BUSI 2301 Business Law Exam
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
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
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.
Which of the following statements is most likely to be true of administrative agencies?
Administrative agencies have the power to implement laws.
What is a wobbler?
An offense that can be either a felony or a misdemeanor.
A person licensed to represent others in court is called a(n):
Attorney
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
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.
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
A written request to a court to settle a dispute is called a(n):
Complaint or petition
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
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
Explain why we have laws.
Establish a framework in which society can operate as smoothly as possible to avoid disputes.
A state administrative agency affects businesses throughout the country. T/F
False
A summons is a way for parties to obtain unprivileged information from another party prior to trial. T/F
False
A trademark must be registered before the holder is afforded any rights or protections for the mark. T/F
False
All agreements are contracts. T/F
False
An antitrust violation occurs when a business firm seeks to have cooperation within its firm to diminish competition. T/F
False
Felonies refer to crimes that are usually punishable by just a fine. 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
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
It is simpler to file a suit in a court of record than in an inferior court. T/F
False
Most business people prefer making oral contracts regarding matters of great importance. T/F
False
Probate courts handle divorce and child custody cases. T/F
False
Regulatory agencies are also called social regulatory agencies. T/F
False
The law states that a unilateral contract can be formed when performance is started. T/F
False
The legal system of the United States is based primarily on the French legal system. T/F
False
The most common type of relief that courts of equity provide is monetary damages. T/F
False
There is no difference between a void contract and an unenforceable contract. 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
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
Kenneth was sentenced to six years in prison for forgery. In this case Kenneth has committed a(n)
Felony
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 government regulation business?
Government regulations are used to eliminate abuse in business.
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.
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.
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 The Water Pollution and Control Act?
It sets limits on discharges, including pollutants into sewer systems.
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
___ laws are those that state how parties are to go forward with filing civil actions and how these actions are to be tried.
Procedural
A probate court is an example of a(n):
Special court
Which source of law responds more to the changing demands of the people?
Statutes
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.
Which of the following is true of a jury trial procedure?
The jury is selected before an opening statement is made by the attorney.
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 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.
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.
Explain the function of the courts.
To interpret and apply the law
A chief officer is known as a judge in a state court of record as well as in a federal court. T/F
True
A contract for the sale of goods is governed by the Uniform Commercial Code. T/F
True
Administrative agencies primarily set policy through the issuance of rules and regulations. 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
Appellate courts include courts of appeals and supreme courts. 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
Government regulates business by means of antitrust laws that seek to promote competition among businesses. T/F
True
In a democratic society, laws generally reflect the ethical view of the majority. T/F
True
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
Many federal laws regulating business do so based on the Commerce Clause of the U.S. Constitution. T/F
True
One may have rights and obligations imposed by law when no real contract exists. 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
Private citizens are entitled to sue on the basis of the Water Pollution and Control Act. T/F
True
Statutes are easier to amend than constitutions. T/F
True
The Racketeer Influenced and Corrupt Organizations Act includes civil sanctions as well as criminal ones. 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
The Robinson-Patman Act prohibits sales at unreasonably low prices in order to eliminate competition. 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 Water Pollution and Control Act is responsible for preventing the illegal discharge of pollutants into interstate and navigable waters. T/F
True
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 legal term for one party benefiting unfairly at the expense of another is unjust enrichment. T/F
True
The location where a case is to be tried is known as a venue. T/F
True
The offering of money, entertainment, or anything of value as a corrupt payment constitutes a bribe. 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 system of equity evolved to provide judicial relief in cases where no adequate remedy at law existed. T/F
True
The use of rogue programs to produce abnormal computer behavior is an example of computer trespass. T/F
True
When a contract is required to be sealed, a substitute for an actual seal may be used. T/F
True
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.
Regulatory agencies can use their licensing power to:
allow a business to enter the filed being regulated.
The failure of a party to perform the obligations assumed under a contract is known as a(n):
breach of contract
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.
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
A __ contract must be in a special form or be created in a certain way.
formal
Activities that are illegal regardless of their effect are known as __
per se violations.
The purpose of antitrust laws is to:
promote competition among businesses.
To recover for a tort based on negligence, the plaintiff must show:
the breach of the tortfeasor's duty to the injured party.
Disgorgement of profits refers to:
the repayment of any profits received as a result of corrupt payments.
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
