Law and Society Final
Business ethics looks at whether business decisions
are right or wrong
In a consolidation, two or more corporations combine in such a way that only one of the corporations continues to exist.
false
If a company strictly complies with existing laws, the firm will
fulfill some business ethics obligations.
DIY, a retail hardware store, must use reasonable care on its premises to warn its invitees of
hidden dangers
Ford is the sole proprietor of Go, a game subscription service. As a sole proprietor, on the business's profits, Ford pays
only personal income taxes
Adrian operates a recycled metals business and contracts to provide ten tons of scrap steel at $500 per ton to be delivered to Build-It-Rite Materials, Inc., in seven months. An unforeseen shortage of scrap steel suddenly develops, making it impossible for Adrian to fulfill the contract for less than $5,000 per ton. Adrian's best defense against performing the contract would be that
performance of the contract is commercially impractical
Posing as eBank, Frank e-mails Grace, asking her to update her credit-card information through a link in the e-mail. She clicks on the link and types in the data, which Frank promptly sells to Hector. This is
phishing
As a means of controlling quality, a franchise agreement can limit the franchisee's ability to sell the franchise to another party
true
Because no one can actually hold a piece of land, certain rights and duties are recognized to constitute the ownership interests in real property.
true
Dissociation terminates some of the rights of the dissociated partner, requires the firm to buy his or her interest, and alters the parties' liability to third parties.
true
If a director commits a breach of fiduciary duty, the shareholders have the inherent power to remove the director from office by a majority vote.
true
Many bailments do not include all of the elements of a contract.
true
Watercraft Inc. employs Vern as a sales agent for a trial period. At the end of the period, Watercraft and Vern disagree on the amount of the commissions Vern is due for sales that he made. Vern may demand
an accounting
Nina, the owner of Organic Farm, a sole proprietorship, wants to obtain additional capital to operate. This can be accomplished by
any of the choices
Trespass to land is committed if, without the permission of the property owner, a person
causes water to back up onto the property.
Fern, who owns and operates Garden Farm, agrees to sell Harvest Grocery a minimum quantity of fresh fruits and vegetables every week for three months. If bad weather destroys Fern's crops, the obligation to deliver produce to Harvest is
discharged
Start-Up LLC is a limited liability company without a written operating agreement. Among the members, a dispute arises concerning the division of profits. Under most LLC statutes, the profits will be
divided equally among the members
Dim threatens physical harm to force Ed to sell his Flower Shop to Dim for a below-market price. This is
duress
A corporate director may not
engage in self dealing
A federal form of government is one in which the national government shares sovereign power with
the states
In many instances, agency law governs the relationships among partners.
true
One of the essential elements of a general partnership is a right to participate in the control of a business
true
Cal, Dex, and Erin agree to be partners in Fajitas, splitting the profits equally. Cal contributes 65 percent of the capital. When Fajitas is dissolved, its liabilities are greater than its assets. The losses are paid by
all the partners in proportion in their shares of the profits
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
Builders Corporation files a suit against Concrete Company to enforce a written contract. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted to prove
an orally agreed on condition
Cass, a certified public accountant, agrees to perform an audit for Drone Distribution Inc. These parties are most likely to follow the rules of contract law in order to
avoid potential disputes
Blue Water Power Corporation wants to begin operations that include the discharge of waste into navigable waters. Under the Clean Water Act, Blue Power must install certain equipment
before beginning operations
A misunderstanding concerning a basic assumption on which a contract is made will support the rescission of the deal if the mistake is
bilateral
Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, Credit Loan must inform potential borrowers of
credit loans credit terms
Health Clinic Inc. has no written employment manual or oral discharge policy, avoids abusive treatment of its staff, and acts to prevent illegal and unsafe activities. The clinic freely hires and fires its employees, who are similarly free to quit at any time. With respect to the employment-at-will doctrine, this is
exemplary of the doctrine
A corporate officer is liable to the corporation or its shareholders for a bad business decision.
false
A creditor can always require the signature of a cosigner on a credit application.
false
A de jure corporation is one that is formed to accomplish a single purpose within a limited time.
false
A finder of mislaid property has no obligation to return the property to the true owner
false
A license is a personal privilege that cannot be withdrawn or revoked.
false
A minor can disaffirm a contract at any time but remains legally obligated to perform it.
false
A partner can be held liable for a partnership obligation only if he or she participated in, or knew about, whatever it was that gave rise to the obligation.
false
A party who confers a benefit on someone else unnecessarily can obtain its fair value by invoking the doctrine of quasi contract.
false
A payment of funds or a delivery of goods must take place for a bilateral contract to be formed.
false
A promise to pay another's debt only if that party fails to pay does not need to be in writing to be enforceable
false
A short-form merger is the acquisition of control over a corporation through a purchase of stock
false
A specified state of mind, or intent, is not necessary to establish criminal liability.
false
A takeover is the acquisition of control over a corporation through a purchase of substantially all of its assets
false
A whistleblower is an employee who publicly reveals a co-worker's unsafe or illegal activity.
false
Accession occurs when someone acquires title to a valuable piece of personal property by assuming a position of power.
false
Actual authority in an agency relationship arises from what a principal makes clear to a third party.
false
If contracting parties attach materially different meanings to a contract word or term subject to more than one reasonable interpretation, the contract is void.
false
It is the motive behind the intent—not the intent—that is important in tort law.
false
The equal dignity rule requires that a principal and an agent act in good faith and with mutual respect in their dealings with each other.
false
The management of a limited liability company must include at least one of the members.
false
The most common way to terminate contractual duties is by repudiation.
false
The offeror can revoke the offer only be expressly repudiating it
false
The owner of a life estate has the same rights as a fee simple owner, including the right to sell the property or pass it to his or heirs.
false
To gain a share of a market, a businessperson can interfere in another's business, even if the behavior is predatory.
false
Under the Uniformed Services Employment and Reemployment Rights Act, any person who has served in the military is entitled to more favorable treatment in the workplace than a co-worker who has not served.
false
Warrants are required for searches of businesses in highly regulated industries.
false
When a joint tenant dies, his or her interest in the property passes to his or her chosen heirs.
false
the federal courts are independent system of courts that is superior to the state courts
false
to be a fixture, an item of personal property must be physically attached to the land in some way.
false
Sean promises to pay his personal assistant Terry $50,000 in consideration of the services she provided over the years. Sean never makes the payment. Sean's
not enforceable because the consideration is in the past.
Ivy slips and falls on the deck of Jet's Tour Boat and is injured. She incurs medical expenses of $500,000, and files a suit against Jet to recover. Under the "50 percent" rule, if Ivy is more than 50 percent at fault, she will recover
nothing
Pay-More Convenience Stores, Inc., is a franchisor. Randy operates a Pay-More franchise. Seth is one of Randy's employees. As a franchisor, if Pay-More controls the day-to-day operations of the business to a significant degree, it may be liable for tortious acts by
pay more, randy, or seth
Mike owns a beach house in North Carolina in fee simple. This ownership interest is
potentially infinite in duration
For a court to determine if a contract has been breached and to give an appropriate remedy, the offer must include terms that are at least
reasonably definite
A contract for a sale of land from Beachfront Properties Inc. to City Development Corporation contains an erroneous legal description. The appropriate remedy for these parties is most likely
reformation
Good faith in collective bargaining between a union and an employer does not include
rejecting a proposal without offering a counterproposal.
Barb, a computer operator for Cloud Corporation, is arrested in her employer's parking lot on suspicion of larceny. Barb must be informed of her right to
remain silent
Revenue Inc. owns more than 90 percent of the shares of Sales Corporation. A copy of a plan for a merger of Revenue and Sales must be sent to each shareholder of
sales
Sid offers Tina, a city inspector, money to overlook health code violations in his restaurant. Tina accepts the money and overlooks the violations. Sid is charged with the crime of bribery. The crime occurred when
sid offered the bribe
In a digital ad, Geo Treks, a retail sports equipment store, falsely accuses its competitor Headwaters of selling stolen kayaks and other gear. Headwaters' sales decrease. Geo Treks has most likely committed
slander of title
Ivy orally agrees to buy a unique collection of sports memorabilia for $10,000 from Jess and sends $2,500 as an initial payment. When Ivy pays the rest of the price, Jess refuses to ship the collection. In a suit for breach, Ivy should seek
specific performance
Lance enters into a contract to mow Mary's yard every week for the summer. Mary sells her house and yard to Nora, and assigns the right to receive Lance's services to Nora. Mary is
the assignor
The federal government has the power to regulate commercial activities among the states under
the commerce clause
Generally, given the broad language of the Constitution, the line between state and national powers is often determined by
the courts
For a price, Rose agrees to unload the catch from fishing boats that dock at Seafood Shipping. Rose delegates this duty to Tina, who then owes performance of the duty to the warehouse. Tina is
the delegatee
Physicians Clinic orders by phone seven cases of disposable nitrile gloves from Quality Medical Supplies, Inc. After three cases are delivered and accepted, the clinic repudiates the contract. Quality Medical can enforce the contract to
the extent of the three accepted boxes.
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 partys voluntary consent
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.
A speedy trial, a trial by jury, a public trial, and the right to confront witnesses are guaranteed by
the sixth amendment
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
A principal who creates an exclusive agency and then competes with the agent can be held liable for the agent's lost profits or sales.
true
A promisee has the right to expect or demand that something will or will not happen in the future.
true
Any beneficiary to a contract who is not deemed an intended beneficiary is an incidental beneficiary.
true
Because of the potential for punitive damages, plaintiffs often include a claim for fraudulent misrepresentation in their contract disputes
true
Because state corporate laws differ, persons wishing to incorporate may look for the state that offers the most advantageous tax or other provisions.
true
Contests and lotteries are unilateral contracts
true
During collective bargaining sessions, both parties may engage in hard bargaining, but the process must be geared to reaching a compromise.
true
If the members of a limited liability company want to reinvest profits in the business, they may opt for the firm to be taxed as a corporation.
true
In effect, a counteroffer converts the original offeror into an offeree with the power of acceptance
true
In rare circumstances, a price list may be construed as an offer
true
Like partners, unless otherwise agreed, joint venturers have an equal voice in controlling a venture-related project.
true
Limited legal liability can be an advantage for a small business wishing to raise capital.
true
Merger and consolidation refer to two legally distinct proceedings, but consolidation is also used to refer to all types of corporate combinations.
true
Preemption occurs when Congress chooses to act exclusively on a subject over which the federal government shares power with the states.
true
The Telemarketing Sales Rule applies to any offer—domestic or foreign—made to consumers in the United States
true
The board of directors hires the corporation's officers, and normally can remove them at anytime with or without cause.
true
The business judgment rule may apply to determine whether directors acted reasonably in resisting a takeover attempt.
true
The delivery of documents that represent the rights to property can be sufficient to transfer that property to the recipient.
true
The distinction between real and personal property is important because how property is acquired is determined by its classification.
true
With respect to bailed goods, common carriers are absolutely—strictly—liable.
true
With respect to consideration, a bargained-for exchange distinguishes a contract from a gift.
true
he initial board of directors of a corporation is normally appointed by the incorporators when the corporation is created.
true
Eugene, an accountant, convinces his client Faye to enter into a contract to invest her savings in Gathering, a non-existent social media site. There is clear and convincing evidence that Faye did not act out of her free will. This is
undue influence
A contract to do something that is prohibited by statute is
unenforceable
Len, a MedCo Supplies salesperson, follows Nan, a salesperson for Optima Health Products (a MedCo competitor) as she visits locations to make sales. Len solicits each of Nan's customers. Len is most likely liable for
wrongful interference with a business relationship
Criminal statues proscribe
wrongs committed against society for which society demands redress
Gretchen is adjudged by a court to be mentally incompetent. Gretchen
cannot form a legally binding contract with another party.
Kelly offers to sell a certain used forklift to Lumber Outlet, but Kelly dies before Lumber accepts. Most likely, Kelly's death
terminates the offer
Berry Farm hires Chun to repair its irrigation system on site by a certain date for $2,500, but Chun fails to perform. Berry Farm hires Diego to do the job for $2,000. In a suit for breach, Berry Farm may recover from Chun
nominal damages
As a director of InstaTalk Inc., Jim has a right of inspection. This right can be restricted by
none of the choices
An agency relationship can arise by ratification, which involves a determination of intent expressed by words or conduct.
true
As a general rule, most any duty can be delegated
true
Digital goods, including virtual goods, are personal property with real value.
true
In a criminal case, the state must prove its case beyond a reasonable doubt.
true
There is a remedy available for nearly every breach of contract
true
The Americans with Disabilities Act permits employers to take adverse employment actions based on assumptions about individuals who associate with people who have disabilities.
false
The Equal Pay Act requires equal pay for male and female employees working at the same establishment, regardless of the work they do
false
The Uniform Partnership Act governs the operation of partnerships in spite of a different agreement among the partners.
false
Alyssa hires Bret to mow Alyssa's lawn every Friday. Although they do not discuss the terms of payment, after each of the first three Friday mows, Alyssa pays Bret on Saturday. The payment term is
implied
Marketing Solutions Inc. promises to employ Niki as a software engineer. In reliance on the promise, Niki quits her job with Online Ad Agency, but Marketing Solutions does not hire her. Most likely, Marketing Solutions is
liable to Niki under the doctrine of promissory estoppel.
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
In an online blog, Oren states that Publicity Corporation invaded the privacy of individuals to collect marketing data for its clients. If the firm can prove all of the elements of defamation and Oren cannot assert a sufficient defense, Oren is most likely liable for
libel
Rosario is a chef and caterer who hires out on a per-project basis to companies with on-location work sites, as well as to the hosts of banquets and other events. In this capacity, Rosario is
an independent contractor
Lon says to Misty, "I would like to sell you my vinyl records." This statement is
an invitation to negotiate, not an offer.
Ichiro is injured in a two-car accident and sues Heather, the driver of the other vehicle, alleging negligence. Heather claims that Ichiro was driving more carelessly than she was. Comparative negligence may reduce Ichiro's recovery
even if Ichiro was only slightly at fault
Before being transported, hazardous waste produced by the operations of Fabrication Inc. must be properly labeled and packaged under the Resource Conservation and Recovery Act by
fabrication inc
A belief in the possibility that a person committed a crime is sufficient probable cause to support the issuance of an arrest warrant
false
A contract that calls for an action contrary to public policy is illegal but not unenforceable.
false
Larceny involves force or fear, but robbery does not.
false
Negotiation requires the use of a neutral third party to facilitate a settlement.
false
Normally, a court will evaluate the adequacy of consideration based solely on the comparative value of the things exchanged as part of agreement
false
One corporation that owns all of the shares of another corporation is a subsidiary corporation.
false
Riley commits an act via e-mail against State Bank, a business in Texas, where the act is a cyber crime. Riley resides in Utah where the act is not a crime. Prosecution of Riley in Texas involves questions of
jurisdiction
Khan takes a rock from a pile of stones on Lamb's property and throws it intending to hit Minh, but misses and hits Nasir instead. For the tort of battery, Nasir can sue
kahn
Steel Mill Inc., employs five hundred workers. For the Occupational Safety and Health Administration, Steel must do all of the following except
keep occupational injury and illness records for each employee
An ethical code of conduct is not
law
Ethics is important because laws may not always be easy to interpret or apply. This is because
laws represent the will of the people and that will is often changing.
An ad for the New Plays Festival asks playwrights to submit their work and "we might produce it for the world." Oded submits a play with a note that states, "I accept." Between the Festival and Oded, there is
none of the choices
jana, a nurse practitioner, renders aid to Kurtz, who is injured and unconscious. Jana can recover the cost of the aid from Kurtz
on quasi contract theory
Gaia tells Franco that she will pay him $50 to haul lawn debris from her property. Franco's acceptance is complete
only after he hauls away the debris
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
partially disclosed principal
Duty-based ethical standards are most likely to derive from
philosophical reasoning
Erol works for Food Packing Company. Erol's supervisor Gwen writes a negative review of Erol's performance. Gwen believes the statements are true, and limits their communication to the firm's management. In a tort action for defamation, Gwen can most likely assert as a successful defense
privilege
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
Traditionally, the hundreds of thousands of acts defined as criminal in federal, state, and local laws have been grouped into broad categories, including
property crime
The purpose of the right to disaffirm a contract is to
protect minors
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
Blanche, a minor, enters into a contract to buy two all-season passes from Chalet Mountain Resort. The contract will be made enforceable if Blanche
ratifies it
Compliance with Title VII of the Civil Rights Act is monitored by
the equal employment opportunity commission
A novation requires
the existence of a previous, valid obligation.
Interstate Commodities Inc. keeps a file of I-9 verifications forms, which are required by the Immigration Reform and Control Act. To monitor compliance with the act, random audits and enforcement actions are conducted by
the federal government
Espresso Brew Inc. uses a Web site to provide downloadable information to prospective franchisees. This electronic information is the equivalent of an offer that must comply with
the federal trade commissions franchise rule
Compliance with the law is not always sufficient to determine "right" behavior because
the law does not codify all ethical requirements.
For a price, Ray agrees to unload trucks that make deliveries to Shoppers Warehouse. Ray delegates this duty to Tim, who then owes performance of the duty to the warehouse. Ray is
the obligor
Rich, an auctioneer, puts a sailboat up for auction. Rich is
the offeree
Susan enters into a contract with Trey to act as his personal sports trainer. If a dispute later arises, the court will interpret the contract according to
the parties' intent at the time they entered into the contract.
The term checks and balances refers to the system under which
the powers of government are divided among its branches, each of which exercises a check on the actions of the others.
Consumer Staples Inc. includes in its advertising obvious exaggerations, vague generalities, and puffery about its products. The firm may be subject to sanctions for
the puffery
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
After a dinner at Rosario's Diner, Sharon believes that she was overcharged and shoves Tom, the waiter, who is injured when he falls. Tom sues Sharon, alleging that the shove was a battery. Sharon is liable if
the shove was offensive
Maya and Nick enter into a contract. To be enforceable, the contract must include
the signature of the party against whom enforcement is sought
Otto is a limited partner in Port Exports, a limited partnership. By participating in the firm's management, Otto is liable for its obligations
to the full extent
Under the doctrine of respondeat superior, a corporation can be held liable for
torts committed by its agents or officers
Megan gives out a business card with an e-mail address on it. It is reasonable to infer that Megan has consented to
transact business electronically.
A bailee has a right to the reimbursement of costs incurred in keeping the bailed property, even in a gratuitous bailment.
true
A breach of contract occurs when a party fails to perform part or all of the required duties under a contract.
true
A business necessity is a defense against employment discrimination based on the genuine requirements of a business.
true
A business that believes a federal agency's action threatens the environment can use an environmental impact statement as a means to challenge it.
true
A constitution is a primary source of law.
true
A contract must be in writing to be enforceable if it cannot by its terms be performed within one year from the day after the contract's formation.
true
A cooperative can be incorporated.
true
A corporation is recognized under U.S. law as a person.
true
A corporation needs to be careful about whom it hires because a firm may be liable for the misconduct of its employees
true
A court can order the dissolution of a partnership if the business can only be operated at a loss.
true
A court will pierce the corporate veil of a corporation when the corporate privilege is abused for personal benefit
true
A fact that is important and central to the subject matter of a contract is a material fact.
true
A limited liability partnership allows professionals to avoid personal liability for the malpractice of other partners.
true
A liquidated damages provision specifies an amount to be paid in the event of a future default or breach of contract
true
A mistake of fact can often excuse criminal responsibility.
true
A partner who withdraws from a partnership for a term before its expiration date can be held liable for any resulting losses.
true
A party who can show that he or she did not genuinely agree to the terms of a contract has a defense against its enforcement.
true
A share exchange can be used to create a holding company.
true
A syndicate may be organized as a corporation or a partnership, or in some situations as no recognizable form of business organization.
true
Adverse possession is a means of obtaining title to land without delivery of a deed
true
Among the factors an entrepreneur will consider in selecting an organizational form for a business is the liability of the owners for the acts of the firm.
true
An ad is more likely to be considered fair if its benefit to consumers or the competition outweighs any injury it might cause to the interests of consumers
true
An employer may be able to avoid liability for sexual harassment by taking prompt remedial action.
true
Contracting parties are bound only by terms that can be objectively inferred from promises made.
true
Controlling precedents are binding authorities.
true
Global businesses need to be conscious of the impact of different religious principles on ethics.
true
The dormant commerce clause comes into play when state regulations affect interstate commerce.
true
Under a state long-arm statute, a court can exercise jurisdiction over certain nonresident defendants.
true
When a member of a limited liability company guarantees payment of a loan to the firm, the member is personally liable for the obligation.
true
When concurrent jurisdiction exists, the decision of whether to litigate in a federal or state court can be affected by the availability of different remedies.
true
When dissolution takes place by voluntary action, the members of the board of directors act as trustees of the corporate assets.
true
When the promoter of a limited liability company enters into a preformation contract on the firm's behalf, the company must adopt the contract to enforce it.
true
With a tenancy at will, either party can terminate the tenancy without notice.
true
Yuri agrees to zed.com's terms of service and downloads the site's app. Yuri then reverse-engineers the app to create a competing product. This is
a breach of contract
a precedent is
a court decision that furnishes an example for deciding subsequent cases involving similar or identical facts or principles.
Stare decisis is best defined as
a doctrine under which judges follow established precedents.
To gain a share of a market, a businessperson can interfere in another's business, even if the behavior is predatory.
a felony
Sweetwater Corporation is incorporated in Texas. Outside that state, within the United States, the firm is
a foreign corporation
Corner Store posts on its website an offer of a reward for information leading to the apprehension of a certain criminal. This offer could normally be terminated by
a post on the website
Without creating a separate business organization, Rey starts up Street Cruisers, a pre-owned auto sales enterprise. This enterprise is
a sole proprietorship
On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had
a unilateral contract as soon as outdoor began to perform
Without a permit from the U.S. Army Corps of Engineers, Condos Corporation fills a wetlands area that it owns in preparation for the construction of a housing complex. Under the Clean Water Act, this is most likely
a violation
Denny works for Engineers P.A. While working on an Engineers project, Denny is injured. Under state workers' compensation laws, he will be compensated only if the injury was
accidental
Robotics Inc. is a corporation. Its express powers can be found in
all of the choices
Farah makes and sells camping gear. Farah and Gobi enter into a contract for a delivery of the gear to Gobi's Outfitters retail locations for an invoiced price. Farah transfers the right to payment under the contract to Haulers Distribution Inc. This transfer is
an assignment
Questions of what is ethical involve the extent to which a company has
an ethical duty beyond those duties mandated by law.
Apps LLC enters into a contract with Birk, the chief executive officer of Corporate Sales Inc., to create an app for the firm. To fulfill the contract, Apps hires Dave as a student intern. With respect to the app contract, Dave is
an incidental beneficiary
If intoxication is purely voluntary, the intoxicated person's contracts are not voidable.
False
In the context of fraudulent misrepresentation, an opinion is objective and verifiable, whereas a fact is subject to debate.
False
Special damages that compensate for a loss caused by circumstances beyond the contract itself are incidental damages
False
When the doctrine of promissory estoppel is applied, the promisor is estopped, or barred, from performing the promise.
False
A lender who makes a loan at an interest rate above the lawful maximum commits usury.
True
Mica is an employee of Natural Gas Company and a member of a union of company employees. Under federal law, Mica and other union members have the right to
bargain collectively with their employer through their representative.
To constitute consideration, there must be
bargained for exchange
County Title Company processes information furnished by others to transfer title to real estate from Dale to Ezra. The furnished information is mistaken. The contract between Dale and Ezra may be rescinded
because the mistake is about a material fact
Bev owns and operates City Delivery Service as a sole proprietorship. When she dies, the business will automatically
dissolve
Jurisdiction refers to the right of a citizen to bring a case before a court.
false
Only one of the boards of directors of the corporations involved must approve a merger.
false
Only one party entering into a contract must possess characteristics that qualify him or her as competent for a valid contract to exist.
false
Parties are not usually free to bargain as they wish
false
Procedural due process focuses on the content of legislation.
false
Publication of false information about another's property is not a tort.
false
Putting up an item for sale on an online auction site is an offer.
false
Shareholders, not directors, make major corporate policy decisions.
false
Shrink-wrap terms are enforceable even if a buyer does not discover them until after the parties have entered into a contract.
false
Substantive due process requires that a person have an opportunity to object to a proposed action before a fair, neutral decision maker.
false
The Age Discrimination in Employment Act prohibits employment discrimination on the basis of age against individuals up to forty years of age.
false
Reliance on a certain type of oral contract can be enough to remove it from the Statute of Frauds.
true
Restitution may be available in situations when damages cannot be proved or are difficult to prove.
true
Situations in which agreements lack consideration include those involving a preexisting duty.
true
Taking personal property from its owner, without permission or just cause, is trespass—retaining it is conversion
true
Tender is an unconditional offer to perform by a person who is ready, willing, and able to do so.
true
The Immigration Act limits the number of legal immigrants entering the United States
true
The effect of the minimum-contacts standard is that a business firm has to comply with the laws of any jurisdiction in which it targets customers
true
The offeree must accept the offer without adding or changing any terms.
true
The owner of real property has relatively exclusive rights to the airspace above the land.
true
The standard of reasonable care for a professional is the same as that of an ordinary person
true
To focus on individual subjects and increase efficiency, a corporate board can delegate certain tasks to committees of directors.
true
To prevent deception, all representations by a franchisor to a prospective franchisee must have a reasonable basis at the time they are made.
true
Two parties can mutually agree to rescind a contract only to the extent that it has been executed—otherwise, there is nothing to rescind.
true
Under the Fair Credit Reporting Act, a consumer can request the identity of anyone who has received a credit agency's report on the consumer.
true
Affirmative action programs are often found to be unconstitutional because they deprive members of protected classes of equal protection.
false
An easement is the right to go onto land owned by another and take away some part of the land itself or some product of the land.
false
An employer must reasonably accommodate its employees' religious practices, but only if they are based on the doctrines of a traditionally recognized religion.
false
An innocent party who does not suffer harm as a result of a misrepresentation can nevertheless collect damages.
false
An offer must express reasonably definite terms to be effective—no term may be reasonably inferred
false
Anyone can avoid a contractual obligation by claiming that he or she did not read the contract
false
Apparent authority in an agency relationship arises when the principal causes the agent to reasonably believe that he or she has the authority to act.
false
Because courts of law and equity have merged, the principles of equity are no longer applied.
false
Because of their positions within the corporation, directors cannot be held liable for the crimes of corporate employees.
false
Both parties to an agency relationship have the power and the right to terminate the relationship at any time.
false
Contract law does not distinguish between moral and legal obligations.
false
Disparate-impact discrimination occurs when a protected class is adversely affected by the practice or procedure of an employer who intended that result.
false
During an employee's leave under the Family and Medical Leave Act, an employer must continue to compensate the employee to avoid the potential negative effect of unpaid leave on interstate commerce.
false
According to most states' laws, to be enforceable as a contract under the Statute of Frauds, a writing must
name the parties
Lipstick Inc. merges with Mascara Inc. Only Mascara remains. The articles of merger
amend the articles of mascara
The sale and distribution of the assets of a business on its termination is
liquidation
One party wants to file a suit against another. For a court to hear the case,
the court must have jurisdiction
Jade owns a loft that she leases to Key and Liu. If Jade sells the loft, Key and Liu
become the tenants of the new owner
Roy is a director of Sales Inc. Sales enters into a contract with TeleCenter Corporation in which Roy has a personal interest. Roy must
make a full disclosure of the conflict of interest
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.
A lease between Mia and Niles for residential property contains an exculpatory clause. This clause is most likely
unenforceable
Del owns Everlast Painting, a sole proprietorship. Del's liability is
unlimited
Paving LLC is a foreign limited liability company in the state of Ohio. In dealing with Paving, Ohio will apply the law of the state where the firm
was formed