BUSI 2301 Business Law Exam One Ch 1 - 15, Test 1 Chapters 1-3 Business Law Today (Intro to business law), Business Law Today, Business Law Final Exam Study Guide, Business Law Today - The Essentials Midterm, Business Law Today, The Essentials - Fina...

Mirror Image Rule

Contract must be accepted as it is offered. Any alteration to offer is a counteroffer and thus the original offer is dead.

A __ contract must be in a special form or be created in a certain way.

formal

The First Amendment guarantees the following: (check all that apply)

freedom of speech. freedom of religion. freedom of the press.

Jack and Jill, citizens of Kentucky, are involved in a case related to the custody of their child. The Kentucky state courts

have exclusive jurisdiction over this case.

Appellate courts include courts of appeals and supreme courts. T/F

True

The U.S. Supreme Court is the highest tribunal in the land, and its decisions are binding on all other courts. T/F

True

The promise or obligation of each party to a contract must be supported by consideration in order for the contract to be valid. T/F

True

The use of rogue programs to produce abnormal computer behavior is an example of computer trespass. T/F

True

There is at least one federal district court in every state.

True

In a suit between Fine Sales Company and Great Foods, Inc., the court orders a rescission. This is

an action to cancel a contract and return the parties to the positions they held before the contract's formation

A toy merchant's display of a doll house in a store window for $100 constitutes:

an invitation to the public to make an offer for the doll house.

A firm offer can be best defined as:

an offer that cannot be revoked for a reasonable time if no time is stated.

Which of the following is true of a contract between two minors?

Each minor has the right to avoid the contract.

An offer made in jest that does not appear to be seriously intended to an offeree is considered a valid offer. T/F

False

The law is uniform throughout the United States in binding minors on contracts induced by misrepresenting their age. T/F

False

There is no difference between a void contract and an unenforceable contract. T/F

False

Kenneth was sentenced to six years in prison for forgery. In this case Kenneth has committed a(n)

Felony

Which of the following best describes the term "consideration"?

It indicates what the promisor demands and receives as the price for a promise.

Which of the following best describes the term "recognizance"?

It refers to the obligations that people enter into before a court to do an act required by law.

Assumption of Risk

Legal defense to negligence torts. The plaintiff assumes a certain level of risk that they can be injured in the activity.

Justin wants to file a suit against Mikayla. For a court to hear the case

the court must have jurisdiction.

If a minor contracts for necessaries, the minor's liability is quasi-contractual in nature. This means that:

the minor is not required to pay the contract price but will be required to pay a reasonable amount to avoid unjust enrichment.

During the trial phase of Fuel Corporation's suit against Gas Stations, Inc., their attorneys engage in voir dire. This is

the selection of jurors.

Contracts made by people who have become so intoxicated that they cannot understand the meaning of their acts are:

voidable

In a small claims court, there is no jury and a judge tries the case. T/F

True

In the legal system of the United States, it is possible for identically worded law to have different consequences in different states. T/F

True

The legal term for one party benefiting unfairly at the expense of another is unjust enrichment. T/F

True

Disposition

Asking questions to witnesses using written or verbal communication. What is this step in the litigation timeline?

Specific Performance

Asking the court to force for other party to specifically perform. Only unique and rate items does this happen with.

A person licensed to represent others in court is called a(n):

Attorney

Explain why we have laws.

Establish a framework in which society can operate as smoothly as possible to avoid disputes.

A promise to steal a valuable piece of art is valid consideration to support a contract. T/F

False

An antitrust violation occurs when a business firm seeks to have cooperation within its firm to diminish competition. T/F

False

If a merchant displays a coat at a particular price, he has a binding requirement to sell at that price. T/F

False

It is against the law to violate an individual company's code of conduct.

False

The legal system of the United States is based primarily on the French legal system. T/F

False

Under CERCLA, so long as the current owner did not participate in the activity which resulted in contamination of the property, the owner is exempt from liability. T/F

False

Which of the following is true of government regulation business?

Government regulations are used to eliminate abuse in business.

Assignment and Delegation

The offeror has the right to assign benefit and delegate contractual right to third party. Assignment is transfer of consideration to third party and delegation is transfer of responsibly to complete contract. What is this concept?

Which of the following conditions is a prerequisite for any agreement to be legally enforceable?

The parties entering into the agreement must have the mental capacity to contract.

Stare Decisis

The precedent is binding and must be followed. This is specific to precedents set in jurisdictions unless its is a case in the supreme court.

Which of the following is true of trial courts?

They handle cases that are first instituted in them.

Explain the function of the courts.

To interpret and apply the law

Advertisements and catalogs are examples of general invitations. T/F

True

An employee who picks up inventory tools from his office with the intent to deprive the owners of the property is an example of larceny. T/F

True

An offer that does not specify a particular manner of acceptance may be accepted in any manner reasonable under the circumstances. T/F

True

If the intended acceptance varies or qualifies an offer, the counteroffer rejects the original offer under the common law. T/F

True

If, after an offer has been made, the performance of the contract becomes illegal, the offer is terminated. T/F

True

Private citizens are entitled to sue on the basis of the Water Pollution and Control Act. T/F

True

The Robinson-Patman Act prohibits sales at unreasonably low prices in order to eliminate competition. T/F

True

You must have standing to sue to bring a lawsuit.

True

Injunctive Relief

What is a Court order to stop an action or behavior

Chelsea is a state court judge. Like judges in most state courts, in a particular case, she may grant

a remedy in equity and a remedy at law.

Savers Mart, Inc., distributes its merchandise to retail outlets on an interstate basis. Under the commerce clause, Congress has the power to regulate

any commercial activity that substantially affects interstate commerce involving more than one state.

The failure of a party to perform the obligations assumed under a contract is known as a(n):

breach of contract

Which one refrains or promises to refrain from doing something, this conduct is known as ___.

forbearance

Criminal acts are prohibited only by federal government statutes.

False

Felonies refer to crimes that are usually punishable by just a fine. T/F

False

If an adult purchases personal property from a minor, the minor has only a voidable title to the property. T/F

False

Regulatory agencies are also called social regulatory agencies. T/F

False

The law considers everyone under the age of twenty-one to be a minor. T/F

False

Which of the following statements is true of common law?

Cases in common law are decided on the basis of precedents.

Which of the following best describes the difference between civil law and criminal law?

Civil law deals with the enforcement or protection of private rights, whereas criminal law deals with offenses against society.

When a minor returns property in a damaged condition, in most jurisdictions an adult (party to the original agreement) may:

not recover compensation.

What type of jurisdiction exists when courts have authority to hear a case for the first time?

original jurisdiction.

The Bill of Rights is

the first ten amendments to the United States Constitution.

A jury found the plaintiff's damages amounted to $100,000 but that the plaintiff was also 45% liable for the event causing the damages. Under the doctrine of comparative negligence, what damages will the plaintiff collect?

$55,000

A person doesn't have the time, energy (emotion), and/or money

3 Reasons to try ADR

Fraud

A false representation of a matter of fact, whether by words or conduct, by false or misleading allegations, or by concealment of what should have been disclosed. That deceives and is intended to deceive another so that the individual will act upon it to her or his legal injury. Fraud in four parts: 1. False Statement, 2. Knowingly False, 3. Intent to Deceive, 4. Detrimental Reliance

Federal courts have subject matter jurisdiction over cases involving which of the following? (check all that apply)

A federal question. Diversity of citizenship with an amount in controversy over $75,000.

A variety of methods that you might use and consider to avoid our legal system. ** Instead of hiring an attorney, filing a lawsuit and going to court.

Alternative Dispute Resolution (ADR)

What is the difference between an agreement and a contract?

An agreement results whenever two people's minds meet on a subject, but a contract only exists when the parties intend to be legally obligated by the terms of the agreement.

Contracts made by people who were intoxicated to such an extent that they would not have entered into it if they were sober, makes the contract voidable. T/F

False

It is simpler to file a suit in a court of record than in an inferior court. T/F

False

Which of the following is true of a jury trial procedure?

The jury is selected before an opening statement is made by the attorney.

A court can exercise personal jurisdiction over certain out-of-state defendants based on activities that took place within the state under which authority?

The long arm statute.

Generally, a part payment of a past-due debt is not consideration to support the creditor's promise to cancel the balance of the debt. T/F

True

Government regulates business by means of antitrust laws that seek to promote competition among businesses. T/F

True

If the supposed consideration consists merely of a promise to do what one is already legally obligated to do, consideration is invalid. T/F

True

Payments made to governmental officials to obtain new business are treated as bribes by the Foreign Corrupt Practices Act. T/F

True

Statutory law includes state statutes and ordinances passed by cities and counties.

True

The Racketeer Influenced and Corrupt Organizations Act includes civil sanctions as well as criminal ones. T/F

True

While many states have repealed their former laws restricting the capacity of a convict to contract, some states still have restrictions. T/F

True

The First Amendment protects corporate political speech.

True

The Water Pollution and Control Act is responsible for preventing the illegal discharge of pollutants into interstate and navigable waters. T/F

True

The complaint and answer, taken together, are called the pleadings.

True

The location where a case is to be tried is known as a venue. T/F

True

The mediator may propose a solution but does not make a decision resolving the matter.

True

The offering of money, entertainment, or anything of value as a corrupt payment constitutes a bribe. T/F

True

An Ohio state statute bans certain advertising to prevent consumers from being misled. A court would likely hold this statute to be

justified by the need to protect individuals' rights.

If an offeror receives something of value in return for a promise to hold the offer open, it is said to be a(n) ___, and this type of offer cannot be revoked.

option

Transnational Corporation and United Shipping, Inc., agree to a contract that includes an arbitration clause. If a dispute arises, a court having jurisdiction may

order a party to submit to arbitration.

Activities that are illegal regardless of their effect are known as __

per se violations.

Procedures used in Oklahoma and other states in making decisions to take life, liberty, or property are ht focus of constitutional provisions covering

procedural due process

Owen is a federal judge whose judicial decisions are part of case law, which does not include interpretations of

sound bites in the media.

A Vermont statute that limits the liberty of all persons to engage in a certain activity may violate constitutional provisions covering

substantive due process

A Massachusetts state statute imposes a prison term, without a trial, on all street performers who operate in certain areas. A court would likely review this statute under the principles of

the due process clause.

The term disaffirmation refers to:

the election to avoid a contract or set it aside.

If South Carolina enacts a statute that directly conflicts with a federal law

the federal law takes precedence

To initiate a lawsuit, Darla files a complaint against E-Sales Company, which responds with an answer. Together, the complaint and answer are

the pleadings.

Disgorgement of profits refers to:

the repayment of any profits received as a result of corrupt payments.

What precaution can a business person take when contracting with a minor?

A business person can require an adult to join the contract as a cosigner.

Tortfeasor

Who is the person who commits tort?

All who regularly deal in credit transactions, meaning if you or your business deal in a credit transaction more than twice. The second time you give someone credit you have to comply with TILA.

Who must comply to TILA?

Which of the following is not a true contract and has been imposed by law in order to prevent one party benefiting unfairly at another's expense?

A quasicontract

Title of legislation passed by congress which holds a large section called the TILA or Truth in Lending Act.

Consumer Credit Protection Act of 1968

Any restriction on commercial speech is unconstitutional

FALSE

A state administrative agency affects businesses throughout the country. T/F

False

A trademark must be registered before the holder is afforded any rights or protections for the mark. T/F

False

If a decision of an administrative agency conflicts with at statue enacted by a higher legislative body, the agency decision will prevail. T/F

False

Most business people prefer making oral contracts regarding matters of great importance. T/F

False

Ratification to a contract can be made any time before reaching majority. T/F

False

State laws are the supreme law of the United States.

False

The "mailbox rule" does not apply in situations where the offeror does not receive the acceptance. T/F

False

The Uniform Commercial Code states that when a contract for the sale of good is modified by agreement of the parties, consideration is necessary to make it enforceable. T/F

False

Which source of law responds more to the changing demands of the people?

Statutes

Compensatory

You get your money back for contract. Anything you paid is refunded.

Negotiation

What type of Alternative Dispute Resolution does not involve a third party?

After reviewing a case, an appellate court has the following options: (check all that apply)

affirm the trial court's decision. reverse the trial court's judgment. remand the decision and send it back to the trial court. affirm or reverse a decision in part.

A summons is a way for parties to obtain unprivileged information from another party prior to trial. T/F

False

The law states that a unilateral contract can be formed when performance is started. T/F

False

The most common type of relief that courts of equity provide is monetary damages. T/F

False

To establish the offense of criminal copyright infringement, a prosecutor needs to prove that the infringement was done for non-financial gain. T/F

False

To recover damages for an intentional tort, the plaintiff is required to prove that there was a breach of duty by the tortfeasor to the plaintiff. T/F

False

An offeree's inquiry about the terms of an offer that differ from the offeror's terms will have what effect?

The inquiry will not reject the offer, and if the offeror says no, the original offer may still be accepted if it has not been revoked.

As a general rule, the adequacy of the consideration is irrelevant because the law allows bargains. T/F

True

Consideration is not necessary to support an obligation of record. T/F

True

One may have rights and obligations imposed by law when no real contract exists. T/F

True

Nicknamed TILA, designed to address (solve) two problems. 1. Full disclosure of all transaction data and must be on the front page of contract. 2. End discrimination, mainly gender

Truth in Lending Act

An offer expresses the willingness of the offeror to enter into a contractual agreement. T/F

True

Only financial items can constitute consideration. T/F

False

Performing or promising to perform what one is already obligated to do is valid consideration. T/F

False

Probate courts handle divorce and child custody cases. T/F

False

The amount in controversy in a diversity of citizenship case must be more than $1 million before a federal court can take jurisdiction.

False

When charitable enterprises are financed by voluntary subscriptions of many people, the promise of each person is generally not held to be enforceable. T/F

False

The doctrine of strict liability can make the manufacturer of a dangerously defective product liable, even if there's no proof of negligence. T/F

True

The system of equity evolved to provide judicial relief in cases where no adequate remedy at law existed. T/F

True

Blake has subscribed to a local charitable association where he needs to make a monthly payment of $100. However, a few months later, Blake stops paying this amount. Which of the following exceptions to the requirement of consideration will enforce that Blake pays the amount?

Voluntary subscriptions

Southeast Shipping Company challenges an Alabama state statute, claiming that it unlawfully interferes with the interstate commerce. A court will likely

balance Alabama's interest in regulating the matter against the burden on interstate commerce.

A person who is under the influence of drugs...

cannot use that as an excuse to void a contract.

In a suit between Best Products, Inc., and the Central Corporation, the court applies the doctrine of stare decisis. This means that the court follows rules of law established by

courts of HIGHER rank only

Which of the following statements best describes a difference between rules and laws?

Laws are rules that are enacted by the government.

A ___ is a court decision that determines the decision in a subsequent, similar case.

Precedent

Parol Evidence

Prior verbal statements are not allowed and do not matter once contract is written and signed by offeree.

___ laws are those that state how parties are to go forward with filing civil actions and how these actions are to be tried.

Procedural

Administrative agencies primarily set policy through the issuance of rules and regulations. T/F

True

In a democratic society, laws generally reflect the ethical view of the majority. T/F

True

When an offeree is not aware of the insanity of the offeror and communicates assent to an offer, it is considered accepted. T/F

False

Remedies at law include monetary damages.

True

Silence constitutes acceptance to an offer if it is reasonable in consideration of previous dealings that the offeree to notify the offeror of non-acceptance. T/F

True

Specific performance is a remedy in equity.

True

Statutes are easier to amend than constitutions. T/F

True

When a contract is required to be sealed, a substitute for an actual seal may be used. T/F

True

Julia is a U.S. citizen. She establishes a Web site that posts threatening messages about celebrities. Her Web site is

not protected by the First Amendment.

A provision in the California state constitution conflicts with a provision in the U.S. Constitution. If challenged

the U.S. Constitution, not the state provision, will be enforced.

To recover for a tort based on negligence, the plaintiff must show:

the breach of the tortfeasor's duty to the injured party.

By performance

How are most contracts discharged?

Arbitration, Mediation, Negotiation

3 Major types of ADR

No 3P, the parties attempt to settle their dispute face to face which leads to an agreement or settlement.

Negotiation

Which of the following constitutes valid consideration?

Past performance

A chief officer is known as a judge in a state court of record as well as in a federal court. T/F

True

Arbitration is the most formal method of alternative dispute resolution.

True

As a general rule, a minor is liable for torts as fully as an adult is. T/F

True

Defamation of Character

An intentional false statement to damage the character or reputation of another person. Examples are SLANDER which is the spoken form and LIBEL which is the written form.

What is a wobbler?

An offense that can be either a felony or a misdemeanor.

Most similar to court system, select a neutral 3P to act as judge to hear dispute to make the decision which is binding.

Arbitration

Retraction of offer

As offeror, you have right to take back any offer before it is accepted by offeree. If offeror chooses to retract offer after it is accepted then the offeror is breaching the contract and is liable to legal penalties. What is this action?

Which of the following is most likely to be a tort based on negligence?

Automobile accidents

The ___ consists of ten amendments to the U.S. constitution specifically designed to protect the civil rights and liberties of citizen and the states.

Bill of Rights

Tort Law

Brings wrong conduct into two parts. 1. Really bad conduct which is punished by prison - Criminal wrongs, 2. Not so bad conduct which is punished by fines - Civil wrongs

The provision in the constitution that gives Congress the power to regulate interstate commerce

Commerce clause

A written request to a court to settle a dispute is called a(n):

Complaint or petition

Which of the following is true of the Uniform Commercial Code (UCC)?

Individual states may make changes to the portions of the UCC that they have adopted.

Anything that is a product of someone's mind. A product that was thought up through the creative process. Ex: inventions, songs, books, etc.

Intellectual Property

At the trial, after Belinda (the plaintiff) calls her witnesses, offers her evidence, and otherwise presents her side of the case, Tom (the defendant) has at least two choices between courses of action. Tom can call his first witness, or he can do which of the following?

Make a motion for a directed verdict.

Misrepresentation

Making a false statement that standing by itself doesn't tell you if it's fraud or not. ~ 1. With intent to deceive if intentionally false, it maybe fraud and is punishable, 2. Without intent to deceive and non-intentionally false, it is innocent misrepresentation.

In which case was the power of judicial review established?

Marbury v. Madison.

A neutral 3P acts as a communicating agent between the parties and assists them in negotiating a settlement. Doesn't have the authority to make a decision.

Mediation

In which form of settlement does a neutral third party work with both sides in the dispute to facilitate a resolution?

Mediation.

A county court in Kentucky is deciding a case involving an issue that has never been addressed before in that state. The Illinois Supreme Court, however, recently decided a case involving a very similar fact pattern. Is the Kentucky court obligated to follow the Illinois Supreme Court's decision on the issue?

No, because the Illinois Supreme Court's decision is only persuasive authority.

Which of the following is true of state trial courts?

They handle cases that are first instituted in them.

Which of the following is true of special federal courts?

They have jurisdiction limited by Congress.

Often called the "Fourth Branch" of there is an inter-branch problem of no checks and balances and these agencies are not mentioned by the constitution. The supreme court said to overturn or reverse a decision made by an agency, it must be proven to be arbitrary or capricious (w/o fact or reason). Meaning not based on any evidence, hard to prove.

Why is it the 4th Branch of Government

Because the founding fathers could not have imagined that interstate commerce would ever be easy to ship and/or deliver timely. Ex: Trains, Airplanes, Trucks, etc

Why the original purpose of the commerce clause changed?

In which case did the United States Supreme Court hold that wheat production by an individual farmer intended wholly for consumption on his own farm was subject to federal regulation?

Wickard v. Filburn.

An executory contract is defined as:

a contract in which the terms have not been fully carried out by all parties.

Mark owes $2000 each to his business partners, Ryan, Bryan, and Clark. Since Mark is facing financial difficulties, his business partners agree to accept a total amount of $4800 from Mark as a cancellation of the unpaid balance due to them. This type of an agreement is known as a ______.

composition of creditors

An offeree's response that rejects an offer by varying its terms is known as a(n) ___.

counteroffer

Bill is arrested for stealing thousands of cans of tomato sauce from Wal-Mart. The story makes the news and is very popular on social media. Prior to Bill's trial, his attorney argues to the judge that Bill cannot receive a fair trial in McCracken County, Kentucky because of the pretrial publicity. If Bill's attorney wants to move the trial to Ballard County, Kentucky, he can request for a change of

venue.

A __ contract would be an enforceable agreement but, because of circumstances or the capacity of a party, one or both of the parties may set it aside.

voidable

If a person has not been declared incompetent by a court but lacks legal capacity, such person's contracts are:

voidable

A federal statute takes precedence over the US Constitution

FALSE

The bill of Rights protects individuals against some interference by the federal government only

FALSE

A court may never depart from precedent.

False

Mitigation of damages

A person who has suffered an injury or loss should take reasonable action, where possible, to avoid additional injury or loss. What is this action?

A temporary order that is issued by a court with equity powers forbidding activities that would be detrimental to others is known as:

A restraining order.

Define law.

A rule of civil conduct, commanding what is right and prohibiting what is wrong.

A person who has not been formally declared incompetent but has periods of lucidity is prohibited from contracting in order to protect those who might seek to contract with such person. T/F

False

__ is the assent to an offer that results in a contract.

Acceptance

Administrative (regulatory) Agencies are federal, state, or local government agencies established to perform a specific function (ex: FAA, CIA, SEC, FDA).

Administrative Agencies

Which of the following statements is most likely to be true of administrative agencies?

Administrative agencies have the power to implement laws.

An invitation to trade, not and offer to any one specific party.

Advertisements are what?

Which of the following might a company's code of conduct address?

All of the above. Its commitment to legal compliance. Its commitment to the welfare of its employees. The company's ethical priorities.

Describe the procedure for filing a suit in a small claims court.

Filing and trying a suit in an inferior court starts with obtaining a form for the complaint from the court and filling it out by the plaintiff without help from a lawyer. The defendant is then served with the complaint. When the case is tried, the procedure is much more informal than in a court of record. A judge tries the case because there is no jury present. Neither party has to be represented by an attorney, and in some courts may not be so represented. Thus, the judge asks the parties to state their positions. Witnesses and evidence may be presented, but the questioning is more informal. The judge is likely to ask questions in order to assist in ascertaining the facts. The judge then renders the verdict and judgement of the court. Normally, either party may appeal the judgement to a court of record, in which case the matter is retried there.

Which of the following is true of the United States Supreme Court?

It has appellate jurisdiction in cases based on the U.S. Constitution.

Which of the following is true of the Children's Online Privacy Protection Act (COPPA)?

It imposes certain requirements on operators of websites directed to children under the age of 13.

Sam and Martha sign a contract in which Sam agrees to pay a certain price and buy Martha's house. Later, Sam's brother states that Sam often has intervals of delusions and hence the contract is invalid because it has been made by an incompetent person. Sam has not been declared by the court as insane. In such a scenario, according to law, which of the following will entitle Martha to the price agreed upon in the contract?

Sam was in a sane frame of mind and understood the contract when he signed it.

Kenneth, ages sixteen, sells his car to Robin, aged 49. Later, Robin sells the car to Sarah, an innocent third party, before Kenneth can disaffirm the contract. In this case, which of the following will hold true?

Sarah can obtain good title to the property.

A probate court is an example of a(n):

Special court

The best definition of a precedent is

a court decision that furnishes an example or authority for deciding subsequent cases involving identical or similar facts.

The tort of injurious falsehood occurs when:

a person makes false statements of fact that degrade the quality of another's goods or services.

An agency's power to determine whether the activity of a regulated entity is acceptable or not is an example of:

a power over business practices.

Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court. After its review of Kelly v. Lewis, the appellate court upholds the lower court's verdict. The appellate court has

affirmed the case.

Regulatory agencies can use their licensing power to:

allow a business to enter the filed being regulated.

Carol files a suit against Andy in a state trial court and loses. Carol

can plead her case before an appellate court.

The Office of Foreign Assets Control (OFAC) is responsible for:

enforcing economic sanctions against individuals and entities deemed a threat to national security.

The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) seeks to:

ensure the cleanup of waste from previous business activities.

A Harbour City ordinance that restricts most vendors from doing business in a heavyily trafficked area might be upheld under constituional provisions covering

equal protection

Ina given case, most courts may grant

equitable remedies, legal remedies, or both

Judy promises to pay Ashley $50 to babysit her children. After Ashley babysits the children, Judy pays Ashley the $50; thus each party has completed performance of each part of the contract. This is an example of a(n):

executed contract

Lora files a suit in Michigan against Ned over the ownership of a boat docked in a Michigan harbor. Lora and Ned are residents of Ohio. Ned could ask for a change of venue on the ground that Ohio

is a more convenient location to hold the trial.

Machismo Motor Sales Corporation regularly advertises its off-the-road vehicles, all-terrain vehicles, and other products. Under the First Amendment, these ads and other commercial speech are given

less extensive protection than noncommercial speech.

In a suit between Delta Data Company and Eagle Information, Inc., the court applies the doctrine of stare decisis. This requires the court to find cases that, compared to the case before it, has

similar facts

Which of the following are advantages to resolving a dispute before trial?

All of the above. Save Money Save Time More flexibility to decide the outcome.

A corporation normally is subjected to personal jurisdiction in which states?

All of the above. The state where it is incorporated. The state where it has its principal office. In states where it is doing business.

ANZ Inc., a cement manufacturer, releases hazardous chemicals into the atmosphere and also into nearby streams. The pollutants released into the atmosphere exceed acceptable levels and the company is facing a suit from the residents of nearby towns. Under which of the following acts can the company be sued?

Clean Air Act

List four sources of law.

Constitutions (bill of rights) Statues (codes) Judicial Decisions (precedents) Administrative Agency Orders (can make laws and codes)

Distinguish among crimes, torts, and ethics.

Crimes - offenses against society as a whole Torts - wrongful act or infringement of a right leading to a civil legal liability Ethics - moral principles that help us determine the morality of conduct and motives

The current impact is that congress now regulates the majority of businesses which is a complete reverse of the original purpose. Congress now regulates the entire economy.

Current Impact of Commerce Clause

Strict Liability

Defendant had no intent, was not responsible for outcome, but they are liable just because they are. Duty of care does not matter nor does intent. What is this?

Equitable remedy

Despite the breach of contract, you don't want your money back, you want the service completed (performed) or you want your product fixed. What are you looking for?

On investigation, it was found that Ken, the bookkeeper at CL Corp., had stolen money from the company's account and recorded financial transactions inaccurately to cover up for this activities. For which of the following business crimes can Ken be prosecuted?

Embezzlement

Punitive damages

Extra compensation on top of what the person owes to you as punishment.

All agreements are contracts. T/F

False

An agreement between two parties to perform an illegal act is a quasicontract? T/F

False

An office supply store promises to sell a customer all of the paper ordered by the customer for $4.50 a package in exchange for the customer's promise to pay that price for any copy paper ordered. This constitutes a valid and enforceable contract. T/F

False

For a promise to constitute consideration, the promise must impose an obligation on the person making it. T/F

False

Generally, it is the activity itself, not is effect, which is the most important element in deciding whether the Sherman Act has been violated. T/F

False

Which of the following is true of a binding contract?

It is created when an offeree accepts an offer that has been properly communicated.

Which of the following is true of a valid offer?

It is seriously intended.

Which of the following best defines the tort of interference with a contract?

It occurs when a business relationship has been formed, and in some way a third party intentionally causes one party to end the relationship.

Which of the following is true of quasi-contracts?

It prevents the unjust enrichment of a party.

Which of the following is true of the doctrine of promissory estoppel?

It requires the promisor to reasonable expect the promise to induce action by the promisee.

Which of the following is true of The Water Pollution and Control Act?

It sets limits on discharges, including pollutants into sewer systems.

Maya, an elderly lady, wanted to sell her house. She offered the house to Lily, a friend. However, before the house deeds were transferred, Maya passed away. Which of the following scenarios is legally acceptable in such a case?

Lily must consider the offer automatically revoked and void.

Remedies

Once the court has decided the winner, awards called damages. Four types of Damages are: 1. Compensation - Cash 2. Consequential - Reasonably predictable or foreseeable 3. Nominal - Win the battle but lose the war, winning $1.00 4. Punitive - Not related to injury

Consideration

One of the essential elements of a contract. Anything of value to be exchanged for performance of services or exchange of goods.

To give some power to congress, but so little that congress couldn't mess with American businesses.

Original purpose of Commerce Clause

Anything tangible and mobile. Something that is touchable like a car or something that can be pulled behind. Ex: Mobile home, trailer, etc.

Personal Property

The legal duty to do what is necessary to protect the health and welfare of their citizens, including protecting their economic vitality. Ex: Agriculture in CA, Oranges in FL and Fish in Maine.

Police Power of State

Liquidated Damages

Prearranged or predetermined compensatory damages, an amount that you and another person choose to include in a contract in the event of a breach to avoid a big court trial. Must be a reasonable amount that is agreed to and the court will use the number agreed to in contract.

Land and attached buildings, anything attached and fixed to land.

Real Property

In some contracts, an arbitration clause might be included to provide that, in the event of a dispute, the parties will submit the dispute to arbitration rather than litigate the dispute in court. Is this clause enforceable?

Sometimes, depending on what type of contract it is.

Complaint

State what happened between plaintiff and defendant, what relief you're seeking, spells out the charges, the result of a this is a summons is issued. What is this document called?

A right to privacy is not specifically guaranteed in the US Constitution

TRUE

A state law that substantially impinges on interstate commerce is unconstitutional

TRUE

Common Law develops from rules of law announced in court decisions

TRUE

Congress can regulate any activity that substantially affects commerce

TRUE

In most states, the same courts can grant legal or equitable remedies

TRUE

Law is a body of enforceable rules governing relationships among individuals and between individuals and their society

TRUE

The doctrin of stare deciss obligates judges to follow precedents established within their jurisdictions

TRUE

Under a Massachusetts state statute, large wineries could sell their products through wholesalers or to consumers directly, but not both. Small wineries could use both methods. Family Winemakers of California filed suit against the state, arguing that the restriction gave small wineries a competitive advantage in violation of the U.S. Constitution. The court agreed that the statute was in conflict with the Constitution. Which source of law takes priority?

The U.S. Constitution because it is the supreme law of the land.

Forbearance

The act of restraining from using a legal right. A contract can be an agreement to not do something. This is forbearance because it is an agreement to withhold use of legal right to something.

A court will set aside an arbitrator's award only in the event of which of the following? (check all that apply)

The arbitrator's conduct substantially prejudiced the rights of one of the parties. The award violates an established public policy. One of the parties did not like the award. The arbitrator exceeded his or her powers.

An enforceable contract is made by an adult with a minor. Which of the following is most likely to hold true in this case?

The contract is enforceable against the adult but not against the minor.

Which of the following is true of appeals made to higher courts?

The decision of the appellate court is binding on lower courts.

In a situation where an injured party in an accident is partly to blame for the accident, which of the following is most likely to be true under a contributory negligence system?

The injured party cannot recover any damages because it is partially negligent in the case.

Legal Capacity

The threshold mental capacity and legal ability to enter into a contract and be bound by that contract. Capacity: Ability to be held responsible with what you get yourself into. Two part test~ 1. Did you know a contract was discussed? 2. Did you know the general nature of the contract? Creates the presumption of capacity established.

Which of the following statements is true of federal district courts?

They hear all criminal cases that involve a violation of federal law.

What is the chief function of the courts?

They interpret and apply the law from whatever source to a given situation.

Oral Defamation

This must be communicated to any 3rd party to be considered defamation. The 3rd party does not need to understand what you are saying at all. The act of communicating the statement to the third party is the crime.

Mediation

This type of ADR is not binding and involves third party to get two parties to come to a meeting of the minds. What is it?

When parties to a contract mutually agree to cancel an old contract and replace it with a new one, which of the following is true?

To be enforceable, there must be added features in the new contract benefiting both parties.

Promissory Estoppel

To stop someone from backing out of a promise and when a promise is not a contract, but it is an enforceable promise. No mutual assent and no consideration. To prevent SERIOUS INJUSTICE when someone makes a promise that by itself does not add up to an enforceable contract, but on which someone else relies on to his/her detriment. **Also known as Doctrine of Reliance: Detrimental reliance: reasonable reliance and detriment or harm in economic terms.

A contract for the sale of goods is governed by the Uniform Commercial Code. T/F

True

A minor, upon reaching the age of majority, must ratify none or all parts of a contract. T/F

True

Commerce within a state can also be regulated by the national government as long as the commerce substantially affects commerce involving more than one state.

True

Consideration distinguishes mere agreements from legally enforceable obligations. T/F

True

Each state is part of the federal court system and has a state court system. T/F

True

For an act to be established as a tort of injurious falsehood, the false statements of fact must be communicated by the defendant to a third person. T/F

True

Many federal laws regulating business do so based on the Commerce Clause of the U.S. Constitution. T/F

True

The Racketeer Influenced and Corrupt Organizations Act provides for the recovery of three times the damages suffered by an injured party as a result of its violation. T/F

True

Megan, a resident of Ohio, runs a red light in Texas and hits Sarah, a Texas resident. Sarah files suit against Megan. The statute that allows the Texas court to exercise jurisdiction over Megan is called a(n)

long arm statute.

Ryan, a college student, intends to sell his car. He contacts his friend Luiz and inquires whether he is interested in buying the car. Luiz finds the quoted price reasonable and buys the car from Ryan. In this scenario, Ryan is the ___.

offeror

The purpose of antitrust laws is to:

promote competition among businesses.