Business Law Final

T/F
Law Includes enforceable rules governing relationships between individuals and their society
True
T/F
Tortfeasor is the term for a person who is the victim of a tort
False
T/F
Some promises are legally binding contracts
True
T/F
Resolving whether a promise should be enforced is the essence of contract law
True
T/F
A state law that conflicts with the U.S. constitution will be deemed unconstitutional
True
T/F
One of the requirements to form a valid contract is an offer
True
T/F
Federal Agency regulations take precedence over conflicting state agency regulations
True
T/F
A court can exercise jurisdiction over an out-of-state defendant who has only done business in the state over the internet
True
T/F
Defamation occurs when a person is restrained by another intentionally and without justification
False
T/F
A contract entered into under physical duress is enforceable
False
T/F
The most common way to discharge a contract is by performance
True
T/F
Anything less than substantial performance is a material breach of contract
True
T/F
Overestimating the value of an object is a mistake for which a court will normally provide relief
False
T/F
Fraud occurs only when there is reliance on a statement of fact
True
T/F
Venue is the term for the subject matter of a case
False
MC
The legislature of the state of Missouri enacts a new statute that sets standards for the liability of businesses selling defective products. This statute applies where?
only in Missouri
MC
Edie files a suit against Frank. If this suit is like most cases, it will be
dismissed or settled before trial
MC
COle drives into Dino’s Service Station and asks Erin, the attendant, to fill the tank in Cole’s hybrid vehicle. After Erin fills the tank, but before Cole pays for the gas, any contract between Cole and Dino’s is
executory
MC
Jim is an appliance salesperson. To make a sale, he assets that a certain model of a Kitchen Helper refrigerator is the “best one ever made.” This is
Not fraud
MC
Jim files a suit against Kay. Before going to trial, the parties meet, with their attorneys to represent them, to present their dispute to a third party who is not a judge, but who refers a legally binding decision. This is
arbitration
MC
Network Corporation files a suit against Omega Inc., alleging that Omega breached a contract to sell Network a computer system. Network is
the plaintiff
MC
In a suit against Sandy, Taylor obtains a remedy. In the U.S. legal system, this remedy will most likely be
compensatory damages
MC
Hua, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jac, a resident of Kentucky. Jac files a suit against Hua in Indiana. Regarding this suit, Indiana has
in rem jurisdiction
MC
Home Delivery Corporation and Interstate Transport, Inc., sign an agreement that provides for the patent of “$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000.” This is
a liquidated damages clause
MC
Intoxicated but fully aware of the consequences, Uri agrees to a two-year cell-phone service contract with Wander Talk Inc., at more than the average market price. This contract is
enforceable
MC
On Tom’s eighteenths birthday, he decides that he no longer wants to keep a car he bought from Select Autos, when he was seventeen. His right to disaffirm the deal will depend on
whether Tom acts within a reasonable period of time
MC
Bette backs out of City Parking Garage, colliding Dill’s car. Dill may recover $7,500 to cover the cost of the repairs if Bette failed to act as
a reasonable person
MC
Quality Steel Corporation files a suit against Rite Tool Company, claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if
something of value passed between the parties
MC
Webline Retail Sales, Inc., promises its salaried employees a bonus at the end of the year if management thinks it is warranted. This promise is
unenforceable because it is not supported by consideration
MC
Mica, a minor, signs a contract to pay Natural Health Club a monthly fee for twenty-four months to use its facilities. Six months later, after reaching the age of majority, Mica continues to use the club. This act is
ratification
T/F
An individual is always liable for any amount of unauthorized charges on his or her credit card
False
T/F
To be negotiable, an instrument must be signed
True
T/F
Any security Interest can be perfected by the filing of a financing statement
False
T/F
A principal is authorized to act on behalf of an agent in doing business with third parties
False
T/F
A conditional promise to pay is not a negotiable instrument
True
T/F
A seller need not provide a written warranty for consumer goods
True
T/F
If a contract for a sale of goods does not include a price term, the contract is void
False
T/F
The term tender refers to the right of the seller to reject, adjust, or replace nonconforming goods
False
T/F
a lessor is a party who transfers a right to the possession and use of goods under a lease
True
T/F
A security agreement must be filed in person to be valid and enforceable
False
T/F
In sales law, a covenant is an assurance by one party of the existence of a fact on which the other party can rely
False
T/F
Employees who deal with third parties are agents of their employers
True
T/F
An independent contractor’s physical conduct is not controlled, or subject to control, by his or her employer
True
T/F
Article 2A of the UCC governs contracts of sales of goods
False
T/F
A seller can terminate a contract of the basis of commercial impracticability if increases in the seller’s costs threaten to undercut its profits
False
MC
Olga, a salesperson for Pre-owned cars tells Quincey “This is the best car I’ve ever seen.” This statement is
not a warranty, but puffery
MC
Silky Material Corporation in NJ sells fifty tons of fabric to Tattered Clothing Inc., in Ohio, “F.O.B. New Jersey.” The cost of transporting the fabric to Ohio will be paid by
Tattered clothing
MC
To finance the purchase of a car from Giant Auto Sales, Hoppy signs an instrument promising to pay to “Ideal Credit Union” $18,000 with interest in installments with the final payment due May 15, 2014. To be negotiable, this instrument must include on its face
no conditions
MC
The payment of Hu’s set to Ian is guaranteed by Hu’s equipment. To give public notice of his interest in Hu’s property, Ian is most likely to
file a financing statement with the appropriate authorities
MC
Bubbly Soda Company hires Carlo to work on Bubbly’s shipping dock, checking outgoing loads and dispatching Bubbly’s drivers. With respect to Carlo, Bubbly is most likely
a principal
MC
Jody is an agent for Insta Cross Country Trucking Inc. In the course of Jody’s performance for the firm, Jody pays Heck for certain vehicle maintenance and repair services. Jody’s right to obtain the amount of those payments from Insta arises under the principal’s duty of
reimbursement
MC
Lena borrows from Mac and Nicol, using the same collateral for both loans. Only Nicol has a perfected security interest. Lena defaults on both loans. The party with the first rights to the collateral is
Nicol only
MC
Opal signs a promissory note payable to order of Payday Loan Company. The note states that it is payable “with interest at 6%.” This note is
negotiable
MC
Genuine Seed company and Hillside Farmers Cooperative enter into a contract for a sale of hybrid seeds. Under the perfect tender rule, Genuine Seed must ship or tender seeds to Hillside that
exactly conform to the contract in every detail
MC
Aromatic Tea Company (seller) and Savory Stores Inc., (buyer) enter into a contract for a sale of tea. The contract includes the term “F.O.B. Upriver City” which is Savory’s location. This means that the contract is
a destination contract
MC
Tyrone draws a check payable to “Cash” and presents it to United Bank for payment. This instrument is
a bearer instrument
MC
Prime Property Investments Inc., files a financing statement to provide notice of its security interest in the property of Qwik Breakfast Restaurant. The initial effective term of a financing statement is a period of
five years
MC
Alaskan salmon that fill the hold of BIll and Carla’s fishing boar are fungible if the salmon are
identical, mutually interchangeable
MC
Elegant carpets Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting. Under a shipment contract, the seller must
place the goods into the hands of a carrier
MC
Craft Engineering Inc., contracts for a sale of technical instruments to Detail Design Company. Before the date on which performance is due, Craft notifies Detal that it will not perform. This is
anticipatory repudiation
T/F
Disparate-impact discrimination occurs when an employer intentionally discriminates against an employee who is a member of a protected class
False
T/F
Gender can always be a determining factor in an employer’s decision to hire or fire or promote an employee
False
T/F
Under the Equal Pay Act of 1963 , all of the women on an employer’s staff must be paid the same as all of the men
False
T/F
An employer is not liable for the sexual harassment of an employee by the employee’s supervisor
False
T/F
It is unlawful for an employer to retaliate against an employee who has opposed a discriminatory employment practice
True
MC
Hoppy, who works as an employee for imperial power corporation, suffers an injury in an accident. Hoppy will be compensated under state workers’ compensation laws
only if the injury occurred on the job
MC
Over a forty-year period, Ewa worked in a variety of jobs. She was also occasionally unemployed, briefly hospitalized, and suffered a temporary disability. She retired last year. The key law on all of these subjects is
the Social Security Act
MC
Fruits and Vegetables Inc., employs hundreds of seasonal and permanent workers both skilled and unskilled in seven states. Under the Immigration Act of 1990, Fruits and veggies can hire illegal immigrants
under no circumstances
MC
Detailed Designs, an architectural firm, wants to hire Eduardo, a noncitizen. A temporary work visa is most likely to be set aside for a noncitizen who is
a person of extraordinary ability
Research statistics corporation uses a merit sustem to pay its employees according to their job performance. Suki, a female and Troy, a male, are research employees with comparable jobs. Due to superior performance, Suki is paid more than troy. this is
not discrimination
T/F
A business that holds itself out as being a corporation may not be able to deny corporate status, even if it makes not attempt to incorporate
True
T/F
“Piercing the corporate veil” means revealing to shareholders the internal rules of corporate management
False
T/F
A director usually serves on a corporation’s board for a life term
False
T/F
A board of directors can never conduct business outside a formal meeting
False
T/F
A director may not sit on the board of more than one corporation at a time
False
MC
Inez and Jason are the shareholders and directors of Kleen Kustodial Co. Lily and Moe are Kleen’s officers. As in other corporations, the responsibility for the overall management of Kleen rests with
The board of directors
MC
Finn and Glenda want to form and do business as Hobby Crafts Corp. A corporation is a legal entity created and recognized by
State law
MC
The board of directors of Integral Components Corporation consists of Frida, Gayla and Hart. a quorum is the minimum number of these directors
who must be present to validly transact business
MC
Frawsty Corp distributes beverages in the greater Northwest. Frawsty’s board of directors can delegate some of its functions to
Frawsty’s officers
MC
Chip is a director of Diners restaurants Inc. Chip would breach his duty of loyalty if he
buys a controlling interest in Picnic Parlors Co., a competing firm
T/F
Insurance coverage is never effective until a formal written policy is issued
False
T/F
A person can insure something in which he or she has an insurable interest
True
T/F
All bailments include a bailee’s right to use the bailed property
False
T/F
Property voluntarily discarded by its owner with no intention of reclaiming it is abandoned property
True
T/F
A person who holds all rights in property owns the property in fee simple
True
MC
Gr8 Stores Inc. hires Haul-Way Company, a common carrier, to transport fifty large screen TVs from San Diego to Phoenix. En rout a pothole causes the truck to crash, damaging the goods. Liability for the damage most likely rests with
Haul-way only
MC
Uri borrows Vera’s boat to enjoy for a weekend. Uri negligently runs the boat aground near Water’s Edge beach, damaging the hull. Liable for the cost of repairing the boat is
Vera Only
MC
Roy leaves his Honda sport utility vehicle at Sam’s Auto Service for an oil change. This is a bailment for
the parties’ mutual benefit
MC
Ner Olav each buy certain quantities of oil to sell to Petro Refinery and agree to share storage costs until Petro can take delivery. The oil is commingled so that Nero’s oil cannot be distinguished from Olav’s. This is
confusion
MC
Lauren owns a 1976 Ford Mustang, which Mike customizes and details to Lauren’s specifications. The car earns several awards at regional vehicle customizing competition shows. The result of Mike’s efforts is
accession
T/F
In most states the seller of a new house warrants that it is fit for habitation
True
T/F
A quitclaim deed warrants more than any other deed
False
T/F
For a party to take by adverse possession, the party’s possession must not be hostile to the true owner’s rights
False
T/F
Taking private property for public use requires the payment of “just compensation”
True
T/F
A tenant cannot withhold rent for any reason
False
MC
Region Construction Company has a right to drive its trucks across Staple Business, Inc.’s property, which is adjacent to Region’s office. This right is
An easement
MC
Jamal signs a lease with Kelvin to occupy a house on Leech Lake in Minnesota for the summer. Jamal’s tenancy is
a fixed term tenancy
MC
Oak Grover Residences Inc owns apartment buildings. Pedro lease one of Oak Grove’s apartments. Pedro’s transfer of his interest in the lease to Quito for a period shorter than the lease term is
a sublease
MC
Rita believes that Shady Grove Apartments Inc her landlord, has violated the law in a way that entitles her to withhold the rent. This remedy is generally associated with a way that entitles her to withhold the rent. This remedy is generally associated with
breach of implied warranty of habitability
MC
The environmental Protection Agency has the authority to regulate “any air pollutant.” Fresher Air Group, a private organization that supports cleaner air, can file a suit against the EPA to
compel the EPA to act or prevent it from acting
T/F
Confiscation occurs when a government seizes a private property for a proper public purpose and awards just compensation
False
T/F
The act of state doctrine provides that only a head of state can make treaties with another nation
False
T/F
The chief aim of the EU and other trade organizations is to minimize trade barriers among their members
True
T/F
Under the principle of comity, a foreign business that deals with a US business may be subject to US law
True
T/F
Restrictions on exports may include tariffs
False
MC
The US is a member of the WTO, which, among its members
Minimizes trade barriers
MC
A clause in contract between Timber Corporation, a US company and Wang LTD, a Japanese business, specifies that disputes over the contract will be adjudicated in the US. This is
a choice of forum clause
MC
Chiang Ltd., a Chinese firm, imports its goods into the US and offers those goods for sale at “less than fair value.” This is
dumping
MC
The government of the US and the governments of other nations have the power to enforce their respective national laws within their borders. The power to enforce international law within the borders of all nations rests with
no court or international organization
MC
The government of Iran violates an international law. Persuasive tactics to remedy the situation fail. The ply recourse of other nations is to
take coercive action- sever relations, impose boycotts, go to war.
T/F
Ethics is concerned with the fairness or justness of an action.
True
T/F
An action may be legal and ethical.
True
T/F
Business ethics applies only to the owners, operators and employees of corporations
False
T/F
Corporations can be perceived as owing ethical duties to groups other than their shareholders
True
T/F
The most common reason that ethical problems occur in business is an overemphasis on long-run profit
False
MC
John is sales manager for Kleen ‘n Brite Products, Inc. Compared to John’s personal activities, his business activities most likely involve
More complex ethical issues
MC
Kennedy Capital Corporation provides other firms with funds to expand operations. If Kenney strictly complies with existing laws, the firm will
fulfill some business ethics obligations
MC
Peak & Vale Accountants provides other firms with accounting services. Questions of what is ethical involve the extent to which Peak & Vale has
an ethical duty beyond those duties mandated by law
MC
Any decision by the management of Fast-Food Franchise Corporation may significantly affect its
operators, owners, suppliers, the community, or society as a whole
MC
Lyle, VP of sales for Mi-T Electric Inc., adheres to Judeo-Christian religious ethical standards. With respect to their application, these standards are
absolute