Legal Environment of Business Final
Those who do not make goods, but only sell or lease them, cannot be held liable for harm caused by those goods to a consumer. True or False
False
Under the principle of rights theory, the key factor in a decision is how the result may harm the rights of the company to make money. True or False
False
Title VII of the Civil Rights Act applies to employers and labor unions with at least a. ten employees or members. b. one employee or member. c. five employees or members. d. fifteen employees or members.
Fifteen employees or members
Teresa buys a franchise from Urgent Care Clinics, LLC. If their agreement is like most franchise agreements, it will specify that Urgent can terminate the franchise a. for no reason. b. for cause only. c. for any reason. d. at will.
For cause only
Federal overtime provisions apply only after a covered employee works more than a. eight hours in a day. b. forty hours in a week. c. twenty days in a month. d. one year for the same employer.
Forty hours in a week
"Be honest and treat people fairly." With respect to business ethics, implementing this motto is a. very important b. only important with large companies c. only important in democratic societies d. not important
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 a. void. b. voidable. c. enforceable. d. illusory.
Void
Under Chapter 7, the primary effect of a discharge is to a. extend the time for the debtor's payment of overdue debts. b. allow a creditor to collect a previous judgment on a discharged debt. c. void a judgment on a discharged debt and prohibit an action to collect it. d. force a creditor to obtain a new judgment on a discharged debt.
Void a judgment on a discharged debt and prohibit an action to collect it
During an administrative hearing, the parties may a. all of the choices. b. cross-examine witnesses. c. give testimony. d. present evidence.
all of the choices
When applying the rule of reason to an activity that allegedly violates the antitrust laws, a court will not consider a. whether the agreement is a per se violation. b. the potential effect of the agreement on competition. c. the parties' market ability to implement the agreement. d. athe purpose of the agreement.
whether the agreement is a per se violation
The simplest form of alternative dispute resolution is mediation True or False
False
State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is a. a breach of contract. b. a novation. c. an operation of law. d. a condition.
A condition
Martin files a suit against Nichelle in a state court over an employment contract. The case proceeds to trial, after which the court renders a verdict. The case is appealed to the state's highest court. After that court's review of Martin v. Nichelle, a party can appeal the decision to the United States Supreme Court if a. the party is unsatisfied with the result b. the state trail and appellate court rulings are different c. a state question is unresolved d. a federal question is involved
A federal question is involved
Beryl owns Campus Apartment House. His ownership rights include the right to sell or give away the property without restriction, as well as to use the property for whatever purpose he sees fit. His ownership interest is a. the right to adverse possession. b. an easement. c. the power of eminent domain. d. a fee simple absolute.
A fee simple absolute
Kim and Leola own a warehouse in which they operate Mini-Storage Corporation. On the death of either owner, that owner's interest in the warehouse passes to the surviving owner. This is a. a profit. b. a tenancy in common. c. a joint tenancy. d. community property.
A joint tenancy
A limited liability company that wants to distribute profits to its members could avoid "double taxation" by electing to be taxed as a. a person. b. a partnership. c. a sole proprietorship. d. a corporation
A partnership
In a suit against Guillermo, Hailey obtains an award of damages. This is a. the cancellation of a contract b. payment of money or property c. the right to harm another d. an order to do or to refrain from doing a certain act
A payment of money or property
The Medical Device Makers Association does not include all manufacturers of medical and surgical instruments. The association refuses to deal with any parties who do not carry the products of its members. This is a. not within the scope of the Sherman Act. b. a per se violation of antitrust law. c. a situation that neither restrains trade nor harms competition. d. subject to analysis under the rule of reason.
A per se violation of antitrust law
Logging Corporation has a right to go onto Mount Timber Company's land and harvest select trees. Logging's right is a. a profit. b. a license. c. an easement. d. a right to adverse possession.
A profit
The means to enforce a right or compensate for the violation of a right is a. a cornerstone b. a remedy c. jurisdiction d. stare decisis
A remedy
Dana operates Energy Inc., a corporation in the fuel-supply business. Dana wants to create a plan under which the firm pays a portion of its debts, is discharged of the remainder, and is allowed to continue in business. Energy should file a petition in bankruptcy for relief through a. an adjustment of debts. b. a reorganization. c. a liquidation. d. a repayment plan.
A reorganization
Vin admires Will's collection of vinyl records. Vin asks, "Will you sell it?" This statement is a. a request, not an offer. b. an expression of intent, not an offer. c. an offer. d. an invitation to negotiate, not an offer.
A request, not an offer
Beth participates in an investigation into possible violations of Title VII of the Civil Rights Act at ChemCo Inc., where she is an employee. As a result, the employer demotes her. Beth can file a. a disparate-impact discrimination claim. b. none of the choices. c. a retaliation claim. d. a constructive discharge claim.
A retaliation claim
Without creating a separate business organization, Rey starts up Street Cruisers, a pre-owned auto sales enterprise. This enterprise is a. a corporation. b. none of the choices. c. a franchisee. d. a sole proprietorship
A sole proprietorship
To make a sale to Gourmet Inc., Hill Valley Commodities asks Gourmet's outside accountant Ina to co-sign a credit application. According to the terms, if Gourmet defaults, Hill Valley can look to her for payment without first pursuing legal remedies against Gourmet. Tina is a. a surety. b. a lienor. c. a creditor. d. a guarantor.
A surety
The commerce clause has never been held to support the federal regulation of noncommercial activities that take place wholly within a state's borders. True or False
False
Maeve sells New Energy, a sole proprietorship that makes and sells solar panels, to Omar. This is a. a transfer of the ownership of the business. b. none of the choices—a sole proprietorship cannot be sold. c. the creation of a partnership. d. the establishment of a franchise.
A transfer of the ownership of the business
Rue offers to pay Sari to deliver certain documents within thirty minutes. Sari can accept the offer only by completing the task within the deadline. If she does, Rue and Sari will have a. an executive contract. b. a bilateral contract. c. a void contract. d. a unilateral contract.
A unilateral contract
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 a. material. b. incidental. c. accidental. d. intentional
Accidental
A proceeding in which an administrative law judge hears and decides issues that arise when an agency charges a person or a firm with an agency violation is a. investigation. b. adjudication. c. rulemaking. d. declaration.
Adjudication
The chief executive officers of the major U.S. steel makers would most likely be prosecuted under the antitrust laws if they a. agreed to work together to control the price of domestic steel. b. conferred on resource, supply, and distribution issues. c. met to review developments in the domestic market for steel. d. promised to reveal to each other their positions on trade and tariffs.
Agreed to work together to control the price of domestic steel
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 a. accounting and finance manager b. Human Resources manager c. marketing manager d. all of the choices
All of the choices
In Beto v. Car Dealership, a state supreme court held that a minor could cancel a contract for the sale of a car. Now a trial court in the same state is deciding Dora v. Even Steven Autos, Inc., a case with similar facts. Under the doctrine of stare decisis, the trial court is likely to a. allow the minor to cancel the contract b. require the minor to fulfill the contract c. disregard the Beto case d. order the minor to cancel the contract
Allow the minor to cancel the contract
The Uniform Commercial Code facilitates commerce a. among the states b. between the states and the federal government c. in countries that were once colonies of Great Britain d. in international markets
Among the states
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 a. an accord and satisfaction. b. a novation. c. a mutual agreement to rescind. d. specific performance.
An accord and satisfaction
Federico and Gwen are involved in a court proceeding to enforce a right. This is... a. stare decisis b. an action c. a remedy d. an injunction
An action
Baby Day Care, a sole proprietorship, wants to pay as many of its obligations as reasonably possible, and be discharged of the rest. To accomplish this goal, the proprietorship should file a petition in bankruptcy under Chapter 13 for relief through a. a reorganization. b. an adjustment plan. c. a liquidation. d. a repayment plan.
An adjustment plan
Gina and Harry present their case to an Idaho state court for resolution. The court defers to a different Idaho court's findings of fact in the case, and focuses on the application and interpretation of the law to the dispute. The court currently deciding Gina and Harry's dispute is a. a special inferior court b. a US magistrate's court c. a trail court d. an appellate court
An appellate court
Irma delivers her Jeep to be fixed at Kent's Auto Repair. Irma agrees to pay cash. Kent's performs, but Irma does not pay. Kent's keeps the Jeep until she pays. This is a. an artisan's lien. b. a violation of most states' laws. c. a mechanic's lien. d. garnishment.
An artisan's lien
Sara files a suit in a state court against Tech Innovations Inc. The parties are allowed to file litigation-related documents with the court online. This is a. an electronic court filing system b. online dispute resolution c. a cyber court d. electronic discovery
An electronic court filing system
Frank is an employee of Guitar Makers LLC. Guitar's employee manual states that workers, such as Frank, will be dismissed only for good cause. With respect to the employment-at-will doctrine, this is a. an exception based on a statute. b. an example of the doctrine. c. an exception based on contract theory. d. an exception based on public policy.
An expectation based on contract theory
Bhat and Cho do business as Day Glow Paints, a partnership. In most states, for the purposes of collecting judgments and having accounting performed, this firm would be treated as a. an independent entity. b. a combination of individuals. c. a proprietorship. d. an aggregate.
An independent entity
Luke puts his motorcycle up for sale via a post on an online auction site. This is a. a preliminary negotiation, not an offer. b. an invitation to negotiate, not an offer. c. a statement of future intent, not an offer. d. an offer.
An invitation to negotiate, not an offer
Applying the relevant rule of law to the facts of a case requires a judge to find previously decided cases that, in relation to the case under consideration, are a. exactly identical b. as similar as possible c. as different as possible d. at odds
As similar as possible
Data Inc. pays income and other taxes collected by the Internal Revenue Service (IRS). Like other federal administrative agencies, the IRS was created by a. the president, through an executive order. b. an administrative agency, through administrative regulations. c. a court, through the adjudicatory process. d. Congress, through enabling legislation.
Congress, through enabling legislation
Lisa brings a successful suit against her employer Mold & Die Corporation for employment discrimination. Lisa may be awarded a. back pay, retroactive promotions, and damages. b. retroactive promotions, but not back pay. c. back pay, but not retroactive promotions. d. damages, but not back pay.
Back pay, retroactive promotions, and damages
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 a. bargain collectively with their employer through their representative. b. insist that their employer require union membership to work. c. none of the choices. d. require their employer to contribute financially to their union.
Bargain collectively with their employer through their representative
To purchase a house, Becky obtains a mortgage loan from Countywide Bank. The lender should record the mortgage to a. secure itself in the position of an unsecured creditor. b. preserve a copy of the loan in a separate location. c. be officially on record as holding an interest in the property. d. obtain reimbursement for a portion of the loan if the debtor defaults.
Be officially on record as holding an interest in the property
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 a. under no circumstances. b. only if Tasty uses it. c. because it is a promise of something of value. d. only if Sports Bar adds a cash rebate.
Because it is a promise of something of value
Primary sources of law include a. case law b. official comments to statutes c. legal encyclopedias d. legal treatises
Case Law
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 a. bribery of a public official. b. no crime. c. bribery of a foreign official. d. commercial bribery.
Commercial bribery
The Uniform Commercial Code provides a set of rule governing a. commercial transactions b. state legislative adoptions c. congressional procedures d. administrative processes
Commercial transactions
Beck and Carli are married. Carli buys a condominium near Downhill Ski Resort. Beck and Carli each technically own an undivided one-half interest in the condo. This is a. a joint tenancy. b. a tenancy in common. c. community property. d. a license.
Community property
East Bay Café orders seafood from Fresh Catch Company. Fresh places the goods at East's disposal. Fresh's performance under the contract is a. conditional. b. complete. c. material. d. substantial.
Complete
In a suit by Citizens Conservation Organization (CCO) against Deep Mining Inc., CCO serves a written request for the defendant to admit the truth of matters relating to the trial. Deep Mining's admission in response a. is the basis for a default judgment in the plaintiff's favor b. completely absolves the defendant of the issue in question c. is irrelevant d. conclusively establish the matter for trail
Conclusively establish the matter for trail
Serene City enacts an ordinance that bans the use of "sound amplifying systems" on public streets. Tyler wants to campaign for a seat on the city council by broadcasting his message through speakers mounted on a truck. In Tyler's suit against the city, a court would likely hold the ordinance to be a. necessary to protect national interests. b. justified by the need to protect individual rights. c. constitutional under the First Amendment. d. an unconstitutional restriction of speech.
Constitutional under the First Amendment
Beal, a member of a protected class, applies for a job with Coffee Brew Corporation, but fails the company's employment test and is not hired. Beal believes that the test has an unintentionally discriminatory effect. If so, this is a. disparate-treatment discrimination. b. a constructive discharge. c. not discrimination. d. disparate-impact discrimination
Disparate-impact discrimination
Giso applies for a job with Hobby Company. The employer does not hire him because of his ethnicity, or national origin. This is a. disparate-treatment discrimination. b. a constructive discharge. c. disparate-impact discrimination. d. not discrimination.
Disparate-treatment discrimination
Baby Goods Inc. buys Child Shops Inc. in an attempt to gain monopoly power. Remedies that a court might impose in a suit against Baby Goods for a violation of the antitrust laws include a. all of the choices. b. funding new entries to the relevant market. c. using its market power to encourage increased competition. d. divesting itself of the control or ownership of Child Shops.
Divesting itself of the control or ownership of Child Shops
Holdings Corporation, a top-performing company, may be more likely to behave unethically if a. the firm begins to focus on being good corporate citizens. b. employees feel they are expected to continually perform at a high level to keep their jobs. c. the company mandates a four-part analysis for each corporate decision being made. d. its customers focus solely on the firm's profitability
Employees feel they are expected to continually perform at a high level to keep their jobs.
Baristas Union petitions the National Labor Relations Board for an election on organizing a union among the employees of Coffee Café Company. For an election to be held, the union must represent a. Coffee's best interest. b. employees whose skills, duties, and pay are similar. c. no more than 30 percent of Coffee's employees. d. all of Coffee's employees.
Employees whose skills, duties, and pay are similar
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 a. Dick intentionally deceived Ernie. b. Dick misrepresented material facts. c. Ernie is under twenty-one. d. Ernie justifiably relied on Dick's misrepresentations.
Ernie is under 21
Shippers Warehouse initiates a suit against Trans-State Trucking (TST) by filing a complaint. If TST files a motion to dismiss, the firm is asserting that a. even if the facts are true, TST is not legally liable b. if the facts are true, Shippers Warehouse has a right to judicial relief c. even if TST is legally liable, Shippers Warehouse cannot prove it d. the facts in the complaint are not true
Even if the facts are true, TST is not legally liable
Ovid files a suit against Portia, alleging that she failed to pay him for goods shipped in response to an e-mail order. Portia denies the charge. If her e-mail order exists, it is a. a deposition b. evidence c. an interrogatory d. discovery
Evidence
Ovid files a suit against Portia, alleging that she failed to pay him for goods shipped in response to an e-mail order. Portia denies the charge. If her e-mail order exists, it is a. a deposition b. in interrogatory c. discovery d. evidence
Evidence
A belief in the possibility that a person committed a crime is sufficient probable cause to support the issuance of an arrest warrant. True or False
False
A law based on a suspect trait will not stand under the equal protection clause even if it is necessary to promote a compelling government interest. True or False
False
A resident of one state, when in another state, can be denied the privileges and immunities of that state for any reason. True or False
False
Doing business within a jurisdiction is not enough for most courts to compel a defendant to appear. True or False
False
Embezzlement includes the making or altering of any writing in a way that changes the legal rights and liabilities of another. True or False
False
Equal protection means that the government must treat all individuals the same. True or False
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 a. false. b. true. c. contemptuous. d. an opinion.
False
If an owner consents to the taking of his or her property, a failure to return it cannot be a tort. True or False
False
In a case involving Internet transactions, jurisdiction is proper only when the defendant conducts substantial business in the jurisdiction online. True or False
False
Judicial review is the process through which Congress approves or rejects judicial appointments. True or False
False
Jurisdiction refers to the right of a citizen to bring a case before a court True or False
False
Making ethical decisions is most often best done by analyzing objective standards (such as profit or number of people fired) instead of subjective impacts on stakeholders. True or False
False
Most states encourage or require parties to undertake a trial before alternative dispute resolution. True or False
False
Negotiation requires the use of a neutral third part to facilitate a settlement. True of False
False
Product misuse is recognized as a defense to a claim for product liability only when the particular misuse was reasonably foreseeable. True of False
False
Frank tells Gala that she can camp on Frank's beach and swim in his lake whenever she wants. With respect to the right to camp and swim, a. Gala can exercise the right for the duration of her life. b. Gala can pass title to the right to her heirs. c. Frank can withdraw or revoke the right. d. Gala can force her way into Frank's lake whenever she sees fit.
Frank can withdraw or revoke the right
If a company strictly complies with existing laws, the firm will a. not need to fulfill any business ethics obligations b. fulfill no business ethics obligations c. fulfill some business ethics obligations d. fulfill al business ethics obligations
Fulfill some business ethics obligations
There are no precedents on which the court deciding the case Algorithm Corp. v. Beta Bytes, Inc., can base its decision. The court can consider, among other things, a. the opinions of the friends and relative of the judge b. the results of a poll of those in the courtroom c. government policy based on widely held social values d. all of the choices
Government policy based on widely held social values
Grain Farms, Inc., files a suit against Harvest Services. Before the court can exercise jurisdiction over Harvest, the court must have proof that a. Harvest was notified of the suit b. Grain Farms did not act to precipitate a dispute with Harvest c. Harvest committed the act of which Grain Farms complains d. Grain Farms is prepared to notify Harvest of the suit
Harvest was notified of the suit
Oren believes that Plumbing Contractor discriminated against him on the basis of race. He files a suit against Plumbing under the Civil Rights Act. To establish a prima facie case of employment discrimination, Oren must show that a. the employer has no legal defenses against the claim. b. he is a member of a protected class. c. discriminatory intent motivated the employer's act. d. no other firm in the industry has committed a discriminatory act.
He is a member of a protected class
Rico works for Street Tacos Inc. The basis for Rico's contribution under the Federal Insurance Contribution Act to help pay for benefits that will partially make up for his loss of income on retirement is a. an equitable share of his employer's unpaid contribution. b. his special job skills. c. his annual wage base. d. the employer's adjusted gross profits.
His annual wage base
Lloyd is accused of a crime. Evidence of his allegedly criminal activities can be excluded from a trial a. if the evidence is "fruit of the poisonous tree." b. if the police do not promise to keep the evidence confidential. c. if the evidence will be used to prosecute him. d. under no circumstances.
If the evidence is "fruit of the poisonous tree"
Dale's Uncle Ed tells Dale, "If I feel you deserve it at the time, I will give you a new car when you graduate from college." Ed's promise is a. enforceable. b. a forbearance. c. illusory. d. a preexisting duty.
Illusory
To notify the public of a proposed rule, the Federal Emergency Management Agency, like other federal agencies, publishes the proposal a. through a broadcast on a public television station. b. in a trade journal available to members of the industry. c. on its website. d. in the Federal Register.
In the Federal Resister
Grey owns the surface rights for High Desert Ranch, which includes a house, a bunkhouse, and two barns. Industrial Mining Inc. owns the subsurface rights. When the company drills for and extracts the oil beneath the ranch, the surface subsides and the structures collapse. Most likely responsible for the damage is a. Industrial Mining and Grey in proportion to the value of their rights. b. Grey. c. Industrial Mining. d. no one—each owner is liable for their own costs.
Industrial Mining
To benefit from international trade, individual nations agree to be governed by a. international law b. the Uniform Commercial Code c. none of the choices d. the laws of other nations
International law
In the case of Sales Corp. v. Transport Co., the court may rule contrary to a precedent if the court decides that the precedent a. incorrect or inapplicable b. is not in line with the judge's personal values c. would lead to unintended consequences d. would not bring about the result the judge prefers
Is incorrect or inapplicable
The Environmental Protection Agency (EPA) discovers that Fish Farm Inc. has violated an EPA regulation. If no settlement is reached, the EPA can a. do nothing b. issue a formal complaint c. take the matter to the US Supreme Court d. immediately impose sanctions
Issue a formal complaint
Investment Corporation wants to monitor business communications on phones that the employer provides to the employees. The employer's best course of action to avoid liability under laws related to employee monitoring is to inform a. the public generally. b. its employees. c. no one. d. its clients and others who communicate with the employees.
Its employees
Bud works at a Cheap Stuff Store from which, without authorization, he takes merchandise that he has not paid for home for his own use. This is a. embezzlement. b. robbery. c. no crime. d. Larceny.
Larceny
Secondary sources of law include a. state constitutions b. legal scholars' research c. laws passed by local governing bodies d. regulations created by administrative agencies
Legal scholars' research
Field Construction Inc. contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay. If this is a valid contract, it will be partly because it includes the element of a. legality. b. marketability. c. necessity. d. capability.
Legality
Edibles Inc. and Food Stuff Corporation are competitors. Each firm has capital, surplus, and undivided profits in excess of $40 million and competitive sales of more than $5 million. Gina and Hal serve as directors on both firms' boards. Under the Clayton Act's restriction concerning interlocking directorates, Gina and Hal are a. not liable because the firms' shareholders can affect company policies. b. not liable because the firms are likely to continue to compete. c. not liable because the firms' officers conduct the competitive activities. d. liable for failing to comply
Liable for failing to comply
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 a. slander. b. libel. c. malice. d. contempt.
Libel
Kyla replaces Lomax in his job at Motor Corporation. Lomax believes that he has been discriminated against on the basis of his age. For the Age Discrimination in Employment Act to apply a. Lomax must be forty years of age or older. b. Lomax must have been Motor's employee for at least forty years. c. Motor must have been in business for at least forty years. d. Kyla must be forty years of age or younger.
Lomax must be forty years of age or older
Motor Corporation (MC) makes cars and trucks. National Sales Company sells all MC vehicles. Open Road Inc. leases only the cars. Under product liability laws, liability for injuries or damage caused by an MC vehicle may be imposed on a. MC only. b. MC, National Sales, or Open Road. c. none of the parties. d. MC or National Sales only.
MC, National Sales, or Open Road
For a contact to be considered valid and enforceable, the parties to a deal must a. manifest their voluntary consent to the same bargain. b. know with certainty what kinds of promises will be enforced. c. subjectively intend to agree to the terms. d. necessarily have it in writing.
Manifest their voluntary consent to the same bargain
Jill and Kane, with their attorneys, meet to try to resolve a dispute. A neutral third party works with both sides and proposes a solution, but does not make a decision resolving the matter. This is a. none of the choices b. mediation c. arbitration d. negotiation
Mediation
Gil and Hera are employees of IT Solutions Inc. Under the Equal Pay Act, IT Solutions can legitimately pay different wages to male and female employees on the basis of a. marital status. b. gender. c. similar work at the same facility. d. merit.
Merit
At one time, a court of law could grant as a remedy only a. monetary damages b. an order to perform a contract as promised c. a judicial proceeding from the resolution of a dispute d. an injunction
Monetary damages
The Food and Drug Administration (FDA) is investigating reports that Caplets Corporation is putting potentially harmful additives in Doze, a new pain-relief medication. The FDA's demands for particular documents from Caplets a. must be general so as to force an uncooperative party's compliance. b. must be specific and adequately describe the material being sought. c. may, but need not, be specific because this is only an investigation. d. must not be specific or an incriminating item might be overlooked.
Must be specific and adequately describe the material being sought
Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Bagel Café in exchange for her payment of a debt that Lyle owes to New Credit Corporation. Under this contract, the intended beneficiary is a. any customer of Miranda's. b. Lyle. c. New Credit. d. Miranda.
New Credit
The Montana legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by a. no one b. the federal government only c. the state of Montana only d. the US Supreme Court only
No one
Deb and Elle are partners in Foundations, a counseling clinic. Deb manages the business. For this service, unless the partnership agreement states otherwise, she is entitled to pay in proportion to her a. capital contribution. b. none of the choices. c. effect on the business. d. effort
None of the choices
Assembly Corporation operates a plant near the border between the United States and Mexico. Due to the location, it would be easier for the company to employ noncitizens. In this circumstance, it is legal for a U.S. employer to a. none of the choices. b. recruit persons not authorized to work in the United States. c. refer for a fee persons not authorized to work in the United States. d. hire persons not authorized to work in the United States.
None of these choices
D'Antoni files a suit in a federal district court against Enya. D'Antoni loses the suit, appeals to the U.S. Court of Appeals for the Ninth Circuit, and loses again. D'Antoni asks the United States Supreme Court to hear the case. The Court is a. required to hear the case because D'Antoni lost in a federal court b. required to hear the case because it is an appeal c. not required to hear the case d. required to hear the case because D'Antoni lost in a lower court
Not required to hear the case
Vern is one of three partners in Waffles Food Truck. Concerning all aspects of the partnership business, Vern is entitled to information a. only on an "as needed" basis. b. only related to the partner's capital contribution. c. only for a reasonable purpose. d. on a complete basis.
On a complete basis
Leah and Mason are parties to a contract for the sale of Mason's day care facility to Leah. Before the deal closes, they agree to substitute Nell for Leah as a party to the deal. This does not require a. performance of the original contract by all of the parties. b. the existence of a previous, valid obligation. c. agreement by all the parties to a new contract. d. a new, valid contract
Performance of the original contract by all of the parties
To drive its competitors out of a certain geographic segment of its market, Drones, Inc., sets the prices of its products below cost for the buyers in that area. This is a. smart marketing. b. price-fixing. c. predatory pricing. d. price discrimination
Price discrimination
Common law rule develop from a. principles underlying judges' decisions in actual controversies b. regulation issued by administrative agencies c. statutes enacted by Congress and the state legislatures d. uniform laws drafted by legal scholars
Principles underlying judges' decisions in actual controversies
Erica, a police officer, wants to search the offices of Debit & Credit, Accountants. She asks Judge Bern to issue a warrant. No warrant for a search can be issued without a. double jeopardy. b. reasonable doubt. c. probable cause. d. immunity.
Probable cause
Marie claims that a Nebraska state statute infringes on her "procedural due process" rights. This claim focuses on a. the treatment of similarly situated individuals. b. the steps to be taken to protect Marie's privacy. c. the content of the statute. d. procedures used in making decisions to take life, liberty, or property.
Procedure used in making decisions to take life, liberty, or property
Traditionally, the hundreds of thousands of acts defined as criminal in federal, state, and local laws have been grouped into broad categories, including a. property crime. b. public crime. c. private crime. d. personal crime.
Property crime
The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through social media. The first step is a. publish a notice of the proposed rulemaking. b. compile the rule with others in the Code of Federal Regulations. c. draft the rule. d. solicit public comment.
Publish a notice of the proposed rule making
The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through social media. The first step is a. solicit public comment b. publish a notice of the proposed rule making c. draft the rule d. compile the rule with other in the Federal Register
Publish a notice of the proposed rule making
Olive is a supervisor for Pasta!, a restaurant. Qua is a Pasta! employee. The owner announces that some employees will be discharged. Olive tells Qua that for sexual favors, she will give him an excellent performance review and recommend a raise. This is a. quid pro quo harassment. b. none of the choices. c. employer retaliation. d. hostile-environment harassment.
Quid pro quo harassment
Bayside Inc. pays Coastal Marina to release its claim to a strip of waterfront property. Coastal gives Bayside a deed that conveys only whatever interest Coastal has in the strip. This deed is a. a deed of quiet enjoyment. b. none of the choices. c. a warranty deed. d. a quitclaim deed.
Quitclaim deed
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 a. Rancho's real estate. b. Rancho's personal property. c. the $5,000 owed on the contract. d. property held by a third party.
Rancho's real estate
Cody makes a business decision based on financial outcomes first, and then attempts to argue that it is ethical as well when it may not be. Cody is a. using the stakeholder approach b. rationalizing his decision c. questioning his decision d. using the utilitarian approach
Rationalizing his decision
Reese contracts to sell her Spicy Pizza restaurant to Titian. As part of the deal, Reese agrees not to open a competing business within a hundred-mile radius for ten years. Reese later sues Titian, alleging that the agreement is illegal. To enforce the covenant not to compete, the court will most likely a. rescind the contract and require restitution. b. order specific performance. c. reform the contract to make the distance and time limits reasonable. d. award damages for Reese's complete compliance with the terms.
Reform the contract to make the distance and time limits reasonable
Steel Mill Inc. agrees to deliver a certain quantity of steel to T-Bar Framing Corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. The seller cannot convince the buyer to amend the contract. The most appropriate remedy is a. specific performance. b. rescission. c. reformation. d. damages.
Reformation
Fabrication, Inc., makes steel forms that are substandard. Geo Manufacturing Company has never bought or used a Fabrication form, but files a suit against the firm, alleging that its products are defective. Fabrication's best ground for dismissal of the suit is that Geo does not have a. exclusive jurisdiction b. standing to sue c. discover d. minimum contracts
Standing to sue
Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as a. statutory law b. the basis of all law in the US c. the supreme la of the land d. uniform law
Statutory law
A business organizational form that limits its owners' liability allows the firm to lawfully a. all of the choices. b. act recklessly. c. take risks. d. engage in misconduct.
Take risks
Owen and other managers employed by Pastry Bakeries are most likely to find that unethical behavior in the workplace can be deterred by a. taking immediate action in response to unethical conduct. b. distributing rewards without regard to ethics. c. ignoring small breaches of company rules. d. imposing sanctions disproportionate to misconduct.
Taking immediate action in response to unethical conduct
EZ Co-op Inc. sells Fill-Up cattle feed to ranchers. Gina buys and feeds Fill-Up to her herd. The feed is poisoned. Gina sues EZ for product liability based on negligence. To win, Gina must show a. why the feed was poisoned. b. how the feed became poisoned. c. all of the choices. d. that the feed caused her damage.
That the feed caused her damage
Compliance with Title VII of the Civil Rights Act is monitored by a. protected classes. b. the Equal Employment Opportunity Commission. c. state and local governing agencies. d. businesses affected by interstate commerce.
The Equal Employment Opportunity Commission
Ceramic Workers Union represents the workers of Delta Tile LLC. The union fails to hold elections for union officers. This most likely violates a. the Fair Labor Standards Act. b. the Labor Management Reporting and Disclosure Act. c. the Labor-Management Relations Act. d. no federal law.
The Labor Management Reporting and Disclosure Act
With respect to antitrust violations, the Federal Trade Commission does not enforce a. the Sherman Act. a. the Clayton Act. c. the Federal Trade Commission Act. d. any of the federal antitrust laws.
The Sherman Act
The basis of all law in the US is a. regulations created by administrative agencies b. laws passed by Congress c. the US Constitution d. case law
The US Constitution
The federal agencies that enforce the antitrust laws include a. the Securities and Exchange Commission. b. the U.S. Department of Justice. c. the Consumer Financial Protection Bureau. d. all of the choices.
The US Department of Justice
The procedures used by administrative agencies in fulfilling their basic functions is known as a. the legislative process. b. the procedural process. c. the executive process. d. the administrative process.
The administrative process
Bea is one of three partners in Commercial Custodial Service. With respect to Bea's interest in the firm, when she dies, her heirs are most likely entitled to a. one-third of the value of the interest. b. a payout of her capital contribution without more. c. the buyout price paid by the firm for the interest. d. nothing.
The buyout price paid by the firm for the interest
Slim owns cattle, a pick-up truck, and stock in Range Corporation, which owns and operates the Big R Ranch. Capable of being involved in a bailment is a. Slim. b. the cattle, the truck, and the stock. c. the Big R Ranch. d. all of the choices.
The cattle, the truck, and the stock
The federal government has the power to regulate commercial activities among the states under a. the privileges and immunities clause. b. the First Amendment. c. the commerce clause. d. the full faith and credit clause.
The commerce clause
Donald is a minor. He can enter into any contract an adult can, provided a. the contract is not one prohibited by law for minors. b. the adult is willing to enter into contracts with minors. c. an adult is willing to ratify the contract. d. Donald is willing to disaffirm the contract.
The contract is not one prohibited by law for minors
Generally, given the broad language of the Constitution, the line between state and national powers is often determined by
The courts
Fez enters into a contract to buy 350 acres from Grain Farm to cultivate hops and open a brewery. Fez fails to make the purchase. Grain Farm's remedy is most likely a. the amount that Fez expected to invest in the brewery. b. the difference between the contract and market prices of the land. c. a percentage of Fez's unrealized profit. d. nothing—Grain Farm still owns the land.
The difference between the contract and market prices of the land
Nora and Owen do business as Property & Profit, a real estate investment partnership. In acting on the firm's behalf, Nora takes advantage of an opportunity to make a secret profit. To her firm, Nora is liable for a breach of a. the duty of care. b. none of the choices. c. the duty of loyalty. d. contract.
The duty of loyalty
Bob owns twenty acres of land on the side of a mountain in Colorado. He files a suit against the Durango Flight School, claiming that its planes flying over his land violate his property rights. To succeed, his best argument is a. the planes fly over more than twice a day. b. the planes are effectively taking private property for private use. c. there are other routes the planes could take. d. the flights are low and frequent, interfering with enjoyment of his land.
The flights are low and frequent, interfering with enjoyment of his land
Jurisdiction is best defined as a. a doctrine that follows established precedents b. the geographic area in which a court has the power to apply the law c. a judicial proceeding to redress a wrong d. a situation giving a person a right to initiate a judicial proceeding
The geographic area in which a court has the power to apply the law
Cultivator Inc. designs and makes tractors, balers, and other farm equipment. In a product liability suit based on negligence, Cultivator could be liable for failing to exercise due care with respect to all of the following except a. the assembly and testing of the equipment. b. the inspection of components purchased to use in the equipment. c. the growth of the equipment's sales. d. the selection of materials used to make the equipment.
The growth of the equipment's sales
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 a. the loss of profit from the delayed opening. b. the difference between the contract and market prices for the work. c. nothing—the work is done. d. the cost of new pools.
The loss of profit from the delayed opening
When Lara and Mick cannot resolve their dispute amicably, Lara initiates a lawsuit against Mick. Lara is a. the case of first impression b. the persuasive authority c. the plaintiff d. the defendant
The plaintiff
A judicial decision on the constitutionality of an executive order that limits certain state actions is a. beyond the jurisdiction of the courts b. a question of fact c. the power of judicial review d. a summary judgement
The power of judicial review
The Food and Drug Administration (FDA) is an executive agency. As an executive agency, the FDA is subject to the authority of a. the president b. the US Attorney General c. no government official or entity d. state legislatures
The president
The executive branch of the government can exercise control over an administrative agency through a. legislation that takes away the agency's power. b. none of the choices. c. the president's veto powers. d. judicial review of agency actions and decisions.
The president's veto powers
Snowboards Inc. refuses to sell its products to Timber Winter Sports Stores, Inc., a retail snowboard dealership. This violates Section 2 of the Sherman Act if Snowboards has monopoly power and a. the refusal is unilateral. b. Timber has or is likely to acquire monopoly power. c. the refusal has an anticompetitive effect on the market. d. none of the choices.
The refusal has an anticompetitive effect on the market
Battery Corporation's production, distribution, and marketing methods are unique. Its capital value and size are greater than its competitors. A suit is filed against the firm, alleging the offense of monopolization. To determine whether Battery has monopoly power requires looking at a. the corporation's size alone. b. the price of a share of the firm's stock. c. the business's production methods and marketing techniques. d. the relevant market.
The relevant market
To purchase a house, Clyde obtains a mortgage loan from Debit Bank. Clyde defaults on the payments on the loan. The bank has a. the right to reimbursement from an insurer for the unpaid debt. b. the obligation to refinance the loan. c. the obligation to forbear part or all of the payments for a limited time. d. the right to foreclose on the mortgaged property.
The right to foreclose on the mortgaged property
Administrative law includes a. all laws that affect business operations b. the rules, orders, and decisions of a government agency c. model laws developed by the National Conference of Commissioners on Uniform State Laws d. laws enacted by a legislative body
The rules, orders, and decisions of a government agency
Under Chapter 13, a repayment plan must provide for a. full payment of all claims, without exception. b. all of the choices. c. the turnover of the debtor's future income to the creditors. d. the same treatment of each claim within a particular class of claim.
The same treatment of each claim within a particular class of claim
On a challenge to a provision in a state constitution that conflicts with a provision in the U.S. Constitution a. neither provision will be enforced b. both provisions will be enforced c. the state provision will be enforces only within the state's borders d. the state provision will not be enforces
The state provision will not be enforced
Rex contracts with Spicy Pizza to deliver its products. After the deal has been partially performed, both parties inform each other that they would like to cancel the contract. Rex and Spicy may rescind a. none of their contract. b. their contract to the extent that it has been executed. c. their contract to the extent that it is executory. d. their entire contract.
Their contract to the extent that it is executory
Analytic Data, Inc., wants to hire Benazir, a noncitizen. A work visa is most likely to be set aside for a noncitizen if a. the noncitizen is of "ethnic similarity to the employer's workforce." b. there is a shortage of qualified U.S. workers capable of doing the work. c. the noncitizen is a "person with an extraordinary work ethic." d. hiring the worker will adversely affect the labor force.
There is a shortage of qualified US workers capable of doing the work
The Food and Drug Administration (FDA) wants Pharma Inc. to produce certain records for review. Pharma need not reveal a. facts that could be used against the firm in a court. b. files that are not otherwise required by law. c. trade secrets. d. incriminating information.
Trade secrets
A complaint contains a brief summary of the facts necessary to show the party filing the complaint is entitled to relief. True or False
True
A federal court will apply federal law in a case involving a federal question. True or False
True
A mistake of fact can often excuse criminal responsibility. True or False
True
A motion for summary judgment asserts that the plaintiff failed to state a claim for which the court can grant relief. True or False
True
A motion to dismiss asserts that a claim has no basis in law. True or False
True
A question of law is generally the focus on an appellate court. True or False
True
An appellate court can modify a trail court's decision, in whole or in part. True or False
True
An electronic court filing system allows parties to file litigation-related documents via electronic means. True or False
True
As part of the IDDR approach as described in the text, it is important to list many possible actions and analyze them using several different ethical theories. True or False
True
Before a lawsuit is initiated, a plaintiff should consider whether the defendant is able to pay the damages sought. True or False
True
Congress enacted the Sarbanes-Oxley Act to help reduce unethical management decisions. True or False
True
In a case based on diversity of citizenship, a federal court will apply the relevant state law. True or False
True
Jurors must decide a case based only on the information that they learn during the trial. True or False
True
Liability for injuries based on proportionate negligence is allowed by most states. True or False
True
Speech can be subject to reasonable restrictions True of False
True
The Computer Access Device and Computer Fraud and Abuse Act prohibits cyber theft. True or False
True
The first step in making an ethic decision is to understand the problem. True or False
True
The first ten amendments to the U.S. Constitution are commonly known as the Bill of Rights. True or False
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 or False
True
Cattle House Steaks, an Alabama company, enters into a contract over the phone with Beef Packing Inc., an out-of-state corporation. If a dispute arises, an Alabama court can exercise jurisdiction over Beef Packing a. under the minimum contacts test b. only if Beef Packing files the suit c. in no circumstance d. on the basis of a federal question
Under the minimum contacts test
A final rule issued through a notice-and-comment rulemaking procedure has binding legal effect a. unless a court overturns it. b. after a court affirms it. c. once Congress approves it. d. until the issuing agency rescinds it.
Unless a court overturns it
Criminal statutes proscribe a. the prosecution of private individuals by other private individuals b. the prosecution of public officials by private individuals c. the relief available when a person's rights are violated d. wrong committed against society for which society demands redress
Wrong committed against society for which society demands redress
Managing the land within a community to encourage sustainable and organized development while controlling growth in a manner that serves the interests of the community is the purpose of a. adverse possession. b. inverse condemnation. c. eminent domain. d. zoning laws.
Zoning laws
Leo is accused of a crime. To obtain information about the crime from Leo, the state can a. force Leo to provide information that can be used to prosecute him. b. grant Leo immunity from prosecution. c. none of the choices. d. bribe Leo in a way that serves the public interest.
grant Leo immunity from prosecution
DIY, a retail hardware store, must use reasonable care on its premises to warn its invitees of a. all possible dangers. b. dangers about which the business does not, or should not, know. c. no dangers. d. hidden dangers.
hidden dangers
Under the Bankruptcy Code, the means test is used to a. force more people to file for Chapter 7 bankruptcy. b. keep higher-income people from abusing the bankruptcy process. c. determine the validity of a statement or claim by any party in interest. d. prioritize the claims of the creditors in an involuntary proceeding.
keep higher-income people from abusing the bankruptcy process
