Business Law with UCC Applications 14th Edition

Chapter 01 - Ethics, Social Responsibility, and the Law Chapter 1 Ethics, Social Responsibility, and the Law I. Key Terms Appretiare (p. 25) Morals (p. 5) Cost-benefit thinking (p. 19) Natural law (p. 5) Descriptive theory (p. 12) Neoliberalism (p. 8) Dyad (p. 16) Penumbra rights (p. 14) Ethic of responsibility (p. 16) Positive law (p. 6) Ethic

Answer Key-BLUCCA/14/e Part 1 Ethics, Law, and the Judicial system Chapter 1 Ethics, Social Responsibility, and the Law Opening Case Questions 1. Whether the quantification of non-monetary experiences is fair to those of us who cannot afford to pay for the privilege of being first in line depends upon the ethical theory

Chapter 10 - Capacity and Legality: The Final Elements Chapter 10 Capacity and Legality: The Final Elements I. Key Terms Abandoned (p. 239) Majority (p. 238) Affirmance (p. 242) Minority (p. 238) Blue laws (p. 246) Necessaries (p. 240) Capacity (p. 237) Noncompete agreement (p. 249) Conspiracy (p. 250) Nondisclosure agreement (p. 249) Disaffirm (p. 238) Public policy

ANSWER KEY Chapter 10 Capacity and Legality: The Final Elements Opening Case Questions 1. In most states the age of majority is 18 years. 1. In most states the age of majority is 18 years. 1. In most states the age of majority is 18 years. 2. A contract made by a minor is voidable by

Chapter 11 - Written Contracts and Cyber-Commerce Chapter 11 Written Contracts and Cyber-Commerce I. Key Words Acknowledgment (p. 266) Main purpose test (p. 259) Administrator (p. 258) Memorandum (p. 260) Antenuptial agreement (p. 259) Obligee (p. 259) Best evidence rule (p. 263) Obligor (p. 259) Collateral contract (p. 259) Parol evidence rule (p. 261) Condition precedent (p. 262) Part

ANSWER KEY Chapter 11 Written Contracts and Cyber-Commerce Opening Case Questions 1. The law known as the Statute of Frauds outlines those contracts that must be in writing tobe enforceable. 1. The law known as the Statute of Frauds outlines those contracts that must be in writing tobe enforceable. 1. The law known as the

Chapter 12 - Third Parties, Discharge, and Remedies Chapter 12 Third Parties, Discharge, and Remedies I. Key Terms Abandonment of Incidental beneficiary (p. 278) contractual obligations (p. 292) Incidental damages (p. 293) Actual damages (p. 293) Injunction (p. 295) Anticipatory breach (p. 292) Intended beneficiary (p. 277) Assignee (p. 279) Liquidated damages (p. 294) Assignment (p. 279) Mutual rescission

ANSWER KEY Part 2 Case Study 2 Sylvia Burwell, Secretary of Health and Human Services, et al. v. Hobby Lobby Stores, Inc., et al. (AKA The Hobby Lobby Case) 1. The chief arguments put forth to support the notion that for profit corporations can be covered by the Religious Freedom Restoration

ANSWER KEY Chapter 12 Third Parties, Discharge, and Remedies Opening Case Questions 1. In general, rights are assigned, and duties are delegated. Or to put it another way, an assignment involves a transfer of rights while a delegation involves a transfer of duties. 1. In general, rights are assigned, and duties are delegated. Or

Chapter 13 - Sales Contracts: Formation, Title, and Risk of Loss Chapter 13 Sales Contracts: Formation, Title, and Risk of Loss I. Key Words Auction with reserve (p. 321) Goods (p. 310) Auction without reserve (p. 321) Hybrid contract (p. 311) Bill of sale (p. 322) Identified goods (p. 323) Blended contract (p. 311) Insurable interest (p.

answer key Part 3 Sales and Consumer Protection Chapter 13 Sales Contracts: Formation, Title, and Risk of Loss The Opening Case Questions 1. This is how the text ansewers this question; To unravel this identity crisis, the court must determine the goal of the original contract by examining: (1) the language used

Chapter 14 Sales Contracts Rights, Duties, Breach, and Warranties Chapter 14 Sales Contracts Rights, Duties, Breach, and Warranties I. Key Words Carrier (p. 338) Merchant (p. 346) Commercial docket (p. 342) Merchantable goods (p. 346) Commercial unit (p. 335) Sales puffery (p. 345) Consequential damages (p. 348) Shipment contract (p. 335) Consumer products (p. 345) Special masters (p.

ANSWER KEY Chapter 14 Sales Contracts: Rights, Duties, Breach, and Warranties Opening Case Questions 1. The Seneys simply rented the bed for two weeks. The rental company actually retained title and along with title, all the warranties that went along with it. Certainly the Seneys had the option to purchase the bed,

Chapter 15 Product Liability and Consumer Protection Chapter 15 Product Liability and Consumer Protection I. Key Words Annual percentage rate (APR) (p. 367) Finance charge (p. 367) Bait-and-switch scheme (p. 361) Interstate commerce (p. 359) Balloon payment (p. 370) Intrastate commerce (p. 359) Buyers Guide (p. 361) Lemon law (p. 366) Cancellation form (p. 362) Mail

ANSWER KEY Part 3 Case Study 3 Bill Parrot v. Daimler Chrysler Corporation Arizona Supreme Court No. CV-05-0104-PR; Court of Appeals Division One No. 1 CA-CV 04-0121; Maricopa County Superior Court No. CV02-008392 1. It is true that stare decisis is at the central core of the authority of the

ANSWER KEY Chapter 15 Product Liability and Consumer Protection Opening Case Questions 1. The Federal Trade Commission protects consumers in a number of diverse ways: Here is how the text explains it: The Federal Trade Commission (has) the authority to oversee and eliminate deceptive and unfair practices in commerce. These powers include:

Chapter 16 - The Nature of Negotiable Instruments Chapter 16 The Nature of Negotiable Instruments I. Key Terms Acceptance (p. 384) Holder (p. 388) Acceptor (p. 388) Holder in due course (p. 388) Allonge (p. 392) Indorsee (p. 388) Assignment (p. 391) Indorsement in full (p. 394) Bank draft (p. 386) Indorser (p. 388) Bearer (p. 388) Installment

Part 4 NEGOTIABLE iNSTRUMENTS ANSWER KEY Chapter 16 The Nature of Negotiable Instruments Opening Case Questions 1. The lawsuit in this case involves negotiable instruments and is brought under the rules outlines in Article 3 of the Uniform Commercial Code entitled Negotiable Instruments (Sections 3-101 to 3-605). 2. Under the UCC 3-104 (f)

Chapter 17 Holders in Due Course, Defenses, and Liabilities Chapter 17 Holders in Due Course, Defenses, and Liabilities I. Key Terms Failure of consideration (p. 408) Personal defenses (p. 407) Holder (p. 401) Presentment (p. 413) Holder in due course (p. 401) Real defenses (p. 409) Holder in due course rule (p. 409) Shelter provision (p. 406)

ANSWER KEY Chapter 17 Holders in Due Course, Defenses, and Liabilities Opening Case Questions 1. A drawer is the person who signs the draft ordering payment. In this case that person would be Talcott. 1. A drawer is the person who signs the draft ordering payment. In this case that person would

Chapter 18 - BankDepositor Relationships and Cyber-Banking Chapter 18 BankDepositor Relationships and Cyber-Banking I. Key Terms ATM card (p. 429) Overdraft (p. 417) Bank (p.417) Payor bank (p. 426) Check 21 Act (p. 428) Presenting bank (p. 426) Collecting bank (p. 426) Provisional (p. 427) Debit card (p. 429) Regulation E (p. 430) Depositary bank (p. 426)

Part Four Case Study Chino Commercial Bank v. Brian D. Peters Questions for Analysis 1. Stare decisis prevails in this case but not until after both the plaintiff and the defendant make a critical error by misidentifying the proper law to apply in the case. Both parties identified the cases of

ANSWER KEY Chapter 18 Bank-Depositor Relationship and Cyber-Banking Opening Case Questions 1. According to the UCC a bank is "any person engages in the business of banking." (UCC section 1-201 [4]). 1. According to the UCC a bank is "any person engages in the business of banking." (UCC section 1-201 [4]). 1. According to

Chapter 19 - Insurance Chapter 19 Insurance I. Key Terms Add-on coverage (p. 452) Medicare (p. 454) Adhesion contracts (p. 456) No-fault insurance (p. 451) Annuity (p. 447) Ocean marine insurance (p.449) Beneficiary (p. 444) Ordinary life insurance (p. 446) Binder (p. 456) Peril (p. 442) Bodily injury liability insurance (p. 451) Personal injury protection Coinsurance (p. 448)

Part 5 iNSURANCE, SECURED TRANSACTIONS, AND BANKRUPTCY ANSWER KEY Chapter 19 Insurance The Opening Case Questions 1. The text explains dwelling insurance in the following way: Dwelling insurance will protect the actual structure (a single family dwelling, an apartment building, and so on) from damage caused by fire, wind, snow, ice, lightning and so

Chapter 02 - Sources of the Law Chapter 2 Sources of the Law I. Key Terms Administrative law (p. 47) Federal Register (p. 48) Articles of Confederation (p. 35) Judicial review (p. 47) Binding precedent (p. 46) Law (p. 31) Code (p. 42) Persuasive precedent (p. 48) Code of Federal Regulations Precedent (p. 46) (CFR) (p. 48) Preemption (p.

ANSWER KEY Chapter 2 Sources of the Law Opening Case Questions 1. Both the Establishment Clause and the Free Exercise Clause are inclued in the First Amendment to the Constitution. The difference between the two clauses can be explained by looking at the responsibility of and the limitations placed upon the federal

Chapter 20 Mortgages, Security Interests, and the 21st Century Financial Crisis Chapter 20 Mortgages, Security Interests, and the 21st Century Financial Crisis I. Key Terms Acceleration (p. 474) Home equity loan (p. 472) Adjustable-rate mortgage Interest-only mortgage (p. 469) (ARM) (p. 469) Inventory (p. 483) Asset-backed security (p. 477) Junior mortgage (p. 472) Assume the mortgage

ANSWER KEY Chapter 20 Mortgages and Security Interests Opening Case Questions 1. In this case the sellers were Michael and Charles Hines and the buyers were Rhonda Gumm and Timothy McCord. 2. In this case the mortgagors were National City Bank and Hines and Hines.3. National City Bank drew up the

Chapter 21 Bankruptcy Law: In Theory, in History, and in Practice Chapter 21 Bankruptcy Law: In Theory, in History, and in Practice I. Key Terms Automatic stay (p. 501) Impaired classes (p. 508) Case trustee (p. 500) Liquidation (p. 496) Confirmation (p. 508) Means test (p. 497) Debtor in possession (p. 506) Order for relief (p. 499) Disposable

Part Five Case Study Superior Savings Association v. City of Cleveland Questions for Analysis 1. The case of Superior Savings Association v. City of Cleveland clearly supports the core legal principle of stare decisis. The judge in this case cites more than twenty different cases as precedent, explains the application of

ANSWER KEY Chapter 21 Bankruptcy and Debt Adjustment Opening Case Questions 1. Hanover National Bank is the creditor in this case. Moyses is the defendant debtor in this case.2. The case was brought in federal court in the District Court in Tennessee. 1. Hanover National Bank is the creditor in this case.

Chapter 22 - Agency Law Chapter 22 Agency Law I. Key Terms Agency (p. 523) Master (p. 524) Agency coupled with Negligent hiring (p. 529) an interest (p. 543) Negligent retention (p. 529) Agent (p. 523) Negligent supervision (p. 529) Apparent authority (p. 537) Nondelegable duty (p. 529) Charitable immunity (p. 533) Partially disclosed principal (p. 535) Clerical malpractice (p.

Part 6 Agency, EmploymenT, and Labor Law ANSWER KEY Chapter 22 Agency Law Opening Case Questions 1. According to the text: Agency is a legal relationship in which one party, the agent, transacts business for and under the control of the second, the principal. The third party is that individual with

Chapter 23 - Employment Law Chapter 23 Employment Law I. Key Terms Affirmative action (p. 567) Metadata (p. 572) Business necessity (p. 565) Military caregiver leave (p. 562) Collective bargaining agreement (p. 550) Qualifying exigency leave (p. 562) Constructive discharge (p. 557) Quid pro quo sexual Disability (p. 569) harassment (p. 567) Disclaimer (p. 554) Reasonable accommodation (p.

ANSWER KEY Chapter 23 Employment Law Opening Case Questions 1. The plaintiff, deputy DA Ceballos, filed a grievance that stated that his superiors, including Garcetti, the District Attorney of Los Angeles County, had retaliated against him for persisting in a claim that a search warrant served by the DAs office had

Chapter 24 - Labor Law Chapter 24 Labor Law I. Key Terms Arbitration (p. 590) Labor union (p. 579) Bargaining unit (p. 587) Right-to-work laws (p. 587) Closed shop (p. 586) Secondary boycott (p. 588) Constructive discharge (p. 586) Unfair labor practices (p. 584) Featherbedding (p. 589) Union shop (p. 586) Hot-cargo contract (p. 589) II. Learning Objectives 1. Relate the

Part Six Case Study Renken v. Gregory Questions for Analysis 1. The case of Renken v. Gregory clearly supports the core legal principle of stare decisis. The courts decsion relies heavily on the principles outlined by the court in the Ceballos v. Garcetti case, so much so, in fact, that the two cases

ANSWER KEY Chapter 24 Labor-Management Relations Law Opening Case Questions 1. The College Athletes Players Association (CAPA or the Union) filed a petition with the National Labor Relations Board, asking the NLRB to permit the football players at Northwestern University (NU) to vote on whether to unionize. National Labor Relations Board, asking

Chapter 25 The Business Person: An Introduction Chapter 25 The Business Person: An Introduction I. Key Terms Aggregate theory (p. 605) Limited liability partnership (p. 608) Capital contribution (p. 611) Limited partner (p. 607) Continuity of existence (p. 605) Limited partnership (p. 607, 619) Cooperative corporation (p. 608) Partnershhip (p. 605) Cooerative corporation with Partnership at will

ANSWER KEY Chapter 25 The Business Entity: An Introduction Opening Case Questions 1. Often the legislature will grandfather existing entities into a statute. The term grandfathering refers to a process that permits individuals who depended on the old law to avoid the negative consequences that result from the new law. grandfathering refers

Chapter 26 - The Corporate Entity Chapter 26 The Corporate Entity I. Key Terms Alien corporation (p. 565) Joint undertaking (p. 635) Alter ego (p. 641) Joint venture (p. 635) Articles of incorporation (p. 636) Limited liability (p. 627) Articles of organization (p. 638) Limited liability company Associative corporativism (p. 633) (LLC) (p. 634) Bylaws (p. 638) Managers

ANSWER KEY Chapter 26 The Business Entity: The Corporation Opening Case Questions 1. The plaintiff (William Stewart) was forced to amend his complaint twice because he began to suspect that the company that he had been dealing with, Eberts, Inc., was being used by the officers, directors and shareholders of Eberts, Inc. to

Chapter 27 Managing the Corporate Entity Chapter 27 Managing the Corporate Entity I. Key Terms Actual authority rule (P. 667) Monarch (p. 662) Audit committee (p. 656) Opt-out rule (p. 656) Business judgment rule (p. 664) Pooling agreement (p. 661) Controlled company (p. 656) Preemptive right (p. 669) Corporate democracy (p. 657) Proxy (p. 658) Corporate opportunity doctrine (p.

ANSWER KEY Chapter 27 Managing the Corporate Person Opening Case Questions 1. The text explains the plaintiffs difficulties in the following way: (T)he plaintiff argued that the board was completely controlled by Fink and, as a result, the directors do whatever Fink demands. The plaintiff argued further that, since it would be futile for

Chapter 28 - Government Regulation of Corporate Entity Chapter 28 Government Regulation of the Corporate Entity I. Key Terms Activist agencies (p. 697) Merger (p. 691) Associative corporativism (p. 678) Monopoly (p. 686) Antitrust Procedures and Penalties Office of Credit Ratings (p. 683) Act (p. 697) Office of Investor Advocate (p. 682) Asset acquisition (p. 692) Per

Part Seven Case Study Gries Sports Enterprises, Inc. v. Cleveland Browns Football Co., Inc. 1. The plaintiffs-appellants, that is Gries Sports Enterprises, Inc. and Robert Gries, had the burden of proof in this case. 2. According to the court in this case, a director or directors will be interested if he

ANSWER KEY Chapter 28 Government Regulation of Corporate Person The Opening Case Questions 1. The purpose of the Dodd-Frank Act is to help deal with the current economic crisis and to prevent such events from happening again in the future. 1. The purpose of the Dodd-Frank Act is to help deal with

Chapter 29 - Personal Property and Bailments Chapter 29 Personal Property and Bailments I. Key Words Abandoned property (p. 710) Implied-in-law bailment (p. 714) Bailee (p. 714) Innkeeper (p. 717) Bailment (p. 713) Joint tenants (p. 710) Bailor (p. 714) Joint tenants with the right Carrier (p. 719) of survivorship (p. 710) Chattels (p. 709) Law of finds

Part 8 PROPERTY Law ANSWER KEY Chapter 29 Personal Property and Bailments Opening Case Questions 1. In this case the bailor is the student, and the bailee is the university. The definitions of the two terms make this clear. The text tells us that: The person who transfers the possession of the

Chapter 03 - The Judicial Process and Cyber-Procedure Chapter 3 The Judicial Process and Cyber-Procedure I. Key Terms Abuse of discretion (p. 56) Indictment (p. 74) Affirmative defense (p. 64) Information (p. 74) Answer (p. 64) Injunction (p. 68) Appeal (p. 68) Interrogatories (p. 66) Appellate jurisdiction (p. 56) Jurisdiction (p. 55) Arraignment (p. 75) Liability (p. 67) Case in

ANSWER KEY Chapter 3 The Judicial Process and Cyberprocedure Opening Case Questions 1. The role of the Court of Appeals for the Federal Circuit is to handle apeals in patent law cases. 2. A summary judgment motion is a motion that asks the court for an immediate judgment for the party filing the

Chapter 30 - Real Property and Landlord and Tenant Law Chapter 30 Real Property and Landlord and Tenant Law I. Key Terms Actual eviction (p. 748) Life estate (p. 731) Adverse possession (p. 740) Lodger (p. 743) Bargain-and-sale deed (p. 739) Navigable airspace (p. 728) Community property (p. 733) Nonconforming uses (p. 741) Concurrent ownership (p. 732)

ANSWER KEY Chapter 30 Real Property and Landlord-Tenant Law Opening Case Questions 1. The number of contracts is actually in dispute. Here are the possible contracts. Contract #1 Wellington Resource Group (WRG) and Beck Energy Corporation (BEC) have a contract. The contract obligated WRG to find a well-financed buyer that would be

Chapter 31 - Wills, Trusts, and Advanced Directives Chapter 31 Wills, Trusts, and Advanced Directives I. Key Terms Administrator (p. 766) Intestate (p. 756) Administratix (p. 766) Intestate succession (p. 764) Advance directives (p. 767) Issue (p. 765) Bequest (p. 756) Last will and testament (p. 756) Bond (p. 766) Legatees (p. 756) Codicial (p. 763) Living trust (p.

Part 8 Case Study Obergefell v. Hodges Questions for Analysis 1. The case of Obergefell v. Hodges clearly supports the core legal principle of stare decisis. Both the majority opinion and the four dissenting opinions cite multiple cases that demonstrate how the Due Process Clause and the Equal Protection Clause of

ANSWER KEY CHAPTER 31 Wills, Trusts, and Estates Opening Case Questions 1. In this case, the plaintiffs argued that Section 3 of Defense of Marriage Act was an unconstitutional deprivation of equal protection and due process under the Fifth Amendment of the Constitution. Apparently, the Department of Justice (or perhaps the Administration) agreed

Chapter 32 - Professional Liability Chapter 32 Professional Liability I. Key Terms Accountant (p. 787) National rule (p. 808) Actual privity (p. 794) National standard (p. 808) Adverse opinion (p. 789) Near-privity (p. 795) Attorney-client privilege (p. 802) Negligence (p. 793) Audit (p. 788) Negligent credentialing (p. 810) Auditor (p. 788) Negligent retention (p. 811) Certified public accountant Ostensible authority

Part 9 THe Legal environment ANSWER KEY Chapter 32 Professional Liability Opening Case Questions 1. The concept of duty is especially critical on tort law. Violations of tort law are almost invariablyconnected to a violation of duty. 2. The first two elements that must be established in order to determine liability in this

Chapter 33 - Science, Technology, & Law in the 21st Century Chapter 33 Science, Technology, & Law in the 21st Century I. Key Words Business system (p. 847) Police power (p. 825) Clean Air Act (p. 839) Population Commission (PC) (p. 844) Clean Water Act (p. 839) Prior art (p. 848) Commerce clause (p. 819) Royalty

ANSWER KEY Chapter 33 Science, Technology, and Law in the 21st Century Opening Case Questions 1. Legal cases involving scientific issues involve complicated, highly specialized information that often requires expert witnesses to unravel and explain that information to just about everyone involved. 2. The elements that the plaintiff must prove in any

Part 9 Case Study Legal Consequences of the Construction of a Wall in the Occupied Palestinian Territory (Request for Advisory Opinion) 1. Only sovereign nation-states have legal standing to initiate a case before the ICJ. Included within this category are nations that are member states within the United Nations.2. The central issue

ANSWER KEY Chapter 34 International Law and The New World Order Opening Case Questions 1. American forces were ambushed in Somalia and 17 American servicemen were killed carrying out what had been characterized by the administration as a humanitarian mission. 1. American forces were ambushed in Somalia and 17 American servicemen were

Chapter 04 - Alternative Dispute Resolution Chapter 4 Alternative Dispute Resolution I. Key Terms ADR contract clause (p. 89) Mediator (p. 84) Alternative dispute resolution Negotiated rule making (ADR) (p. 81) (reg-neg) (p. 92) Arbitration (p. 85) Non-governmental organization Arbitrator (p. 85) (NGO) (p. 93) Collective science court (CSC) (p. 94) Partnering (p. 89) Early neutral

ANSWER KEY Chapter 4 Alternative Dispute Resolution Opening Case Questions 1. The American Arbitration Association tells us that mediation is a non-binding process where a neutral third party works with the parties to reach a mutually agreeable settlement. The neutral third party is referred to as a mediator. Arbitration is the process by

Chapter 05 - Criminal Law and Cybercrimes Chapter 5 Criminal Law and Cybercrimes I. Key Terms Aggravated arson (p. 113) Homicide (p. 112) Aggravated burglary (p. 113) Intimidation (p. 116) Aggravated murder (p. 112) Involuntary manslaughter (p. 112) Aggravated robbery (p. 114) Irresistible impulse test (p.125 ) American Law Institute (ALI test ) (p. 125) Knowledge (p. 106) Arson

Answer Key Chapter 5 Criminal Law and Cybercrimes Opening Case Questions 1. The fundamental difference between the death penalty and all other punishments lies within its seriousness and its ultimate irreversibility. 1. The fundamental difference between the death penalty and all other punishments lies within its seriousness and its ultimate irreversibility. 1. The

Chapter 06 - Tort Law and Cybertorts Chapter 6 Tort Law and Cybertorts I. Key Terms Abuse of process (p. 142) Fraud (p. 139) Actual cause (p. 144) Fraudulent misrepresentation (p. 139) Actual malice (p. 138) Injunction (p. 152) Actual malice test (p. 138) Intentional or reckless infliction of Assault (p. 136) emotional distress (p. 141) Assumption of the

ANSWER KEY Part One End of Part Case Schuette, Attorney General of Michigan v. Coalition to Defend Affirmative Action and Immigration Rights and Fight for Equality By Any Means Necessary (BAMN) United States Supreme Court Questions for Analysis 1. It is clear that stare decisis is at the central core of Justice

ANSWER KEY Chapter 6 Tort Law and Cybertorts Opening Case Questions 1. MacDonalds (well any company dealing with public on a regular face-to-face basis) has a duty not to harm those customers. 1. MacDonalds (well any company dealing with public on a regular face-to-face basis) has a duty not to harm those

Chapter 07 - The Essentials of Contract Law Chapter 7 The Essentials of Contract Law I. Key Terms Admiralty court(p. 173) Informal contract (p. 187) Bilateral contact (p. 185) Law merchant (p. 169) Breach of contract (p. 185) Objective concept rule (p. 169) Canon law (p. 171) Pie powder court (p. 186) Capitalism (p. 170) Privity (p. 173) Contract

ANSWER KEY Part 2 Contract Law Chapter 7 The Essentials of Contract Law Opening Case Questions 1. The four elements of a contract are mutual assent, consideration, capacity, and legality. Because one of the essential terms involved in the contract, the nature of the pipe to be used, remains ambiguous, the missing

Chapter 08 - Offer, Acceptance, and Mutual Assent Chapter 8 Offer, Acceptance, and Mutual Assent I. Key Terms Acceptance (p. 198) Invitation to trade (p. 197) Active fraud (p. 209) Lease option (p. 203) Auction (p. 197) List price (p. 197) Auction with reserve (p. 197) Material fact (p. 208) Auction without reserve (p. 198) Mirror image rule

ANSWER KEY Chapter 8 Offer, Acceptance, and Mutual Assent Opening Case Questions 1. The Sharps put their house up for sale and Andisman and Blakeley made an offer to purchase the house for $1.2 million. 1. The Sharps put their house up for sale and Andisman and Blakeley made an offer to purchase

Chapter 09 - Consideration and Cyber-Payments Chapter 9 Consideration and Cyber-Payments I. Key Terms Accord (p. 225) Legal detriment (p. 219) Accord and satisfaction (p. 225) Locus sigilli (p. 226) Bargained-for exchange (p. 220) Option (p. 228) Consideration (p. 219) Past consideration (p. 229) Disputed amount (p. 225) Preexisting duties (p. 229) Estoppel (p. 228) Promissory estoppel (p. 228) EU

ANSWER KEY Chapter 9 Consideration and Cyber-Payments Opening Case Questions 1. Consideration is the mutual promise to exchange benefits and sacrifices among the parties to a contract. If an agreement has no consideration, it is not a binding contract. Consideration consists of a mutual exchange of gains and losses between contracting parties. In

Chapter 34 - International Law and the New World Order Chapter 34 International Law and the New World Order I. Key Terms Associated persons National treatment principle (p. 899) and forces (p. 889) New world order (p. 870) Authorization for the Use of Neoconservatism (p. 873) Military Force (p. 887) Neoliberalism (p. 873) Chaotic events (p. 881) North

Tender of payment requires the buyer of goods to offer legal tender only. FALSETender of payment means offering to turn the necessary money over to the seller. Such tender may be made by any means or in any manner that is commonly used in the ordinarycourse of business. FALSETender of payment

If a law enforcement officer induces a law-abiding citizen to commit a crime that he or she would not otherwise commit, entrapment may be used as a defense. TRUEIf a law enforcement officer induces a law-abiding citizen to commit a crime, entrapment may be used as a defense. TRUEIf a law

Under the UPA, a tenancy in partnership means a deceased partner's interest in real property held by the partnership passed to the partner's surviving heirs. FALSEUnder the UPA, a tenancy in partnership means that a deceased partner's interest in real property held by the partnership passed to the surviving partners. FALSEUnder

When an assignment occurs, the assignee assumes the contractual obligations previously held by the assignor. TRUEThe rights and duties of the assignee are the same as those previously held by the assignor under the original contract. TRUEThe rights and duties of the assignee are the same as those previously held by

Expedited credit can be claimed by consumers who have suffered losses related to substitution checks. TRUETo protect consumers from losses related to substitute checks, the Check 21 Act includes a consumer's right to claim an expedited credit. TRUETo protect consumers from losses related to substitute checks, the Check 21 Act includes

Laura promises to pay Stuart "a reasonable amount" for repairing her car. Stuart sends Laura a $500 invoice and Laura sends Stuart a $350 check marked "payment in full". There is an accord and satisfaction created if Stuart cashes the check. TRUEIf a creditor accepts, as full payment, an amount that

Ethical theories are all based on the assumption that people want to live ethical lives. TRUEAlthough ethical theories differ in their particulars, they all assume people want to live ethical lives. If this were not the case, there would be no need to fashion these theories in the first place. TRUEAlthough

The Model Rules of Professional Conduct for attorneys was established by: A. the American Bar Association. B. the National Conference of Commissioners on Uniform State Laws. C. the American Lawyer's Cooperative System. D. Congress. A.The American Bar Association has established a set of ethical standards entitled the ABA Model Rules of Professional Conduct. A.The American Bar

The annual percentage rate (APR) is calculated by consumers with tables provided by the Federal Trade Commission. FALSETo help consumers know the truth about the cost of borrowing money, Congress passed theTruth-in-Lending Act that requires lenders to disclose two important things to borrowersthe finance charge (the actual cost of the loan

Sue contracts to purchase Sanyo's auto. Only Sue needs to make a tender of performance. FALSETender of performance occurs when both the seller offers to turn the goods over to the buyer and the buyer offers to pay for them. It is the offering by the parties to do what they

In federal diversity cases, corporations are only considered a citizen of the state in which they have their principal place of business. FALSETo have diversity jurisdiction in federal court, a corporation is considered a citizen of the state where it is incorporated and where it has its principal place of business.

The primary job of the Chief Technology Officer of the United States is to: A. build an integrated technology policy especially designed to meet the needs of the national government. B. support scientific research, to stimulate the national economy, and to safeguard national security. C. conduct research into all aspects of human life

A compilation of all the statutes of a particular state or the federal government is known as a code. TRUEFor example, all federal statutes are gathered in the United States Code (USC). TRUEFor example, all federal statutes are gathered in the United States Code (USC). TRUE For example, all federal statutes are gathered

Chapter 7 bankruptcy petitions are filed in state district courts that are within the federal court structure. FALSETo petition for bankruptcy, debtors file official forms with the nearest U.S. Bankruptcy Court, which is attached to federal district courts within the federal court structure. FALSETo petition for bankruptcy, debtors file official forms with

A furniture store that puts up its inventory as collateral for a loan will grant the lender a floating lien. TRUECreditors may obtain security interests in property acquired by the debtor after the original agreement is entered. The creditor does so by placing a provision in the security agreementthat the security

A credit cardholder is liable for all unauthorized charges if he or she does not report the unauthorized charges within twenty days of receiving a statement on which the unauthorized charges appear. FALSEUnder the Truth-in-Lending Act, credit cardholders are not responsible for any unauthorized charges made after the card issuer has

In an involuntary bankruptcy filing, the petition itself becomes the order for relief and is effective the moment it is filed with the court. FALSEAn order for relief is the court's command that the liquidation begin. In an involuntary case, the court does not issue the order immediately because the debtor is

The manager of a manager-run LLC is protected by the business judgment rule, but not the fairness rule. FALSERegardless of the number of managers involved in an LLC, both the business judgment rule and the fairness rule apply to their decisions in the same way that those rules apply to the

Fish not yet caught by a commercial fisher are called future goods. TRUEGoods that are not yet in existence or under the control of people are called future goods. They include fish in the sea, minerals in the ground, goods not yet manufactured, and commodities futures. TRUEGoods that are not yet

The Equal Credit Opportunity Act makes it illegal for businesses to discriminate against credit applicants receiving public assistance income. TRUEThe law makes it illegal for banks and businesses to discriminate against credit applicants because of their sex, race, marital status, national origin, religion, or age or because they get public assistance income.

A civilization with a recognized central state is generally less stable and more war-like than one without a recognized central state. FALSEA civilization with a recognized central state is generally more stable, less war-like, and more economically prosperous than one without a recognized central state. FALSEA civilization with a recognized central

United States Generals Groves and LeMay advocated preventative war against the Soviet Union. TRUEGeneral Leslie Groves, the head of the Manhattan Project, which developed the atomic bomb during World War II, and General Curtis LeMay, former commander of the Strategic Air Command (SAC), advocated preemptive war against the Soviet Union. TRUEGeneral