplies to Med Clinic, which later sells some of the items to Nina, a patient and consumer. Article 2 of the UCC applies to A. the sale from Life Products to Med Clinic only. B. both transactions. C. the sale from Med Clinic to Nina only. D. none of the transactions.

B.

Lucy is a business manager for Manufacturing Company. Ethical issues that Lucy is not likely to encounter include determining A. compliance with environmental regulations. B. protocols for company meetings. C. questions of workplace diversity. D. application of safety standards.

B.

Pipe Inc.'s stated purpose is to install plumbing. Pipe contracts with Quality Contracting to pour a new building's foundation despite lacking the skill and license to do such work. This is most likely A. within the corporation's express powers. B. an ultra vires act. C. allowable and proper as an act to profit corporate shareholders. D. within the corporation's implied powers.

B.

Salsa Inc. complains to the Federal Trade Commission (FTC) about an ad broadcast by Taco Sauce Company, Salsa's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to A. conduct negotiations between the competitors. B. draft a formal complaint. C. order Salsa to broadcast similarly deceptive counteradvertising. D. issue a cease-and-desist order.

B.

Rosa, who operates a Street Tacos restaurant in her apartment, is charged with criminal violations of the local health and building codes, state license regulations, and federal environmental statutes. To obtain a conviction, the prosecution must A. show the evidence as reasonably permitting a guilty verdict. B. convince the court it is more likely than not that the charges are true. C. prove beyond a reasonable doubt that Rosa committed every essential element of an offense. D. persuade three-fourths of the jurors to agree on a guilty verdict.

C.

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

C.

Business Sales Inc.'s debt to Cartage Company is past due. Cartage brings a legal action against Business Sales to collect. To ensure that a judgment in the creditor's favor will be collectible, Cartage asks the court to order the seizure of the debtor's property. This is a request for A. a mechanic's lien. B. an artisan's lien. C. a writ of attachment. D. a writ of execution.

C.

Don interferes with the business interests of Erin in a way not permitted by law, and Erin's business is harmed as a result. To be liable to Erin for the commission of an intentional tort, Don must have A. acted with an evil motive. B. intended to harm Erin's business. C. intended to commit the act. D. acted with a harmful motive.

C.

Hal posts online secretly recorded videos of Ida, and includes her name, address, phone number, and Facebook page. Most likely, Ida could bring a successful tort action against Hal for A. defamation. B. wrongful interference. C. invasion of privacy. D. assault.

C.

Product Sales Inc. adheres strictly to the goal of maximizing profits. Even so, Product Sales will benefit from ethical behavior A. if it efficiently allocates its scarce resources. B. under no circumstances. C. if customer service is good. D. if its owners are happy with the revenue.

C.

Ron borrows funds from Suburban Bank secured by Ron's house. Ron defaults on the debt. The bank's options include A. destroying the collateral and collecting the unpaid debt from Ron. B. repossessing the collateral and disavowing the security interest. C. disposing of the collateral in any commercially reasonable manner. D. retaining the security interest and pursuing a judicial remedy.

C.

Sam, driving under the influence, causes a car accident that results in the death of Tanya. Sam is arrested and charged with a crime punishable by imprisonment for more than a year. This crime is A. a misdemeanor. B. a civil wrong. C. a felony. D. a tort.

C.

Sound Financials Corporation sends daily e-mail ads to its previous customers and those who have opted to receive the notices. The state in which the company is physically located has enacted an antispam law. Under federal law A. the application of federal law to Sound's ads is preempted. B. Sound's ads are prohibited. C. the application of the state's law to Sound's ads is preempted. D. Sound's ads are required to be reviewed by a federal agency.

C.

The National Restaurant Association announces a new industry code of ethics. The effectiveness of this code will be determined by A. the relationship between the code and the law. B. the success of the campaign publicizing the code. C. the commitment of management to enforcing the code. D. the similarity of the code to the employees' personal values.

C.

An ethical code of conduct is not A. a set of rules that the company can enforce. B. a guide for decision makers facing ethical questions. C. an outline of the company's policies. D. law.

D.

Brewery Company's debt to Credit Service is past due. Credit obtains a judgment against Brewery, but the firm refuses to pay. Credit asks the court to order the seizure of Brewery's property. This is a request for A. a writ of attachment. B. an artisan's lien. C. a mechanic's lien. D. a writ of execution.

D.

Ed works for Family Dwellings Inc., an investment firm that buys, renovates, and rents foreclosed houses. Ed steals his employer's digital files to start his own competing business, Good Homes LLC. This is A. wire fraud. B. robbery. C. no crime. D. larceny.

D.

Elmore pays Fidelity Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service. This is A. a stale check. B. a stop-payment order. C. an overdraft. D. a cashier's check.

D.

Lin is an employee at Manufacturing Plant Inc. Lin is called for jury duty and as a result cannot work her scheduled shift. The plant fires Lin, who subsequently successfully sues her employer for reinstatement. With respect to the employment-at-will doctrine, this is A. an exception based on contract theory. B. an exception based on a statute. C. an example of the doctrine. D. an exception based on public policy.

D.

Market Data Corporation is required to file a registration statement with the Securities and Exchange Commission. This statement must contain A. a record of pre-registration sales in securities. B. a copy of prospectuses to be provided to investors. C. a statement that securities being offered for sale are worth the price. D. a description of securities being offered for sale.

D.

Motor Parts Sales Inc. hires Nolly to work on its shipping dock, accepting deliveries, and dispatching trucks, and dealing with customers and drivers. With respect to Motor Parts, Nolly is most likely A. a principal. B. an agent and a principal. C. none of the choices. D. an agent.

D.

Nora works at Oil & Gas Inc. She is a sales representative who works with Oil & Gas customers. The company closely supervises its sales reps, and dictates their schedules. With respect to third parties, Nora is A. a principal. B. an independent contractor. C. an employee only. D. an employee and agent.

D.

Oversight Inc.'s board of directors votes to empower corporate officers to make decisions regarding ordinary, daily corporate affairs within well-defined guidelines. With respect to these affairs, Oversight's board A. was never responsible. B. shares the responsibility. C. is relieved of its responsibility. D. retains its responsibility.

D.

Pine Mills Inc. agrees to sell a certain quantity of plywood to Quality Lumber Company under a destination contract. Pine Mills must A. allow Quality Lumber to reject the plywood for any reason. B. place the plywood into the hands of Railway Transport, a carrier. C. inspect the plywood before tendering its delivery D. deliver the plywood to a particular destination.

D.

Precise Parts, Inc., and Quality Auto stores enter into a contract for a sale of auto parts that meet certain specifications. Precise Parts ships goods that do not comply. Quality Auto A. must accept the entire shipment. B. cannot reject the entire shipment. C. must reject the entire shipment. D. can reject the entire shipment.

D.

The Fraud Reduction and Data Analytics Act to prevent, detect, and respond to fraud in federal programs institutionalizes A. corporate policy. B. federal programs. C. fraud. D. ethical rights and duties.

D.

T/F A bank may contractually shift to its customer the risk of forged checks created electronically or otherwise by the use of non-manual signatures.

True

T/F A business that cannot provide scientific evidence to support its marketing claims may be held liable for deceptive advertising.

True

T/F A check may fall under Uniform Commercial Code Article 3 as a negotiable instrument and be subject to UCC Article 4 in the course of collection.

True

T/F A deceptive ad for a product involving wrongful charges to consumers may result in an award of damages of a defendant's unjust gains and consumers' losses.

True

T/F A defective product is an unreasonably dangerous product when it is dangerous beyond the expectation of the ordinary consumer.

True

T/F A descriptive term is protected under trademark law if it acquires a secondary meaning.

True

T/F A false statement or unjustified claim about a competitor's products can result in liability for deceptive advertising.

True

T/F A seller who tenders nonconforming goods has reasonable grounds to believe that the buyer will accept the tender if it includes a price allowance.

True

T/F An employer can avoid liability under Title VII by showing that the employer's standards for hiring and promoting have a substantial, demonstrable relationship to realistic qualifications for the job at issue.

True

T/F An employer cannot discharge a worker who, in good faith, refuses to work in a high-risk area if bodily harm or death might result.

True

T/F Any person can be an agent, regardless of whether he or she has the capacity to contract.

True

T/F Any time that one party's allegedly wrongful conduct causes injury to another, an action may arise under the law of torts.

True

T/F Anyone who has access to or receives inside information of a nonpublic nature and trades on it for personal gain can be liable under SEC Rule 10b-5.

True

T/F Arbitrary and fanciful trademarks are sometimes considered to be the most distinctive trademarks.

True

T/F If a seller supplies ten white dishwashers in response to an order for ten black washing machines—"F.O.B. the seller's warehouse"—and the goods are damaged in transit to the buyer's store, the loss falls on the seller.

True

T/F If an agent has represented himself or herself as possessing special skills, the agent is expected to use them.

True

T/F If the legitimate benefits outweigh the anticompetitive effects of a resale price maintenance agreement, the agreement may be held lawful.

True

T/F If the members of a limited liability company want to reinvest profits in the business, they may opt for the firm to be taxed as a corporation.

True

T/F Improper filing of a financing statement can render a security interest unperfected.

True

T/F In a Chapter 13 proceeding, the debtor retains possession of his or her assets.

True

T/F In a criminal case, the state must prove its case beyond a reasonable doubt.

True

T/F In a sales contract, the passage of risk of loss from a seller to a buyer gives the buyer the right to insure the goods and the right to recover from third parties who damage them.

True

T/F In a sole proprietorship, the proprietor bears the burden of any liabilities incurred by the business enterprise.

True

T/F In response to an order for a hundred baseballs, the shipment of a hundred basketballs is both an acceptance of the offer and a breach of the contract.

True

T/F Individual state laws should be relied on to determine corporate law because, despite the existence and use of model corporation acts, there is considerable variation among the states.

True

T/F Insider trading is prohibited because trading on the basis of inside information can give the trader an unfair advantage over the investing public.

True

T/F Intellectual property is property resulting from intellectual, creative processes.

True

T/F It can be difficult to predict with certainty how a court will apply a given law to a particular action.

True

T/F Labels on fresh and frozen fruits and vegetables must indicate where the food originated so that consumers can know if the food was imported.

True

T/F Limited legal liability can be an advantage for a small business wishing to raise capital.

True

T/F Most of the states and the federal government have enacted statutes to protect employees who report wrongdoing from employer retaliation.

True

T/F One view of the role of business in society is the perceived duty of a company only to generate revenue for its owners.

True

T/F Providing investors with more information helps them make buying and selling decisions about securities.

True

T/F Shareholders' assumption of personal liability, as guarantors, for the obligations of a corporation can enable the firm to obtain credit.

True

T/F Some business processes can be protected as trade secrets.

True

T/F The Fourth Amendment protects only against searches that violate a person's reasonable expectation of privacy.

True

T/F The Sarbanes-Oxley Act of 2002 attempts to increase corporate accountability by imposing strict disclosure requirements and harsh penalties for securities laws.

True

T/F The Telemarketing Sales Rule applies to any offer—domestic or foreign—made to consumers in the United States.

True

T/F The first step in making an ethical decision is to understand the problem.

True

T/F The obligation of commercial reasonableness underlies every sales and lease contract.

True

T/F The parties to a sales contract can limit or exclude consequential damages for any commercial loss—such as a business's lost profits or property damage.

True

T/F The power to control the market price of a product is market power.

True

T/F The primary document needed to incorporate a business is the articles of incorporation because the articles serve as a primary source of authority for the firm's organization and functions.

True

T/F To make informed decisions and supervise corporate officers and employees, the directors need an unrestricted right to inspect corporate books and records.

True

T/F To the extent that it has not been modified by the UCC, the common law of contracts applies to sales contracts.

True

T/F Under the principles of agency law, any sale of goods by a salesperson in a store to a customer can be binding on the owner of the store.

True

T/F When an agent, acting within the scope of his or her authority, contracts with a third party, a disclosed principal is liable to the third party.

True

T/F When an award of punitive damages is grossly excessive, it furthers no legitimate purpose and violates due process requirements.

True

T/F When making ethical decisions, a business should evaluate the financial implications.

True

T/F With respect to tainted foods, the focus of federal regulators has shifted from responding to incidents of contamination to preventing them.

True