business law exam 1
Niles enters Omelet Café and points a gun at the cashier Pico. Niles forces Pico to open the register and give him all the money. Niles will most likely be charged with
Robbery
A judicial decision on the constitutionality of an executive order that limits certain state actions is
Within the power of judicial review
Administrative law includes:
the rules, orders, and decisions of a government agency
The offeror must have a serious intention to become bound by the offer in order for the offer to be effective.
true
A defendant cannot be liable for negligence unless he or she intended to harm the plaintiff.
False
Courts always permit contracts to be avoided due to intoxication.
False
Judicial review is the process through which Congress approves or rejects judicial appointments.
False
The U.S. Constitution divides powers among four branches of government.
False
The law does not prohibit the creation or shipment of counterfeit labels, unless they are attached to products.
False
The seller or lessor has a right to attempt to "cure" a defect when the time for performance has expired.
False
The standard of reasonable care for a professional is the same as that of an ordinary person
False
The surety is not liable for the debt of the principal.
False
When there is a direct conflict between a federal law and a state law, both laws are rendered invalid.
False
A federal form of government is one in which the national government shares sovereign power with
The states
The automatic stay applies to all or part of the debtor's consumer debt.
True
Typosquatting is where cybersquatters register names that are misspellings, or popular brand names, to get high internet traffic.
True
Ross registers a domain name—sweetfriedpotatos.com—that is a misspelling of a popular brand of sweet fried potatoes that has a domain name of sweetfriedpotatoes.com. This is an example of:
Typosquatting
The crime victim must bring the case against the defendant.
false
An equitable remedy requiring exactly the performance that was specified in a contract; usually granted only when monetary damages would be an inadequate remedy and the subject matter of the contract is unique is called
Specific perfomance
Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as
Statutory law
With respect to what society will tolerate, a company's compliance with the law, and no more, is
The moral minimum
The term checks and balances refer to the system under which
The powers of government are divided among its branches, each of which exercise a check on the actions of others.
A lack of voluntary consent can be used as a defense to the contract's enforceability.
True
A landlord is expected to use reasonable care to ensure that his or her tenants are not harmed in common areas.
True
Contract law distinguishes between promises that create only moral obligations and promises that are legally binding.
True
Liquidation under Chapter 7 of the Bankruptcy Code is often referred to as an ordinary, or straight, bankruptcy.
True
Merely advertising a product online is never enough to avail your company to the jurisdiction of that state.
True
Minimum contact means that the defendant must have enough of a connection to the state for the judge to conclude that it is fair for the state to exercise power over the defendant.
True
Only if a state legislature passes a statute, does that law become part of the relevant state code of laws
True
State governments do not have any authority to regulate interstate commerce.
True
Tapping into a competitor's computer to obtain confidential business data constitutes a theft of trade secrets
True
The Internet Corporation for Assigned Names and Numbers (ICANN) oversees and sells the distribution of domain names.
True
The authority of a court to hear and decide a specific case is called jurisdiction.
True
The effectiveness of an industry code of ethics is partly determined by the commitment of the industry, or company leadership to enforce it.
True
The first ten amendments to the U.S. Constitution are commonly known as the Bill of Rights.
True
The purpose of a tariff is to indirectly cause some of their consumers to purchase more domestically manufactured goods.
True
The system of checks and balances in the U.S. Constitution allows each branch of government to limit the actions of the other branches.
True
Top management's behavior in a company sets the ethical tone for the workplace.
True
When someone suffers injury because of another's failure to live up to a required duty of care, negligence occurs.
True
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
International law is formed as result of international customs, treaties, agreements, and organizations
True
Many states require the sender of an e-mail ad to tell recipients how to opt out of receiving future e-mail ads from the same sender.
True
The bankruptcy trustee sells the nonexempt assets and distributes the proceeds to creditors.
True
The prohibition against double jeopardy means that once a criminal defendant is acquitted (found "not guilty") of a particular crime, the government may not retry that defendant for the same crime.
True
Cynthia is the chief financial officer of Digital Corporation. In that capacity, when she is unsure whether a certain business action is legal, she should act
Honestly and responsibly
statutory law
Law passed by the U.S. Congress or state legislatures
Construction Company has a claim against Diners Café to satisfy a debt that takes priority over other claims against the same property. This is
A lien
Andy causes a disturbance at Brew Pub. He is arrested and charged with disorderly conduct, a crime punishable by imprisonment up to one year. This crime is
A misdemeanor
Ness, a broker, advises Ollie to invest in Penny Stock, Inc. When the share price of Penny's stock drops, Ollie accuses Ness of fraud, claiming reliance on the broker's advice. The reliance that gives rise to liability for fraud requires
A misrepresentation of the fact knowing that it is false
Wendy works as a weather announcer for a TV station under the character name Weather Wendy. Wendy can register her name as:
A service mark
Federal, state, and local governments may establish an administrative agency to perform a specific function.
Administrative agency
According to the UCC, a merchant is
All of these choices
Dana downloads music into her computer's cloud memory without authorization. This is:
Copyright infringement
Article 2 sets forth the requirements for
Sales contract
Kent tries to start his car with no success. He yells that he will sell the car to anyone for $10. Livy, a passerby, hears Kent's yell. This is not an effective offer because it lacks
Serious Intent
Rue obtains permission from Saga Corporation to use the firm's game app, Boggle, on their mobile devices. Rue does not obtain any ownership rights in the app. This is an example of:
a license
Common Law
a system of law based on precedent and customs
Interrogatories consist of oral testimony given by a party under oath.
Deposition
A court cannot dismiss a debtor's petition under Chapter 13 even if the circumstances indicate bad faith.
False
A general patent gives the inventor the exclusive right to make, use, and sell an invention for a period of thirty years.
False
A statute is a secondary source of law. It is a primary source of law
False
An unauthorized reproduction must be exactly the same as the original, and reproduce the original in its entirety, for infringement of copyright to occur.
False
Any contract that is not in writing is unenforceable.
False
E-signatures are never accepted.
False
Ethics simply looks at whether a decision (or act) is legal or illegal.
False
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
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
Insider trading is the purchase or sale of securities on the basis of information that has already been made available to the public.
False
Mechanic's Lien is a statutory lien on automobiles to ensure payment to a person who has performed work for the repair or improvement of that vehicle.
False
Only Congress may pass a law in conflict with the Constitution.
False
Only one party entering into a contract must be competent for a valid contract to exist
False
Punitive damages are generally awarded in lawsuits for breach of contract.
False
Any contract can be discharged by agreement of the parties.
True
Blackmail or extortion to induce consent to a contract constitutes duress.
True
Subject matter jurisdiction refers to whether a court is located in the area in which the plaintiff or defendant live.
False
Beverly creates a website to post threatening messages about celebrities. Under the First Amendment, these messages are most likely protected
None of the time
With respect to debtors, the main goal of bankruptcy law is to
Provide a new start to creditors' claims
Opal is injured and her property is damaged when a truck with defective brakes careens off an adjacent highway and crashes into her home. If Opal brings a successful tort action against the truck's owner for gross negligence, she may be awarded punitive damages to
Punish the defendant and deter others from similar wrongdoing
Rancho West owes Silo & Barn, Inc., $5,000 on their contract, but refuses to pay. To collect, Silo files a mechanic's lien, under which security for the debt is represented by
Rancho's real estate
Common law is a body of law developed from judge's decisions in legal controversies.
True
When a conflict arises between a common law contract rule and the state statutory law based on the UCC
The UCC controls
Administrative Law
The body of law created by administrative agencies (in the form of rules, regulations, orders, and decisions) in order to carry out their duties and responsibilities.
Venezuela seizes the assets of World Oil, Inc., a U.S. firm. World Oil's recovery from Venezuela in a U.S. court may be prevented by
The doctrine of sovereign immunity
Article VI of the Constitution provides that the Constitution, laws, and treaties of the United States are "the supreme Law of the Land." This article, commonly referred to as
The supremacy clause
When the original parties to the contract agree that the contract performance should be rendered to or directly benefit a third person, the third person becomes an intended
Third party beneficiary to the contract
Brewed Beans Inc. makes and sells "CoCoCafe," a chocolate-flavored coffee. Darkroast Inc. later markets a similar drink under the name "KoKoKafe." This is most likely:
Trademark Infringement
A U.S. court will likely uphold a contract created in the United Kingdom, because the U.K.'s laws are generally compatible with those of the United States
True
A constitution is a primary source of law.
True
A contract entered into by a minor is voidable at the option of the minor.
True
A crime is punishable, in some cases, by death.
True
A false statement about a person's business can give rise to liability for defamation.
True
A federal court will apply federal law when hearing a case involving a federal question.
True
A felony must be punishable by a minimum of one year in prison.
True
Constitutional Law
law that involves the interpretation and application of the U.S. Constitution and state constitutions
Tyler, a citizen of Utah, files a suit in a Utah state court against SeaCoast Sales Corporation, a Washington state company that does regular business in Utah. Utah state court would have jurisdiction over SeaCoast because of:
long-arm and minimum contacts jurisdiction.
Company codes are the same as laws.
False
Foreseeability is the test for proximate cause
True
Global businesses need to be conscious of the impact of different religious principles and cultural norms on ethics.
True
Compliance with the law is not always sufficient to determine if a decision or behavior is "right" because
Being legal does not necessarily mean it is ethical.
Obtaining a court order to close down the domain name of a website is an effective tool that U.S. officials use to combat online sales of
Counterfeit Goods
Berry Good LLC registers its trademark with the U.S. Patent and Trademark Office and uses it to market a distinctive line of ice cream products. Crabapple Inc. uses the mark without Berry's consent to sell imitation frozen desserts. Berry has a cause of action against:
Crabapple Inc.
The term moral minimum is best defined as the highest degree of ethical behavior expected of a firm
False
The Montana legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by:
No one
Macy offers to sell his fitness watch for $50 to Nona. Nona promises to pay Macy the price. Later, they exchange the watch for the funds. A contract was created when
Nona promised to pay for the watch
Corporate "citizenship" involves making decisions beyond just maximizing profits and dividends.
True
Crimes are offenses against society as a whole
True
Cybersquatting is illegal if a domain name is identical to the trademark of another, as well as if the name is confusingly similar
True
Even if it conflicts with the U.S. Constitution, a state constitution is supreme within the borders of that state.
True
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
If no harm or injury results from a given negligent action, there is nothing to compensate.
True
In a case involving Internet transactions, jurisdiction can be met by a state through minimum contacts if the company conducts substantial business in that jurisdiction through online contracts or sales.
True
In a criminal case, the state must prove its case beyond a reasonable doubt
True
In the United States, the law consists of written laws and court decisions.
True
Intellectual property is property resulting from intellectual, creative processes, and the products of one's mind
True
4 primary sources of american law
constitutional law, statutory law, administrative law, common law
