Business Law and Ethics

_____ is an intentional tort which involves reasonable belief that threat of offensive bodily contact is imminent.

Assault

A(n) ______ is a contract between the seller and the carrier of goods.

Bill of Lading

A ______ is a rejection of an original offer and the simultaneous making of a new offer.

Counteroffer

The ______ requires equal pay for work of equal value for women and men.

Equal Pay Act

A consumer law is a statute or administrative rule serving to protect business interests.

False

A copyright is an exclusive right to make, use, or sell an invention for a specified period.

False

A legal entity formed by issuing stock to investors, who are the owners, is a limited partnership.

False

A patent is a word, phrase, logo, or other graphic symbol used by a manufacturer or seller to distinguish its product or products from those of others.

False

A quasi contract is an agreement by the parties to prevent unjust enrichment.

False

A settlement is an oral hearing of the issues by a judge alone, or by a judge and jury to render a judgment on the matter.

False

A trial occurs when the parties agree to resolve their dispute out of court.

False

According to the doctrine of employment at will, only the employer, and not the employee, may choose to terminate the employment relationship at any time.

False

Administrative agencies lack the authority to establish rules that have the force of law.

False

All employees are agents of their employers, and all agents are employees.

False

An S corporation is an unincorporated business that is taxed like a partnership with the limited liability of a corporation.

False

Battery and assault have the exact same meaning about an intentional tort.

False

Constitutional law are laws enacted by legislative bodies at any level of government, such as statutes passed by Congress or by state legislatures.

False

Legality insurance is a contract in which an insurance company agrees, in exchange for a price, to pay damages on behalf of a person who incurs liability.

False

NAFTA stands for the Native American Free Trade Agreement.

False

The Fifth Amendment states that "Congress shall make no law...abridging the freedom of speech, or of the press."

False

The word tort means right.

False

There is no difference between an employee and an independent contractor.

False

There is only one correct answer for each ethical dilemma.

False

Transferring funds from one bank account to another, changing students' grades in college computer files, and crediting accounts for purchases made are not instances of unauthorized use of computers.

False

______ is the act of fraudulently making or altering a note, check, draft, or some other document, causing the financial loss of another.

Forgery

Pat, age 65, is driving down Main Street when he suffers the first seizure of his life. He loses control of his vehicle and runs into three people on the sidewalk. Which statement is true?

He is not liable for a negligent tort.

Which of the following consists of the fruits of one's mind?

Intellectual property

The authority or power of a court to hear cases, as granted by a constitution or legislative act, is known as the court's ______.

Jurisdiction

Which of the following is not true regarding the agency relationship?

People must be trained in the field involved in order to qualify as agents.

One individual carrying on business on his or her own is known as ______.

Sole Proprietorship

A business decision can be legal but unethical.

True

A contract that arises from the conduct of the parties is an implied contract.

True

A drawee is the party ordered to pay a draft or check, such as a bank or financial institution.

True

A power of attorney is a document that gives an agent authority to sign legal documents on behalf of the principal.

True

A tort, in contrast to a crime, is a violation of the rights of an identifiable individual or business that has been wronged either intentionally or by negligence.

True

Alternate dispute resolution would includes Negotiation, Arbitration and Mediation.

True

An appeal must be requested within a certain time limit, usually within 30 days after the trial court renders its decision.

True

An invention may be considered a trade secret.

True

Arbitration is when the parties use a private decision maker, the arbitrator, and the rules of procedure are considerably more relaxed than those that apply in the courtroom.

True

At trial, the first order of business is to select a jury.

True

Bankruptcy is the statutory procedure, usually triggered by insolvency, by which a person is relieved of most debts and undergoes a judicially supervised reorganization or liquidation for the benefit of the person's creditors.

True

Copyright is the protection of the expression of a fixed form that expresses ideas.

True

Corporate income is taxed twice.

True

Defamation is a false and derogatory statement in spoken or written form.

True

In a partnership, income of the business is personal income and business losses can be deducted from taxes.

True

Intentional torts occur when a person intentionally acts in some ways.

True

Judicial decisions are law unless they are revoked later by a new statutory law.

True

Simply offering a better deal is not enough to create liability for intentional interference with contract when only a prospective contract exists.

True

The right to own and enjoy assets is known as property rights.

True

Under capitalism, maximizing profits comes from a focus on higher purposes and harmonizing the interests of various stakeholders.

True

_____ is the method of discharge which involves making minor changes to the terms of a contract and providing fresh consideration.

Variation

The method of termination of an offer occurring when the offeree responds with a willingness to enter into a contract but on different terms is _____.

counter offer

Dividends are ______.

declared by the directors and represent capital repayments not tax-deductible by the corporation

The threat of legal prosecution and penalties ______.

does not eliminate all unethical practices

If an agreement imposes a legal obligation, it is a(n) ______.

enforceable contract

In the United States, the federal Constitution gives______.

expressed powers to the federal government

A(n) ______ is a business arrangement by which two or more individuals agree to share in all assets, profits and financial and legal liabilities of a jointly owned business structure.

general partnership

A person who gains unauthorized access to computers, either for mischief or with criminal intent, is called a(n) ______.

hacker

An implied contract ______.

is one inferred from the actions of the parties

The form of ownership involving two or more people having an equal undivided interest in the property with the right of survivorship, is ______.

joint tenancy

The spreading of damaging statements in written form is known as ______.

libel

All but one of the following elements is required of an enforceable contract. The exception is ______.

malafide intention

A term that is used in cases involving the negligence of professionals is _____.

malpractice

A term that is used in cases involving the negligence of professionals is ______.

malpractice

An agreement in which the seller agrees not to begin or operate a similar business within a certain geographic area, or within a specified period of time, is known as a(n) ______.

non-compete agreement

All of the following are essential to negotiable instruments except the fact that it must be ______.

on forms provided by a bank

A limited partner will be deemed by the courts to be a general partner if he or she ______.

participates in the overall management of the business

A written note or letter in which one person promises to pay a certain amount of money to another at a definite time is known as a ______.

promissory note

The Equal Credit Opportunity Act makes it illegal for creditors to deny credit to individuals on the basis of ______.

race, religion, national origin, color, sex, marital status, or age

The remedy for breach which compensates the victim for the time, effort, and expenditure wasted in preparation for performance of the contract is _____.

reliance damages

All but one of the following organizational forms have limited liability. This exception is the ______.

sole proprietorship

Today's business professionals involved in global markets are sometimes faced with ethical predicaments because of different ______.

standards of ethics

The practice of relying on previous decisions is known as ______.

stare decisis

The laws passed by Congress and by state legislatures are called ______.

statutes

A company must comply with tax regulations, such as the restriction that there are a limited number of shareholders, in order to qualify as a ______.

subchapter S corporation

The Federal Trade Commission, like most administrative agencies of the federal government, is part of ______.

the executive branch of government

In a strict liability tort, it is necessary to prove that ______.

the specific act occurred

A distinctive, nonfunctional feature, which distinguishes a merchant's or manufacturer's goods or services from those of another, is known as a _______.

trademark

Under the appropriate legislation, the longest-running protection is provided to registered ______.

trademarks

The common defenses to charges of defamation are ______.

truth and privilege

When a patent is issued for an object, it gives its holder the exclusive right to produce, sell, and use the object of the patent for ______ years from the filing date.

twenty

The following are types of torts a _____.

wrong or injury to another, other than a breach of contract

The legal ability to enter into a binding agreement is known as ______.

contractual capacity

Under the current copyright law, a created work is protected for the lifetime of the creator plus _____.

70 years

Congress created the Federal Trade Commission (FTC) through the Federal Trade Commission Act of ______.

1914

The person against whom a lawsuit is brought or who is charged with a violation of the law is called a ______.

Defendant

In a(n) ______ relationship, the agent is authorized to act for and on behalf of the principal, who hires the agent to represent him or her.

agency

David works for Data Systems Ltd. and may be liable for larceny if he steals ______.

any of the above

You find a laptop in the guest parking lot of your employer's property. If you cannot find the rightful owner of the laptop, the laptop will ______.

belong to the employer because it was found on the public part of your employer's property

A ______ is the nonperformance of a contractual duty.

breach of contract

Entering into a contract with persons of legal age and normal mentality is considered within the element of _____.

capacity of the parties

A ______ makes clear that the company expects its personnel to recognize the ethical dimensions of corporate policies and actions.

code of ethics

The term "holding out" refers to ______.

conduct where the principal represents that someone has authority to act as an agent and bind him or her

An employer makes significant changes to a contracted employee's job status or responsibility without their consent. This constitutes ______.

constructive dismissal