Business Legal Environment Midterm
Under a construction contract that requires a builder to meet certain specifications, complete performance is required to avoid material breach.
True
Under the Federal CAN-SPAM act, it is prohibited to send unsolicited commercial e-mail to randomly generated e-mail addresses.
True
Broadband Inc., an Internet service provider, supplies information to the Federal Trade Commission concerning possible unfair or deceptive ads originating in a foreign jurisdiction. Which federal law would apply in this case?
U.S. Safe Web Act
Under the U.S. Constitution, Congress has the power to regulate
every commercial enterprise in the United States.
Malwareis a hacker whose purpose is to create a serious negative impact.
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
The UCC is a uniform law that most states have adopted to govern commercial transactions.
False
The crime victim must bring the case against the defendant.
False
The first element of proving fraud in contracting is to show that the innocent party is not easily fooled.
False
The offeror can revoke the offer only by expressly repudiating it.
False
Under federal law, banks, and other financial institutions are required to report currency transactions involving more than $20,000.
False
Under the Lanham Act, the federal law protecting trademarks, having a domain name that is identical or confusingly similar to the trademark of another is one element of a claim of illegal cybersquatting.
False
Under the objective theory of contracts, a contract is not enforceable without a clearly defined objective.
False
When there is a direct conflict between a federal law and a state law, both laws are rendered invalid.
False
Bob wants to sue XYZ corporation, his employer, for violating his civil rights. He states their employer procedures do not apply equal rights. What court would Bob bring suit?
Federal court
The ___________________________, for example, is an agency within the U.S. Department of Health and Human Services.
Food and Drug Administration
If a condition to a lease for university housing that the tenant must be a student is not satisfied, then the landlord's obligations under the lease are discharged.
True
If it were not possible to assign contract rights, many businesses could not continue to operate.
True
In effect, a counteroffer converts the original offeror into an offeree with the power of acceptance.
True
In quasi-contract, the party who is seeking recovery must show that the other party who received a benefit, would be unjustly enriched if they were allowed to retain the benefit without paying for it.
True
Before either party to a contract has a duty to perform, one of the parties may refuse to perform that party's contractual obligations. This is referred to as an anticipatory repudiation.
True
Criminal liability for the piracy of copyrighted materials extends to persons who exchange unauthorized copies for profit, as well as those who share without seeking profit.
True
For a nonbreaching party to recover consequential damages, the breaching party must know (or have reason to know) that special circumstances will cause the nonbreaching party to suffer an additional loss.
True
It is most often companies, rather than courts or legislatures, that define the privacy rights of online users.
True
The Statute of Frauds operates as a defense to the enforcement of an oral contract for the sale of land.
True
The U.S. Constitution provides safeguards that apply not only in federal, but also in state courts.
True
The authority of a court to hear and decide a specific case is called jurisdiction.
True
The common law is a body of law developed from judicial decisions.
True
The greater the employer's control over the work, the more likely it is that the worker is an employee.
True
The offeree must accept the offer without adding or changing any terms.
True
To maintain a claim of trademark dilution, there must be proof that consumers are likely to be confused by a connection between the unauthorized use and the actual mark
True
Typosquatting is where cybersquatters register names that are misspellings, or popular brand names, to get high internet traffic.
True
Ethics has to do with how a businessperson applies this(ese) in their business decisions:
moral principles
A __________________________________ will be granted only if there are no genuine questions of fact, and the sole question is a question of law.
motion for summary judgment
If Ethan carelessly bumps into Susan and she falls and breaks an arm as a result, Ethan's actions will constitute
negligence
Clark hires Dell, a real estate broker, to sell his beach house. The house is destroyed in a storm before it can be sold. Dell is Clark's agent
no more
Mobile Device Company (MDC) discovers that defamatory statements about its products are being posted in an online forum. NuView Inc., the Internet service provider, whose users are posting the messages, can disclose the poster's identity:
only when ordered to do so by a court
Fara hires Gil, a real estate broker, to act as her agent to sell her land for $150,000. Before the land is sold at the stated price, oil is discovered beneath it, causing its market value to increase considerably. The agreement between Fara and Gil is likely
terminated by operation of law.
One party wants to file a suit against another. For a court to hear the case,
the court must have jurisdiction over the parties, as well as the subject matter at issue.
A federal court will apply federal law when hearing a case involving a federal question.
true
A libelous statement has the quality of permanence, so it can be circulated widely such as through social media.
true
An electronic court filing system allows parties to file litigation-related documents via electronic means in most states.
true
Luis hires Mieko to act as his agent to buy Ngoc's Southeast Asian Café. Luis tells Mieko to reveal only that she is buying the restaurant on behalf of a third party, without telling Ngoc's seller who that third party is. Luis is
a partially disclosed principal.
Power, Inc., is a corporation engaged in the business of producing, refining, and distributing energy resources. With respect to the firm's managers, legal concepts can be useful for Power's
accounting and finance manager.
To test computer security and conduct encryption research, Solutions Inc., was hired by Tech Corporation to circumvent the encryption software and other antipiracy protection of Tech Corporation's software. Under the Digital Millennium Copyright Act, this is: (choose all applicable answers)
allowed under the research exception of the act. a "fair use" exception to the provisions of the act.
Rene contracts with Scot to pay him $5,000 for repairs to Rene's lake cabin. After Scot performs, Rene tells him that she cannot pay him in full immediately. They sign an agreement in which Rene promises to pay $2,500 now, instead of $5,000 later. This is
an accord and satisfaction.
Jay transfers downloaded musical recordings, without the copyright owners' authorization, from his phone to his friends' phones. Jay does not charge his friends for his "service," nor did he pay for downloading the music. This is an example of:
copyright infringement
A plaintiff may be compensated for the emotional harm resulting from a battery, as well as physical harm.
false
An overemphasis on long-run profit maximization is a common reason for ethical problems that may occur in a business.
false
As part of the IDDR approach as described in the text, it is important to list as many possible various alternatives, and identify strengths and weaknesses of any remaining alternatives.
false
Judging a job applicant based on what an online search reveals about the applicant's activities outside the workplace, or their social media posts is universally viewed as ethical.
false
The triple bottom line is a measure that includes: a corporation's profit, its impact on people, and how the corporation feels about it.
false
Under the "stakeholder view," there is no group that ever has a greater stake in company decisions than the shareholders do.
false
An administrative legislative rule is not legally binding on businesses.
False
An online retailer can generally track a user's web activities with cookies, without violating the person's right to privacy.
True
Rita contracts to work for Social Media Corporation (SMC) during April for $4,500. On March 31, SMC cancels the contract. Rita declines a similar job with Tech Talk, Inc., which would have paid $3,500. Rita files a suit against SMC. As compensatory damages, Rita can recover
$1,000
Ray agrees to buy one hundred pounds of almonds from Sol. To be enforceable, the agreement must be in writing if the almonds cost at least
$500
Brie buys a subscription to music provided by Concerto, an online streaming service. Before gaining access, Brie must click "I agree" to a provision stating that she will not make and sell copies of the music. This provision is
A click-on agreement
Firms that violate the FCPA can be fined up to $2 million. Individuals can be fined up to _______, and imprisoned for up to five years.
10,000
The Economic Espionage Act made the theft of trade secrets a federal crime. Individuals face up to _______ in fines.
500,000
operation of law
A contract is discharged by a court because it is in the best interest of society
Via the Internet, Britta enters false code into the computer control system of Chicken Company, a food maker, to alter the levels of ingredients so that consumers of the food become ill. Britta is
A cyberterrorist
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
Diamonds & Gold LLC hires Elle to buy gems and precious metals from various sources on its behalf. In this relationship, Diamonds is
A principal
The publication of false information about another's product alleging that it is not what its seller claims is
A tort, slander of quality, and trade libel
Ingmar asks Jess to contract with Kay's Lawn Service to maintain Ingmar's lawn. Jess orally agrees to do so. This is an agency by
Agreement
Marketing, Inc., offers to create a campaign to increase N'Ice Cream, Inc.'s online business. N'Ice agrees to pay for the service. These parties have
An express contract
Based on Nan's conduct, Odel reasonably believes that Poppy has the authority to act on Nan's behalf even though Poppy does not have the actual authority to do so. In this circumstance, Poppy has
Apparent authority
Quint, an employee of Reservations Inc. pays Sienna, an employee of Reservations' competitor Travel Inc., for a list of Travel's clients. This is most likely
Commercial bribery
Commercial Supply wants to initiate a suit against Downwind Power Corporation by filing a complaint. The complaint should include a statement of the facts necessary to show that:
Commercial is legally entitled to relief.
Larry advertises a reward for the return of his lost dog. Miguel does not learn of the reward but finds and returns the dog. With respect to Miguel, Larry's ad is not an offer because it lacks the element of
Communication
East Bay Café orders seafood from Fresh Catch Company. Fresh places the goods at East's disposal. Fresh's performance under the contract is
Complete
Curly Fries Inc. grants its agent Dian an exclusive territory in which to sell its products. The company cannot compete with Dian in that territory under the duty of
Cooperation
Skye posts excerpts from comics and graphic novels on social networking sites without the permission of the owners of the copyrights. She says her reason is to promote the artists' work. This is an example of:
Copyright infringement
Kohl receives from Lily a camera stolen from Mark. Kohl knows that the camera is stolen, and he intends to keep it. Kohl is
Criminally liable
Daredevil Rides, Inc., owes debts to Equipment Company and Food Supplies, Inc. Equipment orally agrees to assume Daredevil's debt to Food to prevent the concessionaire from filing a suit against Daredevil. This agreement is enforceable by
Daredevil, Equipment, or Food.
Don enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation of the structure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be
Discharged
Anton tells Brooke, who has no knowledge of Shakespearean comedy, that he will tutor her in the subject for $50. As an offer, this is
Effective
Intoxicated, Efron enters a contract for the sale of his business, Freight Dispatch, to Gretel for less than its market value. This contract is enforceable if, at the time,
Efron understood the legal consequences.
Olinda, an employee of People's Bank, deposits into her account checks entrusted to the bank through its ATM system by customers to deposit into their accounts. This is
Embezzlement
For ________ to succeed as a defense, both the suggestion and the inducement must take place.
Entrapment
Erin indicates that she is acting as an agent on behalf of an unidentified client—Flight Services Inc.—when she enters into a contract with Go Airlines. Liability to Go for nonperformance of the contract may be imposed on
Erin and Flight Services
Car Lot's salesperson Dick offers to sell Ernie, who is twenty years old, a car. Dick intentionally misrepresents the vehicle's use and repairs. In reliance, Ernie buys the car. To prove fraud, Ernie does not have to show that
Ernie is under 21
A contract clause that releases an employer from liability for any injury to an employee, no matter who is at fault, is generally enforceable.
False
A controlling precedent is any legal authority or source of law that a court may look to for guidance but need not follow when making its decision.
False
A corporation can refuse to produce business records that might subject the firm to criminal prosecution.
False
A covenant not to compete imposed, as part of a sale of an ongoing business will be enforced even if the restrictions are unreasonable.
False
A federal statute applies only to those states that agree to apply it within their borders.
False
An independent contractor is, by definition, an employee
False
An intentional tort does not require intent.
False
An undisclosed principal is one whose identity is totally unknown by an agent and a third party at the time a contract is made.
False
An unwelcome kiss can be considered an assault.
False
Apparent authorityin an agency relationship arises when the principal causes the agent to reasonably believe that he or she has the authority to act.
False
Appellate courts must accept all appeals.
False
Compartmentalizing the law into discrete topics indicates that each business transaction is subject to only one specific area of the law.
False
Consequential damages are designed to punish the wrongdoer and set an example to deter similar conduct in the future.
False
Employers are completely prohibited from taking actions against employees, or applicants based on their social network postings.
False
Fraudulent appropriation of another's property with which a person has been entrusted is the crime of receiving stolen goods.
False
Generally speaking, people can use the amount of force that seems necessary to protect themselves, their dwellings, or other property or to prevent the commission of a crime, even if it is deadly.
False
Bob and Jim enter into a contract where Jim will custom make curtains for Bob's living room. Bob picks out the fabric and Jim makes the curtains. He delivers them to Bob and Bob refuses to pay, and says he does not like them. On what basis can Jim enforce?
Good faith
Pia registers a domain name—quallitytires.com—that is confusingly similar to the domain name qualitytires.com used by Quality Tires Inc. Quality Tires Inc. also owns the trademark of quality tires. Pia has a "bad faith intent" to profit from the domain name by selling it to Quality Tires. This would be:
Illegal by cybersquatting
Bob contracts with Jane to buy her car for $2500. Jane's neighborhood has a massive fire, and her car has extensive smoke damage. The contract with Bob will be dismissed because of
Impossibility
County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from Dale to Ezra, the furnished information is mistaken. The contract between Dale and Ezra that includes the mistake may be rescinded because the mistake
Is about a material fact
Volatile Investments Inc. sends e-mail ads to all e-mail address they can find on the Web, or otherwise generate with software. Under the CAN-SPAM Act, Volatile's marketing method:
Is prohibited
Ed works for Family Dwellings Inc., an investment firm that buys, renovates, and rents foreclosed houses. Ed steals his employer's digital files to start his own competing business, Good Homes LLC. This is
Larceny
Domestic Gas Company offers to sell Energy Ltd. a certain quantity of liquefied natural gas. If Energy sends an acceptance via Domestic's authorized mode of communication, it will be effective when it is
Received
Under the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act, which of these would be allowed?
Mailing a seasonal coupon out to a previous customer.
Raul uses social media to post links that, when clicked, secretly install software on others' computers without the owners' knowledge. Raul's software is designed to harm or disrupt the computers. This program is
Malware
On May 1 Ralph offers to harvest Sam's corn crop and promises to keep the offer open until June 1. On May 3 Ralph mails Sam a letter revoking the offer. Sam receives the letter on May 5 and responds on May 6. Ralph's revocation of the offer became effective on
May 6
__________ engages in financial transactions to conceal the identity, source, or destination of illegally gained funds.
Money laundering
Armand orally agrees to pay Borges to seed and harvest a quarter of Armand's farm acreage for four planting seasons. After Borges prepares the land and plants the first crop, Armand says that the deal is off. Borges can most likely recover on a theory of
Quasi contract
The offeror's act of withdrawing an offer is referred to as:
Revocation
Bert pushes Connie to the ground, grabbing her phone as she falls. The use of force or fear is required for this act to constitute
Robbery
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
According to a ______, the party who opens the box automatically accepts the terms by keeping the goods.
Shrink-wrap agreement
Energy Company employs Fred to negotiate the purchase of mineral rights for future mining projects. Fred secretly buys some of the property and sells it to Energy at a profit. Fred has breached
The duty of loyalty
An Internet service provider that shuts down a subscriber who infringes copyrights, can qualify for a "safe harbor" exemption under the Digital Millennium Copyright Act.
True
Ben makes an appointment for a $50 haircut, buys a bike for $250, and agrees to work for Coding Associates for one year for $5,000 per month, starting at the beginning of next month. To be enforceable, a writing is required for
The purchase
Afford Motors LLC, an auto broker, uses the trademark of Ford Motor Company in a meta tag without Ford's permission. This is an example of:
Trademark infringement
A civil case has a burden of proof that is a preponderance of the evidence.
True
A contract in which a party assumes a secondary obligation must be in writing to be enforceable.
True
A contract is an implied contract if the conduct of the parties creates and defines some of the terms.
True
A court usually will enforce a covenant not to compete provided its restrictions are reasonable.
True
Lev, an agent for Mill Grains LLC, executes an unauthorized contract with National Grocers Inc. The deal is highly advantageous to Mill Grains, and the company ratifies the contract. The contract is
Valid
"Be honest and treat people fairly." With respect to business ethics, implementing this motto is
Very important
Oceans, Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legal limit. This agreement is most likely
Void
The principle that people in society are free to act as they please so long as their actions do not infringe on the interests of others is known as
a duty of care
Jason, a citizen of Kansas, wants to file a suit against Lora, a citizen of Michigan. Their diversity of citizenship may be a basis for:
a federal court to exercise jurisdiction.
duty of loyalty
a fiduciary duty owed by an agent not to act adversely to the interests of the principal
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
Bey indicates that he is acting as an agent on behalf of an unidentified client—Cuisine LLC—when he enters into a contract with Diners Bistro. Cuisine is
a partially disclosed principal.
Red offers to pay Sara to deliver certain documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Red and Sara will have
a unilateral contract
Data, Inc., offers to provide certain services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprise accepts the written offer. Enterprise's best argument in favor of enforcement of the contract is that
a unilateral mistake does not afford relief from a contract.
Rosa introduces Sal to her friend Trey as "my associate." Sal purports to act as Rosa's agent in a business transaction with Trey. If Rosa is liable for Sal's actions, it will be because their relationship is
an agency by estoppel.
Nora works at Oil & Gas Inc. She is a sales representative who works with Oil & Gas customers. The company closely supervises its sales reps and dictates their schedules. With respect to third parties, Nora is
an employee and agent.
The U.S. Department of Justice needs to have construction work done on a federal courthouse. The agency asks contractors to submit bids. This is
an invitation to submit offers, not an offer itself.
Steel Mill, Inc., makes an offer to Tom to enter into a contract to work as a mechanical engineer for a certain salary for one-year subject to a five-year renewal based on his performance. Tom accepts the offer. This is a valid contract because it includes
an offer and an acceptance.
Seafood Café Company makes products that can cause severe health problems to those with shellfish allergies. Seafood analyzes the cost of warning people of the risk (which they believe is obvious), and the risk of harm to people if no warning is included in advertising and on menus. This analysis most likely is part of
an outcome-based ethics
Pros in Politics, a bookstore in Capitol City, sells publications that criticize government actions and policies. The city enacts an ordinance prohibiting the sale of such materials in the interest of preserving public tranquility. This ordinance is most likely constitutional under the First Amendment.
an unconstitutional restriction of speech.
VidGames, Inc., markets a variety of shooting, fighting, and hunting video games. A state statute is enacted to require all game makers to label any games with an option to kill something as "excessively violent." A court would likely hold this regulation to be
an unconstitutional restriction of speech.
Before either party to a contract has a duty to perform, one of the parties may refuse to perform that party's contractual obligations. This is referred to as
anticipatory repudiation.
Daisy enters into a contract with Evan for the construction of a Fast-Food Café, according to a certain schedule. The parties perform some preparatory steps, but Evan materially and willfully fails to begin work on the specified date. To rescind the contract, Daisy must show that the parties can
be restored to the status quo.
Sports Bar and Tasty Bakery are adjacent businesses with adjoining parking lots. Sports Bar offers Tasty a discount on purchases if the bakery will not tow the cars of Sports Bar's patrons who park in the bakery's lot. The discount is legally sufficient consideration
because it is a promise of something of value.
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.
Beryl enters into a contract with Clay for a guided tour of Deep Canyon. Clay represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Most likely, Beryl
can rescind the deal based on fraudulent misrepresentation.
Retailers and other firms that explicitly or implicitly invite persons to come onto their premises have a duty to exercise reasonable care to protect these
clients, customers, and business invitees
ChemCo Inc. expends funds and takes steps to ensure that all employees are treated fairly, and that they are acting ethically and are accountable to society. This is the concept of:
corporate social responsibility.
Web Invest Inc. buys and sells domain names with the click of a mouse. The high rate at which domain names change hands, and the difficulty in keeping track of mass automated registrations, have created a situation where:
cybersquatting can easily flourish
Fraudulent misrepresentation involves intentional deceit for personal gain and includes
damage suffered as a result of the reliance.
Metro Holdings, Inc., contracts to sell a commercial parking garage to New Property LLC. The contract provides that if Metro does not close the deal by a certain date, it must pay the buyer one-half of the value of the property. This provision is not enforceable if it is
designed to penalize Metro.
Debt Collection Service enters into a contract to employ Emma as a billing manager for two years. During the first year, Emma is often absent without explanation, and when present fails to adequately do her job. This
discharges the employer from the contract.
Ochre holds one ton of perishable fruit in storage for Produce Corporation. If Produce does not pay for the storage, under the doctrine of mitigation of damages, Ochre is held to a duty to
do whatever is reasonable to minimize the damages.
Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. With respect to the duties under the original contract, this transfer
does not relieve Bill of the potential obligation to perform.
Artificial Intelligence Inc. sells to Beta Bots Corporation a promising idea for a technological innovation that is still being developed and that looks very promising. This is
ethical and legal
Sloane drives into Tire Service and asks to have a tire replaced on her car. Tire Service replaces the tire, but before Sloane pays for it, any contract between them is
executory
An advertising agency asks a singer with a distinctive voice and stage presence to do a marketing campaign for a new automobile. The singer rejects the offer. If the agency then uses someone who imitates the singer's voice and dance moves in the ad, this would be actionable as
false light
Ben manages a warehouse and its inventory for Coffee Roaster Inc. To operate this part of the business, Ben's authority can be inferred
from the position Ben occupies.
If a company strictly complies with existing laws, the firm will
fulfill some business ethics obligations.
Payback Inc. discovers that defamatory statements about its policies are being posted in an online forum. Q Web Inc., the Internet service provider whose users are posting the messages, refuses to reveal the users' identities. Payback Inc. should first:
gain unauthorized access to Q Web's servers.
A guest in your home is not a trespasser unless that guest
has been asked to leave but refuses.
Barry purchases some goods online from Acme Corp. He had clicked the accept terms box on the website when purchasing, which included a dispute resolution agreement that all disputes be sent to arbitration. He is unhappy with the product and injured by it. He brings a lawsuit in court against Acme Corp, and Acme files to dismiss based on the arbitration agreement. Barry will:
have to pursue arbitration for his dispute.
Ira serves in a representative capacity for Jett. Key is injured through Ira's negligence. Jett may be liable to Key if Ira's conduct occurred
in the course and scope of Ira's employment.
Alice and Bart enter into a contract for the sale of Canyon Ranch. To be enforceable, this contract must be
in writing or evidenced by a written memorandum.
Jon contracts with Kino to buy a certain number of sheep for Kino's Animal Farm. Jon makes a deal with Lila for the sheep, but neither Jon nor Kino pays the price. Lila sues Jon for breach. Jon's right to hold Kino liable for any damages is the right to
indemnification
Choose the activities that are a part of discovery: (choose all applicable answers)
interrogatories and dispositions
Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump
is the consideration that creates Kim's obligation to pay Leo.
Analytica LLC files a suit against the United States, challenging a congressional enactment mandating that employers pay their employees' student loans. The process by which the court decides this issue is
judicial review
A person will not be liable for the tort of wrongful interference with a contract or business relationship if it can be shown that the interference was
justified, permissible, or bona fide competitive behavior.
Once the electronic record _____________________________ or comes under the control of the recipient, the UETA deems it to have been sent.
leaves control of the sender
Emmett, an agent for Fridley, signs an agreement with Glover on Fridley's behalf but neglects to tell him that the agreement requires the payment of a certain tax. The government prosecutes Fridley for failing to pay the tax. He is
liable, because notice to Emmett is notice to Fridley.
A constitution sets forth a government's
limits and powers
Duane and Evan orally agree to a transfer of forty acres of farmland. Evan asks Finance Bank to lend him the funds to buy the land. Under the Statute of Frauds, the agreement between Duane and Evan is enforceable by
no one because it's oral
Lucy is married to Marco. Lucy buys food for their children's lunches and charges the cost to Marco's account. This is an agency by
operation of law
Under corporate social responsibility, which of these is not an activity that would qualify:
paying all employees the same wage.
The state of Ohio can regulate building contractors, and building codes in the state under its
police powers
At Mattress Store, Nate signs a contract to buy bedroom furniture. The contract sets a schedule of $500 monthly payments, subject to a late fee of 15 percent. Nate finds the language of the contract difficult to understand. This is most likely
procedural unconscionability.
Sales Corps Inc. provides tablets for its employees to use "in the ordinary course of its business." Sales Corps Inc. intercepts the employees' personal communications made on these devices. Under the Electronic Communications Privacy Act, this is
prohibited for the employer
Rosa, who operates a Street Tacos restaurant in her apartment, is charged with criminal violations of the local health and building codes, state license regulations, and federal environmental statutes. To obtain a conviction, the prosecution must
prove beyond a reasonable doubt that Rosa committed every essential element of an offense.
Repair Service enters into a contract to fix washing machines in Soapy Suds Company's coin-operated laundries. Repair breaches the contract. Soapy is awarded compensatory damages. The purpose is to
provide Soapy with funds for its loss of the bargain.
For fraud to occur, _____ must be involved.
puffery
An accountant's conduct is judged not by the reasonable person standard, but by the
reasonable accountant standard.
In selling a warehouse, Riley, a real estate broker, tells Sam that the property has a certain capacity, making it suitable for a nightclub. Riley knows nothing about the capacity of the building, but it is not as he specifies. Sam buys the building. Sam's best course of action is most likely to
recover damages or rescind the contract to buy the building.
Cathy agrees to sell her Daily Donut shop to Ernie. In the agreement, there is a covenant not to compete that prohibits Cathy from operating a donut shop within a certain distance. If the restriction is unreasonable, a court will most likely
reform the covenant.
Under _________, a court may impose criminal liability on corporate officers regardless of whether they participated in, directed, or even knew about a given criminal violation.
responsible corporate officer doctrine
principal
someone who authorizes an agent to act
At an auction, Ben bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is
still liable on the bid.
Gary owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Helen enters into a contract to buy "Gary's ATV" for $750. Gary believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this situation
the contract is not enforceable
Bread Company hires Craig to sell the company's products in a certain area. Bread agrees to pay Craig a salary, plus commission, for a trial period. They also agree that he can sell using any methods and during any hours that seem appropriate. The key factor in whether Craig is Bread's employee is
the degree of the employer's control over the details of the work.
Bern, a salesperson at a Carpet & Tile store, tells Dan, a customer, "Buy your flooring here, and I'll install it for less than the store would charge." Dan buys carpeting, which Bern installs for half the store's price. Bern keeps the money. With respect to the store, Bern has breached
the duty of loyalty
Physicians Clinic orders by phone seven cases of single-use latex gloves from Quality Medical Supplies, Inc. After three cases are delivered and accepted, Physicians Clinic repudiates the contract. Quality Medical can enforce the contract to
the extent of the three accepted cases.
Each court has a jurisdiction. Jurisdiction is best defined as
the geographic area in which a court has the power to apply the law.
Caryn is faced with making a business decision. As she thinks about the problem, she feels that there is no easy answer. She continues to think about what is making her uncomfortable about the situation before brainstorming possible solutions. If Caryn is using the IDDR approach to decision making, she is engaged in which step?
the inquiry step.
Omar asserts that a deal he entered into with Pat to sponsor and host a motivational conference for independent sales representatives was formed as the result of a mistake. Omar's best defense to the enforcement of this contract is
the lack of a party's voluntary consent.
Restore, Inc., contracts to resurface the pools at Swim Park by June 1. Restore knows that if performance is not timely, Swim Park will have to delay its seasonal opening. Restore finishes the job June 15. In a suit for breach, Swim Park can recover
the loss of profit from the delayed opening.
For quasi-contract to apply, the following must apply (choose all applicable answers)
the party conferred a benefit on the other party. the party receiving the benefit would be unjustly enriched if allowed to retain the benefit without paying. the party conferred the benefit with the expectation of being paid.
The basic requirements for performance to qualify as substantial performance are (choose all applicable answers)
the performance must not vary greatly from the performance promised in the contract. the party must have performed in good faith. the performance must create substantially the same benefits as those promised in the contract.
A judicial decision on the constitutionality of an executive order that limits certain state actions is
the power of judicial review.
Big Dig LLC makes an offer to perform an excavation and related tasks for Commercial Development Corporation, but due to a substantial mathematical mistake, significantly underprices the work. Commercial accepts the offer. Data Big's best defense against enforcement of the contract is that Commercial knew
the price was below the prices of comparable services.
Flo, the manager of Grounds Maintenance Inc., must decide whether to use an herbicide that could be unhealthy to employees. They want to use it (as well as the public) once it is on the ground. Flo might lose the client if she refuses to use the herbicide. If Flo analyzes the importance of good health and the avoidance of disease as the rights of people in making her decision, she is likely using
the principle of rights theory.
Zoey is accused of auto theft. She refuses to give information related to her alleged criminal activities because she suspects it will be used to prosecute her. This is
the privilege against self-incrimination
Interactive Entertainment Corporation markets its products online. Through the use of cookies, Interactive Entertainment and other online marketers can:
track individuals' Web browsing and shopping activities.
indemnification
the right of a partner to be reimbursed for expenditures incurred on behalf of the partnership
Franny is charged with a crime. Almost all federal courts and some state courts would not hold Franny liable if, at the time of the offense, as a result of a mental disease or defect, she lacked substantial capacity to obey the law and to appreciate
the wrongfulness of her conduct.
Brandon has worked at Google for five years and is being considered for a management position. His supervisor, Claire, writes an e-mail about Brandon's performance to those evaluating him for the management position. The message contains certain negative statements, which Claire honestly believes are true. If Claire limits the disclosure of the contents of the message to company representatives, her statements will likely be protected by a qualified privilege.
true
Corporate social responsibility may increase a business's reputation or goodwill.
true
If someone posts nude pictures or videos taken with digital devices on social media, they have committed the torts of invasion of privacy and appropriation.
true
In the cost-benefit analysis utilitarian model, the focus is to always do the most amount of good for the most amount of people.
true
Merely advertising a product online is never enough to avail your company to jurisdiction of that state.
true
Outcome-based ethics deals with the consequences of an action, not the nature of the action itself, nor any religious or moral beliefs.
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 tortfeasor (the one committing the tort) must intend to commit an act, the consequences of which interfere with the personal or business interests of another in a way not permitted by law.
true
To establish defamation, plaintiffs who are public figures must prove actual malice.
true
Top management's behavior in a company sets the ethical tone for the workplace.
true
When concurrent jurisdiction exists, the parties may choose to bring the case in state or federal court.
true
Flash Inc., a maker of athletic shoes, registers and uses "flash" as its domain name. Later, Got Shoes Company begins to use "flashh" (an intentional misspelling of "flash") as its domain name. Got Shoes is most likely:
typosquatting against Flash Inc
These basic types of situations may qualify as grounds for the discharge of contractual obligations based on impossibility of performance (choose all applicable answers)
when the specific subject matter is destroyed. when an essential party to the completion of the contract dies. when a change in the law renders performance illegal.
Nina is induced by her guardian Ollie to sign a contract to invest funds in Penny Stocks, Inc., through Ollie's investment firm. Unknown to Nina, Ollie realizes a commission from the investment. Most likely, Nina may rescind the contract on the basis of
undue influence.
Under a contract with River Valley Farm, Sancho begins grading a terraced hillside for planting. Halfway through the project, Sancho asks for $5,000 over the contract price, claiming an increase in the "cost of doing business." The farm agrees, but later refuses to pay. The agreement to pay more is
unenforceable, because Sancho's performance was a preexisting duty.
Viaduct Corporation used untested and risky construction techniques to build a bridge under budget. The techniques were legal but the bridge collapsed, killing several people. Viaduct's actions were
unethical, and may result in legislation.
Sal is mentally incompetent but has not been adjudged by a court to be incompetent. Sal enters into a contract with Tony for the cleaning and maintenance of Uptown Office building. Most likely, the contract is
voidable if Sal did not comprehend the consequences.
Shuster's lease of retail premises from Thurgood requires Shuster to pay certain fees, subject to the landlord's proof of the correct amount. Thurgood overcharges Shuster for the fees, without explanation. Most likely, the tenant can rescind the lease
with prompt notice.
Odell is an employee of Packing Corporation. She uses social media in a way that violates her employer's stated social media policies. Packing Corporation disciplines Odell, and then fires her after a second transgression. This is:
within the employer's rights.
A ___________________ is an order issued by the Supreme Court to a lower court requiring that court to send the record of the case for review.
writ of certiorari
A shopping mall contains two athletic shoe stores: Joe's and Ultimate Sport. Joe's cannot station an employee at the entrance of Ultimate Sport to divert customers by telling them that Joe's will beat Ultimate Sport's prices. This type of activity constitutes the tort of
wrongful interference with a business relationship.
