The Legal Environment of Business: A Managerial Approach: Theory to Practice 2nd Edition

Kathy and Tom are filing for divorce. Their marital home, which they still live in, is worth $7.5 million and their furniture and other assets are worth more than $25 million. Kathy wants half of everything, but Tom doesn't think she deserves more than 25 percent. They may file in

When Ford runs a commercial stating that Fords are better than Chevrolets and that "you'll be happier if you buy a Ford," Ford is committing trade libel. Answer: FALSEFord has expressed an opinion but has not lied about a material fact. Answer: FALSEFord has expressed an opinion but has

Many express warranties are made through advertisements. Answer: TRUEAdvertisements can make specific statements about a product that can establish an express warranty. Answer: TRUEAdvertisements can make specific statements about a product that can establish an express warranty. Answer: TRUE Advertisements can make specific statements about a product that can establish an

A sole proprietorship automatically is dissolved when the owner dies. Answer: TRUEBy implication, since the sole proprietorship is owned and managed by an individual, when the individual dies, the entity dies, although an heir may continue the business as his or her own sole proprietorship. Answer: TRUEBy implication, since the

Chuck is renting an apartment, and he has a problem. All night he hears the scurrying around of rodents, and each morning he finds cereal boxes and other cardboard food containers gnawed. He has also noticed droppings all over the apartment, including in the children's nursery. He has complained to

Which chapter of the Bankruptcy Code is best thought of as temporary protection from creditors while a business goes through a planning process to pay creditors while continuing to do business? A. Chapter 7 B. Chapter 11 C. Chapter 12 D. Chapter 13 Answer: B.Chapter 11 sets rules for companies that want

One disadvantage of a sole proprietorship business entity is that it is restricted to the principal and the principal's immediate family in terms of number of employees who may work for the business. Answer: FALSEThere is no restriction on the number of employees a sole proprietorship may hire. Answer:

An automatic stay halts all creditors' collection actions except for ones brought by government agencies. Answer: FALSEAll creditors are stayed when the petition is filed. Answer: FALSEAll creditors are stayed when the petition is filed. Answer: FALSE All creditors are stayed when the petition is filed. An agent is generally

George is 85 years old and Grace, his wife, is 83. They are on a fixed retirement budget and have no disposable income and no savings. Grace's doctor informs her that she requires a particular medicine that costs $84. They don't have money to buy the medicine, there are no

Most contracts require a specific format or ceremony. Answer: FALSEMost contracts, while they require evidence that the elements are met, do not require a specific format or ceremony. Answer: FALSEMost contracts, while they require evidence that the elements are met, do not require a specific format or ceremony. Answer:

The mandate given to the Equal Employment Opportunity Commission is that the commission is required to pursue any discrimination-based claims made by aggrieved employees. Answer: FALSEThe EEOC cannot litigate every claim made; it selects those of major legal significance or those in which the employer's conduct is egregious. Answer:

Criminal law is designed to compensate parties for money lost as a result of another's unlawful conduct. Answer: FALSEOnly civil law actions may result in monetary damages. Criminal laws result in fines or imprisonment. Answer: FALSEOnly civil law actions may result in monetary damages. Criminal laws result in fines

An ________ investor is one who has experience, business savvy, and knowledge of the market to the extent that the law imputes a certain cognizance of investment risk and the ability to protect his or her own interests. Answer: accredited Answer: accredited Answer: accredited Gus owes a lot

When an employee is being classified as exempt or nonexempt regarding Fair Labor Standards Act coverage, what factors are evaluated to arrive at a determination? Answer: Multiple factors are taken into account. The courts will look at the education or skill level required for the position, the salary level

Eight businesswomen have formed a privately held corporation. Their stock certificates and the stock register of the corporation are public documents. Answer: FALSEThe stock certificates and the stock register of a privately held corporation are kept with the corporate records and are not public documents. Answer: FALSEThe stock certificates

Which piece of legislation prohibits denying an applicant credit on the basis of discrimination? A. Equal Credit Opportunity Act B. U.S. Constitution C. Fair Credit Act D. Truth in Lending Act Answer: A.The Equal Credit Opportunity Act prohibits lenders from discriminating in denying an applicant credit. Answer: A.The Equal Credit Opportunity Act

Uncle Phil has lent you $10,000 to pay tuition and other school-related costs. You've now graduated, and Uncle Phil is asking about repayment terms. The loan was never evidenced in writing. This transaction falls under the UCC statute of frauds. Answer: FALSEThe statute of frauds requires that a sales

The American Arbitration Association arbitration rules permit the parties to choose an arbitrator as long as the AAA receives notification of their choice. Answer: TRUEThe AAA rules allow parties to choose their own arbitrator with the notification requirement. Answer: TRUEThe AAA rules allow parties to choose their own arbitrator with

Laws requiring that the police show reasonable cause and obtain a search warrant before entering a place of business to search for evidence are examples of substantive laws. Answer: FALSESearch and seizure laws are examples of procedural laws. Answer: FALSESearch and seizure laws are examples of procedural laws. Answer:

The CEO of a major computer technology firm wants to form an organization for computer firms in order to share data, information, and ideas. Depending on what was shared at the meetings, the organization may violate antitrust laws. What standard should be used to analyze the organization? Answer: The

A process or procedure is not eligible for copyright protection. Answer: TRUEA process or procedure may be patentable but may not be copyrighted. Answer: TRUEA process or procedure may be patentable but may not be copyrighted. Answer: TRUE A process or procedure may be patentable but may not be copyrighted.

Courts enforce fraudulent misrepresentation for intentional lies but will not enforce fraudulent misrepresentation for negligent ones. Answer: FALSECourts enforce both intentional and negligent misrepresentations. Negligent misrepresentations generally are enforced when a business relationship exists between the parties. Answer: FALSECourts enforce both intentional and negligent misrepresentations. Negligent misrepresentations generally are

Courts apply the logical-outgrowth standard when reviewing a challenge of a rule from an adversely affected party. Answer: FALSEThe court uses an arbitrary and capricious standard to evaluate challenges to final rules. Answer: FALSEThe court uses an arbitrary and capricious standard to evaluate challenges to final rules. Answer: FALSE The

Linda's company has a code of ethics and a separate code of conduct. If she wants to be sure that she complies with the company dress code, she would reference the code of ethics. Answer: FALSEA company dress code is a topic found in a code of conduct. Answer:

The UCC permits terms to be added into a contract or filled in as gap fillers; however, the contract cannot be enforceable unless the parties have agreed to and specified a price in their agreement. Answer: FALSEIf a price is omitted from a contract between merchants, the UCC requires

A tenancy for years will automatically renew if no notice is given by the tenant or landlord of intention to terminate the lease. Answer: FALSEPeriodic tenancies automatically renew, but tenancies for years do not. Answer: FALSEPeriodic tenancies automatically renew, but tenancies for years do not. Answer: FALSE Periodic tenancies automatically

If a sole proprietorship loses money, the principal may deduct the losses from her or his own personal tax liability, if any. Answer: TRUEProfits or losses reflect on the principal's personal taxes, as the sole proprietorship pays no taxes itself. Answer: TRUEProfits or losses reflect on the principal's personal taxes,

The principal may be an individual or entity (such as a corporation), but the agent must be an individual. Answer: FALSEThe principal and agent may be either individuals or entities (such as a corporation). Answer: FALSEThe principal and agent may be either individuals or entities (such as a corporation).

A person with an ownership interest in a business venture is called a _______. Answer: principal Answer: principal Answer: principal Consideration in a small or minimal amount that is written into a contract but never actually paid is called ________ consideration. Answer: nominal Answer: nominal Answer: nominal When

General partnerships are pass-through entities regarding taxation; however, limited partnerships are not pass-through entities for taxes. Answer: FALSEBoth general and limited partnerships are pass-through entities for tax purposes. Answer: FALSEBoth general and limited partnerships are pass-through entities for tax purposes. Answer: FALSE Both general and limited partnerships are pass-through entities