Business Law 15th Edition

1) ace software co. signed a deal with gill associates, a partnership, and has extended credit to it. paul, a partner in gill associates, retires but his partners continue the business. in order to release paul from the debt owned to ace, which of the following must occur? a.the continuing partners

1) the charging order creditor is a lien creditor and is entitled to receive only the partners share of the partnership distributions. Answer: true the charging order creditor is a lien creditor and is entitled to receive only the partners share of the partnership distributions. Answer: true the charging order creditor is

1) the first amendment prohibits state regulation of deceptive commercial advertising. Answer: false there is no first amendment obstacle to federal or state regulation of deceptive commercial advertising. Answer: false there is no first amendment obstacle to federal or state regulation of deceptive commercial advertising. Answer: false there is no first amendment obstacle

1) dan has leased a site from mark for a period of 2 years. bob is interested in purchasing it and makes a great offer to him for the site. in this case: a.dan cannot sell the land because he does not have ownership. b.dan cannot sell the land, unless he stays

1) the insured is not entitled to recover under a property insurance policy if she had an insurable interest at the time the policy was purchased but did not have an insurable interest the time the loss occurred. Answer: true if an insurable interest existed when the holder thereof purchased the

1) questions of proximate cause assume the existence of _____. a.intervening cause b.strict liability c.actual cause d.comparative fault answer: cquestions of proximate cause assume the existence of actual cause. proximate cause concerns the required degree of proximity or closeness between the defendants breach and the injury it actually caused. answer: cquestions of proximate cause assume

1) in some circumstances, article 3 allows a person to become a holder by negotiation, even though the transfer of possession is involuntary. Answer: true in certain circumstances, revised article 3 allows a person to become a holder by negotiation even though the transfer of possession is involuntary. Answer: true in certain

1) article 2 of the ucc mandates that the parties to a sales contract state in specific and unambiguous language the exact terms of the contract. otherwise, courts will declare the contract unenforceable. Answer: false the code recognizes the fact that parties to sales contracts frequently omit terms from their agreements

1) article 2 of the ucc determines the rights of the seller, the buyer, and third parties irrespective of who has title at any given moment. Answer: true the law of sales of goods is codified in article 2 of the uniform commercial code. it covers aspects such as the rights

1) if a $100 replacement part for a piece of manufacturing equipment is sold to a manufacturing plant, the magnuson-moss act does not apply to the sale. Answer: true the magnuson-moss warranty act of 1975 mainly applies to written warranties for consumer products (personal property that is ordinarily used for personal,

1) where covered and non-covered peril join to cause a loss, and the covered peril plays the dominant role in such loss, then the policy: a.will provide coverage, because of the dominant role played by the covered peril. b.will not provide coverage, because of the presence of the excluded peril. c.will provide coverage,

1) when an offer is unclear about the form of acceptance it requires, ideally it must not be accepted. Answer: false when an offer is unclear about the form of acceptance it requires, the offer may be accepted in any manner that is reasonable in light of the circumstances surrounding the

1) the obligation of an acceptor is: a.to make an unconditional promise to pay a fixed amount of money and is responsible for making good on that promise. b.to pay the check according to its terms at the time he issued it. c.to pay the draft according to the terms at the time

1) corporations may be held criminally liable even in the absence of proof that high corporate officers ordered or acquiesced in the offense charged. Answer: true recognizing the problem that it may be impossible to prove that any higher level corporate official was involved in corporate offenses, the courts generally follow

1) adam decides to eat food despite knowing that it is adulterated and brags about it to dee. later adam falls sick from infection. adam sues the supplier of the said food for injury suffered by him. the defense which can be taken by the food supplier is: a.contributory negligence. b.assumption of

1) speaking generally, a quasi-contract applies where there has been foreseeable reliance on an express promise. Answer: false the elements of promissory estoppel are a promise that the promisor should foresee is likely to induce reliance, reliance on the promise by the promisee, and injustice as a result of that reliance. Answer:

1) an agreement can be illegal even if no statute specifically states that such an agreement is illegal. answer: true an agreement can be illegal even if no statute specifically states that that particular sortof agreement is illegal, based on the circumstances of the case. answer: true an agreement can be illegal

1) daniel is a senior at state university. brian, daniels father, is concerned about daniels study habits, given that daniel spends most of his evenings at the campus pub instead of the library. brian promises daniel that he will send him on an expense-paid trip to europe after his graduation if

1) which of the following is protected by copyright laws in computer programs? a.organization b.structure c.source code d.presentation of information answer: c copyright law protects a programs object code (program instructions that are machine (readable but not intelligible to humans) and source code (instructions intelligible to humans) of a computer program. answer: c copyright law protects

1) the equitable remedy of specific performance is most likely to be awarded by a court in which of the following circumstances? a.sale of a da vinci original where the seller refuses to deliver b.sale of a perfume bottle which the seller refuses to deliver c.a promisees failure to perform at a charity

1) a sole proprietorship is a legal entity separate from its owner. Answer: false a sole proprietorship is not a legal entity. Answer: false a sole proprietorship is not a legal entity. Answer: false a sole proprietorship is not a legal entity. 2) to encourage people to cancel illegal contracts, courts will allow a

1) amy is hired by bigmart as a cashier. at the time of hiring, amy is required to sign an arbitration agreement under which she agreed to settle any and all claims she might have relating to her employment by final and binding arbitration before a neutral arbitrator and in

1) the basic recovery for copyright infringement is only the owners actual damages. Answer: false the basic recovery for copyright infringement is only the owners actual damages plus the attributable profits received by the infringer. Answer: false the basic recovery for copyright infringement is only the owners actual damages plus the attributable

1) for federal district court diversity jurisdiction to exist, the amount in controversy must exceed $500,000. answer: false diversity jurisdiction exists when (1) the case is between citizens of different states (2) the amount in controversy exceeds $75,000. answer: false diversity jurisdiction exists when (1) the case is between citizens of different

1) june included an exculpatory clause in the lease agreement for her house that may was renting. during her lease period, may slipped and fell on the staircase which was made of faulty and rotten floorboards. can may recover damages from june if she files a lawsuit? a.yes, because june is responsible

1) the only manner in which a request for prompt or current shipment of goods can be honored is by a prompt or current shipment of the goods to the buyer. Answer: false the code states that an order requesting prompt or current shipment of goods may be accepted either by

1) if a term is left open in a sale of goods contract, that open term or gap can be filled by inserting a presumption found in the uccs gap-filling rules. Answer: true if a term is left open in a contract that meets these two standards, that open term or

1) the primary corporate objective is to make money for the shareholders. Answer: true the traditional objective of the business corporation has been to enhance corporate profits and shareholder gain. Answer: true the traditional objective of the business corporation has been to enhance corporate profits and shareholder gain. Answer: true the traditional objective

1) the importance of the terms fob and fas in contracts for the sale of goods is that they obligate the buyer to pay immediately upon delivery of the goods. Answer: false if the delivery term of the contract is fob or fas the place at which the goods originate,the seller

1) checks and drafts are: a.documents required to evidence the shipment of goods. b.documents which detail the transaction between a seller and a buyer. c.orders to another person to pay money to a third person. d.promises to pay someone money. answer: c checks and drafts are orders to another person to pay money to a

1) baronial company plans to make a registered offering of its preferred shares pursuant to the securities act of 1933. after filing a registration statement with the securities and exchange commission but prior to its effective date, which of the following will violate section 5 of the securities act of

1) ruth purchased a property insurance policy from abc insurance (abc). this policy covered ruths airplane and the policy limits were $300,000. a fire broke out on january 1, 2006, when the airplane was stored in its hangar, completely destroying the airplane. there was suspicious evidence that the fire had

1) there is no tort liability for fraud or deceit where the defendant did not actively make a false statement, but instead merely failed to disclose something. Answer: false a person is liable under another form of malice-the reckless disregard for the truth. Answer: false a person is liable under another form

1) if the debtor defaults on his agreement with the creditor, one of the creditors options is to repossess the collateral and then sell it. Answer: true if the debtor defaults, the secured creditor may either forget the collateral, and sue the debtor on his note or promise to pay; repossess

1) on may 1, ida makes a written offer to miranda for the sale of idas car. on may 2, ida mails miranda a letter revoking the offer. on may 3, ida telephones miranda to tell her that she is revoking the offer. on may 4, miranda learns that ida

1) the probate process involves collecting the decedents property, paying off debts, and distributing the remaining property to those who will inherit it under his will. answer: true when a person dies, an orderly procedure is needed to collect his property, settle his debts, and distribute any remaining property to those

1) article 9 of uniform commercial code deals with provisions regarding security interests involved in a personal property. answer: true the subject of security interests in personal property is covered by article 9 of the ucc answer: true the subject of security interests in personal property is covered by article 9 of

1) as per the model nonprofit corporation act (mnca), a nonprofit corporation need not have members for its existence. answer: true as per the model nonprofit corporation act (mnca), a nonprofit corporation need not have members for its existence. answer: true as per the model nonprofit corporation act (mnca), a nonprofit corporation

1) a drawer whose bank paid checks over a stop-payment order may not be entitled to have his account recredited, if he is unable to show he suffered any loss. Answer: true the drawer-customer has the burden of establishing the fact and amount of the loss. to show a loss, the

1) the principle of employment at will says that either party can terminate an employment contract of indefinite duration. Answer: true the employment at will rule says that either party can terminate an employment contract of indefinite duration. Answer: true the employment at will rule says that either party can terminate an

1) which of the following are frequently used to cure technical defects in the chain of title to property? a.insurable deeds b.quitclaim deeds c.general warranty deeds d.special warranty deeds answer: b a quitclaim deed conveys whatever title the grantor has at the time he executes the deed. quitclaim deeds are frequently used to cure technical

1) tina cosigns a promissory note at globe bank for $500.00 for her friend tom. tom defaults on the loan, and globe bank collects $500.00 from tina. tina then collects $500.00 from tom. tina could collect money from tom because of her right of _____. a.subrogation b.reimbursement c.contribution d.attachment answer: b if the surety performs

1) the principal of constructive eviction is applicable only to commercial property. Answer: false the doctrine of constructive eviction applies to both residential and commercial property. Answer: false the doctrine of constructive eviction applies to both residential and commercial property. Answer: false the doctrine of constructive eviction applies to both residential and commercial

1) andrea hired jack to be the sales agent for her paintings. however, in a months time, she terminated the agency with jack. harold, a customer who had dealt with jack earlier, was not aware of the termination. harold approached jack to buy a painting and wrote him a check of

1) when two or more business entities conspire to monopolize a relevant market, section 2 of the sherman act may be violated. Answer: true when two or more business entities conspire to monopolize a relevant market, section 2 of the sherman act may be violated. Answer: true when two or more business

1) generally, corporate acceptance of preincorporation subscriptions occurs by action of the: a.board of directors after incorporation. b.promoters during their issuance. c.board of directors during their issuance. d.promoters before incorporation. answer: a generally, corporate acceptance of preincorporation subscriptions occurs by action of the board of directors after incorporation. answer: a generally, corporate acceptance of preincorporation subscriptions

1) in the absence of a decision by the members of an llc, any member can demand the distribution of profits prior to the dissolution of the llc. Answer: false no member of an llc is entitled to a distribution of profits prior to the dissolution of the llc, unless the

1) warranties do not apply without the indorsement of the transferor. Answer: false although contractual liability often furnishes a sufficient basis for suing a transferor when the party primarily obligated does not pay, warranties are still important. first, they apply even when the transferor did not indorse. Answer: false although contractual liability

1) the expansion of corporate criminal liability in imputing the criminal intent of employees to the corporation falls under the scope of: a.mens rea. b.presumption of innocence. c.double jeopardy. d.respondeat superior. answer: d under the doctrine of respondeat superior, the criminal intent of the employee is imputed to the corporation. this makes corporations more accountable

1) what is the usual ucc time limitation for claiming express and implied warranty after the sale of a product? a.12 months b.2 years c.4 years d.5 years answer: c the usual ucc statute of limitations for express and implied warranty claims is four years after the seller offers the defective goods to the buyer. answer:

1) short-term certificated options that are usually transferable are referred to as: a.options. b.warrants. c.bonds. d.rights. answer: drights are short-term certificated options that are usually transferable. answer: drights are short-term certificated options that are usually transferable. answer: d rights are short-term certificated options that are usually transferable. 2) what does the term grumbling acceptance mean? a.accepting the offer by

1) if no agreement is made regarding the place of delivery, then the goods are to be delivered at the sellers place of business. answer: true the buyer and seller may agree on the place where the goods will be delivered. if no such agreement is made, then the goods are

1) the judicial standard of review used in cases involving informal agency adjudications or rulemaking is the: a.substantial evidence test. b.beyond reasonable doubt review. c.de novo review. d.arbitrary and capricious test. answer: d the judicial standard of review used in cases involving informal agency adjudications or rulemaking is the arbitrary and capricious test. answer: d the judicial standard

1) melissa hurls a rock with the intention to hit dave, with whom she has just fought. the rock hits stacey, instead, who is sitting next to dave. melissa is liable for battery under the clause of: a.conversion. b.private nuisance. c.actual malice. d.transferred intent. answer: d under a concept known as transferred intent, a defendant who

1) which of the following is used by sellers to eliminate any kind of liability that may be claimed by an injured buyer? a.warranty b.disclaimer c.warning d.advertisement answer: ba product liability disclaimer is a clause in the sales contract whereby the seller attempts toeliminate liability it might otherwise have. if a disclaimer is effective,

1) the _____ requires a public company to disclose whether it has adopted a code of ethics for senior financial officers, and to disclose any change in the code or waiver of the codes application. a.davis-bacon act b.goldwater-nichols act c.sarbanes-oxley act d.certiorari act answer: c the sarbanes-oxley act requires a public company to disclose whether

1) books are us (bu), a bookstore, is being sued for defamation after it sold a book containing false, defamatory statements about the plaintiff. what is bus best defense to this lawsuit? a.bu is not the publisher of the book. b.bu did not intend to harm the plaintiff. c.bu had no knowledge of

1) the toxic substances control act gives the epa the authority to regulate the production and use of agricultural chemicals such as insecticides. Answer: false the federal insecticide, fungicide, and rodenticide act (fifra) gives epa the authority toregister pesticides before they can be sold, to provide for the certification of appliers

1) under the securities act of 1933, the registration of securities which are offered to the public in interstate commerce is: a.directed toward minimizing investor exposure to financially risky securities. b.not required unless the issuer is a corporation. c.mandatory unless the cost to the issuer is prohibitive as defined in the sec regulations. d.required

1) sharon entered into a preincorporation share subscription agreement on january 1, 2006. the corporation was formed on february 1, 2006. what is the status of this agreement on march 1, 2006, under the model business corporation act? a.it is binding only if sharon has already paid for the shares. b.it is

1) straight voting permits a single holder of more than 30 percent of the shares of a corporation to dominate the management of the corporation. Answer: false straight voting permits a holder of more than 50 percent of the shares of a corporationto dominate the corporation by electing a board of

1) edna boyle contracts with the melonville times to advertise her garage sale to be held this saturday. the ad is to run in the friday and saturday morning edition. if the ad does not run on time, the melonville times agrees to pay edna $50.00. this liquidated damages clause is

1) speedster is an automobile manufacturing company that has a factory in seattle, washington. it has placed keith mcshane, the operations head of the factory, in charge of investigating the firms decision whether to move the factory to qingdao, china. keith is against the idea of the factory relocating to qingdao

1) an implied warranty of habitability in the leased property makes the landlord the insurer of the tenants safety. Answer: false an implied warranty of habitability, as the name implies, makes the landlord responsible for making the residential premises habitable. Answer: false an implied warranty of habitability, as the name implies, makes

1) a hotelkeeper is liable for loss or damage to property if it can be proved that it was caused by: a.the bailors negligence. b.an act of a government authority. c.the nature of the goods. d.the bailees own conduct. answer: d a hotelkeeper is required to extend reasonable care for goods that guests keep. if

1) bettina knows that she is going bankrupt. one month before the filing of her voluntary petition, bettina sells a painting worth $50,000 to her brother for $100. this is legal under chapter 7. however, if bettina had simply given her brother $49,900, the transfer would have been voidable. answer: false

1) a mining partners interest is not freely transferable. Answer: false a mining partners interest is freely transferable. Answer: false a mining partners interest is freely transferable. Answer: false a mining partners interest is freely transferable. 2) a states courts may exercise jurisdiction over a foreign corporation that has contacts in the state. Answer: true

1) rebecca, a minor, rented an apartment from jones for a period of one year when she had no place to stay. she disaffirmed the contract after four months, though she paid rent only for the first two months. which of the following is true of the case? a.jones can recover

1) which of the following is true about the fifth amendment and the production of records? a.it would allow a bogus, inc., officer who has custody of bogus records to resist a subpoena demanding production of those records if the contents of the records could incriminate that officer personally. b.it would prevent

1) an agreement that violates legislative and court-made rules and creates threat to public policy shall be denied enforcement on the ground of illegality. answer: true agreements that are found to violate legislative and court-made rules and create threat to public policy are considered to be illegal in nature. answer: true agreements

1) unless the articles of incorporation state otherwise, directors cannot be removed with or without cause. answer: false modern corporation statutes permit shareholders to remove directors with or without cause. however, most corporations have provisions in their articles authorizing the shareholders to remove directors only for cause. answer: false modern corporation statutes

1) if the parties agree on a reasonable amount of damages that will be paid to the injured party, this amount is known as _____. a.liquidated damages b.unconscionable damages c.penal damages d.unenforceable damages answer: a if the parties agree on the amount of damages that will be paid to the injured party, this amount is

1) in deciding whether consideration necessary to form a contract exists, a court must determine whether: a.the consideration given by each party is of roughly equal value. b.the consideration conforms to the subjective intent of the parties. c.the consideration has sufficient monetary value. d.there is mutuality of consideration. answer: d in order to be a

1) the ____ amendment forbids cruel and unusual punishments. a.first b.eighth c.fourteenth d.fifteenth answer: b the eighth amendment forbids cruel and unusual punishments. this prohibition furnishes, for example, the constitutional basis for judicial decisions establishing limits on impositionof the death penalty. answer: b the eighth amendment forbids cruel and unusual punishments. this prohibition furnishes, for example,

1) a voluntary petition under chapter 7: a.cannot be filed by an insurance corporation. b.requires that the debtors debts exceed his assets by $5000. c.requires that the debtor have at least three creditors. d.cannot be made by an individual. answer: a a voluntary petition in bankruptcy may be filed by an individual, a partnership, or

1) the right of a lienholder to possess goods does not automatically give the lienholder the right to sell the goods or to claim ownership if his charges are not paid. Answer: true the right of a lienholder to possess goods does not automatically give the lienholder the right to sell

1) if a check is drawn pay to the order of maria and maria indorses it pay to the order of jay, maria. this falls under: a.blank indorsement. b.restrictive indorsement. c.special indorsement. d.simple indorsement. answer: ca special indorsement contains the signature of the indorser along with words indicating to whom, or to whose order,

1) pratt, owner of an appliance store, has a garage sale at his home where he sells old furniture and books. he sells a set of books to his neighbor, stacey. pratt is considered a merchant under article 2 of the ucc in selling the books to stacey. answer: false the

1) a drawer can claim alteration as a reason for not charging a particular check to his account, even if the drawer has contributed to the alteration in some way. answer: false if the drawer is negligent and contributes to the forgery or alteration, he may be barred from claiming it

1) a revocation is effective at the time it is dispatched by the offeror. Answer: false the general rule of revocation is that it is effective only when it is actually received bythe offeree. Answer: false the general rule of revocation is that it is effective only when it is actually received

1) under the mbca, only directors of a corporation are entitled to mandatory indemnification rights. Answer: false under the mbca, officers and employees who are not directors are entitled to the samemandatory indemnification rights as directors. Answer: false under the mbca, officers and employees who are not directors are entitled to the

1) an agency coupled with an interest cannot be terminated by the principals revocation of the agency. answer: true an agency coupled with an interest is not terminated by (1) the principals revocation, (2) the principals or the agents loss of capacity, (3) the agents death, and (4) the principals death. answer:

1) which of the following is true of the contract clause? a.it applies to laws that impair contracts made after the laws passage. b.it imposes tougher standards on government contracts than on private contracts. c.it does not apply to government contracts. d.it has gradually increased in importance from the 19th century to the 20th

1) one of the elements that must be demonstrated before a challenged tying agreement will be held to violate section 1 of the sherman act is that: a.the seller commands 10 percent of market in the tied product category. b.the tying product is available for purchase without the agreement. c.the tying agreement involves

1) the standard of proof in a criminal case is: a.proof by a preponderance of the evidence. b.proof beyond a reasonable doubt. c.proof that is more likely than not. d.proof beyond the presumption of innocence. answer: b defendants in criminal cases are presumed innocent until proven guilty. the due process clauses require the government to

1) which of the following is true of a sales contract under the ucc? a.the courts cannot fill any gaps in the contracts. b.the court needs to find if the parties intended a contract. c.an intent to contract exists even in the parties were unable to reach an agreement. d.all terms of contract need

1) which of the following would indicate a rejection under the mirror image rule? a.inquiry regarding terms b.material changes to offer c.grumbling acceptance d.present intent to accept answer: b under the mirror image rule, only significant material changes between an offer and an acceptance would indicate an implied rejection of the offer. answer: b under the

1) if grant promises to sell his regular season football tickets to carson on condition that indiana university wins the rose bowl, indianas winning the rose bowl is an express condition of grants duty to sell the tickets. Answer: true an express condition is a condition that is specified in the language

1) according to the u.s. constitution treaties made by the president with foreign governments and approved by two-thirds of the u.s. senate validate inconsistent state and federal laws. Answer: false according to the u.s. constitution, treaties made by the president with foreign governments and approved by two-thirds of the u.s. senate

1) the total fairness test permits a shareholder to require the corporation to purchase his shares at a fair price. Answer: false a right of appraisal permits a shareholder to require the corporation to purchase his shares at a fair price. Answer: false a right of appraisal permits a shareholder to require

1) which of the following is an example of restrictive endorsements recognized under article 3? a.pay to bruce zucker in trust for jay zucker. b.pay to bruce zucker only. c.pay to jay zucker on the condition that he completes construction of my house by november 1, 2012. d.pay to the order of my account.

1) constitutional procedural safeguards such as the exclusionary rule protect respondents of the administrative adjudication process. Answer: false constitutional procedural safeguards such as the exclusionary rule do not protect respondents of the administrative adjudication process. Answer: false constitutional procedural safeguards such as the exclusionary rule do not protect respondents of the administrative

1) section 11 of the 1933 act provides civil liabilities for damages when a 1933 act registration statement on its effective date misstates or omits a material fact. Answer: true section 11 of the 1933 act provides civil liabilities for damages when a 1933 act registration statement on its effective date

1) much of the information contained in a typical monthly credit card statement sent to a consumer is compulsorily required by the truth in lending act. answer: true much of the information contained in a monthly credit card statement is compelled by the truth in lending act (tila). answer: true much of

1) the implied warranty of habitability requires landlords to maintain residential rental property in a statutorily defined, reasonably safe and healthy condition. Answer: true most states enact this doctrine for residential property. Answer: true most states enact this doctrine for residential property. Answer: true most states enact this doctrine for residential property. 2) in

1) which of the following is true about a wrongfully dissociated partner? a.he may perform the winding up. b.he may demand the partnership be dissolved. c.he is not entitled to the value of any of his partnership interest. d.he is entitled to his share of the partnership interest; minus the damages he caused the

1) joe is the personnel manager for the bfg corporation. joe hires employees for bfg. joe hires suzy as a management trainee. suzy is bfgs subagent. Answer: false sometimes, a party appointed by an agent is not a subagent because the appointing agent only had authority to appoint agents for the

1) a method of alternative dispute resolution in which a neutral third party helps the parties reach a resolution of the dispute by facilitating communication, clarifying areas of agreement, helping see each others viewpoints, suggesting settlement options, but who cannot make decisions that bind the parties, is called: a.conciliation. b.mediation. c.minitrial. d.arbitration. answer: b in

1) real property includes land but does not include residential buildings and permanent structures. Answer: false real property includes not only land but also things firmly attached to or embedded inland. buildings and other permanent structures thus are considered real property. Answer: false real property includes not only land but also things

1) which of the following doctrines often proves helpful to plaintiffs who bring a product liability lawsuit alleging negligence? a.res judicata b.res ipsa loquitur c.caveat venditor d.caveat emptor answer: bmodern discovery rules and the doctrine of res ipsa loquitur-the thing speaks for itself-helps plaintiffs establish a breach in case of negligence. answer: bmodern discovery rules

1) if a state law discriminates against interstate commerce, then the strictest scrutiny will be applied in determination of its constitutionality. Answer: true in a 1994 case, the supreme court ruled that if a state law discriminates against interstate commerce, the strictest scrutiny will be applied. Answer: true in a 1994 case,

1) if there is no time specified in contract by the parties, then it is presumed that performance shall be completed whenever possible. answer: false when no time for performance is stated or implied, performance must be completed within a reasonable time, as judged by the circumstances of each case. answer: false

1) the doctrine of standing to sue requires that, in order to be able to mount a civil suit, a plaintiff must have some direct and considerable stake in the outcome of the suit. Answer: true the doctrine of standing to sue requires that the plaintiff have some direct, tangible, and

1) the u.s. constitution recognizes the states power to make law in certain areas. Answer: true the u.s. constitution structures the relationship between the federal government and thestates around the system of federalism, recognising the states power to make law in certainareas. Answer: true the u.s. constitution structures the relationship between the

1) a promissory note is a credit instrument. Answer: true the promissory note is a credit instrument; it is used in a wide variety of transactions in which credit is extended. Answer: true the promissory note is a credit instrument; it is used in a wide variety of transactions in which credit

1) chapter 13 bankruptcy petitions may be either voluntary or involuntary. Answer: false chapter 13 proceedings are initiated only by the voluntary petition of a debtor filed in the bankruptcy court. Answer: false chapter 13 proceedings are initiated only by the voluntary petition of a debtor filed in the bankruptcy court. Answer: false

1) according to the magnuson-moss warranty act of 1975, a consumer is a buyer or transferee who either uses the product himself or sells it to another consumer. Answer: false according to the magnuson-moss warranty act of 1975, a consumer is a buyer or transferee who does not use the product

1) joe went to a music store; misrepresenting himself as james to the store attendant. he buys a plasma television on credit, charging it to james's account. he then sells that set to mike. mike buys the set in good faith. which of the following is true in such cases? a.the

1) under the mailbox rule, the acceptance of an offer is effective at the time the acceptance is dispatched unless: a.both the offeror and offeree are merchants. b.the offer proposes a sale of real estate. c.the acceptance is not in the authorized mode of communication. d.the acceptance is lost or never reaches the offeror.

1) if the offeree accepts the offerors terms while complaining about them, it is called a grumbling acceptance. answer: true when an offeree accepts an offer while complaining about it, it is called a grumbling acceptance. answer: true when an offeree accepts an offer while complaining about it, it is called a

1) except for the liability of limited partners, limited partnerships and lllps are identical. Answer: false except for the liability of general partners, limited partnerships and lllps are identical. Answer: false except for the liability of general partners, limited partnerships and lllps are identical. Answer: false except for the liability of general partners,

1) david, a debtor, owes debts to creditors paul, mark, and gary. paul, mark, and gary agree with each other and with david to release him from his debts, in exchange for his promise to pay paul, mark, and gary 75 percent of the amount he owes each of them.

1) a partner in a partnership firm should make all attempts to take decisions that are in the best interest of the firm. this is related to the concept of _____. a.duty to serve b.duty to act within actual authority c.duty of care d.duty to account answer: cin transacting partnership business, each partner owes

1) what are legal rules in prior cases called? a.statutes b.precedents c.first impressions d.uniform laws answer: baccording to the doctrine of stare decisis, like cases must be decided alike. appropriate legal rules from earlier cases are called precedents. answer: baccording to the doctrine of stare decisis, like cases must be decided alike. appropriate legal rules

1) debra allowed frank to stay in the guesthouse located at the rear of her property. debra and frank never discussed rental terms. it is very likely a tenancy at will has been created. Answer: true a tenancy at will occurs when property is leased for an indefinite period of time

1) one strength of the instrumentalist attitude: a.is its willingness to adapt the law to further the social good. b.is that legal validity and moral validity always remain separate. c.is that the natural law always remains unworkable. d.is that it views the law as an unchanging rule that deserves obedience. answer: a an instrumentalist attitude

1) one may also challenge a patents validity without first being sued for infringement by filing a declaratory judgment action that seeks a court ruling of invalidity. Answer: true one defense to a patent infringement is that a patents validity can be challenged by filing a declaratory judgment action that seeks

1) toywood inc., headquartered in vermont, specializes in manufacturing non-toxic wooden toys in its two mechanized units in vermont and new hampshire. its flagship store is located in philadelphia, pa. it will be considered a(n) _____ corporation in pa. a.domestic b.alien c.domicile d.foreign answer: d a corporation is a domestic corporation in the state that

1) the law governing general partnerships is primarily found in the revised uniform partnership act (rupa). answer: true the american common law of partnership has been largely replaced by statutory law. every state has a statute on partnership law. the revised uniform partnership act (rupa) of 1994, with the 1997 amendments,

1) in some cases, both principal and agent sometimes are liable for an agents torts. Answer: true sometimes both principal and agent are liable for an agents torts. here, the parties are jointly and severally liable. Answer: true sometimes both principal and agent are liable for an agents torts. here, the parties

1) firms that acquire monopoly power in a given market comply with the antitrust laws objective of promoting competitive market structures. answer: false firms that acquire monopoly power in a given market have defeated the antitrust lawsobjective of promoting competitive market structures. answer: false firms that acquire monopoly power in a given

1) in order to prevent debtors from misusing the provisions of the bankruptcy code, the scope of dismissal of a bankruptcy petition has been widened to a broader interpretation of abuse, and not just restricted to substantial abuse. Answer: false in 1984, congress, concerned that too many individuals with an ability to

1) the following statements pertain to alleged violations of section 1 of the sherman act. which statement is accurate? a.although tying agreements are classified as per se violations of section 1, the judicial treatment given to them differs from pure per se treatment. b.because vertical restraints on distribution necessarily harm intrabrand competition, they

1) there is usually no liability of injurious falsehood for false statements that are made negligently and in good faith. Answer: true defendants are protected from defamation laws in certain cases, such as, false statements made in good faith. Answer: true defendants are protected from defamation laws in certain cases, such as,

1) the ends justify the means: this statement reflects the utilitarian ethical theory. Answer: true utilitarian theory tries to achieve the highest level of satisfactions over dissatisfactions and justify the maximum good. Answer: true utilitarian theory tries to achieve the highest level of satisfactions over dissatisfactions and justify the maximum good. Answer: true

1) gary and felix are partners in a general partnership. gary does 2/3rd of the partnership work, while felix does 1/3rd of the work. last year the partnership earned $300,000 in profits. under the rupa, how much of the $300,000 is felix entitled to receive? a.$200,000 b.$150,000 c.$100,000 d.$250,000 answer: b unless there is an agreement

1) when a tenant remains in possession of the property after the expiration of a lease, a tenancy at will occurs. Answer: false a tenancy at sufferance occurs when a tenant remains in possession of the property (holds over) after a lease has expired. Answer: false a tenancy at sufferance occurs when

1) a right of first refusal on a share certificate allows the corporation to match the offer that a selling shareholder receives for his shares. Answer: true a right of first refusal on a share certificate allows the corporation to match the offer that a selling shareholder receives for his shares. Answer:

1) a transferor of a negotiable instrument for consideration warrants to his transferee that the negotiable instrument has not been altered. answer: true if an unaccepted draft (such as a check) is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, then the person

1) strictly speaking, a contract has nothing to do with the personal intent of the parties. Answer: true according to the objective theory of contracts, intent is judged by objective standard. Answer: true according to the objective theory of contracts, intent is judged by objective standard. Answer: true according to the objective theory

1) only when the promoter is liable on the preincorporation contract is the other party liable on the contract. answer: true only when the promoter is liable on the preincorporation contract is the other party liable on the contract. answer: true only when the promoter is liable on the preincorporation contract is

1) lmnop corp. has been convicted under the sherman act for two distinct and separate violations. lmnop may be fined as much as _____ for these two violations. a.$50 million b.$100 million c.$200 million d.$150 million answer: c the sherman act states that corporations convicted of violating it may be fined as much as$100 million

1) one of the two principal regulatory components of the 1933 act is: a.distribution provisions. b.restricted provisions. c.registration provisions. d.disclosure provisions. answer: c the 1933 act has two principal regulatory components: (1) registration provisions and (2) liability provisions. answer: c the 1933 act has two principal regulatory components: (1) registration provisions and (2) liability provisions. answer: c

1) what is emancipation? a.termination of a case of fraud and misrepresentation. b.termination of a bargain that is considered void. c.termination of parental rights to control a child. d.termination of necessaries in a quasi-contractual case. answer: c emancipation is the termination of a parents right to control a child and receive services and wages from

1) the reduced sales of martha stewart branded goods at k-mart after she was accused of insider trading is an example of the strength of the profit maximization theory. answer: true profit maximization theory requires that decision makers consider the rights protected by rights and justice theories. the reduced sales show that

1) there is/are no _____ for violating the provisions of the clayton act. a.injunctive relief b.treble damages c.cease-and-desist orders d.criminal penalties answer: d because the clayton act focuses on probable harms to competition, there are no criminal penalties for violating its provisions. answer: d because the clayton act focuses on probable harms to competition, there are

1) which of the following do a certified check and a cashiers check have in common? a.the bank is primarily liable on each. b.the bank is secondarily liable on each. c.both are drawn by the bank on itself. d.technically, the bank is not liable to a holder of either kind of check. answer: a a

1) an exclusive right to sell listing means that a broker receives a commission on a sale of the property even if the seller found the buyer. Answer: true an exclusive right to sell contract provides the broker the exclusive right to sell a property for a specified period of time

1) promoters are personally liable on a preincorporation contract but are released from liability when the corporation adopts the contract. answer: false promoters remain liable on a preincorporation contract even after the corporations adoption of the contract, since adoption does not automatically release the promoter. answer: false promoters remain liable on a

1) abby promises to pay brian $50 if he will mow abbys lawn. brian does not promise to mow abbys lawn; however, later that day, brian completely and satisfactorily does mow abbys lawn. this is an example of a unilateral contract. Answer: true in unilateral contracts, only one party makes a promise. Answer: