business law prep

The federal government has the power to regulate commercial activities among the states under

Commerce Clause

Bankruptcy relief is provided under state, not federal, law.

False

The U.S. Constitution is the basis of all law in the United States

True

A manufacturer does not need to inspect and test any purchased components used in the final product to avoid product liability

false

A person who wrongfully hurts another's good name or reputation orally may be liable for libel

false

A product made in conformity with a manufacturer's design specifications is not considered defective regardless of a flaw in the design

false

Agency relationships cannot exist outside employment, so agency law has a narrower reach than employment law

false

Bribing foreign officials to obtain favorable business contracts is not a crime

false

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

false

If a party is already bound by contract to perform a certain duty, that duty can serve as consideration for a second contract.

false

In a case involving Internet transactions, jurisdiction is proper only when the defendant conducts substantial business in the jurisdiction online

false

In a criminal case, the defendant must convince the court that based on the evidence it is more likely than not that the defendant is not guilty

false

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

false

In general, courts question the adequacy of consideration

false

In posting statements or photos to a social media site, a person clearly has a reasonable expectation of privacy.

false

Normally, a court will evaluate the adequacy of consideration based solely on the comparative value of the things exchanged as part of the agreement

false

Only the United States Supreme Court exercises the power of judicial review

false

The U.S. Constitution divides powers among four branches of government

false

The manufacturer of a product may incur liability when a defect causes injury to a user but not when the defect causes property damage to a bystander

false

The standard measure of compensatory damages is the value of the breaching party's actual performance

false

The study of business law does not involve an ethical dimension

false

The terms of service that a person agrees to before loading an app on a phone are not truly legally binding

false

Those who do not make goods, but only sell or lease them, cannot be held liable for harm caused by those goods to a consumer

false

To bring a product liability lawsuit on the ground of misrepresentation, the plaintiff must not have relied on the misrepresentation

false

Under the doctrine of strict liability, persons are liable only the results of their intentional acts or their failure to exercise due care

false

When both parties to a contract are mistaken about the same material fact, a unilateral mistake has occurred

false

an accord and satisfaction is an agreement in which one party gives up the right to pursue a legal claim against another party

false

an expression of opinion can indicate an intent to enter into a binding agreement

false

privity of contract establishes the basic principle that contracting parties have a right to privacy in the information expressed in their contracts

false

Without permission, Race Runners Inc. uses a trademark that is similar to the registered mark of Swiftfoot, Inc. This use of the mark constitutes trademark dilution

if the use diminishes the distinctive quality of the mark

A contract is substantially performed when one party receives most of the benefits promised in the deal.

true

A debtor who makes false statements under oath may be denied a discharge of his or her debts in the bankruptcy proceeding

true

A false statement about a person's business can give rise to liability for defamation

true

Acceptance may consist of words or conduct.

true

An executed contract is one that has been fully performed by both parties to it

true

An insurance policy cannot be assigned if the assignment will significantly alter the risks to, or the duties of, the insurer

true

Any time one party's allegedly wrongful conduct causes injury to another, an action may arise under the law of torts

true

By using agents, a principal can conduct multiple business operations simultaneously in various locations.

true

Company codes of conduct outline company policies on particular issues and how employees are expected to act

true

Consideration is the value given in return for a promise or in return or a performance

true

If a condition to a lease for university housing that the tenant must be a student is not satisfied, the landlord's obligations under the lease are discharged.

true

Intent can be transferred when an individual intends to harm one individual but unintentionally harms another

true

Many states require the sender of an email ad to tell recipients how to opt-out of receiving future email ads from the sender

true

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

true

Once performance has been tendered, the party making the tender has done everything possible to carry out the terms of the contract.

true

Some business processes can be protected as trade secrets

true

Sometimes, when a buyer breaches a contract for a sale of goods and the seller has not yet produced the goods, the seller can recover the lost profits.

true

The UCC promotes commerce by simplifying and streamlining commercial transactions.

true

The basic duty of a bankruptcy trustee in a Chapter 7 proceeding requires that the trustee be accountable for administering the debtor's estate.

true

The contracts entered into by a minor are voidable at the option of that minor

true

The terms of a contract must be sufficiently definite for a court to determine the amount of damages to award

true

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

true

When someone suffers injury because of another's failure to live up to a required duty of care, negligence occurs

true

When the performance of a contract depends on the personal skill of the obligor, a delegation of the duty is prohibited.

true

contracts entered in by mentally incompetent persons may be disaffirmed

true

in effect, a counteroffer converts the original offeror into an offeree with the power of acceptance

true

If what is written in a contract is clear, a court will enforce the contract according to its obvious terms.

true/false